Coeur Mining To Acquire Wharf Mine From Goldcorp

CHICAGO - Coeur Mining, Inc. has entered into a definitive agreement with a subsidiary of Goldcorp Inc. to acquire 100% of the Wharf Gold Mine, a producing gold mine located near Lead, South Dakota. The Mine is expected to produce 85,000 -- 90,000 ounces of gold in 2015 at an all-in sustaining cost of $800 -- $875 per gold ounce. Expected to increase Company's 2015 EBITDA by over 30% and boost free cash flow; Anticipated to reduce Coeur's consolidated unit costs; Provides quality, immediate growth from accretive transaction; Adds stable, established source of production and cash flow to Coeur's existing portfolio; Enhances Company's overall geopolitical risk profile; Leverages Coeur's 25 years of open-pit, heap leach experience; Would represent a 24% increase to Coeur's total gold reserves.

"The acquisition of Wharf further establishes Coeur as a growing producer of silver and gold in the Americas while improving overall portfolio with strong cash flow generation in a low-risk jurisdiction. Wharf is a straightforward open-pit operation that has been well-run for over thirty years. Ongoing capital requirements are expected to be minimal, resulting in low expected all-in costs and significant expected free cash flow," said Mitchell J. Krebs, President and Chief Executive Officer. "We believe this transaction will generate an attractive rate of return and is immediately accretive to cash flow and net asset value. We are excited to welcome our new team members at Wharf as we look to pursue identified opportunities to optimize the operation, add incremental value, and extend the mine life."

Wharf is an open-pit gold mine located in the Black Hills mining district in Lead, South Dakota. The Black Hills district was historically the second largest gold producing district in the United States and includes the renowned Homestake mine. Wharf has been in production for over 30 years after commencing production with an estimated three-year mine life. During that period, Wharf has produced over 2.0 million ounces of gold and has a current reserve base of 560,000 ounces of gold.

Processing consists of crushing followed by heap leaching, providing gold recovery rates around 80%. Wharf is expected to produce 85,000 -- 90,000 ounces of gold in 2015 at an all-in sustaining cost of $800 -- $875 per gold ounce1.

The mine has a highly experienced, stable, and dedicated local workforce totaling approximately 190 people with a strong safety track record. In addition, Wharf operates with a strong social license, which has provided substantial benefits to the operation.