Entree Gold Announces Second Quarter 2014 Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 7, 2014) - Entrée Gold Inc. (TSX:ETG)(NYSE MKT:EGI)(FRANKFURT:EKA) - ("Entrée" or the "Company") has today filed its interim operational and financial results for the quarter ended June 30, 2014.

Greg Crowe, President and CEO commented, "In the second quarter, we announced the commencement of a pre-feasibility drill program at our 100% owned Ann Mason project in the Yerington district of Nevada. This drill program is a critical first step towards the completion of a pre-feasibility study which could ultimately demonstrate Ann Mason's potential to become a long-life, open pit copper mine located in one of the most desirable mining jurisdictions in the world."

The infill drill program is designed to upgrade the mineral resources contained in the 2012 Preliminary Economic Assessment Phase 5 pit ("2012 PEA" - see News Release of October 24, 2012) from indicated and inferred to a combination of measured and indicated categories. The program contemplates approximately 14,000 metres of pre-collar reverse circulation and diamond drilling in 31 holes, and is expected to be completed by the end of 2014. The estimated budget is approximately US$5 million. The Company plans to issue an updated resource estimate in the first quarter of 2015.

Greg Crowe further commented, "With approximately US$42 million of cash at the end of the second quarter, Entrée continues to be well funded in this difficult market environment. We remain committed to balancing prudent cash management with our mandate to build shareholder value through the advancement of our key assets and continuing to assess other strategic opportunities."

Mongolia Update

On March 31, 2014, the lender commitments for project financing for the Oyu Tolgoi underground mine expired. On May 12, 2014, Turquoise Hill Resources Ltd. ("Turquoise Hill"), majority owner of Mongolian subsidiary Oyu Tolgoi LLC ("OTLLC"), announced that 14 of the 15 global banks participating in the Oyu Tolgoi project financing had agreed to extend their commitment letters to September 30, 2014.

On June 23, 2014, Turquoise Hill announced that OTLLC had received an audit report from the Mongolian Tax Authority claiming unpaid taxes, penalties and disallowed entitlements associated with the initial development of the Oyu Tolgoi mine. Turquoise Hill stated that it strongly disagrees with the claims in the audit report, and advised that outstanding shareholder issues, including tax claims, must be resolved before further investment in the underground can proceed. As a result, distribution of the underground feasibility study, which was originally expected to be completed in the first half of 2014, will be delayed.