Entree Gold Interests Included in Oyu Tolgoi Investment Agreement

VANCOUVER, Oct. 16 /PRNewswire-FirstCall/ - Entree Gold Inc. (TSX:ETG; NYSE
Amex:EGI; Frankfurt:EKA - "Entree" or the "Company") has reviewed the
Investment Agreement that was signed between Ivanhoe Mines Ltd. (TSX: IVN;
NYSE: IVN; NASDAQ: IVN - "Ivanhoe Mines"), its subsidiary, Ivanhoe Mines
Mongolia Inc. LLC ("IMMI"), our largest shareholder Rio Tinto (NYSE: RTP; LSE:
RIO.L; ASX: RIO.AX) and the Mongolian government on October 06, 2009 and filed
October 14, 2009 on SEDAR (www.sedar.com).
Several key issues pertaining to the Investment Agreement have specific and
beneficial impacts for Entree and its shareholders:


- This Investment Agreement provides long term stability for the Oyu
Tolgoi project and enables the companies involved to operate within
parameters that have been approved by the government of Mongolia

- This agreement paves the way for finalizing feasibility, development
and mining studies of the many Oyu Tolgoi deposits, including
Entree's Hugo North Extension and Heruga deposits

- Greater certainty is afforded to all stakeholders, with the agreement
providing fiscal stability and reliable access to water, power,
transportation and labour throughout the term

- The Entree-Ivanhoe Mines exploration licences (Shivee Tolgoi and
Javhlant) which are subject to the joint venture are contained within
the Contract Area covered by the Investment Agreement

- The conversion of the joint venture licences from mineral exploration
licences to mining licences is a condition precedent to the
Investment Agreement


The Investment Agreement has an initial term of 30 years with the option to
renew for an additional 20 years. Ivanhoe Mines is currently working on an
updated Integrated Development Plan which will expand upon the original plan
issued in 2005 and further clarify the next phases of development and eventual
mining that is anticipated to begin in 2013. Current resources are expected to
support open-pit and underground mining for at least 60 years and potential
exists to expand the available resources, particularly on the Lookout Hill
property which includes the joint venture ground.
With the inclusion of the Mongolian Government as a partner and Rio Tinto's
recent endorsement of the project through the advanced settlement of the
Tranche 2 private placement financing, strong support in the continued long
term success of the project is conveyed. These parties have acknowledged the
projected mine life could be as much as 100 years and have a strong commitment
to the ongoing success of this project and all have a vested interest in the
future benefits of this outstanding opportunity.
By successfully converting Entree's exploration licences to mining licences,
exploration on this ground will no longer be controlled by the date of
exploration licence expiration and the risk of licence forfeiture is removed.
Mining licences have a 30 year term with two renewals of 20 years each
possible. This allows the diligent and systematic exploration on these
licences for new deposits to continue. Under the Entree-Ivanhoe Mines joint
venture, Entree retains either a 20% or 30% carried interest, dependent on the
depth of mineralization.
The Investment Agreement has laid the foundation for the advancement of these
rich deposits and has given assurance to the continued success of this project
for its stakeholders: the people of Mongolia and the investors that have
supported Ivanhoe Mines, Rio Tinto and Entree Gold.
Entree will continue to review and evaluate the implications of the Investment
Agreement with respect to its Lookout Hill property and provide updates
whenever possible.

ABOUT ENTREE GOLD INC.

Entree Gold Inc. is a Canadian mineral exploration company focused on the
worldwide exploration and development of gold and copper prospects. The
Company flagship property is in Mongolia, where it holds three exploration
licenses comprising the 179,590 hectare Lookout Hill property. Lookout Hill
completely surrounds the 8,500-hectare Oyu Tolgoi project of Ivanhoe Mines,
and hosts the Hugo North Extension of the Hugo Dummett copper-gold deposit and
the Heruga copper-gold-molybdenum deposit.
The Company continues to explore its large landholdings in Mongolia, including
the coal discovery Nomkhon Bohr. Entree is also evaluating new opportunities
throughout the region and elsewhere in Asia. Entree is exploring the Huaixi
copper project in Zhejiang Province in China, under the terms of an agreement
with the # 11 Geological Brigade.
In North America, the Company is exploring for porphyry-related copper systems
in Arizona and New Mexico under agreements with Empirical Discovery LLC, in
Nevada through option agreements with HoneyBadger Exploration Inc. and Bronco
Creek Exploration Inc. and in British Columbia through an agreement with Taiga
Consultants Ltd.
The Company is also seeking additional opportunities to utilize its expertise
in exploring for deep and/or concealed ore deposits. With a treasury in excess
of C$40 million, the Company is well funded for future activities.
Ivanhoe Mines and Rio Tinto are major shareholders of Entree, holding
approximately 15% and 16% of issued and outstanding shares respectively.

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. Such statements include those relating to the
development of the Oyu Tolgoi project and the conversion of the Shivee Tolgoi
and Javlant exploration licence to mining licences. 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.
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.

SOURCE:Entrée Gold Inc.

Monica Hamm, Manager, Investor Relations, Entree Gold Inc., Tel: (604)
687-4777, Toll Free: (866) 368-7330, E-mail: mhamm@entreegold.com; Peter
Oates, Corporate Communications, Entree Gold Inc., Tel: (604) 687-4777, Toll
Free: (866) 368-7330, E-mail: poates@entreegold.com