Entree Resources Ltd T.ETG

extention of discovery on ETG property

[RGS1]

ETG-V : Geophysics Confirms and Extends Structures Hosting Ivanhoe Mines; Ltd. Far North Zone Copper Gold Mineralization for Over 2.0 Kilometres onto Entree's Shivee Tolgoi Property, Mongolia Symbol: ETG U/ETEEF 12Aug03 Market News Publishing Inc. 2003/08/12 No:0002 ENTREE GOLD INC ("ETG-V;ETEEF-0") - Geophysics Confirms and Extends Structures Hosting Ivanhoe Mines - Ltd. Far North Zone Copper-Gold Mineralization for Over 2.0 - Kilometres onto Entree's Shivee Tolgoi Property, Mongolia NOT FOR DISSEMINATION IN THE UNITED STATES. Entree Gold Inc. ("Entree") is pleased to announce the results of geophysical surveys, consisting of induced polarization (IP), magnetometer and gravity, recently completed on Entree Gold Inc.'s ("Entree" - ETG.V) Shivee Tolgoi property, immediately adjacent to and completely surrounding the Turquoise Hill (Oyu Tolgoi) property of Ivanhoe Mines Ltd. (Ivanhoe - IVN.T). Three main areas were targeted: The northwards continuation of the Turquoise Hill porphyry copper-gold Far North Zone (referred to as the Copper Flats or formerly the NE Grid area on Entree's Shivee Tolgoi property); Zones I and II quartz-alunite alteration areas 9.5 kilometres to the northwest of the Far North Zone; and the southward extension of the Zone III high-grade, epithermal gold target located 2.5 kilometres to the west of Zones I and II. Ivanhoe (IVN.T) is currently drilling its Turquoise Hill porphyry copper-gold system and is concentrating up to 13 drills along the northern extension of its high-grade Far North Zone. Drilling is now within 500 meters of Entree's Shivee Tolgoi property boundary. IP and gravity surveys completed on Entree's ground immediately along strike from the Far North mineralized trend clearly illustrate the continuation of the structural system that is host to the Far North mineralization. These geophysical signatures indicate the system extends northwards for over 2 kilometres onto Entree's property and this mineralized structural host remains open to the north, beyond the 2 kilometres limit to the surveyed grid area. Future geophysical programs will continue to test this system over an additional 7 kilometres of ground held by Entree, along strike to the north of the current 2 kilometres grid area. A subtle to moderate strength IP chargeability anomaly was also encountered in the Copper Flats area approximately 2.2 kilometres to the west of the Far North Zone structural trend. This is intriguing in light of Ivanhoe's July 8, 2003 News Release in which a second zone of porphyry related copper-gold mineralization was noted to the west of the Far North Zone on their Turquoise Hill property. The possible existence of parallel zones of porphyry copper-gold mineralization in the Copper Flats areas on Entree's Shivee Tolgoi property only strengthens the likelihood of the continuation of Ivanhoe's Turquoise Hill porphyry copper-gold system onto Entree's ground. IP and magnetometer surveys were completed over portions of Zones I and II, located to the west-northwest of Turquoise Hill. Subtle to moderate chargeability highs are coincidental with the Zone I quartz - alunite area of alteration. A very strong chargeability high is coincidental with a previously detected IP anomaly in Zone II, immediately to the west of and sub-parallel to Zone I. Extensive areas of quartz - alunite alteration can be indicative of proximal porphyry copper-gold mineralization. The coincidental quartz - alunite alteration and IP chargeability highs may be indicative of buried sulphide mineralization associated with a mineralized porphyry system in the Zone I and II areas. IP and magnetometer surveys were also completed along the southwards extension of the Zone III, high-grade, epithermal gold target. Previous geophysics, rock and soil sampling, along with trenching and sampling, have indicated that high grade gold mineralization (values reported to 29.2 g/t gold) is associated with a 1.5 - 2 kilometres long IP chargeability anomaly. A strong chargeability high is directly coincidental with the area of high grade gold mineralization encountered in the trenching. Recent geophysical surveys confirm the continuation of this chargeability high for 350 meters to the south of the trenches. The gold system remains open to the south and will be tested by additional geophysical and geochemical surveys. Recent additional work in all of the above areas has included geological mapping, rock and soil sampling. The results of these surveys and of similar work completed over several reconnaissance targets will be reported on as the information is received, interpreted and compiled. Robert Cann, P. Geo. is Entree's Exploration Manager and is a qualified person as defined by National Instrument 43-101. Mr. Cann supervises the exploration programs and the preparation of information in the company's News Releases. IP and magnetometer geophysical surveys were completed by Scott Geophysics Ltd. of Vancouver, British Columbia. Gravity work was conducted and results were compiled by Abitibi Geophysics of Val d'Or Quebec. ENTREE GOLD INC. Gregory G. Crowe, President TEL: [phone] Entree Gold Inc. Gregory G. Crowe, President Website: www.entreegold.com "