Entree Resources provides update on Mongolia joint venture license matters

Entree Resources Ltd. (TSX: ETG) provided an update on proceedings related to its Shivee Tolgoi and Javkhlant mining licenses in Mongolia, which are held through a joint venture with Oyu Tolgoi LLC.

A Parliamentary Temporary Oversight Committee established in July conducted a three-day public hearing in December regarding the Oyu Tolgoi strategic deposits. The committee examined state ownership interests and valuations of the joint venture license areas. Entree's CEO Stephen Scott attended the December 8 hearing. The committee submitted a draft resolution to Parliament on December 19, which was returned to the Parliamentary Standing Committee on Economics for further consideration.

A government working group led by the Minister of Industry and Mineral Resources was established in August to negotiate the state's interest in the joint venture license areas. Entree held a preliminary meeting with the working group on December 10, with formal negotiations expected to begin shortly. Oyu Tolgoi LLC holds an 80% or 70% economic interest in the license areas depending on mineralization depth and has exclusive operational rights under existing agreements.

Entree LLC filed a claim with Mongolia's Administrative Court during the third quarter seeking confirmation of license valuations in accordance with Mongolian law. Tax payments must be completed before license transfer documentation can be submitted to the Mineral Resources and Petroleum Authority for registration.

Entree Resources holds a 20% or 30% carried participating interest in the joint venture, depending on mineralization depth. Rio Tinto and Royal Gold are major shareholders, holding approximately 16% and 24% of Entree's shares respectively.

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