ENTRÉE GOLD TO ACQUIRE REMAINING INTEREST
IN BLACKJACK PROPERTY, NEVADA
Vancouver, B.C., May 9, 2011 ? Entrée Gold Inc. (TSX:ETG; NYSE AMEX:EGI; Frankfurt:EKA - "Entrée" or the "Company") has entered into an agreement with Honey Badger Exploration Inc. (TSX.V:TUF - ?Honey Badger?) to acquire Honey Badger?s 49% interest in the Blackjack property, Nevada. Entrée previously acquired a 51% interest in the property from Honey Badger pursuant to an Option Agreement dated July 20, 2009. Blackjack is directly adjacent to the Company?s 100% owned Ann Mason property. Under the purchase and sale agreement (the ?Agreement?), Entrée will pay US$650,000 and issue 550,000 common shares to Honey Badger for its 49% interest in the property.
The Blackjack property is comprised of 466 unpatented lode claims in the Yerington copper camp of Nevada. A total of 226 of these claims are subject to an underlying mining lease and option to purchase, which has been assigned by Honey Badger to the Company. The underlying agreement gives Entrée the option to purchase the 226 claims for US$500,000, subject to a 3% net smelter returns royalty (?NSR Royalty?) (which may be bought down to a 1% NSR Royalty for US$2 million) and annual advance minimum royalty payments of US$27,500 commencing in June 2011 payable until commercial production. These advance payments are credited against future NSR Royalty payments.
The Agreement is subject to TSX Venture Exchange approval, and acceptance by the Toronto Stock Exchange.
It's all happened before and it will all happen again. Might as well profit from it.
