Erdene Identifies Multiple Drill Targets at Zuun Mod Copper - Molybdenum Prospect

Geophysical Program Completed, Drilling Underway

HALIFAX, April 13 /CNW/ - Erdene Gold Inc. (TSXV:ERD) today announced it
has completed the first phase of exploration at its Zuun Mod porphyry    
copper-molybdenum project in Mongolia and has initiated drilling.
The property is located less than 200 kilometres from the Chinese border,
where rail and high voltage power generation facilities are being constructed
to service the Jiaguan Iron and Steel complex located in China's Gansu
Province. The facilities are being built to source raw materials from
Mongolia's Gobi desert region.
The recently completed geophysical and geologic mapping program built on
previous exploration to provide much more detailed information on structure,
alteration and lithological distribution. Geomaster Ltd. has completed a    
112-line kilometre gradient and a 20-line kilometre, 200-metre dipole-dipole
survey over a four-kilometre by seven-kilometre portion of the Zuun Mod
property. It is apparent from the new survey data that the geophysical data
and interpretation will result in improved drill hole target selection.
Initial areas to be drill tested are located in the southeastern half of the
Zuun Mod complex and include the Racetrack Zone, the Stockwork Zone and the
Intersection Zone (see maps at www.Erdene.com).

The Racetrack Zone: The "Racetrack" occupies the central portion of an
elongate stockwork - alteration zone, anchored to the southwest by the
Stockwork Zone and to the northeast by the Intersection Zone. A strong   
copper-in-soil anomaly covers the entire area locally exceeding 500 ppm. The
Racetrack is characterized by a quartz ring, which has a saucer-like profile
with a diameter of approximately 300 metres. It is believed to represent a
vein system related to radial fractures or remnant of a quartz cap. Structures
resembling unidirectional solidification textures (UST) and a zone of vuggy
quartz are present within the structure, which has an argillic and pyritized
granosyenite at its core. The ring is coincident with an area of moderate to
high gradient and also a dipole-dipole chargeability anomaly. The nearest hole
(KKMD-08, Gallant Minerals/WMC, 2003), approximately 200 metres west, was
intensely mineralized from 88 metres to the end of the hole at 279 metres,
averaging 530 ppm molybdenum and 560 ppm copper with strong secondary biotite,
magnetite clots and locally 100% of the core replaced by K-spar flooding.

The Stockwork Zone: Located approximately 1.2 kilometres south of the
Racetrack, the Stockwork Zone is characterized by local intense quartz
stockwork and sheeted vein systems within biotite granodiorite and
granosyenite with copper and molybdenum mineralization related to the veins.
The stockwork zone occurs within a broad area of high chargeability and
moderate-low resistivity. Previous drilling in the area (Gallant Minerals/WMC,
2003) included hole KKMD-03 which returned two intervals of 38 metres each
that average 0.1% molybdenum with 0.46 to 0.49 ppm rhenium. Weaker copper
mineralization is also present with a few isolated intervals (two metres) in
the 0.25% to 0.61% range. The nearest hole, 500 metres west returned wide
sections of highly anomalous copper and molybdenum while no drilling has been
undertaken to the south or east where the target area continues under
Cretaceous and recent cover.

The Intersection Zone: It is apparent from the mapping that there is a
strong structural control to both intrusion emplacement and subsequent
alteration dominated by quartz-sericite-pyrite (QSP). The three dominant
structural systems are; NE-SW, NW-SE, and E-W. The NE and NW systems are
interpreted as a conjugate set likely related to near N-S compression, whereas
the E-W system appears to be later and superimposed resulting in an intense
fracture-cleavage in some places. It is apparent from the preferred NE and NW
orientation of QSP-altered zones that mineralized fluids were focused within
these fracture systems. This is also inferred by the fact that the best-
mineralized holes (3, 4, 5, 7, 13, 14) are situated within these trends. It is
significant that these structures intersect in an untested area and that the
copper and molybdenum in rock geochemical results in this zone are
coincidently anomalous.

Summary:
--------
Previous exploration of the Zuun Mod prospect outlined an extensive area
of hydrothermal alteration and mineralization with distinct copper-molybdenum
zones surrounded by large areas of 2% to 5% disseminated and veinlet pyrite.
Although the outcrop is somewhat poor, a core area measuring four kilometres
by one kilometre was outlined that had intensely altered (quartz-sericite-
pyrite) biotite granite/granodiorite porphyry with local stockwork       
quartz-sulfide veining and UST's. Thirteen widely spaced and relatively
shallow holes averaging 250 metres indicate the potential for very significant
volumes of mineralization in strongly altered (potassic characterized by
abundant secondary biotite) andesitic wallrocks and argillic to weak sericitic
in the intrusive rocks. Mineralization ranges from potentially ore grade
molybdenum/rhenium/copper mineralization in the Stockwork zone (KKMD-03) to
wide, low grade copper zones north of the intersection zone in the 0.1% to
0.2% range with up to several hundred ppm molybdenum. The initial drill
program is planned to include a minimum of six holes averaging a depth of   
400 metres each.

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$7.6 million. Erdene has
26,232,135 common shares issued and outstanding and a fully diluted share
position of 30,828,910 common shares. Erdene Gold Inc. trades on the TSX
Venture Exchange under the symbol ERD.

Forward-Looking Statements
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Forward-looking statements may include estimates, plans, expectations,
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contained herein is stated as of the current date and subject to change after
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of forward-looking information, whether as a result of new information, future
events or otherwise.

For additional information visit Erdene's website at www.erdene.com or
contact the company via email at info(at)erdene.com.

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