Coeur′s Exploration Program at Kensington Gold Mine Returning Favorable Results

Coeur d′Alene Mines Corporation (NYSE:CDE) (TSX:CDM) (ASX:CXC) today
reported that its exploration drilling program at the newly opened
Kensington Gold Mine in Alaska has been returning favorable results
through the first eight months of this year, with the exploration of new
targets continuing.

The Horrible vein system, which is located about 1,500 feet to the west
of the main Kensington mine, remains open at depth and on-strike and is
easily accessed from existing underground infrastructure. This year′s
program is the first exploration activity at Horrible since 1992 and is
situated at the north end of a +14,000-foot long, northeast-trending
structural and vein belt that contains Kimberly, discovered last year,
Jualin and several other gold-bearing quartz veins located west of the
operating mine.

Favorable results were obtained from many drill holes (see tables
included in this release for recent drill results from 25 of the 35 core
holes), including:

• 
  6.5 feet of 2.39 gold ounces per short ton from core hole H10-016;
  
• 
  3.9 feet at 0.907 ounces per short ton of gold from core hole H10-029;
  and
  
• 
  3.5 feet of 1.069 ounces per short ton of gold from core hole H10-031
  

Many of the drill holes cut multiple quartz veins which are typical of
the style of mineralization seen at the nearby Kensington ore body. The
Company will be conducting additional exploration drilling to test the
greater extension of the dip and strike, both of which remain open for
expansion, and commence in-fill drilling on higher-grade zones defined
by wide-spaced exploration drilling to-date.

The Kensington gold mine, which began production in late June, is
expected to produce approximately 50,000 ounces of gold this year and
average approximately 125,000 ounces of annual gold production over an
initial 12.5 year life based on current reserves of 1.5 million ounces.
Cash costs are expected to average approximately $490 per ounce over the
mine life.

About Coeur

Coeur d'Alene Mines Corporation is one of the world's leading silver
companies and also a growing gold producer. Coeur is also a recognized
leader in environmental stewardship and worker safety, with 13 national
and international awards earned over the past year. The Company′s three
new long-life mines include the San Bartolom?ilver mine in Bolivia
which began operations in 2008, the Palmarejo silver/gold mine in
Mexico, which began operations in 2009, and the Kensington gold mine in
Alaska, which began production in June of this year. The Company also
owns underground mines in Argentina and one surface mine in Nevada, and
owns a non-operating interest in a low-cost mine in Australia. The
Company conducts exploration activities in Alaska, Argentina and Mexico.
Coeur common shares are traded on the New York Stock Exchange under the
symbol CDE, and the Toronto Stock Exchange under the symbol CDM, and its
CHESS Depositary Interests are traded on the Australian Securities
Exchange under symbol CXC.

Cautionary Statement

This press release contains forward-looking statements within the
meaning of securities legislation in the United States, Canada, and
Australia, 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 schedules, currency exchange rates, and the
completion and/or updating of mining feasibility studies, changes that
could result from future acquisitions of new mining properties or
businesses, the risks and hazards inherent in the mining business
(including environmental hazards, industrial accidents, weather or
geologically related conditions), regulatory and permitting matters,
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 SEC, the Canadian securities regulators, and the Australian
Securities Exchange, 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, is the
qualified person responsible for the preparation of the scientific and
technical information concerning Coeur's mineral projects in this
presentation. For a description of the key assumptions, parameters and
methods used to estimate mineral reserves and resources, as well as 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 and Australian 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/edgar.shtml.

Kensington Notes:

• 
  Drill intercepts from 955 whole-core, HQ-sized core samples analyzed
  at Inspectorate America Labs in Sparks, Nevada, USA.
  
• 
  Drill intercepts calculated at 0.05 ounces per short ton (oz/t) Au
  cutoff. 'Includes? calculated at 0.100 oz/ton cutoff.
  
• 
  Maximum of 5 feet of internal dilution (less than cutoff) permitted in
  compositing.
  
• 
  All values uncapped.
  
• 
  Internal QAQC checks performed at Inspectorate America Corp.
  (Assayers), Sparks, Nevada, USA, consisting of 55 duplicates and 57
  standards, 54 of which assayed within acceptable ranges and 38 blanks,
  37 of which assayed below the detection limits for gold. Samples
  that fell outside of acceptable limits (4) have not been included in
  the summary data and are being re-examined with further fire assay
  analyses.
  

Coeur d′Alene Mines Corporation

Investors

Director of
Investor Relations

Deborah Schubert, 208-665-0332

Media

Director
of Corporate Communications

Tony Ebersole, 2