HALIFAX, NOVA SCOTIA -- (MARKET WIRE) -- 05/09/07 -- Erdene Gold Inc. (TSX: ERD) announced today that it has received a NI 43-101 compliant independent technical report (the "Technical Report") containing the resource estimate for the Donkin coal project from McElroy Bryan Geological Services Pty. Ltd. of Sydney, Australia. The project located on the coast of Cape Breton, Nova Scotia is jointly held under special license by Erdene (25% interest) and Xstrata Coal (75% interest). The Technical 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. The resource is outlined in more detail in the table below. The Technical Report will be posted on SEDAR at www.sedar.com.

"This resource estimate is part of a much larger project evaluation process currently being carried out in support of the pre-feasibility study on the Donkin coal project. That process, which includes extensive studies by leading engineering and environmental companies, is also nearing completion," said Peter Akerley, President and CEO of Erdene. "This independent resource estimate has confirmed a sufficiently large, high quality coal resource to support our 20 year mine schedule with additional resources should expansions be considered."

The resource estimate is made up of resources from three coal seams averaging between 1.8 metres and 4 metres in thickness. The Lloyd Cove seam and the Hub seam occur approximately 160 metres and 95 metres respectively above the main Harbour Seam. The following table gives a summary of the estimates for the Donkin coal resource which is classified as high volatile A bituminous coal.

Table 1 - Summary of the Donkin Coal Resource Tonnages

--------------------------------------------------------------
Seam          Indicated Resource             Inferred Resource
                    (metric tons)                 (metric tons)
--------------------------------------------------------------
Lloyd Cove            53,000,000                    82,000,000
--------------------------------------------------------------
Hub                   73,000,000                    57,000,000
--------------------------------------------------------------
Harbour              101,000,000                   115,000,000
--------------------------------------------------------------
Total                227,000,000                   254,000,000
--------------------------------------------------------------

Technical Report Highlights

- Eleven offshore boreholes, together with the extensive network of marine seismic survey lines, provided the quality and structural information to define the resource. These holes outline an area of approximately 8 kilometres (east-west) by 4.5 kilometres (north-south). The coal resources within the limits of drill data form the basis for the resource estimate.

- The Harbour seam which is the resource targeted for initial production contains 101Mt of indicated resources and 115Mt of inferred resources. This seam ranges from 1.8 metres to 3.6 metres in thickness and is relatively flat lying making it conducive to longwall mining operations.

- A 400 kilogram channel sample, extracted from the Harbour seam at the Cape Breton Miners' Museum site in Glace Bay, was analyzed in Australia in August 2006 by CCI Australia. The results of this analysis were used as a basis for quality comparisons with the earlier reported data.

- Studies have shown that the Donkin coal has excellent thermal as well as metallurgical (coking) properties. The characteristics that make the Donkin coal an excellent thermal coal source include its high calorific (energy) value, high volatile content, low total moisture content, low quartz content, low fly ash resistivity and low dust emissions. The coal also has many excellent coking coal properties including low ash, low phosphorus, and high crucible swell number and fluidity.

- Detailed studies on coke strength and viability of Donkin coal as a coking coal source are planned for bulk samples from the Harbour Seam that will be accessible at the base of the tunnels after de-watering is completed. Further studies, related to improving the level of understanding of the nature and distribution of sulphur in Donkin coal are also proposed. Coal marketing studies to identify the various options for the utilization of Donkin coal are already under way.

- The resource at Donkin is classified as high volatile A bituminous (less than 14,000 BTU/lb), high sulphur (less than 2%), medium ash (10%-15%) coal based on the American Society for Testing and Materials (ASTM) coal classification system. The high sulphur content is a feature of the Sydney Basin coals. However, processing methods (washing and flotation) are available to improve coal quality, specifically to reduce sulphur and ash content.

Pre-feasibility and Feasibility Study

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.

Following approval of the pre-feasibility program, managed by Xstrata Coal Donkin Management Limited, it is expected the next phase, including in-seam drilling and sampling, gas testing and monitoring and environmental assessment, will continue for approximately 14 months culminating in a feasibility study report. Upon receipt of the feasibility report a decision will be made whether to develop the Donkin resource for commercial production. The extensive testing of the Harbour seam by in-seam drilling will take place via a 15,000 metre, 10 hole program during the second half of 2007.

Qualified Person

Mr. Kerry Whitby, Managing Director of McElroy Bryan Geological Services (Sydney, Australia), author of the Technical Report and a Qualified Person as defined by NI 43-101, has reviewed and approved the technical information contained in this release. Mr. Chris Cowan, Vice President of Erdene Gold Inc. and a Qualified Person as defined by NI 43-101 has reviewed and approved the information contained in this release. Analysis of the Miners' museum channel sample was carried out by CCI Australia.

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% 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 $14.2 million with 64,527,627 common shares issued and outstanding and a fully diluted share position of 73,230,852.

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
902-423-6419

Erdene Gold Inc.
Ken W. MacDonald
Vice-President North America and CFO
902-423-6419
info@erdene.com
www.erdene.com