Moderate Resource Expansion Forecast

Junior Mining Weekly (04/01/2009)
"Last week, Exeter released an interim NI 43-101 compliant mineral resource estimate for Caspiche. The inferred resource measures a total of 8.73 million ounces Au and 2.1 billion pounds Cu, for a total AuEq resource of 13.63 million ounces (using US$750/oz Au, US$1.75/lb Cu). The resource grade was in line with our expectations, averaging 0.61 g/t Au and 0.25% Cu in the sulphide zone (375.9 million tonnes) and 0.55 g/t Au in the oxide zone (74 million tonnes). The potentially heap leach amenable oxide zone contains 1.3 million ounces Au. Our interim expectations were for 1.50 million ounces Au in oxide, and 4.95 million ounces AuEq in the near-surface sulphide zone (above 400 metres) to be outlined at Caspiche. We also accounted for 5.30 million ounces AuEq to be outlined longer term, as deep sulphide mineralization.

The Caspiche deposit remains open, especially to the southwest and to depth. The initial resource is based on drilling to the end of 2008. Several significant drill intercepts were not incorporated in the resource. An updated mineral resource estimate, including drilling data to May 2009, is expected in September 2009. We are forecasting a moderate resource expansion of 1.3 million ounces AuEq of near-surface, open-pittable, sulphide mineralization and have estimated an additional 5.8 million ounces AuEq in deep sulphides could be outlined over the next 12 months (total sulphide expansion of 7.1 million ounces AuEq). We expect only a moderate increase in oxide Au resources moving forward (270,000 oz Au) .

We apply in situ valuation metrics to Caspiche and Cerro Moro, applying a risk-adjusted value of US$25/oz AuEq to estimated oxide and near-surface primary sulphide resources, and US$20/oz AuEq to estimated deeper sulphide resources. We have a SPECULATIVE BUY recommendation and a 12-month target price of C$7.00 on Exeter."

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