Mr. David Jan reports

ENTREE RESOURCES CLOSES $5.7 MILLION FINANCING

Entree Resources Ltd. has closed the non-brokered private placement announced on Jan. 21, 2025.

The company has issued 2,577,700 units of the company at a price of $2.21 per unit for gross proceeds of $5,696,717.

Each unit consists of one common share of the company and one-half of one non-transferable common share purchase warrant of the company. Each warrant will entitle the holder to purchase one additional common share of the company at a price of $3 per share for a period of two years. The securities issued in connection with the financing are subject to a hold period expiring on May 25, 2025. No finders' fees were paid in connection with the private placement.

Net proceeds from the financing are expected to be used for general corporate purposes, including implementation of the partial final award made by the three-member international arbitration tribunal appointed in connection with the company's binding arbitration proceedings against its joint venture partner, Oyu Tolgoi LLC (OTLLC), and Turquoise Hill Resources Ltd. (see the company's news release dated Dec. 19, 2024, titled, "Entree Resources Wins Arbitration Decision"), and to support continuing commercial discussions with Oyu Tolgoi project stakeholders.

Horizon Copper Corp., through its wholly owned subsidiary, 1363013 B.C. Ltd., an insider of the company, acquired 625,202 units under the financing on the same terms and conditions as other subscribers. Following closing, Horizon indirectly holds 50,297,717 common shares of the company, or 24.25 per cent of the company's issued and outstanding shares. Participation by Horizon in the financing is exempt from the formal valuation and shareholder approval requirements provided under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The exemption is based on the fact the market value of Horizon's participation or the consideration paid by Horizon does not exceed 25 per cent of the market value of the company. No other insiders of the company participated in the financing.

The company will be filing a material change report in connection with the transaction less than 21 days before the date of the closing of the transaction, and considers the shorter period to be reasonable given the nature of the transaction and the fact that all necessary approvals have been obtained.

About Entree Resources Ltd.

Entree Resources is a Canadian mining company with a unique carried joint venture interest on a significant portion of one of the world's largest copper-gold projects, the Oyu Tolgoi project in Mongolia. Entree has a 20-per-cent or 30-per-cent carried participating interest in the Entree/Oyu Tolgoi joint venture, depending on the depth of mineralization. Horizon Copper and Rio Tinto are major shareholders of Entree, beneficially holding approximately 24 per cent and 16 per cent of the shares of the company, respectively.

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