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.