Entrée Gold acquires PacMag Metals for US$6.3 million

On June 30, 2010, Entrée Gold Inc. (TSX:ETG; NYSE AMEX:EGI; Frankfurt:EKA) closed its acquisition of all issued shares and options of PacMag Metals Limited pursuant to the Australian Schemes of Arrangement ("Schemes") announced November 29, 2009. Implementation of the Schemes was overwhelmingly supported by the Shareholders and Optionholders of PacMag on June 4, 2010 and final approval was granted by the Federal Court of Australia on June 15, 2010, with the Schemes becoming effective on June 16, 2010. The aggregate consideration payable by Entrée for all PacMag shares and options is 15,020,801 Entrée shares and $6,346,665. The combined assets of Entrée Gold and PacMag will have a copper-gold-molybdenum focus with a significant worldwide presence in Mongolia, the USA, Australia, Canada and China. Entrée Gold was advised in this transaction by Fasken Martineau with a team that included Iain Mant, Andrew Gabrielson, Amanda MacAdams and Samuel Li.