Erdene Updates Mongolian Exploration Programs

Drilling Under Way or Planned on Three Porphyry Copper-Gold and 
Molybdenum-Copper Targets

HALIFAX, June 9 /CNW/ - Erdene Gold Inc. (TSXV:ERD) today provided an
update on three of its current exploration programs in Mongolia focused on
porphyry copper-gold and porphyry molybdenum-copper targets.

Temuujin Porphyry Copper Gold Project

In early June, a 'TITAN-24 Deep Earth Imaging System' survey was
completed over the Temuujin II porphyry copper-gold prospect. Titan is a state-
of-the-art geophysical system developed and operated by Quantec Geosciences
Inc. of Canada. This system offers the potential to identify mineral anomalies
at depths ranging from near surface to greater than 1,000 metres below the
earth's surface. The survey was successful in identifying an Induced
Polarization (IP) anomaly that distinctly intensifies below the two holes
drilled at Temuujin II. This has been interpreted as confirmation of an
increase in the intensity of mineralization with depth. According to Quantec's
geophysicist, the extent and amplitude of the interpreted IP zones are
significant in terms of exploration for a deep porphyry copper target, based
on similar results which have been obtained over existing porphyry copper
deposits in Mongolia. Given these encouraging results, Erdene has committed to
test this anomaly with deep drilling when a drill rig capable of drilling to
the targeted depths becomes available.
Erdene's 2004 drilling program confirmed a porphyry-related deposit
environment, particularly at Temuujin II. Two holes were drilled 600 metres
apart at Temuujin II, both of which intersected porphyry-related alteration
and mineralization, including anomalous copper, gold, silver and zinc values.
Alteration increased in the system at depth accompanied by increased copper-
gold values, particularly in drill hole TDD-02 drilled to a depth of 540
meters. The alteration and mineralization encountered is typical of the upper
portion of a zoned porphyry system.
The Temuujin project is situated within the inferred northeast
continuation of the island-arc environment which hosts significant copper-gold
porphyry mineral deposits, including the world-class Hugo deposit at Oyu
Tolgoi. Erdene's exploration to date has focused on the 20 kilometre by 8
kilometre Temuujin district in the northeast part of the 95 kilometre long
Virgin claim block.

Zuun Mod Porphyry Molybdenum-Copper Project

A recently completed Phase I diamond drilling program at the Zuun Mod
porphyry molybdenum-copper project included nine holes totaling 2,672.8
metres. Final assay results are pending receipt of additional reports from SGS
Laboratories and a final report on the Quality Control and Analysis program.
However, visual results have confirmed the presence of moderate molybdenum
mineralization in drill core from the southeast portion of the property where
previous drilling (hole KKMD-03) had encountered significant molybdenum
mineralization. Based on the Phase I program, drilling will resume at Zuun
Mod, in July 2005 with closer spaced drilling to further delineate the
molybdenum targets in the southeast and to define the shape of the main
mineralized micro-granodiorite body at depth.
Previous exploration of the Zuun Mod prospect outlined potentially ore
grade molybdenum-copper-rhenium mineralization in the southeast portion of the
property. Drill hole KKMD-03 returned high (greater than 0.08%) molybdenum
grades over a thickness of 90 metres included within a much broader zone of
moderate grade (0.04% to 0.08%) molybdenum mineralization tolling 236 metres.
Moderate molybdenum grades were also reported in two widely spaced holes in
the area with zones range from 32 metres to 114 metres. This area is a portion
of a much larger 20 square kilometer hydrothermal alteration and
mineralization system with distinct molybdenum-copper zones surrounded by
large areas of 2% to 5% disseminated and veinlet pyrite.
The Zuun Mod property is located less than 200 kilometres from the
Chinese border in southwestern Mongolia, 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.

Ikh Tal - Erdenet West Porphyry Copper Molybdenum Project

Drilling commenced today on the Ikh Tal - Erdenet West prospect with an
initial three-hole drilling program totaling approximately 1,000 metres. The
drilling program is targeting near-surface coincident IP chargeability and
resistivity anomalies, approximately 1.5 kilometres long by 0.5 kilometres
wide, along an east-west trend in an area where previous satellite imagery and
surface geochemistry returned anomalous values. The target area has been
further strengthened by an IP dipole-dipole survey that has outlined
coincident chargeability and resistivity anomalies, which indicate the surface
geophysical signatures extend to depth. The drilling program will test these
anomalies and is expected to take several weeks
As announced on June 7, Erdene has entered into an exploration agreement
with Erdenet Mining Corporation (EMC) to explore for porphyry copper-
molybdenum deposits adjacent to their existing mine with a view to negotiating
a formal joint venture agreement within the next 90 days. Erdene controls a
significant land position immediately surrounding the EMC deposit, the second-
largest porphyry copper deposit in Central Asia and one of the world's largest
producing copper mines.

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 1.3 million hectares. Erdene is well funded
with a current working capital position of approximately $6.6 million. Erdene
has 26,232,135 common shares issued and outstanding and a fully diluted share
position of 30,928,910 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. Erdene disclaims any intention to update or revise this statement
of forward-looking information, whether as a result of new information, future
events or otherwise.

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