Entree Gold Inc.
AMEX : EGI
FRANKFURT : EKA
TSX : ETG

Entree Gold Inc.

November 05, 2007 18:28 ET

Entree Gold Announces Financing Increased to $43,285,000

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 5, 2007) -

NOT FOR DISTRIBUTION TO US NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Entree Gold Inc. (TSX:ETG)(AMEX:EGI)(FRANKFURT:EKA) ("Entree" or the "Company") has received confirmation that Ivanhoe Mines Ltd. (TSX:IVN)(NYSE:IVN)(NASDAQ:IVN) ("Ivanhoe Mines") and Rio Tinto, through its wholly owned subsidiary Kennecott Canada Exploration Inc. (NYSE:RTP)(LSE:RIO.L) (collectively, "Rio Tinto") have elected to exercise their respective rights to participate in Treasury Offering announced earlier today. Ivanhoe Mines will acquire approximately 2,128,356 shares at C$3.00 for proceeds of approximately C$6,385,068 to maintain its ownership of approximately 14.8% of Entree's issued and outstanding shares. Rio Tinto will acquire approximately 2,300,284 shares at C$3.00 for proceeds of approximately C$6,900,852 to maintain its ownership of approximately 15.9% of Entree's issued and outstanding shares.

Entree's President & CEO, Greg Crowe, commented, "This bought deal financing represents a vote of confidence in Entree by the capital markets and by our strategic partners, Ivanhoe Mines and Rio Tinto. In a competitive marketplace, Entree, with it's strengthened treasury, will be in an excellent position to seek and acquire additional complementary projects for the benefit of our shareholders. This is the beginning of a new and exciting phase in the development of our Company."

Entree entered into an agreement with BMO Nesbitt Burns Inc., earlier today on a bought deal basis, for the purchase of 10,000,000 common shares of the Company. The offering price is C$3.00, representing proceeds of C$30,000,000. This transaction is subject to receipt of all necessary regulatory and stock exchange approvals. Closing is expected on or about November 26, 2007.

Total proceeds to the Company, after participation by Ivanhoe Mines and Rio Tinto, will be approximately $43,285,920. Upon conclusion of the financing, Entree's treasury will exceed $70,000,000.

Proceeds from this offering will be used for general corporate purposes, future exploration expenditures related to Lookout Hill, and to finance any future property acquisitions that the board of directors of the Company deem appropriate. The Company is actively looking to acquire and manage advanced projects which are complementary to its existing projects in Mongolia and the United States.

The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

ABOUT ENTREE GOLD INC.

Entree Gold Inc. (www.entreegold.com) is a Canadian mineral exploration company focused on the exploration and acquisition of base and precious metal deposits in the circum-Pacific region, which is host to many of the world's giant ore bodies. Included in the latter are the Oyu Tolgoi copper-gold-molybdenum porphyry deposits in southern Mongolia, a portion of which Entree shares with its strategic partners, Ivanhoe Mines and Rio Tinto. Lookout Hill, Entree's flagship project in Mongolia, completely surrounds Oyu Tolgoi and is host to the Hugo North Extension 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. In North America, the Company is exploration for copper-molybdenum porphyries in the southwest United States and seeking additional opportunities to utilize its expertise in exploration for deep and/or concealed ore deposits.

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 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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