Entree Gold Reports on Third Quarter 2012

Entree Gold Reports on Third Quarter 2012 
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/14/12 -- Entree
Gold Inc. (TSX:ETG)(NYSE MKT:EGI)(NYSE
Amex:EGI)(FRANKFURT:EKA)("Entree" or the "Company") has today filed
its interim operational and financial results for the quarter ended
September 30, 2012.   
Greg Crowe, President and CEO commented, "During this most recently
completed quarter, we focused on preparing a Preliminary Economic
Assessment for our Ann Mason deposit in Nevada and completing our
Shivee West work program in Mongolia. We reached a major milestone
when we announced the results of our first economic valuation of Ann
Mason subsequent to quarter end, on October 24, 2012. In Mongolia, a
power purchase agreement between Oyu Tolgoi LLC ("OTLLC") and the
Inner Mongolia Power Corporation has been completed and commencement
of phase 1 commercial production at Oyu Tolgoi is expected in the
coming months."  
Highlights for the quarter ended September 30, 2012 and beyond
include:  
Mongolia  
Lookout Hill Joint Venture  
Development of the Oyu Tolgoi mining complex continues at a rapid
pace, with Turquoise Hill Resources announcing on November 5, 2012,
that OTLLC has signed a binding power purchase agreement with the
Inner Mongolia Power Corporation. Phase 1 construction is essentially
complete and Oyu Tolgoi in now on the verge of commercial production.
First development ore from the Southern Oyu open pits has been
delivered to the crusher, and commissioning of the plant is in
progress. As this project advances, the Company looks forward to
development production from the Lift 1 underground operations on the
Entree-OTLLC joint venture ground expected as early as 2015.  
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. Trenching in 2012 has confirmed and expanded
the mineralization discovered last year by reverse circulation ("RC")
drilling, returning up to 81.4 grams/tonne gold over 3 metres within
a broader mineralized zone approximately 400 metres long by 130
me
tres wide. The Argo Zone mineralization is near surface and
warrants further exploration.  
USA  
Ann Mason, Nevada  
Entree's second major asset is the Ann Mason Project in the Yerington
district of Nevada. The project is well located close to major
infrastructure and in a low-risk, mining friendly jurisdiction. 
On October 24, 2012, the Company announced the results of a positive
Preliminary Economic Assessment ("PEA") for its 100%-owned Ann Mason
copper-molybdenum porphyry deposit in Nevada. Ann Mason is expected
to yield a base case, pre-tax, 7.5% net present value ("NPV7.5") of
$1.11 billion and an internal rate of return ("IRR") of 14.8%, using
assumed copper, molybdenum, gold and silver prices of $3.00/lb,
$13.50/lb, $1,200/oz and $22/oz, respectively. Using October 15, 2012
spot commodity prices of $3.71/lb copper, $10.43/lb molybdenum,
$1,736/oz gold and $33.22/oz silver, the pre-tax NPV7.5 and IRR
increase to $2.54 billion and 22.9%, respectively. Preliminary
metallurgical test results from Ann Mason are very encouraging and
indicate potential for a high quality copper concentrate with no
deleterious elements.  
The PEA envisions an open pit and conventional sulphide flotation
milling operation with an initial 24 year mine life. Over the life of
mine, Ann Mason is estimated to produce an annual average of 214
million pounds of copper at total cash costs per pound sold, net of
by-product sales, of $1.46 per pound copper (see "non-U.S. GAAP
performance measures" below). The PEA is preliminary in nature and
includes inferred mineral resources that are considered too
speculative geologically to have the economic considerations applied
to them that would enable them to be categorized as mineral reserves,
and there is no certainty that the PEA will be realized. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability.  
Entree reported the first resource estimate for the Blue Hill copper
deposit, located 1.5 kilometres northwest of the Ann Mason
copper-molybdenum porphyry deposit, on October 29, 2012. Combined
inferred oxide and mixed resource categories total 72.13 million
tonnes ("Mt") averaging 0.17% copper (at a 0.10% copper cut-off), or
277.5 million pounds of copper. The underlying inferred sulphide
resource is estimated to contain 49.86 Mt averaging 0.23% copper at a
0.15% copper cut-off.  
Preliminary metallurgy suggests the oxide and mixed copper
mineralization at Blue Hill is amenable to low-cost, heap leach and
solvent extraction/electrowinning processing. Average copper recovery
in the oxide mineralization in column leach testing is 86%, while the
mixed material returned 83% recovery (refer to News Release dated
July 26, 2012). The underlying sulphide-copper mineralization has
only been tested with ten widely spaced holes and remains open in
most directions. 
Other high-priority targets on the Ann Mason Project require further
exploration and development. In the Blackjack area, induced
polarization and surface copper oxide exploration targets have been
identified and provide new targets for drill testing. The area
between Ann Mason and Blue Hill also remains highly prospective and
underexplored.  
Corporate Summary  
For the three months ended September 30, 2012, net loss decreased to
$1,899,158 compared to a net loss of $3,506,238 in the three months
ended September 30, 2011. During the three months ended September 30,
2012, Entree incurred lower operating expenditures, primarily from
decreased exploration expenses on the Ann Mason Project, relative to
the three months ended September 30, 2011. In addition to these
decreased operating expenditures, the Company recorded a deferred
income tax recovery in the period and decreased losses from equity
investee resulting from a decreased loss from the Entree-OTLLC joint
venture.   
SELECTED FINANCIAL INFORMATION 


 
----------------------------------------------------------------------------
                                             As at September As at September
                                                    30, 2012        30, 2011
                                                       (US$)           (US$)
----------------------------------------------------------------------------
Working capital(1)                                 6,735,338      10,321,520
Total assets                                      67,327,578      64,897,779
Total long term liabilities                       12,939,869      13,727,938
----------------------------------------------------------------------------
(1)  Working Capital is defined as Current Assets less Current Liabilities  

 
The Company's Interim Financial Statements and accompanying
management's discussion and analysis for the quarter ended September
30, 2012 and its Annual Information Form for the year ended December
31, 2011 are available on the Company website, on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov. Unless otherwise noted,
all figures in this news release are reported in United States
dollars.   
"Cash Costs" is a non-U.S. GAAP Performance Measurement. This
performance measure is included because this statistic is widely
accepted as the standard of reporting cash costs of production in
North America.
 This performance measure does not have a meaning
within U.S. GAAP and, therefore, amounts presented may not be
comparable to similar data presented by other mining companies. This
performance measure should not be considered in isolation as a
substitute for measures of performance in accordance with U.S. GAAP. 
QUALIFIED PERSON  
Robert Cann, P.Geo., Entree's Vice-President Exploration, and a
Qualified Person as defined by NI 43-101, has approved the technical
information in this news release.   
ABOUT ENTREE GOLD INC.  
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 world's
most favourable mining jurisdictions, Nevada. The Ann Mason Project
hosts the Ann Mason copper-molybdenum deposit as well as the Blue
Hill copper deposit within the rejuvenated Yerington copper camp.  
Rio Tinto and Turquoise Hill Resources (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 Resources, 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 estimation of mineral resources, the realization of mineral
resource estimates, commencement of future mineral production, costs
of production and capital expenditures, the availability of project
financing, potential size of a mineralized zone, potential expansion
of mineralization, the timing and results of future resource
estimates, potential type(s) of mining operation, amount or timing of
proposed production figures, potential metallurgical recoveries and
grades, plans for future exploration and/or development programs and
budgets, anticipated business activities, corporate strategies, uses
of funds and future financial performance. 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 size, grade and continuity of deposits and
resource and reserve estimates have been interpreted correctly from
exploration results; that the results of preliminary test work are
indicative of what the results of future test work will be; that the
prices of copper, gold, silver and molybdenum and foreign exchange
rates will remain relatively stable; the effects of general economic
conditions, including inflation; future actions by Rio Tinto,
Turquoise Hill Resources, joint venture partners and government
authorities including the Government of Mongolia; the availability of
capital; that applicable legislation, including legislation with
respect to taxation, will not materially change; 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; joint venture risks; actual results of
current exploration activities; changes in project parametres as
plans continue to be refined; inability to upgrade inferred mineral
resources to indicated or measured mineral resources; inability to
convert mineral resources to mineral reserves; conclusions of
economic evaluations; future prices of copper, gold, silver 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, permits or
licences or financing or in the completion of development or
construction activities; environmental risks; title disputes;
limitations on insurance coverage; 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 and the Company's most recent
Management's Discussion and Analysis 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. 
Cautionary Note to U.S. Readers Concerning Estimates of Measured,
Indicated and Inferred Mineral Resources 
The terms "mineral resource", "measured mineral resource", "indicated
mineral resource" and "inferred mineral resource" are defined in and
required to be disclosed by NI 43-101; however, these terms are not
defined terms under the Securities Exchange Commission's Industry
Guide 7 and normally are not permitted to be used in reports and
registration statements filed with the SEC. Investors are cautioned
not to assume that all or any part of mineral deposits in these
categories will ever be converted into reserves. "Inferr
ed mineral
resources" have a great amount of uncertainty as to their existence,
and great uncertainty as to their economic and legal feasibility. It
cannot be assumed that all or any part of an inferred mineral
resource will ever be upgraded to a higher category. Under Canadian
rules, estimates of inferred mineral resources may not form the basis
of feasibility or pre-feasibility studies, except in rare cases.  
Accordingly, information contained in this news release containing
descriptions of our mineral deposits may not be comparable to similar
information made public by U.S. companies subject to the reporting
and disclosure requirements under the United States federal
securities laws and the rules and regulations thereunder.
Contacts:
Entree Gold Inc.
Mona Forster
Executive Vice President
604-687-4777 or Toll Free: 866-368-7330
604-687-4770 (FAX)
mforster@entreegold.com
www.entreegold.com
 
 
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