The "feat_exc" class the link that displays after the excerpt for featured posts, not for the latest post.
That demo contains neither the "Continue Reading" link (in black text below the latest-post excerpt) nor the "Continue reading »" link that appears (in blue text directly after the latest post excerpt, that is, within the same paragraph) which I've (also) hidden via CSS. This second link is disabled in the CSS by setting "latest_post p a" to "display:none;".
This demo at WooThemes shows the "Continue Reading" link, in black next to the category and comments-count links, that I wish to be reinstated.
To test my theory, I reinstated it manually using Google Chrome's and manually inserting a link between span class "latest_read_on" tags. It works.