Erdene Announces Start of Resource Delineation Drilling on the Zuun Mod Molybdenum Project

Erdene Announces Start of Resource Delineation Drilling on the Zuun Mod Molybdenum Project

April 25, 2007

Minarco Provides Project Recommendations


    HALIFAX, Nova Scotia, April 25 /Xinhua-PRNewswire/ --
Erdene Gold Inc. (TSX: ERD) today announced that it is
commencing its 2007 drilling program at its wholly owned
Zuun Mod molybdenum project in Mongolia based on advice
from Minarco Asia Pacific Pty Limited
("Minarco"), who have recommended a two-stage
delineation drilling program.  The company has signed
contracts with drilling, surveying and logistical companies
with two drill rigs now being mobilized to the project site
to begin drilling in early May.

    "With the current infrastructure build-up in the
south Gobi region as a result of the pending development of
world-class ore bodies, a booming Chinese steel industry and
the resultant strong growth in molybdenum consumption, we
believe the Zuun Mod molybdenum project is well positioned
for future development," said Peter Akerley, President
and CEO.  "We have carried out an extensive exploration
program at Zuun Mod and we are very excited to now advance
the project more aggressively to further define the
resources in the main target zones while testing additional
anomalies within this very large area of molybdenum
mineralization." 

    Minarco Review and Recommendations

    As announced on February 22, 2007, Erdene appointed
Minarco to evaluate strategic options and advise on project
planning and design for the Zuun Mod molybdenum project. 
Minarco is a prominent mining and energy industry advisor
in the Asia Pacific region and has recently been involved
in assisting China Molybdenum with the technical aspects of
its Initial Public Offering. As well, Minarco has worked on
various projects with many of China's major coal and steel
producers.

    Minarco's review, based on the drill results and other
data, indicates the Zuun Mod molybdenum project has the
potential to host reserves in the two most advanced zones
(Racetrack and Stockwork zones), and their extensions, of
similar tonnage to other major molybdenum projects being
currently developed else where in the world with average
grades equal to or greater than 0.05% Mo.  In addition,
Minarco suggests that there is the potential for a large
portion (approximately 40%) of the resource to be equal to
or greater than 0.07% Mo.  Proximity to surface varies in
each target area ranging from surface in the less explored
Intersection zone and starting from 50 to 96 metres of
surface continuing to a maximum tested depth of 435 metres
in the Racetrack and Stockwork zones where most of the work
to date has been concentrated.  In addition, Minarco
believes there is reasonable potential to identify
additional targets within the identified 7.5 kilometre long
by 600 metre wide molybdenum-in-rock surface geochemical
anomaly.

    Minarco has recommended a two-phase program:

    Phase I

    Phase I drilling will include a 200 metre spaced grid
drilling program on the Stockwork and Racetrack Zones. 
This drilling is expected to provide sufficient detail for
the definition of the extent of mineralization already
identified in these areas.  This phase will also include
further work intended to identify and test additional
targets within the 7.5 kilometre long molybdenum-in-rock
surface geochemical anomaly.  It is anticipated that a
minimum of 15 holes will be drilled at an average depth of
250 metres in Phase I. This program will provide greater
certainty for focusing the Phase II 100 metre spaced grid
drilling program which will be the basis for generating an
anticipated resource estimate for the Zuun Mod molybdenum
project during 2007.  

    Phase II

    The objective of Phase II is to define a resource
estimate based on 100 metre spaced drill holes to a depth
of approximately 250 metres.  The goal is to identify a
minimum 250 million tonnes with an average grade greater
than or equal to 0.05% Mo.  Targets would be determined
based on Phase I results with a focus on infilling areas
with higher grade, nearest surface mineralization while
defining the boundary to the resource areas. 

    Project Contracts

    Two diamond core drill rigs have been mobilized and are
expected to begin drilling by the first week of May 2007. 
Erdene has signed a contract with Falcon Drilling Mongolia
LLC for a minimum 3,500 metres drill project in Phase I. 
Surveying contractor Monmet Engineering Co., Ltd has been
retained to establish a grid at 100 metre spacing over the
southern portion of the Zuun Mod target area.  This grid
will be used for drill hole placement as well as a detailed
geophysical survey (magnetics) to be completed in the
immediate area of the two main zones.  The field-camp set
up is now being completed.

    Zuun Mod Summary
  
    (The reader is referred to the Zuun Mod plan map and
drill results that have been posted on the Erdene home page
at http://www.erdene.com )

    The Zuun Mod molybdenum project is located in
southwestern Mongolia, approximately 160 kilometres north
of the Chinese Mongolia border and approximately 200
kilometres from the Nariin Sukhait Coal Mine, Mongolia's
largest exporter of coal to China.  Rail has been
constructed from the Chinese industrial city of Jiayuguan,
Gansu Province, to the Mongolian border near the Nariin
Sukhait Coal Mine.  More than $4 million has been spent on
exploration at Zuun Mod since discovery including 30
diamond drill holes totaling 9,313 meters. 

    Molybdenum exploration at Zuun Mod is focused on the
southern half of the porphyry complex where a semi-circular
shaped continuous molybdenum-in-rock surface geochemical
anomaly has been traced over 7.5 kilometres over a width of
approximately 600 metres.  Sixteen of the 30 holes drilled
throughout the Zuun Mod porphyry complex have been
completed within this anomalous zone.  Drill hole spacing
ranges from approximately 100 metres to 2.5 kilometres
within this zone with all but one of the holes intersecting
thick sequences of altered and quartz stock-worked
lithologies with highly anomalous to potentially economic
molybdenum mineralization.  To date, exploration within
this area has focused on two main zones, the Racetrack and
Stockwork Zones.

    Racetrack Zone

    The core mineralized area within the Racetrack zone has
been intersected in four holes spaced over a distance of 330
metres.  The molybdenum mineralization comes within 54
metres of surface and has an average grade of 0.06% Mo over
an average 123 metre thickness.  A slightly lower average
grade of 0.05% Mo continues throughout each of the holes to
depth, averaging 295 metres.  This zone has been tested to a
maximum of 416 metres and all holes ended in significant
molybdenum mineralization.  The southern most hole in the
Racetrack zone (ZMD-13) returned a 20 metre section at 72
metres depth averaging 0.11% Mo within a 194 metre zone
from 56 metres to 250 metres of 0.06% Mo.  The area from
this hole to hole KKMD-09, 1.6 kilometres to the southwest
remains untested.  Hole KKMD-09 is located on the western
edge of the Stockwork zone and returned 56 metres of 0.04%
Mo starting at 70 metre depth.

    Stockwork Zone

    The Stockwork zone, located 1.6 kilometres southwest of
the Racetrack zone, includes several holes that have
intersected highly anomalous to potentially economic
molybdenum mineralization.  KKMD-03 returned 280 metres of
0.06% Mo from 46 metres to the bottom of the hole
terminating in a 53 metre zone averaging 0.09% Mo. This
higher grade zone included a 20 metre section that averaged
0.15% Mo.  In addition to the molybdenum mineralization,
hole KKMD-03 returned an average grade of 0.3g/t rhenium
("Re") from 98 metres to 228 metres, a 130 metre
interval.  KKMD-03 was the only hole to date analyzed for
rhenium which is a valuable heavy metal by-product of some
molybdenum ores used in the manufacture of microchip
processors.  

    Two holes have been drilled immediately north (100 to
150 metres) of KKMD-03 that intersected highly anomalous
molybdenum mineralization throughout, locally returning
0.1% to 0.4% Mo over 2 metres.  Holes ZMD-14 and KKMD-09
were drilled 150 metres and 550 metres west of KKMD-03,
respectively. Hole ZMD-14 retuned a 62-metre intersection
of 0.05% Mo and KKMD-09 returned 56 metres of 0.04% Mo
starting at 70 metres depth.  The Stockwork zone remains
open to the west and southwest. 

    Other Target Areas

    The Intersection zone is located to the northeast of
the Racetrack zone and covers an area approximately 1.5
kilometres by 1.3 kilometres in which three widely spaced
drill holes have been completed to date.  Strongly
anomalous results have been returned from each of the three
holes including a 10 metre intersection from surface of
0.05% Mo, 32 metres of 0.07% Mo and 2 metre intervals up to
0.27% Mo.

    All of the mineralized zones described above lie within
the eastern half of a 7.5 kilometre long semi-circular
shaped molybdenum-in-rock surface geochemical anomaly
located in the southern half of the Zuun Mod property.  The
western half of this anomaly has only been tested by two
drill holes in the extreme northwestern portion, one of
which returned anomalous molybdenum throughout.  This
geochemical anomaly remains untested over a 2.3 kilometre
area extending from hole KKMD-09 located in the Stockwork
zone, to the northwest, an area that is partially covered
by younger sediments.

    Molybdenum

    Global molybdenum consumption has increased
approximately 80% in the past 15 years and global
molybdenum consumption continues to grow at approximately
4.5% annually.  A number of factors support continued
growth in consumption at a similar level over the longer
term. These factors include continued strong growth in
China's demand, strong global growth in nearly all steel
end-use sectors, in particular, oil and gas pipelines,
stainless steel, aircraft and construction markets, and
continued strong demand in both metallurgical and chemical
segments. Molybdenum oxide is currently trading at
approximately US$30 per pound.
 
    About Erdene Gold Inc. 

    Erdene is a diversified mineral company with
exploration properties focused on high-growth commodities
and near-production assets. The company has a strong
portfolio of exploration properties in Mongolia focused on
base metals (copper and molybdenum), precious metals (gold
and palladium) and energy (coal and uranium). Erdene has
strategic alliances with Xstrata Coal to develop its coal
properties in Mongolia. Xstrata Coal is a significant
Erdene shareholder with a 4% ownership of the company's
common shares and has representation on its board of
directors. In addition, Erdene has near-term cash flow
opportunities in its North American assets, which includes
its 25% interest in the Donkin Coal Alliance in Nova Scotia
with Xstrata Coal Donkin Limited and agreements with J.M.
Huber Corporation and Rinker Materials as operators and
developers in the southeast U.S. for its kaolin clay and
aggregate projects respectively. Erdene has a current cash
and equivalent position of approximately $14.8 million with
64,311,127 common shares issued and outstanding and a fully
diluted share position of 73,230,852.

    Forward-Looking Statements

    Certain information regarding Erdene contained herein
may constitute forward-looking statements within the
meaning of applicable securities laws. Forward-looking
statements may include estimates, plans, expectations,
opinions, forecasts, projections, guidance or other
statements that are not statements of fact. Although Erdene
believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to have been
correct. Erdene cautions that actual performance will be
affected by a number of factors, most of which are beyond
its control, and that future events and results may vary
substantially from what Erdene currently foresees. Factors
that could cause actual results to differ materially from
those in forward-looking statements include market prices,
exploitation and exploration results, continued
availability of capital and financing and general economic,
market or business conditions. The forward-looking
statements are expressly qualified in their entirety by
this cautionary statement. The information contained herein
is stated as of the current date and subject to change after
that date. 

    For additional information visit Erdene's website at
http://www.erdene.com or contact the company via email at
[e-mail] 




    For more information, please contact:

     Peter C. Akerley, President and CEO, or
     Ken W. MacDonald, Vice-President North America and
CFO
     Tel:   [phone]