Exeter Resources (AMEX:XRA TSX:XRA)

Exeter Resource Corporation is a Canadian public company listed on the Toronto Stock Exchange (TSX) under the symbol XRC and NYSE Amex exchange with the symbol XRA. Our focus is the discovery, evaluation and development of gold deposits in Chile and Argentina.

We have previously visited Exeter’s Don Sixto project in Mendoza Province, Argentina. The company had successfully
advanced the Don Sixto project to a 1.2 million ounce gold reserve. The project was put on hold due to the local
banning of “specialty chemicals.” Since our visit, Exeter has advanced two other exceptional projects and has attracted the attention of major operators in the mining industry. Exeter benefits by having $16 million in the bank, sufficient to remain viable and maintain a two year budget for exploration and development.

Exeter’s two projects include the potentially world-class Caspiche and high-grade Cerro Moro projects. Caspiche is in northern Chile, and is a potentially multi-million ounce gold (with copper) project, located in between Barrick Gold Corporation’s (NYSE: ABX) Cerro Casale gold-copper deposit and Kinross Gold Corporation’s (NYSE: KGC)Refugio Mine. The Cerro Moro project is a gold (with silver) project in the Santa Cruz Province of Argentina. Both Caspiche and Cerro Moro are located in areas with significant past mining history that remains amenable to mining.

We are intrigued by Exeter’s good fortune to have two projects; while being very different from each other, they may have characteristics which are attractive in different market cycles. Exeter plans to develop Cerro Moro into a gold mine producing 100,000 ounces per year. This should be of interest in the current market cycle due to its high-grade gold profile and potential for both low operating and capital costs. Caspiche, on the other hand, with potential to increase in size and capital costs, should be attractive with any upturn in copper prices with global recovery or serious investment in infrastructure. Caspiche should have good potential for either sale or joint venture to a major mining company.