Entrée Resources Announces Pause in Oyu Tolgoi Lift 1 Panel 1 Underground Development Work

Core Viewpoint - Entrée Resources Ltd. has announced a pause in the underground lateral development work at the Oyu Tolgoi Lift 1 Panel 1 due to delays in the transfer of mining licenses, which is critical for the project's progress [1][2]. Summary by Sections Joint Venture and Development Status - The Entrée/Oyu Tolgoi joint venture has paused development work that began in October 2024, with approximately 230 equivalent meters completed as of May 30, 2025 [1]. - The joint venture partner, Oyu Tolgoi LLC, holds an 80% ownership and is the manager of the JV, which is required to hold the mining licenses on behalf of the participants [2]. License Transfer Process - The transfer of the Shivee Tolgoi and Javkhlant mining licenses is necessary for the continuation of work in the Hugo North Extension deposit, which was scheduled to start in June 2025 [2]. - The transfer process began in February 2025, but no assessment from the Mongolian tax authority has been received yet, delaying the transfer [3]. Operational Adjustments - Oyu Tolgoi LLC plans to shift focus to Lift 1 Panel 2 South on its 100% owned mining license to mitigate operational and financial impacts due to the delay [2]. - The JV partners remain hopeful for a brief delay, but the exact duration of the pause is uncertain [2]. Company Background - Entrée Resources Ltd. is a Canadian mining company with a carried joint venture interest in the Oyu Tolgoi project, one of the largest copper-gold projects globally [6]. - The company holds a 20% or 30% carried participating interest in the Entrée/Oyu Tolgoi JV, depending on mineralization depth [6]. Shareholder Information - Major shareholders of Entrée include Horizon Copper Corp. and Rio Tinto, holding approximately 24% and 16% of the company's shares, respectively [7].