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Press Release

Rio Tinto private placement agreement

Rio Tinto has entered into an agreement with Entrée Gold Inc. (“Entrée”) pursuant to which it has agreed to acquire 5,665,730 units of Entrée at a price of C$2.20 per unit. Each unit consists of one common share, one common share purchase A warrant and one common share purchase B warrant. Two A warrants will entitle the holder to purchase one common share of Entree at a price of C$2.75 for a period of two years. Two B warrants will entitle the holder to purchase one common share at a price of C$3.00 for a period of two years. Pursuant to the agreement, Rio Tinto has the right to acquire additional securities and participate in future financings by Entrée, so as to maintain its proportional equity interest in Entrée.

Following the private placement, Rio Tinto (through Kennecott Canada Exploration Inc., an indirect, wholly owned subsidiary) will hold 5,665,730 common shares of Entree (representing approximately 9.9 per cent of Entrée’s issued and outstanding common shares) and 11,331,460 warrants exercisable for 5,665,730 common shares of Entrée (representing approximately 50.4 per cent of Entrée’s issued and outstanding warrants). If the warrants were to be exercised, Rio Tinto would hold approximately 19.8 per cent of Entrée’s common shares.

Rio Tinto has no present intention of acquiring other securities of Entrée, except as regards its right to acquire additional securities so as to maintain its proportional equity interest in the future, or of disposing of any of the securities of Entree which it holds. Depending upon its evaluation of Entrée’s business, prospects and financial condition, the market for Entrée’s securities, general economic conditions and other factors, Rio Tinto may acquire additional securities of Entrée or sell some or all of the securities it holds.



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