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Coeur Reports Results from Recently Completed Feasibility Study for Its Palmarejo Silver/Gold Project
-- Significant Impact to Companywide Reserves, Cash Flow and Production --

COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Coeur d’Alene Mines Corporation (NYSE:CDE)(TSX:CDM)(ASX:CXC) today announced results from the completed feasibility study for its Palmarejo silver/gold open pit/underground project in Mexico.

This study reflects results from geologic, engineering and economic analyses for only the Palmarejo deposit, which is one of three large silver and gold deposits identified to-date in the district. The Company plans to update this study later this year, which it expects will further increase mineral reserves, mineral resources, production levels, mine life and cash flow.

The following tables summarize the Palmarejo estimated reserves, resources, production and cash flows and their impact to expected companywide levels. Initial reserves at Palmarejo have increased total companywide reserves 29% to 278.8 million. Production, beginning in the first half of 2009, is expected to increase companywide silver production 28% next year to an estimated 23.6 million ounces. 2009 operating cash flow from Palmarejo is anticipated to add $116.0 million to Coeur’s total expected operating cash flow of $120 million for total projected 2009 operating cash flow of $236.0 million based on a $17/oz silver price and $850/oz gold price.



Mineral Reserves/Resources Summary Overview (in millions)

Metric Coeur(1)
Palmarejo Combined Impact
P&P Silver Reserves 216.4 62.4 278.8 +29%
P&P Gold Reserves 1.5 0.75 2.2 +50%
M&I Silver Resources 133.4 11.0 144.4 +8%
M&I Gold Resources 0.99 0.16 1.1 +16%
Inferred Silver Resources 29.0 63.8 92.0 +220%
Inferred Gold Resources 0.46 0.81 1.3 +176%

(1) As of December 31, 2007; excluding Palmarejo



Production Overview - Ounces

Metric Coeur Palmarejo(1) Combined Impact
2009E Silver Production
(millions)
18.5 5.1 23.6 +28%
2010E Silver Production
(millions)
17.5 7.4 25.0 +43%
2009E Gold Production 65,000 67,000 132,000 +103%
2010E Gold Production 190,000 92,000 282,000 +48%

(1) Assumes production commences during first half of 2009



Financial Overview (in millions) (1)

Metric Coeur Palmarejo Combined Impact
2009E Op. Cash Flow $120.0 $116.0 $236.0 97%
2010E Op. Cash Flow $160.0 $138.3 $298.3 86%

(1) Based on a $17/oz silver price and a $850/oz gold price

Estimated Capital Costs to Achieve Production
(in millions)

Category 2008E 2009E
Plant and Infrastructure $148.1 $47.7
Mine Development 48.6 --
Mine Equipment 10.6 14.4
Owner’s Costs 27.8 0.4
Total $235.1 $62.5

Note: Includes $15.3m of contingency and $14.6m of pre-stripping costs in 2008



“We are pleased to announce the completion of the feasibility study for the initial phase of our Palmarejo project, our next major new mine and one of the largest and highest-quality advanced silver/gold projects in the world,” said Dennis E. Wheeler, Chairman, President and Chief Executive Officer. “Construction remains on-schedule with an expected first-half 2009 startup. Once in production, Palmarejo will add significantly to Coeur’s growing silver and gold production profile, reduce companywide cash costs, and substantially boost our cash flow. In addition, we look forward to reporting continued increases to Palmarejo’s reserves and resources as our drilling programs continue, which will continue to generate additional value and lead to more years of silver and gold production at Palmarejo.”

Donald Birak, Senior Vice President of Exploration for Coeur added, “These new proven and probable mineral reserve results are just for the Palmarejo deposit, one of the three large mineral deposits identified to-date – Palmarejo, Guadalupe and La Patria – in this large and prospective property. We expect to increase these initial reserves during the remainder of the year, and beyond, through continued exploration on the district’s multiple exploration targets. New mineral resource models are currently underway for both the Guadalupe and La Patria silver and gold-bearing structures and are expected to contribute to future mineral reserves through additional drilling and engineering analysis.”

Construction & Operations Update

Construction activity is continuing on-schedule toward a first-half 2009 startup.
Earthwork for a single-level process facility has been completed and concrete work is well-advanced.
Structural, tank and piping installation has begun in the flotation reagent area.
Construction contract for mechanical and piping, installation has been awarded with mobilization to begin shortly.
Preliminary earthworks on the phase one tailings and environmental control dam have commenced.
Earthworks for main operation camp are now completed and construction of a 400 man camp is underway with phase one nearing completion.
Upgrade and maintenance of the main access road to site has been completed.
Road access to tailings dam location and related infrastructure advancing as planned.
North and south portals for underground mine are well-established. A total of 560 meters of development achieved at the end of May.
Open pit mine pre-stripping operations are progressing well.
Full mining fleet has been commissioned.
Fabrication for modular metallurgical laboratory is underway and preliminary site earthwork completed.


Mineral Reserves – Palmarejo Deposit

Open Pit Tonnes Average Grade (g/t) Contained Ounces
Gold Silver Gold Silver
Proven 3,491,600 1.07 134.5 120,400 15,103,100
Probable 2,615,000 1.12 142.4 94,500 11,973,300
Total 6,106,600 1.09 137.9 214,900 27,076,400
Underground Tonnes Average Grade (g/t) Contained Ounces
Gold Silver Gold Silver
Proven 2,020,300 4.34 291.4 282,000 18,926,400
Probable 1,693,300 4.67 300.9 254,200 16,408,400
Total 3,713,600 4.49 295.9 536,200 35,334,800
TOTAL Tonnes Average Grade (g/t) Contained Ounces
Gold Silver Gold Silver
Proven 5,511,900 2.27 192.0 402,400 34,029,500
Probable 4,308,300 2.52 204.9 348,700 28,381,700
Total 9,820,200 2.38 197.7 751,100 62,411,200
1. Cut-off grades; 0.88 g/t (0.026 oz/ton) Au equivalent for open pit
and 2.97 g/t (0.087 oz/ton) for underground
2.
Au Equivalent = (Au grade + (Ag grade/56))

3.
Metal Prices; $600 US per Au ounce and $11.00 US per Ag ounce

4. Underground mining dilution; +15% tonnage at 0.00 grade, 100%
mining recovery
5. Open pit mining dilution; +10% tonnage at 0.01 g/t Au equivalent,
95% mining recovery

Additional Mineral Resources - Palmarejo District

Palmarejo deposit

Palmarejo Tonnes
Average Grade (g/t) Contained Ounces
Gold Silver Gold Silver
Measured 674,900 2.25 152.9 48,900 3,316,700
Indicated 751,900 2.44 163.0 59,000 3,940,800
Meas + Ind 1,426,800 2.35 158.2 107,900 7,257,500
Inferred 8,682,200 1.05 88.1 292,300 24,605,900
Guadalupe deposit

Guadalupe Tonnes Average Grade (g/t) Contained Ounces
Gold Silver Gold Silver
Indicated 710,000 2.15 166.0 49,000 3,790,000
Meas + Ind 710,000 2.15 166.0 49,000 3,790,000
Inferred 8,000,000 1.34 136.5 345,000 35,120,000
La Patria deposit

La Patria Tonnes Average Grade (g/t) Contained Ounces
Gold Silver Gold
Silver
Inferred 3,600,000 1.48 34.8 171,000 4,030,000
TOTAL PALMAREJO DISTRICT

TOTAL Tonnes Average Grade (g/t) Contained Ounces
Gold Silver Gold Silver
Measured 674,900 2.25 152.9 48,900 3,316,700
Indicated 1,461,900 2.30 164.5 108,000 7,730,800
Meas + Ind 2,136,800 2.28 160.8 156,900 11,047,500
Inferred 20,282,200 1.24 97.8 808,300 63,755,900
1. Cut-off grade; 0.80 g/t (0.023 oz/ton) Au equivalent for Palmarejo
and La Patria and for Guadalupe to 150m depth; 2.5 g/t (0.073
oz/ton) cut-off grade for Guadalupe below 150m depth. Au
equivalent = (Au grade +(Ag grade/55))
2. Mineral resources for Guadalupe and La Patria effective September,
2007
3. Mineral resources are in addition to mineral reserves and have not
demonstrated economic viability

The feasibility study was prepared by Coeur’s technical staff. Mining methods, plans and mining operating costs were reviewed by Golder & Associates. Aker Kvaerner reviewed the project’s capital costs and operating processing costs.

About Coeur