Entrée Resources Ltd. (TSX: ETG; OTCQB: ERLFF) has issued a public statement addressing questions raised by a Mongolian Member of Parliament during a plenary session on October 2, 2026, concerning the transfer of two mining licences to joint venture partner Oyu Tolgoi LLC. The Vancouver-based copper-gold mining company holds a carried joint venture interest in a portion of the Oyu Tolgoi project, one of the world's largest copper-gold developments in Mongolia. The release confirms that Mongolia's tax authority has not yet confirmed the company's licence valuations, creating a procedural obstacle to the transfer process.

Key Points

  • Entrée Resources Ltd. (TSX: ETG; OTCQB: ERLFF) is a Canadian mining company with a 20% or 30% carried participating interest in the Entrée/Oyu Tolgoi joint venture in Mongolia
  • The company responded publicly to questions raised in Mongolia's Parliament regarding the transfer of the Shivee Tolgoi and Javkhlant mining licences to Oyu Tolgoi LLC
  • Transfer tax has been calculated, remitted to the Mongolian Tax Authority (MTA), and supporting documentation submitted; the MTA has not confirmed the valuations
  • The MTA has advised that submitted documents are considered incomplete, preventing issuance of tax payment certificates required to advance the licence transfer

Mongolian Parliamentary Scrutiny of Shivee Tolgoi and Javkhlant Licence Transfer

Entrée Resources issued its October 6, 2026 statement in direct response to parliamentary questions that followed the company's September 28, 2026 Letter to Shareholders from President and CEO Chris Adams. The questions were raised during a plenary session of Mongolia's Parliament on October 2, 2026. The release states that discussions with a Government Working Group and Oyu Tolgoi project stakeholders regarding State participation in the area of the two licences are ongoing, and the company is continuing efforts to advance the transfer process in accordance with Mongolian law.

Transfer Tax Remitted but MTA Valuation Confirmation Remains Outstanding

Under Mongolian law, it is the licence holder's responsibility to calculate the value of a mining licence using a prescribed methodology and then seek confirmation from the MTA. Entrée LLC, supported by Oyu Tolgoi LLC and their respective legal and tax advisors, calculated the values of the Shivee Tolgoi and Javkhlant licences, remitted the applicable transfer tax, and submitted a formal request with supporting documentation including remittance receipts. The MTA has since advised that it considers the submitted materials incomplete and has therefore not issued the required tax payment certificates.

Licence Transfer Prerequisite to Lift 1 Underground Activities on Shivee Tolgoi

The company's disclosure explicitly states that the licences must be transferred to Oyu Tolgoi LLC for Lift 1 underground development and extraction activities on the Shivee Tolgoi mining licence to proceed. Entrée holds a 20% or 30% carried participating interest in the Entrée/Oyu Tolgoi joint venture depending on the depth of mineralisation, with Rio Tinto and Royal Gold among its major shareholders, holding approximately 16% and 24% of Entrée's shares, respectively.