HALIFAX, NOVA SCOTIA--(MARKET WIRE)--Nov 29, 2007 -- Erdene Gold Inc. (Toronto:ERD.TO - News) ("Erdene" or "Company") announced today that it intends to issue up to 3 million flow-through common shares at $1.40 per share for aggregate proceeds of up to $4.2 million. The Offering will be effected by way of a non-brokered private placement to eligible subscribers resident in Canada, subject to the receipt of all necessary regulatory and stock exchange approvals. In connection with the Offering the Company may pay finders fees up to 5% of the gross proceeds of the Offering. Erdene anticipates closing the Offering in two or more tranches, with the final closing anticipated to occur on or about December 12, 2007. The flow-through shares issued on the private placement will be subject to a hold period of four months and one day.

The proceeds of the financing will be used for exploration and evaluation of the Donkin Coal Resource Block located in Cape Breton, Nova Scotia. The exploration and evaluation program is expected to take 12 months to complete, at which time a decision will be made whether to develop the Donkin resource for production. Erdene has a 25% joint venture interest in the Donkin project with Xstrata Coal Canada Limited holding 75%. The Donkin project has an estimated 200 million tonnes of thermal and metallurgical coal and is considered the last remaining undeveloped block of high quality coal offshore Cape Breton. The Donkin project is being managed by Xstrata Coal Donkin Management Limited, a related party to Xstrata Coal Canada Limited.

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 strategic alliances 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 Cemex 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 $7.7 million with 65,809,439 common shares issued and outstanding and a fully diluted share position of 75,480,852.

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.
     Diane E. Webber
     Director of External Relations and Communications
     902-423-6419
     info@erdene.com
     http://www.erdene.com