Erdene Expands Gold Target at Tsenkher Gol in Northeastern Mongolia

HALIFAX, Sept. 29 /CNW/ - Erdene Gold Inc. (TSXV:ERD) today announced
encouraging results from its initial assessment of the Tsenkher Gol gold
project located in northeastern Mongolia. Multiple gold anomalies have been
identified underlain by gold bearing altered granites and quartz veins.
"We are very excited by our first pass at Tsenkher Gol. The style of
mineralization, size of the target areas and location relative to
infrastructure are all very positive aspects of the Tsenkher Gol project,"
said Peter Akerley, President and Chief Executive Officer of Erdene Gold.
Situated within the South Hentii Gold Belt, the Tsenkher Gol project is
targeting granite hosted disseminated gold mineralization geologically similar
to Centerra Gold's Boroo Mine. The property is less than 200 kilometres from
Ulaanbaatar and is accessible by a newly paved highway. The mineralization is
hosted in a quartz-sericite-pyrite (QSP) altered Carboniferous granitoid.
Erdene recently completed mapping, geochemical rock and soil surveys and a
magnetometer survey. The program has identified two main zones (Altan Suult
and Khond Uul) characterized by high grade gold veins and lower gold values
associated with disseminated sulfides in altered granite. Active placer gold
mining operations occur in drainages adjacent to the Tsenkher Gol property.

Altan Suult Zone
----------------
A program of geological mapping and rock chip and soil geochemistry was
completed at Altan Suult in August 2005. Mapping indicates that the QSP
alteration zone has dimensions of 500 by 1500 metres, and remains open along
strike to the east. In addition, this zone was outlined by a corresponding
area of highly anomalous soil results ranging from 0.02 to 4.02g/t gold. Rock
geochemical results included 4 metres of 0.32 g/t gold and a grab sample of
0.22g/t gold, and confirmed the widespread high gold anomaly reported by
Gallant Minerals Mongolia Limited (GMML). Visible gold was also noted in
quartz vein material derived from old trench dumps, confirming previous
reports.
GMML completed preliminary work on the site in 2000 which included
sampling of previously excavated trench dump material. Results from analysis
of 107 trench-dump samples, which included grab and trench samples, returned
values from detection limit, 1ppb (0.001g/t) gold, to a maximum of 179.0g/t
gold and 56.2g/t silver from a quartz vein grab sample. Continuous 2 metre
sampling returned highly anomalous gold values, including 5.45g/t gold over 2
metres with adjacent altered granites averaging 0.13g/t (max 0.27g/t) over 22
metres. Individual trench samples included 2.5 metres of 6.9g/t gold, 2 metres
of 5.45g/t gold and 2 metres of 1.5g/t gold.

Khond Uul Zone
--------------

Gold in soil results and alteration mapping have resulted in the
definition of a new zone (Khond Uul). This prospect is approximately 2.5
kilometres northeast of Altan Suult and is characterized by a 200 by 3500
metre, northwest-trending gold-bearing alteration zone. The zone remains open
along strike to the northwest. Anomalous soil samples with concentrations of
0.05 to 0.17g/t gold, with corresponding anomalous arsenic values, were
returned along this 3500 metre long zone. In the southwest end of the zone, a
12 metre continuous chip sample returned 1.4g/t gold. This sample was located
along a previously unidentified gold-bearing zone in altered granite.

Tsenkher Gol Exploration Plans
------------------------------
An extensive program of detailed rock-chip sampling, trenching and
gradient induced polarization is now being initiated on the main targets. In
addition, there are a number of other discrete and lesser explored targets
that will be further mapped and sampled during this fall exploration program.

Qualified Person
This press release has been prepared under the supervision of Michael
Corey, P.Geo., who serves as the qualified person under National Instrument  
43-101. All samples are assayed at SGS Laboratory in Ulaanbaatar, Mongolia.  
In addition to SGS Laboratory internal checks, Erdene Gold incorporates a
QA/QC sample protocol utilizing prepared standards, sample splits and
duplicates.

About Erdene Gold Inc.
Erdene Gold Inc. is a mineral exploration company focused on Mongolia
with over 20 precious and base metal projects that include 47 licences
covering in excess of 840,000 hectares, as well as 19 uranium licences and
applications covering more than 1.1 million hectares. Erdene is well funded
with a working capital position of approximately CDN$6 million as of August
31st, 2005. Erdene has 27,232,135 common shares issued and outstanding and a
fully diluted share position of 32,188,910 common shares. Erdene Gold Inc.
trades on the TSX Venture Exchange under the symbol ERD.

Forward-Looking Statements
Certain information regarding the Company 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 the Company 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. The Company
cautions that actual performance will be affected by a number of factors, many
of which are beyond the Company's control, and that future events and results
may vary substantially from what the Company 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 Company's 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 www.erdene.com or
contact the company via email at info(at)erdene.com.

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.