Revised Inferred Resource Estimate for Caspiche

WENDELL ZERB, B.SC., P. GEOL., Canaccord Genuity (09/22/2009)
"Last week, Exeter reported a revised inferred resource estimate for its Caspiche Au-Cu-Ag project (100%) in Chile. The updated base case inferred resource (0.3 g/t AuEq cut-off) contains 19.6 million oz Au at 0.55 g/t Au with significant by-product Cu and Ag, bringing the total resource to 33.7 million ounces AuEq at a grade of 0.94 g/t AuEq. Exeter notes that at Caspiche it has indentified a higher-grade core zone. At a higher cut-off of 0.9 g/t AuEq, this core zone equates to a sizeable 499 million tonnes at 0.78 g/t Au containing 12.5 million ounces Au, or 1.35 g/t AuEq containing 21.8 million oz AuEq.

The sulphide resource expansion of 20.65 million ounces AuEq exceeded our expectations of 7.1 million ounces AuEq. In our view, Caspiche is one of the largest Au-Cu-Ag assets discovered in the last decade and its significance should draw the attention of numerous interested parties. We believe this mineralized system at Caspiche is similar in many ways to Barrick/Kinross' neighboring Cerro Casale deposit. Barrick purchased 51% of Cerro Casale for about US$805 million in October 2007.

. . .Given the early stage of exploration and development of XRC's projects, we apply in situ valuation metrics to Caspiche and Cerro Moro (Argentina). We apply a risk-adjusted value of US$25/oz Au to all NI 43-101 estimated oxide and sulphide inferred gold resources at Caspiche. For Cerro Moro, we apply an in situ value of US$60/oz AuEq of NI 43- 101 compliant inferred resources the project is estimated to contain. Based on our total valuation of US$520.7 million, we have a SPECULATIVE BUY rating on Exeter and a 12-month target price of C$8.00 (rounded)."

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