Hugo North Extension and Heruga

Entrée Gold Inc.

PHOTOS
INFO

The Hugo North Extension is a rich copper-gold porphyry deposit and Heruga is a copper-gold-molybdenum porphyry deposit. Both projects are located in the South Gobi desert of Mongolia, approximately 570 kilometers south of the capital city of Ulaanbaatar and 80 kilometers north of the border with China. The Hugo North Extension and Heruga are part of the Oyu Tolgoi mining complex and are managed by Oyu Tolgoi LLC, a subsidiary of Turquoise Hill Resources and the Government of Mongolia, and its project manager Rio Tinto PLC. Entrée retains a 20% interest in the resource deposits of the Hugo North Extension and Heruga.

Entrée recently announced that an Oyu Tolgoi underground mine development and financing plan had been signed by the Government of Mongolia, Entrée's joint venture partner, Oyu Tolgoi LLC, Turquoise Hill Resources Ltd. and Rio Tinto. The plan provides a path forward to the eventual restart of underground development, including Lift 1 of the Hugo North Extension. Recently, Entrée’s joint venture partner, announced that it had signed a $4.4 billion finance facility for underground mine development at the Oyu Tolgoi project. The facility is being provided by a syndicate of international financial institutions and export credit agencies representing the governments of Canada, the United States and Australia, along with 15 commercial banks.

Terms

Sandstorm has agreed to purchase an amount equal to 5.62% and 4.26% of the gold and silver by-products produced from the Hugo North Extension and Heruga deposits, respectively and an amount equal to 0.42% of the copper produced. Sandstorm will make ongoing payments equal to US$220 per ounce of gold, US$5 per ounce of silver and US$0.50 per pound of copper (subject to inflationary adjustments) until approximately 8.6 million ounces of gold, 40.3 million ounces of silver and 9.1 billion pounds of copper have been produced from the joint venture property. Thereafter, the purchase price will increase to US$500 per ounce of gold, US$10 per ounce of silver and US$1.10 per pound of copper (subject to inflationary adjustments). Sandstorm made an upfront cash deposit of US$40 million to acquire the stream in February 2013.

Key Streams & Royalties

DEVELOPMENT-STAGE
PRODUCING
ALL
Chapada | Yamana Gold Inc. Chapada | Yamana Gold Inc.
Black Fox | Primero Mining Corp. Black Fox | Primero Mining Corp.
Santa Elena | First Majestic Silver Corp. Santa Elena | First Majestic Silver Corp.
Bachelor Lake | Metanor Resources Inc. Bachelor Lake | Metanor Resources Inc.
Karma | Endeavour Mining Corp. Karma | Endeavour Mining Corp.
Cerro Moro | Yamana Gold Inc. Cerro Moro | Yamana Gold Inc.
Ming | Rambler Metals & Mining PLC Ming | Rambler Metals & Mining PLC
Hugo North Extension and Heruga | Entrée Gold Inc. Hugo North Extension and Heruga | Entrée Gold Inc.
Diavik | Rio Tinto plc Diavik | Rio Tinto plc
Hot Maden | Lidya Madencilik Hot Maden | Lidya Madencilik
Hackett River | Glencore plc Hackett River | Glencore plc
Lobo-Marte | Kinross Gold Corp. Lobo-Marte | Kinross Gold Corp.
Aurizona | Luna Gold Corp. Aurizona | Luna Gold Corp.
Bracemac-McLeod | Glencore plc Bracemac-McLeod | Glencore plc
Copper Mountain | Copper Mountain Mining Corp. Copper Mountain | Copper Mountain Mining Corp.
Gualcamayo | Yamana Gold Inc. Gualcamayo | Yamana Gold Inc.
Emigrant Springs | Newmont Mining Corp. Emigrant Springs | Newmont Mining Corp.
Ağı Dağı and Kirazli | Alamos Gold Inc. Ağı Dağı and Kirazli | Alamos Gold Inc.
MWS | Anglogold Ashanti Ltd. MWS | Anglogold Ashanti Ltd.

Corporate Head Office

Suite 1400
400 Burrard Street
Vancouver, BC | V6C 3A6 Canada

604.689.0234
1.866.584.0234
604.689.7317

info@sandstormLTD.com
www.sandstormLTD.com

Investor Relations

Denver Harris

604.628.1178
1.866.584.0234 ext. 254

dharris@sandstormLTD.com
request more info