February 23, 2012 at 10:19 AM EST
ADDING and REPLACING Coeur Achieves Record Production, Sales and Operating Cash Flow in 2011

Add, after Table 6 and before Conference Call information, the following footnote:

1. EBITDA, operating cash flow, adjusted earnings and cash operating costs per ounce are non-GAAP measures. Please see the tables in the Appendix for reconciliation to GAAP.

The corrected release reads:

COEUR ACHIEVES RECORD PRODUCTION, SALES AND OPERATING CASH FLOW IN 2011

Coeur d'Alene Mines Corporation (NYSE:CDE)(TSX:CDM) realized all-time record full-year production, metal sales and operating cash flow1 in 2011.

2011 Highlights:

  • Net metal sales nearly doubled compared to 2010 to a record $1.0 billion.
  • Operating cash flow1 increased 147% compared to 2010 to a record $454.4 million.
  • Adjusted earnings1 reached a record $232.5 million, or $2.60 per share, nearly a five-fold increase compared to 2010 adjusted earnings of $41.5 million, or $0.48 per share.
  • Net income totaled a record $93.5 million, or $1.05 per share, compared to a net loss of ($91.3) million, or ($1.05) per share in 2010.
  • Average realized silver and gold prices were $35.15 per ounce and $1,588 per ounce, 67% and 26% respectively, higher than 2010.
  • Record silver production topped 19.1 million ounces, a 14% increase over 2010, at cash operating costs of $6.31 per ounce1, a 3% decrease from 2010.
  • Record gold production reached 220,382 ounces in 2011, a 40% increase over 2010. Kensington's cash operating costs were $1,088 per gold ounce, a 10% increase from 2010.
  • Proven and probable silver reserves totaled 216.3 million ounces at year-end, while proven and probable gold reserves totaled 2.3 million ounces.
  • Working capital was $212.8 million at year-end compared to negative working capital at year-end 2010.
  • Cash and equivalents increased to $175.0 million at December 31, 2011, up 165% from year-end 2010.

Fourth Quarter Highlights:

  • Silver production of 5.3 million ounces.
  • Cash operating costs1 of $6.19 per silver ounce.
  • Gold production of 49,544 ounces.
  • Metal sales totaled $246.9 million.
  • Adjusted earnings1 were $43.2 million, or $0.50 per share.
  • Operating cash flow1 totaled $97.5 million.

2012 Outlook:

  • Estimated silver production of 18.5 million - 20.0 million ounces and gold production of 210,000 - 230,000 ounces.
  • Estimated cash operating costs1 of $6.50 to $7.50 per ounce of silver (assuming $1,500 per ounce gold for the by-product credit).
  • Estimated $40.0 million exploration program, a 53% increase compared to 2011 levels, targeting resource-to-reserve conversions, and reserve and resource expansions by year-end 2012.

Mitchell J. Krebs, Coeur's President and Chief Executive Officer, said, “Our successful year was driven by record production levels at our two largest operations, Palmarejo and San Bartolomé, supported by higher silver and gold prices.”

He continued, “2011 was a transformational year for the Company. It marked the first full year that all three of our newer mines were in production together. The resulting cash flow was put to good use. We aggressively paid down nearly $50 million of debt, invested $120 million in capital expenditures intended to benefit shareholders over the long-term, invested $25 million in five silver exploration and development companies, and funded a robust $26 million exploration program. We also transformed the Company's management team at all levels, which better positions us to achieve our objectives of operating more efficiently and consistently, growing the business in value-creating ways, containing operating and non-operating costs, and re-dedicating ourselves to the highest level of worker safety, environmental stewardship, and effective community relationships where we operate.”

Looking to 2012, Mr. Krebs added, “We expect 2012 to be a year of important decisions and catalysts for the Company. We are focused on resuming full production at Kensington in Alaska in the second half of the year and operating more efficiently and effectively. Our increased exploration program is expected to generate new targets and ounces around our existing operations, particularly at Palmarejo. At Rochester in Nevada, where we invested $27 million last year to construct a new leach pad, mining is now underway and forecasted to add seven more years of mine life. At the Joaquin project in southern Argentina, we expect to provide an updated resource estimate by mid-2012 and continue to advance work on a feasibility study. We are passionate about materially reducing non-operating costs during 2012 and containing operating costs at our mines. We also expect to continue to develop and bolster our team. Solid execution of our objectives depends on attracting and retaining highly motivated and highly skilled professionals, something on which we are keenly focused.”

Table 1: Financial Highlights:

US$ in millions (except price of silver and gold) 4Q 2011 4Q 2010 FY 2011

FY 2010

Sales of Metal $246.9 $ 207.6 $1,021.2 $ 515.5
Production Costs $109.1 $ 87.6 $420.0 $ 257.6
EBITDA (1) $119.7 $ 109.5 $531.3 $ 216.5
Adjusted Earnings (1) $43.2 $ 53.2 $232.5 $ 41.5
Adjusted Earnings Per Share $0.48 $ 0.60 $2.60 $ 0.48
Net Income/(Loss) $11.4 $ (5.1 ) $93.5 $ (91.3 )
EPS $0.13 $ (0.06 ) $1.05 $ (1.05 )
Operating Cash Flow (1) $97.5 $ 99.4 $454.4 $ 183.9
Capital Expenditures $40.2 $ 26.6 $120.0 $ 156.0
Cash and Equivalents $175.0 $ 66.1 $175.0 $ 66.1
Total Debt $121.5 $

171.1

$121.5 $

171.1

Shares Issued & Outstanding 89.7 89.3 89.7 89.3
Avg. Realized Price - Silver $30.87 $26.83 $35.15 $20.99
Avg. Realized Price - Gold $1,674 $1,357 $1,558 $1,237

Table reflects continuing operations

Sales of metal increased by $505.7 million, or 98.1%, to $1.0 billion from 2010 to 2011, due to higher silver production from Palmarejo and San Bartolomé, the first full year of gold production from the Kensington mine, and substantially higher silver and gold prices.

Sales of silver contributed 65% of the Company's total metal sales, with gold sales contributing the remainder. In 2011, the Company sold 19.1 million ounces of silver and 238,551 ounces of gold, compared to 17.2 million ounces of silver and 130,142 ounces of gold in 2010. During the fourth quarter of 2011, sales were 5.1 million ounces of silver and 55,308 ounces of gold.

Coeur reports a non-U.S. GAAP metric of adjusted earnings1 as a measure of operating income, which excludes non-cash fair value adjustments, other non-cash adjustments, deferred taxes and discontinued operations. Full year and fourth quarter adjusted earnings1 were $232.5 million, or $2.60 per share, and $43.2 million, or $0.50 per share, respectively, compared with adjusted earnings1 of $41.5 million, or $0.50 per share, and $53.2 million or $0.60 per share, for 2010 and the fourth quarter of 2010, respectively.

In 2011, the Company realized net income of $93.5 million, or $1.05 per share, including net income of $11.4 million, or $0.13 per share, for the fourth quarter of 2011. The earnings reflected an income tax provision of $114.3 million compared to an income tax benefit of $9.5 million in 2010. In addition, earnings were impacted by fair value adjustments that decreased net income by $52.1 million for the year ended December 31, 2011 and increased income by $19.0 million in the fourth quarter of 2011. These fair value adjustments are driven primarily by the change in gold prices which increases or decreases the estimated future liability related to a gold royalty obligation at Palmarejo and a small gold collar option position related to a term credit facility secured by the Company's Alaskan subsidiary. Net income for 2011 was also affected by a $5.5 million non-cash loss from early retirement of Senior Term Notes.

During 2010, the Company reported a net loss of ($91.3 million) or ($1.05) per share, which included fair value adjustments of $117.1 million and a $20.3 million loss from debt extinguishments. In the fourth quarter of 2010, the net loss was ($5.1 million) or ($0.06) per share.

Coeur generated operating cash flow1 of $454.4 million during 2011, including $97.5 million in the fourth quarter. This is compared with operating cash flow of $183.9 million and $99.4 million in 2010 and the fourth quarter of 2010, respectively.

Capital expenditures totaled $120.0 million in 2011, a 23% reduction from 2010. Most of the capital expenditures were at Palmarejo for activities at the tailings facility, at Kensington for the construction of the underground paste backfill plant and for underground development, and at Rochester for construction of the new leach pad. Capital expenditures in 2012 are expected to total approximately $90.0 million-$120.0 million, with approximately $20.0 million of this total representing capital that was budgeted to be spent in 2011.

Cash and cash equivalents totaled $175.0 million at December 31, 2011, an increase of approximately 165% from 2010. Total shares outstanding remained flat at 89.7 million at year-end 2011 compared to the year-end 2010.

Table 2:  Operational Highlights - Production

(ounces; silver in thousands) 4Q 2011 4Q 2010

Twelve
Months Ended
December 31,
2011

Twelve
Months Ended
December 31,
2010

SilverGold Silver Gold SilverGold Silver Gold
Palmarejo 2,69034,108 2,010 30,089 9,042125,071 5,888 102,440
San Bartolomé 1,997 2,011 7,501 6,709
Rochester 3731,993 549 2,400 1,3926,276 2,023 9,641
Martha 130144 150 163 530615 1,576 1,838
Endeavor 112 120 613 566
Kensington 13,299 27,988 88,420 43,143
Total 5,30349,544 4,840 60,640 19,078220,382 16,762 157,062

Table reflects continuing operations. Additional operating statistics are in the tables in the appendix.

Table 3:  Operational Highlights - Cash Operating Costs 1

($/ounce) 4Q 2011 4Q 2010

Twelve
Months Ended
December 31,
2011

Twelve
Months Ended
December 31,
2010

SilverGold Silver Gold SilverGold Silver Gold
Palmarejo (2.13) 2.67 (0.97) 4.10
San Bartolomé 9.18 7.60 9.10 7.87
Rochester 37.99 2.94 22.97 2.93
Martha 33.75 33.39 32.79 13.16
Endeavor 14.74 16.03 18.87 10.15
Kensington 1,807 875 1,088 989
Total 6.191,807 6.06 875 6.311,088 6.53 989

Table reflects continuing operations. Additional operating statistics are in the tables in the appendix.

Palmarejo, Mexico - Flag Ship Mine Generates Strong Cash Flow

  • Palmarejo produced 9.0 million ounces of silver and 125,071 ounces of gold at cash operating costs of ($0.97) per silver ounce in 2011. In 2010, Palmarejo produced 5.9 million ounces of silver and 102,440 ounces of gold at cash operating costs of $4.10 per silver ounce.
  • This increased production resulted from significantly higher silver and gold grades and higher silver recovery rates compared to 2010. Cash operating costs per silver ounce were lower than 2010 due mostly to the gold by-product credit.
  • Palmarejo is the Company's largest contributor of sales and operating cash flow1, reaching $454.4 million and $298.8 million, respectively, in 2011. Capital expenditures were $37.0 million. In 2010, sales at Palmarejo totaled $230.0 million, operating cash flow1 was $86.6 million and capital expenditures totaled $54.2 million.

San Bartolomé, Bolivia - Consistent in 2011

  • San Bartolomé produced 7.5 million ounces of silver at cash operating costs1 of $9.10 per silver ounce in 2011, compared to production of 6.7 million ounces of silver at cash operating costs1 of $7.87 per silver ounce in 2010. This increased production was driven by higher mill throughput and higher ore grade while costs were higher due to higher production-related taxes as a result of the increased production levels.
  • In December 2011, the Bolivian government granted the Company an exemption to mine the Huacajchi Sur deposit located above the 4,400-meter mining restriction level mandated by the federal government. Continued mining over the next two years of the higher-grade Huacajchi Sur ore should enable Coeur to realize higher margins to help offset expected higher labor and consumable costs in 2012.
  • San Bartolomé contributed $267.5 million in sales and $127.6 million in operating cash flow1 in 2011. Capital expenditures were $17.7 million. In 2010, sales at San Bartolomé totaled $143.0 million while operating cash flow1 was $54.4 million and capital expenditures were $6.2 million.

Kensington, Alaska - First Half Reduction Expected to Drive to Long-Term Consistency

  • As previously announced, production levels at Kensington have been curtailed during the first half of 2012 to complete several key projects designed to improve operational efficiency and consistency. Highlights of the progress at Kensington include:
    • Underground development activities, which we expect to provide operational flexibility and facilitate in-fill drilling and exploration work, are on schedule.
    • Construction of the paste backfill plant is nearly complete with electrical and piping work underway.
    • New surface facilities including a miners' dormitory, kitchen and dining facilities are completed and in use. An expanded warehouse and administrative offices are currently under construction.
  • Coeur announced the promotion of Wayne Zigarlick to General Manager at Kensington, effective January 23, 2012. Mr. Zigarlick previously served as the Assistant General Manager. Prior to joining Coeur at the Kensington Mine in March 2011, he served as Operations Manager at Kinross' Kettle River-Buckhorn operation in Washington State. He has over 20 years of mining and metallurgical experience with past positions at Kinross and the former Echo Bay Mines in the United States and Canada.
  • The mine contributed $151.2 million in sales and $36.1 million in operating cash flow1 in 2011. Capital expenditures were $34.0 million. In 2010, Kensington's sales were $23.6 million, operating cash flow1 totaled $7.4 million and capital expenditures totaled $92.7 million.

Rochester, Nevada - Commencing Full Production from Heap Leach Expansion

  • 2011 was a transitional year at Rochester as residual leaching of older pads continued to trail off as planned, while construction of a new heap leach pad was completed in the fourth quarter. As a result, 2011 production of 1.4 million ounces of silver and 6,276 ounces of gold was lower than 2010 production levels. Commercial production from the new leach pad commenced in November. Production is expected to accelerate each quarter for a full year estimated production of 2.6 million to 2.9 million ounces of silver and 30,000 to 35,000 ounces of gold. The conveyor system and crushing plant are now operating at full capacity and leach recovery rates have been improving in February 2012 as the flow rates of solution have increased.
  • As expected, cash operating costs1 per silver ounce were significantly higher in 2011 compared to 2010. Pre-strip and ore haulage costs associated with the development of the new leach pad and related mining activities were expensed during 2011, while ounces produced were lower as described above. As a result, costs per silver ounce were higher. In 2012 and over the estimated seven year mine life from the new leach pad, cash operating costs are expected to average approximately $12 per silver ounce.
  • Coeur has appointed Carl Waggoner as General Manager at Rochester. With over 30 years of industry experience, Mr. Waggoner previously served as Manager of Construction and Engineering of Barrick's Turquoise Ridge joint venture operation in Nevada and worked at BHP Copper, Asarco and Fluor.
  • Based on the year-end 2011 reserves and resources estimate, the ongoing legal dispute related to certain disputed unpatented claims has no effect on Rochester's 2011 mineral reserves estimate and may have some impact to Rochester's 2011 mineral resources estimate, depending on the legal outcome of the November 2012 court case.
  • The mine contributed $57.3 million in sales and $3.1 million in operating cash flow1 in 2011, with 84% of sales derived from silver and the remainder from gold. Capital expenditures were $27.2 million. In 2010, sales from Rochester totaled $54.3 million, operating cash flow1 was $24.9 million and capital expenditures were $2.3 million.

Reserves and Resources

The Company realized steady levels of silver and gold reserves and increased silver and gold resources, which did not reflect the Company's aggressive exploration drilling completed in the second half of 2011.

Table 4:  2011 Reserves and Resources Summary (For further details, please see page 23 of the Appendix.)

(silver in millions) Silver Ounces(1)Gold Ounces(1)
Proven & Probable Reserves as of December 31, 2010 227.1 2,528,100
Contained ounces depleted from mining during 2011(2) (23.2 ) (242,800 )
Net changes 12.4 (9,600 )
Reserves as of December 31, 2011 216.32,275,700
Measured & Indicated Resources as of December 31, 2010 206.2 1,379,080
Measured & Indicated Resources as of December 31, 2011 223.91,677,440
Inferred Resources as of December 31, 2010 53.9 816,195
Inferred Resources as of December 31, 2011 82.0780,960

  1. Ounces shown as contained
  2. Reflects mill feed

Exploration Highlights

Exploration and reserve development expenditures were $26.2 million in 2011, 51% greater than 2010. In 2012, the Company plans to continue accelerated exploration, especially in the first half of the year, with a $40.0 million exploration program, a 53% increase over 2011. The Company expects to increase contained silver and gold reserves and resources year-over-year in 2012.

The exploration program for 2012 will focus on advancing the Guadalupe and La Patria deposits at Palmarejo, the Kensington gold mine in Alaska, and the Joaquin silver-gold project in Argentina in which Coeur has a 51% managing joint venture interest.

During 2011, exploration highlights included:

  • Completion of the first Canadian National Instrument 43-101-compliant mineral resource estimate on the Joaquin property in Argentina containing 19.7 million silver ounces of Indicated Resources and 48.0 million ounces of silver in Inferred Resources, all in two deposits, La Negra and La Morocha; both remain open for expansion. Coeur's current share of this initial mineral resource is 51%. Drilling in the fourth quarter of 2011 focused on expansion and definition of the two deposits and this work will continue into 2012, followed by exploration of the greater property. An updated mineral resource estimate is expected to be completed in mid-2012. With completion of a feasibility study, Coeur will earn a 61% interest.
  • Over 12,800 meters of drilling were completed on the La Patria deposit at Palmarejo. This drilling was the first drilling by Coeur on this nearly 2 kilometer-long mineralized structure, which is located about six kilometers south of the current Palmarejo mining operations. Gold and silver mineralization at La Patria has been exposed in new surface trenches as zone veins and stockwork, from 4 to 28 meters wide, and extends over 350 meters deep. Much of the new drilling cut multiple intersections of mineralization. At this time, the program's focus is on completing a new mineral resource model and defining the extent of higher-grade shoots, or “clavos” that have been defined with our drilling.
  • At Guadalupe, also in the Palmarejo area, over 20,500 meters of drilling was completed; mostly in the second half of 2011. Mineralization at Guadalupe, in wide veins and associated stockwork, has been defined over a strike length of +2.5 kilometers and remains open along strike and at depth. Further drilling is planned to define and expand the zone, especially on the northern half where initial mining is scheduled to commence in 2013.
  • In addition, drilling at the main Palmarejo open pit and underground deposits focused on the Tucson-Chapotillo surface zones with underground drilling at the Rosario and 76 zones. Rosario drilling results have been encouraging and follow up drilling is underway.
  • One hole was completed on a new target at Palmarejo, called Independencia, in December 2011. This hole cut three zones of mineralization ranging from 1.1 meters to 3.7 meters true width grading from 2.2 to 6.8 grams per tonne of gold and 192 to 452 grams per tonne of silver. Follow-up drilling on this new structure is underway.
  • At Kensington, underground drilling was conducted on the Raven zone, located approximately 2,000 feet (600 meters) west of the main Kensington mine area and on a new target, Kensington South, located about 1,000 feet (300 meters) south of the know southern limit of the Kensington mine. Work on a new model of Raven mineral resources is scheduled to commence following drilling planned for the first half of 2012.

2012 Outlook

Coeur expects to produce between 18.5 million and 20.0 million ounces of silver and 210,000 and 230,000 ounces of gold in 2012. Cash operating costs1 are expected to be between $6.50 and $7.50 per ounce of silver (assuming $1,500 per ounce of gold for the by-product credit). Kensington's cash operating costs1 are expected to be between $1,150 and $1,250 per ounce of gold in 2012. Kensington's cash operating costs1 are anticipated to be approximately $1,750 per ounce in the first half of 2012 while production remains temporarily scaled back, and then improve to $800 to $1,000 per ounce in the fourth quarter. Approximately 30% of Kensington's full-year production is expected to take place during the first half of 2012 with the remaining 70% expected in the second half.1

Table 5: 2012 Production Outlook

(Ounces; silver in thousands) CountrySilverGold
Palmarejo Mexico 8,500-9,000 98,000-108,000
San Bartolomé Bolivia 6,300-6,700
Rochester Nevada, USA 2,600-2,900 30,000-35,000
Martha Argentina 700-900 400-500
Endeavor Australia 400-500
Kensington Alaska, USA 82,600-86,500
Total18,500-20,000210,000-230,000

Table 6: 2012 Financial Guidance

DescriptionExpenses ($M)
General & Administrative* ~$26
DD&A $235-$245
Exploration Expense ~$40
Capital Expenditures $90-$120

*G&A includes $6 million of non-cash net stock compensation.

1. EBITDA, operating cash flow, adjusted earnings and cash operating costs per ounce are non-GAAP measures. Please see the tables in the Appendix for reconciliation to GAAP.

Conference Call Information
Coeur's fourth quarter and year-end 2011 financial results conference call will be held at 1:00 p.m. Eastern Time today, Thursday, February 23, 2012.
Dial-in number: (877) 464-2820
International dial-in number: (660) 422-4718
Conference ID: 48487351
Webcast: www.coeur.com

A replay of the conference call will be available through March 2, 2012.
Replay number: (855) 859-2056
International replay number: (404) 537-3406
Replay code: 48487351

Cautionary Statement

This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding anticipated operating results. Such statements are subject to numerous assumptions and uncertainties, many of which are outside the control of Coeur. Operating, exploration and financial data, and other statements in this release are based on information that Coeur believes is reasonable, but involve significant uncertainties affecting the business of Coeur, including, but not limited to, future gold and silver prices, costs, ore grades, estimation of gold and silver reserves, mining and processing conditions, construction delays and related disruptions in production, disputed mineral claims, currency exchange rates, costs of capital expenditures and the completion and/or updating of mining feasibility studies, changes that could result from future acquisitions of new mining properties or businesses, risks and hazards inherent in the mining business (including environmental hazards, industrial accidents, weather and geologically related conditions), permitting and regulatory matters (including penalties, fines, sanctions, and shutdowns), 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 filings made from time to time with the United States Securities and Exchange Commission, and the Canadian securities regulators, including, without limitation, Coeur's reports on Form 10-K and Form 10-Q. Current mineralized material estimates were inclusive of disputed and undisputed claims at Rochester. While the Company believes it holds a superior position in the ongoing claim dispute, the Company believes an adverse legal outcome would cause it to modify mineralized material estimates. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities.

Donald J. Birak, Coeur's Senior Vice President of Exploration and a qualified person under Canadian NI 43-101, supervised the preparation of the scientific and technical information concerning Coeur's mineral projects in this news release. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and 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 of Coeur's properties as filed on SEDAR at www.sedar.com.

Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this presentation, such as “measured,” “indicated,” and “inferred resources,” that are recognized by Canadian regulations, but that SEC guidelines generally prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from the SEC's website at http://www.sec.gov.

Non-U.S. GAAP Measures

We supplement the reporting of our financial information determined under United States generally accepted accounting principles (U.S. GAAP) with certain non-U.S. GAAP financial measures, including cash operating costs, operating cash flow, adjusted earnings, and EBITDA. We believe that these adjusted measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to our core operating results, and provide a better baseline for analysing trends in our underlying businesses. We believe cash operating costs, operating cash flow, adjusted earnings and EBITDA are important measures in assessing the Company's overall financial performance.

About Coeur

Coeur d'Alene Mines Corporation is the largest U.S.-based primary silver producer and a growing gold producer. The Company built and commenced production from three wholly-owned, long-lived mines between 2008 and 2010: the San Bartolomé silver mine in Bolivia, the Palmarejo silver-gold mine in Mexico and the Kensington gold mine in Alaska. Further production has commenced from a new heap leach pad at Coeur's long-time Rochester silver-gold mine in Nevada. The Company also owns and operates the Martha silver-gold mine in Argentina and owns a non-operating interest in a silver-base metal mine in Australia. Coeur conducts ongoing exploration activities near and within its operating properties in Argentina, Mexico, Alaska, Nevada and Bolivia. In addition, Coeur owns strategic minority shareholdings in five silver development companies in North and South America.

APPENDIX:

Table 7:  Operating Statistics from Continuing Operations

201120102009
PRIMARY SILVER OPERATIONS:
Palmarejo(1)
Tons milled 1,723,056 1,835,408 1,065,508
Ore grade/Ag oz 6.87 4.60 4.31
Ore grade/Au oz 0.08 0.06 0.06
Recovery/Ag oz (1) 76.4 % 69.8 % 66.3 %
Recovery/Au oz (1) 92.2 % 91.1 % 88.2 %
Silver production ounces(3) 9,041,488 5,887,576 3,047,843
Gold production ounces(3) 125,071 102,440 54,740
Cash operating costs/oz (4) $ (0.97 ) $ 4.10 $ 9.80
Cash cost/oz (4) $ (0.97 ) $ 4.10 $ 9.80
Total production cost/oz $ 16.80 $ 19.66 $ 26.80
San Bartolomé
Tons milled 1,567,269 1,504,779 1,518,671
Ore grade/Ag oz 5.38 5.03 5.49
Recovery/Ag oz 88.9 % 88.6 % 89.6 %
Silver production ounces(3) 7,501,367 6,708,775 7,469,222
Cash operating costs/oz (4) $ 9.10 $ 7.87 $ 7.80
Cash cost/oz (4) $ 10.64 $ 8.67 $ 10.48
Total production cost/oz $ 13.75 $ 11.72 $ 12.96
Rochester(2)
Tons Mined 2,028,889
Ore grade/Ag oz 0.47
Ore grade/Au oz 0.005
Recovery/Ag oz(2) 165.1 %
Recovery/Au oz(2) 75.6 %
Silver production ounces(3) 1,392,433 2,023,423 2,181,788
Gold production ounces(3) 6,276 9,641 12,663
Cash operating costs/oz (4) 22.97 2.93 1.95
Cash cost/oz (4) 24.82 3.78 2.58
Total production cost/oz 27.21 4.82 3.51
201120102009
Martha
Tons milled 101,167 56,401 109,974
Ore grade/Ag oz 6.29 31.63 36.03
Ore grade/Au oz 0.01 0.04 0.05
Recovery/Ag oz 83.2 % 88.3 % 93.6 %
Recovery/Au oz 74.0 % 84.1 % 87.6 %
Silver production ounces 529,602 1,575,827 3,707,544
Gold production ounces 615 1,838 4,709
Cash operating costs/oz(4) $ 32.79 $ 13.16 $ 6.19
Cash cost/oz(4) $ 34.08 $ 14.14 $ 6.68
Total production cost/oz $ 36.19 $ 20.02 $ 8.62
Endeavor
Tons milled 743,936 653,550 552,799
Ore grade/Ag oz 1.83 1.96 1.67
Recovery/Ag oz 45.0 % 44.3 % 49.9 %
Silver production ounces 613,361 566,134 461,800
Cash operating costs/oz(4) $ 18.87 $ 10.15 $ 6.80
Cash cost/oz(4) $ 18.87 $ 10.15 $ 6.80
Total production cost/oz $ 24.00 $ 13.66 $ 9.55
GOLD OPERATIONS:
Kensington
Tons milled 415,340 174,028
Ore grade/Au oz 0.23 0.28
Recovery/Au oz 92.7 % 89.9 %
Gold production ounces(3) 88,420 43,143
Cash operating costs/oz (4) $ 1,088 $ 989 $
Cash cost/oz (4) $ 1,088 $ 989 $
Total production cost/oz $ 1,494 $ 1,394 $
CONSOLIDATED PRODUCTION TOTALS
Silver ounces(3) 19,078,251 16,761,735 16,868,197
Gold ounces(3) 220,382 157,062 72,112
Cash operating costs/oz(4) $ 6.31 $ 6.53 $ 7.03
Cash cost per oz/silver(4) $ 7.09 $ 7.05 $ 8.40
Total production cost/oz $ 17.14 $ 14.52 $ 13.19
CONSOLIDATED SALES TOTALS
Silver ounces sold(3) 19,057,503 17,221,335 16,310,225
Gold ounces sold(3) 238,551 130,142 65,607
Realized price per silver ounce $ 35.15 $ 20.99 $ 14.83
Realized price per gold ounce $ 1,558 $ 1,236.8 $ 1,002.87

(1) Palmarejo commenced commercial production on April 20, 2009. Mine statistics do not represent normal operating results.

(2) The leach cycle at Rochester requires 5 to 10 years to recover gold and silver contained in the ore. The Company estimates the metallurgical recovery to be approximately 61% for silver and 92% for gold. Current recovery may vary significantly from ultimate recovery. See Critical Accounting Policies and Estimates — Ore on Leach Pad.

(3) Current production ounces and recoveries reflect final metal settlements of previously reported production ounces.

(4) See "Reconciliation of Non-GAAP Cash Costs to GAAP Production Costs."

Table 8:
Coeur d'Alene Mines Corporation and Subsidiaries
Consolidated Balance Sheets
December 31,
20112010

(In thousands,
except share data)

ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 175,012 $ 66,118
Short-term investments 20,254
Receivables 83,497 58,880
Ore on leach pads 27,252 7,959
Metal and other inventory 132,781 118,340
Deferred tax assets 1,869
Restricted assets 60 25
Prepaid expenses and other 24,218 14,889
464,943 266,211
NON-CURRENT ASSETS
Property, plant and equipment 687,676 668,101
Mining properties 2,001,027 2,122,216
Ore on leach pads, non-current portion 6,679 10,005
Restricted assets 28,911 29,028
Receivables, non current 40,314 42,866
Marketable securities 19,844
Debt issuance costs, net 1,889 4,333
Deferred tax assets 263 804
Other 12,895 13,963
TOTAL ASSETS $ 3,264,441 $ 3,157,527
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable $ 78,590 $ 88,321
Accrued liabilities and other 13,179 18,608
Accrued income taxes 47,803 28,397
Accrued payroll and related benefits 16,240 17,953
Accrued interest payable 559 834
Current portion of capital leases and other debt obligations 32,602 63,317
Current portion of royalty obligation 61,721 51,981
Current portion of reclamation and mine closure 1,387 1,306
252,081 270,717
NON-CURRENT LIABILITIES
Long-term debt 115,861 130,067
Non-current portion of royalty obligation 169,788 190,334
Reclamation and mine closure 32,371 27,779
Deferred income taxes 527,573 474,264
Other long-term liabilities 30,046 23,599
875,639 846,043
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Common Stock, par value $0.01 per share; authorized 150,000,000 shares, 89,655,124 issued at December 31, 2011 and 89,315,767 shares issued and outstanding at December 31, 2010 897 893
Additional paid-in capital 2,585,632 2,578,206
Accumulated deficit (444,833 ) (538,332 )
Accumulated other comprehensive loss (4,975 )
2,136,721 2,040,767
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 3,264,441 $ 3,157,527
Table 9:
Coeur d'Alene Mines Corporation and Subsidiaries
Consolidated Statement of Operations and Comprehensive Income (Loss)
Years Ended December 31,
201120102009
(In thousands, except share data)
Sales of metal $ 1,021,200 $ 515,457 $ 300,361
Production costs applicable to sales (419,956 ) (257,636 ) (191,311 )
Depreciation and depletion (224,500 ) (141,619 ) (81,376 )
Gross profit 376,744 116,202 27,674
COSTS AND EXPENSES
Administrative and general 31,379 24,176 22,070
Exploration 19,128 14,249 13,056
Pre-development, care, maintenance and other 19,441 2,877 1,468
Total costs and expenses 69,948 41,302 36,594
OPERATING INCOME (LOSS) 306,796 74,900 (8,920 )
OTHER INCOME AND EXPENSE
Gain (loss) on debt extinguishments (5,526 ) (20,300 ) 31,528
Fair value adjustments, net (52,050 ) (117,094 ) (82,227 )
Interest and other income (expense) (6,610 ) 771 1,648
Interest expense, net of capitalized interest (34,774 ) (30,942 ) (18,102 )
Total other income and expense (98,960 ) (167,565 ) (67,153 )
Income (loss) from continuing operations before income taxes 207,836 (92,665 ) (76,073 )
Income tax benefit (expense) (114,337 ) 9,481 33,071
Income (loss) from continuing operations 93,499 (83,184 ) (43,002 )
Income (loss) from discontinued operations, net of income taxes (6,029 ) (9,601 )
Income (loss) on sale of net assets of discontinued operations, net of taxes $0.0 million for 2010 and $0.0 million for 2009 (2,095 ) 25,537
NET INCOME (LOSS) 93,499 (91,308 ) (27,066 )
Other comprehensive loss (4,975 ) (5 )
COMPREHENSIVE INCOME (LOSS) $ 88,524 $ (91,313 ) $ (27,066 )
BASIC AND DILUTED INCOME (LOSS) PER SHARE
Basic income (loss) per share:
Income (loss) from continuing operations $ 1.05 $ (0.95 ) $ (0.60 )
Income (loss) from discontinued operations (0.10 ) 0.22
Net income (loss) $ 1.05 $ (1.05 ) $ (0.38 )
Diluted income (loss) per share:
Income (loss) from continuing operations $ 1.04 $ (0.95 ) $ (0.60 )
Income (loss) from discontinued operations (0.10 ) 0.22
Net income (loss) $ 1.04 $ (1.05 ) $ (0.38 )
Weighted average number of shares of common stock:
Basic 89,383 87,185 71,565
Diluted 89,725 87,185 71,565
Table 10: Coeur d'Alene Mines Corporation and Subsidiaries
Consolidated Statements of Cash Flows

Years Ended December 31,
201120102009
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 93,499 $ (91,308 ) $ (27,066 )
Add (deduct) non-cash items:
Depreciation, depletion, and amortization 224,500 143,813 87,140
Amortization of debt discount and debt issuance costs 4,041 3,374 504
Accretion of royalty obligation 21,550 19,018 14,209
Deferred income taxes 51,792 (37,628 ) (43,061 )
Loss (gain) on debt extinguishment 5,526 20,300 (31,528 )
Fair value adjustments 46,450 115,458 81,035
Loss on foreign currency transactions 380 3,867 546
Share-based compensation 8,122 7,217 4,876
Loss on sale of asset backed securities 600
Loss (gain) on asset retirement obligation (335 ) (167 ) 1,181
Gain on sales of assets (1,145 ) (25 ) (31,988 )
Environmental remediation 5,040
Changes in operating assets and liabilities:
Receivables and other current assets (21,950 ) (6,228 ) (10,592 )
Prepaid expenses and other (8,839 ) 5,871 (3,728 )
Inventories (30,408 ) (47,887 ) (26,804 )
Accounts payable and accrued liabilities 22,990 29,888 39,783
CASH PROVIDED BY OPERATING ACTIVITIES 416,173 165,563 60,147
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments (49,501 ) (5,872 ) (24,012 )
Proceeds from maturities of investments 6,246 24,244 38,531
Capital expenditures (119,988 ) (155,994 ) (218,235 )
Proceeds from sales of assets 2,531 6,211 57,364
Other (249 ) (284 ) (494 )
CASH USED IN INVESTING ACTIVITIES (160,961 ) (131,695 ) (146,846 )
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of gold production royalty 75,000
Additions to restricted assets associated with Kensington Term Facility (1,326 ) (2,353 ) (966 )
Payments on gold production royalty (73,191 ) (43,125 ) (15,762 )
Proceeds from issuance of notes and bank borrowings 27,500 176,166 40,804
Payments on notes, long-term debt, capital leases, credit facility, and associated costs (85,519 ) (104,595 ) (26,226 )
Proceeds from gold lease facility 18,445 5,108
Payments of gold lease facility (13,800 ) (37,977 ) (1,627 )
Proceeds from sale-leaseback transactions 4,853 12,511
Payments of common stock and debt issuance costs (2,232 ) (121 )
Other 18 286
CASH PROVIDED (USED) BY FINANCING ACTIVITIES (146,318 ) 9,468 88,721
INCREASE IN CASH AND CASH EQUIVALENTS 108,894 43,336 2,022
Cash and cash equivalents at beginning of year 66,118 22,782 20,760
Cash and cash equivalents at end of year $ 175,012 $ 66,118 $ 22,782

Table 11: Operating Cash Flow Reconciliation

Operating cash flow is a non-U.S. GAAP measure defined as net income plus depreciation, depletion and amortization and other non-cash items prior to changes in operating assets and liabilities. On a U.S. GAAP basis, the Company generated cash flow from operations of $97.5 million in the fourth quarter of 2011 and $454.4 million in the year ended December 31, 2011. See the reconciliation from non-U.S. GAAP to U.S. GAAP at the end of this news release.

4Q 20113Q 20112Q 20111Q 20114Q 2010
Cash provided by operating activities $ 87,412 $ 181,911 $ 111,065 $ 35,785 $ 129,397
Changes in operating assets and liabilities:
Receivables and other current assets $ (8,904 ) $ 10,513 $ 8,138 $ 4,841 $ (5,908 )
Prepaid expenses and other $ 8,839 $ 8,697 $ (1,354 ) $ 19 $ (5,871 )
Inventories $ 17,574 $ (23,234 ) $ 23,575 $ 12,493 $ 19,999
Accounts payable and accrued liabilities $ (7,452 ) $ (26,930 ) $ (25,585 ) $ 36,977 $ (38,186 )
OPERATING CASH FLOW$97,469$150,957$115,839$90,115$99,431
FY 2011FY 2010
Cash provided by operating activities $ 416,173 $ 165,563
Changes in operating assets and liabilities:
Receivables and other current assets $ 14,588 $ 6,228

Prepaid expenses and other

$ 16,201 $ (5,871 )
Inventories $ 30,408 $ 47,887
Accounts payable and accrued liabilities $ (22,990 ) $ (29,888 )
OPERATING CASH FLOW$454,380$183,919

Table 12: EBITDA Reconciliation

EBITDA is a non-U.S. GAAP measure defined as earnings before interest, taxes, depreciation and amortization. A reconciliation of this measure to U.S. GAAP is provided at the end of this news release.

4Q 20113Q 20112Q 20111Q 20114Q 2010
Net income (loss) $ 11,364 $ 31,060 $ 38,611 $ 12,464 $ (5,078 )
(Gain) loss on sale of net assets of discontinued operations, net of income taxes $ $ $ $ $ 1
Loss from discontinued operations, net of income taxes $ $ $ $ $
Income tax provision (benefit) $ 52,390 $ 27,606 $ 21,402 $ 12,939 $ 3,655
Interest expense, net of capitalized interest $ 8,222 $ 7,980 $ 9,268 $ 9,304 $ 9,539
Interest and other income $ 4,697 $ 6,610 $ (2,763 ) $ (1,934 ) $ (3,495 )
Fair value adjustments, net $ (19,035 ) $ 53,351 $ 12,432 $ 5,302 $ 51,213
Loss on debt extinguishments $ 3,886 $ 784 $ 389 $ 467 $ 7,586
Depreciation and depletion $ 58,166 $ 58,652 $ 57,641 $ 50,041 $ 46,116
EBITDA$119,690$186,043$136,980$88,583$109,537
FY 2011FY 2010
Net income (loss) $ 93,499 $ (91,308 )
(Gain) loss on sale of net assets of discontinued operations, net of income taxes $ $ 2,095
Loss from discontinued operations, net of income taxes $ $ 6,029
Income tax provision (benefit) $ 114,337 $ (9,481 )
Interest expense, net of capitalized interest $ 34,774 $ 30,942
Interest and other income $ 6,610 $ (771 )
Fair value adjustments, net $ 52,050 $ 117,094
Loss on debt extinguishments $ 5,526 $ 20,300
Depreciation and depletion $ 224,500 $ 141,619
EBITDA$531,296$216,519

Table 13: Adjusted Earnings Reconciliation

Adjusted earnings is a non-U.S. GAAP measure defined as operating income plus interest and other income less interest expense and current taxes. Adjusted earnings exclude non-cash fair value adjustments, other non-cash adjustments, deferred taxes and discontinued operations. The Company realized net income of $11.4 million in the fourth quarter of 2011 and $93.5 million during the year ended December 31, 2011. See reconciliation between non-U.S. GAAP adjusted earnings and U.S. GAAP at the end of this news release. Adjusted earnings per share represent the adjusted earnings divided by the number of shares outstanding at the end of the quarter.

4Q 20113Q 20112Q 20111Q 20114Q 2010
Net income (loss) $ 11,364 $ 31,060 $ 38,611 $ 12,464 $ (5,078 )
Loss on sale of net assets of discontinued operations, net of income taxes $ $ $ $ $ 1
Share Based Compensation $ 2,861 $ 457 $ (3,351 ) $ 8,155 $ 3,248
Loss from discontinued operations, net of income taxes $ $ $ $ $
Deferred income tax provision $ 38,614 $ 3,110 $ 4,198 $ 5,870 $ (8,386 )
Interest expense, accretion of royalty obligation $ 5,523 $ 4,990 $ 5,770 $ 5,267 $ 4,611
Fair value adjustments, net $ (19,035 ) $ 53,351 $ 12,432 $ 5,302 $ 51,213
Loss on debt extinguishments $ 3,886 $ 784 $ 389 $ 467 $ 7,586
ADJUSTED EARNINGS (LOSS) $ 43,213 $ 93,752 $ 58,049 $ 37,525 $ 53,195
FY 2011FY 2010
Net income (loss) $ 93,499 $ (91,308 )
Loss on sale of net assets of discontinued operations, net of income taxes $ $ 2,095
Share Based Compensation $ 8,122 $ 7,217
Loss from discontinued operations, net of income taxes $ $ 6,029
Deferred income tax provision $ 51,792 $ (38,901 )
Interest expense, accretion of royalty obligation $ 21,550 $ 19,018
Fair value adjustments, net $ 52,050 $ 117,094
Loss on debt extinguishments $ 5,526 $ 20,300
ADJUSTED EARNINGS (LOSS) $ 232,539 $ 41,544

Table 14:  Results of Operations by Mine - Palmarejo

in millions of US$FY 20114Q 20113Q 20112Q 20111Q 20114Q 2010
Sales of Metal $ 513.1 $ 134.3 $ 166.9 $ 123.7 $ 88.2 $ 78.1
Production Costs 186.2 47.0 64.1 37.7 37.4 35.6
EBITDA 319.0 83.7 100.4 84.6 50.2 41.0
Operating Income/(Loss) 159.8 38.7 61.6 43.0 16.5 13.0
Operating Cash Flow 298.8 77.4 91.2 81.8 48.4 38.7
Capital Expenditures 37.0 12.1 9.5 10.3 5.1 11.1
Gross Profit $ 326.9 $ 87.3 $ 102.8 $ 86.0 $ 50.8 $ 42.5
Gross Margin 63.7 % 65 % 61.6 % 69.5 % 57.6 % 54.4 %
Ounces unless otherwise notedFY 20114Q 20113Q 20112Q 20111Q 20114Q 2010
Underground Operations:
Tons Mined 623,421 191,966 143,010 144,614 143,831 151,032
Average Silver Grade (oz/t) 8.87 8.04 9.36 10.08 8.30 6.30
Average Gold Grade (oz/t) 0.13 0.11 0.13 0.14 0.14 0.10
Surface Operations:
Tons Mined 1,106,077 321,881 260,618 276,699 246,879 281,177
Average Silver Grade (oz/t) 5.75 5.88 6.56 5.85 4.60 7.33
Average Gold Grade (oz/t) 0.05 0.05 0.05 0.06 0.05 0.07
Processing:
Total Tons Milled 1,723,056 505,619 403,978 414,719 398,740 514,391
Average Recovery Rate – Ag 76.4 % 77.9 % 75.9 % 78.3 % 72.7 % 66.72 %
Average Recovery Rate – Au 92.2 % 92.4 % 93.6 % 95.2 % 87.4 % 90.32 %
Silver Production - oz 9,042 2,690 2,251 2,371 1,730 2,010
Gold Production - oz 125 34 30 33 28 30
Cash Operating Costs/Ag Oz $ (0.97 ) $ (2.13 ) $ (1.16 ) $ (3.68 ) $ 4.80 $ 2.68

Table 15:  Reconciliation of EBITDA for Palmarejo

20114Q 20113Q 20112Q 20111Q 20114Q 2010
Sales of metal $ 513.1 $ 134.3 $ 166.9 $ 123.7 $ 88.2 $ 78.1
Production costs applicable to sales $ (186.2 ) $ (47 ) $ (64.1 ) $ (37.8 ) $ (37.4 ) $ (35.6 )
Administrative and general
Exploration (6.9 ) (2.8 ) $ (2.2 ) $ (1.3 ) $ (0.6 ) $ (1.5 )
Care and maintenance and other (1 ) (0.8 ) $ (0.2 )
Pre-development
EBITDA$319.0$83.7$100.4$84.6$50.2$41.0

Table 16:  Operating Cash Flow for Palmarejo

20114Q 20113Q 20112Q 20111Q 20114Q 2010
Cash provided by operating activities $ 248.6 $ 70.9 $ 104.7 $ 62.9 $ 10.1 $ 63.5
Changes in operating assets and liabilities:
Receivables and other current assets 13.4 5.7 (0.8 ) 8.9 (0.4 ) (14.5 )
Prepaid expenses and other 0.8 (3.2 ) 3.4 (0.4 ) 1.0 (1.7 )
Inventories 21.8 9.9 (16.2 ) 12.0 16.1 16.4
Accounts payable and accrued liabilities 14.2 (5.9 ) 0.1 (1.6 ) 21.6 (25 )
OPERATING CASH FLOW$298.8$77.4$91.2$81.8$48.4$38.7

Table 17:  Results of Operations by Mine - San Bartolomé

in millions of US$FY 20114Q 20113Q 20112Q 20111Q 20114Q 2010
Sales of Metal $ 267.5 $ 62.8 $ 102.8 $ 55.6 $ 46.3 $ 67.1
Production Costs 79.7 21.4 30.1 14.1 14.1 22.4
EBITDA 187.2 41.2 72.5 41.4 32.1 44.7
Operating Income/(Loss) 164.8 34.9 66.7 36.2 27.0 39.2
Operating Cash Flow 127.6 28.7 49.6 25.7 23.6 23.3
Capital Expenditures 17.7 6.5 4.4 3.3 3.5 3.5
Gross Profit $ 187.8 $ 41.4 $ 72.7 $ 41.5 $ 32.2 $ 44.7
Gross Margin 70.2 % 65.9 % 70.7 % 74.6 % 69.5 % 66.6 %
Ounces unless otherwise notedFY 20114Q 20113Q 20112Q 20111Q 20114Q 2010
Tons Milled 1,567,269 371,983 428,978 378,640 387,668 404,160
Average Silver Grade (oz/t) 5.4 5.4 5.4 5.2 5.6 5.4
Average Recovery Rate 88.9 % 90.5 % 88.6 % 87.7 % 88.6 % 92 %
Silver Production 7,501 1,997 2,051 1,742 1,711 2,011
Gold Production
Cash Operating Costs/Ag Oz $ 9.10 $ 9.18 $ 9.32 $ 8.73 $ 9.13 $ 7.53

Table 18:  Reconciliation of EBITDA for San Bartolomé

20114Q 20113Q 20112Q 20111Q 20114Q 2010
Sales of metal $ 267.5 $ 62.8 $ 102.8 $ 55.6 $ 46.3 $ 67.1
Production costs applicable to sales $ (79.7 ) $ (21.4 ) $ (30.1 ) $ (14.1 ) $ (14.1 ) $ (22.4 )
Administrative and general
Exploration (0.3 ) $ (0.1 ) $ (0.1 ) $ (0.1 )
Care and maintenance and other (0.3 ) (0.2 ) $ (0.1 )
Pre-development
EBITDA$187.2$41.2$72.5$41.4$32.1$44.7

Table 19:  Operating Cash Flow for San Bartolomé

20114Q 20113Q 20112Q 20111Q 20114Q 2010
Cash provided by operating activities $ 149.1 $ 22.3 $ 78.1 $ 38.2 $ 10.5 $ 28.8
Changes in operating assets and liabilities:
Receivables and other current assets 8.4 0.2 5.0 1.5 1.7 1.3
Prepaid expenses and other 3.7 4.6 0.2 (0.6 ) (0.5 ) (0.6 )
Inventories 4.6 2.9 (7.2 ) 4.0 4.9 4.2
Accounts payable and accrued liabilities (38.2 ) (1.3 ) (26.5 ) (17.4 ) 7.0 (10.4 )
OPERATING CASH FLOW$127.6$28.7$49.6$25.7$23.6$23.3

Table 20:  Results of Operations by Mine - Rochester

in millions of US$FY 20114Q 20113Q 20112Q 20111Q 20114Q 2010
Sales of Metal $ 57.3 $ 11.1 $ 17.5 $ 14.4 $ 14.3 $ 25.3
Production Costs 28.3 4.2 11.4 5.3 7.4 10.6
EBITDA 7.1 3.2 2.7 (2.2 ) 3.4 14.1
Operating Income/(Loss) 6.7 4.6 2.1 (2.9 ) 2.9 15.2
Operating Cash Flow 3.1 3.4 2.7 (3.9 ) 0.9 9.0
Capital Expenditures 27.2 7.7 13.6 4.2 1.7 2.1
Gross Profit $ 29.0 $ 6.9 $ 6.1 $ 9.1 $ 6.9 $ 14.7
Gross Margin 50.6 % 62.2 % 34.9 % 63.2 % 48.3 % 58.1 %
Ounces unless otherwise notedFY 20114Q 20113Q 20112Q 20111Q 20114Q 2010
Silver Production 1,392 373 352 333 334 549
Gold Production 6 2 1 1 2 2
Cash Operating Costs/Ag Oz $ 22.97 $ 37.99 $ 36.71 $ 4.34 $ 10.28 $ 2.94

Table 21:  Reconciliation of EBITDA for Rochester

20114Q 20113Q 20112Q 20111Q 20114Q 2010
Sales of metal $ 57.3 $ 11.1 $ 17.5 $ 14.4 $ 14.3 $ 25.3
Production costs applicable to sales $ (28.3 ) $ (4.2 ) $ (11.4 ) $ (5.3 ) $ (7.4 ) $ (10.6 )
Administrative and general
Exploration (2 ) (1.5 ) $ (0.2 ) $ (0.3 )
Care and maintenance and other (19.9 ) (2.2 ) $ (3.2 ) $ (11 ) $ (3.5 ) $ (0.6 )
Pre-development
EBITDA$7.1$3.2$2.7$(2.2)$3.4$14.1

Table 22:  Operating Cash Flow for Rochester

20114Q 20113Q 20112Q 20111Q 20114Q 2010
Cash provided by operating activities $ (11.2 ) $ (11.4 ) $ 0.9 $ (2.1 ) $ 1.4 $ 11.8
Changes in operating assets and liabilities:
Receivables and other current assets (0.3 ) (0.2 ) 0.2 (0.3 ) 0.3
Prepaid expenses and other 1.7 0.7 0.7 0.4 (0.1 ) 0.1
Inventories 21.7 14.2 5.9 0.6 1.0 (1.8 )
Accounts payable and accrued liabilities (8.8 ) 0.1 (5 ) (2.8 ) (1.1 ) (1.4 )
OPERATING CASH FLOW$3.1$3.4$2.7$(3.9)$0.9$9.0

Table 23:  Results of Operations by Mine - Kensington

in millions of US$FY 20114Q 20113Q 20112Q 20111Q 20114Q 2010
Sales of Metal $ 151.2 $ 32.9 $ 44.2 $ 26.0 $ 48.1 $ 15.1
Production Costs 101.7 31.7 24.3 12.8 32.9 6.6
EBITDA 48.1 0.5 19.6 12.8 15.2 8.5
Operating Income/(Loss) 12.3 (6.6 ) 10.3 2.8 5.8 (1.8 )
Operating Cash Flow 36.1 (4.1 ) 14.5 11.7 14.0 8.0
Capital Expenditures 34.0 12.0 9.2 7.4 5.4 9.6
Gross Profit $ 49.5 $ 1.2 $ 19.9 $ 13.2 $ 15.2 $ 8.5
Gross Margin 32.7 % 3.6 % 45 % 50.8 % 31.6 % 56.3 %
Ounces unless otherwise notedFY 20114Q 20113Q 20112Q 20111Q 20114Q 2010
Tons Milled 415,340 71,700 116,255 121,565 105,820 83,774
Average Gold Grade (oz/t) 0.2 0.2 0.2 0.2 0.2 0.4
Average Recovery Rate 92.9 % 96.5 % 91.7 % 93 % 92.4 % 91 %
Gold Production 89 13 25 26 24 28
Cash Operating Costs/Ag Oz $ 1,088.37 $ 1,807.25 $ 973.28 $ 923.56 $ 988.75 $ 874.60

Table 24:  Reconciliation of EBITDA for Kensington

20114Q 20113Q 20112Q 20111Q 20114Q 2010
Sales of metal $ 151.2 $ 32.9 $ 44.2 $ 26.0 $ 48.1 $ 15.1
Production costs applicable to sales $ (101.7 ) $ (31.7 ) $ (24.3 ) $ (12.8 ) $ (32.9 ) $ (6.6 )
Administrative and general
Exploration (1.1 ) (0.5 ) $ (0.3 ) $ (0.3 )
Care and maintenance and other (0.3 ) (0.2 ) $ (0.1 )
Pre-development
EBITDA$48.1$0.5$19.6$12.8$15.2$8.5

Table 25:  Operating Cash Flow for Kensington

20114Q 20113Q 20112Q 20111Q 20114Q 2010
Cash provided by operating activities $ 42.5 $ 9.3 $ 8.6 $ 7.6 $ 17.0 $ (5.6 )
Changes in operating assets and liabilities:
Receivables and other current assets 7.3 (5.1 ) 5.0 (1 ) 8.4 (2.2 )
Prepaid expenses and other 1.9 0.5 1.3 0.2 (0.1 ) 0.1
Inventories (15.6 ) (10.1 ) (1.3 ) 8.0 (12.2 ) 15.3
Accounts payable and accrued liabilities 1.3 0.9 (3.1 ) 0.9 0.4
OPERATING CASH FLOW$36.1$(4.1)$14.5$11.7$14.0$8.0

Table 26:  Results of Operations by Mine - Martha

in millions of US$FY 20114Q 20113Q 20112Q 20111Q 2011
Sales of Metal $ 13.3 $ 2.8 $ 6.0 $ 4.8 $ (0.3 )
Production Costs 15.5 3.9 8.1 3.9 (0.4 )
EBITDA (8.8 ) (3.3 ) (3.8 ) (0.5 ) (1.2 )
Operating Income/(Loss) (9.2 ) (3 ) (4 ) (0.4 ) (1.8 )
Operating Cash Flow (7.7 ) (5 ) (1.7 ) (0.9 ) (0.1 )
Capital Expenditures 3.4 1.4 1.1 0.6 0.3
Gross Profit $ (2.2 ) $ (1.1 ) $ (2.1 ) $ 0.9 $ 0.1
Gross Margin (16.5 )% (39.6 )% (34.9 )% 18.8 % na
Ounces unless otherwise notedFY 20114Q 20113Q 20112Q 20111Q 2011
Total Tons Milled 101,167 37,141 24,086 22,122 17,818
Average Silver Grade (oz/t) 6.29 4.65 5.33 5.44 12.06
Average Gold Grade (oz/t) 0.01 0.01 0.01 0.01 0.02
Average Recovery Rate – Ag 83.2 % 75.2 % 92.3 % 84 % 83.7 %
Average Recovery Rate – Au 74 % 74.2 % 72.9 % 72.4 % 75.3 %
Silver Production 530 130 119 101 180
Gold Production 1
Cash Operating Costs/Ag Oz $ 32.79 $ 33.75 $ 39.31 $ 38.79 $ 24.44

Table 27: Reconciliation of EBITDA for Martha

20114Q 20113Q 20112Q 20111Q 20114Q 2010
Sales of metal $ 13.3 $ 2.8 $ 6.0 $ 4.8 $ (0.3 ) $ 18.7
Production costs applicable to sales $ (15.5 ) $ (3.9 ) $ (8.2 ) $ (3.8 ) $ 0.4 $ (10.3 )
Administrative and general
Exploration (6.4 ) (2.1 ) $ (1.5 ) $ (1.5 ) $ (1.3 ) $ (1.9 )
Care and maintenance and other (0.2 ) (0.1 ) $ (0.1 )
Pre-development
EBITDA$(8.8)$(3.3)$(3.8)$(0.5)$(1.2)$6.5

Table 28: Operating Cash Flow for Martha

20114Q 20113Q 20112Q 20111Q 20114Q 2010
Cash provided by operating activities $ (9.3 ) $ (3.2 ) $ 0.2 $ (3.2 ) $ (3.1 ) $ 4.6
Changes in operating assets and liabilities:
Receivables and other current assets (4.2 ) (0.9 ) 2.3 0.2 (5.8 ) 5.4
Prepaid expenses and other 0.2 (0.3 ) 0.4 0.1
Inventories 1.3 0.4 (3.3 ) 0.1 4.1 (4.8 )
Accounts payable and accrued liabilities 4.3 (1 ) (1.3 ) 1.9 4.7 (1.4 )
OPERATING CASH FLOW$(7.7)$(5)$(1.7)$(0.9)$(0.1)$3.8

Table 29: Results of Operations by Mine - Endeavor

in millions of US$FY 20114Q 20113Q 20112Q 20111Q 20114Q 2010
Sales of Metal $ 18.7 $ 2.8 $ 6.2 $ 6.6 $ 3.1 $ 3.3
Production Costs 8.6 1.0 3.2 3.3 1.1 1.4
EBITDA 10.1 1.8 3.0 3.3 2.0 1.9
Operating Income/(Loss) 7.0 1.1 2.1 2.4 1.4 1.3
Operating Cash Flow 9.0 2.1 1.3 3.6 2.0 1.8
Capital Expenditures
Gross Profit $ 10.1 $ 1.8 $ 3.0 $ 3.3 $ 2.0 $ 1.9
Gross Margin 54 % 64.3 % 48.4 % 50 % 64.5 % 57.6 %
Ounces unless otherwise notedFY 20114Q 20113Q 20112Q 20111Q 20114Q 2010
Silver Production 613 111 138 215 149 120
Gold Production
Cash Operating Costs/Ag Oz $ 18.87 $ 14.74 $ 22.26 $ 20.04 $ 17.15 $ 16.03

Table 30: Reconciliation of EBITDA for Endeavor

20114Q 20113Q 20112Q 20111Q 20114Q 2010
Sales of metal $ 18.7 $ 2.8 $ 6.2 $ 6.6 $ 3.1 $ 3.3
Production costs applicable to sales $ (8.6 ) $ (1 ) $ (3.2 ) $ (3.3 ) $ (1.1 ) $ (1.4 )
Administrative and general
Exploration
Care and maintenance and other
Pre-development
EBITDA$10.1$1.8$3.0$3.3$2.0$1.9

Table 31: Operating Cash Flow for Endeavor

20114Q 20113Q 20112Q 20111Q 20114Q 2010
Cash provided by operating activities $ 9.1 $ 2.1 $ 2.4 $ 2.5 $ 2.1 $ 2.7
Changes in operating assets and liabilities:
Receivables and other current assets (0.9 ) (1.2 ) (1.4 ) 2.7 (1 ) (0.4 )
Prepaid expenses and other
Inventories 0.1 0.1 (0.9 ) 0.9
Accounts payable and accrued liabilities 0.7 1.1 1.2 (1.6 ) (0.5 )
OPERATING CASH FLOW$9.0$2.1$1.3$3.6$2.0$1.8

Table 32: Operating Cash Flow by Mine for 2010

PalmarejoSan BartolomeKensingtonRochesterMarthaEndeavor
Cash provided by operating activities $ 72.2 $ 64.5 $ (19 ) $ 32.2 $ 14.9 $ 4.5
Changes in operating assets and liabilities:
Receivables and other current assets (8 ) 4.1 4.9 0.3 3.8 (3.1 )
Prepaid expenses and other (4.7 ) (1.5 ) 2.6
Inventories 32.1 8.3 25.6 (5.7 ) (6 )
Accounts payable and accrued liabilities (5 ) (21 ) (6.7 ) (1.9 ) (3.4 ) 5.1
OPERATING CASH FLOW$86.6$54.4$7.4$24.9$9.3$6.5

Table 33: Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs (Three months ending Dec. 31, 2011)

Cash operating costs are a non-U.S. GAAP measure defined as cash costs less production taxes and royalties if applicable. See the reconciliation between non-U.S. GAAP at the end of this news release. Consolidated cash operating costs per silver ounce are net of gold by-product and represent the consolidation of all Coeur's mines except for Kensington, which is a primary gold mine and reports cash operating costs per gold ounce.

(In thousands except ounces and per ounce costs) PalmarejoSan BartoloméKensingtonRochesterMarthaEndeavorTotal
Total Cash Operating Cost (Non-U.S. GAAP) (5,730 ) 18,332 24,035 14,191 4,386 1,647 56,861
Royalties 3,279 98 3,377
Production taxes 124 124
Total Cash Costs (Non-U.S. GAAP) (5,730 ) 21,611 96,234 14,315 4,484 1,647 60,362
Add/Subtract:
Third party smelting costs (1,881 ) (516 ) (483 ) (2,880 )
By-product credit 57,501 3,344 242 61,087
Other adjustments 233 608 266 97 1,204
Change in inventory (5,054 ) (869 ) 9,407 (13,722 ) (296 ) (112 ) (10,646 )
Depreciation, depletion and amortization 42,646 6,021 7,016 1,152 474 750 58,059
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) $ 89,596 $ 27,370 $ 38,577 $ 5,356 $ 4,486 $ 1,802 $ 167,187
Production of silver (ounces) 2,690,368 1,997,416 373,589 129,972 111,723 5,303,068
Cash operating cost per silver ounce $ (2.13 ) $ 9.18 $ $ 37.99 $ 33.75 $ 14.74 $ 6.19
Cash costs per silver ounce $ (2.13 ) $ 10.82 $ $ 38.32 $ 34.50 $ 14.74 $ 6.85
Production of gold (ounces) $ $ $ 13,299.00 $ $ $ $ 13,299.00
Cash operating cost per gold ounce $ $ $ 1,807.25 $ $ $ $ 1,807.25
Cash cost per gold ounce $ $ $ 1,807.25 $ $ $ $ 1,807.25

Table 34: Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs (Twelve months ending Dec. 31, 2011) Cash operating costs are a non-U.S. GAAP measure defined as cash costs less production taxes and royalties if applicable. See the reconciliation between non-U.S. GAAP at the end of this news release. Consolidated cash operating costs per silver ounce are net of gold by-product and represent the consolidation of all Coeur's mines except for Kensington, which is a primary gold mine and reports cash operating costs per gold ounce.

(In thousands except ounces and per ounce costs) PalmarejoSan BartoloméKensingtonRochesterMarthaEndeavorTotal
Total Cash Operating Cost (Non-U.S. GAAP) (8,743 ) 68,277 96,234 31,978 17,367 11,573 216,686
Royalties 11,561 2,177 685 14,423
Production taxes 409 409
Total Cash Costs (Non-U.S. GAAP) (8,743 ) 79,838 96,234 34,564 18,052 11,573 231,518
Add/Subtract:
Third party smelting costs (11,003 ) (2,882 ) (2,872 ) (16,757 )
By-product credit 197,342 9,898 949 208,189
Other adjustments 1,441 906 19 522 559 3,447
Change in inventory (3,839 ) (1,065 ) 16,422 (16,727 ) (1,165 ) (67 ) (6,441 )
Depreciation, depletion and amortization 159,231 22,408 35,839 2,807 554 3,148 223,987
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP) $ 345,432 $ 102,087 $ 137,511 $ 31,064 $ 16,067 $ 11,782 $ 643,943
Production of silver (ounces) 9,041,488 7,501,367 1,392,433 529,602 613,361 19,078,251
Cash operating cost per silver ounce $ (0.97 ) $ 9.10 $ $ 22.97 $ 32.79 $ 18.87 $ 6.31
Cash costs per silver ounce $ (0.97 ) $ 10.64 $ $ 24.82 $ 34.08 $ 18.87 $ 7.09
Production of gold (ounces) $ $ $ 88,420.00 $ $ $ $ 88,420.00
Cash operating cost per gold ounce $ $ $ 1,088.37 $ $ $ $ 1,088.37
Cash cost per gold ounce $ $ $ 1,088.37 $ $ $ $ 1,088.37

Table 35: Mineral Reserves at Year End 2011

Effective December 31, 2011 except Endeavor effective June 31, 2011.

SHORT TONSGRADE (Oz/Ton)OUNCES
YEAR END 2011LOCATIONSILVERGOLDSILVERGOLD
PROVEN RESERVES
Rochester Nevada, USA 31,532,400 0.59 0.006 18,680,600 178,800
Martha Argentina
San Bartolome Bolivia 959,000 3.01 2,888,250
Kensington Alaska, USA 1,164,100 0.280 325,920
Endeavor Australia 2,634,500 1.39 3,673,870
Palmarejo Mexico 4,915,900 5.31 0.067 26,090,800 329,950
Joaquin Argentina
Total41,205,90051,333,520834,670
PROBABLE RESERVES
Rochester Nevada, USA 15,747,300 0.69 0.004 10,892,300 68,200
Mina Martha Argentina 52,500 12.79 0.011 671,400 580
San Bartolome Bolivia 43,555,500 2.64 115,191,460
Kensington Alaska, USA 4,842,300 0.209 1,014,090
Endeavor Australia 2,998,300 2.50 7,500,770
Palmarejo Mexico 7,581,300 4.05 0.047 30,727,260 358,170
Joaquin Argentina
Total74,777,200164,983,1901,441,040
PROVEN AND PROBABLE RESERVES
Rochester Nevada, USA 47,279,700 0.63 0.005 29,572,900 247,000
Martha Argentina 52,500 12.79 0.011 671,400 580
San Bartolome Bolivia 44,514,500 2.65 118,079,710
Kensington Alaska, USA 6,006,400 0.223 1,340,010
Endeavor Australia 5,632,800 1.98 11,174,640
Palmarejo Mexico 12,497,200 4.55 0.055 56,818,060 688,120
Joaquin Argentina
Total Proven and Probable115,983,100216,316,7102,275,710
  1. Effective December 31, 2011 except Endeavor effective June 31, 2011.
  2. Metal prices used for mineral reserves were $23 US per ounce of silver and $1,220 US per ounce of gold except Endeavor at $2,200 per metric ton of lead, $2,200 per metric ton of zinc and $25 per ounce of silver and Martha at $1,250 US per ounce of gold and $24 US per ounce of silver.
  3. Palmarejo Mineral Reserves are the addition of Palmarejo and Guadalupe (Proven and Probable).
  4. Rounding of tons as required by reporting guidelines may result in apparent differences between tons, grade and contained metal content.
  5. For details on the estimation of mineral resources and reserves for each property, please refer to the Technical Report on file at www.sedar.com.

Table 36: Mineral Resources (Exclusive of Reserves) at Year End 2011

SHORT TONSGRADE (Oz/Ton)OUNCES
YEAR END 2011LOCATIONSILVERGOLDSILVERGOLD
MEASURED RESOURCES
Rochester Nevada, USA 131,085,400 0.46 0.004 60,586,200 500,500
Martha Argentina
San Bartolome Bolivia
Kensington Alaska, USA 495,200 0.234 115,910
Endeavor Australia 10,923,900 2.67 29,148,830
Palmarejo Mexico 1,792,900 4.24 0.052 7,593,880 93,250
Joaquin Argentina
Total144,297,40097,328,910709,660
INDICATED RESOURCES
Rochester Nevada, USA 120,387,000 0.43 0.003 51,762,400 366,300
Martha Argentina 35,100 12.15 0.013 426,450 440
San Bartolome Bolivia 21,263,600 2.59 54,968,370
Kensington Alaska, USA 2,544,200 0.185 471,410
Endeavor Australia 123,500 0.01 1,830
Palmarejo Mexico 3,268,700 2.88 0.034 9,398,900 111,270
Joaquin Argentina 4,049,900 2.48 0.005 10,043,430 18,360
Total151,672,000126,601,380967,780
MEASURED AND INDICATED RESOURCES
Rochester Nevada, USA 251,472,400 0.45 0.003 112,348,600 866,800
Martha Argentina 35,100 12.15 0.013 426,450 440
San Bartolome Bolivia 21,263,600 2.59 54,968,370
Kensington Alaska, USA 3,039,400 0.193 587,320
Endeavor Australia 11,047,400 2.64 29,150,660
Palmarejo Mexico 5,061,600 3.36 0.040 16,992,780 204,520
Joaquin Argentina 4,049,900 2.48 0.005 10,043,430 18,360
Total Measured and Indicated295,969,400223,930,2901,677,440
INFERRED RESOURCES
Rochester Nevada, USA 40,542,600 0.58 0.003 23,618,600 122,400
Martha Argentina 259,400 4.32 0.005 1,121,270 1,210
San Bartolome Bolivia 3,384,800 1.07 3,617,040
Kensington Alaska, USA 730,700 0.232 169,680
Endeavor Australia 3,527,400 1.09 3,835,584
Palmarejo Mexico 11,653,000 2.40 0.052 27,928,190 611,650
Joaquin Argentina 7,755,300 3.15 0.003 24,455,520 21,420
Total67,853,20084,576,204926,360
  1. Effective December 31, 2011 except Endeavor effective June 31, 2011, Joaquin effective May 26, 2011.
  2. Metal prices used for mineral resources were $30.00 US per ounce of silver and $1,500 US per ounce of gold except Endeavor at $2,200 per metric ton of lead, $2,200 per metric ton of zinc and $25 per ounce of silver, Martha at $1,250 US per ounce of gold and $24 US per ounce of silver, and Joaquin at $20 US per ounce of silver and $1,300 US per ounce of gold.
  3. Palmarejo Mineral Resources are the addition of Palmarejo, Guadalupe and La Patria (Measured, Indicated and Inferred).
  4. Coeur is the operator of the Joaquin Project and holds a 51% project interest as of November, 2011.
  5. Mineral Resources are in addition to mineral reserves and have not demonstrated economic viability.
  6. Rounding of tons as required by reporting guidelines may result in apparent differences between tons, grade and contained metal content.
  7. For details on the estimation is mineral resources and reserves for each property, please refer to the Technical Report on file at www.sedar.com.

Contacts:

Coeur d'Alene Mines Corporation
Stefany Bales, Director of Corporate Communications
208-667-8263
or
Wendy Yang, Vice President of Investor Relations
208-665-0345
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