Friday, February 4, 2011

Industry Watch: Extorre Gold Mines Cerro Moro Project Releases Infill Drilling Results

January 24th, 2011: Yale Simpson sits down with Al at the Cambridge House Investment Conference in Vancouver, BC
to discuss Extorre Gold Mine's latest press release detailing the results of an infill drilling campaign.

Interview Transcription:

Al: Hey I'm Al Korelin thanks for joining me. More video from the Cambridge House Investment Conference being held up
here in Vancouver, British Columbia. I'm going to say this once more and that is, this in my opinion, the best investment
conference. The most well-rounded, the best attended of any conferences that we attend. We've gone over the past
twenty years or so. I am chatting right now with a good friend of mine, Yale Simpson. Yale runs basically two
companies as the chairman, Extorre Gold Mines and Exeter Resources. We've talked about both those companies numerous
times on the show. We're gonna talk today about Extorre. Couple of events have taken place there. Number one, they
came out with a press release this morning and also announced that they hired a new vice president, a young woman
by the name of Marina Trasolini. I know Marina really well. She has been on on our show a number of times before.
Formerly worked, she's a geologist, formerly worked with Lawrence Roulston. Very, very heads up woman. Yale, thanks
for joining me buddy, I appreciate it.

Yale: Thankyou.

Al: Ok, press release on results, drilling results from Cerro Moro. What's going on?

Yale: I don't think you've seen it, Al, so just to give you a picture of what we have; As background, you know we announced
our million ounce resource back in March of last year. We've been drilling it since. Part of that drilling is used to drill
between the existing holes to re-categorize our resources because we're doing this pre-feasibility study and we needed
more drilling. So that's what we call infill drilling, where it isn't designed to add any ounces to the deposit, but it gives you
a lot more confidence. So the press release today was dealing with the infill results from two other zones that constitute
the deposit Loma Escondita and Gabriella, and both of those zones in the pre-feasibility study are ear-marked for
open pit mining. And they're high grade. The press release, Al, there's grades in there that are spectacular.
Sometimes we run out of superlatives to describe some of these intersections but they're very very high grades, well in
excess of an ounce per ton, and kilo of silver. So that news is out and now the infill drilling for this pre-feasibility study
is finished. So all of the drilling emphasis, four drills on there, Cerro Moro and another drill elsewhere in Argentina;
All of it is to establish additional ounces.

Al: And what's the next step?

Yale: On Cerro Moro, now that the drilling is finished, the mining engineers will take that data and come up with their
final mining plan as part of this pre-feasibility study. Maybe I should say something here Al. On a project like ours
that has really good economics, and we put out indicative economics and we quoted two hundred and one dollars an
ounce as our kind of cash costs to produce gold, that's on a gold equivalent basis; The project, at the stage that we
did our preliminary economic assessment, was so robust financially that it didn't make any sense to go to final
feasibility, which required a lot of drilling all to satisfy the bankers. We've now been approached by a number of banks
to say 'Do you want the money to build your project?' It's robust, on a comparative basis. So we're going to finish
this work, do the mine modeling. By the second half of this year we'll be ordering equipment, the final design, to
take the project to production. So we're getting pretty close.

Al: And the current plan right now is to put this particular asset into production yourself?

Yale: Oh yes. To suggest otherwise, I would be lynched by the senior management of the company. Totally focused on
that and the reason being is that, from the economics we put out it is not a marginal project. This project, for the hundred
and thirty one million dollars in capital, should makes so much money from a cash flow point of view that... you don't
want to do anything but develop it yourself. Because on the back of that we can then expand onto other projects and
move forward. So this really is, the company maker kind of project.

Al: I have to tell you that little town is absolutley going to fall in love with you guys even more than they are now because
of the employment you're gonna be providing down there and that's fantastic.

Yale: Of course and you saw it. Twenty percent unemployment... When you're stuck, I shouldn't say stuck, maybe people
like to live down there. But when you're living way down in Patagonia where your closest friends are the penguins...

Al: Pretty isolated.

Yale: You're in a situation, where do you find another job? The fishing industry collapsed so now it's mining and so
I think the opportunities are great for them and we're getting good support.

Al: So we're talking about announcing a decision at some point in the very near future?

Yale: The the decision to say yes, going to full blown development... will be in the second half of this year because we
finish the study in July, the pre-feasibility study. We're targeting an announcement in July of how big it is again so we'll
recalculate the resources in July... this quarter. So by the end of March we're anticipating getting the environmental
approval to proceed with the project. That's a real milestone for us. A real milestone.

Al: It's huge, it really is. And then you will continue I'm assuming, and I don't want to down play the production situation
that you have, but then in that same area you have other assets, you're going to continue exploration work, you're
going to continue to grow the project.

Yale: We started... Cerro Moro has four drills on it to test other zones, but we have one drill that's kind of roaming around
other areas in Patagonia that we have because we have a big land position, we're the second-largest land holder in that whole...
big big position... so that work, we've been drilling since November. I would think, I haven't seen any results yet but within
the next month or so we should be in a position to talk about what we found in some of that other drilling. And we haven't
talked about that sort of thing for five years. It's all been focused on Caspiche, Chile and Cerro Moro.

Al: Well you've done, I have to tell you, Exeter has done a yeoman's job in terms of Caspiche. We have been there also
and that's available for viewing, what we saw is certainly available for viewing both in terms of Caspiche and Cerro Moro
on our website. I know you're real active doing video work also so there's a plethora of information out there for lack of
better terms. So where does that take you, a plethora of information? Well, in the interest of full disclosure I'll say a
couple things. Number one, I'm not a registered investment adviser so I can't tell you to buy this particular stock or
sell it, all I can tell you is why I have an interest in it. Big Al has been there... I like what I saw. I'm not an investor in
Extorre or Exeter, however they are sponsors our website... No, I take it back. I just found out this morning we actually
are investors in both companies so keeping that in mind, remember this isn't exactly arms length information from me.
I like these guys a lot to the point where, as I was reminded of this morning, we've actually, my wife an I, put our hard
earned money into both of these companies. Ok, not registered investment advise. They're a sponsor our website.
If you want any additional information so you can make your own investment decision click on the banner.
Thanks for watching.

The full press release can be seen here:

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 January 20, 2011 was 44 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.

To learn more visit:

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