Entrée Forms Joint Venture with Ivanhoe Mines

July 16, 2008

Vancouver, B.C., July 16, 2008 - Entrée Gold Inc. (TSX:ETG; AMEX:EGI; Frankfurt:EKA – “Entrée” or the “Company”) has been notified by Ivanhoe Mines Ltd. (TSX: IVN; NYSE: IVN; NASDAQ: IVN – “Ivanhoe Mines”) that its subsidiary, Ivanhoe Mines Mongolia Inc. XXK, has incurred expenditures of US$35 million on exploration of the Entrée-Ivanhoe Mines area covered by the 2004 earn-in agreement (the “Earn-In Agreement”).  Under the terms of the Earn-In Agreement, once this level of expenditures has been reached, a joint venture is deemed to be formed and the Earn In Agreement will be replaced by a joint venture agreement. 

“Ivanhoe Mines has been an outstanding partner, as evidenced by the discovery of the resources at Hugo North Extension and Heruga.  These deposits complement their already substantial reserves.  We look forward to working with Ivanhoe Mines as our joint venture partner.  This will clearly benefit all of our shareholders and the people of Mongolia,” commented Entrée’s President and CEO, Greg Crowe.

Under the original Earn-In Agreement, Ivanhoe Mines was required to spend a minimum of US$20 million in order to earn any interest in the Project Property and could acquire 70% interest in mineralization above a depth of 560 metres and 80% interest in mineralization below a depth of 560 metres by spending US$35 million. Entrée has the right to require Ivanhoe to fund its share of subsequent joint venture costs through to production, to be recovered only from production cash flow.  This ensures Entrée cannot be diluted out of its interest due to an inability to finance.


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.

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
Email:  [email protected]

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