Core Viewpoint - Entrée Resources Ltd. is providing an update on the transfer of mining licenses in Mongolia to its joint venture partner Oyu Tolgoi LLC, highlighting the importance of this transfer for ongoing development and state participation issues [1][2][3]. Transfer of JV Licenses - The transfer of the Shivee Tolgoi and Javkhlant mining licenses to OTLLC is critical for resuming development work, which has been paused since June 6, 2025, until the transfer is completed [4]. - In February 2025, License Transfer Agreements were executed to facilitate the transfer, and the parties have submitted necessary documentation to the Mongolian tax authority for tax assessment [5]. - The corporate income tax on the transfer is set at 10% of the license value, with specific deductions allowed, and the methodology for valuation is defined by a decree from December 31, 2019 [5]. - The Mongolian tax authority has not confirmed the calculations of the license values, which has delayed the transfer process [6]. State Participation - The Minerals Law of Mongolia allows for up to 34% state equity participation in strategic mineral deposits, which includes the Oyu Tolgoi group of deposits [8]. - The Government of Mongolia adopted Resolution No. 170 on April 9, 2025, establishing boundaries for strategic deposits, including the JV Licenses [9]. - The company is willing to fulfill obligations under Mongolian law to provide the state with 34% of the economic benefits derived from its interest in the JV [10]. - The company has been engaging with the Government of Mongolia to resolve state participation issues, especially following the appointment of a new Prime Minister and Cabinet in June 2025 [12]. Ongoing Engagement and Negotiations - A Temporary Oversight Committee was established by the Parliament of Mongolia to investigate the protection of national interests related to the Oyu Tolgoi Strategic Deposit [13]. - The Government of Mongolia has instructed relevant members to negotiate with foreign investors, including Entrée, to finalize agreements and proposals [14]. - The company is actively seeking to understand the engagement process and will provide updates as necessary [15].