Exeter Resource Corporation
FRANKFURT : EXB
TSX VENTURE : XRC
AMEX : XRA

Exeter Resource Corporation

December 15, 2006 09:01 ET

Exeter Reports on Studies and Permitting at La Cabeza, Argentina

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 15, 2006) - Exeter Resource Corporation (TSX VENTURE:XRC)(AMEX:XRA)(FWB:EXB) reports that exploration continues on its La Cabeza gold-silver property, in Mendoza Province, Argentina, while the provincial government prepares a new environmental plan.

Recent Legislation in Mendoza

On December 13, 2006, legislation was passed by the Mendoza Provincial Congress calling for its Environmental Department to produce a plan under which future mineral exploration and mining in the province will be conducted. The law suspends the issuance of new prospecting, exploration, and mining licences, pending implementation of the new plan.

Exeter's management welcomes the provincial government's initiative to provide definitive environmental guidelines for the mining industry, and remains committed to developing the La Cabeza project to the highest environmental standards.

Exeter's current exploration at La Cabeza is in accordance with its various existing permits and approvals. The recent legislation does not invalidate these permits. Exeter will incorporate the requirements of the new environmental plan into the environmental impact studies that must form part of any mine permitting process.

The Company has actively involved the local community in its project planning and has enjoyed broad support from the residents of the Malargue district, in which La Cabeza is located. The district has already seen significant economic benefit from exploration on the project. Community-based discussions regarding sustainable development will accelerate through 2007.

Current Status of La Cabeza Studies

The development of a mine at La Cabeza remains dependent on the outcome of a definitive feasibility study. That study is expected to commence in the 2nd quarter of 2007. Should the outcome be positive, the mine development and operation will bring sustainable economic benefits to the region. These benefits will include new and more diverse employment and vastly improved infrastructure. A specific project component will be the construction of a major power line, to supply affordable electricity to the district.

The international environmental consultancy, Knight Piesold, has been contracted to complete a review of the La Cabeza environmental and social baseline studies that have been completed to date. This review will provide the basis for a full social and environmental impact study, to be carried out concurrently with a definitive feasibility study.

A review by local Argentinean engineering group, Penta Sur, of electricity supply options for the project is nearing completion. Their recommendations will be reviewed with the relevant provincial authorities, prior to the commencement of a separate environmental study on the proposed power line route.

About Exeter Resource Corporation

Exeter is a Canadian mineral exploration company focused on the discovery and development of epithermal gold-silver properties in South America. Its common shares are listed for trading on the American Stock Exchange (Amex), under the symbol "XRA", and on the TSX Venture Exchange (TSX-V), under the symbol "XRC".

The La Cabeza project is rapidly advancing towards a development decision. Five drills are currently operating on the site to complete the exploration program. Concurrent project development activities include engineering, metallurgical, hydrological, and environmental studies.

In the prospective, Patagonia region of Argentina, Exeter has a strategic agreement with Cerro Vanguardia S.A., an AngloGold Ashanti subsidiary, over 12 epithermal gold and silver properties. Current exploration, including drilling, is focusing on drilling at the Cerro Moro discovery.

In the Maricunga district of Chile, Exeter has a strategic agreement with Minera Anglo American Chile Limitada and Empresa Minera Mantos Blancos S.A. on the Caspiche epithermal gold property. Drilling is scheduled for January 2007.

In Chile, Exeter is prospecting 48 gold, silver and copper targets under a strategic agreement with Rio Tinto Mining and Exploration Limited.

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

EXETER RESOURCE CORPORATION

Bryce Roxburgh, President and CEO

Safe Harbour Statement - This news release may contain certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 referring to Exeter's exploration plans and expectations for advancing its exploration properties. These statements reflect our current belief and are based upon currently available information. Actual results could differ materially from those described in this news release as a result of numerous factors, some of which are outside of the control of Exeter.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Exeter Resource Corporation
    Bryce Roxburgh
    President
    (604) 688-9592 or Toll Free: 1-888-688-9592
    or
    Exeter Resource Corporation
    Rob Grey
    Investor Relations
    (604) 688-9592 or Toll Free: 1-888-688-9592
    (604) 688-9532 (FAX)
    Email: exeter@exeterresource.com
    Website: www.exeterresource.com