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May 2012 EntreeGold Presentation

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  1. 1. On the Path to Production Rio Tinto Entrée Gold at Bingham CanyonOyu Tolgoi Headframe Entrée JV Discovery Hole May 2012
  2. 2. Cautionary StatementThis corporate update contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaningof applicable Canadian securities laws.Forward-looking statements include, but are not limited to, statements with respect to the future prices of copper, gold and molybdenum, the estimation of mineral reserves and resources, therealization of mineral reserve and resource estimates, the timing and amount of estimated future production, costs of production and capital expenditures, the costs and timing of the development ofnew deposits, the potential for the discovery of additional mineralized zones on properties in which Entrée has an interest, the potential for the expansion of existing deposits in which Entrée has aninterest, plans to prepare and the timing for release of a Preliminary Economic Assessment on the Ann Mason Project, the timing of and potential for future resource estimates on properties in whichEntrée has an interest, plans for future exploration and/or development programs and budgets, permitting time lines, anticipated business activities, corporate strategies, proposed acquisitions anddispositions of assets and future financial performance. While Entrée Gold Inc. (“Entrée” or the “Company”) has based these forward-looking statements on its expectations about future events as atthe date that such statements were prepared, the statements are not a guarantee of the Company’s future performance and are subject to risks, uncertainties, assumptions and other factors whichcould cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such factors and assumptions include, amongst others, that the size, gradeand continuity of deposits and resource and reserve estimates have been interpreted correctly from exploration results, that the prices of copper, gold and molybdenum will remain relatively stable,the effects of general economic conditions, changing foreign exchange rates and actions by joint venture partners and by government authorities including the Government of Mongolia, uncertaintiesassociated with legal proceedings and negotiations and misjudgements in the course of preparing forward-looking statements. In addition, there are also known and unknown risk factors which maycause the actual results, performances or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-lookingstatements. Known risk factors are described in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 29, 2012 and in the Company’s most recent managementdisclosure and anlysis filed with the Canadian Securities Administrators and available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actualactions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated orintended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, futureevents, or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements.The Companys exploration activities are under the supervision of Robert Cann, P.Geo., Vice President, Exploration of Entrée. Mr. Cann is a “qualified person” as defined in National Instrument 43-101- Standards of Disclosure for Mineral Projects (“NI 43-101”). Mr. Cann has approved this corporate update.All minerals reserves and mineral resources have been calculated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and NI 43-101. Cautionary Note toUnited States Investors: United States investors are advised that while the terms “measured mineral resources”, “indicated mineral resources” “inferred mineral resources” and “probable mineralreserves” are recognized and required by Canadian regulations, the United States Securities and Exchange Commission (SEC) does not recognize them. United States investors are cautioned not toassume that any part or all of the mineral deposits in these categories will ever be upgraded to a higher category, or converted into mineral reserves. Inferred mineral resources have a great amountof uncertainty as to their existence, and as to their economic and legal feasibility. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or othereconomic studies. United States investors are cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally minable. Disclosure of “containedounces” is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute reserves as in place tonnage and gradewithout reference to unit measures. Accordingly, information contained in this corporate update containing descriptions of the Company’s mineral properties may not be comparable to similarinformation made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.Theinformation in this corporate update is for informational purposes only. Readers should not rely on the information for any purpose other than to gain general knowledge of Entrée. This information isnot intended to be, and should not be construed as, part of an offering or solicitation of securities.Note 1: See the technical report titled "Technical Report 2012 on the Lookout Hill Property" dated March 29, 2012 ("LHTR12") prepared by AMC Consultants Pty Ltd, a copy of which is available on SEDAR atwww.sedar.com.Note 2: See the technical report titled "Technical Report and Updated Mineral Resource Estimate on the Ann Mason Project Nevada, USA" dated March 26, 2012, prepared by Robert Cinits, P. Geo., the Company’sDirector, Technical Services, Scott Jackson, F.AusIMM, a principal of Quantitative Group Pty Ltd and Lyn Jones, P. Eng., a senior associate metallurgist for AGP Mining Consultants Inc., a copy of which is available onSEDAR at www.sedar.com. TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 2
  3. 3. On the Path to Production Hugo North Extension and Heruga, Mongolia Oyu Tolgoi DevelopmentPhase I Construction 82% CompleteHNE Development Production in 2015 TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 3
  4. 4. On the Path to ProductionAnn Mason, Nevada Indicated · 8.0 Billion lbs Copper (0.2% Cu cut-off) 5.3 Billion lbs Copper (0.3% Cu cut-off) Inferred · 7.3 Billion lbs Copper (0.2% Cu cut-off) 3.5 Billion lbs Copper (0.3% Cu cut-off) TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 4
  5. 5. Corporate StrategyStriking the balance between opportunity and risk United States Mongolia 100% Entrée Entrée-OTLLC JV Ann Mason Deposit Hugo North Extension Heruga Blue Hill Cu-Mo 100% Entrée Shivee West Cu-Au-Mo Grass Roots Exploration United States ● Australia ● Peru TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 5
  6. 6. Resources Indicated Resource 1.1B lbs CuEq* (with 0.5M oz Au) 0.6% Cut-offIndicated Resource HNE 8.0B lbs Cu Mongolia 0.2% Cut-off or 5.4B lbs Cu 0.3% Cut-off HNE Heruga Inferred Resource 4.1B lbs CuEq* Nevada (with 3M oz Au) 0.6% Cut-off HNE and Heruga Ann Mason Inferred Resource 7.3B lbs Cu 0.2% Cut-off or 3.5B lbs Cu HNE = Hugo North Extension 0.3% Cut-off *CuEq estimated using US$1.35/lb Cu, US$650/oz Au, US$10/lb Mo. Figures are NI 43-101 compliant. TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 6
  7. 7. Strategic Partners Entrée Rio Tinto (13%)* 51% of Ivanhoe 20/30% ~13% Standstill expired January 2012 Commitment >US$3.7 billion Joint Venture Entrée – OTLLC Ivanhoe Mines (11%)* 66% of Oyu Tolgoi Hugo North Extension & Heruga Rio Tinto 80/70% Entrée-OTLLC JV ~11% Oyu Tolgoi LLC US$35,000,000 JV earn-in 51% >US$54 million to date 34% 66% Entrée 20% - Ivanhoe 80% (deep) Entrée 30% - Ivanhoe 70% (shallow) MongolianGovernment Ivanhoe Carried to production *Issued & Outstanding Rio Tinto beneficial ownership is now 23.6% due to majority ownership of Ivanhoe Mines TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 7
  8. 8. Shareholder Base Fully Diluted 11.96% 9.96% 57% 8.87% 8.17% Held by top 15 Shareholders 4.15% 3.51% 2.12% 2.04% 2.00% 1.23% 1.10% 0.80% 0.63% 0.43% 0.42% * Rio Tinto beneficial ownership is now 23.6% due to majority ownership of Ivanhoe Mines TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 8
  9. 9. Board of DirectorsGreg Crowe President & CEO, DirectorJames Harris Chairman, DirectorMichael Howard Deputy Chairman, DirectorLindsay Bottomer VP Business Development, DirectorPeter Meredith DirectorMark Bailey DirectorAlan Edwards Director TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 9
  10. 10. Financial InformationTreasury (As of March 31, 2012) ~Cdn$15.3 millionIssued and Outstanding 128,400,000Options - 10,190,000 (Average price ~Cdn$1.98)Fully Diluted 138,600,00052 week High / Low Cdn$2.49 / $0.91Analyst Coverage TD Newcrest Hallgarten & Co. LLC TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 10
  11. 11. Growth Through Exploration& AcquisitionsUSANevada MongoliaAnn Mason Deposit Hugo North ExtensionBlue HillRoulette HerugaBlackjack Shivee WestNew MexicoLordsburgOak Grove AustraliaPeru Blue RoseLukkacha Mystique • Mongolia Further exploration on Zone III and Argo gold zones, Shivee West Drilling on JV property • USA Preliminary Economic Assessment preparation, Ann Mason deposit Upcoming Blue Hill resource estimate, NV TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 11
  12. 12. Entree Gold - USA USA TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 12
  13. 13. PropertiesYerington,NevadaUSA • Nevada: No. 1 mining jurisdiction in USA • Underdeveloped camp with significant Cu • Positioned for major company investment • Nearby deposits include: •Yerington Mine Produced 1.9 Billion lbs Cu (1918-1982) • Pumpkin Hollow - Nevada Copper 5.9 Billion lbs Cu @ 0.55% (M&I; 0.2% Cu cut-off) • Entrée: Ann Mason Deposit Blue Hill Roulette · Blackjack TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 13
  14. 14. Ann Mason Project, Nevada 8.0 Billion lbs Cu Indicated 1,115 Mt @ 0.33% Cu (0.2% Cu cut-off) 5.4 Billion lbs Cu Indicated 640 Mt @ 0.38% Cu (0.3% Cu cut-off) 7.3 Billion lbs Cu Inferred 1,131 Mt @ 0.29% Cu (0.2% Cu cut-off) 3.5 Billion lbs Cu Inferred 444 Mt @ 0.36% Cu (0.3% Cu cut-off) Drill Highlights 0.33% Cu over 650 m (AM-11-010) 0.31% Cu over 988 m (AM-10-001) 0.45% Cu over 759 m (AM-10-020) 0.35% Cu over 783 m (AM-10-024) TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 14
  15. 15. Ann Mason DepositYerington, Nevada • 100% Entrée • Premier location Excellent infrastructure • No royalties • Drilled ~30,000 m • Major Cu-Mo porphyry deposit 2.3 x 1.3 km x >1 km depth • Early stage metallurgy Copper recoveries > 93% • PEA est. completion; H2 – 2012 TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 15
  16. 16. Ann Mason DepositOn the Path to Production 8.0 Billion lbs Cu Indicated 7.3 Billion lbs Cu Inferred (0.2% Cut-off) TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 16
  17. 17. Porphyry Copper Deposits Western North America Red Chris 0.6 619 Mt 0.5 Rosemont Carlota Safford % Copper 543 Mt 64 Mt 243 Mt 0.4 Mt Milligan Copper Mtn 707 Mt 233 Mt Highland Valley Tyrone 0.3 Morenci Ann Mason* 0.2% 180 Mt 440 Mt 1115 Mt Gibraltar 3200 Mt 460 Mt 0.2 0.1Chart based on indicated resources.Ann Mason inferred resources: 0.2% Cu cut-off – 1,131 million tonnes averaging 0.31% Cu Eq (0.29% Cu, 0.004% Mo) TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 17
  18. 18. Properties Arizona New Mexico USA Partners: Empirical Discovery Explore for buried porphyry Cu-Mo targets • Proprietary geophysical techniques • Four properties drilled Entrée discovery at Lordsburg • Intercepts to 0.44% CuEq* over 60 m • Further exploration planned Other targets • Oak Grove* Copper equivalent estimated using US$1.35/lb Cu and US$650/oz Au. Intercept contains 0.31% Cu and 0.21 g/t Au. TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 18
  19. 19. MongoliaTSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 19
  20. 20. Shivee Tolgoi - Oyu Tolgoi Trends TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 20
  21. 21. Oyu Tolgoi Trend 2.2% CuEq* 0.9% CuEq**Modified from Lookout Hill Technical Report 2012 *Indicated resource grade; inferred resource grade = 1.4% CuEqThe mineral reserves are not additive to the mineral resources. **Inferred resource gradeCopper equivalent estimated using US$1.35/lb Cu, US$650/oz Au, US$10/lb Mo. A 0.6% CuEq cutoff was used.Phase 2 does not include mine plan for Lift 2 extraction TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 21
  22. 22. Oyu Tolgoi Trend HERUGA HUGO NORTH EXTENSION (Schematic from profile) (Schematic from profile) NPV Lift 1 (Entrée) Moly Zone $129 millionOPEN Lift 1 Extraction Level Possible Extraction Level OPEN Lift 2 Extraction Level Gold Zone Oyu Tolgoi OPEN Mining OPEN Entrée - OTLLC JV Licence Oyu Tolgoi Mining Entrée- Licence OTLLC JV 27 Mt ore (JV reserves) 17.4 B lbs CuEq (JV inferred resources) 5.6 B lbs CuEq (JV indicated resources) 2.8 B lbs CuEq (JV inferred resources)Modified from Lookout Hill Technical Report 2012The mineral reserves are not additive to the mineral resources.Copper equivalent estimated using US$1.35/lb Cu, US$650/oz Au, US$10/lb Mo. A 0.6% CuEq cutoff was used.Phase 2 does not include mine plan for Lift 2 extractionEntrée carries a 20% interest in the mineralization of the Hugo North Extension and Heruga deposits TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 22
  23. 23. Entrée-OTLLC JV Deposit ResourcesEntrée ownership - 20% Carried Interest Hugo North Extension Heruga Cu-Au Cu-Au-Mo Probable Mineral 27Mt ore Reserves* 1.85% Cu and 0.72 g/t Au 1B lbs Cu / 0.53M oz Au Indicated Resources** 5.6B lbs CuEq 117 million tonnes*** - 1.80% Cu, 0.61 g/t Au 4.6B lbs Cu / 2.3M oz Au Inferred 2.8B lbs CuEq 17.4B lbs CuEq Resources** 95.5 million tonnes***- 1.15% Cu, 0.31 g/t Au 910 million tonnes*** 2.4B lbs Cu / 0.95M oz Au 0.48% Cu, 0.49 g/t Au, 0.014 % Mo 9.6B lbs Cu / 14M oz Au HUGOSee Lookout Hill Technical Report 2012. NORTH* The mineral reserves are not additive to the mineral resources. EXTENSION** Copper equivalent estimated using US$1.35/lb Cu, US$650/oz Au, US$10/lb Mo.*** 0.6% CuEq cutoff. HERUGA TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 23
  24. 24. Hugo North Extension & Heruga Moving ForwardCurrent • Premier Asset • High Grade – Long life • OT Phase I Construction 82% Complete • Entrée Carried to ProductionTimeline for Entrée’s Assets • First Ore from HNE1 2015 • 48 Year Potential Mine Life in LOM Case: HNE1 + HNE2 + Heruga • HNE & Heruga Deposits Remain Open TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 24
  25. 25. Exploration Potential TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 25
  26. 26. Argo and Zone III Gold TargetsShivee West (100% Entrée) • 2.5 km Magnetic Low Parallel to OT Trend • Low Sulphidation Epithermal Signature Argo Zone Hole 111 X Surface Sampling • Limited Drilling • High Grade Surface Samples Hole 112 Zone III Hole 123 42.4 g/t Au over 4 m 19.3 g/t Au over 3 m • 2011 Drill Results 1.82 g/t Au over 14 m (hole 112) including 9.32 g/t Au over 2 m 2.21 g/t Au over 3 m (hole 111) 2.08 g/t Au over 8 m (hole 123) including 5.60 g/t over 2 m TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 26
  27. 27. Current Copper Assets 12 10 8 7.3B lbs Cu Ann MasonBillions lbs 0.2 % Cu cut-off 6 8.0B lbs Cu 4 HNE & Heruga 2 4.1B lbs CuEq* 0.6% CuEq cut-off (with 3M oz Au) 1.1B lbs CuEq* HNE (with 0.5M oz Au) HNE & Heruga 0 Indicated Inferred*CuEq estimated using US$1.35/lb Cu, US$650/oz Au, US$10/lb Mo. Figures are NI 43-101 Compliant. TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 27
  28. 28. Advancing our Assets 100% Entrée Joint Venture Ann Mason, Nevada Hugo North Extension & Drilling 2012 Heruga, Mongolia PEA in late 2012 On-going Development to 2015 HNE 1 Shivee West, Mongolia First Development Production Exploration Argo Zone 2012 in 2015 · HNE 1 48 Year Potential Mine Life in LOM Case Exploration Drilling in 2012 TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 28
  29. 29. Copper Resources vs. Share Price $4.00 Share price Heruga PacMag 20 $3.50 Discovery Acquisition Billion Pounds Copper BMO Financing Rio-IVN $3.00 Exercise Mongolian 16 Share Price Windfall 2005 Tax Warrants $2.50 Rio IA & Investment Withdrawal of 12 Windfall Tax $2.00 HNE Discovery $1.50 8 IVN-Rio Deal $1.00 Ann Mason Updated IVN Deal Mineral Resources 4 $0.50 $0.00 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 Indicated (Billion lbs) Inferred (Billion lbs) TSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 29*0.2% Cu Cut-off
  30. 30. Mona Forster – Executive Vice President mforster@entreegold.com 604-687-4777 www.entreegold.comTSX:ETG | NYSE AMEX:EGI | FRANKFURT:EKA 30