Entree Gold's Zone III Epithermal Gold System Extended for an Additional 600 Meters Along Strike.

Business Editors

VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 15, 2004

Entree Gold Inc. (TSX-V:ETG)("Entree" or the "Company") is pleased to announce that results from recent soil geochemical and geophysical surveys on the Zone III gold area at its Lookout Hill (Shivee Tolgoi) project in Mongolia show an extension of the epithermal gold system for an additional 600 meters. This brings the verified strike length of this gold target to 900 meters. Three recently collected select rock samples returned significant grade gold in this area of alteration and gold mineralization.

The three samples, collected from previously un-sampled quartz veins in the eastern portion of the Zone III trenches, revealed high-grade gold mineralization associated with lower grade silicified rhyolite breccia. The three samples returned grades of 8.07 g/t, 0.78 g/t and 5.32 g/t gold.

Previously reported trenching in the northern portion of Zone III exposed a 100+ meter wide alteration zone. The western area returned numerous surface gold values of greater than 5.0 g/t gold. Sampling in the eastern, less silicified rhyolite breccia, where the three above reported samples were collected, returned trench values of 18 meters averaging 1.4 g/t gold.

Earlier trench sampling and soil geochemical and geophysical surveys were conducted over a length of approximately 300 meters along the northerly trending system. The recent soil geochemistry has defined anomalous gold and associated indicator elements of arsenic and antimony over the full 900 meter north-south strike extent of the survey. The width of these soil anomalies varies from less than 200 meters in the area of the trenches to over 400 meters near the southern limit of the survey.

Zone III's gold mineralization and soil anomalies are spatially associated with a 2.0+ kilometer long IP chargeability high and magnetic low, as outlined by the previous property owners. Entree has now verified these geophysical responses for a strike length of 900 meters. The origin of this coincidental chargeability high and magnetic low may be due to the emplacement of gold bearing sulphides and silica contemporaneous with destruction of magnetite in the host volcanic units. The entire system remains open to the south, along the remaining 1,000+ meters of the untested chargeability anomaly.

"The ongoing exploration of Zone III continues to increase the significance of this major epithermal gold target," said Greg Crowe, Entree's President and CEO. "It is only one of several gold prospects recently discovered by Entree around the periphery of the world class Turquoise Hill porphyry copper-gold deposit being developed by Ivanhoe Mines Ltd. (NASDAQ:HUGO)(TSX:IVN)(ASX:IVN). The ongoing exploration of these gold prospects, in combination with potential extensions to Ivanhoe's Turquoise Hill porphyry copper-gold system onto Entree's Lookout Hill property, will continue to enhance shareholder value."

Exploration at Lookout Hill is under the supervision of Robert Cann, P.Geo., Entree's Exploration Manager, a qualified person as defined by National Instrument 43-101. Mr. Cann is responsible for the preparation of technical information in the Company's News Releases and disclosure documents. All rock samples were prepared and analyzed by SGS Analabs of Ulaan Baatar, Mongolia.

ABOUT ENTREE GOLD INC.

Entree Gold Inc. (www.entreegold.com) is a junior resource company engaged in the exploration and advancement of gold and copper prospects. The Company is a large landholder in one of the world's most promising gold-copper districts, located in Mongolia's south Gobi Desert near the Chinese border. Entree's 179,590 hectare Lookout Hill (Shivee Tolgoi) property completely surrounds Ivanhoe Mines' 8,500 hectare Turquoise Hill (Oyu Tolgoi) holdings and is believed to host extensions to the northerly trending gold-copper system currently under exploration at Ivanhoe's Hugo Dummett Deposit. Entree has a 100% royalty-free ownership in Lookout Hill. Entree trades on the TSX Venture Exchange under the symbol "ETG".

This News Release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, concerning the Company's plans for its principal property in Mongolia. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company's exploration and development of its principal property in Mongolia, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties, including those described in the Company's periodic filings with the British Columbia Securities Commission. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not intend to update this information and disclaims any legal liability to the contrary.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.