Tuesday, January 18, 2011

Silver and Gold at Extorre's Cerro Moro Project

Yale Simpson, a Co-Chairman of Extorre Gold Mines Limited gives shareholders an overview of the progress and developments at Cerro Moro. He briefly discusses the history of the Company, where the Company is today and the strategy going forward.

This is the style of presentation Mr. Simpson commonly gives at major resource conferences around the world. However, the presentation you are about to see is an expanded version. He goes through in great detail about why you should follow this exciting company.

Extorre Gold Mines Limited is a Canadian public company listed on the Toronto Stock Exchange (TSX) under the symbol XG and the OTCQX in the United States under the symbol EXGMF. The Company intends to file a registration statement with the Securities and Exchange Commission and seek listing on the NYSE-Amex. The cash position on December 14, 2010 was $46 million.

Extorre is a spin-out from Exeter Resource Corporation ("Exeter"), a transaction that facilitated taking the high grade Cerro Moro Project to a mine development decision in 2010. Dr. Eric Roth is the new Chief Executive Officer and President.

Cerro Moro: Extorre's Flagship Project

On April 19, 2010, Extorre announced an updated National Instrument 43-101 compliant mineral resource estimate for Cerro Moro:

Indicated: 357,000 Oz. Gold + 15.3 Million Oz. Silver (612,000 Oz. Gold Equivalent*)
Inferred: 190,000 Oz. Gold + 12.0 Million Oz. Silver (390,000 Oz. Gold Equivalent*)

The 612,000 ounce gold equivalent* indicated resource, entirely from the Escondida vein, has an average grade of 32.3 g/t gold equivalent*, a grade considered exceptional by industry standards. The silver contribution is high, accounting for over 40% of the metal value using 60:1 sliver to gold ratios; using a 50:1 ratio, the project becomes silver dominant. Additional inferred resources of 390,000 ounces gold equivalent* are also reported from the Escondida, Loma Escondida, Gabriela, Esperanza, and Deborah veins. This inferred resource contains new material not previously estimated.

The 43-101 report for the Preliminary Economic Assessment (PEA) for Cerro Moro can be accessed from this website and provides estimated mine operating and capital costs for a potential 750 tonne per day mine delivering +130,000 ounce gold equivalent per annum over the initial five years' operations. An Environmental Impact Assessment including this mining scenario is expected to be approved by permitting authorities late Q1, 2011.

Four drill rigs are currently dedicated to expanding the near-mine gold-silver resources at Cerro Moro, providing further high grade resources beyond year five in the currently planned mine schedule. The Escondida and the Gabriela veins together with the newly discovered Lucia vein all show significant potential for expansion both along strike and at depth. In addition, other veins on the property with high silver-gold grades will be tested as we move through Q1 in 2011. Outside of the Cerro Moro project area, Extorre will also initiate drilling to realize the discovery potential of other properties in its portfolio.

Extorre owns 100% of the Don Sixto gold-silver deposit in Mendoza Province, Argentina. In June 2007, the Mendoza government passed legislation that restricts mining in Mendoza Province. The project has been placed on hold, although the Company is optimistic that in due course mining will be permitted for projects that can be demonstrated to be both economically viable and sustainable for communities.

*refer to Extorre's April 19, 2010 Press Release.

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