Coeur Posts All-Time Record Quarterly Sales and Operating Cash Flow

Coeur d′Alene Mines Corporation (NYSE:CDE) (TSX:CDM) sold 6.2 million
ounces of silver and 67,391 ounces of gold, leading to $343.6 million in
sales and $151.0 million in operating cash flow¹ during the
third quarter of 2011.

Third Quarter Highlights:

• 
  Record net metal sales of $343.6 million were 49% higher over the
  prior quarter and 190% higher than last year′s third quarter
  
• 
  Record $151.0 million of operating cash flow¹ represented a
  30% jump over prior quarter and almost five-times higher than last
  year′s third quarter
  
• 
  Adjusted earnings² totaled a record $93.8 million, or $1.05
  per share, versus an adjusted loss of ($4.5) million, or ($0.05) per
  share, during last year′s third quarter
  
• 
  Net income reached $31.1 million, or $0.35 per share, compared to a
  net loss of ($22.6) million, or ($0.25) per share, during last year′s
  third quarter
  
• 
  Silver production totaled 4.9 million ounces, which was 3% higher than
  the prior quarter and 13% higher than last year′s third quarter
  
• 
  Gold production totaled 57,052 ounces, down slightly from the prior
  quarter and 20% higher compared to last year′s third quarter
  
• 
  Average realized prices were $38.28 per ounce for silver and $1,681.42
  per ounce for gold
  
• 
  Cash and cash equivalents increased to $207.9 million at September 30,
  2011, up from $106.8 million at June 30, 2011 and 214% higher than
  year-end 2010
  

First Nine Months 2011 Highlights:

• 
  Record net metal sales of $774.3 million represented a 152% increase
  over first nine months of 2010
  
• 
  Record operating cash flow¹ of $356.9 million jumped 322%
  compared to first nine months of 2010
  
• 
  Adjusted earnings² totaled $189.3 million, or $2.12 per
  share, compared to an adjusted loss of ($11.7) million, or ($0.13) per
  share, during the first nine months of 2010
  
• 
  Silver production totaled 13.8 million ounces, up 15% compared to the
  first nine months of 2010
  
• 
  Gold production totaled 170,838 ounces, up 77% over the first nine
  months of 2010
  
• 
  Average realized prices were $36.69 per ounce of silver and $1,522.65
  per ounce of gold, increases of 103% and 29%, respectively, compared
  to the first nine months of 2010
  

'We are pleased to report all-time record sales and operating cash flow
for both the quarter and the first nine months,? commented Mitchell J.
Krebs, Coeur′s President and Chief Executive Officer. 'In conjunction
with strong prices, our rising production levels and growing cash flow
offer investors a unique investment opportunity.

'The San Bartolom? and Palmarejo mines are performing consistently, and
the Rochester operation is now seeing production from its
recently-completed leach pad. We remain on track to produce
approximately 19.5 million ounces of silver at unchanged cash operating
costs⁵ of $5.75 per ounce and expect to achieve our financial
targets of $1.0 billion in total sales and over $500 million in
operating cash flow¹. We are revising our gold production
forecast for 2011 to approximately 220,000 ounces.?

Mr. Krebs continued, 'One of our most critical objectives is to deliver
consistent results for our shareholders. While we are now achieving
consistency at San Bartolom? and Palmarejo, we still have work to do at
Kensington, which is the newest of our three, long-life mines. We plan
to temporarily reduce processing rates by 50% at Kensington over the
next six months to allow time for the operation to complete several key
initiatives, which we expect to better position the mine for long-term,
sustainable and consistent performance.

'Finally, our cash balance grew to $207.9 million at quarter end. We are
evaluating potential alternatives for returning capital to shareholders.
As we continue generating significant free cash flow and achieve
consistent performance from our operations, we believe we will be
well-positioned to invest in high-return internal and external growth
opportunities while also returning capital to our shareholders.?

Net metal sales increased 190% to $343.6 million in the third quarter
compared to $118.6 million during last year′s third quarter, primarily
due to increased gold production from the Kensington mine and higher
silver production from the Palmarejo mine as well as substantially
higher average realized silver and gold prices.

Silver production contributed 68% of the Company′s total metal sales
during the quarter compared to 62% during the third quarter of 2010.
Silver and gold ounces sold were higher than production during the
quarter due to several factors, including a carryover of sales from the
ounces produced but not sold during the prior quarter.

Coeur reports a non-U.S. GAAP metric of adjusted earnings² as
a measure of operating income and which excludes non-cash fair value
adjustments, other non-cash adjustments, deferred taxes and discontinued
operations. Third quarter adjusted earnings were $93.8 million or $1.05
per share, compared to an adjusted loss of ($4.5) million or ($0.05) per
share during last year′s third quarter.

The Company realized net income of $31.1 million or $0.35 per share in
the third quarter compared to a net loss of ($22.6) million or ($0.25)
per share in last year′s third quarter. The earnings reflected fair
value adjustments that decreased net income by $53.4 million and $19.1
million in the three months ended September 30, 2011 and 2010,
respectively. These fair value adjustments are driven primarily by
higher gold prices which increased the estimated future liabilities
related to a gold royalty obligation at Palmarejo and a small amount of
gold collar option positions related to a term credit facility secured
by the Company′s Alaskan subsidiary.

On a U.S. GAAP basis, the Company generated cash flow from operations of
$181.9 million during the third quarter compared to $12.9 million during
the third quarter of 2010. Prior to changes in working capital, Coeur
generated operating cash flow¹ of $151.0 million during the
third quarter, almost five times higher than a year ago.

Coeur reduced its total debt by 23% from $180.1 million a year ago to
$146.7 million, including principal repayments of $6.9 million on the
Kensington term facility ($82.8 million remaining) and $3.8 million in
senior notes ($18.8 million remaining). As a result, interest expense
for the third quarter declined by $2.0 million from a year ago to $8.0
million. Subsequent to the end of the third quarter, the Company
eliminated the remaining senior notes, resulting in a further 13%
reduction in remaining debt to $128 million.

Capital expenditures totaled $38.1 million during the third quarter,
which was slightly higher than during last year′s third quarter. Most of
the capital expenditures were at Rochester for construction of the new
leach pad, at Palmarejo related to activities at the tailings facility
and at Kensington for the construction of the underground paste fill
plant and for underground development.

Cash and cash equivalents totaled $207.9 million at September 30, 2011,
almost double from June 30, 2011 and 214% higher than year-end 2010.

Operational Highlights: Production

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

Operational Highlights: Cash Operating Costs⁽⁵⁾

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

During the third quarter, silver production reached 4.9 million ounces
while gold production totaled 57,052 ounces. Kensington contributed 45%
of the Company′s total gold production. Consolidated cash operating
costs were $7.57 per silver ounce in the third quarter, higher than the
third quarter of 2010 due to short-term higher production costs at
Palmarejo, San Bartolom? and Rochester, which are expected to improve in
the fourth quarter. In general, the Company has seen cost increases in
power, diesel, other inputs and labor during the quarter.

Palmarejo, Mexico ? Generating Strong Cash Flow

• 
  Third quarter silver production increased 49% to 2.3 million ounces
  compared to the third quarter of 2010 and was slightly lower than the
  prior quarter. Third quarter gold production totaled 29,815 ounces,
  which was equivalent to gold production during last year′s third
  quarter and 11% lower than the prior quarter.
  
• 
  Tons milled declined during the third quarter due to mill maintenance
  and repair work that took place during July, which slightly affected
  quarterly production levels.
  
• 
  Third quarter cash operating costs per ounce were higher than the
  prior quarter due to ?increased maintenance and operational costs in
  the open pit and increased process costs in the areas of grinding and
  leaching.
  
• 
  Palmarejo is the Company′s largest contributor of sales and operating
  cash flow¹, reaching $166.9 million and $91.2 million
  respectively, in the third quarter. Capital expenditures were $9.5
  million.
  

San Bartolom?, Bolivia ? Another Consistent Quarter

• 
  Silver production increased 14% over last year′s third quarter and 18%
  from the prior quarter, while cash operating costs increased 32% and
  7% respectively. Increased production was driven by 13% higher mill
  throughput as well as slightly higher ore grade and recovery rate.
  
• 
  Third quarter production costs increased from last year′s third
  quarter due to higher project development, open pit haulage and
  maintenance costs.
  
• 
  San Bartolom? contributed $102.8 million in sales and $49.6 million in
  operating cash flow¹ in the third quarter. Capital
  expenditures were $4.4 million.
  

Kensington, Alaska ? Short-Term Reduction Expected to Lead to
Long-Term Consistency

• 
  Kensington is expected to enter a six month period where processing
  levels will be reduced by 50% to approximately 700 tons per day. This
  is intended to allow the mine to implement and complete several key
  initiatives, including:
  
  
  • 
    Accelerated underground development, resulting in more working
    faces and greater operational flexibility
    
  • 
    Aggressive in-fill drilling program to better define the
    high-grade ore zones and convert existing resources into proven
    and probable reserves
    
  • 
    Completion and commissioning of the underground paste backfill
    plant and related distribution system, providing access to stopes
    located in previously mined areas
    
  • 
    Upgrading and completing construction of several underground and
    surface facilities
    
  • 
    Improving overall safety of the operation
    
• 
  Expected operational effects of this strategy:
  
  
  • 
    2011 production of approximately 85,000 ounces at costs of
    approximately $990 per ounce
    
  • 
    2012 production expected to be similar to 2011, with costs
    declining in the second half of the year as production levels
    increase
    
  • 
    Production levels in 2013 and beyond are expected to rise to
    approximately 125,000 ? 135,000 ounces at substantially lower
    operating costs than the current levels
    
• 
  The mine contributed $44.2 million in sales and $14.5 million in
  operating cash flow¹ in the third quarter. Capital
  expenditures were $9.2 million.
  

K. Leon Hardy, Coeur′s Chief Operating Officer, said, '2012 is expected
to represent a transition year at Kensington as these projects are
completed and operating activities resume at increased levels. We
recognize that we need to take a step back in the ore production profile
in order to advance these initiatives that we expect to ultimately
reduce costs and ensure higher, more consistent production levels.
Kensington is an underground operation with one primary portal, which
means we will need to curtail some ore production in order to advance
installations and other work in the mine.?

Rochester, Nevada ? Resurgence in Production in the Fourth Quarter

• 
  Third quarter silver production was lower by 16% from last year′s
  third quarter and slightly higher than the prior quarter, while cash
  operating costs were significantly higher.
  
• 
  Per ounce costs were temporarily higher during the quarter as a result
  of increased costs associated with ore placement on the new leach pad
  while ounces produced during the quarter consisted solely of residual
  production of silver and gold from existing leach pads. The new leach
  pad is expected to begin producing new silver and gold ounces during
  the fourth quarter of 2011, which are expected to reduce cash
  operating costs.
  
• 
  During the third quarter and through the end of October, the Company
  placed ore containing over 5,000 ounces of gold and 418,000 ounces of
  silver on the new leach pad. These levels are expected to double by
  year end. The Company expects an initial 50% recovery rate within 30
  to 60 days from the placement of this ore.
  
• 
  The mine contributed $17.5 million in sales and $2.7 million in
  operating cash flow¹ in the third quarter. Capital
  expenditures were $13.6 million.
  

Exploration Highlights

Donald J. Birak, Senior Vice President of Exploration, commented, 'Our
accelerated exploration program is yielding excellent results,
particularly at Palmarejo and Rochester. Along with the Joaquin silver
project in southern Argentina, we expect this work, continuing into
2012, to result in mine life extensions and mineral resource additions
at all of these properties. We anticipate dramatically increasing our
investment in exploration in 2012.?

During the three months ending September 30, 2011, the Company completed
over 39,600 meters (130,000 feet) of new core and reverse circulation
drilling in its global exploration program. The majority of this
drilling was devoted to the Company′s Palmarejo property followed by
Rochester, Joaquin and Kensington.

Palmarejo, Mexico

The Company completed over 21,500 meters (70,550 feet) in the third
quarter in the Palmarejo District. This exploration drilling was split
between targets around the current Palmarejo mine from both surface and
underground drill platforms, specifically the Rosario, Tucson and
Chapotillo zones, and at the Guadalupe and La Patria deposits. This past
quarter′s drilling at La Patria remained focused on exploration drilling
and definition of the northern zone.

The Company is very encouraged by its initial drilling results from La
Patria and has commenced a program of surface trenching to help define
the continuity of the known vein structures in support of continued
drilling.

Rochester, Nevada

Drilling at Rochester nearly doubled compared to the prior quarter. A
total of 12,800 meters (42,000 feet) of reverse circulation drilling
were completed at the Nevada Packard and Rochester silver and gold
deposits. Drilling at Nevada Packard, situated approximately 2.3
kilometers (1.4 miles) south of the current Rochester mine, focused on
expanding the deposit to the west. At Rochester, drilling was focused on
the Northwest Rochester zone at the north side of the mine.

Both deposits remain open for expansion. Drilling is expected to
continue at Rochester into the fourth quarter and into 2012.

Martha and Joaquin, Argentina

Over 3,600 meters (12,200 feet) of core drilling was completed on all
targets in the Santa Cruz Province of southern Argentina in the third
quarter of 2011. At Joaquin, drilling recommenced late in the quarter at
the La Negra zone. The Company plans to continue to drill to define the
mineral resources at Joaquin and advance the project towards completion
of a feasibility study, which would increase the Company′s managing
interest in the Joaquin project from 51% to 61%. Subject to certain
conditions the Company has an option to increase its interest to 71%.
The Joaquin project is located approximately 100 kilometers (62 miles)
north of the Martha mine by road. Other targets drilled in the quarter
were Betty and Wendy at Martha and Sat?lite, an early-stage prospect in
eastern Santa Cruz.

Kensington, Alaska

Exploration at Kensington in the quarter consisted of just over 1,000
meters (3,300 feet) of core drilling nearly all of which was devoted to
the Raven zone, which is located approximately 685 meters (2,250 feet)
due west of the Kensington ore body. This drilling and ongoing drilling
is expected to define a new mineral resource estimate on this zone.
Raven is one of several gold-bearing vein structures occurring within a
300- to 450-meter wide (1,000 to 1,500 feet) corridor, extending over
3,000 meters (9,800 feet) southward to the Jualin deposit, which is
located near the mill facility. Drilling commenced late in the quarter
on a new target, Kensington South.

San Bartolom?, Bolivia

The ongoing program of trenching and sampling continued into the third
quarter of 2011 at San Bartolom?. A total of 51 new backhoe trenches
were completed and sampled, resulting in 339 new samples collected from
one-meter vertical intervals. All of this work was centered on the Santa
Rita and Diablo areas. Through the first nine months of 2011, 1,010 new
samples have been collected from 164 trenches intended to expand and
upgrade mineral resources.

Conference Call Information

Coeur will hold a conference call to discuss the Company′s third quarter
2011 results at 1:00 p.m. Eastern time on November 7, 2011. To listen
live via telephone, call (877) 464-2820 (US and Canada) or (660)
422-4718 (International). The conference ID number is 18886296. The
conference call and presentation will also be webcast on the Company's
web site at www.coeur.com.
A replay of the call will be available through November 15, 2011. The
replay dial-in numbers are (855) 859-2056 (US and Canada) and (404)
537-3406 (International) and the access code is 18886296. In addition,
the call will be archived for a limited time on the Company′s web site.

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 presentation 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, 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. 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 analyzing 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 has several core
silver and gold mines generating higher production, sales and cash flow
in continued strong precious metals markets. This growth is derived from
wholly-owned mines that were constructed and began producing between
2008 and 2010: the San Bartolom? silver mine in Bolivia; the Palmarejo
silver-gold mine in Mexico, and the Kensington gold mine in Alaska. In
addition, the Company is expecting additional production from its
long-time Rochester silver-gold mine in Nevada, and also owns and
operates the Martha silver-gold mine in Argentina. The Company also owns
a non-operating interest in a silver-base metal mine in Australia, and
conducts ongoing exploration activities near and within its operating
properties in Argentina, Mexico, Nevada and Alaska.

APPENDIX:

Operating Statistics from Continuing Operations

'Operating Costs per Ounce? and 'Cash Costs per Ounce? are calculated by
dividing the operating cash costs and 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 operating costs per ounce and cash costs
per ounce as key indicators of the profitability of each of its mining
properties. Gold and silver are sold and priced in the world financial
markets on a U.S. dollar per ounce basis.

'Cash Operating Costs? and '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 expenses, on-site general and administrative
costs, royalties, in-mine drilling expenditures 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, accretion, corporate general and
administrative expenses, exploration, interest, and pre-feasibility
costs. Cash operating costs include all cash costs except production
taxes and royalties, if applicable. Cash costs are calculated and
presented using the 'Gold Institute Production Cost Standard? applied
consistently for all periods presented.

Total operating costs and cash costs per ounce are non-U.S. GAAP
measures and investors are cautioned not to place undue reliance on them
and are urged to read all U.S. 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-U.S. GAAP Cash Costs to U.S. GAAP
Production Costs? set forth below.