BSG bolnisi gold nl

second quarter 2007 results reserve increases

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    Coeur Reports Second Quarter 2007 Results and Reserve Increases
    Bolnisi and Palmarejo transactions on track for fourth quarter close

    Substantial construction progress at San Bartolome with new safety
    milestones

    New veins discovered at the Cerro Bayo and Martha mines

    -- HIGHLIGHTS --

    -- Quarterly net income of $11.9 million, or $0.04 per diluted share

    -- Cash provided by operations of $11.5 million during second quarter

    -- 3.0 million ounces of total consolidated quarterly silver production

    -- 25,453 ounces of gold production during second quarter

    -- Record budgeted exploration program discovers new veins, expands
    silver mineral reserves by 64% at Cerro Bayo and 49% at Martha

    -- San Bartolome construction progresses toward February 2008 startup,
    as workers surpass one million man-hours milestone without a lost time
    accident

    -- Acquisitions of Bolnisi Gold NL and Palmarejo Silver and Gold
    Corporation, expected to nearly double company production levels and
    resources, on-track for fourth quarter closing

    -- $272.5 million cash and short-term investments at June 30, 2007

    COEUR D'ALENE, IDAHO, August 8 /CNW/ - Coeur d'Alene Mines Corporation
    (NYSE:CDE) (TSX:CDM) today reported quarterly net income of $11.9 million, or
    $0.04 per diluted share, for the second quarter of 2007, compared to net
    income of $32.6 million, or $0.11 per diluted share for the second quarter of
    2006. The second quarter of 2006 included the one-time gain of $11.2 million
    from the Company's sale of its Coeur Silver Valley (CSV) property, and income
    of $1.4 million from CSV operations.

    The Company also reported mid-year results from its 2007 exploration
    program, which resulted in significantly expanded mineral reserves levels at
    its Cerro Bayo and Martha mines, where several new veins were discovered.
    These increases, coupled with the previously announced increase to mineral
    reserves and resources at the Company's large San Bartolome silver project
    demonstrate the significant growth potential of Coeur's South American
    properties.

    For the first six months of 2007, the Company reported net income of
    $25.9 million, or $0.09 per diluted share, compared to net income of $47.0
    million, or $0.16 per share, for the same period in 2006. Excluding the
    one-time gain mentioned above and $2.0 million of income from discontinued
    operations, the Company's net income for the first six months of 2006 was
    $33.9 million, or $0.12 per diluted share.

    Metal sales from continuing operations for the first six months of 2007
    were $102.5 million, compared to $98.9 million in the year-ago period. Metal
    sales from continuing operations in the second quarter of 2007 were $51.7
    million compared to $54.0 million in the year-ago quarter.

    In commenting on the Company's performance, Dennis E. Wheeler, Chairman,
    President and Chief Executive Officer, said, "We are pleased with the
    performance of our operating properties in the second quarter as the
    operational results were consistent overall with the second quarter of 2006.
    Operating cash flow for the second quarter was $11.5 million while metals
    prices for both silver and gold remain strong and at levels that enable the
    Company to generate healthy earnings and cash flows."

    "We are also very pleased to report significant reserve increases at both
    Cerro Bayo and Martha yielding from Coeur's strategic decision to invest a
    record $15.7 million in exploration this year," Mr. Wheeler continued. "This
    increased investment in exploration confirms a meaningful evolution in the
    entire Coeur Chilean and Argentinean exploration programs, building on years
    of geological information about new targets that are leading to discoveries.
    As this aggressive program continues, we are confident of achieving additional
    gains in mineral reserves to further extend the mine lives of these two
    important young mines, with a focus on finding new ore deposits to develop
    into new mines. The exploration success seen at Martha will have direct
    benefit to the standalone mill facility currently under construction and which
    is expected to be completed by the end of the year," Wheeler added.

    Bolnisi Gold and Palmarejo Silver and Gold Transaction

    "Finally, the next step in Coeur's global growth continued to move
    forward with progress with the acquisitions of Bolnisi Gold NL and Palmarejo
    Silver and Gold Corporation, which are expected to close in the fourth
    quarter. We believe this transaction will establish Coeur as the clear leader
    in the silver mining industry with the addition of the world-class Palmarejo
    silver and gold project located in northern Mexico. This transaction, combined
    with the Company's internal growth initiatives, represents an aggressive
    growth strategy designed to generate value for shareholders by dramatically
    increasing production and resources, decreasing companywide cash costs, and
    introducing long-life assets to Coeur's portfolio," Wheeler concluded.

    During the second quarter, Coeur, Bolnisi Gold NL, and Palmarejo Silver
    and Gold Corporation announced that Coeur has completed its due diligence
    under the terms of the Merger Implementation Agreement with Bolnisi and that
    the companies expect to complete the transaction in the fourth quarter of
    2007.

    A Project Development Committee was formed, including Coeur personnel
    Stuart Mathews as Interim General Manager, Mark Moseley Williams as Interim
    Project Manager, and Ed Galindo as Interim Construction Manager.

    While the initial focus will be to develop the Rosario deposit at
    Palmarejo using open pit mining methods, the Project Development Committee
    will also focus on a combined open-pit and underground mine development
    scenario.

    Exploration and Reserve Increases

    During the second quarter, Coeur's record $15.7 million 2007 exploration
    program made significant progress on all fronts, with expanded reserve levels
    at both Cerro Bayo and Martha. The reserve expansion represents further
    development and confirmation of the multi-year exploration programs in Chile
    and Argentina, which have led to new productive discoveries and resources.

    -- Cerro Bayo contained proven and probable mineral reserves increased
    to 9.3 million contained silver ounces and 157,000 gold ounces at mid-year.
    Taking into account first half 2007 mine production, this represents a 64%
    increase in silver ounces and 46% increase in gold ounces from year-end 2006
    reserve levels. In the expanded exploration program, three new vein systems,
    Dagny, Fabiola, and Coyita, were identified during the second quarter. These
    veins occur less than one kilometer east of the Cerro Bayo mill facility. At
    quarter's end, a total of five holes were completed on Dagny, all of which
    encountered ore-grade silver and gold. Further drilling is continuing in the
    area, with anticipated potential for other new vein discoveries.

    -- At the high-grade Martha mine, where the Company is constructing a
    new mill facility, contained proven and probable mineral reserves increased to
    7.6 million contained silver ounces and 10,500 gold ounces at mid-year. Taking
    account of first half 2007 mine production, this represents a 49% increase in
    silver ounces and a 43% increase in gold ounces relative to year-end 2006
    levels. The focus of this year's drilling has been on the existing R4 and Del
    Medio systems, which includes the Francisca and Catalina vein systems, as well
    as drilling on new vein targets.

    -- At the Rochester mine, which has produced over 119 million silver
    ounces for Coeur since inception in 1986, the Company commenced a new
    exploration effort. This program is designed to identify all opportunities for
    new ore that may be conducive for processing in the current crushing and
    leaching facilities and to test new targets for their potential to host
    high-grade silver and gold deposits. Commencing in June, this work has already
    identified targets for drill testing later this year.

    2Q Production Highlights by Individual Property

    -- Rochester (Nevada) - Silver production was slightly higher than the
    previous year's second quarter, with a resulting decrease in cash costs to
    $2.54 per ounce, compared to $2.61 per ounce in the year-earlier period. Cash
    costs per ounce declined 48% from the first quarter of this year, which is a
    trend the Company expects to continue during the second half of the year. Gold
    production was lower in the recent quarter compared to a year ago, as
    anticipated in the heap model.

    -- Cerro Bayo (Chile) - Silver production was significantly lower and
    gold production was higher as compared to the second quarter of 2006. Silver
    production was down as a consequence of conditions experienced during the
    Company's transition into wider mineralized zones which are more amenable to
    mechanized mining methods: a process that commenced late in the second quarter
    of 2007. Both silver and gold production levels are expected to increase for
    the remainder of the year, with lowering cash costs.

    -- Martha (Argentina) - Silver and gold production were above the levels
    of the year-ago quarter - and sharply above the levels of the first quarter of
    2007 - due to the mining of higher grade ores and an increase in tons mined.
    Silver and gold production was up nearly 30% both from the previous quarter
    and from the second quarter last year. Silver cash costs were just $0.04 per
    ounce higher in the recent quarter from the year-ago period, due to higher
    labor costs and taxes, including increased royalties resulting from higher
    realized metals prices in the second quarter of 2007 compared to the first
    quarter of 2006.

    Construction continued on the new $13.9 million mill facility which is
    expected to be operational by the end of the year. The mill will support the
    company's ongoing success in expanding the reserve and resource base at
    Martha.

    -- Endeavor (Australia) -- Silver production increased by 54% from the
    second quarter of last year, with cash costs modestly higher at $2.91 per
    ounce due to higher smelting and refining charges. The mine continues to show
    production improvement since last fall. Production levels are expected to
    continue to show improvement as mine development accelerates into the fourth
    quarter of 2007, with the expectation of sustaining those levels.

    -- Broken Hill (Australia) - Silver production was 476,494 ounces, which
    was 57% higher than the first quarter 2007, with cash costs of $3.20 per
    ounce, which was consistent with this year's first quarter period.

    The Company said it expects full year 2007 production from existing
    operations of approximately 12 million ounces of silver. The Company expects
    to produce 121,000 ounces of gold, which gives effect to the startup of the
    Kensington project subsequent to 2007. Average cash operating cost are
    expected to be $2.39 per ounce of silver.

    Balance Sheet and Capital Investment Highlights

    The Company had $272.5 million in cash and short term investments as of
    June 30, 2007. Capital expenditures during the second quarter of 2007 totaled
    $57.7 million, most of which was spent on the Kensington (Alaska) gold project
    and the San Bartolome (Bolivia) silver project. The Company has sufficient
    liquidity to complete the San Bartolome, Kensington and Palmarejo projects.

    Update on San Bartolome (Bolivia) Silver Project

    Construction continues on schedule and on budget at San Bartolome. The
    more than 950 construction workers on the project have surpassed a total of
    1.3 million man-hours without a lost time accident. Commercial production is
    expected to commence in February 2008, with approximately 9 million ounces
    forecast to be produced during the first full year of production, after the
    plant is fully commissioned.

    During the first six months of 2007, construction work activity has
    increased in all project areas including the process plant and tailings
    facility. Current work includes concrete foundation work in the crusher,
    stockpile and mill areas, tank installation in the leach and Counter Current
    Decantation thickener areas and continued work at the tailings facility. All
    major contracts for the project have been awarded. During the six months ended
    June 30, 2007, Coeur spent approximately $27.7 million on San Bartolome and
    plans to incur additional engineering, procurement and construction costs of
    approximately $120.7 million in 2007.

    The Company is pleased to report that Mike Clarke joined Coeur South
    America as Vice President of Special Projects in July. Mr. Clarke has over 33
    years of operating experience in the mining industry, including mining
    projects in the U.S., Canada, Mexico, Peru, Cuba, and Chile and most recently
    in Bolivia. Clarke will initially be responsible for the startup and
    commissioning of San Bartolome.

    Update on Kensington (Alaska) Gold Project

    At Kensington, capital expenditures in the first six months of 2007
    totaled $58.6 million. On July 10, workers achieved breakthrough and completed
    the nearly two-and-a-half mile tunnel between the Kensington and the Jualin
    property, where the mill and processing facilities are located. Contractors
    from Kake Tribal/Redpath Native Corporation joint venture, along with Coeur
    Alaska, completed the final 6,800 feet of tunneling over the past year. In
    addition, the processing facility and mill are expected to be completed during
    August. The Company is continuing to review its options, including engaging in
    discussions with the plaintiffs, to resolve the Kensington litigation to
    enable the mine to proceed to production.

    Coeur d'Alene Mines Corporation is one of the world's leading primary
    silver producers and has a strong presence in gold. The company has mining
    interests in Alaska, Argentina, Australia, Bolivia, Chile, and Nevada.

    Conference Call Information

    Coeur d'Alene Mines Corporation will hold a conference call to discuss
    the Company's second quarter 2007 results at 1 p.m. Eastern time on August 8,
    2007. To listen live via telephone, call 866-853-4681 (US and Canada) or
    660-422-4718 (International). The conference ID number is 11745658. The
    conference call and presentation will also be web cast on the Company's web
    site www.coeur.com. A replay of the call will be available through August 15,
    2007. The replay dial-in numbers are 800-642-1687 (US and Canada) and
    706-645-9291 (International) and the access code is 11745658.

    Cautionary Statement

    Company press releases may contain numerous forward-looking statements
    within the meaning of securities legislation in the United States and Canada
    relating to the Company's silver and gold mining business. Such statements are
    subject to numerous assumptions and uncertainties, many of which are outside
    the Company's control. Operating, exploration and financial data, and other
    statements in this document are based on information the Company believes
    reasonable, but involve significant uncertainties as to future gold and silver
    prices, costs, ore grades, estimation of gold and silver reserves, mining and
    processing conditions, construction schedules, currency exchange rates, and
    the completion and/or updating of mining feasibility studies, changes that
    could result from the Company's future acquisition of new mining properties or
    businesses, the risks and hazards inherent in the mining business (including
    environmental hazards, industrial accidents, weather or geologically related
    conditions), regulatory and permitting matters, risks inherent in the
    ownership and operation of, or investment in, mining properties or businesses
    in foreign countries, as well as other uncertainties and risk factors set out
    in the Company's filings from time to time with the SEC and the Ontario
    Securities Commission, including, without limitation, the Company's reports on
    Form 10-K and Form 10-Q. Actual results and timetables could vary
    significantly from the estimates presented. Readers are cautioned not to put
    undue reliance on forward-looking statements. The Company disclaims any intent
    or obligation to update publicly such forward-looking statements, whether as a
    result of new information, future events or otherwise.

    Donald J. Birak, Coeur's Senior Vice President of Exploration, is the
    qualified person responsible for the preparation of the scientific and
    technical information concerning Coeur's mineral reserve information in this
    document. For a description of the key assumptions, parameters and methods
    used to estimate mineral reserves, as well as a general discussion of the
    extent to which the estimates may be affected by any known environmental,
    permitting, legal, title, taxation, socio-political, marketing or other
    relevant factors, please see the Technical Reports for each project as filed
    on SEDAR at www.sedar.com.

    Additional Information

    The proxy statement that Coeur plans to file with the United States
    Securities and Exchange Commission ("SEC") and Ontario Securities Commission
    and mail to its shareholders will contain information about Coeur, Bolnisi,
    Palmarejo, the Palmarejo Project, the transaction and related matters.
    Shareholders are urged to read the proxy statement carefully when it is
    available, as it will contain important information that shareholders should
    consider before making a decision about the transaction. In addition to
    receiving the proxy statement from Coeur by mail, shareholders will also be
    able to obtain the proxy statement, as well as other filings containing
    information about Coeur, without charge, from the SEC's website (www.sec.gov)
    and the Canadian securities regulators' website (www.sedar.com) or, without
    charge, from Coeur. This announcement is neither a solicitation of a proxy, an
    offer to purchase, nor a solicitation of an offer to sell shares of Coeur.
    Coeur and its executive officers and directors may be deemed to be
    participants in the solicitation of proxies from Coeur's shareholders with
    respect to the proposed transaction. Information regarding any interests that
    Coeur's executive officers and directors may have in the transaction will be
    set forth in the proxy statement. The Coeur shares to be issued in the
    transaction have not been and will not be registered under the Securities Act
    of 1933, as amended, and may not be offered or sold in the United States
    absent registration or an applicable exemption from registration requirements.
    Coeur intends to issue such Coeur shares pursuant to the exemption from
    registration set forth in Section 3(a)(10) of the Securities Act.

    Copies of the merger implementation agreements and certain related
    documents will be filed with the SEC and Canadian securities regulators and
    will be available at the SEC's website at www.sec.gov and at the Canadian
    securities regulators' website at www.sedar.com.

    <<
    Proven Mineral Reserves (June 30, 2007)
    ----------------------------------------------------------------
    Grade
    Short (ounces/ton) Ounces (000s)
    Tons ------------------------------
    Property Location (000s) Silver Gold Silver Gold
    ----------------------------------------------------------------

    Cerro Bayo Chile 598.5 8.38 0.139 5,017 83.0
    Martha Argentina 33.6 78.70 0.116 2,646 3.9

    ----------------------------------------------------------------
    Probable Mineral Reserves (June 30, 2007)
    ----------------------------------------------------------------
    Grade
    Short (ounces/ton) Ounces (000s)
    Tons ------------------------------
    Property Location (000's) Silver Gold Silver Gold
    ----------------------------------------------------------------

    Cerro Bayo Chile 552.3 7.74 0.134 4,275 74.0
    Martha Argentina 80.1 61.52 0.082 4,930 6.6
    >>

    Mineral Reserves correspond to Ore Reserves per US SEC classification.
    Metal prices used to determine ore reserves were $10.00/oz. Ag and $550/oz Au.

    Cut-off grades: Cerro Bayo; variable between 4.46 and 5.26 grams/tonne Au
    equivalent, Martha; variable between 900 and 1,200 grams/tonne Ag equivalent.
    For an explanation of the determination of cut-off grades, please refer to
    Coeur's Technical Reports on www.sedar.com.

    January through June, 2007 mine production: Cerro Bayo; 157,500 tons
    grading 4.82 oz/ton Ag and 0.133 oz/ton Au. Martha; 17,900 tons grading 84.77
    oz/ton Ag and 0.115 oz/ton Au.

    <<
    Proven Mineral Reserves (December 31, 2006)
    -----------------------------------------------------------------
    Grade
    Short (ounces/ton) Ounces (000s)
    Tons -------------------------------
    Property Location (000s) Silver Gold Silver Gold
    -----------------------------------------------------------------

    Cerro Bayo Chile 375 10.41 0.20 3,902 75
    Martha Argentina 33 64.05 0.10 2,118 3

    -----------------------------------------------------------------
    Probable Mineral Reserves (December 31, 2006)
    -----------------------------------------------------------------
    Grade
    Short (ounces/ton) Ounces (000s)
    Tons -------------------------------
    Property Location (000's) Silver Gold Silver Gold
    -----------------------------------------------------------------

    Cerro Bayo Chile 259 8.66 0.18 2,242 47
    Martha Argentina 66 59.97 0.08 3,966 6
    >>

    Metal prices used to determine ore reserves were $8.00/oz Ag and
    $475.00/oz Au at Cerro Bayo and Martha.

    <<
    COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS AND
    COMPREHENSIVE INCOME
    (Unaudited)
    Three Months Six Months
    Ended June 30, Ended June 30,
    2007 2006 2007 2006
    ------------------------------------
    REVENUES (In thousands except per share data)

    Sales of metal $ 51,664 $ 54,041 $102,524 $ 98,895

    COSTS AND EXPENSES
    Production costs applicable to
    sales 26,740 21,587 47,760 41,687
    Depreciation and depletion 5,753 6,989 12,774 13,307
    Administrative and general 5,710 4,528 11,884 9,618
    Exploration 2,549 1,934 5,430 3,901
    Litigation settlement - 469 507 469
    ------------------------------------

    Total cost and expenses 40,752 35,507 78,355 68,982
    ------------------------------------

    OTHER INCOME AND EXPENSE
    Interest and other income 4,316 4,794 8,866 7,314
    Interest expense, net of
    capitalized interest ( 83) (367) (170) (888)
    ------------------------------------
    Total other income and expense 4,233 4,427 8,696 6,426
    ------------------------------------

    Income from continuing operations
    before income taxes 15,145 22,961 32,865 36,339
    Income tax provision (3,227) (2,829) (6,928) (2,481)
    ------------------------------------

    INCOME FROM CONTINUING OPERATIONS 11,918 20,132 25,937 33,858
    Income from discontinued
    operations, net of income taxes - 1,357 - 1,968
    Gain on sale of net assets of
    discontinued operations - 11,159 - 11,159
    ------------------------------------

    NET INCOME 11,918 32,648 25,937 46,985
    Other comprehensive income 688 1,736 516 1,740
    ------------------------------------

    COMPREHENSIVE INCOME $ 12,606 $ 34,384 $ 26,453 $ 48,725
    ------------------------------------

    BASIC AND DILUTED INCOME (LOSS)
    PER SHARE
    Basic income per share:
    Income from continuing operations $ 0.04 $ 0.07 $ 0.09 $ 0.13
    Income from discontinued
    operations - 0.05 - 0.05
    ------------------------------------
    Net income $ 0.04 $ 0.12 $ 0.09 $ 0.18
    ------------------------------------

    Diluted income per share:
    Income from continuing operations $ 0.04 $ 0.07 $ 0.09 $ 0.12
    Income from discontinued
    operations - 0.04 - 0.04
    ------------------------------------
    Net income $ 0.04 $ 0.11 $ 0.09 $ 0.16
    ------------------------------------

    Weighted average number of shares
    of common stock
    Basic 277,763 277,474 277,720 265,049
    Diluted 302,240 302,188 302,205 289,832
    >>

    Operating Statistics From Continuing Operations

    The following table presents information by mine and consolidated sales
    information for the three- and six-month periods ended June 30, 2007 and 2006:

    <<
    Three Months Ended June Six Months Ended June
    30, 30,
    2007 2006 2007 2006
    ----------- ----------- ----------- -----------
    Rochester
    Tons processed 2,065,481 2,737,547 4,148,753 5,269,447
    Ore grade/Ag oz 0.59 0.76 0.67 0.72
    Ore grade/Au oz .006 .009 .007 .011
    Recovery/Ag oz (A) 100.7% 55.5% 86.2% 60.9%
    Recovery/Au oz (A) 117.7% 75.1% 103.6% 58.3%
    Silver production
    ounces 1,227,233 1,153,295 2,410,029 2,301,658
    Gold production
    ounces 14,146 18,265 28,435 34,382
    Cash cost/oz $ 2.54 $ 2.61 $ 3.71 $ 3.46
    Total cost/oz $ 5.21 $ 5.80 $ 6.96 $ 6.70
    Cerro Bayo
    Tons milled 99,095 115,361 157,545 215,636
    Ore grade/Ag oz 3.92 7.20 4.82 6.43
    Ore grade/Au oz .110 .094 .133 .094
    Recovery/Ag oz 95.1% 95.1% 95.0% 94.2%
    Recovery/Au oz 93.4% 92.1% 93.7% 92.1%
    Silver production
    ounces 369,500 789,746 721,448 1,305,568
    Gold production
    ounces 10,218 9,935 19,646 18,729
    Cash cost/oz $ 7.16 $ 1.82 $ 4.26 $ 2.47
    Total cost/oz $ 10.91 $ 3.77 $ 8.07 $ 4.63
    Martha Mine
    Tons milled 9,663 6,817 17,864 15,666
    Ore grade/Ag oz 89.12 97.79 84.77 79.75
    Ore grade/Au oz .122 .134 .115 .105
    Recovery/Ag oz 93.9% 95.0% 94.6% 94.2%
    Recovery/Au oz 92.5% 91.8% 93.3% 92.0%
    Silver production
    ounces 809,026 633,014 1,432,124 1,176,500
    Gold production
    ounces 1,089 839 1,924 1,509
    Cash cost/oz $ 5.18 $ 5.14 $ 5.59 $ 5.04
    Total cost/oz $ 5.57 $ 5.61 $ 6.00 $ 5.50
    Endeavor
    Tons milled 251,785 118,775 537,865 221,778
    Ore grade/Ag oz 1.03 1.11 0.96 1.20
    Recovery/Ag oz 48.2% 61.3% 55.1% 62.1%
    Silver production
    ounces 124,441 80,890 284,718 165,170
    Cash cost/oz $ 2.91 $ 2.79 $ 3.06 $ 2.45
    Total cost/oz $ 3.89 $ 4.09 $ 4.04 $ 3.75
    Broken Hill
    Tons milled 447,771 525,888 749,388 1,106,911
    Ore grade/Ag oz 1.28 1.32 1.22 1.35
    Recovery/Ag oz 83.2% 75.8% 85.0% 72.2%
    Silver production
    ounces 476,494 528,041 779,342 1,085,353
    Cash cost/oz $ 3.20 $ 3.27 $ 3.19 $ 3.07
    Total cost/oz $ 5.16 $ 6.02 $ 5.15 $ 5.82
    CONSOLIDATED
    PRODUCTION TOTALS
    Silver ounces 3,006,694 3,184,986 5,627,661 6,034,249
    Gold ounces 25,453 29,039 50,005 54,620
    Cash cost per
    oz/silver $ 3.93 $ 3.03 $ 4.15 $ 3.46
    Total cost/oz $ 5.94 $ 5.25 $ 6.45 $ 5.78
    CONSOLIDATED SALES
    TOTALS
    Silver ounces sold 2,805,479 3,249,854 5,481,913 6,127,744
    Gold ounces sold 25,520 29,157 50,152 54,891
    Realized price per
    silver ounce $ 13.47 $ 13.10 $ 13.60 $ 11.82
    Realized price per
    gold ounce $ 665 $ 649 $ 655 $ 620

    (A) The leach cycle at Rochester requires an extended period to
    recover gold and silver contained in the ore. The Company estimates
    the ultimate recovery to be approximately 61.5% for silver and 93%
    for gold. However, ultimate recoveries will not be known until
    leaching operations cease which is currently estimated for 2011.
    Current recovery may vary significantly from ultimate recovery.
    >>

    Operating Statistics From Discontinued Operation

    The following table presents information for Coeur Silver Valley which
    was sold on June 1, 2006:

    <<
    Three Months Ended Six Months Ended
    June 30, June 30,
    2007 2006 2007 2006
    ------------------- -------------------
    Silver Valley/Galena
    Tons milled - 20,224 - 52,876
    Ore grade/Silver oz - 13.92 - 15.15
    Recovery/Silver oz - 95.6% - 96.0%
    Silver production ounces - 269,027 - 768,674
    Cash cost/oz - $10.72 - $9.75
    Total cost/oz - $11.04 - $10.64
    Gold production - 58 - 180
    >>

    "Cash Costs per Ounce" are calculated by dividing the cash costs computed
    for each of the Company's mining properties for a specified period by the
    amount of gold ounces or silver ounces produced by that property during that
    same period. Management uses cash costs per ounce as a key indicator of the
    profitability of each of its mining properties. Gold and silver are sold and
    priced in the world financial markets on a US dollar per ounce basis.

    "Cash Costs" are costs directly related to the physical activities of
    producing silver and gold, and include mining, processing and other plant
    costs, third-party refining and smelting costs, marketing expense, on-site
    general and administrative costs, royalties, in-mine drilling expenditures
    that are related to production and other direct costs. Sales of by-product
    metals are deducted from the above in computing cash costs. Cash costs exclude
    depreciation, depletion and amortization, corporate general and administrative
    expense, exploration, interest, and pre-feasibility costs and accruals for
    mine reclamation. Cash costs are calculated and presented using the "Gold
    Institute Production Cost Standard" applied consistently for all periods
    presented.

    Total cash costs per ounce is a non-GAAP measurement and investors are
    cautioned not to place undue reliance on it and are urged to read all GAAP
    accounting disclosures presented in the consolidated financial statements and
    accompanying footnotes. In addition, see the reconciliation of "cash costs" to
    production costs under "Reconciliation of Non-GAAP Cash Costs to GAAP
    Production Costs" set forth below.

    Reconciliation of Non-GAAP Cash Costs to GAAP Production Costs

    The tables below present reconciliations between Non-GAAP cash costs per
    ounce to production costs applicable to sales including depreciation,
    depletion and amortization (GAAP).

    Total cash costs include all direct and indirect operating cash costs
    related directly to the physical activities of producing metals, including
    mining, processing and other plant costs, third-party refining and marketing
    expense, on-site general and administrative costs, royalties and mining
    production taxes, net of by-product revenues earned from all metals other than
    the primary metal produced at each unit. Total cash costs are a performance
    measure and provide management and investors an indication of net cash flow,
    after consideration of the realized price received for production sold.
    Management also uses this measurement for the comparative monitoring of
    performance of our mining operations period-to-period from a cash flow
    perspective. "Total cash cost per ounce" is a measure developed by precious
    metals companies in an effort to provide a comparable standard, however, there
    can be no assurance that our reporting of this non-GAAP measure is similar to
    that reported by other mining companies.

    Production costs applicable to sales including depreciation, depletion
    and amortization, is the most comparable financial measure calculated in
    accordance with GAAP to total cash costs. The sum of the production costs
    applicable to sales and depreciation, depletion and amortization for our mines
    as set forth in the tables below is included in our Consolidated Statement of
    Operations and Comprehensive Loss.

    <<
    THREE MONTHS ENDED JUNE 30, 2007
    (In thousands except ounces and per ounce costs)

    Rochester Cerro Bayo Martha
    --------------------------------------

    Production of Silver
    (ounces) 1,227,233 369,500 809,026
    Cash Costs per ounce $ 2.54 $ 7.16 $ 5.18
    --------------------------------------

    Total Cash Costs (Non-GAAP) $ 3,112 $ 2,645 $ 4,190
    Add/Subtract:
    Third party smelting costs - (845) (464)
    By-product credit (1) 9,420 6,776 726
    Other adjustments 511 - -
    Change in inventory 205 (546) -
    Depreciation, depletion and
    amortization 2,765 1,384 313
    --------------------------------------

    Production costs applicable
    to sales, including
    depreciation, depletion and
    amortization (GAAP) $ 16,013 $ 9,414 $ 4,765
    --------------------------------------

    Endeavor Broken Hill Total
    ----------------------------------------

    Production of Silver
    (ounces) 124,441 476,494 3,006,694
    Cash Costs per ounce $ 2.91 $ 3.20 $ 3.93
    ----------------------------------------

    Total Cash Costs (Non-GAAP) $ 362 $ 1,525 $ 11,834
    Add/Subtract:
    Third party smelting costs (249) (600) (2,158)
    By-product credit (1) - - 16,922
    Other adjustments - - 511
    Change in inventory 19 (47) (369)
    Depreciation, depletion and
    amortization 122 934 5,518
    ----------------------------------------

    Production costs applicable
    to sales, including
    depreciation, depletion and
    amortization (GAAP) $ 254 $ 1,812 $ 32,258
    ----------------------------------------
    >>

    <<
    THREE MONTHS ENDED JUNE 30, 2006
    (In thousands except ounces and per ounce costs)

    Rochester Cerro Bayo Martha
    ---------------------------------------

    Production of Silver
    (ounces) 1,153,295 789,746 633,014
    Cash Costs per ounce $ 2.61 $ 1.82 $ 5.14
    ---------------------------------------

    Total Cash Costs (Non-GAAP) $ 3,008 $ 1,439 $ 3,251
    Add/Subtract:
    Third party smelting costs - (1,021) (469)
    By-product credit (1) 11,535 6,298 522
    Other adjustments 197 - -
    Change in inventory (4,130) (245) (159)
    Depreciation, depletion and
    amortization 3,480 1,537 302
    ---------------------------------------

    Production costs applicable
    to sales, including
    depreciation, depletion and
    amortization (GAAP) $ 14,090 $ 8,008 $ 3,447
    ---------------------------------------

    Endeavor Broken Hill Total
    ----------------------------------------

    Production of Silver
    (ounces) 80,890 528,041 3,184,986
    Cash Costs per ounce $ 2.79 $ 3.27 $ 3.03
    ----------------------------------------

    Total Cash Costs (Non-GAAP) $ 225 $ 1,727 $ 9,650
    Add/Subtract:
    Third party smelting costs (155) (762) (2,407)
    By-product credit (1) - - 18,355
    Other adjustments - - 197
    Change in inventory (6) 332 (4,208)
    Depreciation, depletion and
    amortization 105 1,452 6,876
    ----------------------------------------

    Production costs applicable
    to sales, including
    depreciation, depletion and
    amortization (GAAP) $ 169 $ 2,749 $ 28,463
    ----------------------------------------
    >>

    <<
    SIX MONTHS ENDED JUNE 30, 2007
    (In thousands except ounces and per ounce costs)

    Rochester Cerro Bayo Martha
    ---------------------------------------

    Production of Silver
    (ounces) 2,410,029 721,448 1,432,124
    Cash Costs per ounce $ 3.71 $ 4.26 $ 5.59
    ---------------------------------------

    Total Cash Costs (Non-GAAP) $ 8,934 $ 3,071 $ 7,999
    Add/Subtract:
    Third party smelting costs - (1,452) (982)
    By-product credit (1) 18,696 12,914 1,271
    Other adjustments 650 - -
    Change in inventory (3,276) (2,333) 518
    Depreciation, depletion and
    amortization 7,181 2,749 584
    ---------------------------------------

    Production costs applicable
    to sales, including
    depreciation, depletion and
    amortization (GAAP) $ 32,185 $ 14,949 $ 9,390
    ---------------------------------------

    Endeavor Broken Hill Total
    ----------------------------------------

    Production of Silver
    (ounces) 284,718 779,342 5,627,661
    Cash Costs per ounce $ 3.06 $ 3.19 $ 4.15
    ----------------------------------------

    Total Cash Costs (Non-GAAP) $ 873 $ 2,483 $ 23,360
    Add/Subtract:
    Third party smelting costs (616) (968) (4,018)
    By-product credit (1) - - 32,881
    Other adjustments - - 650
    Change in inventory 32 (54) (5,113)
    Depreciation, depletion and
    amortization 279 1,528 12,321
    ----------------------------------------

    Production costs applicable
    to sales, including
    depreciation, depletion and
    amortization (GAAP) $ 568 $ 2,989 $ 60,081
    ----------------------------------------
    >>

    <<
    SIX MONTHS ENDED JUNE 30, 2006
    (In thousands except ounces and per ounce costs)

    Rochester Cerro Bayo Martha
    ---------------------------------------

    Production of Silver
    (ounces) 2,301,658 1,305,568 1,176,500
    Cash Costs per ounce $ 3.46 $ 2.47 $ 5.04
    ---------------------------------------

    Total Cash Costs (Non-GAAP) $ 7,972 $ 3,222 $ 5,932
    Add/Subtract:
    Third party smelting costs - (1,792) (781)
    By-product credit (1) 20,476 11,171 893
    Other adjustments 936 - -
    Change in inventory (7,022) (1,596) (223)
    Depreciation, depletion and
    amortization 6,518 2,820 540
    ---------------------------------------

    Production costs applicable
    to sales, including
    depreciation, depletion and
    amortization (GAAP) $ 28,880 $ 13,825 $ 6,361
    ---------------------------------------

    Endeavor Broken Hill Total
    ----------------------------------------

    Production of Silver
    (ounces) 165,170 1,085,353 6,034,249
    Cash Costs per ounce $ 2.45 $ 3.07 $ 3.46
    ----------------------------------------

    Total Cash Costs (Non-GAAP) $ 405 $ 3,336 $ 20,867
    Add/Subtract:
    Third party smelting costs (257) (1,334) (4,164)
    By-product credit (1) - - 32,540
    Other adjustments - - 936
    Change in inventory (54) 403 (8,492)
    Depreciation, depletion and
    amortization 214 2,985 13,077
    ----------------------------------------

    Production costs applicable
    to sales, including
    depreciation, depletion and
    amortization (GAAP) $ 308 $ 5,390 $ 54,764
    ----------------------------------------
    >>

    The following tables present a reconciliation between non-GAAP cash costs
    per ounce to GAAP production costs applicable to sales reported in
    Discontinued Operations:

    <<
    Coeur Silver Valley/Galena THREE MONTHS SIX MONTHS
    ENDED JUNE 30, ENDED JUNE 30,
    ----------------------------------------
    2007 2006 (2) 2007 2006 (2)
    ------------------------------
    (In thousands except ounces
    and per ounce costs)
    Production of Silver (ounces) - 269,027 - 768,674
    Cash Costs per ounce - $10.72 - $9.75
    --------- ---------

    Total Cash Costs (Non-GAAP) - $2,883 - $7,498
    Add/Subtract:
    Third party smelting costs - (595) - (1,464)
    By-product credit (2) - 677 - 1,473
    Change in inventory - 1,008 - 726
    Depreciation, depletion and amortization 86 - 681
    --------- ---------

    Production costs applicable to sales,
    including depreciation, depletion and
    amortization (GAAP) - $ 4,059 - $ 8,914
    --------- ---------
    (1) By-product credits are based upon production units and the
    period's average metal price for the purposes of reporting cash costs
    per ounce.

    (2) Amounts represent two and five months ended May 31, 2006,
    respectively.
    >>

    <<
    COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (Unaudited)

    June 30, December 31,
    2007 2006
    ----------------------
    ASSETS (In Thousands)


    CURRENT ASSETS
    Cash and cash equivalents $ 236,232 $ 270,672
    Short-term investments 36,270 70,373
    Receivables 38,732 43,233
    Ore on leach pad 32,729 31,302
    Metal and other inventory 18,353 16,341
    Deferred tax assets 3,872 3,629
    Prepaid expenses and other 8,096 6,047
    ----------------------
    374,284 441,597


    PROPERTY, PLANT AND EQUIPMENT
    Property, plant and equipment 166,368 132,315
    Less accumulated depreciation (67,871) (64,206)
    ----------------------
    98,497 68,109

    MINING PROPERTIES
    Operational mining properties 135,381 130,447
    Less accumulated depletion (122,283) (116,361)
    ----------------------
    13,098 14,086

    Mineral interests 74,526 72,201
    Less accumulated depletion (9,635) (7,828)
    ----------------------
    64,891 64,373

    Non-producing and development properties 258,979 190,988
    ----------------------
    336,968 269,447

    OTHER ASSETS
    Ore on leach pad, non-current portion 37,374 35,367
    Restricted cash and cash equivalents 21,652 19,492
    Debt issuance costs, net 4,999 5,151
    Deferred tax assets 1,389 2,544
    Other 8,749 7,919
    ----------------------
    74,163 70,473
    ----------------------
    TOTAL ASSETS $ 883,912 $ 849,626
    ----------------------
    >>

    <<
    COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (Unaudited)

    June 30, December 31,
    2007 2006
    -----------------------
    (In thousands except
    share data)

    LIABILITIES AND SHAREHOLDERS' EQUITY

    CURRENT LIABILITIES
    Accounts payable $ 35,967 $ 22,315
    Accrued liabilities and other 8,877 11,865
    Accrued income taxes 5,363 10,317
    Accrued payroll and related benefits 7,005 8,527
    Accrued interest payable 1,031 1,031
    Current portion of reclamation and mine
    closure 4,662 4,460
    -----------------------
    62,905 58,515
    LONG-TERM LIABILITIES
    1 1/4% Convertible Senior Notes due January
    2024 180,000 180,000
    Reclamation and mine closure 27,579 27,226
    Other long-term liabilities 4,265 2,891
    -----------------------
    211,844 210,117
    COMMITMENTS AND CONTINGENCIES


    SHAREHOLDERS' EQUITY
    Common Stock, par value $1.00 per share;
    authorized 500,000,000 shares, issued
    279,506,709 and 279,054,344 shares in 2007
    and 2006 (1,059,211 shares held in treasury) 279,507 279,054
    Additional paid-in capital 779,062 777,798
    Accumulated deficit (437,285) (463,221)
    Shares held in treasury (13,190) (13,190)
    Accumulated other comprehensive income 1,069 553
    -----------------------
    609,163 580,994
    -----------------------
    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 883,912 $ 849,626
    -----------------------
    >>

    <<
    COEUR D'ALENE MINES CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)

    Three Months Six Months
    Ended June 30, Ended June 30,
    2007 2006 2007 2006
    -------------------------------------
    (In Thousands)

    CASH FLOWS FROM OPERATING
    ACTIVITIES:
    Net income $ 11,918 $ 32,648 $ 25,937 $ 46,985
    Add (deduct) non-cash items:
    Depreciation and depletion 5,753 6,989 12,774 13,307
    Deferred taxes 901 (1,058) 1,274 (3,131)
    Unrealized loss on embedded
    derivative, net 1,125 4,760 1,090 3,201
    Share based compensation 1,044 538 1,606 1,164
    Gain on sale of net assets of
    discontinued operations and
    other, net - (11,306) - (11,322)
    Other charges (credits) (252) 175 (231) 692
    Changes in Operating Assets and
    Liabilities:
    Receivables (1,780) (4,020) 5,784 810
    Prepaid and other current
    assets (3,004) (1,362) (3,160) (1,025)
    Inventories (404) (4,355) (5,446) (8,945)
    Accounts payable and accrued
    liabilities (3,757) 8,554 (5,417) 7,636
    Discontinued operations - 469 - (176)
    -------------------------------------

    CASH PROVIDED BY OPERATING
    ACTIVITIES 11,544 32,032 34,211 49,196

    CASH FLOWS FROM INVESTING
    ACTIVITIES:
    Capital expenditures (57,701) (25,677) (99,704) (53,484)
    Purchases of short-term
    investments (17,267) (80,527) (50,578) (224,148)
    Proceeds from sales of short-
    term investments 22,101 62,890 82,261 101,106
    Other (41) (202) 427 (443)
    Discontinued operations - 14,862 - 14,365
    -------------------------------------
    CASH USED IN INVESTING ACTIVITIES (52,908) (28,654) (67,594) (162,604)

    CASH FLOWS FROM FINANCING
    ACTIVITIES:
    Retirement of long-term debt
    and capital leases (392) (352) (778) (689)
    Proceeds from issuance of
    common stock - - - 154,560
    Payment of public offering
    costs - - - (8,388)
    Common stock repurchased - - (277) -
    Other - 280 (2) (74)
    -------------------------------------
    CASH PROVIDED BY (USED IN)
    FINANCING ACTIVITIES (392) (72) (1,057) 145,409
    -------------------------------------

    INCREASE (DECREASE) IN CASH AND
    CASH EQUIVALENTS (41,756) 3,306 (34,440) 32,001

    Cash and cash equivalents at
    beginning of period 277,988 83,591 270,672 54,896
    -------------------------------------
    Cash and cash equivalents at
    end of period $236,232 $ 86,897 $236,232 $ 86,897
    -------------------------------------
    >>



    For further information: Coeur d'Alene Mines Corporation Tony Ebersole,
    208-665-0777



 
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