Entree Gold Discovers Coal in Mongolia

August 25, 2008

Vancouver, B.C., August 25, 2008 - Entrée Gold Inc. (TSX:ETG; AMEX:EGI; Frankfurt:EKA –“Entrée” or the “Company”) announces a new coal discovery on its 100% owned Togoot license, which forms the western portion of its Lookout Hill Property in Mongolia. Exploration in 2008 is focused on a number of geological targets on the Togoot license including the new coal discovery, Nomkhon Bohr.


Entrée is evaluating a coal target known as Nomkhon Bohr, located in the northwest corner of the license, approximately 60 kilometres northwest of Ivanhoe Mines Ltd. (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN) ("Ivanhoe Mines") Oyu Tolgoi copper-gold deposits and 70 kilometres southeast of the Tavan Tolgoi coal deposit. A haul road, currently used to transport coal from Tavan Tolgoi to China, passes within five kilometres of Nomkhon Bohr.

Greg Crowe, President and CEO of Entrée, stated, "The discovery of coal on our 100%-owned Togoot license greatly enhances the exploration potential of our Lookout Hill project. The location of the discovery is particularly important as it occurs close to the haulage road currently used to ship coal from the rich Tavan Tolgoi deposit to China. Should this coal discovery proceed to development, it is well situated with respect to both the Chinese market and to the developing Oyu Tolgoi copper-gold project. Entrée is proceeding with a full evaluation of Nomkhon Bohr."

Entrée has been evaluating the Nomkhon Bohr area with geological mapping, magnetic and induced polarization ("IP") geophysical surveys, excavator-assisted trenching, and core drilling. The work to date has traced the target over a strike length of 1,000 metres, and it remains open along strike to the east and to the west and downdip.

Seven trenches totalling 620 metres and five core holes totalling 467 metres have been completed; however, only two of the five holes completely tested the target and the remaining three holes were abandoned due to drilling problems. Hole EG-08-068 intersected three multi-metre-thick coal-bearing horizons of 13.50 metres, 25.65 metres, and 7.57 metres apparent thickness - within these horizons are coal seams of variable apparent thickness. Hole EG-08-071 encountered two coal-bearing horizons with interbedded mudstones and coal over apparent thicknesses of 21.40 metres and 57.40 metres. Hole EG-08-072 intersected the coal-bearing horizon at 42.05 metres but the hole was abandoned at 66.60 metres. The quality of coal within the target is as yet undetermined. Drill core samples have been submitted for analysis to SGS Tianjin China; however, results are not expected for several weeks.

The coal target continuity appears to be predictable from hole to hole, and from trench to trench. Further drilling to test the downdip continuity of the coal-bearing horizons is planned, as well as further trenching along strike.

Entrée has contracted with Norwest Corporation, an international natural resource consulting group, to evaluate the geology of the Nomkhon Bohr discovery and intends to have Norwest assist with ongoing exploration.

James R. Foster, P.Geo., Entrée's Project Manager - Lookout Hill, and a qualified person as defined by NI 43-101, supervised the preparation of the information in this news release.


Entrée Gold Inc. is a Canadian mineral exploration company focused on the worldwide exploration and development of gold and copper prospects. Most notably, the Company is a large landholder in Mongolia, where it holds three exploration licenses that comprise the 179,590-hectare Lookout Hill property. Lookout Hill completely surrounds the 8,500-hectare Oyu Tolgoi project of Ivanhoe Mines, and hosts the Hugo North Extension of the Hugo Dummett deposit and the newly discovered Heruga deposit.

In July 2008, Entrée formed a joint venture with Ivanhoe Mines' wholly-owned Mongolian subsidiary on approximately 40,000 hectares of the Lookout Hill property. Pursuant to an "Earn-in Agreement" announced in October 2004, Ivanhoe Mines' subsidiary earned a 70% interest in mineralization above a depth of 560 metres and an 80% interest in mineralization below a depth of 560 metres by spending US$35 million on the joint venture property. Details of the Earn-In Agreement are available on Entrée's website at www.Entré and on SEDAR at

The Hugo North Extension on Lookout Hill, identified through drilling conducted by Ivanhoe Mines as part of the Earn-In Agreement, contains an Indicated Resource of 117 million tonnes averaging 1.8% copper and 0.61 g/t gold for a copper equivalent grade of 2.19%. The contained metal in this Indicated Resource is estimated at 4.6 billion pounds of copper and 2.3 million ounces of gold. An additional Inferred Resource for this area is estimated at 95.5 million tonnes grading 1.15% copper and 0.31 g/t gold for a copper equivalent grade of 1.35%, containing 2.4 billion pounds of copper and 950,000 ounces of gold. Both the Indicated and Inferred Resources use a 0.6% copper equivalent cut-off grade. No consideration was made for metallurgical recoveries. (See the Company's news release from March 29, 2007).

On March 12, 2008, Entrée announced an initial mineral resource estimate prepared for the Heruga copper, gold, and molybdenum deposit, under the supervision of Quantitative Group, Perth Australia. Heruga is estimated to contain an Inferred Resource of 760 million tonnes grading 0.48% copper, 0.55 g/t gold and 142 ppm molybdenum for a copper equivalent grade of 0.91%, using a 0.60% copper equivalent cut-off grade. Based on these figures, the Heruga deposit is estimated to contain at least eight billion pounds of copper and 13.4 million ounces of gold. Drilling is being conducted by joint venture partner, Ivanhoe Mines.

The Company continues to explore its large landholdings in Mongolia as well as evaluating new opportunities throughout the region and elsewhere in Asia. Entrée plans to explore the Huaixi copper project in Zhejiang Province in China, under the terms of an agreement with the No. 11 Geological Brigade. In North America, the Company is exploring for copper-molybdenum porphyry systems in the southwest USA. The Company is also seeking additional opportunities to utilize its expertise in exploring for deep and/or concealed ore deposits.

Ivanhoe Mines and Rio Tinto are major shareholders of Entrée, holding approximately 15% and 16% of issued and outstanding shares respectively.


Mona Forster, VP & Corporate Secretary
Entrée Gold Inc.
Tel: 604 687-4777
E-mail: [email protected]

Primoris Group
Tel: 866-368-7330
E-mail: [email protected]

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