Exeter Commences Follow-Up Drilling at Cerro Puntudo and Trenching at Cerro Moro, Patagonia.

VANCOUVER, British Columbia -- Exeter Resource Corporation (TSX VENTURE:XRC)(FWB:EXB) has commenced a 2000 metre, second stage drilling program on the Cerro Puntudo epithermal gold property in Patagonia, Argentina. Cerro Puntudo is one of a large package of gold properties under option from Cerro Vanguardia S.A. (CVSA), a subsidiary of AngloGold Ashanti.

In February, Exeter announced positive results from the first drilling conducted at Cerro Puntudo. Best results were from two of the four deeper holes drilled. CPRC24, in the Rico zone, intersected 20 metres at a grade of 3.6 g/t gold, including 4 meters at a grade of 9.2 g/t gold. CPRC27, in the Quebrada zone, intersected 20 meters at a grade of 3.7 g/t gold, including 8 metres at a grade of 9.6 g/t gold. The two holes showed significant increases in gold grade over shallower holes drilled directly above.

The follow-up drilling program will test many of the previous drill sections, but at deeper levels. New targets will also be drilled - in particular a number of targets defined by a detailed ground magnetic survey completed in March. The program will include both diamond and reverse circulation drilling.

Exeter has also commenced a 1000 metre trenching program at the Cerro Moro epithermal gold project. In 2004, Exeter drilled a number of reverse circulation drill holes at Cerro Moro, to confirm high grade mineralization indicated previously by CVSA. The follow-up trenching program will test extensions of four known veins, and three newly-discovered veins in areas where favourable geology is masked by surface material. A detailed ground magnetic survey will commence in June. Drilling is planned for later this year.

Exeter continues to assess other projects in the CVSA portfolio, and has upgraded a number where more detailed exploration including geophysical surveys, is planned. Several properties have been returned to CVSA, following initial reconnaissance, with a total of 25 properties remaining subject to the option agreement.

Qualified Person

Bryce Roxburgh, B.Sc., Exeter's President, a Qualified Person within the definition of that term in National Instrument 43-101 of the Canadian Securities Administrators, has supervised the preparation of the technical information contained in this news release.

About Exeter

Exeter is a Canadian company exploring epithermal gold-silver and copper-gold porphyry projects in Argentina and Chile. A new resource estimate is currently being prepared for La Cabeza, Exeter's most advanced project. The estimate will reflect the results of recent detailed drilling and channel sampling. Exploration, including drilling and channel sampling to identify new mineralised zones continues. In addition, engineering, metallurgical, hydrological and environmental studies, and plant design are being finalised as part of the on-going evaluation of the project.

In the Patagonia region of Argentina, Exeter has a strategic partnership with Cerro Vanguardia S.A. The agreement provides Exeter with an option over a large number of epithermal gold-silver properties, including Cerro Puntudo and Cerro Moro. In Chile, Exeter has initiated exploration for epithermal gold systems under an agreement with Rio Tinto Mining and Exploration Ltd.

EXETER RESOURCE CORPORATION

Bryce Roxburgh, President and CEO 

Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission ("SEC") permits mining companies in their filings with the SEC to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this news release, such as "inferred resource", that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investors are urged to consider closely the disclosure contained in our Form 20-F Registration Statement, File No. 000-51016. You can review and obtain copies of our filings from the SEC's website at www.sec.gov/edgar.shtml.

Safe Harbor Statement - This news release may contain certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. 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 the Exeter.

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

Exeter Resource Corporation (TSX VENTURE:XRC) (FRANKFURT:EXB)