Entrée Gold is confident that recent endorsements of the draft Investment Agreement for the giant Oyu Tolgoi project will provide a major boost to Mongolia’s mining industry.

Company president and CEO Greg Crowe says the in principle approval of the draft agreement by both the Cabinet and the country’s Security Council is positive news for the mining industry. The draft, which outlines the terms for development of Oyu Tolgoi, will now go to parliament for final approval.

He attributes the recent election of a majority government, the Mongolian People’s Revolutionary Party, in accelerating the negotiation process and providing new mining momentum in the country.

Greg Crowe says Entrée is encouraged by the 2008 exploration results at its Mongolian properties and plans to spend US$5 million this year toward efforts at its Heruga coal deposit as well as exploration at projects in China, New Mexico and Arizona.

Last year saw the company spend US$10 million on exploration, with the majority of funds devoted to efforts in Mongolia.

He says Entrée’s solid financial position, with about Can$54 million in its treasury, allows it to retain relative strength as it continues to evaluate potential acquisition opportunities.

www.entreegold.com