Silver and Gold Production from Coeur's New Mines and Record Metals Prices Combine to Deliver Record First Quarter Results

Coeur d′Alene Mines Corporation (NYSE:CDE) (TSX:CDM) today announced the
highest first quarter production, metal sales and cash flow in the
Company′s history.

First Quarter Highlights:

• 
  Net metal sales of $199.6 million.
  
• 
  $90.1 million in operating cash flow¹.
  
• 
  Adjusted earnings² of $37.5 million, or $0.42 per share.
  
• 
  4.1 million ounces of silver produced and 53,130 ounces of gold
  produced.
  
• 
  Average realized prices of $31.27 per ounce for silver and $1,374 per
  ounce for gold.
  
• 
  Cash operating costs of $8.36 per silver ounce³.
  
• 
  Working capital increased by $75.9 million to approximately $71.4
  million.
  
• 
  Initial mineral resources established at Joaquin project in Argentina
  of 19.7 million indicated ounces of silver and 48.0 million inferred
  ounces of silver.
  

'Building on the momentum from the fourth quarter of 2010 with our three
new, long-life precious metals mines, we are pleased to report another
strong quarter and expect consistent increases in production during the
remainder of 2011,? said Dennis E. Wheeler, Chairman, President and
Chief Executive Officer. 'With silver and gold prices expected to remain
strong despite recent volatility, we are anticipating 2011 to be the
Company′s best year ever by a wide margin with record cash flows driven
by 20 million ounces of silver production and 250,000 ounces of gold
production.?

'The expansion of mine life at our long-time flagship Rochester silver
and gold mine in Nevada is on schedule to add new production ounces
beginning in the fourth quarter. Similarly, our three new mines will
increase production levels throughout the year, which is why we are
comfortable maintaining our full-year production guidance,? Mr. Wheeler
added.

'We are also continuing with our expanded drilling programs on our large
property holdings surrounding our operating mines, and expect to develop
new reserves and resources for future production to further take
advantage of the current price environment.?

'In Bolivia, we are pleased that our rights have been again reconfirmed,
even in light of the prior misleading media reports, and that the
government at the highest levels has stated that the San Bartolom?ine
will remain under Coeur ownership. We continue to receive strong support
from government mining agencies, our unions and our partners in the
socially empowered mining Cooperatives in Potosi,? Mr. Wheeler added.

First quarter metal sales totaled $199.6 million, up 126.1% compared to
last year′s first quarter and down 4% compared to the prior quarter. The
year-over-year jump in metal sales was due to higher silver production
at both San Bartolom?nd Palmarejo during the first quarter and
significantly higher gold production since Kensington was not yet in
operation during last year′s first quarter. The decline in first quarter
metal sales compared to the fourth quarter of 2010 was due to expected
and temporarily lower silver production at Palmarejo and San Bartolom? and lower gold production at Kensington and Palmarejo.

The Company′s average realized silver and gold prices during the first
quarter were $31.27 and $1,374 per ounce. During last year′s first
quarter, Coeur′s average realized silver price was $16.84 per ounce and
average realized gold price was $1,104 per ounce. Sales of silver
contributed 56.4% of the Company′s total metal sales while the remainder
was derived from the sale of gold ounces.

Capital expenditures continued their downward trend by declining 40%
compared to the prior quarter to $15.9 million, leading to increased
free cash flow. Quarterly operating cash flow⁸ of $90.1
million represented a threefold increase compared to last year′s first
quarter and was down slightly from $99.4 million in the prior quarter.

Quarterly adjusted earnings totaled $37.5 million compared to $1.7
million in the first quarter of last year. Quarterly net income was
$12.5 million during the first quarter compared to ($12.9) million in
the first quarter of last year.

As of March 31^st, cash and equivalents totaled $64.4 million.
The Company′s working capital at March 31, 2011 increased by $75.9
million to approximately $71.4 million compared to a deficit of $4.5
million at December 31, 2010.

Total shares issued as of May 6^th were 89.5 million.

Operational Highlights⁹

In the first quarter, the Company produced 4.1 million ounces of silver
and 53,130 ounces of gold versus 4.8 million and 60,640 ounces of silver
and gold, respectively, in the prior quarter and 3.4 million and 25,782
ounces of silver and gold, respectively, during last year′s first
quarter.

Palmarejo (Mexico)

• 
  Palmarejo′s silver and gold production increased each month during the
  first quarter, a trend that continued in April with an all-time record
  for both silver and gold production.
  
• 
  Quarterly silver production of 1.7 million ounces while gold
  production totaled 27,759 ounces.
  
• 
  Average cash operating cost of $4.80 per silver ounce.
  
• 
  Quarterly metal sales of $88.2 million and operating cash flow of
  $44.4 million.
  

San Bartolom?Bolivia)

• 
  San Bartolom?roduced nearly 700,000 more silver ounces in the first
  quarter compared to last year′s first quarter and approximately
  300,000 less silver ounces compared to the fourth quarter mostly due
  to adverse weather conditions that hampered processing activities.
  
• 
  Quarterly silver production of 1.7 million ounces.
  
• 
  Average cash operating cost of $9.13 per ounce.
  
• 
  Quarterly metal sales of $46.3 million and operating cash flow of
  $32.2 million.
  

Kensington (Alaska)

• 
  Kensington′s gold production was slightly lower in the first quarter
  compared to the fourth quarter due to lower gold grades. Mining
  activities are now re-entering higher-grade ore zones, leading to
  higher expected gold production during the remainder of the year.
  
• 
  Quarterly gold production of 23,676 ounces.
  
• 
  Cash costs per ounce of $988.75
  
• 
  Quarterly metal sales of $48.1 million and operating cash flow of
  $13.9 million.
  

Rochester (Nevada)

• 
  Silver and gold production from residual leaching at Rochester
  declined during the first quarter as planned. Construction of the new
  leach pad is on-schedule and new silver and gold production is
  anticipated in the fourth quarter.
  
• 
  Produced 333,696 silver ounces and 1,451 gold ounces.
  
• 
  Quarterly metal sales of $14.3 million and operating cash flow of $3.4
  million.
  
• 
  Cash operating costs were $10.28 per silver ounce in the first quarter.
  
• 
  Drilling on new areas of mineralization set to commence during the
  second quarter.
  

Exploration Highlights

Joaquin (Argentina)

Through work done from November 2006 to year-end 2010, and total
exploration costs of $6.9 million, the Company has established initial
indicated mineral resources of 19.7 million contained ounces of silver
and 36,000 contained ounces of gold and inferred mineral resources of
48.0 million silver and 42,000 ounces of gold at the Joaquin project
located in the Santa Cruz Province of Argentina approximately seventy
kilometers north of the Company′s Martha mine via all weather-gravel
road. At the end of 2010, Coeur had met its obligations to have earned a
managing 51% interest in the Joaquin joint venture.

Effective April 2010 metal prices used were US$20 /oz Ag and US$1,300
oz/Au.

Oxide mineral resources estimated using a cut off grade of
33 g/t Ag Eq and sulfide mineral resources with a cut off of 51.9 g/t Ag
Eq. within Whittle ®-estimated, surface mine, scoping level parameters.

Ag
Eq (silver equivalent) = AU grade in grams per tonne times 65+ Ag grade
in grams per tonne.

Mineral resources estimated by the consulting
firm of NCL Ingeniería y Construcción Ltda. in Santiago, Chile.

Mineral
resources that are not mineral reserves have not demonstrated economic
viability.

Coeur is actively engaged in expanding the mineral resources at Joaquin,
explore for new mineralization and commence further technical work that
will result in the completion of a feasibility study, which will lift
the Company′s managing joint venture interest from 51% to 61%.

Palmarejo (Mexico)

The Company completed over 9,900 meters (32,500 feet) of core drilling
in 28 new holes in the quarter to discover new silver and gold
mineralization and define new mineral reserves. This exploration work
concentrated primarily on drilling around the Palmarejo mine from both
surface and underground platforms with 21 new cores holes; the majority
of which was completed at the Tucson and Chapotillo zones in the current
Palmarejo surface mine area. Many assay results are pending, but
positive results were received from Tucson and a new target, La
Virginia, immediately north of the surface mine.

Kensington (Alaska)

Exploration at Kensington consisted of 1,430 meters (4,691 feet) of core
drilling to discover new mineralization and expand mineral reserves. The
main focus of this drilling was on the Raven structure, a prominent
gold-bearing quartz vein and vein splay system situated about 650 meters
(2,100 feet) west of the current Kensington mining area. Several
high-grade intercepts were encountered in this drilling. At the end of
the quarter, new drilling commenced on a similar, quartz vein target,
Comet, located south of Raven.

Conference Call Information

Coeur will hold a conference call to discuss the Company's first quarter
2011 results at 1:00 p.m. Eastern time on May 9, 2011. To listen live
via telephone, call (877) 464-2820 (US and Canada) or (660) 422-4718
(International). The conference ID number is 62334995. 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 May 16, 2011. The replay
dial-in numbers are (800) 642-1687 (US and Canada) and (706) 645-9291
(International) and the access code is 62334995. In addition, the call
will be archived for a limited time on the Company′s web site.

Cautionary Statement

This press 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 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 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 NI 43-101, supervised 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 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/edgar.shtml.

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 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 three new, large
precious metals mines generating significantly higher production, sales
and cash flow in continued strong metals markets. In 2011, Coeur will
realize the first full year of production and cash flow from all three
of its new, 100%-owned mines: the San Bartolom?ilver mine in
Bolivia,  the Palmarejo silver/gold mine in Mexico, and
the  Kensington  gold mine in Alaska. In addition, the Company is
expecting new production from its long-time flagship Rochester mine in
Nevada in the fourth quarter of 2011. The Company also owns a
non-operating interest in a  low-cost mine in Australia,
and  conducts  ongoing exploration activities near its operations in
Argentina, Mexico  and Alaska

Photos of projects and other information can be accessed through the
Company′s website at www.coeur.com.

¹ Operating cash flow is a non-U.S. GAAP measure defined as
net income plus depreciation, depletion and amortization and other
non-cash items prior to changes in operating assets and liabilities. On
a U.S. GAAP basis, the Company generated $35.8 million of cash flow from
operations during the first quarter. See the reconciliation from
non-U.S. GAAP to U.S. GAAP at the end of this news release.

² Adjusted earnings is a non-U.S. GAAP measure defined as
operating income plus interest and other income less interest expense
and current taxes. Adjusted earnings excludes non-cash fair value
adjustments, other non-cash adjustments, deferred taxes and discontinued
operations. The Company realized net income of $12.5 million in the
first quarter. See reconciliation between non-U.S. GAAP adjusted
earnings and U.S. GAAP at the end of this news release.

³ Cash operating costs is a non-U.S. GAAP measure defined as
cash costs less production taxes and royalties if applicable. See
reconciliation between non-U.S. GAAP adjusted earnings and U.S. GAAP at
the end of this news release.

⁴ EBITDA is a non-U.S. GAAP measure defined as earnings
before interest, taxes, depreciation and amortization. A reconciliation
of this measure to U.S. GAAP is provided at the end of this news release.

⁵ Adjusted earnings is a non-U.S. GAAP measure defined as
operating income plus interest and other income less interest expense
and current taxes. Adjusted earnings excludes non-cash fair value
adjustments, other non-cash adjustments, deferred taxes and discontinued
operations. The Company realized net income of $12.5 million in the
first quarter. See reconciliation between non-U.S. GAAP adjusted
earnings and U.S. GAAP at the end of this news release.

⁶ Operating cash flow is a non-U.S. GAAP measure defined as
net income plus depreciation, depletion and amortization and other
non-cash items prior to changes in operating assets and liabilities. On
a U.S. GAAP basis, the Company generated $35.8 million of cash flow from
operations during the first quarter. See the reconciliation from
non-U.S. GAAP to U.S. GAAP at the end of this news release.

⁷ Includes short and long-term indebtedness; excludes capital
leases, royalty obligations and Mitsubishi gold lease facility.

⁸ Operating cash flow is a non-U.S. GAAP measure defined as
net income plus depreciation, depletion and amortization and other
non-cash items prior to changes in operating assets and liabilities. On
a U.S. GAAP basis, the Company generated $35.8 million of cash flow from
operations during the first quarter. See the reconciliation from
non-U.S. GAAP to U.S. GAAP at the end of this news release.

⁹ For additional operating statistics by mine, please refer
to the tables located at the end of this news release.

Excluding changes in operating assets and liabilities, the Company′s
operating cash flow consisted of the following (in thousands):

Reconciliation of EBITDA to net income (loss) is shown below (in
thousands):

Reconciliation of adjusted earnings to net income (loss) is shown below
(in thousands):

The following table presents production information by mine and
consolidated sales information for the years ended December 31:

Reconciliation of Non-GAAP Cash Costs to GAAP Production Costs

The following table presents a reconciliation between non-GAAP cash
operating costs per ounce and cash costs per ounce to production costs
applicable to sales including depreciation, depletion and amortization,
calculated in accordance with U.S. GAAP.

Total cash costs include all direct and indirect operating cash costs
related directly to the physical activities of producing metals,
including mining, processing and other plant costs, third-party refining
and marketing expense, on-site general and administrative costs,
royalties and mining production taxes, net of by-product revenues earned
from all metals other than the primary metal produced at each unit. Cash
operating costs include all cash costs except production taxes and
royalties if applicable. Total cash costs and cash operating costs are
performance measures which we believe provide management and investors
with an indication of net cash flow, after consideration of the realized
price received for production sold. Management also uses these
measurements for the comparative monitoring of performance of our mining
operations period-to-period from a cash flow perspective. 'Cash
operating costs per ounce? and 'Total cash costs per ounce? are measures
developed by precious metals companies in an effort to provide a
comparable standard, however, there can be no assurance that our
reporting of these non-GAAP measures are similar to that reported by
other mining companies. Cash operating costs and total cash costs, as
alternative measures, have the limitation of excluding potentially large
amounts related to inventory adjustments, non-cash charges and byproduct
credits. Management compensates for this limitation by using both the
GAAP production costs and the non-GAAP cash costs metrics in its
planning.

Production costs applicable to sales including depreciation, depletion
and amortization, is the most comparable financial measure calculated in
accordance with GAAP to total cash costs. The sum of the production
costs applicable to sales and depreciation, depletion and amortization
for our mines as set forth in the tables below is included in our
Consolidated Statements of Operations and Comprehensive Income.

The Palmarejo gold production royalty is currently reflected as a
minimum royalty obligation which commenced on July 1, 2009 and ends when
payments have been made on a total of 400,000 ounces of gold, at which
time a royalty expense will be recorded.

(1) Amounts reflect final metal settlement adjustments.