Erdene Gold Inc.
TSX : ERD

Erdene Gold Inc.

March 11, 2008 13:04 ET

Erdene Extends Mineralized Zones at the Zuun Mod Molybdenum Deposit

Step-out drilling returns 268m of 0.064% Mo including 66m of 0.103% Mo

HALIFAX, NOVA SCOTIA--(Marketwire - March 11, 2008) - Erdene Gold Inc. (TSX:ERD) announced today that final analytical results of 2007 resource delineation drilling have confirmed the continuation of wide molybdenum intercepts significantly expanding both the Racetrack North ("RTN") and Racetrack South ("RTS") zones. The RTN Zone has been extended 250 metres to the east and 300 metres south. The RTS Zone has been extended 150 metres to the west where it remains open under andesite cover. Maps and sections of the Zuun Mod molybdenum deposit are posted on the Erdene website: www.erdene.com.

"These results, which include the best intersection to date at Zuun Mod and confirm continuity of thick sequences of molybdenum and copper mineralization towards the centre of the Zuun Mod complex, will have a substantial impact on the resource estimate now underway, and also demonstrate the tremendous potential Zuun Mod holds for future expansion and new discovery." said Peter Akerley, President and C.E.O. "As molydenum demand continues to increase, driven by China's growth and increased usage in the energy sector, amidst a tightening supply environment, it is more evident that strong molybdenum prices can be maintained for the long term and the development of world class molybdenum deposits will be required."

Racetrack North (RTN) Zone

The RTN Zone has been expanded significantly and now extends over an area 1.2 kilometres in length and up to 700 metres (arcuate zone adjacent to ring dyke) in width. New results are reported below for a number of holes which demonstrate that wide molybdenum intercepts extend the RTN Zone to the east (ZMD-77) and to the south (ZMD-46 (deepened), 66, 75 and 79). The southern four holes combined with ZMD-29 (198m of 0.05% Mo including 80m of 0.07% Mo) represent the southern portion of RTN and alone represent an arcuate zone 700 metres by 200 metres that comes to within 18 metres of surface. Results include 328 metres of 0.058% Mo including 66 metres of 0.103% Mo from hole ZMD-79 that ended in 12 metres of 0.243% Mo. The RTN zone remains open locally in all directions. Highlights of the new RTN holes are listed in Table 1 below.



Table 1 - Highlights of New RTN Drill Results
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Hole # From To Interval (m) Re g/t Cu (%) Mo (%)
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ZMD-46 32 292 260 n/a 0.054 0.044
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Including 182 282 100 n/a 0.061 0.060
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Including 228 242 14 0.49 0.092 0.108
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ZMD-66 78 296 218 0.24 0.067 0.044
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Including 136 172 36 0.27 0.051 0.063
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ZMD-75 208 274 66 n/a 0.055 0.041
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ZMD-77 78 216 138 n/a 0.036 0.041
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Including 82 118 36 n/a 0.038 0.065
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Including 100 118 18 n/a 0.045 0.101
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ZMD-79 22 350 328 n/a 0.067 0.058
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Including 82 350 268 n/a 0.070 0.064
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Including 212 278 66 n/a 0.101 0.103
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Including 338 350 12 n/a 0.097 0.243
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Racetrack South (RTS) Zone

The most significant result from the RTS drilling is that three holes (ZMD-72, 73 and 74) confirm continuity of the mineralized zone to the west, plunging under the andesite cover. The RTS zone, which comes within 24 metres of surface, remains intensely molybdenum-mineralized with a substantial increase in copper grades and remains open to the west, towards the center of the Zuun Mod Porphyry Complex. One kilometer west of ZMD-72 the altered intrusive is again exposed from under the andesite cover and exhibits a highly anomalous molybdenum and copper geochemical signature elongated north-south over the western contact for over 2 kilometres. This geochemical anomaly is one of numerous centres of molybdenum and copper mineralization traced over the 12 kilometre circumference of the Zuun Mod Porphyry Complex during the 2007 surface exploration program.

Hole ZMD-72, located in the west central portion of the RTS Zone, returned 138 metres of 0.06% Mo with 0.103% Cu. Copper grades up to 0.23% over 12 metres were reported in the lower 50 metres of the hole. Two additional holes, located on the eastern side of the RTS Zone (ZMD-64 and 65) extend the zone of mineralization towards the Ring Dyke and to the southeast. Results of these RTS holes are listed in Table 2 below.



Table 2 - Highlights of New RTS Drill Results
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Hole # From To Interval (m) Re g/t Cu (%) Mo (%)
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ZMD-64 104 140 36 0.19 0.020 0.041
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And 158 298 140 0.14 0.047 0.041
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ZMD-65 128 276 148 0.17 0.052 0.046
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Including 174 200 26 0.24 0.062 0.064
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And 290 332 42 0.20 0.056 0.044
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ZMD-72 212 350 138 n/a 0.103 0.060
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Including 234 260 26 n/a 0.112 0.104
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ZMD-73 192 350 158 n/a 0.091 0.046
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Including 192 224 32 n/a 0.069 0.070
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ZMD-74 218 350 132 n/a 0.108 0.047
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Including 218 246 28 n/a 0.083 0.060
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Including 270 300 30 n/a 0.117 0.065
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Resource Estimate

Erdene has delivered the final assay data set to Minarco-MineConsult, a member of the Runge Group, of Sydney Australia, to carry out a NI 43-101 compliant independent resource estimate for the Zuun Mod molybdenum project. 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 within the next 60 days.

About Erdene Gold Inc.

Erdene is a diversified resource development company with exploration properties focused on high-growth commodities and near-production assets. In addition to Zuun Mod, the Company has a strong portfolio of properties in Mongolia focused on base and precious metals and energy (coal). Erdene has a strategic alliance with Xstrata Coal to develop its coal properties in Mongolia. In eastern Canada, Erdene and its joint venture partner, Xstrata Coal are carrying out a $15M pre-feasibility study on the Donkin Coal project. Erdene has near-term cash flow opportunities in its North American assets, which includes agreements with J.M. Huber Corporation and Ready Mix USA as operators and developers in the southeast U.S. for its kaolin clay and aggregate projects, respectively. Erdene has a cash position of approximately $8.8 million with 70,530,877 common shares issued and outstanding and a fully diluted share position of 79,737,352 common shares.

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 at ALS Chemex Laboratory in British Columbia and Intertek in China. In addition to internal checks by ALS Chemex and Intertek, 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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