Entree Gold Provides Corporate Update

Entree Gold Provides Corporate Update 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/18/12 -- Entree
Gold Inc. (TSX:ETG)(NYSE MKT:EGI)(FRANKFURT:EKA) ("Entree" or the
"Company") wishes to comment on recent market activity.  
Greg Crowe, President and CEO stated, "We are very disappointed in
the recent decline in Entree's share price, and feel this does not
reflect the underlying value of either of our two main projects. We
are not aware of any material undisclosed information that may be
contributing to the market activity, and are attributing it largely
to the current political uncertainty in Mongolia." 
Despite recent assurances from the Mongolian Foreign Minister that
the government would not seek to re-open the Oyu Tolgoi Investment
Agreement, on October 15, 2012, Turquoise Hill Resources Ltd.
("Turquoise Hill") advised that the Mongolian Minister of Mines had
requested the parties renegotiate the landmark agreement. Rio Tinto,
Turquoise Hill and Oyu Tolgoi LLC have rejected the request, stating
that the Investment Agreement provides a stable legal framework and
is a legally-binding document.  
On October 9, 2012, Turquoise Hill provided an update which confirmed
that Phase 1 construction at Oyu Tolgoi is essentially complete, and
negotiations on a power purchase agreement with Chinese authorities
are actively progressing. First ore is expected to be processed
through the concentrator within six weeks of conclusion of the power
Greg Crowe commented, "Rio Tinto and Turquoise Hill Resources have
committed over $6 billion to developing the Oyu Tolgoi project, which
is transforming the Mongolian economy along with creating thousands
of skilled jobs for Mongolians. Turquoise Hill still anticipates
underground production at Oyu Tolgoi to commence in 2016. The joint
venture's Hugo North Extension deposit is a key component of the
first lift of that underground production. In the meantime, our
technical team is finalizing a Preliminary Economic Assessment
("PEA") for our 100% owned Ann Mason deposit in Nevada. When
released, these results will better quantify the scope and worth of
the project and provide a road map to further advance this major
The Company feels it is important at this time to reiterate its
project highlights: 
Lookout Hill Joint Venture  
Development of the Oyu Tolgoi mining complex continues at a rapid
pace, with Turquoise Hill announcing on October 9, 2012, that Phase 1
construction is essentially complete. First development ore has been
delivered to the crusher, marking yet another key milestone for the
project team and stakeholders. As this project advances, the Company
looks forward to production from the Lift 1 underground operations on
the Entree-Oyu Tolgoi LLC ("OTLLC") joint venture ground expected in
Entree's joint venture partner, OTLLC, continues to explore various
targets on the Entree-OTLLC joint venture ground. One diamond drill
is currently operating north of the Hugo North Extension deposit
along the OT Trend. 
Shivee West  
Entree has identified two gold zones, Zone III and the Argo Zone, on
its 100% owned ground. These zones have yielded assay results from
surface samples, trenching and drilling that indicate the presence of
near surface gold, warranting more exploration. The 2012 program has
been completed and the camp is closed for the winter; results from
the 2012 work are being assessed prior to proposing a program and
budget for 2013. 
Ann Mason, Nevada  
Entree's second major asset is the Ann Mason Project in the Yerington
district of Nevada. The Ann Mason Project includes the Ann Mason
copper-molybdenum deposit, the Blue Hill copper oxide target, and
several exploration stage targets, including Blackjack, Roulette and
Minnesota. The project is well located close to major infrastructure
and in a low-risk, mining friendly jurisdiction. 
Ann Mason hosts a major porphyry copper-molybdenum resource as
outlined in a news release dated March 27, 2012. The Company is
currently preparing a PEA, including updated, pit-constrained
resources for both Ann Mason and Blue Hill, which will provide a
guide to prioritise further work to advance the project development.
Preliminary Ann Mason metallurgy is extremely encouraging and
indicates potential for a high quality copper concentrate with no
deleterious elements.  
On the near-surface Blue Hill oxide target (3 kilometres northwest of
the Ann Mason deposit), copper oxide mineralization extends from
surface to a depth of up to 185 metres (average approximately 125
metres), over an area of 800 by 500 metres and remains open to the
northwest and southeast. Drilling of the underlying sulphide target
remains very widely spaced, but has identified a target area more
than one kilometre in width. The mineralized zone remains open in
most directions and the Company believes there is potential for
further expansion. Results from column leach testing of Blue Hill
material are extremely favourable and averaged 84.8% copper recovery
after a 91 day leach cycle.  
Other high-priority targets on the Ann Mason Project require further
exploration and development. In the Blackjack area, induced
polarization ("IP") and surface copper oxide exploration targets have
been identified and provide new targets for drill testing. The
Minnesota copper skarn target requires further drilling to test
deeper IP and magnetic anomalies. 
Robert Cann, P.Geo., Entree's Vice-President Exploration, a Qualified
Person as defined by NI 43-101, has approved this release.  
Entree Gold Inc. is a Canadian mineral exploration company balancing
opportunity and risk with key assets in Mongolia and Nevada. As a
joint venture partner with a carried interest on a portion of the Oyu
Tolgoi mining complex in Mongolia, Entree Gold has a unique
opportunity to participate in one of the world's largest copper-gold
projects managed by one of the premier mining companies - Rio Tinto.
Oyu Tolgoi, with its series of deposits containing copper, gold and
molybdenum, has been under exploration and development since the late
1990s. Phase 1 is on the verge of production, and Entree Gold could
see first development production from the joint venture ground as
early as 2015.  
In addition to being on the path to production in Mongolia, Entree
Gold has been advancing its Ann Mason Project in one of the most
favourable mining jurisdictions, Nevada. The Ann Mason Project hosts
a sizeable copper and molybdenum porphyry deposit within an emerging
copper camp. Entree Gold is preparing a PEA for the Ann Mason Deposit
to assess the economic viability of this asset.  
Rio Tinto and Turquoise Hill (formerly Ivanhoe Mines) are major
shareholders of Entree, holding approximately 13% and 11% of issued
and outstanding shares, respectively. Rio Tinto, through its majority
ownership of Turquoise Hill, beneficially owns 23.6% of Entree's
issued and outstanding shares. 
This News Release contains forward-looking statements and
forward-looking information (together, "forward-looking statements")
within the meaning of applicable securities laws and the United
States Private Securities Litigation Reform Act of 1995, with respect
to the timing of estimated future production, plans to prepare and
potential timing for release of an updated resource estimate and PEA
on the Ann Mason Project, plans for future exploration and/or
development programs and budgets, anticipated business activities,
corporate strategies and future financial performanc
e. In certain
cases, forward-looking statements can be identified by the use of
words such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates", or "does not anticipate" or "believes" or variations
of such words and phrases or statements that certain actions, events
or results "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved". While Entree has based these
forward-looking statements on its expectations about future events as
at the date that such statements were prepared, the statements are
not a guarantee of Entree's future performance and are subject to
risks, uncertainties, assumptions and other factors which could cause
actual results to differ materially from future results expressed or
implied by such forward-looking statements. 
Such factors and assumptions include, amongst others, that the prices
of copper, gold and molybdenum and foreign exchange rates will remain
relatively stable, the effects of general economic conditions, future
actions by Rio Tinto, OTLLC and government authorities including the
Government of Mongolia, uncertainties associated with legal
proceedings and negotiations and misjudgements in the course of
preparing forward-looking statements. In addition, there are also
known and unknown risk factors which may cause the actual results,
performances or achievements of Entree to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Such factors include,
among others, risks related to international operations, including
legal and political risk in Mongolia; recent global financial
conditions; actual results of current exploration activities;
conclusions of economic evaluations; changes in project parameters as
plans continue to be refined; future prices of copper, gold and
molybdenum; possible variations in ore reserves, grade recovery and
rates; failure of plant, equipment or processes to operate as
anticipated; accidents, labour disputes and other risks of the mining
industry; delays in obtaining government approvals or financing or in
the completion of development or construction activities, as well as
those factors described in the Company's Annual Information Form for
the financial year ended December 31, 2011, dated March 29, 2012
filed with the Canadian Securities Administrators and available at
www.sedar.com. Although the Company has attempted to identify
important factors that could cause actual actions, events or results
to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or
results not to be as anticipated, estimated or intended. There can be
no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers
should not place undue reliance on forward-looking statements. The
Company is under no obligation to update or alter any forward-looking
statements except as required under applicable securities laws.
Entree Gold Inc.
Mona Forster
Executive Vice President
604-687-4777 or Toll Free: 866-368-7330
604-687-4770 (FAX)
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