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Erdene Adopts Shareholder Rights Plan

Posted on: Friday, 7 March 2008, 15:00 CST

Erdene Gold Inc. (TSX: ERD) ("Erdene" or "Company") announced today that its board of directors ("Board") has adopted a shareholder rights plan ("Rights Plan"). The Rights Plan has been adopted to ensure the fair treatment of shareholders in connection with any take-over offer for the Company and is not intended to prevent take-over bids that treat shareholders fairly. The Rights Plan will also provide the Board with more time to fully consider any unsolicited take-over bid and to pursue, if appropriate, other alternatives to maximize shareholder value in the event of a take-over bid. The Rights Plan is not being adopted in response to any proposal to acquire control of the Company.

Under the Rights Plan, those bids that meet certain requirements intended to protect the interest of all shareholders are deemed to be "Permitted Bids". Permitted Bids must be made by way of a take-over circular prepared in compliance with applicable securities laws and, among other conditions, must remain open for sixty days. In the event a take-over bid does not meet the Permitted Bid requirements of the Rights Plan, the rights will entitle shareholders, other than any shareholder or shareholders making the take-over bid, to purchase additional common shares of the Company at a substantial discount to the market value at the time.

The Rights Plan is subject to approval by the Toronto Stock Exchange and will be presented for ratification by the shareholders at Erdene's 2008 Annual Meeting. If approved by the shareholders, the Rights Plan will have an initial term of three years.

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). Erdene has a strategic alliance with Xstrata Coal to develop its coal properties in Mongolia. 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 Ready Mix USA as operators and developers in the southeast U.S. for its kaolin clay and aggregate projects, respectively. Erdene has a cash position of approximately $8.8 million with 70,530,877 common shares issued and outstanding and a fully diluted share position of 79,737,352 common shares.

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. Diane E. Webber Director of External Relations and Communications 902-423-6419 info@erdene.comwww.erdene.com

SOURCE: Erdene Gold Inc.

Source: MARKET WIRE

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