Entree Resources Corporate Presentation - Oct 2017

Investor Presentation

October 2017

TSX: ETG | NYSE American: EGI

Advancing Towards Production

Entrée Resources | Investor Presentation | October 2017 | 2

Cautionary Statement

This presentation contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian

securities laws.

Forward-looking statements include, but are not limited to, statements with respect to corporate strategies and plans; requirements for additional capital; uses of funds; the value and potential value of assets and the ability of

Entrée to maximize returns to shareholders; the future prices of copper, gold, molybdenum and silver; the estimation of mineral reserves and resources; the realization of mineral reserve and resource estimates; anticipated

future production, capital and operating costs, cash flows and mine life; completion of an updated technical report that includes a Preliminary Economic Assessment of Entrée’s interest in Lift 2 of the Hugo North Extension

deposit and the Heruga deposit; the expected timing of first development production from Lift 1 of the Hugo North Extension deposit; capital, financing and project development risk; alternative production scenarios and

associated expansion options; potential types of mining operations; construction and continued development of the Oyu Tolgoi underground mine; potential size of a mineralized zone; potential expansion of mineralization;

potential discovery of new mineralized zones; potential metallurgical recoveries and grades; plans for future exploration and/or development programs and budgets; permitting time lines; anticipated business activities;

proposed acquisitions and dispositions of assets; and future financial performance. While the Company has based these forward-looking statements on its expectations about future events as at the date that such statements

were prepared, the statements are not a guarantee of Entrée’s future performance and are based on numerous assumptions regarding present and future business strategies, local and global economic conditions, legal

proceedings and negotiations and the environment in which the Company will operate in the future, including the price of copper, gold and silver, and the status of the Company’s relationship and interaction with the

Government of Mongolia, Oyu Tolgoi LLC (“OTLLC”), Rio Tinto and Turquoise Hill Resources. With respect to the construction and continued development of the Oyu Tolgoi underground mine, important risks, uncertainties

and factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements and information include, amongst others, the timing and cost of the construction and

expansion of mining and processing facilities; the timing and availability of a long term power source for the Oyu Tolgoi underground mine; the ability of OTLLC to draw down on the supplemental debt under the Oyu Tolgoi

project finance facility and the availability of additional financing on terms reasonably acceptable to OTLLC, Turquoise Hill and Rio Tinto to further develop Oyu Tolgoi; delays, and the costs which would result from delays, in

the development of the underground mine; projected copper, gold and silver prices and demand; and production estimates and the anticipated yearly production of copper, gold and silver at the Oyu Tolgoi underground mine.

Other uncertainties and factors which could cause actual results to differ materially from future results expressed or implied by forward-looking statements and information include, amongst others, unanticipated costs,

expenses or liabilities; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; the size, grade and continuity of deposits not being interpreted correctly from

exploration results; the results of preliminary test work not being indicative of the results of future test work; fluctuations in commodity prices and demand; changing foreign exchange rates; actions by Rio Tinto, Turquoise Hill

and/or OTLLC and by government authorities including the Government of Mongolia; the availability of funding on reasonable terms; the impact of changes in interpretation to or changes in enforcement of laws, regulations

and government practices, including laws, regulations and government practices with respect to mining, foreign investment, royalties and taxation; the terms and timing of obtaining necessary environmental and other

government approvals, consents and permits; the availability and cost of necessary items such as power, water, skilled labour, transportation and appropriate smelting and refining arrangements; and misjudgements in the

course of preparing forward-looking statements. In addition, there are also known and unknown risk factors which may cause the actual results, performances or achievements of Entrée to be materially different from any

future results, performance or achievements expressed or implied by the forward-looking statements and information. Such factors include, among others, risks related to international operations, including legal and political

risk in Mongolia; risks associated with changes in the attitudes of governments to foreign investment; risks associated with the conduct of joint ventures; discrepancies between actual and anticipated production, mineral

reserves and resources and metallurgical recoveries; global financial conditions; changes in project parameters as plans continue to be refined; inability to upgrade Inferred mineral resources to Indicated or Measured mineral

resources; inability to convert mineral resources to mineral reserves; conclusions of economic evaluations; future prices of copper, gold, silver and molybdenum; failure of plant, equipment or processes to operate as

anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining government approvals, permits or licences or financing or in the completion of development or construction activities;

environmental risks; title disputes; limitations on insurance coverage; as well as those factors discussed in the section entitled “Risk” in Entrée’s most recently filed Management’s Discussion & Analysis and in the section

entitled “Risk Factors” in Entrée’s Annual Information Form dated March 10, 2017, both available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and

future events could differ materially from those anticipated in such statements. Except as required under applicable securities legislation, Entrée undertakes no obligation to publicly update or revise forward-looking

statements.

Entrée's exploration activities are under the supervision of Robert Cinits, P.Geo., Vice President, Corporate Development of Entrée. Mr. Cinits is a “qualified person” as defined in National Instrument 43-101- Standards of

Disclosure for Mineral Projects (“NI 43-101”). Mr. Cinits has approved the technical information in this presentation.

All minerals reserves and mineral resources have been calculated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and NI 43-101. Cautionary Note to United States Investors:

United States investors are advised that while the terms “Measured mineral resources”, “Indicated mineral resources” “Inferred mineral resources” and “Probable mineral reserves” are recognized and required by Canadian

regulations, the United States Securities and Exchange Commission (“SEC”) does not recognize them. United States investors are cautioned not to assume that any part or all of the mineral deposits in these categories will

ever be upgraded to a higher category, or converted into mineral reserves. Inferred mineral resources have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. Under Canadian

rules, estimates of Inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of an Inferred mineral resource exists, or is

economically or legally minable. Disclosure of “contained ounces” is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute reserves

as in place tonnage and grade without reference to unit measures. Accordingly, information contained in this presentation containing descriptions of the Company’s mineral properties may not be comparable to similar

information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.

The information in this presentation is for informational purposes only. Readers should not rely on the information for any purpose other than to gain general knowledge of Entrée. This information is not intended to be, and

should not be construed as, part of an offering or solicitation of securities.

For additional information regarding the Entrée/Oyu Tolgoi Joint Venture property, see the technical report titled “Lookout Hill Feasibility Study Update” dated March 29, 2016 (“LHTR16”) prepared by OreWin Pty Ltd, a copy of

which is available on SEDAR at www.sedar.com.


About Entrée Resources Ltd.

▪ Flagship asset: Joint venture interest at the world-class Oyu

Tolgoi underground copper-gold mine

▪ Characteristics of a royalty, benefits of a producer

▪ Low risk profile (capital, development and operational risk)

▪ Entrée expects to change from a developer to a producer in 2021 when

development production starts on the JV property

▪ Well-funded to production (~US$ 7.8 million cash)

▪ Cornerstone shareholders (Sandstorm gold, Turquoise Hill & Rio Tinto)


Restructured: Unlocking value

▪ May 2017 - Entrée spun out its US assets into Mason Resources Corp.

(TSX:MNR) and rebranded to Entrée Resources Ltd.

▪ The spinout unlocks value and focuses the assets in two geographically

and strategically distinct companies

▪ Entrée’s primary focus is the Entrée/Oyu Tolgoi JV in Mongolia

▪ Entrée also holds:▪ 0.5% NSR royalty on the Cañariaco copper project in Peru (Candente Copper)

▪ 56.3% JV interest in the Blue Rose copper-iron-gold-molybdenum property in Australia

Entrée/Oyu Tolgoi JVAnn Mason

Lordsburg

CañariacoRoyalty

Blue RoseJV/Royalty

Early Stage ProjectsAdvanced Development Projects

NSR Royalty


Entrée/Oyu Tolgoi JV Structure

20%*

80%

34% 66%

Oyu Tolgoi LLC

(OTLLC)

Entrée Resources

Entrée 20%* carried interest in

the Entrée/Oyu Tolgoi JV

Mongolian Government Turquoise Hill

Rio Tinto**

▪ Entrée debt financed at prime

+2%, repayable to OTLLC from

90% of free cash flow

▪ Entrée not responsible for

upfront development capital of

Oyu Tolgoi surface infrastructure

▪ OTLLC contractually obligated to

advance Entrée’s share of

project/exploration costs on the

Entrée/Oyu Tolgoi JV property

51%

Entrée/OyuTolgoi JV

Hugo North Extension & Heruga deposits

Significant exploration potential along the

OT trend

* Entrée has a 20% participating interest, but a right to receive 30% of all mineralization extracted from above 560m depth.

** Rio Tinto is project operator of Oyu Tolgoi.


Oyu Tolgoi: Entrée/Oyu Tolgoi JV Deposits

The Entrée/Oyu Tolgoi JV property

includes the Hugo North

Extension (HNE) and Heruga

porphyry deposits, plus:

▪ Significant exploration potential in an

~26 km long trend of porphyry

mineralization within the OT trend

▪ HNE deposit is open to the north

and at depth

Entrée/Oyu Tolgoi JV: integral part of the world-class Oyu Tolgoi copper-gold mine

High grade, large resource at HNE

▪ M&I = 129Mt @1.65% Cu, 0.55 g/t Au

(1.99% CuEq*)

▪ Inferred = 179Mt @0.99% Cu, 0.34 g/t

Au (120% CuEq*)

See appendix for Entrée/Oyu Tolgoi JV Mineral Resources

& Reserves

Entrée has a 20% carried interest in the Hugo North Extension and

Heruga resources and reserves.

* CuEq calculated using assumed metal prices of US$3.01/lb Cu,

US$1,250/oz Au, US$20.37/oz Ag, and US$11.90/lb Mo;

metallurgical recoveries are considered in the formulae.


Entrée/Oyu Tolgoi JV Deposits: High grade and long life

The Entrée/Oyu Tolgoi JV property contains:

▪ ~10% of all M+I Au oz and ~62% of all Inferred Au oz at the entire Oyu Tolgoi project

▪ ~14% of the M+I CuEq* lbs and ~ 22% of the Inferred CuEq* lbs estimated at Hugo North (incl. HNE)

▪ ~94% of the Inferred CuEq* lbs estimated at Heruga

A A’

*CuEq calculated using assumed metal prices of US$3.01/lb Cu, US$1,250/oz Au, US$20.37/oz Ag, and US$11.90/lb Mo; metallurgical recoveries are considered in

the formulae. Based on mineral resources reported in Turquoise Hill’s 2016 Technical Report, “Turquoise Hill Resources Ltd., Oyu Tolgoi, 2016 Oyu Tolgoi Technical

Report, October 2016”.

Longitudinal Section A-A’

Highest grades

at Oyu Tolgoi

Hugo North Extension consists of Lift 1 & Lift 2 underground block caves


Entrée/Oyu Tolgoi JV: Hugo North Extension Update

▪ Shaft 1 complete

▪ Shaft 2 to be completed in 2017

▪ Shaft 5 to be completed early 2018; haulage decline started

▪ Shaft 4 (which is on the Entrée/Oyu Tolgoi JV property)

expected to start construction in 2018

▪ First Lift 1 production for Entrée/Oyu Tolgoi JV in

~2021 (changes Entrée from a Developer to a Producing miner)

▪ TRQ reports opportunities for reduced construction time, faster ramp-up

and increased underground production rates >95 ktpd (see Appendix)

Entrée is updating its Technical Report to include preliminary

economics for Lift 1, Lift 2 and Heruga; expected January 2018

Hugo North Deposit

▪ Lift 1 underground

development is

underway,

including HNE


Entrée: An attractive risk profile

▪ Manageable project development risk with Rio Tinto as operator

▪ OTLLC carries almost all of the financial burden and execution risk on the Oyu

Tolgoi underground project, including the Entrée/Oyu Tolgoi JV property

▪ Low capital risk for Entrée

▪ OTLLC finances Entrée’s share of project/exploration costs at prime+2%, with

Entrée to repay from 90% of free cash flow (no upfront cash required from Entrée)

▪ Entrée not responsible for upfront development capital of Oyu Tolgoi surface

infrastructure

▪ Entrée’s share of Lift 1 costs (development and sustaining capital) of ~US$87M

will be repaid in ~2 years after commercial production starts on the

Entrée/Oyu Tolgoi JV property

▪ No expected project or equity dilution

▪ Entrée’s JV interest

▪ Many characteristics of a net profits interest royalty (NPI)

▪ With benefits of a producer’s ability to take its share of concentrate

Characteristics of a royalty, benefits of a producer


Entrée Value: Significant Upside Potential

EV/Resources (Sept 30, 2017) Turquoise Hill Entrée Resources

Estimated Enterprise Value(1) (US$ M) $8,663.3 $80.0

Common Shares Outstanding 2.01 B 173.6 M

CuEq(3) – Resources (B lbs) 76.903(2) 6.892(3)

EV/Resources (US$/CuEq lb) $0.113 $0.012

Key Asset Characteristic Differences

Financing and Capital Requirements Project Finance Facility / EquityNo requirement to source financing; ETG

capital contributions debt financed by OTLLC

Project Finance Facility Lift 1 (US$ M) $6,000Estimated $87.0 development and sustaining

capital repayable to OTLLC

Debt Repayment 12 - 15 years From 90% of free cash flow

Financing Interest Rate LIBOR + 2.65% - 3.78% RBC Prime + 2.00%

Developer and Operator Rio Tinto Rio Tinto

Metal Production Normal operations Entrée to take product in kind

No better comparison for Entrée than an Oyu Tolgoi stakeholder

1Source: SNL Database; 2Turquoise Hill Technical Report (2016 Oyu Tolgoi Technical Report, October 2016); 3refer to Appendix, Mineral Resources

Table for details and CuEq definition


Entrée: Maximizing potential

▪ Near term priorities include:

▪ Completion of the updated Entrée Technical Report to disclose preliminary economics

for the Entrée/Oyu Tolgoi JV’s share of Hugo North Lift 1, Lift 2 and Heruga

▪ Educating market about risk profile

▪ Aggressively creating opportunities to crystallize value ahead of production from the

Entrée/Oyu Tolgoi property

▪ Streamlining Entrée’s JV interest

▪ Identify potential value accretive

acquisitions to enhance Entrée’s

current asset base

▪ Disciplined approach to assessing

high quality, accretive, top-tier assets

and royaltiesPhoto from Oyu Tolgoi website: http://ot.mn/


Company Overview

TSX: ETG

NYSE American: EGI

Treasury

~US$7.8 million

(as of June 30, 2017)

Market Capitalization

~C$95 million

(as of Sept 30, 2017)

Shares Outstanding

~173.6 million

(as of Sept 30, 2017)

Listings

* Rio Tinto holds beneficial ownership over shares held by Turquoise Hill

Cornerstone Shareholders Ownership %

Sandstorm Gold Ltd. 13.8%

Rio Tinto PLC 9.6%

Turquoise Hill Resources* 8.0%


Experienced Leadership Team

Senior Management Team

Stephen ScottPresident and Chief Executive Officer

Duane LoChief Financial Officer

Susan McLeodVice President, Legal Affairs

Robert CinitsVice President, Corporate Development

Directors

Lord (Michael) Howard of LympneChairman

James Harris

Mark Bailey

Alan Edwards

Anna Stylianides

Stephen ScottPresident and Chief Executive Officer

Appendix


Oyu Tolgoi: Location

About Oyu Tolgoi

Is one of the world’s largest new

copper-gold mines and is located

in the South Gobi region in

Mongolia, approx. 550 km south of

the capital and 80 km north of the

Mongolia-China border.

About Mongolia• Population ~ 3.0 million (2014)

• Capital: Ulaanbaatar (pop’n ~1.3

million (2014)

• Language: Mongolian

• Religion: Buddihsm (53%)

• Government: independent republic

with democratic elections every four

years

• Size: 1.5 million km2, landlocked

between Russia (north) and China

(south)

• GDP: US$ 12 billion (2014)

Source: Turquoise Hill Resources


Entrée/Oyu Tolgoi JV Mineral Resources & Reserves*

Mineral Reserves

Hugo North Extension Heruga

Probable Reserves** 35 Mt @ 1.59% Cu, 0.55 g/t Au ---

Mineral Resources

Hugo North Extension Heruga

Measured and Indicated

Resources**

129 Mt @ 1.65% Cu, 0.55 g/t Au

(1.99% CuEq)***---

Inferred Resources**179 Mt @ 0.99% Cu, 0.34 g/t Au

(1.20% CuEq)***

1.7 billion tonnes @ 0.39% Cu, 0.37

g/t Au, 0.01% Mo

(0.64% CuEq)***

* Entrée has a 20% carried interest in the Hugo North Extension and Heruga resources and reserves.

** The mineral reserves are not additive to the mineral resources.

*** CuEq calculated using assumed metal prices of US$3.01/lb Cu, US$1,250/oz Au, US$20.37/oz Ag, and US$11.90/lb Mo; metallurgical recoveries are

considered in the formulae.

High-grade Resource


Entrée/Oyu Tolgoi JV: Multiple development options

*Source: Base diagram from 2016 Oyu Tolgoi Technical Report, Turquoise Hill

Long life, high grade with significant expansion potential

▪ Turquoise Hill’s current Base Case 40 Mtpa

▪ Potential to achieve 50 Mtpa over first 5 years, with limited capital investment

▪ 100 Mtpa and 120 Mtpa would shift the Entrée/Oyu Tolgoi JV’s Heruga mineralization earlier into the mine plan to Entrée’s benefit

Includes Entrée/Oyu Tolgoi JV

mineralization

TSX: ETG | NYSE MKT: EGI

Advancing Towards Production

For more information, please contact:

Stephen Scott

President & Chief Executive Officer

[email protected]

David Jan

Investor Relations

[email protected]

604.687.4777 (office) | 1.866.368.7330 (toll free)

www.EntreeResourcesLtd.com