January 8, 2004

News Release: Entree Gold Discovers New Alteration Zone at Lookout Hill in Mongolia

Entree Gold Inc. (TSX-V: ETG - 'Entree'or the 'Company') is pleased to announce the discovery of a new area of quartz veining and alteration called the Southeast Zone on the Lookout Hill (Shivee Tolgoi) property.

Entree's Southeast Zone is situated near the southeast corner of Ivanhoe Mines'(NASDAQ: HUGO; TSX: IVN; ASX: IVN) Turquoise Hill (Oyu Tolgoi) concession and lies along trend from Entree's X-Grid gold area, located approximately four kilometers to the north-northeast. Recently reported sampling in the X-Grid area was conducted in a 200 meter by 900 meter, northerly-trending, mineralized zone. Twenty five samples were collected, with ten samples returning gold values greater than 0.5 g/t, five returning values greater than 1.0 g/t and one sample returning 22.3 g/t. 'The continuing discovery of new altered and mineralized zones again highlights the mineral potential of the entire area surrounding Ivanhoe Mines'Turquoise Hill property,'said Greg Crowe, Entree's President and CEO. 'This newly discovered Southeast Zone is in the initial stages of exploration and its location, along strike from the X-Grid gold area, emphasizes the strong north-northeast directional control to the main mineralized systems throughout the region. Although only early stage reconnaissance sampling has been completed in this area to date, the extensive nature of the alteration in association with geophysical and geochemical anomalies outlines the potential for the discovery of more significant mineralization both along strike and to depth. Additionally, excellent potential exists for the discovery of more altered and mineralized zones through continuing systematic exploration.'

Entree's Southeast Zone, on which preliminary reconnaissance work has been completed, is underlain by a sequence of mafic volcanics cut by syenitic and felsic intrusive units. Pervasive silica alteration and discrete quartz and alunite veining occur over an area of approximately 2,000 meters by 300 meters, along a north-northeast trend. One of six select samples of alteration and quartz veining yielded anomalous values of 375 ppb gold, 975 ppm lead, and 367 ppm zinc. This style of alteration, in association with a broad, weak to moderate induced polarization (IP) chargeability anomaly and with several areas that returned elevated values of gold, copper, arsenic and molybdenum in soils, may be indicative of significant underlying sulphide mineralization.

Compilation of 2003 Exploration Data Underway

Entree has commenced the compilation of data generated from its 2003 exploration program at Lookout Hill. Exploration included 156 line kilometers of ground geophysics, consisting of complete coverage by induced polarization (IP) along with partial coverage by gravity and magnetometer surveys. Soil geochemical surveys and geological mapping were also conducted along most grid lines. Ongoing information will be released as exploration results are received, tabulated and analyzed.

Exploration at Lookout Hill is under the supervision of Robert Cann, P.Geo., Entree's Exploration Manager, a qualified person as defined by National Instrument 43-101. Mr. Cann is responsible for the preparation of technical information in the Company's News Releases and disclosure documents. All rock samples were prepared and analyzed by SGS Analabs of Ulaan Baatar, Mongolia.

ABOUT ENTREE GOLD INC.

Entree Gold Inc. (www.entreegold.com) is a junior resource company engaged in the exploration and advancement of gold and copper prospects. The Company is a large landholder in one of the world's most promising gold-copper districts, located in Mongolia's south Gobi Desert near the Chinese border. Entree's 179,590 hectare Lookout Hill (Shivee Tolgoi) property completely surrounds Ivanhoe Mines'8,500 hectare Turquoise Hill (Oyu Tolgoi) holdings and is believed to host extensions to the northerly trending gold-copper system currently under exploration at Ivanhoe's Hugo Dummett Deposit. Entree has a 100% royalty-free ownership in Lookout Hill. Entree trades on the TSX Venture Exchange under the symbol 'ETG'.

This News Release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, concerning the Company's plans for its principal property in Mongolia. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company's exploration and development of its principal property in Mongolia, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties, including those described in the Company's periodic filings with the British Columbia Securities Commission. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not intend to update this information and disclaims any legal liability to the contrary.

Primoris Group Corporate Communications 866-368-7330 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Website: www.entreegold.com

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