Exeter Resource shareholders approve spin-out to create two independent gold companies

Vancouver -

Exeter Resource Corporation (NYSE-AMEX: XRA, TSX: XRC, and Frankfurt: EXB) ("Exeter" or the "Company") is pleased to announce that its shareholders have voted 40,826,546 (99.83%) in favour of approving the spin-out of its Argentine assets into Extorre Gold Mines Limited ("Extorre") by plan of arrangement (the "Arrangement") and that a final order approving the Arrangement was granted by the Supreme Court of British Columbia on March 12, 2010.

The Company will now proceed to closing of the Arrangement, presently expected to occur on March 22, 2010 (the "Record Date"). The distribution date for Extorre shares is anticipated to be March 23, 2010.

The Extorre shares have been conditionally approved for listing on the TSX and, subject to satisfaction of all conditions to closing, the shares of Extorre will trade on a "when issued" basis on the TSX under the trading symbol "XG" on March 18, 2010 and will not be initially listed on NYSE-AMEX. For US shareholders, Extorre intends to initially apply for listing on the OTCQX exchange and subsequently on the NYSE-AMEX. Listing is subject to Extorre meeting all listing requirements of those exchanges and receiving exchange acceptances of listing applications.

Exeter shares will trade "ex-distribution" on the TSX on March 18, 2010 and on the NYSE-AMEX on March 24, 2010.

Exeter shares will continue to trade "regular way" on the NYSE-AMEX under the symbol "XRA" through the distribution date of March 23, 2010. Any holders of Exeter shares who sell Exeter shares regular way from March 18 to March 23, 2010 will also be selling their right to receive shares of Extorre. Investors are encouraged to consult with their financial advisors regarding the specific implications of buying or selling Exeter shares on the NYSE-AMEX before the distribution date.

Investors who execute a trade to purchase Exeter shares before, and continue to hold such shares on, March 18, 2010 will participate in the distribution of Extorre shares on the Record Date. Such shareholders need not do anything further to receive their Extorre shares, which will be delivered as soon as possible after the Record Date. Each registered Exeter shareholder on the Record Date will be deemed to have exchanged, without any action on their part, all of their Exeter shares for one new Exeter share and one new Extorre share. Existing Exeter share certificates will not need to be physically exchanged and will be deemed to be share certificates representing the new Exeter shares. Exeter shareholders, who hold their Exeter shares in their brokerage accounts, including discount brokerage accounts, will have their Extorre shares automatically deposited into their accounts by their broker upon completion of the Arrangement. There will be no change in shareholders' holdings in Exeter as a result of the Arrangement.

Each Exeter option holder and warrant holder on the Record Date will receive a new option or warrant, as applicable, for Exeter shares and for Extorre shares at an adjusted exercise price based on the volume weighted average trading price of the Exeter shares and Extorre shares for the five trading days following March 18, 2010.

On closing, Extorre will hold all of Exeter's former interest in the Argentine Cerro Moro and Don Sixto Projects as well as its Argentine Patagonian exploration projects and an initial $25 million in capital from Exeter. Initial focus will be on development of the Cerro Moro Project, while exploration drilling will continue to test for new high grade vein targets. Exeter will continue to hold and focus on advancing its Caspiche Project, located in northern Chile.