HALIFAX, NOVA SCOTIA -- (MARKET WIRE) -- 05/15/07 -- Erdene Gold Inc. (TSX: ERD) announced today the Company's plans for its 2007 projects. The Donkin coal project feasibility study and the Zuun Mod molybdenum delineation drill program are the two most significant projects planned for 2007. The Company's 2007 budget of $11.5 million also includes drill testing of four copper (with gold, molybdenum and/or platinum) porphyry targets in Mongolia and the evaluation of aggregate projects in North America. Through five partnerships in North America and Mongolia, Erdene also receives the benefits of its partner's expenditures, the most significant of which is the Mongolian coal programs being funded by Xstrata Coal.

"The start of the Phase I resource delineation drilling program at our Zuun Mod molybdenum project last week marked the beginning of our 2007 field program in Mongolia where Erdene will be carrying out drilling programs on at least six of the Company's exploration properties," said Peter Akerley, President and CEO of Erdene. "In North America, work continues on the Donkin project where in-seam drilling and bulk sampling of the Harbour seam will get underway once dewatering is completed."

2007 Exploration Plans

Base and Precious Metals

Zuun Mod Molybdenum Project

Two diamond drill coring rigs are currently operating at the Zuun Mod molybdenum project carrying out Phase I delineation drilling on the Racetrack and Stockwork zones. As announced in a news release dated April 24, 2007, Erdene commenced its 2007 drilling program at its wholly owned Zuun Mod molybdenum project in Mongolia based on advice from Minarco Asia Pacific Pty Limited, who has recommended a two-phase delineation drilling program. Phase I drilling will include a 200 metre spaced grid drilling program on the Stockwork and Racetrack Zones. This drilling is expected to provide sufficient detail for the definition of the extent of mineralization already identified in these areas. This phase will also include further work intended to identify and test additional targets within a 7.5 kilometre long molybdenum-in-rock surface geochemical anomaly. It is anticipated that a minimum of 15 holes will be drilled at an average depth of 250 metres in Phase I. This program will provide greater certainty for focusing a Phase II 100 metre spaced grid drilling program which would be the basis for generating an anticipated resource estimate for the Zuun Mod molybdenum project during 2007.

Biger Copper-Gold-Platinum Project

Highly anomalous surface samples from the Biger prospect returned copper values up to 2.8%, accompanied by elevated palladium (1.37 g/t), gold (0.5 g/t), and platinum (0.29 g/t). Previous Erdene drilling intersected a 24 metre section that assayed 0.5% copper with elevated gold (86 ppb) and palladium (89 ppb) values. Subsequent geophysical surveying confirmed the drill hole intersected the fringe of a strengthening chargeability anomaly that will be drill tested during 2007. Multiple untested geophysical and geochemical anomalies exist within an extensive area covered by recent sediments with a radius of at least 6 kilometres from this drill intersection. Eight holes totaling approximately 2000 metres have been allocated in the 2007 budget to test the Biger copper-gold-platinum prospect with the program commencing prior to the end of the second quarter.

Mogoit and Tsagaan Ovoo Copper-Gold Projects

Erdene acquired the rights to the Mogoit and Tsagaan Ovoo properties from Xstrata Copper ("Xstrata") in January 2007. In 2006, Falconbridge completed mapping, soil and rock sampling, and geophysical surveys to test for a porphyry-style copper-gold system beneath the mineralized surface showings on both properties. This work identified target areas characterized by coincident geophysical (IP and magnetic) and geochemical (rock and soil) anomalies in areas of historic shallow pits and trenching. Rock samples collected by Falconbridge and Erdene from these areas have returned significant copper (up to 14%) and gold (up to 11 g/t) values. Surface exploration including geologic mapping and geochemical surveying will be initiated in the second quarter to further define occurrences providing targets for a 2000 metre drill program planned for the third quarter of 2007.

Erdenet Copper Project

Results from the 2006 drilling program indicate the extension of both near surface copper oxide and deeper copper sulfide porphyry copper mineralization onto the Company's adjoining property to the southeast (South-Central Baglai) as well as the northwest (Northwest Extension) of Erdenet Mining Corporation's ("EMC") copper-molybdenum mine. Follow-up drilling of these results will be carried out in the third quarter of 2007 along with drill testing of a new target (Tsagaan Chuluut) 4 kilometres to the northwest of the EMC open pit. This area is characterized by silicification and alunite alteration coincident with a large magnetic low, high chargeability and low resistivity. It is anticipated that the program will include four shallow holes (less than 150 metres) and a deeper hole in the Tsagaan Chuluut prospect.

Grassroots and Generative Projects

During the 2007 field season, several of Erdene's other projects will receive evaluations including the Bayan Kharaat copper-molybdenum prospect, the Wild Mountain massive sulfide target, Tsenkher Gol gold project, and the Temuujin copper-gold prospect. A total of 2000 metres of diamond drilling has been reserved in the 2007 budget to follow-up on these or other projects generated by the company.

Coal - Mongolia

Galshar Coal Project

Based on the 2006 drilling results, Erdene and Xstrata Coal Canada Limited ("Xstrata Coal") are advancing the Galshar project to the resource delineation stage. The start of a 30-hole drilling program is planned for the second quarter of 2007 to further define the coal seams intersected to date and confirm the coal quality. It is anticipated that this program will culminate in the production of a NI 43-101 compliant resource estimate for the Galshar coal project. Erdene believes that Galshar has the potential to be the site of a large-scale open-pit operation of thermal grade coal with a low stripping ratio. This program in being fully funded, through to the feasibility stage, by Xstrata Coal to enable them to earn a 75% interest in any coal project that is developed.

Coal North - America

Donkin Coal Project

The dewatering and the tunnel clearing and refurbishing programs are ongoing. The tunnel access program is at approximately the 2,000 metre mark of the 3,500 metre twin tunnel length. Access to the targeted Harbour Seam coal face is anticipated during the second quarter of 2007 which will be followed by an extensive, 15,000 metre, 10-hole in-seam exploratory drilling program as well as a bulk sampling program during the second half of 2007.

The Donkin Coal Alliance partners recently received an independent technical report on the resource estimate for the Donkin coal project. The report identified an indicated resource of 227Mt (million metric tons) and an inferred resource of 254Mt of "High Volatile A Bituminous Coal" within the confines of the Donkin coal resource block.

A pre-feasibility study is currently in its final stages and is being completed by leading experts in the coal quality, environmental and mining fields including Runge Consulting who is responsible for producing the final pre-feasibility report. It is anticipated that details of the study, excluding commercial in-confidence information, will be released by the Company following review and approval of the project pre-feasibility report by the end of the second quarter 2007. The project, located on the coast of Cape Breton, Nova Scotia is jointly held under special license by Donkin Tenements Inc. a company which is owned by Erdene (25% interest) and Xstrata Coal (75% interest).

Industrial Minerals North America

Sparta Kaolin Project

Erdene controls a multi-million ton high-brightness primary kaolin resource in Georgia, USA. The Company has entered into an agreement with J.M. Huber Corporation ("Huber") to develop the Company's kaolin resources. Huber began commercial production from the Company's kaolin deposits in late 2004. During the first quarter 2007, Huber mined 26,533 tons from open pits on the Company's Lucky Area holdings in Hancock County. The Company continues to work with Huber and other third parties to identify products and markets to increase utilization of the raw material and therefore increase revenues and volumes mined and produced.

Maddox Aggregate Project

The Company owns the Maddox granite aggregate project in Georgia, USA. Rinker Materials Corporation ("Rinker") has been granted an exclusive right by the Company to mine, process, and sell aggregate from the Maddox property subject to an industry competitive royalty. The Maddox project is being developed as a granite quarry, primarily to serve the southeastern US markets by rail. Rinker is a major global company and one of the largest suppliers of construction aggregates in the southeast U.S. Maddox has an estimated start-up production of one million tonnes of granite aggregate per year with a design capacity of four million tonnes. Based on current production projections, the Maddox quarry would have a lifespan of at least 20 years.

Rinker has designed a quarry mining plan, processing plant and facilities, and produced an environmental impact plan. Rinker has also acquired additional land adjacent to the Maddox property to secure rail access to the site. A final permit decision is expected during the third quarter of 2007. The construction phase is expected to be completed with production commencing nine to twelve months thereafter. Rinker is responsible for fully funding the development program.

Southeast US Aggregate Project

In addition to the Maddox aggregate project, Erdene has budgeted for additional acquisitions targeting the southeast US aggregate market. The Company plans to seek sand and aggregate sites strategically located to access the growing southeast US aggregate market with a view to permitting the sites either through agreements with property owners or direct acquisition of the lands.

First Quarter Financial Results

Erdene's quarterly financial statements were filed today with the appropriate regulatory authorities and are available on the company's website at www.erdene.com or on SEDAR at www.sedar.com. The following are some of the financial highlights for the first quarter 2007.

- Erdene had cash and cash equivalents of $2.919 million at quarter-end compared to $3.048 million at December 31, 2006. In addition, the Company had cash restricted for flow-through expenditures of $2.799 million at quarter-end compared to $4.599 million at December 31, 2006.

- Exploration and operating expenses during the three months ended March 31, 2007 were $489,525 compared with $398,513 for the same period in 2006.

- The loss for the three months ended March 31, 2007 was $253,047 or $0.01 per share compared with a loss of $676,966 or $0.02 per share during the same period in 2006.

- During the first quarter the company announced it had signed an

agreement with National Bank Financial ("NBF") in which NBF agreed to act as lead underwriter on behalf of a syndicate of underwriters which included Wellington West Capital Markets Inc. ("Underwriters"), pursuant to which the Underwriters agreed to purchase, on a bought deal basis subject to certain conditions, 10,000,000 common shares of Erdene at a price of $1.00 per share resulting in gross proceeds to Erdene of $10,000,000 ("Offering"). On April 12, 2007 the private placement was completed. The net proceeds of the Offering will be used to advance Erdene's Zuun Mod molybdenum project and for general exploration and corporate purposes.

Corporate Update

The Annual and Special Meeting of the shareholders of Erdene was held on May 10, 2007 in Halifax. The entire board of directors was reelected with the exception of Wayne Beach who recently resigned from the board and did not stand for reelection. Mr. Beach indicated that his decision to resign was made for personal reasons. In his address to the shareholders, Peter Akerley thanked Mr. Beach on behalf of the shareholders and the board for his outstanding service to Erdene since 2003.

On May 11, 2007 an aggregate of 1,100,000 incentive stock options were granted to 12 officers, directors and employees of the Company pursuant to Erdene's Incentive Stock Option Plan approved by the shareholders at the Annual and Special Meeting. The options are exercisable for a period of 5 years at $1.35 per share. No single option-holder was granted more than 200,000 options.

About Erdene Gold Inc.

Erdene is a diversified mineral company with exploration properties focused on high-growth commodities and near-production assets. The company has a strong portfolio of exploration properties in Mongolia focused on base metals (copper and molybdenum), precious metals (gold and palladium) and energy (coal and uranium). Erdene has strategic alliances with Xstrata Coal to develop its coal properties in Mongolia. Xstrata Coal is a significant Erdene shareholder with a 4.65% ownership of the company's common shares and has representation on its board of directors. In addition, Erdene has near-term cash flow opportunities in its North American assets, which includes its 25% interest in the Donkin Coal Alliance in Nova Scotia with Xstrata Coal Donkin Limited and agreements with J.M. Huber Corporation and Rinker Materials as operators and developers in the southeast U.S. for its kaolin clay and aggregate projects respectively. Erdene has current cash and equivalent position of approximately $14.4 million with 65,112,627 common shares issued and outstanding and a fully diluted share position of 74,930,852.

Forward-Looking Statements

Certain information regarding Erdene 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 Erdene 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. Erdene cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what Erdene 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 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.

Contacts:
Erdene Gold Inc.
Peter C. Akerley, President and CEO
Ken W. MacDonald, Vice-President North America and CFO
912-423-6419
info@erdene.com
www.erdene.com