Erdene Gold Inc.
TSX : ERD

Erdene Gold Inc.

November 28, 2007 14:41 ET

CORRECTION FROM SOURCE: Erdene Releases Final Phase I Drill Results at Zuun Mod Outlines Two Large Molybdenum Zones

A correction from source is issued in respect to the press release published today at 2:01pm. In the Zuun Mod Project Highlights, in the 3rd paragraph, it should have read 0.071% Mo (ZMD-39) instead of 0.71% Mo (ZMD-39). The complete and corrected version follows.

HALIFAX, NOVA SCOTIA--(Marketwire - Nov. 28, 2007) - Erdene Gold Inc. (TSX:ERD) announced today that final phase Phase I drill program results have been received while Phase II drilling continues for resource delineation and expansion.

"Zuun Mod continues to impress our technical team with these latest results further defining two large open pit targets which is exciting given we have only drill-tested a small portion of the known molybdenum and copper anomaly" said Peter Akerley, President and C.E.O. "As China moves to restrict molybdenum exports and foreign investment in molybdenum projects and producers announce reductions in future supply, the market is undergoing significant tightening."


Zuun Mod Project Highlights:

- Zuun Mod is strategically located just 200km from rail into China, the world's fastest growing molybdenum consumer.

- Multiple centres of molybdenum and copper mineralization, traced over the 12 kilometre trend of mineralization are being evaluated at Zuun Mod.

- Newly reported intersections of significant grade from deepened holes include: 126 metres of 0.071% Mo (ZMD-39) and 231 metres of 0.064% Mo (ZMD-24).

- Two sizable zones of molybdenum mineralization, Racetrack South and Racetrack North are now being defined in the South Corridor of the Zuun Mod porphyry complex.

- These zones come to within 34 metres and 18 metres of surface locally providing relatively shallow mineralization for initial development.

A drill hole location map will be available on our website at www.erdene.com.

Racetrack South Highlights:

Twenty seven holes have now been completed in the Racetrack South zone within an area approximately 1200 metres by 400 metres. Highlights of Phase I drilling in the Racetrack South zone are listed in Table 1:



Table 1:

RACETRACK SOUTH: PHASE I DRILLING

Hole From To Width (m) Re %Mo
(g/t)
-------------------------------------------------------
ZMD-18 108 328 220 0.18 0.05
-------------------------------------------------------
Including 200 312 112 0.23 0.062
-------------------------------------------------------
ZMD-20 34 284 250 0.16 0.04
-------------------------------------------------------
Including 208 246 38 0.26 0.06
-------------------------------------------------------
ZMD-22 62 334 272 0.22 0.051
-------------------------------------------------------
Including 144 308 164 0.27 0.063
-------------------------------------------------------
ZMD-23 164 256 92 0.2 0.04
-------------------------------------------------------
Including 178 204 26 0.3 0.064
-------------------------------------------------------
ZMD-24 119 350 231 0.26 0.064
-------------------------------------------------------
Including 181 215 34 0.42 0.101
-------------------------------------------------------
and 227 251 24 0.4 0.101
-------------------------------------------------------
ZMD-25 104 350 246 0.21 0.042
-------------------------------------------------------
Including 166 200 34 0.34 0.062
-------------------------------------------------------
Including 240 284 44 0.27 0.06
-------------------------------------------------------
ZMD-26 198 350 152 0.15 0.041
-------------------------------------------------------
Including 234 264 30 0.22 0.062
-------------------------------------------------------
ZMD-28 52 276 224 0.17 0.052
-------------------------------------------------------
Including 82 202 120 0.18 0.06
-------------------------------------------------------
Including 234 276 42 0.22 0.062
-------------------------------------------------------


Based on the Phase I results (11 holes) the Racetrack South is characterized by a broad zone of mineralization ranging in thickness from 36 to 272 metres averaging greater than 0.045% molybdenum surrounding a higher grade zone ranging in thickness from 26 to 164 metres grading greater than 0.06% molybdenum. The deepening of the initial phase I holes has resulted in significant thickening of the Racetrack South mineralized zone. Examples of this are ZMD-22 which has increased from 118 metres of 0.053% Mo to 272 metres of 0.051% Mo and includes 164 metres of 0.063% Mo and ZMD-24 where the 168 metre zone of 0.06% Mo has been extended to 231 metres of 0.064% Mo. Mineralization continues beyond a depth of 350 metres in multiple holes drilled in this zone and comes to within 34 metres of surface. The Racetrack deposit continues to the west under andesite porphyry cover.

Racetrack North Highlights:

Twelve holes have been completed in the Racetrack North zone over an area approximately 1000 metres by 400 metres. A summary of highlights from Phase I drilling in the Racetrack North zone are listed in Table 2 below.



Table 2:
-------------------------------------------------------
RACETRACK NORTH: PHASE I DRILLING
-------------------------------------------------------
Hole From To Width (m) Re %Mo
(g/t)
-------------------------------------------------------
ZMD-29 18 288 270 0.21 0.044
-------------------------------------------------------
Including 46 172 126 0.3 0.063
-------------------------------------------------------
Including 82 118 36 0.45 0.103
-------------------------------------------------------
ZMD-37 24 78 54 0.19 0.047
-------------------------------------------------------
Including 38 66 28 0.26 0.063
-------------------------------------------------------
ZMD-39 40 350 310 0.3 0.053
-------------------------------------------------------
Including 58 128 70 0.79 0.07
-------------------------------------------------------
Including 224 350 126 0.21 0.071
-------------------------------------------------------
Including 310 346 36 0.3 0.112
-------------------------------------------------------
ZMD-44 152 344 192 0.21 0.04
-------------------------------------------------------
ZMD-45 182 264 82 0.27 0.043
-------------------------------------------------------
Including 228 258 30 0.43 0.063
-------------------------------------------------------
ZMD-46 32 250 218 0.21 0.041
-------------------------------------------------------
Including 184 242 58 0.27 0.061
-------------------------------------------------------


Based on the Phase I results (7 holes) the Racetrack North is characterized by a broad zone of mineralization ranging from 54 to 310 metres averaging 0.045% molybdenum surrounding a higher grade zone ranging in thickness from 28 to 126 metres grading greater than 0.06% molybdenum. The Racetrack North zone is characterized by near surface mineralization (within 18 metres) and a thick section of higher grade mineralization centered on hole ZMD-39 with 126 metres of 0.071% Mo within 310 metres of 0.051% Mo. The Racetrack North zone continues to be the subject of Phase II step-out drilling.

Surface Work Program Update:

Erdene has recently completed an expanded surface exploration program across the entire Zuun Mod complex including a more detailed geochemical survey and an expanded IP dipole-dipole survey over a 4.5 kilometre wide by 10 kilometre long area. This program was designed to further test previously identified broad zones of anomalous molybdenum and copper mineralization within the Zuun Mod complex. Additional targets have been generated by the recent geochemical and geophysical program throughout the 12 kilometre circumference of the Zuun Mod system and details will be reported on receipt of final results.

Minarco-MineConsult

Erdene has retained the services of Minarco-MineConsult, a member of the Runge Group, of Sydney Australia, to carry out an independent resource estimate for the Zuun Mod molybdenum project. Minarco-MineConsult is a prominent mining and energy industry advisor in the Asia Pacific region. The report will include geological modeling, geostatistical analysis, grade modeling and a mineral resource estimate for the Zuun Mod molybdenum deposit. The final report is expected in first quarter 2008 and will include the results from the current Phase II resource delineation drilling program.

About Erdene Gold Inc.

Erdene is a diversified mineral company with exploration properties focused on high-growth commodities and near-production assets. The company has a strong portfolio of exploration properties in Mongolia focused on base metals (copper and molybdenum), precious metals (gold and palladium) and energy (coal). Erdene has strategic alliances with Xstrata Coal to develop its coal properties in Mongolia. Xstrata Coal is a significant Erdene shareholder with a 4% ownership of the company's common shares and has representation on its board of directors. In addition, Erdene has near-term cash flow opportunities in its North American assets, which includes its 25% interest in the Donkin Coal Alliance in Nova Scotia with Xstrata Coal Donkin Limited and agreements with J.M. Huber Corporation and Cemex as operators and developers in the southeast U.S. for its kaolin clay and aggregate projects respectively. Erdene has current cash and equivalent position of approximately $7.7 million with 65,809,439 common shares issued and outstanding and a fully diluted share position of 75,480,852.

Qualified Person

This press release has been prepared under the supervision of J. C. (Chris) Cowan, P.Eng., who serves as the qualified person under National Instrument 43-101. All samples were prepared at the SGS Laboratory in Ulaanbaatar, Mongolia and analyzed by method of ICP at the ALS Chemex Laboratory in Vancouver, Canada. In addition to internal checks by SGS Laboratory, the Company incorporates a QA/QC sample protocol utilizing prepared standards, sample splits and duplicates.

Forward-Looking Statements

Certain information regarding Erdene contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Erdene believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Erdene cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what Erdene currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date.

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