Production Startup and First Pour at New Palmarejo Mine

COEUR D'ALENE, ID - Coeur d'Alene Mines Corporation reported that it has started producing silver and gold at its new 100%-owned Palmarejo mine in northern Mexico, where the first gold/silver dorŽ was poured.
"We are extremely pleased with the on-time commencement of production at Palmarejo, Coeur's newest mine project and one of the largest new silver/gold mines in the world," said Dennis Wheeler, Chairman, President and Chief Executive Officer of Coeur. "We are proud of the work accomplished by our Palmarejo team, including the local workforce, who completed construction on schedule and on budget. Combined with production from our other new silver mine - San BartolomŽ in Bolivia - Coeur expects silver production to increase 66% this year to approximately 20 million ounces."
The mine recently was awarded the Socially Responsible Business Distinction for 2008 by the Centro Mexicano para la Filantropia (CEMEFI) for the mine's demonstrated excellence in social responsibility. The award is a national recognition of Coeur Mexicana and its ongoing contributions to community and strategies and policies in this area. The award also recognized the way Coeur personnel conducts its business in Mexico, and the positive working environment for employees and contractors.
The predominantly Mexican construction and operations workforce has surpassed 1.2 million man hours without a lost time accident. The total size of the workforce peaked at 1,750 workers in December, which included 424 operating personnel. Going forward, the operations workforce is expected to total 454 personnel.
In 2009, Palmarejo is expected to produce 5.3 million ounces of silver and 72,000 ounces of gold at an average cash operating cost of approximately ($0.50) per silver ounce1. Based on an initial eleven year mine plan, Palmarejo has the capacity to produce an average of 9 million ounces of silver and 120,000 ounces of gold annually.
The company’s address is 505 Front Ave., Coeur d'Alene, ID 83814.