Erdene-IUC Uranium Joint Venture Defines Eight Targets in Mongolia

Drilling to Begin in September

HALIFAX, Sept. 6 /CNW/ - Erdene Gold Inc. (TSXV:ERD) today announced
results of the uranium exploration reconnaissance program that has been under
way in Mongolia since April of this year. The program has identified eight
high priority targets on three properties in southern Mongolia. A drilling
program, designed to test these targets, is scheduled to begin in mid-
September.
The 2005 exploration program is operated by Erdene as part of the Erdene-
International Uranium Corporation (IUC) Mongolia joint venture, exploring for
sedimentary hosted uranium deposits.
As a result of an initial reconnaissance program, three properties were
chosen for more detailed surface exploration, Durvuljin Uul, Galshar Uul and
Yant. These properties are characterized by well-defined zones of high
radiometrics hosted within clastic sediments or carbonaceous siltstone. Eight
separate anomalous radiometric zones have been identified within the three
properties. Target structures are believed to represent efficient conduits for
oxygen-rich surface waters that can leach and mobilize metals to form roll-
front type uranium deposits suitable for in-situ leach (ISL) mining. The
Erdene-IUC joint venture controls in excess of 1 million hectares in the area
of the central sedimentary basins in southeastern Mongolia.

High Priority Target Areas
The following is a brief description of the high priority target areas
identified to date:

Durvuljin Uul: This property is located approximately 50 kilometres
northeast of the town on Sainshand and is situated within the defined
uraniferous Sainshand Basin which is host to the Nars uranium deposit, located
about 12 kilometres to the southwest. Three target areas have been identified
on this property the largest of which extends over an area of 800 metres by
500 metres. The targets are characterized by highly anomalous radiometrics
measuring from 500 to 9,800 tcps (total counts per second), spectrometer
values of 50 to 350 ppm uranium and rock geochemical assays ranging from 100
to 1,300 ppm uranium. Anomalous areas are typically underlain by mottled
sandstone and siltstone. The property was previously explored during Russian-
Mongolia reconnaissance exploration programs which included wide spaced
drilling (more than 8 kilometres spacing) which is reported to have returned
anomalous uranium mineralization in all holes within which six mineralized
sandstone beds were identified.

Galshar Uul: This property is located in the northeast part of the large
Galshar Property Block located 200 kilometres north of the Chinese border.
Three target areas have been identified along a 2 kilometre long by 300 metre
wide, northwest-trending zone of high radiometrics ranging from 500 to 2,700
tcps with spectrometer readings of 200 to 300 ppm uranium. This orientation
conforms to regional structural trends and accordingly infers a structural
and/or stratigraphic control for possible mineralization.

Yant: This property is located approximately 60 kilometres west of
Sainshand, where two anomalous target areas have been defined. Maximum
scintillometer reading of 4,500 tcps within unconsolidated carbonaceous
siltstone have been identified. Two grab samples returned assays of 106 ppm
and 101 ppm uranium while soil samples have returned assays of up to 984 ppm
uranium.

Planned Drilling
A reverse-circulation drilling program, including a minimum of 2,000
metres, will begin in mid-September to test the defined target areas. The
program will test for uranium mineralization and establish local and regional
stratigraphy to depths of 100 to 150 metres. A minimum of two drill holes will
be completed in each of the eight defined zones.

In Situ Leach Mining
The Erdene-IUC joint venture is exploring for uranium deposits suitable
for the in-situ leach method of uranium extraction (ISL), also known as
solution mining. These types of deposits occur in permeable sand or
sandstones, confined above and below by impermeable strata. Most uranium
mining in the USA is now done by in situ leach (ISL) method which involves
leaving the ore where it is in the ground, and using liquids which are pumped
through it to remove the uranium from the ore by leaching. Consequently there
is little surface disturbance and no tailings or waste rock generated.
However, the ore body needs to be permeable to the liquids used, and located
so that they do not contaminate ground water away from the ore body.
Approximately 13% of world uranium production is by ISL.

Erdene-IUC Joint Venture Agreement
IUC has the right to earn a majority (65%) interest in any uranium
resource identified on Erdene's million plus hectare uranium licenses located
in south-central Mongolia by spending a minimum of $6 million over a period of
four years. Erdene is the operator of the IUC funded program for 2005.

Options Granted
Erdene has issued an aggregate of 250,000 incentive stock options to two
of its directors. Each option entitles the holder to acquire one common share
of Erdene at $0.85 per share during the period ended August 5, 2010.

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$6.4 million as of June
30th, 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.

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responsibility for the adequacy or accuracy of this news release.