Exeter Resource expands drilling campaign at Caspiche and Cerro Moro gold projects with 2 more rigs each

Exeter Resource Corp (AMEX: XRA, TSX: XRC) has received a total of C$54.5 million net from its recent financing, bulking up its coffers to C$81 million, which will allow it to raise the number of active drills to 10 to expand and confirm the known gold resources for Caspiche in Chile and Cerro Moro in Argentina, and to maintain a high level of exploration and mine development activity through 2011.

At the Caspiche gold-copper porphyry discovery, the company now plans 35,000 of drilling, up from the previously announced 20,000 metres program. Two rigs have been added to the four already being provided by Major Drilling. The program will continue to May 2010.

At the Cerro Moro gold project in Argentina’s Santa Cruz Province, and including the joint venture with state-owned Fomento Minero de Santa Cruz (Fomicruz), Exeter has increased the drilling program from to 50,000 metres from 20,000 metres, with two additional rigs joining the two already on site. The in-fill drilling program at Cerro Moro will continue as previously budgeted.

The goal remains to accelerate exploration at Cerro Moro and to meet a Q3-2010 timeline for a pre-feasibility study. At Caspiche, the goal is to drill test beyond the known resource and to complete sufficient in-fill drilling to generate indicated resources by Q3-2010. The timeline is being maintained for the completion of a development options study in Q4-2010.

Chairman Yale Simpson said "Given current gold prices and our strategic goals, it is essential that we maintain our timeline for a Caspiche development options study and a Cerro Moro pre-feasibility study. The new funds give us the ability to not only meet the timeline, but to increase the known gold resources for both projects”.

"Exploration and development budgets to the end of 2010 are presently being formulated. Importantly, we continue to build our development team as we progress towards mine development decisions," he added.

On the Caspiche project in Chile, Exeter recently announced an inferred mineral resource estimate of 1,117 million tonnes at a grade of 0.55 grams per metric ton gold and 1.12 grams per metric ton silver, including 1,017 million tonnes at a grade of 0.22 percent copper. This equates to in-situ inferred resources of 19.6 million ounces of gold, 40 million ounces of silver and 4.84 billion pounds of copper.

On the Cerro Moro project in Argentina, Exeter recently announced an initial inferred mineral resource estimate of 646,000 ounces gold equivalent at a grade of 18 g/t gold equivalent. The Company has drilled over 200 infill holes on the Escondida vein structure, principally to upgrade the sectors of the inferred resource that might be scheduled for early mining. Drilling to expand the deposit has recently been initiated and will continue through 2009. Engineering, environmental and infrastructure studies are being advanced ahead of a scoping study in 2010.

Exeter in late November successfully closed the C$50 million equity financing announced easrlier in the month under which Exeter Resource sold 8.55 million shares at C$5.85 to a syndicate of underwriters pursuant to a short form prospectus in Canada and a concurrent private placement to US institutional investors.  The underwriting syndicate raised a further C$7.5 million for the company through the full exercise of the over-allotment option.