Exeter Continues to Intersect Bonanza Grades at Cerro Moro

VANCOUVER , Feb. 3 /CNW/ - Exeter Resource Corporation (NYSE-Amex:XRA, TSX:XRC, Frankfurt: EXB - "Exeter" or the "Company") is pleased to report further high grade to bonanza grade results from in-fill drilling at Cerro Moro, Santa Cruz Province , Argentina . Of 48 diamond drill holes assayed, 28 holes returned significant results, including 12 with very high grades. Most notable was MD644 with 5.38 metres (17.7 feet) at 149.9 grams per tonne (4.35 oz/ton) gold equivalent*.

Cerro Moro is the prime asset for a proposed spin-out announced January 19, 2010 pursuant to which each Exeter shareholder would receive one new share for each Exeter share held.

Selected high grade results at a 1 g/t gold equivalent* cut-off grade (abbreviations used are metres ("m") and grams per tonne ("g/t")):

    
    -------------------------------------------------------------------------
                                                              Gold     Gold
                                                            Equiva-  Equiva-
                 From      To      Width     Gold   Silver  lents* lents*
    Drill Hole    (m)      (m)      (m)     (g/t)    (g/t)    (g/t)  (oz/ton)
    -------------------------------------------------------------------------
    Escondida Far West Sector
    -------------------------------------------------------------------------
    MD644        69.62    75.00     5.38     64.4    5,131    149.9     4.35
    -------------------------------------------------------------------------
    including    71.02    71.32     0.30    120.5   18,517    429.1    12.44
    -------------------------------------------------------------------------
    and          72.19    72.50     0.31    319.6   15,962    585.6    16.98
    -------------------------------------------------------------------------
    and          73.32    73.65     0.33    246.1   29,123    731.5    21.21
    -------------------------------------------------------------------------
    MD646       113.94   120.00     6.06     56.4    2,496     98.0     2.84
    -------------------------------------------------------------------------
    including   115.12   117.09     1.97    162.2    6,192    265.4     7.70
    -------------------------------------------------------------------------
    including   115.52   116.10     0.58    423.8    9,958    589.8    17.10
    -------------------------------------------------------------------------
    MD647       148.00   148.40     0.40     10.6    1,076     28.5     0.83
    -------------------------------------------------------------------------
    and         163.00   166.38     3.38      7.5      526     16.2     0.47
    -------------------------------------------------------------------------
    including   163.00   163.65     0.65     14.9      966     31.0     0.90
    -------------------------------------------------------------------------
    and         164.70   165.71     1.01     10.5      800     23.8     0.69
    -------------------------------------------------------------------------
    MD650        71.35    72.10     0.75     36.6    1,379     59.6     1.73
    -------------------------------------------------------------------------
    including    71.80    72.10     0.30     90.3    3,396    146.9     4.26
    -------------------------------------------------------------------------
    MD656       106.00   106.90     0.90      8.3       22      8.7     0.25
    -------------------------------------------------------------------------
    and         126.00   133.00     7.00     12.1      967     28.2     0.82
    -------------------------------------------------------------------------
    including   128.30   129.15     0.85     57.7    2,580    100.7     2.92
    -------------------------------------------------------------------------
    MD661       166.16   169.19     3.03      5.4      384     11.9     0.35
    -------------------------------------------------------------------------
    including   166.16   167.38     1.22     11.3      679     22.7     0.66
    -------------------------------------------------------------------------
    MD662       110.24   111.78     1.54     25.6    1,517     50.9     1.48
    -------------------------------------------------------------------------
    including   110.24   111.32     1.08     36.1    2,104     71.2     2.06
    -------------------------------------------------------------------------
    MD670       160.29   162.13     1.84      5.2      232      9.0     0.26
    -------------------------------------------------------------------------
    including   160.93   161.45     0.52      9.7      541     18.7     0.54
    -------------------------------------------------------------------------
    MD672       145.22   146.90     1.68      9.5      584     19.2     0.56
    -------------------------------------------------------------------------
    including   145.58   146.00     0.42     33.7    2,103     68.8     2.00
    -------------------------------------------------------------------------
    MD676       176.70   180.57     3.87     28.7      315     34.0     0.99
    -------------------------------------------------------------------------
    including   177.75   178.25     0.50    188.2      558    197.5     5.73
    -------------------------------------------------------------------------
    and         181.25   183.00     1.75      2.9    382.2      9.3     0.27
    -------------------------------------------------------------------------
    including   181.85   182.15     0.30      9.6    1,295     31.2     0.90
    -------------------------------------------------------------------------
    MD678       131.11   139.00     7.89     16.4      628     26.8     0.78
    -------------------------------------------------------------------------
    including   134.35   135.40     1.05     67.8      445     75.2     2.18
    -------------------------------------------------------------------------
    and         137.22   137.65     0.43     40.9    5,316    129.5     3.76
    -------------------------------------------------------------------------
    MD685        48.70    51.75     3.05      2.2      295      7.2     0.21
    -------------------------------------------------------------------------
    including    50.05    50.70     0.65      5.4      587     15.2     0.44
    -------------------------------------------------------------------------
    MD691       241.10   243.00     1.90      2.7       76      3.9     0.11
    -------------------------------------------------------------------------
    including   242.30   242.60     0.30      8.8       84     10.2     0.30
    -------------------------------------------------------------------------
    MD698       161.85   164.28     2.43     60.2    3,407    117.0     3.39
    -------------------------------------------------------------------------
    including   162.52   163.44     0.92    140.7    7,534    266.3     7.72
    -------------------------------------------------------------------------
    MD702       183.90   185.85     1.95      4.1      756     16.7     0.48
    -------------------------------------------------------------------------
    including   184.20   184.90     0.70     10.9    2,002     44.3     1.28
    -------------------------------------------------------------------------
    MD704       130.60   136.25     5.65     13.9    1,046     31.4     0.91
    -------------------------------------------------------------------------
    including   132.93   133.25     0.32     21.7    1,733     50.6     1.47
    -------------------------------------------------------------------------
    and         135.30   135.70     0.40    112.5    6,602    222.5     6.45
    -------------------------------------------------------------------------
    MD708        74.00    82.00     8.00     30.3    1,574     56.5     1.64
    -------------------------------------------------------------------------
    including    79.53    82.00     2.47     96.4    4,977    179.4     5.20
    -------------------------------------------------------------------------
    and          79.85    80.50     0.65    195.5   11,840    392.8    11.39
    -------------------------------------------------------------------------
    MD711       117.00   118.00     1.00     4.48      146     6.91     0.20
    -------------------------------------------------------------------------
    and         125.95   128.37     2.42     12.1      336     17.7     0.51
    -------------------------------------------------------------------------
    and         127.36   127.70     0.34     49.7    1,119     68.4     1.98
    -------------------------------------------------------------------------
    MD714       199.00   200.20     1.20      6.9      351     12.8     0.37
    -------------------------------------------------------------------------
    including   199.00   199.32     0.32     10.6      801     24.0     0.70
    -------------------------------------------------------------------------
    MD717        98.00   105.00     7.00     12.2    1,137     31.2     0.90
    -------------------------------------------------------------------------
    including    99.85   103.35     3.50     19.1    1,963     51.8     1.50
    -------------------------------------------------------------------------
    including   102.86   103.35     0.49     88.0   10,019    255.0     7.40
    -------------------------------------------------------------------------
    MD727       182.45   184.20     1.75     11.9    1,471     36.4     1.06
    -------------------------------------------------------------------------
    including   182.45   182.75     0.30     47.1    6,340    152.8     4.43
    -------------------------------------------------------------------------
    MD777       229.26   230.45     1.19      3.6      238      7.6     0.22
    -------------------------------------------------------------------------
    including   229.26   229.83     0.57      7.1      431     14.3     0.41
    -------------------------------------------------------------------------
    and         232.52   233.82     1.30    141.1    4,357    213.8     6.20
    -------------------------------------------------------------------------
    including   232.52   233.37     0.85    211.4    5,999    311.4     9.03
    -------------------------------------------------------------------------
    Escondida West Sector
    -------------------------------------------------------------------------
    MD699       117.85   118.20     1.00    184.4    1,414    208.0     6.03
    -------------------------------------------------------------------------
    Including   118.20   118.52     0.32    523.7    1,591    550.2    15.96
    -------------------------------------------------------------------------
    MD700       124.00   125.45     1.45     11.4      435     18.7     0.54
    -------------------------------------------------------------------------
    including   124.80   125.10     0.30     41.4    1,142     60.4     1.75
    -------------------------------------------------------------------------
    MD709       181.00   182.00     1.00     13.6    1,184     33.3     0.97
    -------------------------------------------------------------------------
    including   181.33   181.69     0.36     21.5    2,118     56.8     1.65
    -------------------------------------------------------------------------
    Escondida Far East Sector
    -------------------------------------------------------------------------
    MD684       148.98   149.60     0.62     16.8      765     29.6     0.86
    -------------------------------------------------------------------------
    MD688       172.60   175.35     2.75     10.2      179     13.1     0.38
    -------------------------------------------------------------------------
    including   175.05   175.35     0.30     51.8      872     66.3     1.92
    -------------------------------------------------------------------------
    MD692       240.00   242.77     2.77      8.4        6      8.5     0.38
    -------------------------------------------------------------------------
    including   240.00   241.00     1.00     21.5       14     21.7     0.63
    -------------------------------------------------------------------------
    and         245.05   247.20     2.15      2.0        3      2.1     0.06
    -------------------------------------------------------------------------
    and         249.00   252.00     3.00      3.2        5      3.3     0.10
    -------------------------------------------------------------------------
    including   249.00   250.25     1.25      5.3        6      5.4     0.16
    -------------------------------------------------------------------------
    *Gold equivalent grade is calculated by dividing the silver assay
    result by 60, adding it to the gold value and assuming 100% metallurgical
    recovery.
    

Exeter's Exploration Manager Matt Williams stated, "The new results demonstrate the continuity of high grade mineralization in the Far West sector of the Escondida Vein. A further 85 diamond drill holes have been drilled with assay results not yet available.

"Within two weeks the Company will have completed the infill drilling considered sufficient to bring a substantial component of the Escondida mineralization into the Indicated Resource category. We have engaged Cube Consulting (Cube) from Perth , Australia to complete the new NI43-101 compliant resource estimate, with a scheduled completion date in April 2010 . That estimate is expected to be followed by a planned Q3-2010 preliminary assessment study.

"When the in-fill drilling is finished we will focus exploration on new targets, particularly those situated close to known ore grade mineralisation. Initially we will test the transition area between the Far West zone and the Fomicruz joint venture lands to the west. We will retain 3 drill rigs to test such new targets."

The location of the 28 drill holes reported in the table above is shown on the following plan and longitudinal section. Of the 20 diamond drill holes that returned less significant results, 16 holes returned narrow and/or low grade intersections and 4 holes were poorly mineralized.

Click Here for the Sections and Plans (http://www.exeterresource.com/images/gallery/plans/plans_89.pdf)

Quality Control and Assurance

Drill widths presented above are drill intersection widths and may not represent the true widths of mineralization.

Gold assay results presented above are preliminary and have been calculated using a 1.0 g/t gold equivalent cut-off grade, with no cutting of high grades. All diamond drill core samples are split on regular metre intervals or on geological contacts and represent sawn half HQ-size core. Samples were prepared at the Acme Analytical Laboratories ("AcmeLabs") preparation facility in Mendoza, Argentina and assayed by fire assay (50 gram charge) at the AcmeLabs laboratory in Chile , both ISO-9001:2000 certified laboratories.

Check assaying of all samples assaying greater than 1.0 g/t gold is completed by Acme Labs. Samples returning greater than 10 g/t gold and/or greater than 100 g/t silver are assayed using gravimetric analyses. Standard and blank samples are used throughout the sample sequence as checks for the diamond drilling reported in this release. Standard, blank and duplicate samples are used throughout the sample sequence as checks for the RC percussion drilling.

Assaying by the screen fire assay method has been implemented in conjunction with standard 50 gram fire assaying, for diamond drill cores that contain visible gold. The procedure for screen fire assaying involves crushing and sieving of a nominal 1,000 gram sample to a particle size of 100 microns. All material which does not pass through the 100 micron sieve is then assayed. Two fire assays are undertaken on the undersize material as a check on homogeneity. The total gold content is then calculated.

About Exeter

Exeter Resource Corporation is a Canadian mineral exploration company focused on the discovery and development of gold and silver properties in South America . The Company has C$76 million in its treasury.

On January 19, 2010 , the Board approved a proposal to undertake a spin-out transaction pursuant to which the assets of Exeter would be separated into two highly focused companies. Under the terms of the proposed transaction, Exeter will retain all assets relating to the Caspiche gold-copper discovery in Chile and will transfer to a new corporation the Cerro Moro and other exploration properties in Argentina . The proposal will be voted on by shareholders at a shareholders meeting expected to be held on March 4th .

On the Caspiche Project in Chile , an inferred mineral resource estimate of 1, 117 Mt (million metric tons) at a grade of 0.55 grams per metric ton gold and 1.12 grams per metric ton silver including 1, 017 Mt at a grade of 0.22% copper was announced in September 2009 . 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 (a total of 32.4 million gold equivalent ounces(xx). Drilling with six rigs is underway to expand and upgrade the resource.

On the Cerro Moro Project in Argentina , an inferred mineral resource estimate of 646,000 ounces gold equivalent(xxx) at a grade of 18 g/t gold equivalent(xxx) was announced mid-2009. Exeter continues to drill with 3 rigs to upgrade inferred resources to indicated resources on the Escondida vein.

A new Cerro Moro resource estimate is scheduled for April 2010 , to be followed by a preliminary assessment study in Q3-2010. These studies will form the basis of a mine development decision and the submission of the project to Provincial authorities for permitting. Exploration drilling will continue through 2010.

No site work is planned on the Don Sixto gold-silver project in Argentina over the next quarter.

Matthew Williams , Exeter's Exploration Manager and Justin Tolman , Exeter's Caspiche Project Manager both considered 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 relating to the Cerro Moro and Caspiche projects respectively.

You are invited to visit the Exeter web site at www.exeterresource.com.

    
    EXETER RESOURCE CORPORATION

    Bryce Roxburgh
    President and CEO


    (xx)Gold ("Au") equivalence for copper ("Cu") and silver ("Ag") was
    calculated by Exeter using assumed metal prices of US$800/ounce ("oz")
    for Au, US$12/oz for Ag and US$2/pound ("lb") for Cu. The formula to
    calculate Au equivalence for Cu was pounds of Cu multiplied by 2 and
    divided by 800; Au equivalence for Ag was calculated using the formula oz
    of Ag multiplied by 12 and divided by 800, and in both cases assumes 100%
    recovery. Reported grades and metric tons have been rounded (see news
    release NR 9-22 dated October 20, 2009). Readers are referred to the
    Company's NI 43-101 Technical Report on the Cerro Moro Project dated
    October 30, 2009 (the "Report") and filed on SEDAR for further background
    technical information.

    (xxx)Inferred mineral resource estimate of 1,098 Mt containing 371,000
    ounces gold at a grade of 10.5 g/t and 19.2 million ounces silver at a
    grade of 545 g/t for 646,000 ounces gold equivalent at a grade of 18 g/t
    gold equivalent. Gold equivalent is calculated by dividing the silver
    assay result by 70, adding it to the gold value and assuming 100%
    metallurgical recovery (see news release NR 9-14 dated July 8, 2009).
    Readers are referred to the Report filed on SEDAR for further background
    technical information.
    

Safe Harbour Statement - This news release contains "forward-looking information" and "forward-looking statements" (together, the "forward-looking statements") within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995, including the Company's belief as to the extent and timing of its drilling programs, various studies including engineering, environmental, infrastructure and other studies, and exploration results, budgets for its exploration programs, the potential tonnage, grades and content of deposits, timing, establishment and extent of resources estimates, potential for financing its activities, potential production from and viability of its properties, expected cash reserves and the expected benefits of the proposed spin-out transaction. These forward-looking statements are made as of the date of this news release. Users of forward-looking statements are cautioned that actual results may vary from the forward-looking statements contained herein. While the Company has based these forward-looking statements on its expectations about future events as at the date that such statements were prepared, the statements are not a guarantee of the Company's future performance and are subject to risks, uncertainties, assumptions and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such factors and assumptions include, amongst others, the effects of general economic conditions, the price of gold, silver and copper, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgements in the course of preparing forward-looking information. In addition, there are also known and unknown risk factors which could cause the Company's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in metal prices; title matters; uncertainties and risks related to carrying on business in foreign countries; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters of the Company with certain other projects; the absence of dividends; currency fluctuations; competition; dilution; the volatility of the Company's common share price and volume; tax consequences to U.S. investors; and other risks and uncertainties, including those described in the Company's Annual Information Form for the financial year ended December 31, 2008 , dated March 27, 2009 filed with the Canadian Securities Administrators and available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company is under no obligation to update or alter any forward-looking statements except as required under applicable securities laws.

NEITHER THE TSX NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE

%SEDAR: 00005801E

For further information: B. Roxburgh, President, or Rob Grey, VP Corporate Communications, Tel: [phone], Fax: [phone], Toll-free: 1-888-688-9592, Suite 1260, 999 West Hastings St., Vancouver, BC, Canada, V6C 2W2, [email protected]