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ETG Entree's Ann Mason at 640 Mt of 0.41% CuEq indicated

Canada StockWatch
8:19 AM Eastern Daylight Time Mar 27, 2012

Entree Gold Inc (TSX:ETG)
Shares Issued 128,377,243
Last Close 3/26/2012 $1.23
Tuesday March 27 2012 - News Release

Mr. Greg Crowe reports

ENTREE GOLD UPGRADES AND EXPANDS RESOURCES AT ANN MASON

Entree Gold Inc. is releasing an updated Canadian National Instrument 43-101-compliant mineral resource estimate for the Ann Mason deposit at Yerington, Nev., which includes the first reported indicated resources for the deposit. The updated resource estimate converts a large percentage of the previous inferred mineral resources to an indicated category and expands the overall size of the deposit. These upgraded resources will form the basis for a Preliminary Economic Assessment ("PEA") planned for completion in the second half of 2012.

Key Points

-- Upgraded and expanded resources:
-- 0.3% Copper Cut-off:


-- Indicated Resources - 640 million tonnes averaging 0.41% copper
equivalent ("CuEq"), containing approximately 5.4 billion pounds
of copper and 100 million pounds of molybdenum
-- Inferred Resources - 444 million tonnes averaging 0.38% CuEq,
containing approximately 3.5 billion pounds of copper and 40
million pounds of molybdenum



-- 0.2% Copper Cut-off:


-- Indicated Resources - 1.115 billion tonnes grading 0.35% CuEq
containing approximately 8.04 billion pounds of copper and 160
million pounds of molybdenum
-- Inferred Resources - 1.131 billion tonnes grading 0.31% CuEq
containing approximately 7.31 billion pounds of copper and 110
million pounds of molybdenum

-- The boundaries of the deposit have been expanded to the north, west,
southwest and to depth. Mineralization remains open and current drilling
is seeking to further extend the deposit.
-- The updated resource estimate converts approximately 75% of the previous
inferred mineral resources to the indicated category.
 The previous inferred resource estimate for the Ann Mason deposit was 810 million tonnes grading 0.40% copper, estimated to contain over 7 billion pounds of copper using a 0.3% copper cut-off (see news release of January 26, 2010). Comparable moderate grade porphyry deposits in the western US have been modeled using a 0.2% copper cut-off in recent years.

Greg Crowe, President and CEO of Entree commented, "Our belief in the potential of Ann Mason has been strengthened with this updated and upgraded resource estimate, which converts a substantial amount of previous inferred resources to indicated resources. With over 5 billion pounds of copper estimated at the indicated level and another 3.5 billion pounds estimated at the inferred level, Ann Mason should now be recognized as a significant deposit in one of the best mining jurisdictions in the world. The Yerington district is a well-mineralized porphyry copper camp serviced by excellent infrastructure, which contains five known major deposits including the nearby historic Yerington Mine, which produced over 1.8 billion pounds of copper. Recent exploration by several companies in the district, including Entree, has defined total resources and reserves in excess of 20 billion pounds of copper."

Table 1. Ann Mason Deposit Indicated and Inferred Resources - March 6, 2012
----------------------------------------------------------------------------
Indicated
----------------------------------------------------------------
Cut-off Tonnes lb Cu lb Mo CuEq(i)
(% Cu) (million) Cu (%) Mo (%) (billion) (billion) (%)
----------------------------------------------------------------------------
0.2 1,115 0.33 0.007 8.04 0.16 0.35
----------------------------------------------------------------------------
0.25 904 0.35 0.007 6.98 0.13 0.38
----------------------------------------------------------------------------
0.3 640 0.38 0.007 5.38 0.10 0.41
----------------------------------------------------------------------------
0.35 391 0.42 0.007 3.60 0.06 0.45
----------------------------------------------------------------------------
0.4 201 0.46 0.008 2.04 0.03 0.49
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Inferred
----------------------------------------------------------------
Cut-off Tonnes lb Cu lb Mo CuEq(i)
(% Cu) (million) Cu (%) Mo (%) (billion) (billion) (%)
----------------------------------------------------------------------------
0.2 1,131 0.29 0.004 7.31 0.11 0.31
----------------------------------------------------------------------------
0.25 780 0.32 0.004 5.56 0.07 0.34
----------------------------------------------------------------------------
0.3 444 0.36 0.004 3.54 0.04 0.38
----------------------------------------------------------------------------
0.35 215 0.40 0.004 1.90 0.02 0.42
----------------------------------------------------------------------------
0.4 82 0.45 0.005 0.82 0.01 0.47
----------------------------------------------------------------------------
(i) Copper equivalent ("CuEq") is calculated using assumed metal prices of:
copper US$2.50/lb and molybdenum US$15.00/lb, and assumed metallurgical
recoveries relative to copper of molybdenum 70%.
 Mr. Crowe further noted, "Ann Mason bears the hallmark of a typical large copper-molybdenum porphyry deposit, comparable to other deposits throughout western North America that are either in production or are currently being financed to come into production. An expected ongoing long-term demand for copper, accompanied by a tightening supply picture should favour deposits like Ann Mason. We have initiated a PEA based on this resource estimate, which will incorporate results from on-going drilling, additional metallurgical test results from four composite samples and additional re-assay results of historic core samples.

"The inclusion of the historical core re-assay data will strengthen modeling of the molybdenum domain and allow for the inclusion of gold and silver values in future resource estimates. The original work completed by Anaconda did not include the systematic analysis of these important elements. Metallurgical recoveries on testing completed to date have been encouraging and baseline environmental studies have also been initiated."

Technical Discussion

Entree contracted Quantitative Group Pty Ltd ("QG") based in Perth, Australia to prepare the updated mineral resource estimate. Further technical details regarding the estimate are described in a report titled "Technical Report and Updated Mineral Resource Estimate, Ann Mason Project, Nevada, USA" ("AMTR12"), which will be available on SEDAR and on the Company website at www.entreegold.com.

Approximately 30,000 metres of new drilling in 27 holes were analyzed and evaluated in conjunction with 50,200 metres (119 holes) of historic drilling to prepare this resource estimate. This estimate also includes re-assay results from portions of 23 holes sampled by PacMag Metals in 2006 and portions of two holes sampled by Entree in 2012. Deposit geology, structure, alteration and sulphide zoning have been reinterpreted and modelled based on the integration of historic data with current drilling results.

The key estimation parameters used by QG are as follows:

-- Copper was interpolated using a single estimation domain created using
an approximate 0.15% copper threshold. A similar but smaller domain was
built for molybdenum using a 0.005% threshold.
-- Assays were composited to 5 metres in line.
-- Copper and molybdenum variograms show that there is not a high degree of
anisotropy; there is a moderate nugget effect and ranges up to 300
metres were modelled.
-- Inside the copper domain, composites above 2% were given a restricted
range of influence (40 metres). For molybdenum, a similar strategy was
applied at 0.01% molybdenum.
-- Estimation of 40 x 40 x 15 metre blocks was by Ordinary Kriging.
-- A single bulk density value was used inside the copper domain (2.59) and
two average density values outside that domain (2.61 in quartz monzonite
and 2.57 in granodiorite).
-- The resource was classified into inferred or indicated using a number of
factors, taking into account confidence in the model, data spacing and
various complementary geostatistical parameters, as follows:
-- Indicated: Material inside the 0.15% copper domain, with a spacing
of approximately 100 x 75 metres or less and a slope of regression
(a measure of conditional bias) above 0.7.
-- Inferred: Material inside the 0.15% copper domain with a spacing of
greater than 100 metres but less than 175 metres (i.e. the rest of
the copper domain).
-- Not Classified: All material outside the 0.15% copper domain.
-- The Ann Mason mineral resource has not been constrained by an economic
pit shell, but QG's review of the geometry and depth of the deposit, as
well as the grade distribution and cut-off grades and comparison of
these to similar-style deposits world-wide demonstrates that the
inferred and indicated material has reasonable prospects for eventual
economic extraction.
nbsp;Consistency of mineralization is an important factor in being able to classify a large percentage of the overall deposit in the indicated mineral resource category. All twenty-seven (27) holes completed by Entree intercepted thick intervals grading 0.30% copper or higher. In addition, the confidence in the continuity of mineralization from hole to hole has increased as in-fill results have been received and step-out drilling has proceeded westward. Several sizeable intercepts grading over 0.5% copper have been encountered.

Advancing to PEA

A key component for advancing to a PEA was the completion of this resource estimate and finalization of AMTR12. AGP Mining Consultants Inc., Toronto ("AGP") has been contracted to prepare the PEA. The large tonnage of indicated and inferred mineral resources reported in this estimate at the 0.2% copper cut-off will be the basis for mining and processing scenarios evaluated in the PEA.

AGP is also preparing an independent third party resource estimate for the Blue Hill oxide-copper deposit for possible incorporation into the PEA.

The Company has forwarded two additional composites of core samples from the pyrite-chalcopyrite domain at Ann Mason to METCON Research in Tucson for additional metallurgical testing. This round of testing will help further refine flotation parameters to be used in the PEA.

Additional quarter core samples from 22 selected historic drill holes have been submitted for analysis, however, results are still pending.

Through a combination of staking and purchase agreements, Entree has recently acquired or entered into agreements to acquire a total of 72 unpatented and patented lode claims within, or contiguous to the boundaries of its Ann Mason Project for aggregate costs of US$3,618,853 and 40,000 common shares.

QUALITY ASSURANCE AND CONTROL

Split core samples were prepared and analyzed at Skyline Assayers and Laboratories in Tucson, Arizona or at ALS Chemex in Vancouver, BC. Prepared standards, blanks and duplicates are inserted at the project site to monitor the quality control of the assay data. Additional check assays are completed at Acme Analytical Laboratories in Vancouver, BC. Drill intersections described in this news release are based on core lengths and may not reflect the true width of mineralization.

QUALIFIED PERSONS

Scott Jackson, F. AusIMM, Principal Consultant and Director with QG, and Robert Cinits, P.Geo., Director, Technical Services with Entree are Qualified Persons as defined by NI 43-101. Scott Jackson and Robert Cinits supervised the preparation of the technical information in this release.

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