March 31, 2010
Oyu Tolgoi Investment Agreement Finalized
Vancouver, B.C. - Entr�e Gold Inc.
(TSX:ETG; NYSE AMEX:EGI; Frankfurt:EKA � �Entr�e� or the �Company�) welcomes
the finalization of the landmark Investment Agreement between the Mongolian
Government, Rio Tinto (NYSE: RTP; LSE: RIO.L; ASX: RIO.AX � �Rio�); and Oyu
Tolgoi LLC, the Mongolian subsidiary of Ivanhoe Mines Ltd. (TSX:IVN;
NYSE:IVN; NASDAQ:IVN � collectively �Ivanhoe Mines�) that will be owned 66%
by Ivanhoe Mines and 34% by the Mongolian government.
Greg Crowe, President and CEO of Entr�e stated: �This historic agreement
marks the beginning of a new era in Mongolia. The construction and
operations for the Oyu Tolgoi mining complex, which includes the
Entr�e-Ivanhoe Joint Venture Property, are important to the future economic
development of the country. A project of this magnitude will create
thousands of jobs, both directly and indirectly, for the Mongolian people and
provide stability for years to come. Settling this agreement is the
next step necessary to access the riches of this exceptional copper-gold
deposit for the benefit of Mongolia and the stakeholders that have been long
term supporters of this project.�
Entr�e is expected to benefit from the stability provided by this
agreement, which has a term of 30 years with a possible 20 year extension,
throughout the construction and development of this world class project in
conjunction with its partners, Rio Tinto and Ivanhoe Mines.
For more information on this historic agreement please see the news
releases issued by Rio Tinto and Ivanhoe Mines on March 31, 2010.
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. The
Company flagship property is in Mongolia, where it holds two mining licences
(Shivee Tolgoi and Javhlant) and one exploration licence (Togoot) comprising
the 179,590 hectare Lookout Hill property. The application to convert
the Togoot licence to a mining licence is currently under review. Lookout
Hill completely surrounds the 8,500-hectare Oyu Tolgoi project of Ivanhoe
Mines, and hosts the Hugo North Extension copper-gold deposit and the Heruga
copper-gold-molybdenum deposit.
Under the terms of the joint venture, Entr�e is carried through to
production, at its election, by debt financing from Ivanhoe Mines with interest
accruing at Ivanhoe Mines� actual cost of capital or prime +2%, whichever is
less, at the date of the advance. Debt repayment may be made in whole
or in part from (and only from) 90% of monthly available cash flow arising
from its sale of product. Such amounts will be applied first to payment
of accrued interest and then to repayment of principal. Available cash
flow means all net proceeds of sale of Entr�e�s share of products in a month
less Entr�e�s share of costs of operations for the month.
The Company continues to explore its large landholdings in Mongolia,
including the coal discovery Nomkhon Bohr. Entr�e is also evaluating
new opportunities throughout the region and elsewhere in Asia. Entr�e
is exploring 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 porphyry-related copper
systems in Arizona and New Mexico under an agreement with Empirical Discovery
LLC. In 2009, Entr�e optioned two large contiguous properties, Blackjack and
Roulette, in the Yerington porphyry copper district of Nevada through option
agreements with HoneyBadger Exploration Ltd. and Bronco Creek Exploration
Inc. In November 2009, Entr�e announced an agreement with PacMag Metals
Limited to implement Australian Schemes of Arrangement to acquire all of the
issued shares and options of PacMag. PacMag holds the rights to land
contiguous with the Blackjack and Roulette properties and hosts the Ann Mason
deposit. In British Columbia, Entr�e has the right to earn 100% interest in
the early stage copper-molybdenum Crystal property through an agreement with
Taiga Consultants Ltd.
The Company is also seeking additional opportunities to utilize its
expertise in exploring for deep and/or concealed ore deposits. With a
treasury in excess of C$40 million, the Company is well funded for future
activities.
Rio Tinto and Ivanhoe Mines are major shareholders of Entr�e, holding
approximately 15% and 14% of issued and outstanding shares, respectively.
FURTHER INFORMATION
Monica Hamm, Manager, Investor Relations
Entr�e Gold Inc.
Tel: 604-687-4777
Toll Free: 866-368-7330
E-mail: mhamm@entreegold.com
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. Such statements include those relating to the development
of the Oyu Tolgoi project. 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.
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Entr�e Gold
Inc.
1201 - 1166 Alberni Street
Vancouver, BC
Canada V6E 3Z3
Telephone: (604) 687-4777
Facsimile: (604) 687-4770
Toll-free: 866-368-7330
info@entreegold.com
(TSX: ETG)
(NYSE Amex: EGI)
(Frankfurt: EKA)
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