Mongolian Resource Play

[Ed Monton]

Entree Gold Inc.: Ivanhoe Mines Commences Drilling of
Shallow IP Target at Copper Flats, Mongolia

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 25, 2005) - Entree Gold
Inc. (TSX VENTURE:ETG) ("Entree" or the "Company") announces that
Ivanhoe Mines Ltd. (TSX:IVN)(NYSE:IVN)(ASX:IVN) ("Ivanhoe") has
commenced drilling of a secondary, relatively shallow Induced
Polarization ("IP") target in the Copper Flats area of Entree's 100%
owned Lookout Hill property, Mongolia. The target is located within the
"Project Property" as defined in the October 2004 Equity Participation
and Earn-in Agreement ("Earn-In Agreement") between Entree and Ivanhoe.

The shallow IP target is located approximately two kilometers west of
the deeper IP target that defines the potential northward projection of
the Hugo Dummett Deposit. Drilling of the potential extension of the
Hugo Dummett Deposit onto Lookout Hill will not commence until
larger-capacity drills become available. Ivanhoe is currently drilling
systematic northward step-outs along the Hugo Dummett Deposit
approximately 150 meters south of the Ivanhoe - Entree property boundary.

"Large porphyry deposits often host satellite zones of mineralization
that could contain significant economic concentrations of
mineralization," said Greg Crowe, Entree's President and CEO. "The
selection of this secondary IP target as Ivanhoe's first drill test of
the Copper Flats area is due principally to the current availability of
smaller-capacity drills. The results of this drill program will have no
impact on the along-strike potential of the Hugo Dummett Deposit itself."

Since November 2004, Ivanhoe has been conducting a deep-probing IP
geophysical survey over Entree's Copper Flats area. As reported in
Ivanhoe's news release of December 6, 2004, this work has outlined a
four kilometer extension to the Hugo Dummett IP signature onto Entree's
Lookout Hill property. In this preliminary survey, several other
sizeable chargeability anomalies were also identified. Of particular
note was a more than three kilometer long, north-northeast trending, and
relatively shallow IP anomaly located approximately two kilometers west
of the northward projection of the Hugo Dummett Deposit. Follow-up
detailed IP section work, conducted since mid-December 2004, has better
defined these chargeability anomalies to depth and along strike. The
initial drill hole, which has been collared on the eastern side of this
western anomaly less than 100 meters north of the joint Ivanhoe - Entree
property boundary, will test this IP target to a vertical depth of
approximately 750 meters.

Under the Earn-In Agreement, Ivanhoe has the right to earn an interest
in approximately 22% (40,000 hectares) of Entree's Lookout Hill
property, Mongolia. Ivanhoe must spend a minimum of US$3 million in
order to secure surface-rights to the "Project Property" and must spend
a minimum of US$20 million in order to earn a 51% interest in the
Project Property. Ivanhoe can acquire up to an 80% interest in
mineralization below a depth of 560 metres by spending a total US$35
million. Thereafter, Entree has the right to require Ivanhoe to fund its
share of subsequent joint venture costs through to production, to be
recovered from production cash flow.

Mr. Crowe noted that Entree is well financed, with approximately CDN$7
million in its treasury, allowing it to explore the remaining 78% of its
Lookout Hill property, including the Zone I/II, Zone III and Bayan Ovoo
areas. Exploration of its wholly owned Ulziit Uul property, located in
the Kharmagtai area approximately 100 kilometers to the north of Lookout
Hill, will also be undertaken.

Robert Cann, Entree's Exploration Manager, a qualified person as defined
by National Instrument 43-101, supervised the preparation of the
information in this release.

ABOUT ENTREE GOLD INC.

Entree Gold Inc. (www.entreegold.com) is an exploration stage junior
resource company engaged in the exploration of gold and copper
prospects. The Company is a large landholder in Mongolia's south Gobi
Desert, near the Chinese border. Entree maintains 100% royalty-free
ownership in the 179,590 hectare Lookout Hill (Shivee Tolgoi) property
which completely surrounds Ivanhoe Mines' 8,500 hectare Turquoise Hill
(Oyu Tolgoi) holdings. Entree has an earn-in agreement with Ivanhoe
Mines covering approximately 22% (approximately 40,000 hectares) of
Lookout Hill. The Company trades on the TSX Venture Exchange under the
symbol "ETG".

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. 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.
Forward-looking statements in this news release include those concerning
the Company's belief that the drilling program of Ivanhoe on the
Company's property may discover a host satellite zone of Oyu Tolgoi
porphyry related mineralization.

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.

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FOR FURTHER INFORMATION PLEASE CONTACT:
Primoris Group
Kelly McCauley
[phone]
Email: [e-mail]
Website: www.entreegold.com
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.