Forms Joint Venture with Ivanhoe Mines
Vancouver, B.C., July 16, 2008 - Entr�e Gold Inc. (TSX:ETG;
AMEX:EGI; Frankfurt:EKA - "Entr�e" 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 Entr�e-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 Entr�e's President and CEO, Greg Crowe.
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. Entr�e 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 Entr�e cannot be diluted out of its
interest due to an inability to finance.
ABOUT ENTR�E GOLD INC.
Entr�e 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. Entr�e 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 Entr�e, holding approximately 15% and 16% of issued and
outstanding shares respectively.
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
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.