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Entree Gold Provides Exploration Update

Friday July 7, 4:30 pm ET

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Jul 7, 2006 -- Entree Gold Inc. (TSX:ETG.TO - News)(AMEX:EGI - News)(FWB: EKA) ("Entree" or the "Company") reports on ongoing exploration on its 100% owned Lookout Hill and Manlai properties in Mongolia. The current programs commenced in late April 2006.
Lookout Hill

Entree's exploration on its 100% owned ground at Lookout Hill has consisted of geophysics, prospecting, geological mapping and diamond drilling. A total of 1,400 metres of diamond drilling has now tested one of several deep induced polarization ("IP") targets, along strike to the south of Zones I/II and III and 10.5 kilometres to the west of Ivanhoe Mines Ltd.'s (TSX:IVN.TO - News)(NYSE:IVN - News)(NYSE:IVN - News) ("Ivanhoe") Oyu Tolgoi mineralized system. To date, drilling has intersected probable Devonian stratigraphy with local quartz veining and disseminated sulphides. Copper and gold mineralization at Oyu Tolgoi is hosted within Devonian age volcaniclastics and sediments.

An additional 4,000 metres of diamond drilling is planned to test the potential of this structural system to host porphyry-related copper-gold mineralization. A second deep drill, scheduled to arrive on site in early August, will continue to test geophysical and geochemical targets. A reverse circulation drill is also scheduled to arrive in early August to test geophysical, geochemical and geological targets at the Ring Dyke and Zone III epithermal style gold targets.

Manlai

Exploration to date at Manlai, located 120 km north of Lookout Hill, has consisted of IP, soil geochemistry, geological mapping, mechanical trenching and 500 metres of diamond drilling. Soil, drilling and trenching results are pending. IP surveys defined a significant chargeability anomaly extending south from Targets 3 and 4 (see Entree's news release of January 11, 2006). An additional 2,000 metres of drilling is planned, to test a number of geophysical, geochemical and geological targets.

Entree/Ivanhoe Lookout Hill Earn-in Area

Ivanhoe currently has three rigs continuing infill and condemnation drilling on the optioned portion of the Lookout Hill project. Infill drilling is being done to support the upgrading of the inferred resource initially estimated on Entree's Copper Flats and Ivanhoe's Hugo North areas (see Entree's and Ivanhoe's news releases of February 1, 2006). The resulting new resources estimates will be used in the development of the Oyu Tolgoi project mine plan. Condemnation drilling is necessary to rule out the presence of near-surface, economic-grade mineralization in areas for which infrastructure is planned.

Mongolian Political Developments

Entree continues to monitor developments in Mongolia relating to proposed amendments to the national mineral laws. At this time, the Company has no plan to suspend in-country exploration at Lookout Hill and Manlai.

Arizona

Entree plans to commence surface geophysical surveys (magnetics and deep penetrating induced polarization) on its Sol Dos property located in southeast Arizona in the third quarter 2006. Diamond drilling is expected to commence in the final quarter of 2006, once drill targets have been identified.

Potential Acquisitions

Entree continues to evaluate potential acquisitions, worldwide, with a focus on promising copper and gold projects.

Quality Control and Assurance

Exploration programs are under the supervision of Robert Cann, P.Geo., Entree's Vice-President, Exploration and a qualified person as defined by National Instrument 43-101. Mr. Cann is responsible for the preparation of technical information in the Company's news releases.

ABOUT ENTREE GOLD INC.

Entree Gold Inc. (www.entreegold.com) is a Canadian mineral exploration company focused on gold and copper prospects. The Company is a large landholder in Mongolia and has recently acquired an early-stage copper porphyry project in Arizona, USA.

Entree holds a 100% interest in mineral concessions comprising the 179,590 hectare Lookout Hill (Shivee Tolgoi) property, which completely surrounds the 8,500 hectare, Turquoise Hill (Oyu Tolgoi) project of Ivanhoe Mines Inc.

Under an "Earn-In Agreement" announced in October 2004, Ivanhoe has the right to earn an interest in approximately 40,000 hectares of Entree's Lookout Hill property. Details of the Earn-In Agreement are available on Entree's website, at www.entreegold.com, and on SEDAR, at www.sedar.com. Drilling conducted by Ivanhoe as part of the Earn-In Agreement has confirmed the extension of the Hugo North Deposit onto the Copper Flats area of Lookout Hill. Initial estimates indicate that Copper Flats hosts an inferred resource of 190,160,000 tonnes (calculated using a 0.6% copper equivalent cut-off), averaging 1.91% copper equivalent, containing over 6.5 billion pounds of copper and 3.2 million ounces of gold (see Entree's news release of February 1, 2006).

Significant investments by Rio Tinto plc and Ivanhoe have contributed to Entree's treasury, which currently exceeds CDN$21 million. Entree plans to use these funds to explore its wholly-owned projects in Mongolia and Arizona, and acquire and explore new projects globally.

Entree is listed for trading on the TSX under the symbol "ETG", on the AMEX under the symbol "EGI" and on the Frankfurt Stock Exchange under the symbol "EKA".

http://biz.yahoo.com/iw/060707/0142234.html