Entrée Gold Corporate Update
August 22, 2007
Vancouver, B.C., August 22, 2007 - Entrée Gold Inc. (TSX:ETG; AMEX:EGI; Frankfurt:EKA – “Entrée” or the “Company”) provides an update on corporate activities.
Mongolian Government Initiatives
The Mongolian parliament has taken a short recess and is expected to reconvene in early September. In a statement released on Monday, August 20, 2007, the Mongolian government reaffirmed the importance to it of the draft Investment Agreement with Ivanhoe Mines Ltd. (TSX:IVN; NYSE:IVN; NASDAQ:IVN – “Ivanhoe”). The Company continues to monitor the situation and remains encouraged with its understanding of it.
Entrée commenced the 2007 exploration season at its Lookout Hill Project area in May. To date, eight holes totalling 4,760 metres have tested six geophysical targets hosted in interpreted Oyu Tolgoi equivalent stratigraphy, as well as a molybdenum-rich target zone. A ninth hole is in progress. Drilling has successfully encountered Devonian age rocks, known to host copper-gold mineralization at Oyu Tolgoi. Efforts to date have been focused on rocks of similar age and results will be used to assist in defining future drill targets. The Company has also completed 5,900 line-kilometres of airborne magnetic surveying over its Togoot licence, to assist in identifying additional areas of permissive Devonian age rocks.
Entrée - Ivanhoe Agreement Area
Ivanhoe continues its exploration of the joint Entrée-Ivanhoe agreement area both to the north and south of its Oyu Tolgoi mining licence. Three drills are currently testing the Sparrow South induced polarization anomaly on the Devonian-aged Oyu Tolgoi stratigraphy (or mineralized trend), located from the Entrée-Ivanhoe boundary and up to 3 kilometres south. A fourth drill has been added to test a parallel induced polarization trend, the Castle Rock anomaly. Drilling to date has encountered widespread but variable low-moderate grade copper +/- molybdenum and gold mineralization in a setting similar to that of Oyu Tolgoi.
The drilling is widely spaced and numerous faults occur within the host sequence, hence geological correlations between holes and section lines are uncertain. Full results will be reported when complete assay information and geological interpretation has been received from Ivanhoe, the project operator.
The agreement with Empirical Discovery LLC announced on July 18, 2007 was accepted by the Toronto Stock Exchange on August 17, 2007. Ground checking of a number of targets defined from evaluation of airborne geophysical data in southeastern Arizona and adjoining southwestern New Mexico has commenced. Ground geophysical surveys over selected high priority targets are expected to commence in September 2007.
Entrée currently holds C$30 million in a variety of investment vehicles. Over 87% (C$26 million) is held in GICs with approximately 13% (C$4 million) in Canadian asset backed commercial paper, the agent for which is Nereus Financial Inc., an indirect wholly-owned subsidiary of Coventree Inc. The latter notes do not mature until September 13, 2007. Until the maturity of these notes, Entree cannot assess the likelihood of any difficulty in repayment.
QUALITY ASSURANCE AND CONTROL
Robert Cann, P.Geo., Entrée’s Vice-President, Exploration and a Qualified Person as defined by National Instrument 43-101, is responsible for the preparation of technical information in this news release.
Ivanhoe’s QA/QC program is monitored by independent consultant Dr. Barry Smee, P.Geo., and managed on site by Dale Sketchley, M.Sc., P.Geo. SGS Mongolia LLC prepares the split core at the project site and assays all samples at its facility in Ulaanbaatar, Mongolia. Prepared standards and blanks are inserted at the sample preparation lab on the project site to monitor the quality control of the assay data.
ABOUT ENTRÉE GOLD INC.
Entrée Gold Inc. (www.entreegold.com) is a Canadian mineral exploration company focused on the exploration and development of gold and copper prospects, worldwide.
Most notably, the Company is a large landholder in Mongolia, where it holds a 100% interest in mineral concessions that comprise the 179,590-hectare Lookout Hill (Shivee Tolgoi) property, which completely surrounds the 8,500-hectare Turquoise Hill (Oyu Tolgoi) project of Ivanhoe Mines Ltd. (“Ivanhoe”), and hosts the Hugo North Extension of the Hugo Dummett Deposit.
|Monica Hamm, Investor Relations||Primoris Group|
|Entrée Gold Inc.||Tel: 866-368-7330|
|Tel: 604-687-4777||Email: [email protected]|
|E-mail: [email protected]|
This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. Readers are referred to the sections entitled “Risk Factors” in the Company’s periodic filings with the British Columbia Securities Commission, which can be viewed at www.SEDAR.com, and with the United States Securities and Exchange Commission, which can be viewed at www.SEC.gov.