Extorre Gold Mines - www.extorre.com 

An Emerging Gold & Silver Producer in Argentina

Extorre Gold Mines Limited is a Canadian public company listed under the symbol XG on the Toronto Stock Exchange (TSX) and the NYSE-AMEX Exchange.

News Flash: As of July 12th, 2011 six drill rigs are operating on the Cerro Moro property with five rigs drilling at the Zoe discovery and one rig testing new vein targets.

Cerro Moro Gold-Silver Project, Argentina (100% ownership)

Cerro Moro is Extorre's flagship gold-silver property located in mining friendly Santa Cruz Province. The exploration priority is to expand the known mineral resources with an aggressive +100,000 metres drilling campaign. Five drill rigs are operating at the recent Zoe Discovery. The discovery drill holes on the Zoe Vein returned high grade to "bonanza" grade silver- gold mineralization within a target zone +2km in strike length. News releases will report further Zoe results and assays from other zones referred to as Gabriela, Esperanza-Nini, Carla and Martina.

Extorre has achieved an important milestone with the formal approval of its Environmental Impact Assessment from the Santa Cruz provincial government. This approval permits Extorre to proceed with mine development at Cerro Moro. See the press release dated May 17th, 2011 for more details.

Extorre announced an additional 10 of 27 diamond drill holes completed at the new Zoe discovery at Cerro Moro, Santa Cruz Province, Argentina. Assays were up to 8.60 meters of 39.9 grams per tonne gold + 4056 grams per tonne silver (107.5 grams per tonne gold equivalent). See the press release dated May 4th, 2011 for more details.

On August 4th, 2011 an updated NI 43-101 compliant mineral resource estimate was released as part of an updated preliminary economic assessment for Cerro Moro:

Indicated Category: Category 443,000 oz. gold + 24.2 million oz. silver (927,000 oz. gold equivalent*), plus Inferred Category: 178,000 oz. gold + 10.8 million oz. silver (396,000 oz. gold equivalent*))

The Indicated Category resource includes 757,000 oz gold equivalent* from the Escondida and Loma Escondida sectors at an average grade of 35 g/t gold equivalent*, a grade considered exceptional by industry standards. The silver contribution is high, accounting for approximately one-half of the total metal value. Additional Inferred Category resources of 396,000 ounces gold equivalent* are also reported from Cerro Moro.

Extorre released the results of an updated preliminary economic assessment ("PEA") of the Cerro Moro Project on August 4th, 2011. The PEA highlighted the robust economics of a future mine expected to produce an average of 206,300 gold equivalent* ounces annually during the first 3 years of operations. The cash cost per ounce is estimated to be US$236 per ounce gold equivalent*. Initial CAPEX (Direct Costs) $US 150M + $US 26M recoverable VAT, Initial Indirect Costs (EPCM, Owners Costs) $US 32M The project economics were calculated using gold and silver prices of US$1320/ounce and US$26/ounce, respectively.

A NI 43-101 compliant Preliminary Economic Assessment (PEA) for Cerro Moro can be accessed from this website. The report provides estimated mine operating and capital costs for a potential 1000 tonne per day mine to deliver +200,000 ounces gold equivalent* per annum over the initial three years of operations. An Environmental Impact Assessment that incorporates a 750 tad mining scenario was submitted to Provincial authorities in September 2010 and was approved in May 2011. The Santa Cruz Mines Ministry has indicated that the approval time for an addendum to expand throughput on an existing EIA is considerably shorter than that for a new EIA submission.

*Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metallurgical recovery.

Six drill rigs are currently dedicated to new resource drilling at the Cerro Moro project, with particular emphasis being placed on the evaluation of the recent high grade gold-silver discovery at Zoe. An updated mineral resource estimate for the Cerro Moro project is scheduled to be released in Q4-2011, and is expected to include maiden mineral resources for the Zoe, Carla, Martina, and Esperanza Northwest-Nini sectors. The drill testing of further new targets at both the Cerro Moro project and on select Santa Cruz Regional prospects is also expected to be undertaken during the second half of 2011.

Outside of the Cerro Moro project area, Extorre has completed drilling to realise the discovery potential of its 100% owned Falcon, Union Domes and Puntudo gold-silver properties.

A Cerro Moro updated preliminary economic assessment is being performed by GR Engineering Services, Australia. The Study is scheduled for completion in December 2011.

Extorre owns 100% of the Don Sixto gold-silver deposit in Mendoza Province, Argentina. In June 2007, the Mendoza government passed legislation that restricts mining in Mendoza Province. The project has been placed on hold, although the Company is optimistic that in due course mining will be permitted for projects that can be demonstrated to be both economically viable and sustainable for communities.

Cerro Moro: Extorre’s Flagship Project

On August 4th, 2011 an updated NI 43-101 compliant mineral resource estimate was released as part of an updated preliminary economic assessment for Cerro Moro:

Indicated Category: Category 443,000 oz. gold + 24.2 million oz. silver (927,000 oz. gold equivalent*), plus Inferred Category: 178,000 oz. gold + 10.8 million oz. silver (396,000 oz. gold equivalent*))

The Indicated Category resource includes 757,000 oz gold equivalent* from the Escondida and Loma Escondida sectors at an average grade of 35 g/t gold equivalent*, a grade considered exceptional by industry standards. The silver contribution is high, accounting for approximately one-half of the total metal value. Additional Inferred Category resources of 396,000 ounces gold equivalent* are also reported from Cerro Moro.

Extorre released the results of an updated preliminary economic assessment ("PEA") of the Cerro Moro Project on August 4th, 2011. The PEA highlighted the robust economics of a future mine expected to produce an average of 206,300 gold equivalent* ounces annually during the first 3 years of operations. The cash cost per ounce is estimated to be US$236 per ounce gold equivalent*. Initial CAPEX (Direct Costs) $US 150M + $US 26M recoverable VAT, Initial Indirect Costs (EPCM, Owners Costs) $US 32M The project economics were calculated using gold and silver prices of US$1320/ounce and US$26/ounce, respectively.

A NI 43-101 compliant Preliminary Economic Assessment (PEA) for Cerro Moro can be accessed from this website. The report provides estimated mine operating and capital costs for a potential 1000 tonne per day mine to deliver +200,000 ounces gold equivalent* per annum over the initial three years of operations. An Environmental Impact Assessment that incorporates a 750 tad mining scenario was submitted to Provincial authorities in September 2010 and was approved in May 2011. The Santa Cruz Mines Ministry has indicated that the approval time for an addendum to expand throughput on an existing EIA is considerably shorter than that for a new EIA submission.

*Gold equivalent grade is calculated by dividing the silver assay result by 50, adding it to the gold value and assuming 100% metallurgical recovery.

Six drill rigs are currently dedicated to new resource drilling at the Cerro Moro project, with particular emphasis being placed on the evaluation of the recent high grade gold-silver discovery at Zoe. An updated mineral resource estimate for the Cerro Moro project is scheduled to be released in Q4-2011, and is expected to include maiden mineral resources for the Zoe, Carla, Martina, and Esperanza Northwest-Nini sectors. The drill testing of further new targets at both the Cerro Moro project and on select Santa Cruz Regional prospects is also expected to be undertaken during the second half of 2011.

Other Santa Cruz Projects (Excluding Cerro Moro)
Calandria
Puntudo
Verde

Chubut Projects
Lonco Trapial
Pilar

Don Sixto (La Cabeza)
As a result of political developments in Mendoza Province, Argentina, the further development of the advanced Don Sixto Gold Project has been put on hold. The Company is reviewing its legal recourse for damages suffered and will continue to work with authorities in Mendoza, and with representatives of other mining companies, to effect legislative change.

The project now has over 60,000 meters of drilling and preliminary development studies have been completed. It is located in southern Mendoza Province in central western Argentina at an altitude of 1200 meters. The climate is semi-arid, allowing good year-round access. Resources are being estimated by independent consultants, Hellman and Schofields, and will be released in July/August, 2007. Extorre has the right to 100% of the property subject only to a royalty, capped at US$1.0 million.

For more details on the projects please CLICK HERE

Directors

Eric Roth, President and CEO

Darcy Daubaras, CFO

Yale Simpson, Co-Chairman

Bryce Roxburgh, Co-Chairman



Robert G Reynolds, Director



Ignacio Celorrio, Director

James Strauss - Director

George Lawton - Director

Management
    * Eric Roth - President and CEO
    * Cecil Bond - Vice President Finance
    * Louis Montpellier - Senior Vice President 
    * Marina Trasolini - Vice President, Corporate Development 
    * David Carmichael - Cerro Moro Project Development Manager 
    * Fernando Chacon - Cerro Moro Project Manager
    * Matt Williams - Exploration Manager 
    * Glen van Kerkvoort - Chief Geologist 
    * Darcy Daubaras - CFO 
    * Gonzalo Damond - Commercial Manager 
    * Patricia Inzirillo - Administration and Legal 
    * Rob Grey - VP Investor Relations

Capital Structure

As of October 7, 2011

Issued & outstanding: 92,449,439

Warrants outstanding: 120,000

Options outstanding: 10,060,713

Fully diluted: 102,630,152

Cash $ 35 million