Coeur Reports Strong Second Quarter Financial and Operating Results; Provides Positive Update to 2012 Guidance

Coeur d'Alene Mines Corporation (NYSE:CDE, TSX:CDM) produced 4.9 million
ounces of silver and 63,047 ounces of gold during the second quarter,
which resulted in $254.4 million in sales, $88.4 million in operating
cash flow,¹ and a $47.1 million increase in cash, cash
equivalents and short-term investments to $200.3 million.

The Company expects to achieve the high-end of its 2012 silver and gold
production guidance of 18.5 - 20.0 million silver ounces and 210,000 -
230,000 gold ounces. The Company also expects to achieve the low-end of
its 2012 guidance for cash operating costs¹ per silver ounce
of $6.50 - $7.50.

Second Quarter Highlights

• 
  Silver production totaled 4.9 million ounces, equal to first quarter
  2012 levels.
  
• 
  Gold production totaled 63,047 ounces, up 44% from the first quarter.
  
• 
  Net metal sales totaled $254.4 million, up 24% from the first quarter.
  
• 
  Operating cash flow¹ totaled $88.4 million, down 6% from
  the first quarter.Including changes in working capital,
  net cash from operating activitiestotaled $113.2 million
  compared to $17.0 million in the first quarter.
  
• 
  Consolidated cash operating costs¹ totaled $6.41 per silver
  ounce, up slightly from the first quarter.
  
• 
  Cash operating costs¹ per gold ounce declined 50% from the
  first quarter to $1,348 and are expected to reach $900 by year-end.
  
• 
  Adjusted earnings¹ totaled $28.0 million, or $0.31 per
  share, compared to $41.5 million, or $0.46 per share, in the first
  quarter. Net income totaled $23.0 million, or $0.26 per share,
  compared to $4.0 million, or $0.04 per share, in the first quarter.
  
• 
  Announced a share repurchase program of up to $100 million of the
  Company's common stock and finalized a $100 million, four-year
  revolving credit facility.
  
• 
  Cash, cash equivalents and short-term investments totaled $200.3
  million as of June 30, 2012, $47.1 million higher than March 31, 2012.
  

'The Company is performing according to plan, which is leading to strong
financial performance,? said Mitchell J. Krebs, Coeur's President and
Chief Executive Officer. 'The Board of Directors' authorization in June
to repurchase up to $100 million of the Company's common stock reflects
our confidence in the Company's underlying cash flow and the long-term
value the Company represents for shareholders,? he said.

'Our Kensington gold mine in Alaska nearly tripled its production and
cut its operating costs per ounce in half during the second quarter with
the mine's return to full production, which represent key milestones for
this important operation. We also saw higher silver and gold production
levels and substantially lower costs at our Rochester mine in Nevada as
a result of an expansion that took place in 2011. Our Palmarejo silver
and gold mine in Mexico and our San Bartolom? silver mine in Bolivia
both delivered consistent results during the second quarter. Despite
industry-wide cost pressures, the Company delivered flat cash operating
costs¹ per ounce during the second quarter, due mostly to
efficiency improvements achieved at its key operations,? Krebs said.

^{1. EBITDA, operating cash flow, adjusted earnings and cash
operating costs are non-GAAP measures. Please see tables in the Appendix
for reconciliation to U.S. GAAP. Total debt includes short and long-term
indebtedness and excludes capital leases and royalty obligations.}

Table 1: Financial Highlights (Unaudited)

Net metal sales for the second quarter totaled $254.4 million, higher
than both the second quarter of 2011 and the first quarter of 2012. This
increase is due primarily to increased silver ounces sold year-over-year
and higher gold production at Kensington and Rochester. Average realized
prices per ounce of silver and gold were $29.28 and $1,610,
respectively, in the second quarter, which were 25% lower and 7% higher,
respectively, than the second quarter of 2011. Silver contributed 63.2%
of the Company's total metal sales in the second quarter compared to
68.7% a year ago.

Prior to changes in working capital, Coeur generated $88.4 million in
operating cash flow¹ in the second quarter of 2012 compared
to $115.8 million a year ago. After working capital changes, the Company
generated net cash from operating activities of $113.2 million in the
second quarter of 2012 compared to $111.1 million in the second quarter
of 2011.

Consolidated cash operating costs¹ totaled $6.35 per silver
ounce for the first half of 2012 compared to $5.69 per silver ounce for
the first half of 2011. These higher unit cash operating costs¹ are
due primarily increased costs of consumables at San Bartolom? in 2012,
higher maintenance costs at Palmarejo, and higher costs at Rochester in
2012 due to the resumption of active mining late in 2011.

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. Second quarter 2012 adjusted earnings¹ were $28.0
million, or $0.31 per share. On a U.S. GAAP basis, the Company realized
net income of $23.0 million, or $0.26 per share, in the second quarter
compared with net income of $38.6 million, or $0.43 per share, in the
second quarter of 2011. The earnings reflect non-cash fair value
adjustments that increased net income by $16.0 million and decreased net
income by $12.4 million in the three months ended June ?30, 2012 and
2011, respectively. These fair value adjustments are driven primarily by
changing gold prices which impact the estimated future liabilities
related to the Palmarejo gold production royalty obligation.

On June 7, 2012, Coeur announced a share repurchase program of up to
$100 million of the Company's common stock. Since the end of the
quarter, the Company has finalized a $100 million, four-year revolving
credit facility and has provided notice to repay from existing cash the
remaining outstanding $68.0 million balance of the Kensington term loan
facility.

^{1. EBITDA, operating cash flow, adjusted earnings and cash
operating costs are non-GAAP measures. Please see tables in the Appendix
for reconciliation to U.S. GAAP. Total debt includes short and long-term
indebtedness and excludes capital leases and royalty obligations.}

Table 2: Operational Highlights: Production

Table 3: Operational Highlights: Cash Operating
Costs Per Ounce¹

Palmarejo, Mexico - Strong Cash Flow

• 
  Second quarter production totaled 2.4 million ounces of silver and
  31,258 ounces of gold, which was consistent with first quarter of 2012
  and second quarter 2011 production.
  
• 
  Cash operating costs¹ per silver ounce in the second
  quarter were $(0.85) compared to ($2.27) in the first quarter. Higher
  costs in the second quarter compared to first quarter 2012 and second
  quarter 2011 were primarily due to higher maintenance costs and to
  downtime related to a temporary work stoppage at the mine in May.
  
• 
  Sales and operating cash flow¹ totaled $136.4 million and
  $63.6 million, respectively, in the second quarter. Capital
  expenditures were $11.2 million.
  

San Bartolom?, Bolivia - Consistent Performance

• 
  Silver production totaled 1.5 million ounces in the second quarter;
  consistent with first quarter production.
  
• 
  Cash operating costs¹ per silver ounce were $11.05 compared
  to $10.21 in the first quarter. Lower ore grade impacted cash
  operating costs¹ per ounce.
  
• 
  Sales and operating cash flow¹ totaled $53.4 million and
  $24.8 million, respectively, in the second quarter. Capital
  expenditures were $7.8 million.
  

^{1. EBITDA, operating cash flow, adjusted earnings and cash
operating costs are non-GAAP measures. Please see tables in the Appendix
for reconciliation to U.S. GAAP. Total debt includes short and long-term
indebtedness and excludes capital leases and royalty obligations.}

Kensington, Alaska - Production Accelerating as Costs Drop

• 
  Second quarter production returned to full-scale, almost tripling over
  the first quarter to 21,572 ounces of gold.
  
• 
  Cash operating costs¹ per gold ounce declined 50% from the
  first quarter to $1,348 and are expected to reach $900 by year-end.
  
• 
  Sustainable production levels are now being achieved and all major
  improvement projects have been completed.
  
• 
  Sales and operating cash flow¹ totaled $21.1 million and
  $0.6 million, respectively, in the second quarter. Capital
  expenditures were $9.3 million.
  

Rochester, Nevada - Rising Production Levels and Lower Costs

• 
  Second quarter silver production increased over the first quarter by
  62% to 712,706 ounces and gold production increased 91% to 10,120
  ounces.
  
• 
  Cash operating costs¹ in the second quarter declined 58% to
  $9.83 per silver ounce compared to the first quarter.
  
• 
  Sales and operating cash flow¹ totaled $34.2 million and
  $11.8 million, respectively, in the second quarter. Capital
  expenditures were $2.9 million.
  

The Martha mine in the Santa Cruz province of Argentina has continued to
experience high operating costs and low production due to a short
remaining expected mine life after ten years of production since 2002.
The Company expects to cease active mining operations by September 30,
2012, and to commence reclamation activities after mining operations
have concluded. Employees affected by the cessation of mining operations
are expected to be placed with other mining companies in the region. As
previously disclosed, the Company is evaluating strategic and
operational alternatives for the Martha mine. As a result, the Company
recorded an impairment charge of $4.8 million in the second quarter.

Exploration Highlights

During the second quarter, the Company completed 60,292 meters (197,808
feet) of drilling and trenching in its exploration programs at
Palmarejo, Rochester, projects in Argentina, Kensington, San Bartolom?,
and the Carrizalillo prospect in Chile. Up to 17 drills were employed by
the Company during the second quarter. Coeur's exploration teams
received three awards from the International Society of Mine Safety
Professionals in recognition of their commitment to safety.

Donald J. Birak, Senior Vice President of Exploration for Coeur,
commented, 'On the exploration front, we are enthusiastic about the
results from drilling at Palmarejo. The Guadalupe deposit, which is
expected to be in production next year, continues to expand and remains
open at depth and to the northwest. A new target called La Blanca Norte
was defined during the second quarter near the existing Palmarejo
operation and it is planned to be aggressively drilled during the
remainder of 2012. In addition, we are pleased to announce completion of
an upgraded mineral resource estimate for the Joaquin silver-gold
project in southern Argentina. We are especially pleased with the safety
awards received by our teams in Mexico, Argentina and Chile,? Birak said.

Palmarejo

The Company completed 32,321 meters (106,040 feet) of exploration core
drilling in the Palmarejo district. This drilling was divided between
targets around the current Palmarejo mine and at the Guadalupe area
located approximately six kilometers from the Palmarejo mine.
Mineralization at Guadalupe has now been defined over a length of more
than 2.5 kilometers (+8,200 feet) from southeast to northwest and
remains open to the northwest and at depth. Since the last mineral
resource and reserve estimate for Guadalupe was prepared, 100 new core
holes have been completed and will be used to prepare a new model of
mineral resources and reserves at year-end. Surface drilling commenced
on the new La Blanca Norte zone situated immediately northwest of the
Palmarejo mill complex. A helicopter-borne geophysical (magnetics)
survey was completed over the Company's entire land holding, which is
helping to identify new drill targets.

^{1. EBITDA, operating cash flow, adjusted earnings and cash
operating costs are non-GAAP measures. Please see tables in the Appendix
for reconciliation to U.S. GAAP. Total debt includes short and long-term
indebtedness and excludes capital leases and royalty obligations.}

Kensington

Exploration at Kensington consisted of 4,534 meters (14,875 feet) of
core drilling. Nearly all of the drilling was devoted to infill drilling
of the Raven zone, which is located approximately 670 meters (2,200
feet) due west of the Kensington ore body. In addition, drilling
recommenced on the new Kensington South target where drilling
encountered veining and alteration similar to that of the main
Kensington mine with encouraging gold grades. A helicopter-borne
geophysical (magnetics) survey was conducted to help identify future
drill targets.

In addition, the Company completed 3,976 meters (13,045 feet) of
definition core drilling at Zone 10, which is expected to constitute a
major part of the mine plan for the next three years. Assay results from
85 new holes from independent laboratories showed multiple
gold-mineralized intervals, ranging from one foot to 34-feet true widths
and gold grades from a cutoff grade of 0.1 to over 6.0 ounces per ton.
The Company plans to use this data to update the mineral resources and
reserves of Zone 10.

Rochester

Drilling at Rochester totaled 14,548 meters (47,730 feet) in 252 holes
on the property. Over 80% of this drilling focused on existing Rochester
stockpile inventory with the remainder at Northwest Rochester.

San Bartolom?

One hundred new backhoe trenches were completed and sampled at San
Bartolom?. In the third quarter, trenching and sampling are planned to
shift to new targets due west of the current mining area.

Carrizalillo

An initial program of 3 core holes, totaling 1,328 meters (4,357 feet),
was completed at this prospect in north-central Chile. Three prominent
zones of hydrothermal alteration with anomalous precious metals detected
from past sampling were tested. Results are pending.

Joaquin

A total of 3,450 meters (11,319 feet) of drilling was completed at the
Joaquin joint venture property, located approximately 70 kilometers (43
miles) north of the Company's Martha mine, to complete infill drilling
at the La Negra and La Morocha deposits and test new targets on the
property. Data from this drilling, and drilling completed in the second
half of 2011, were used to update the 2011 resource estimates at La
Negra and La Morocha.

As a result, the August 2012 mineral estimate for Joaquin (shown in
table 4 below) reflects a 102% increase in contained silver ounces and
an 18% increase in contained gold ounces in measured and indicated
resources compared to the May 2011 mineral estimate. The estimated
silver and gold ounces contained in inferred resources were reduced from
May 2011 levels as material was upgraded from the inferred category to
measured and indicated categories. The August 2012 resource estimate
used metal prices of $30 per silver ounce and $1,500 per gold ounce
compared with $20 per silver ounce and $1,300 per gold ounce in May 2011.

The new mineral resource estimate incorporates results from 123 new core
drill holes (16,707 meters) designed to upgrade inferred mineral
resources in the May 2011 estimate to measured and indicated levels. In
addition to the new drilling, results from 43 drill holes (6,231 meters)
were received after the model was completed and are expected to be
incorporated into the next update in early 2013.

Table 4: Joaquin Project Mineral Resources
(100% Basis)

2012 Outlook

The Company expects to achieve the high-end of its production guidance
for 2012 of 18.5 - 20.0 million ounces of silver and 210,000- 230,000
ounces of gold, and the low-end of its cash operating costs¹
guidance for 2012 of $6.50 - $7.50 per silver ounce. Kensington's cash
operating costs¹ for the full year 2012 are expected to be
unchanged at $1,150 - $1,250 per gold ounce.

Table 5: 2012 Production Outlook

^{1. EBITDA, operating cash flow, adjusted earnings and cash
operating costs are non-GAAP measures. Please see tables in the Appendix
for reconciliation to U.S. GAAP. Total debt includes short and long-term
indebtedness and excludes capital leases and royalty obligations.}

Conference Call Information

Coeur will hold a conference call to discuss the Company's second
quarter 2012 results at 1 p.m. Eastern time on August 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 August 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,
operating costs, and expectations with respect to its Martha mine. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause Coeur's actual results,
performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among others, any
failure or delay in obtaining required governmental approvals, the risks
and hazards inherent in the mining business (including environmental
hazards, industrial accidents, weather or geologically related
conditions), changes in the market prices of gold and silver, the
uncertainties inherent in Coeur's production, exploratory and
developmental activities, including risks relating to permitting and
regulatory delays and disputed mining claims, any future labor disputes
or work stoppages, the uncertainties inherent in the estimation of gold
and silver ore reserves, changes that could result from Coeur's future
acquisition of new mining properties or businesses, reliance on third
parties to operate certain mines where Coeur owns silver production and
reserves, the loss of any third-party smelter to which Coeur markets
silver and gold, the effects of environmental and other governmental
regulations, the risks inherent in the ownership or operation of or
investment in mining properties or businesses in foreign countries,
Coeur's ability to raise additional financing necessary to conduct its
business, make payments or refinance its debt, 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 and Exhibit 99.2 to Coeur's Current
Report on Form 8-K filed June 25, 2012. 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. Current mineralized material estimates
include 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. 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 seven silver
and gold development companies in North and South America.