Exeter Resource Corporation

Exeter Resource Corporation

March 22, 2005 04:02 ET

Exeter Updates Progress on La Cabeza Project Prefeasibility Study




MARCH 22, 2005 - 04:02 ET

Exeter Updates Progress on La Cabeza Project
Prefeasibility Study

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 22, 2005) - Exeter
Resource Corporation (TSX VENTURE:XRC)(FWB:EXB) announces that the
prefeasibility study on its 100% owned La Cabeza gold project is
continuing. The study has experienced delays as a result of a need for
additional exploration drilling followed by delays due to competing work
commitments by its engineering contractors.

In the interim, the Company has conducted additional exploration within
the mineralised zones at La Cabeza. Recent channel chip sampling has
outlined high gold assays at surface on the Mandibula zone. The more
significant results are tabulated below and are shown on the attached
plan (www.exeterresource.com/pdf/mandibula_channels.pdf).

Significant New Rock Chip Channel Results - Mandibula Zone

Interval Grade
Channel (metres) (g/t)
Channel 2 6 8.7
including 2 19.8
14 2.8
including 2 9.4
Channel 3 18 8.2
including 2 50.8
10 1.8
Channel 4 12 2.1
6 1.4
Channel 5 24 1.5
Channel 6 26 3.3
including 2 21.8

With recent reverse circulation drilling (results awaited) this
mineralization will be included in the current pre-feasibility study.

Additional channel sampling has also outlined high grade surface
mineralization in the Luna zone outside the footprint of previously
recognised mineralization. This extends the known Luna mineralization to
surface and assists the interpretation of ore geometry

Significant New Rock Chip Channel Results - Luna Zone

Interval Grade
Channel (metres) (g/t)
Channel 7 20 5.1
6 4.2
Channel 8 12 6.8
12 1.0

The resource estimate for the pre-feasibility study is being carried out
by Hellman and Schofield, Sydney, using new data derived from the 2004
drilling and channel sampling programs. That study is nearing completion
and will be announced when available. Open pit design and pit
optimisation has been contracted to Australian Mine Design and
Development, Sydney. Completion of the resource estimates, preliminary
mine scheduling and metallurgical testwork is scheduled for April. These
studies will provide the main engineering inputs to the project design
study, which has been awarded to Ausenco Limited, Brisbane. The
pre-feasibility study has been rescheduled for completion in late June,
following financial modelling by Sandercock & Associates.

Ownership of Surface Rights: The Company has signed an option to
purchase the surface rights overlying the La Cabeza development site.
The option includes the right to purchase the 7000 hectare property for
US$67,000, payable over three years, and the building of two new houses
for the landowner. The initial payment was made in November, 2004. The
landowner has the right to continue grazing on the property outside a
defined mining area, and a further right to purchase the property from
Exeter at a nominal cost upon the completion of mining.

Geological: The pre-feasibility study drilling program, comprising 4609
metres of drilling in 64 drill holes, has been completed (see News
Release: November 25, 2004). Samples were selected from half HQ diamond
drill cores and reverse circulation samples collected and stored on the
property. Sample preparation was undertaken independently in the ALS
Chemex facility in Mendoza, Argentina, with assaying at the ALS Chemex
laboratory in Chile.

Waste and mineralized samples have been collected for sulphur analysis
for preliminary acid rock drainage estimation. Waste and mineralization
bulk density determinations have been conducted on representative core
samples by the Institute of Materials and Soils at the National
University of San Juan, Argentina. In-house due diligence has been
conducted on the geological database to ensure its integrity, including
check surveying of drill hole locations and down-hole deviations. Three
dimensional geological modelling of the mineralised zones is complete.

Geotechnical: Vector Engineering (Chile) has completed preliminary
geotechnical studies, including field examinations and the assessment of
all Exeter data from drill core logging. Results of the study will be
used to optimise pit slopes.

Mining Assessment: Preliminary mining cost estimates are being provided
by a South America based mining contractor for open pit design, pit
optimisation and production scheduling.

Metallurgy: Quartered HQ drill core samples and minus 12 mm size reject
material retained from drilling were selected for metallurgical testwork
being completed by AMMTEC Laboratories, Sydney. A comprehensive testing
program on a bulk composite sample, composite samples from within each
of the mineralised zones, and approximately 20 individual mineralised
drill intercepts is nearly complete. The program has been split equally
between comminution characterisation testwork and gold-silver extraction
testwork. The extraction testwork has also provided the necessary data
for tailings and waste water characterisation.

The metallurgical program is nearing completion. Overall the data
appears to fall in line with predicted metal recovery estimates for the
relatively straightforward, hard ore types, typical of the La Cabeza

Infrastructure: The development site has been fully surveyed and the
digital data adapted for infrastructure investigations. The University
of San Juan hydrology group is responsible for site work at La Cabeza to
locate process and potable water sources, and to determine the
de-watering requirement of the planned open pits. Other infrastructure
investigations to date have included cost estimates for mine access,
communications, on-site power generation, workforce availability and
training, and site accommodation.

Environment and Community: Baseline environmental monitoring is
underway. Cultural, social and economic impacts are being investigated
by an independent group from within Mendoza University, who will also
prepare the Environmental Impact Statement and community development

Commercial: The foreign investment regime, including national and
provincial taxes, royalties and duties is a key component of the
pre-feasibility study. These investigations are ongoing.

Qualified Person

Heath Sandercock and Bryce Roxburgh, "qualified persons" within the
definition of that term in National Instrument 43-101, Standards of
Disclosure for Mineral Projects, have supervised the preparation of the
technical information contained in this news release.

About Exeter

Exeter is a Canadian company exploring epithermal gold-silver and
porphyry copper-gold projects in Argentina. Exploration at Exeter's most
advanced project, La Cabeza, in Mendoza Province, has delineated an
inferred resource of 720,000 ounces of gold, comprising 12.0 million
tonnes grading 1.8 g/t gold, at a cut-off grade of 0.5 g/t gold. The
field program for the La Cabeza prefeasibility study is largely complete
which has enabled the company to commence a reconnaissance exploration
for new zones of ore grade mineralization.

Exeter recently announced the discovery of significant gold-silver
mineralization at Cerro Puntudo, Patagonia. Follow up diamond drilling
is now scheduled for next month. Elsewhere exploration by Exeter is
developing additional exploration targets on properties under option
from Cerro Vanguardia S.A., a subsidiary of AngloGold Ashanti.

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


Bryce Roxburgh, President and CEO


Contact Information

    Exeter Resource Corporation
    Yale Simpson
    (604) 688-9592 or Toll Free: 1-888-688-9592
    (604) 688-9532 (FAX)
    Exeter Resource Corporation
    Rob Grey
    Investor Relations
    (604) 688-9592 or Toll Free: 1-888-688-9592
    (604) 688-9532 (FAX)
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this news release.