Coeur Reports Fourth Quarter and Full-Year 2013 Results

Coeur Mining Inc. (the “Company” or “Coeur”) (NYSE: CDE, TSX: CDM) reported 2013 metal sales of $746.0 million, adjusted earnings¹ of ($76.2) million, and cash flow from operating activities of $113.5 million ($149.8 million before changes in operating assets and liabilities). Capital expenditures declined 13% from 2012 to $100.8 million. All-in sustaining costs¹ per silver equivalent ounce were $18.94. The Company realized average metal prices of $23.14 per silver ounce and $1,387 per gold ounce during 2013, which were 25% and 17% lower, respectively, than during 2012.

Fourth quarter metal sales totaled $168.8 million, adjusted earnings¹ were ($25.1) million, and cash flow from operating activities was $10.4 million ($39.4 million before changes in operating assets and liabilities). Capital expenditures declined 14% compared to the third quarter to $28.1 million. All-in sustaining costs¹ per silver equivalent ounce were $16.92, which was a 12% decline from the third quarter. The Company realized average metal prices of $20.54 per silver ounce and $1,249 per gold ounce during the fourth quarter of 2013, which were 2% and 6% lower, respectively, than during the third quarter.

2013 Fourth Quarter and Full-Year Highlights

• Full-year 2013 silver production totaled 17.0 million ounces, a 6% decrease from 2012. Full-year gold production was a record 262,217 ounces, up 16% from 2012
• Fourth quarter production totaled 4.3 million ounces of silver and 80,780 ounces of gold, increases of 3% and 27%, respectively, from the third quarter 2013
• Full-year cash operating costs¹ were $9.84 per silver ounce and $950 per gold ounce at Kensington
• Year-end silver proven and probable reserves increased 15.9% to 255.4 million ounces. Year-end gold proven and probable reserves increased 12.3% to 2.2 million ounces
• Acquired Orko Silver Corp., adding the La Preciosa silver-gold project in Mexico to the Company's growth profile
• Created Coeur Capital and acquired Global Royalty Corp. to add higher-margin cash flow from a growing portfolio of royalty and streaming interests
• Repurchased $27.6 million in common stock
• Implemented downside metal price protection program

2014 Outlook

• Expected production of 17.0 - 18.2 million silver ounces and 220,000 - 238,000 gold ounces
• Production costs applicable to sales are expected to total $500 - $530 million
• Capital expenditures are expected to total $65 - $80 million, with approximately 80% allocated to sustaining capital, 5% to development capital, and 15% to capitalized exploration
• Expensed exploration is expected to be $13 - $18 million, using a success-based approach to fund additional expensed or capitalized drilling based on positive results
• General and administrative expenses are expected to be $43 - $48 million
• Amortization expenses are expected to be approximately $150 million, which reflects a $773 million impairment charge recorded on the carrying values of Palmarejo and Kensington in the fourth quarter 2013

Mitchell J. Krebs, Coeur's President and Chief Executive Officer, said, "2013 was a year of transition for the mining industry and for Coeur. Our new team is beginning to execute more effectively and our results reflect these efforts. I’m especially proud to say our employees are delivering these results while achieving record safety performance. Our all-in sustaining costs¹ dropped 12% to $16.92 per silver ounce in the fourth quarter. Three of our four mines are operating consistently and we expect our fourth mine - the Rochester mine in Nevada - to join them by delivering a strong 2014 after a weaker than planned fourth quarter.

"In August of 2013, we outlined our efforts to maximize net cash flow by targeting four key drivers - revenue enhancements, cost reductions, capital spending reductions, and working capital improvements. Our team has been successful in all four areas and our efforts are ongoing. We completed expansions at San Bartolomé and Rochester in order to increase production levels and revenues. We successfully re-sequenced higher-grade stopes at Kensington to boost grades, which led to higher production levels and lower unit costs during the second half of 2013. We managed to reduce our 2013 operating costs by $27 million compared to plan and also reined in exploration spending by $6 million during the second half of last year. In similar fashion, we reduced our capital expenditures by 13% to $100.8 million in 2013, which was 24% lower than our original full-year guidance and we expect to further reduce capital spending levels during 2014 to below $80 million. We also managed to unlock $14.6 million in working capital by reducing supplies and materials inventory levels and an additional $26.4 million of cash by modifying certain bonding arrangements.

“During 2014, we are committed to achieving and sustaining operating consistency, identifying additional cost and process efficiencies to maximize margins, enhancing the quality and mix of our portfolio of assets, and maximizing the returns on every dollar of capital deployed for acquisitions, internal projects, exploration, and in every line item of our capital budget.”

Liquidity

Cash, equivalents, and short-term investments totaled $206.7 million at December 31, 2013. Coeur also maintains a $100 million revolving credit facility, which remains undrawn. During January 2014, the Company amended certain financial covenants with its lender group to provide adequate flexibility given lower metals prices.

Financial Results

Coeur's non-U.S. GAAP metric of adjusted earnings¹ were $(25.1) million, or $(0.25) per share, in the fourth quarter 2013, compared with $(23.4) million, or $(0.23) per share, in the third quarter 2013. Fourth quarter adjusted earnings¹ exclude a $772.8 million impairment charge on the carrying values of Palmarejo and Kensington, an $18.9 million negative fair value adjustment, and a $194.9 million deferred tax benefit. The fourth quarter deferred tax benefit included $179.8 million related to the asset impairment charge and $81.9 million related to the Company's position to be permanently reinvested in Mexico. These deferred tax benefits were partially offset by an $80.3 million deferred tax expense related to the new Mexican tax legislation. Third quarter adjusted earnings¹ excluded a positive fair value adjustment of $18.9 million. Fair value adjustments are primarily driven by changes to gold and silver prices, which change the estimated future liabilities for the Palmarejo gold production royalty and the Rochester 3.4% NSR royalty.

For the full year, adjusted earnings of $(76.2) million, or $(0.78) per share compares to $122.1 million or $1.37 per share in 2012. On a U.S. GAAP basis, the Company realized a net loss of $(581.5) million, or $(5.77) per share, in the fourth quarter 2013 compared with net loss of $(46.3) million, or $(0.46) per share, in the third quarter 2013. Full-year 2013 net loss of $(650.6) million, or $(6.65) per share compares to net income of $48.7 million, or $0.54 per share in 2012.

Cash flow from operating activities was $10.4 million in the fourth quarter 2013 compared to $26.8 million in the third quarter 2013 due to a $29.0 million increase in operating assets and liabilities, including an $18.6 million increase in inventory and $3.5 million decrease in accounts payable and accrued expenses. Full-year cash flow from operating activities was $113.5 million in 2013 compared to $271.6 million in 2012. Before changes in operating assets and liabilities, full-year 2013 cash flow from operating activities of $149.8 million compares to $338.7 million in 2012.

Downside Price Protection

The Company extended its downside metal price exposure protection on 1.25 million ounces of expected quarterly silver production and 25,000 ounces of expected quarterly gold production through the third quarter 2014 by purchasing put options with strike prices of $18.00/oz of silver and $1,200/oz of gold. This hedging strategy is designed to mitigate the cash flow impact of a short-term drop in precious metal prices while maintaining significant upside exposure to metal prices.

New Cost Measures

To provide greater cost transparency and to be consistent with industry disclosure standards to facilitate comparability with Coeur's peers, the Company now reports its costs applicable to sales¹ per ounce and all-in sustaining costs¹. The Company will convert the benefit from selling gold into silver equivalent ounces (silver to gold ratio of 60 to 1) for purposes of evaluating the operating performance of the Company. The Company's all-in sustaining costs¹ are shown in Table 4 for 2013. Costs applicable to sales per silver equivalent ounce (per gold ounce for Kensington) are shown in Tables 5-8 and Table 10. The Appendix includes a reconciliation of all non-GAAP financial cost measures to U.S. GAAP.

Operations

Highlights of the fourth quarter and full-year 2013 results for each of the Company's mining operations are provided below. Silver equivalent ounces assume a silver to gold ratio of 60 to 1.

• Palmarejo produced 2.0 million ounces of silver and 35,487 ounces of gold at cash operating costs of $0.65 per silver ounce¹ for the fourth quarter. For the full year, Palmarejo produced 7.6 million ounces of silver and 116,536 ounces of gold at cash operating costs¹ of $2.23 per silver ounce.
• Silver and gold ore grades improved substantially for the underground operations in the fourth quarter and remained consistent with the third quarter 2013 in the open pit operations.
• Recovery rates decreased compared to the third quarter 2013; however, higher recoveries are expected in 2014 as a result of processing plant improvements expected to be completed in the first quarter.
• Coeur continues to evaluate potential production increases to offset production previously planned from the Guadalupe underground deposit in 2014. The Company believes potential exists to define additional near-term, higher-margin production adjacent to the existing underground and open pit operations.
• Cash flow from operating activities totaled $16.6 million in the fourth quarter, compared to $50.8 million in the third quarter 2013. The decrease was primarily due to fewer ounces sold as well as a $13.4 million increase in working capital. The third quarter cash flow from operating activities for Palmarejo benefited from a $11.2 million decrease in working capital.
• Capital expenditures of $8.9 million were incurred at Palmarejo in the fourth quarter 2013, primarily for underground mine development.

• San Bartolomé produced 1.5 million ounces of silver at cash operating costs¹ of $13.11 per silver ounce for the fourth quarter, which was comparable to the third quarter 2013, with higher throughput offsetting a decline in silver grade. For the full year, San Bartolomé produced 5.9 million ounces of silver at cash operating costs¹ of $13.01 per silver ounce.
• Performance during the fourth quarter and 2013 remained consistent, as does the 2014 outlook for tons mined, ounces produced, and silver grade.
• Cash flow from operating activities totaled $8.9 million in the fourth quarter, slightly higher than $7.6 million in the third quarter 2013.
• Capital expenditures were $3.7 million during the fourth quarter 2013 primarily related to the tailings and process plant expansion projects.

• Kensington produced 37,404 ounces of gold, an increase of 29% from the third quarter 2013 due to 30% higher average head grade. Cash operating costs¹ per gold ounce were $747, 24% below the third quarter 2013.
• Full-year 2013 production rose 40% from 2012 to a record 114,821 gold ounces. Full-year 2013 cash operating costs¹ were $950 per ounce, a 30% decrease from 2012.
• Increased mill throughput is expected to offset declines in grade in 2014, and is expected to lead to another year of strong production and cash flow at Kensington.
• Cash flow from operating activities totaled $11.3 million in the fourth quarter, a significant increase compared to the $1.9 million in the third quarter 2013 due to higher metal sales.
• Capital expenditures of $5.7 million in the fourth quarter were spent primarily on underground capital development and reserve drilling.

• Rochester produced 712,235 ounces of silver and 7,890 ounces of gold in the fourth quarter, an increase of 20% and 64%, respectively, compared to the third quarter 2013.
• Cash operating costs¹ per silver ounce were $31.71 in the fourth quarter, 13% lower than the third quarter 2013 but remain above planned levels due to lower than expected production following the placement of substantial tons of fresh ore under leach on the recently expanded Stage III leach pad. For the full year, cash operating costs¹ per silver ounce were $23.27.
• Major capital projects at Rochester are now complete and are expected to drive further production growth and lower per unit costs in 2014.
• Cash flow from operating activities of $(9.7) million in the fourth quarter 2013 is less than the $(3.6) million in the third quarter 2013 due to an increase in working capital of $13.0 million, including a $10.2 million increase in ore mined and placed under leach during the fourth quarter.
• Capital expenditures were $7.2 million during the fourth quarter 2013, primarily for completion of the leach pad expansion.

La Preciosa, Mexico

• Coeur is continuing work on a feasibility study and continues infill and development drilling. Upon completion of this work in mid-2014, the Company will evaluate the economics of the optimized project, assess the silver and gold market, and determine whether to proceed with construction.
• Feasibility work to date indicates expected improved economics compared to those reflected in the preliminary economic assessment with the goal of making La Preciosa a project with solid returns, despite lower prices and higher expected taxes based on new Mexican mining tax legislation that took effect on January 1, 2014.
• The Company spent $1.4 million during the fourth quarter 2013 and remains on budget to spend a total of $25 million for the feasibility work, including exploration activities, engineering and design, land purchases, and sustainability projects within the community.

Exploration

Costs associated with exploration activities for the fourth quarter 2013 were $5.4 million (expensed) for discovery of new silver and gold mineralization and $2.0 million (capitalized) for definition and expansion of discoveries, for a total of $7.4 million. Coeur's exploration program used nine drill rigs during the fourth quarter: four drills at Palmarejo, four at Kensington, and one at Rochester. This work resulted in completion of over 120,646 feet (36,773 meters) of combined core and reverse circulation drilling.

For 2013, total exploration expenditures were $34.0 million, well below original guidance of $40 million for the full year. Total exploration expenditures for 2014 are expected to be $23 - $28 million, including approximately $10 million in capitalized drilling, with a focus on resource conversion. The Company plans to use a success-based approach to evaluate exploration needs on an ongoing basis during 2014.

2014 Production Outlook

Coeur's 2014 silver and gold production guidance remains unchanged as shown in Table 5 below, and compares to 2013 silver production of 17.0 million ounces and gold production of 262,217 ounces.

Conference Call Information

Coeur will conduct a conference call and webcast at www.coeur.com to discuss the Company's fourth quarter and full-year 2013 results on February 20, 2014 at 11:00 a.m. Eastern time.

A replay of the call will be available on Coeur's website through March 6, 2014.

About Coeur

Coeur Mining is the largest U.S.-based primary silver producer and a significant gold producer. The Company has four precious metals mines in the Americas generating strong production, sales and cash flow in continued robust metals markets. Coeur produces from its wholly owned operations: the Palmarejo silver-gold mine in Mexico, the San Bartolomé silver mine in Bolivia, the Rochester silver-gold mine in Nevada and the Kensington gold mine in Alaska. The Company also has a non-operating interest in the Endeavor mine in Australia in addition to net smelter royalties on the Cerro Bayo mine in Chile, the El Gallo complex in Mexico, and the Zaruma mine in Ecuador. In addition, the Company has two silver-gold feasibility stage projects - the La Preciosa project in Mexico and the Joaquin project in Argentina. The Company also conducts ongoing exploration activities in Alaska, Argentina, Bolivia, Mexico, and Nevada. The Company owns strategic investment positions in eight silver and gold development companies with projects in North and South America.

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 production, costs, expenses, capital and exploration expenditures, exploration and development efforts, expectations regarding the La Preciosa silver-gold project, recovery rates and initiatives to minimize exposure to declining metal prices, enhance revenues, reduce costs and capital expenditures, improve working capital, further achieve and sustain operating excellence, identify cost and process efficiencies to maximize margins, enhance the quality of our portfolio, and maximize returns. 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, the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), changes in the market prices of gold and silver and a sustained lower price environment, the uncertainties inherent in Coeur's production, exploratory and developmental activities, including risks relating to permitting and regulatory delays, ground conditions, grade variability, 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 and the absence of control over mining operations in which Coeur or its subsidiaries hold royalty or streaming interests and risks related to these mining operations including results of mining and exploration activities, environmental, economic and political risks of the jurisdiction in which the mining operations are located, 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 most recent 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.

W. David Tyler, Coeur's Vice President, Technical Services and a qualified person under Canadian National Instrument 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 adjusted earnings, all-in sustaining costs, costs applicable to sales, and cash operating costs. 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 adjusted earnings, all-in sustaining costs, costs applicable to sales, and cash operating costs are important measures in assessing the Company's overall financial performance.