🕐24.10.12 - 18:54 Uhr

ENTREĢE GOLD: PRELIMINARY ECONOMIC ASSESSMENT OF ENTREE GOLDS ANN MASON GENERAT
ES $1.11 BILLION NPV OVER 24 YEAR INITIAL MINE LIFE



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Breaking News Release

Preliminary Economic Assessment of Entree Golds Ann Mason Generates $1.11 Billion NPV Over 24 Year Initial Mine Life

VANCOUVER, BRITISH COLUMBIA--(Oct. 24, 2012) - Entr�e Gold Inc. (TSX:ETG)(NYSE MKT:EGI)(FRANKFURT:EKA) ("Entr�e" or the "Company") today announced that it has received the results of a positive Preliminary Economic Assessment ("PEA") for its 100%-owned Ann Mason copper-molybdenum porphyry deposit in Nevada ("Ann Mason" or the "Project"). The Project is expected to yield a base case ("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 ("Spot Case"), the pre-tax NPV7.5 and IRR increase to $2.54 billion and 22.9%, respectively.

The PEA envisions an open pit and conventional sulphide flotation milling operation with an initial 24 year mine life. Over the life of mine ("LOM"), the Project 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.

PEA Highlights

Base Case, pre-tax NPV7.5 of $1.11 billion, IRR of 14.8%, and payback of 5.6 years, based on long term metal prices of $3.00/lb copper, $13.50/lb molybdenum, $1,200/oz gold and $22/oz silver (Table 1 below).

Spot Case, pre-tax NPV7.5 increases to $2.54 billion, with an IRR of 22.9%, and payback of 3.8 years, based on October 15, 2012 spot metal prices of $3.71/lb copper, $10.43/lb molybdenum, $1,736/oz gold and $33.22 /oz silver (Table 1 below).

Development capital costs of approximately $1.28 billion, including contingency.

Average cash costs (net of by-product sales) of $1.46/lb copper (see Non-U.S. GAAP Performance Measurement below).

Net annual undiscounted cash flow over the LOM is approximately $227 million per year.

100,000 tonnes per day ("tpd") conventional open pit mine utilizing a conventional sulphide flotation mill with a 24 year mine life.

LOM production of 5.14 billion pounds of copper and 36.4 million pounds of molybdenum.

LOM strip ratio of 2.16:1 waste to mineralized material.

LOM average copper recovery of 93.5%.

Clean copper concentrate grading 30%.

The Base Case discounted cash flows in the PEA are pre-tax, and are prepared in compliance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators. The PEA was completed by AGP Mining Consultants ("AGP"), an independent Canadian-based engineering firm. Unless otherwise noted, a reference to "$" in this news release is to United States currency. Due to rounding, some of the totals in the tables in this news release may not sum exactly. The following table summarizes the main economic outputs of the discounted cash flow.

Table 1. Summary of Ann Mason PEA Key Financial Outputs � � � � Low CaseBase CaseHigh CaseSpot Case � � � � � � � � � (Oct 15/2012)Copper $ /lb $ 2.75 � $ 3.00 � $ 3.25 � $ 3.71 � Molybdenum $ /lb $ 13.50 � $ 13.50 � $ 13.50 � $ 10.43 � Silver $ /oz $ 15 � $ 22 � $ 26 � $ 33.22 � Gold $ /oz $ 1,100 � $ 1,200 � $ 1,300 � $ 1,736 � NPV (5%) $ Million $ 1,223 � $ 1,918 � $ 2,602 � $ 3,846 � NPV (7.5%) $ Million $ 589 � $ 1,106 � $ 1,614 � $ 2,538 � NPV (10%) $ Million $ 182 � $ 576 � $ 964 � $ 1,669 � IRR � � � 11.6 % � 14.8 % � 17.8 % � 22.9 % Payback Period � Years � 7.1 � � 5.6 � � 4.7 � � 3.8 � Metal Revenue (after smelting, refining, roasting, payable) $ Million $ 14,200 � $ 15,600 � $ 17,000 � $ 19,500 �

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.

Greg Crowe, President and CEO commented, "This Preliminary Economic Assessment on Ann Mason is an important milestone in the evolution of Entr�e. The results clearly illustrate the potential of our 100% owned, large tonnage, copper-molybdenum porphyry deposit. The PEA will assist us in advancing the Project towards development, while giving us the flexibility to consider various options, including a strategic partnership on Ann Mason.

Importantly, Ann Mason is located within the low-risk, mining friendly state of Nevada, in a historic copper camp where there is strong local community support for mining. With resource nationalism on the rise, it is a real advantage to have an advanced property in Nevada, where clear guidelines and a fair process facilitate the timely development of mining projects.

Our next step will be to move towards Pre-Feasibility on Ann Mason. Future work will include additional drilling, particularly to the north and west, to potentially extend the mineralization within the current pit design and reduce the waste-to-mineralization strip ratio. The high percentage of indicated resources in the current PEA pit could reduce the amount of drilling required to proceed to Pre-Feasibility. In addition, we have a land package that covers just over eight thousand hectares, and have already identified several other highly prospective exploration targets on the Ann Mason Project property that warrant additional work, including surface copper oxide showings and untested geophysical anomalies. The deposit remains open in several directions, and we are finalizing a resource estimate for the Blue Hill oxide-copper target, 1.5 kilometres northwest of Ann Mason."

Mining Operation

Open pit mine design and scheduling at Ann Mason has provided the framework for a mining operation that will be developed through five phases over a 24 year period, at a mill feed rate of 100,000 tpd. Mining will use conventional rotary drilling, blasting and loading with large cable shovels and 360-tonne trucks. The open pit mine is estimated to contain 562.2 million tonnes ("Mt") of indicated material, or 67% of the total plant feed. An additional 274.2 Mt of inferred material will also be directed to the mill or 33% of the total plant feed. The LOM waste to mineralization strip ratio is 2.16:1. Pit slopes are variable depending on the geotechnical parameters of the rock types and range from 50 degrees in the overlying volcanic rocks, to 37 degrees in the porphyry mineralization. The high ratio of indicated to inferred material in the process feed emphasizes the high quality of the resource base used for the PEA and limits the amount of additional drilling required prior to proceeding to a Pre-Feasibility level. The LOM mill feed grade averages 0.31% copper, 0.004% molybdenum, 0.03 grams per tonne ("g/t") gold and 0.58 g/t silver.

Processing and Metallurgy

The proposed process plant is sized at 100,000 tpd of mill feed and will consist of conventional unit operations including gyratory crushing, SAG and ball mill grinding, rougher flotation, concentrate regrinding, cleaner flotation, concentrate filtration, and tailings thickening.

Metallurgical testing has been completed on samples of drill core at Metcon Research in Tucson, Arizona. The work was done on four separate composites representing the two main mineralogical domains, and consisted of mineralogical characterisation, grindability testing, and batch and locked cycle flotation testing. Preliminary grindability work has established that the feed material is of moderate hardness, with a Bond Ball Work Index of 15.7 kilowatt-hours per tonne and an Abrasion Index of 0.283. Locked cycle flotation testing has demonstrated that a simple flotation flow sheet with moderate grinds, two stages of cleaning, and low reagent additions is able to generate a saleable copper concentrate, with no penalty elements identified. Payable by-product levels of gold and silver are present in the copper concentrates.

Metallurgical predictions of 93.5% copper recovery to a concentrate grading 30% copper are based on average values (last four cycles) from locked cycle test data on the main zone composites, as summarized in Table 2 below.

Table 2. Summary of Ann Mason PEA Metallurgical Results � � Domains Concentrate Grade Recovery (%)Cu (%) Mo (%) Ag (g/t) Au (g/t) Cu Mo Ag Au Chalcopyrite-Bornite 35.8



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