Entree Gold Mails and Files Meeting Materials for Proposed Spin-Out of U.S. Assets, Including the Ann Mason Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 24, 2017) - Entrée Gold Inc. ("Entrée or the "Company") (TSX:ETG)(NYSE MKT:EGI)(FRANKFURT:EKA) is pleased to report that further to its news release of February 28, 2017, the Company has today filed and mailed the materials for its Annual General and Special Meeting (the "Meeting") of shareholders, optionholders and warrantholders (collectively, the "Securityholders") which describe, among other things, the proposed strategic reorganization of the Company's business (the "Arrangement"). The Company's Information Circular (the "Circular") and other Meeting materials are available on SEDAR at www.sedar.com and on the Company's website at www.entreegold.com.

The Arrangement

At the Meeting, among other items of business including the annual election of directors, shareholders of Entrée ("Shareholders"), as well as Securityholders voting together as a single class, will be asked to consider and, if thought fit, to pass, with or without variation, a special resolution to approve a statutory plan of arrangement (the "Plan of Arrangement") under Section 288 of the Business Corporations Act (British Columbia). It is intended that, as part of the Arrangement, Shareholders will receive common shares of newly incorporated Mason Resources Corp. ("Mason Resources") by way of a share exchange, pursuant to which each existing share of Entrée is exchanged for one "new" share of Entrée and 0.45 of a Mason Resources common share (the "Consideration"). Entrée will transfer to Mason Resources all of the issued and outstanding shares of Entrée U.S. Holdings Inc., which indirectly holds the Ann Mason copper-molybdenum project in Nevada (the "Ann Mason Project") and the Lordsburg copper-gold property in New Mexico, along with US$8.75 million in cash.

There will be no change to Shareholders' existing interests in Entrée.

The Plan of Arrangement calls for Entrée warrantholders to exchange their warrants for replacement warrants to acquire the same number of Entrée shares and 45% of that number of Mason Resources shares. Similarly, Entrée optionholders will exchange their options for replacement options to acquire the same number of Entrée shares and 45% of that number of Mason Resources shares. The exercise prices of the replacement warrants and options will be determined in accordance with the Plan of Arrangement.