Coeur Reports Solid First Quarter Results

Coeur d'Alene Mines Corporation (NYSE:CDE) (TSX:CDM) produced 4.9
million ounces of silver and 43,901 ounces of gold in the first quarter
of 2012, which resulted in $204.6 million in sales and $93.8 million in
operating cash flow¹ during the first quarter of 2012.

First Quarter Highlights:

• 
  Net metal sales totaled $204.6 million, 3% higher than the first
  quarter of 2011.
  
• 
  Silver production totaled 4.9 million ounces, 19% higher than last
  year's first quarter, and gold production totaled 43,901 ounces.
  
• 
  Cash operating costs¹ decreased 25% to $6.29 per silver
  ounce.
  
• 
  Silver and gold sales totaled 4.3 million ounces and 38,884 ounces,
  respectively.
  
• 
  Operating cash flow¹ increased 4% to $93.8 million.²
• 
  General and administrative expenses decreased 38%.
  
• 
  Adjusted earnings¹ totaled $41.5 million, or $0.46 per
  share, an 11% increase over the first quarter of 2011.³
• 
  Average realized prices were $32.61 per ounce for silver and $1,702
  per ounce for gold, 4% and 24% higher, respectively, than the first
  quarter of 2011.
  
• 
  Cash, cash equivalents, and short-term investments totaled $153.2
  million⁴ as of March 31.
  

'The first quarter operating and financial results reflect a solid start
to 2012. We are particularly pleased that full production has resumed
two months ahead of schedule at Kensington,? said Mitchell J. Krebs,
Coeur's President and Chief Executive Officer. 'Despite cost pressures
throughout our industry, we are proud to have reduced cash operating
costs¹ per ounce by 25% in the first quarter compared to the
same period last year. In addition, we experienced a 38% reduction in
our general and administrative costs. Our 2012 production guidance of
18.5 - 20.0 million ounces of silver and 210,000 - 230,000 ounces of
gold remains unchanged. With silver and gold prices remaining resilient,
we are on-track for a robust second quarter and full-year 2012
performance.?

Mr. Krebs continued, 'Palmarejo remains our largest producer and cash
flow contributor and posted a strong first quarter. San Bartolom?
performed consistently in the first quarter and successfully operated
above the 4,400 meter level during most of the quarter. The first
quarter marked Rochester's initial three months of operation since
resuming active mining in December. We expect production at Rochester to
increase each quarter of 2012 as more material is added to the new leach
pad. With Kensington now completing several critical projects, the focus
will turn to achieving sustainable production levels and reducing costs.
With Kensington and Rochester reaching operational consistency, all four
of our major long-lived mines are expected to contribute to strong
second quarter and full-year performance.?

Net metal sales were slightly higher in the first quarter of 2012 than
in the first quarter of 2011. This is due largely to higher silver and
gold realized prices and increased silver ounces sold, offset by fewer
gold ounces sold due to the temporary curtailment of production at
Kensington. Silver contributed 68% of the Company's total metal sales
during the first quarter of 2012 compared to 56% during the first
quarter of 2011.

First quarter production costs of $92.6 million were flat compared to
last year's first quarter. General and administrative expenses decreased
by $4.6 million, or 38%, from $12.2 million to $7.6 million as compared
to the first quarter of 2011. The decrease was primarily caused by lower
stock-based compensation expense.

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. First quarter 2012 adjusted earnings¹ were $41.5
million, or $0.46 per share, which was 11% higher than adjusted earnings
in the first quarter of 2011 of $37.5 million, or $0.42 per share. On a
U.S. GAAP basis, the Company realized net income of $4.0 million, or
$0.04 per share, in the first quarter compared with net income of $12.5
million, or $0.14 per share, in the first quarter of 2011. The first
quarter net income was impacted by fair value adjustments that decreased
net income by $23.1 million. 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. Net
income was also impacted by higher exploration expense and significantly
higher income tax expense.

Prior to changes in working capital, Coeur generated operating cash flow¹
of $93.8 million during the first quarter of 2012, slightly higher than
a year ago. Changes in working capital consumed $76.8 million during the
first quarter driven primarily by a significant tax payment in Bolivia
and an increase in inventory due to timing differences between ounces
produced and ounces sold. After working capital changes, the Company
generated cash flow from operations of $17.0 million during the first
quarter of 2012 compared to $35.8 million during the first quarter of
2011.

Capital expenditures totaled $31.6 million during the first quarter.
Capital expenditures of $10.9 million were incurred at Kensington for
the construction of the paste backfill plant, surface construction
projects and underground development. San Bartolom? incurred $10.2
million of capital expenditures for tailings facility construction.
Palmarejo incurred $7.2 million of capital expenditures most of which
was for construction work at its tailings facility.

Cash, cash equivalents, and short-term investments totaled $153.2
million at March 31, 2012 and stood at approximately $175.0 million as
of April 30, 2012. Shares outstanding remained steady at 89.9 million.

During the first quarter of 2012, silver production was 4.9 million
ounces while gold production was 43,901 ounces, 19% higher and 17%
lower, respectively, than a year ago. Lower gold production was expected
due to the temporary reduction in mining and processing activities at
Kensington. Kensington's production is expected to increase throughout
the remainder of 2012 while costs are expected to decline.

Consolidated cash operating costs¹ were $6.29 per silver
ounce in the first quarter, a significant decrease of 25% from a year
ago due primarily to sharply lower costs at Palmarejo. Rochester's costs
are expected to continue to decline as production increases throughout
the remainder of 2012.

Palmarejo, Mexico - Lower Cash Operating Costs Led to Higher Cash Flow

• 
  First quarter silver production increased 44% to 2.5 million ounces
  compared to the first quarter of 2011. Over the same period, gold
  production increased 12% to 31,081 ounces.
  
• 
  Significantly higher tons milled and higher recovery rates, especially
  for silver, led to higher production levels and lower cash operating¹
  costs per ounce.
  
• 
  First quarter cash operating costs¹ per silver ounce were
  sharply lower at $(2.27) compared to $4.80 a year ago.
  
• 
  Palmarejo is the Company's largest contributor of sales and operating
  cash flow¹, reaching $123.7 million and $79.1 million
  respectively, in the first quarter. Capital expenditures were $7.2
  million.
  

San Bartolom?, Bolivia - Steady Performance

• 
  As anticipated, silver production decreased 7% to 1.6 million ounces
  due to mining lower grade ore, partially offset by a higher recovery
  rate, compared to a year ago.
  
• 
  Cash operating costs¹ increased 12% compared to last year's
  first quarter to $10.21 per silver ounce.
  
• 
  San Bartolom? contributed $41.4 million in sales and $20.8 million in
  operating cash flow¹ in the first quarter. Capital
  expenditures were $10.2 million.
  

Kensington, Alaska - Full Production Resumes Ahead of Schedule

• 
  The Company announced on April 26, 2012 that Kensington is resuming
  full production ahead of schedule after completing several critical
  projects, including an underground paste backfill plant, which is
  currently being commissioned, upgrading the mine's electrical
  infrastructure, and construction of several new surface facilities.
  Underground development and infill drilling are advancing ahead of
  schedule.
  
• 
  Due to the planned temporary reduction in production that began in
  December 2011, Kensington produced 7,444 ounces of gold at cash
  operating costs¹ of $2,709 per ounce during the first
  quarter.
  
• 
  The Company's production guidance for 2012 remains unchanged at 82,600
  - 86,500 ounces of gold. Approximately two-thirds of Kensington's gold
  production is expected in the second half of 2012.
  
• 
  The mine contributed $10.4 million in sales while operating cash flow¹
  was $(7.8) million in the first quarter of 2012. Capital expenditures
  were $10.9 million.
  

Rochester, Nevada - First Full Quarter of New Production

• 
  Silver production increased 32% in the first quarter to 0.4 million
  ounces and gold production increased 265% to 5,292 ounces due to
  initial production from the new leach pad that was constructed in 2011.
  
• 
  Cash operating costs¹ were $23.35 per ounce during the
  first quarter and are expected to decrease steadily as production
  increases during the remainder of 2012.
  
• 
  The mine contributed $18.8 million in sales and $7.2 million in
  operating cash flow¹ in the first quarter. Capital
  expenditures were $2.6 million.
  

Exploration Highlights

The Company plans to spend approximately $40.0 million in exploration
during 2012 with approximately 84% of the budget focused on expanding
reserves and resources around existing operations. During the first
quarter, the Company completed 67,671 meters (222,016 feet) of core and
reverse circulation drilling and trenching in its global exploration
program.

Palmarejo, Mexico

The Company completed 37,186 meters (122,001 feet) of drilling in the
Palmarejo District during the first quarter. Drilling was divided
between targets around the Palmarejo mine using both surface and
underground drill platforms, specifically the Rosario, Tucson and
Chapotillo zones, and at Guadalupe and other targets including La
Patria, Independencia and Guerra al Tirano. The bulk of the drilling
will take place at Guadalupe and Palmarejo in the second quarter of this
year.

Joaquin, Argentina

A total of 14,342 meters (47,021 feet) of drilling was completed in the
Santa Cruz Province of southern Argentina in the first quarter. Over 92%
of the drilling was completed at the Joaquin joint venture property,
with a focus on expanding and increasing the confidence of
mineralization at the La Morocha and La Negra deposits and to collect
new samples for metallurgy tests. An updated mineral resource estimate
is expected to be completed by the end of the second quarter. Upon
completion of a feasibility study, the Company's managing and
participating interest will increase from 51% to 61%. Subject to certain
conditions, the Company has an option to increase its interest further.
The Joaquin Project is located approximately 70 kilometers (43 miles)
north of the Company's Martha Mine.

Rochester, Nevada

Drilling at Rochester continued at the pace set in the second half of
2011. A total of 12,634 meters (41,450 feet) of reverse circulation
drilling were completed on the property. In addition, drilling of
surface stockpiles commenced in the quarter.

Kensington, Alaska

Exploration at Kensington consisted of 3,014 meters (9,887 feet) of core
drilling in the first quarter. Nearly all of the drilling was devoted to
the Raven vein zone which is located approximately 685 meters (2,250
feet) due west of the Kensington ore body. In addition, drilling
recommenced on the new Kensington South target which is immediately
south of and on trend with the Kensington ore body and has seen little
historic exploration. In addition, up to 3 drills were employed to
complete 6,211 meters (20,377 feet) of definition drilling to further
define the lower part of Zone 10 at Kensington which is expected to form
the bulk of mining for the next three years.

2012 Outlook

Production guidance and silver cash operating costs per ounce for 2012
remain unchanged from the Company's February 23, 2012 news release.
Coeur expects to produce 18.5 ?- 20.0 ?million ounces of silver and
210,000 - 230,000 ounces of gold in 2012. Cash operating costs¹
are expected to average $6.50 - $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 average approximately $1,150
- $1,250 per ounce of gold for the full year.

Conference Call Information

Coeur will hold a conference call to discuss the Company's first quarter
of 2012 results at 1:00 p.m. Eastern time on May 7, 2012.

The conference call and presentation will also be webcast on the
Company's website www.coeur.com.
A replay of the call will be available through May 14, 2012.

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, production levels
and operating costs. Such statements are subject to numerous assumptions
and uncertainties, many of which are outside the control of Coeur.
Anticipated operating, exploration and financial data, and other
forward-looking 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, in the 'Risk Factors' and 'Management's
Discussion and Analysis of Financial Condition and Results of
Operations' sections of 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 may use certain terms in
public disclosures, such as 'measured,' 'indicated,' 'inferred' and
'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 built and commenced
production from three wholly-owned, long-lived mines 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.
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.

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