October 6, 2009
Oyu
Tolgoi Investment Agreement Signed
Vancouver, B.C.,
October 06, 2009 - Entr�e Gold Inc. (TSX:ETG; NYSE Amex:EGI;
Frankfurt:EKA � �Entr�e� or the �Company�) welcomes the signing of the
Investment Agreement between our joint venture partner, Ivanhoe Mines (TSX:
IVN; NYSE: IVN; NASDAQ: IVN � �Ivanhoe Mines�), our largest shareholder Rio
Tinto (NYSE: RTP; LSE: RIO.L; ASX: RIO.AX) and the Mongolian government. The
successful conclusion to the negotiations paves the way for the development
of Entr�e�s Hugo North Extension and Heruga deposits as part of the overall
construction and operation of the massive Oyu Tolgoi mining complex.
The Hugo North Extension and Heruga deposits are located within Entr�e�s
Lookout Hill property along the Oyu Tolgoi trend of copper-gold-molybdenum
mineralization. These deposits are subject to the joint venture between
Entr�e and Ivanhoe Mines� subsidiary, Ivanhoe Mines Mongolia Inc. Oyu Tolgoi
is the world�s largest and richest, undeveloped porphyry
copper-gold-molybdenum project. Some of the highest grade copper-gold
mineralization lies within the Hugo North Extension deposit and the highest
molybdenum grades occur within the Heruga deposit.
Greg Crowe, President and CEO of Entr�e, stated: �We congratulate the
Mongolian government and our partners, Ivanhoe Mines and Rio Tinto, on the
hard work, patience and perseverance that all parties undertook to reach this
historic moment. Projects of the magnitude and richness of Oyu Tolgoi are
extremely rare and the successful development of it will bring substantial
benefits not only to the Mongolian people, but to the investors in companies
with interests in this project.�
Mr. Crowe further commented, �We have long believed that considerable
exploration potential exists in the region, and this was reiterated earlier
today by Bret Clayton, chief executive of Rio Tinto�s Copper and Diamonds
group. We understand that the conversion of our Shivee Tolgoi and Javhlant
exploration licenses to mining licenses is one of the key conditions to the
Investment Agreement. A portion of these licenses is subject to the joint
venture between Entr�e and Ivanhoe Mines, and as such, is important to the
overall development and upside potential of Oyu Tolgoi.�
Application has been made to the Mongolian government�s Cadastre office to
convert the Shivee Tolgoi and Javhlant exploration licenses to mining
licenses and the Company is awaiting confirmation from the Cadastre office. Upon
conversion, the government of Mongolia will be entitled to secure a 34%
interest in the properties.
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 three exploration
licenses comprising 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 copper-gold deposit
and the Heruga copper-gold-molybdenum deposit.
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 agreements with Empirical Discovery
LLC, in Nevada through option agreements with HoneyBadger Exploration Inc.
and Bronco Creek Exploration Inc. and in British Columbia 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.
Ivanhoe Mines and Rio Tinto are major shareholders of Entr�e, holding
approximately 15% and 16% 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
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Peter Oates
Corporate Communications
Entr�e Gold Inc.
Tel: 604-687-4777
Toll Free: 866-368-7330
E-mail: poates@entreegold.com
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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 and the conversion of the Shivee Tolgoi and Javlant exploration
licence to mining licences. 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.
Investor
Relations Contact:
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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
mobile.entreegold.com
(TSX: ETG)
(NYSE Amex: EGI)
(Frankfurt: EKA)
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