Entree Gold Provides Update on Status of Licences in Mongolia
VANCOUVER, BRITISH COLUMBIA, Feb 27, 2013 (Menafn - MARKETWIRE via COMTEX) --Entree Gold Inc. (nyse mkt:EGI)(frankfurt:EKA)("Entree" or the "Company") advises that, contrary to reports in the media, the Oyu Tolgoi LLC-Entree Gold joint venture mining licences have not been cancelled. The Company has today received official notification from the Mineral Resources Authority of Mongolia("MRAM") advising the Company that, while the joint venture mining licenses MV-15225A and MV-15226A have not been revoked, Order No. 167issued on July 10, 2009 by the Ministry of Mineral Resources and Energy has been cancelled. This Order concerned the registration ofreserves related to the joint venture deposits which is one step in the process to convert an exploration licence to a mining licence.Order No. 167 was not concerned with issuing of the mining licences.
The Company understands that the joint venture mining licensesMV-15225A and MV-15226A have been put under suspension for atemporary period. This suspension means that Entree is not allowed tosell or transfer the licences for the time being.
The Company believes it followed all Mongolian laws and regulationsin conjunction with the issuance of the joint venture mininglicenses. These licences were issued to Entree as a conditionprecedent to the Investment Agreement between Entree's joint venturepartner Oyu Tolgoi LLC (formerly known as Ivanhoe Mines MongoliaXXK), Rio Tinto International Holdings Limited, Turquoise Hill Ltd.(formerly known as Ivanhoe Mines Ltd.) and the Government of Mongoliain October 2009.
To help ensure that this matter is resolved as soon as possible, theCompany will work with Oyu Tolgoi LLC, who, as manager of the OyuTolgoi mining complex, is responsible for maintaining the licences ingood order.
ABOUT ENTREE GOLD INC.
Entree Gold Inc. is a Canadian mineral exploration company balancingopportunity and risk with key assets in Mongolia and Nevada.
Rio Tinto and Turquoise Hill Resources (formerly Ivanhoe Mines) aremajor shareholders of Entree, holding approximately 12.9% and 10.7%of issued and outstanding shares, respectively. Rio Tinto, throughits majority ownership of Turquoise Hill Resources, beneficially owns23.6% of Entree's issued and outstanding shares.
This News Release contains forward-looking statements andforward-looking information (together, "forward-looking statements")within the meaning of applicable securities laws and the UnitedStates Private Securities Litigation Reform Act of 1995, with respectto discussions with the Government of Mongolia, the status of themining licences MV-15225A and MV-15226A, discussions with Oyu TolgoiLLC, anticipated business activities, corporate strategies, uses offunds and future financial performance. In certain cases,forward-looking statements can be identified by the use of words suchas "plans", "expects" or "does not expect", "is expected", "budget","scheduled", "estimates", "forecasts", "intends", "anticipates", or"does not anticipate" or "believes" or variations of such words andphrases or statements that certain actions, events or results "may","could", "would", "might" or "will be taken", "occur" or "beachieved". While Entree has based these forward-looking statements onits expectations about future events as at the date that suchstatements were prepared, the statements are not a guarantee ofEntree's future performance and are subject to risks, uncertainties,assumptions and other factors which could cause actual results todiffer materially from future results expressed or implied by suchforward-looking statements. Such factors and assumptions include,amongst others, that the size, grade and continuity of deposits andresource and reserve estimates have been interpreted correctly fromexploration results; that the prices of copper, gold, silver andmolybdenum and foreign exchange rates will remain relatively stable;the effects of general economic conditions, including inflation;future actions by Rio Tinto, Turquoise Hill Resources, joint venturepartners and government authorities including the Government ofMongolia; the availability of capital; that applicable legislation,including legislation with respect to mining, foreign investment,royalties and taxation, will not materially change; uncertaintiesassociated with legal proceedings and negotiations; and misjudgementsin the course of preparing forward-looking statements. In addition,there are also known and unknown risk factors which may cause theactual results, performances or achievements of Entree to bematerially different from any future results, performance orachievements expressed or implied by the forward-looking statements.Such factors include, among others, risks related to internationaloperations, including legal and political risk in
Mongolia; recent global financial conditions; changes in projectparameters and mine plans as they continue to be refined; increasesin capital and operating costs; joint venture related risks;inability to upgrade inferred mineral resources to indicated ormeasured mineral resources; inability to convert mineral resources tomineral reserves; conclusions of economic evaluations; future pricesof copper, gold, silver and molybdenum; possible variations in orereserves, grade recovery and rates; risks related failure of plant,equipment or processes to operate as anticipated; accidents, labourdisputes and other risks of the mining industry; delays in obtaininggovernment approvals, permits or licences or financing or in thecompletion of development or construction activities; environmentalrisks; title disputes; limitations on insurance coverage; as well asthose factors described in the Company's Annual Information Form forthe financial year ended December 31, 2011, dated March 29, 2012 andthe Company's most recent Management's Discussion and Analysis filedwith the Canadian Securities Administrators and available atwww.sedar.com. Although the Company has attempted to identifyimportant factors that could cause actual actions, events or resultsto differ materially from those described in forward-lookingstatements, there may be other factors that cause actions, events orresults not to be as anticipated, estimated or intended. There can beno assurance that forward-looking statements will prove to beaccurate, as actual results and future events could differ materiallyfrom those anticipated in such statements. Accordingly, readersshould not place undue reliance on forward-looking statements. TheCompany is under no obligation to update or alter any forward-lookingstatements except as required under applicable securities laws.
Contacts:
Entree Gold Inc.
Monica Hamm
Manager, Investor Relations
604-687-4777 or Toll Free: 866-368-7330
604-687-4770 (FAX)
info@entreegold.com
www.entreegold.com
The Company understands that the joint venture mining licensesMV-15225A and MV-15226A have been put under suspension for atemporary period. This suspension means that Entree is not allowed tosell or transfer the licences for the time being.
The Company believes it followed all Mongolian laws and regulationsin conjunction with the issuance of the joint venture mininglicenses. These licences were issued to Entree as a conditionprecedent to the Investment Agreement between Entree's joint venturepartner Oyu Tolgoi LLC (formerly known as Ivanhoe Mines MongoliaXXK), Rio Tinto International Holdings Limited, Turquoise Hill Ltd.(formerly known as Ivanhoe Mines Ltd.) and the Government of Mongoliain October 2009.
To help ensure that this matter is resolved as soon as possible, theCompany will work with Oyu Tolgoi LLC, who, as manager of the OyuTolgoi mining complex, is responsible for maintaining the licences ingood order.
ABOUT ENTREE GOLD INC.
Entree Gold Inc. is a Canadian mineral exploration company balancingopportunity and risk with key assets in Mongolia and Nevada.
Rio Tinto and Turquoise Hill Resources (formerly Ivanhoe Mines) aremajor shareholders of Entree, holding approximately 12.9% and 10.7%of issued and outstanding shares, respectively. Rio Tinto, throughits majority ownership of Turquoise Hill Resources, beneficially owns23.6% of Entree's issued and outstanding shares.
This News Release contains forward-looking statements andforward-looking information (together, "forward-looking statements")within the meaning of applicable securities laws and the UnitedStates Private Securities Litigation Reform Act of 1995, with respectto discussions with the Government of Mongolia, the status of themining licences MV-15225A and MV-15226A, discussions with Oyu TolgoiLLC, anticipated business activities, corporate strategies, uses offunds and future financial performance. In certain cases,forward-looking statements can be identified by the use of words suchas "plans", "expects" or "does not expect", "is expected", "budget","scheduled", "estimates", "forecasts", "intends", "anticipates", or"does not anticipate" or "believes" or variations of such words andphrases or statements that certain actions, events or results "may","could", "would", "might" or "will be taken", "occur" or "beachieved". While Entree has based these forward-looking statements onits expectations about future events as at the date that suchstatements were prepared, the statements are not a guarantee ofEntree's future performance and are subject to risks, uncertainties,assumptions and other factors which could cause actual results todiffer materially from future results expressed or implied by suchforward-looking statements. Such factors and assumptions include,amongst others, that the size, grade and continuity of deposits andresource and reserve estimates have been interpreted correctly fromexploration results; that the prices of copper, gold, silver andmolybdenum and foreign exchange rates will remain relatively stable;the effects of general economic conditions, including inflation;future actions by Rio Tinto, Turquoise Hill Resources, joint venturepartners and government authorities including the Government ofMongolia; the availability of capital; that applicable legislation,including legislation with respect to mining, foreign investment,royalties and taxation, will not materially change; uncertaintiesassociated with legal proceedings and negotiations; and misjudgementsin the course of preparing forward-looking statements. In addition,there are also known and unknown risk factors which may cause theactual results, performances or achievements of Entree to bematerially different from any future results, performance orachievements expressed or implied by the forward-looking statements.Such factors include, among others, risks related to internationaloperations, including legal and political risk in
Mongolia; recent global financial conditions; changes in projectparameters and mine plans as they continue to be refined; increasesin capital and operating costs; joint venture related risks;inability to upgrade inferred mineral resources to indicated ormeasured mineral resources; inability to convert mineral resources tomineral reserves; conclusions of economic evaluations; future pricesof copper, gold, silver and molybdenum; possible variations in orereserves, grade recovery and rates; risks related failure of plant,equipment or processes to operate as anticipated; accidents, labourdisputes and other risks of the mining industry; delays in obtaininggovernment approvals, permits or licences or financing or in thecompletion of development or construction activities; environmentalrisks; title disputes; limitations on insurance coverage; as well asthose factors described in the Company's Annual Information Form forthe financial year ended December 31, 2011, dated March 29, 2012 andthe Company's most recent Management's Discussion and Analysis filedwith the Canadian Securities Administrators and available atwww.sedar.com. Although the Company has attempted to identifyimportant factors that could cause actual actions, events or resultsto differ materially from those described in forward-lookingstatements, there may be other factors that cause actions, events orresults not to be as anticipated, estimated or intended. There can beno assurance that forward-looking statements will prove to beaccurate, as actual results and future events could differ materiallyfrom those anticipated in such statements. Accordingly, readersshould not place undue reliance on forward-looking statements. TheCompany is under no obligation to update or alter any forward-lookingstatements except as required under applicable securities laws.
Contacts:
Entree Gold Inc.
Monica Hamm
Manager, Investor Relations
604-687-4777 or Toll Free: 866-368-7330
604-687-4770 (FAX)
info@entreegold.com
www.entreegold.com
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