Entree Gold Inc.

Entree Gold Inc.

March 08, 2005 09:00 ET

Entree Commences Exploration Programs Totaling US$3.9 Million in Mongolia


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ENTREE GOLD INC.

TSX VENTURE SYMBOL: ETG

MARCH 8, 2005 - 09:00 ET

Entree Commences Exploration Programs Totaling US$3.9
Million in Mongolia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 8, 2005) - Entree Gold
Inc. (TSX VENTURE:ETG) ("Entree" or the "Company") announces the
commencement of the 2005 exploration programs at its Lookout Hill and
Ulziit Uul properties in Mongolia. The exploration budget for these two
programs totals approximately US$3.9 million. Crews have been mobilized
and Induced Polarization ("IP") and magnetotelluric ("MT") geophysical
surveys have begun. Anomalies identified from these deep penetrating
surveys will be reviewed, with the aim of refining drill targets. An
8,000 meter drill contract has been signed with Can-Asia Drilling
Services Ltd. of Mongolia with drilling slated to commence in late April
or early May 2005.

"Entree is excited to initiate its 2005 exploration program," said Greg
Crowe, President and CEO of Entree Gold. "The results from our previous
work have outlined several zones of significant mineralization on our
100% owned Mongolian properties. We look forward to further delineating
the extent of these known mineralized systems and exploring the
potential of the remaining 140,000 hectares of ground outside of the
Project Property as defined in the Entree-Ivanhoe Earn-In and Equity
Participation Agreement of October 2004."

Entree has engaged Quantec Geoscience Ltd. of Toronto to conduct these
geophysical surveys through the implementation of its proprietary,
award-winning Titan system. Quantec is a world renowned geophysical
group and the Titan system has been demonstrated to detect
electromagnetic conductors to depths in excess of 1,500 meters. The
Titan system was selected in light of the depth of Ivanhoe Mines Ltd.'s
(TSX:IVN)(NYSE:IVN)(ASX:IVN) ("Ivanhoe") Hugo Dummett Deposit and the
recognition that Entree's Zones I-III, Bayan Ovoo and Ulziit Uul
prospects have potential to host deep mineralized systems.

Entree plans to spend approximately US$3.0 million at Lookout Hill on
exploration of its Zones I-III and Bayan Ovoo copper-gold targets and on
reconnaissance of the approximately 140,000 hectares of ground that lies
outside the Project Property. A budget of approximately US$900,000 has
been proposed for the evaluation of the Company's Ulziit Uul property.
Ulziit Uul comprises approximately 6,900 hectares and lies immediately
east of and along strike from Ivanhoe's Kharmagtai porphyry copper-gold
system.

Exploration in Mongolia is under the supervision of Robert Cann, P.Geo.,
Entree's Exploration Manager and a qualified person as defined by
National Instrument 43-101. Mr. Cann is responsible for the preparation
of technical information in the Company's news releases. All rock
samples are prepared and analyzed by SGS Mongolia LLC of Ulaanbaatar,
Mongolia. Randomly selected pulps and all soil samples are submitted to
Acme Analytical Laboratories Ltd. of Vancouver, British Columbia for
check assaying and analytical work.

ABOUT ENTREE GOLD INC.

Entree Gold Inc. (www.entreegold.com) is an exploration stage junior
resource company engaged in the exploration of gold and copper
prospects. The Company is a large landholder in Mongolia's south Gobi
Desert, near the Chinese border. Entree maintains 100% royalty-free
interest in the 179,590 hectare Lookout Hill (Shivee Tolgoi) property
which completely surrounds Ivanhoe Mines Ltd.'s (Ivanhoe's) 8,500
hectare Turquoise Hill (Oyu Tolgoi) holdings. Ivanhoe has an earn-in
agreement with Entree whereby Ivanhoe can earn an interest in an area
covering approximately 22% (approximately 40,000 hectares) of Entree's
Lookout Hill property. Ivanhoe commenced drilling on the potential
northerly extension of the Hugo Dummett Deposit onto Lookout Hill in
February 2005. The Company is a Tier 1 listed company with its shares
trading on the TSX Venture Exchange under the symbol "ETG".

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.
Forward-looking statements in this news release include those concerning
the Company's belief that identifiable drill targets may be found and
that its budget totals US$3.9 million for exploration.

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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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Primoris Group
    Investor Relations
    (866) 368-7330
    ETG@primorisgroup.com
    www.entreegold.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.