Entree Gold Enters Into Agreement To Acquire NSR Royalty From Candente Copper

VANCOUVER, BC - Entree Gold Inc. has entered into a binding Letter of Intent (the "Agreement") with Vancouver based Candente Copper Corp. to acquire a 0.5% net smelter returns royalty on Candente's 100% owned Canariaco project in Peru.

The purchase price for the Royalty is US$500,000. The Agreement is subject to the execution of a definitive royalty agreement, among other things.

The Canariaco project includes the Canariaco Norte copper-gold-silver deposit, as well as the adjacent Canariaco Sur and Quebrada Verde prospects, located within the western Cordillera of the Peruvian Andes in the Department of Lambaveque, Northern Peru.

Greg Crowe, President and CEO of Entree, commented "We are excited to be presented with this opportunity to acquire a royalty on the Canariaco project in Peru. Like our Ann Mason deposit in Nevada, Canariaco Norte is a large scale, open pittable, long life porphyry copper deposit located in an extremely desirable jurisdiction."

"Canariaco Norte, Canariaco Sur and Quebrada Verde all lie within a prolific trend of producing mines and known deposits. Candente has a strong management team that is steadily advancing Canariaco Norte to Feasibility, and we believe the project is well positioned for eventual development."

In March 2011, Candente filed a National Instrument 43-101 technical report titled "Canariaco Project, Lambayeque Department, Peru, NI 43-101 Technical Report on Pre-Feasibility Study Progress Report". The effective date of the report is January 18, 2011 and it was prepared by AMEC Americas Limited (now Amec Foster Wheeler). The Canariaco Norte deposit is reported to contain mineral resources of approximately 3.6 billion pounds of copper in the Measured category (338 million tonnes ("Mt") grading 0.48% copper, 0.08 grams per tonne ("g/t") gold and 2.0 g/t silver), 3.9 billion pounds of copper in the Indicated category (414 Mt grading 0.43% copper, 0.06 g/t gold and 1.7 g/t silver), and 1.4 billion pounds of copper in the Inferred category (158 Mt grading 0.41% copper, 0.06 g/t gold and 1.7 g/t silver), using a 0.3% copper cut-off.

The report envisions an open pit mine with 95,000 tonnes per day mill throughput using a conventional crush/grind and flotation recovery process. Over the Life-Of-Mine, the project is reported to produce an average of approximately 262 million pounds of copper per year, along with 37,000 ounces of gold and 850,000 ounces of silver. Development capital to build the project is estimated to be US$1.6 billion. The mine plan is based on Measured and Indicated mineral resources only, with Inferred mineral resources considered as waste.