Exeter Drilling Continues to Encounter Significant Water

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 22, 2014) - Exeter Resource Corporation (NYSE MKT:XRA)(TSX:XRC)(FRANKFURT:EXB) ("Exeter" or the "Company") is pleased to announce the expanded water drilling program (announced on October 7, 2014) for its Caspiche gold-copper project in northern Chile continues to provide encouraging results. Progress to date includes completion of two additional large diameter water bore holes (LV-05 and LV-06) and two smaller diameter water monitoring holes. As expected significant water (as determined by preliminary air lift tests) has been encountered in all drill holes. Down hole pump tests, a definitive measurement technique to quantify water flow rates and the recharge rate of an aquifer, have recently commenced. The Company expects to have pump tests completed on all remaining large diameter drill holes in January, 2015.

The water drilling program continues to support Exeter's belief that the Peñas Blancas (option for 90% interest)¹ aquifer has the potential to provide sustainable water flows of over 200 litres per second ("L/s"). Such flow rates, if confirmed, should be adequate for any of the mining options outlined in its Amended NI 43-101 Technical Report on the Caspiche Project ("2014 PEA"). See the Exeter website or Sedar for the details regarding the 2014 PEA.

The 2014 PEA identified three new low capex, potential development options, all of which required modest quantities of water compared with the requirements of a large scale open pit. The 2014 PEA calculated that the 30,000 tonne per day ("tpd") standalone oxide operation would require a peak water supply of less than 50 L/s. This option produces an estimated average of 122,000 gold equivalent* ounces annually over a projected ten year mine life, including 148,000 ounces annually in the first five years.

The standalone oxide open pit mine plan benefits from lower up front capital requirements and sequenced higher start up grades in the initial part of the mine life. In addition, a very low life-of-mine strip ratio (0.27:1) and favourable leach kinetics are positive contributors to the project economics. At US$1,300/oz gold pre-tax net present value ("NPV") is US$355 million, generating an internal rate of return ("IRR") of 34.7%, and a payback period of 3.4 years from initial construction (after-tax 27% NPV 5% US$252 million, IRR 28.5%).