Mr. Bryce Roxburgh reports

EXETER SECURES OPTION TO PURCHASE WATER RIGHTS FOR THE CASPICHE GOLD-COPPER PROJECT IN CHILE

Exeter Resource Corp. has optioned water rights to a total volume of 300 litres per second from a private Chilean company. The rights relate to surface water flows and are consumptive in nature. The option agreement provides for staged payments deductible from a purchase price of $15-million (U.S.). The company can withdraw from the option at any time without penalty.

The company has also applied for water exploration concessions over three separate water basins in its own right. Importantly with respect to obtaining permission to develop these basins, the aquifers are contained, and do not appear to contribute water to downstream catchments or basins.

Both the optioned water rights and the nearest basin are located about 100 kilometres north of the project, adjacent to water rights proposed for the Cerro Casale project, 10 kilometres south of Caspiche. Additional basins are 50 to 100 km farther north again.

Aker Solutions has begun work on two concurrent prefeasibility studies (see Stockwatch news release dated Nov. 22, 2010). The first is designed to provide detailed economics for the development of the shallow, heap-leachable gold-only oxide deposit. The second will focus on the development of the complete Caspiche resource. At this stage, preliminary studies indicate that a gold-only heap leach project would require a water supply of less than 100 litres per second.

Yale Simpson, Exeter's executive chairman, said: "We are very pleased to have achieved another milestone for the project. Water is a fundamental component for any potential mining operation at Caspiche. The optioned water rights are more than sufficient to meet the needs of a gold-only oxide project at Caspiche. The oxide gold resource is a 100-metre thick blanket of gold-bearing oxide material that overlies the large sulphide resource.

"Metallurgical studies to date have shown favourable heap-leaching characteristics. Based on the measured and indicated resource for the oxide deposit, the gold-only oxide project could produce over 150,000 ounces of gold per year for five years, providing early cash flow for the project."

Jerry Perkins, Exeter's vice-president of development and operations and a qualified person within the definition of that term in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects, has supervised the preparation of the technical information contained in this news release.

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