Coeur Reports Record Second Quarter and First Half Results

Coeur d′Alene Mines Corporation (NYSE:CDE) (TSX:CDM) today announced
record quarterly metal sales of $231.1 million and operating cash flow¹
of $115.8 million. The Company′s strong second quarter results were led
by its Palmarejo silver and gold mine in Mexico, which produced a record
2.4 million ounces of silver and 33,389 ounces of gold.

2^nd Quarter 2011 Highlights:

• 
  Record net metal sales of $231.1 million represents 16% increase over
  prior quarter and is 129% higher than last year′s second quarter
  
• 
  Record $115.8 million of operating cash flow¹ represents
  29% jump over prior quarter and 425% increase over last year′s second
  quarter
  
• 
  Adjusted earnings² of $58.0 million, or $0.65 per share,
  versus an adjusted loss of ($8.9) million, or ($0.10) per share during
  last year′s second quarter
  
• 
  Silver production of 4.8 million ounces, up 16% compared to prior
  quarter and 15% over last year′s second quarter
  
• 
  Record gold production of 60,656 ounces, up 14% over prior quarter and
  162% compared to last year′s second quarter
  
• 
  Consolidated cash operating costs of $3.39 per silver ounce³,
  down 59% compared to prior quarter and 58% versus last year′s second
  quarter
  
• 
  Average realized prices of $39.11 per ounce of silver and $1,504 per
  ounce of gold
  
• 
  Cash and equivalents were $106.8 million at June 30, 2011, up 159%
  from June 30, 2010
  

First Six Months 2011 Highlights:

• 
  Record net metal sales of $430.7 million represents 128% increase over
  first six months of 2010
  
• 
  Record operating cash flow of $206.0 million up 314% compared to first
  six months of 2010
  
• 
  Adjusted earnings² of $95.6 million, or $1.07 per share
  compared to an adjusted loss of ($7.2) million, or ($0.08) per share
  during the first six months of 2010
  
• 
  Silver production of 8.9 million ounces, up 17% versus the first six
  months of 2010
  
• 
  Gold production of 113,786 ounces, up 133% over first six months of
  2010
  
• 
  Consolidated cash operating costs of $5.69 per silver ounce³,
  down 27% versus first six months of 2010
  
• 
  Average realized prices of $35.42 per ounce of silver and $1,430 per
  ounce of gold
  

2011 Outlook:

• 
  Anticipating full-year production of 19.5 million ? 20.5 million
  ounces of silver and 240,000 - 250,000 ounces of gold. Higher
  production levels are expected in the fourth quarter from Rochester,
  San Bartolom?nd Martha.
  
• 
  Kensington is expected to slightly increase its gold production during
  the second half compared to the first six months of 2011, resulting in
  lower cash operating costs per gold ounce.
  
• 
  Expecting full-year net metal sales of approximately $1.0 billion and
  operating cash flow in excess of $500.0 million based on price
  assumptions of $35.09 per ounce of silver and $1,426 per ounce of gold
  (first half 2011 average spot prices).
  
• 
  Expecting capital expenditures for 2011 to total $130 million-$140
  million. A total of $42 million of which was spent during the first
  six months of the year. Projected capital expenditures are higher than
  the previous estimate of $120 million due to additional capital
  projects at Kensington that are expected to enhance productivity and
  reduce costs.
  
• 
  Forecasting average full-year cash operating costs of approximately
  $5.75 per ounce of silver and approximately $850 per ounce of gold at
  Kensington.
  
• 
  Increasing second half exploration expenditures by 67% to
  approximately $14.0 million to accelerate drilling activities at
  Palmarejo, Rochester and Joaquin due to ongoing positive results.
  

'Our second quarter performance reflects record high production and
record low costs per ounce at Palmarejo, another consistent quarter at
San Bartolom?and steady progress at Kensington,? said Mitchell J.
Krebs, Coeur′s newly appointed President and Chief Executive Officer.
'Overall, we feel comfortable that full-year 2011 silver production will
reach 19.5 million to 20.5 million ounces and gold production will be
240,000 to 250,000 ounces.?

'As we continue focusing on operational consistency at our new, large
mines, we are also pursuing new internal and external growth initiatives
that will create value for shareholders. Our Rochester silver and gold
mine in Nevada is one such opportunity. We have now resumed active
mining and expect to generate additional silver and gold ounces in the
fourth quarter from a newly constructed leach pad. Rochester offers
opportunity for further high-return growth beyond this initial
expansion, which we are actively pursuing,? Mr. Krebs said.

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 cash flow from operations of
$111.1 million in the second quarter of 2011 and $146.9 million in the
first six months of 2011. 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 exclude non-cash fair value
adjustments, other non-cash adjustments, deferred taxes and discontinued
operations. The Company realized net income of $38.6 million in the
second quarter of 2011 and $51.1 million during the first six months of
2011. 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. Consolidated cash operating costs per
silver ounce are net of gold by-product credit and represent the
consolidation of all Coeur′s mines except for Kensington, which is a
primary gold mine and reports cash operating costs per gold ounce.

Second quarter 2011 metal sales totaled $231.1 million, up 129% compared
to last year′s second quarter and up 16% compared to the prior quarter.
This year-over-year increase is mostly due to record silver and gold
production from Palmarejo, gold production from Kensington (which was
not yet in operation during last year′s second quarter), and higher
silver and gold prices.

The Company realized average silver and gold prices during the second
quarter of $39.11 and $1,504 per ounce, representing increases of 111%
and 28%, respectively, compared to last year′s second quarter. Sales of
silver contributed 69% of the Company′s total metal sales during the
recent quarter while the remainder was derived from the sale of gold.

Adjusted earnings² in the second quarter were $58.0 million,
or $0.65 per share, compared to an adjusted loss of $8.9 million, or
($0.10) per share in the second quarter of 2010. Second quarter 2011 net
income was $38.6 million, or $0.43 per share compared to a net loss of
$50.7 million, or ($0.57) per share in the second quarter of 2010.

Second quarter operating cash flow¹ of $115.8 million
represented a five-fold increase compared to the second quarter of 2010
and a 26% increase over the prior quarter.

Capital expenditures totaled $25.8 million during the second quarter,
43% lower than last year′s second quarter, during which construction at
Kensington was nearing completion.

Cash and equivalents were $106.8 million at June 30, 2011.

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 cash flow from operations of $111.1 million
in the second quarter of 2011 and $146.9 million in the first six months
of 2011. 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 exclude non-cash fair value adjustments, other
non-cash adjustments, deferred taxes and discontinued operations. The
Company realized net income of $38.6 million in the second quarter of
2011 and $51.1 million during the first six months of 2011. 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 Includes short and long-term indebtedness; excludes capital leases,
royalty obligations and Mitsubishi gold lease facility.

6 For additional operating statistics by mine, please refer to the
tables in the Appendix of this news release.

In the second quarter, the Company produced 4.8 million ounces of silver
and 60,656 ounces of gold compared to 4.1 million and 53,130 ounces of
silver and gold, respectively, in the prior quarter and 4.2 million and
23,124 ounces of silver and gold, respectively, during the second
quarter of 2010.

Quarterly cash operating costs declined 58% from a year ago to $3.39 per
silver ounce. Cash operating costs at Kensington, the Company′s only
pure gold mine, were $924 per ounce in the second quarter.

Palmarejo, Mexico ? Record Quarter

• 
  Quarterly silver production jumped 37% compared to the prior quarter
  due to increases in open pit and underground grades. In addition,
  silver recovery rates increased from 72.7% in the first quarter to
  78.3% in the second quarter.
  
• 
  Quarterly gold production increased 20% compared to the prior quarter.
  
• 
  During the second half of 2011, mill throughput is expected to
  increase and silver recovery rates are expected to remain near second
  quarter levels, leading to increased production compared to the first
  half of the year.
  
• 
  Second quarter metal sales were $123.7 million, operating cash flow
  was $78.6 million, and capital expenditures totaled $10.3 million.
  

San Bartolom?Bolivia ? Consistent Performance

• 
  Second quarter operational performance was similar to the prior
  quarter and slightly lower compared to the same quarter last year.
  
• 
  Throughput is expected to be higher during the remainder of 2011 while
  the average silver grade is anticipated to drop slightly.
  
• 
  Second quarter metal sales were $55.6 million, operating cash flow was
  $40.7 million, and capital expenditures totaled $3.3 million.
  

Kensington, Alaska ? Completing Initial Year of Operations

• 
  Throughput increased 15% in the second quarter compared to the prior
  quarter while the average gold grade declined 4%. Since the end of the
  second quarter, the mill has been processing approximately 1,400 tons
  of ore per day (tpd), above its 1,250 tpd design rate. Mining
  activities took place in lower-grade areas during the second quarter.
  As underground development accelerates, higher-grade areas are
  expected to be mined, resulting in slightly higher production levels
  during the second half of the year.
  
• 
  Kensington's projected capital expenditures for the remainder of 2011
  are expected to be higher by approximately $10 million - $20 million.
  This additional investment will complete additional surface
  facilities, accelerate underground development, purchase additional
  mining equipment, and complete the underground paste back fill plant.
  
• 
  In April 2011, John M. Kinyon joined the Company as Vice President and
  General Manager of Coeur Alaska with overall responsibility for
  Kensington. He was most recently General Manager of the Wolverine Mine
  with Yukon Zinc and formerly held senior operational management
  positions with Oceana Gold and Barrick Gold′s Eskay Creek Mine.
  
• 
  Second quarter metal sales were $26.0 million, operating cash flow was
  $11.4 million, and capital expenditures totaled $7.4 million.
  

Rochester, Nevada ? Expansion on Schedule

• 
  Ore is now being crushed and stacked on the new leach pad, which will
  lead to increased silver and gold production in the fourth quarter.
  
• 
  Metal sales were $14.4 million, operating cash flow was ($2.3) million
  and capital expenditures totaled $4.2 million. Operating cash flow was
  negative because of costs related to pre-stripping activities for the
  expansion. These costs are expensed during the period in which they
  are incurred rather than capitalized.
  
• 
  Over 200 million tons of additional mineral resources are located in
  the existing pit walls and represent a further significant growth
  opportunity.
  

Martha, Argentina ? Additional Silver and Gold Production

• 
  The doubling of mill throughput from 240 tpd to 480 tpd is expected to
  be completed in third quarter.
  
• 
  Development of the Betty vein, located approximately 500 meters north
  of the mill, commenced during the second quarter.
  
• 
  Higher production is anticipated during the second half of 2011 due to
  the mining of higher grade ore in the Betty and associated Betty Sur
  veins and from the reprocessing of existing tailings.
  

Exploration Highlights

Don Birak, Senior Vice President of Exploration, said, 'Exploration on
our large landholdings around existing operations is another example of
value-creating growth. We are significantly increasing the amount spent
on drilling during the second half of the year to identify additional
silver and gold resources. We have also made a series of strategic
investments in five early-stage silver exploration companies in both
North and South America with promising silver projects in order to
increase our exposure to silver exploration opportunities.?

The Company has increased the amount it plans to invest in exploration
activities during the remainder of the year by 67% to approximately
$14.0 million. The exploration budget for the full year is approximately
$23 million, which is 31% higher than 2010. The decision to increase
exploration expenditures was driven by ongoing positive drill results ?
primarily at Palmarejo ? and by a commitment to generate high returns on
the Company′s free cash flow by cost-effectively adding new mineral
resources and reserves near existing mines, and to demonstrate the
long-life potential and long-term value of the Company′s existing
operations.

Palmarejo, Mexico

The Company completed 16,841 meters (55,253 feet) of core drilling in
the second quarter in the large Palmarejo District. This work was
divided nearly equally between targets around the Palmarejo mine from
both surface and underground drill platforms, specifically the Rosario,
Tucson and Chapotillo zones, and at the Guadalupe and La Patria
deposits, located near the mine. Drilling at La Patria represents the
first drilling by Coeur on this mineralized, northwest-trending,
district-scale structure. La Patria is over four kilometers (2.5 miles)
long and consists of three separate zones. This year′s drilling on just
the north zone of La Patria has encountered several gold- and
silver-bearing veins located near the surface, suggesting the potential
for a surface mineable deposit.

Joaquin Project and Martha, Argentina

Coeur is actively engaged in defining the mineral resources at Joaquin
and advancing towards completion of a feasibility study, which will lift
the Company′s managing joint venture interest in the Joaquin project
from 51% to 61%. The Company holds rights to further its interest to
71%. The Joaquin project is located approximately 100 kilometers (62
miles) by road northwest of the Martha mine.

A total of 4,556 meters (14,948 feet) of core drilling was completed on
all targets in the Santa Cruz Province of southern Argentina in the
second quarter of 2011. This included 3,072 meters (10,079 feet) at
Joaquin with the remainder focused around Coeur′s wholly owned and
operated Martha mine. Targets drilled this quarter were extensions of
the La Morena, La Morocha and La Negra zones at Joaquin, as well initial
definition of the high-grade portions of La Negra at Joaquin, and new
targets at the Martha mine and at the nearby Wendy target. At Joaquin,
La Morocha and La Negra are open along strike and at depth. Both need
further in-fill drilling to advance the current mineral resources for
use in scoping and feasibility studies.

Kensington, Alaska, USA

Exploration consisted of just over 1,000 meters (3,300 feet) of core
drilling to discover new mineralization and expand ore reserves. The
main focus of this drilling was on the Comet exploration target, which
is located approximately 1,000 meters (3,300 feet) north of the ore
processing facility. Comet is one of several gold-bearing vein
structures, occurring within a 305 to 457 meter (1,000 to 1,500 feet)
corridor, extending over 3,000 meters (9,800 feet) southward from the
Raven zone at the north to the Jualin deposit, near the mill, to the
south.

Rochester, Nevada, USA

Drilling shifted from ore control to exploration in the second quarter.
A total of 6,809 meters (22,346 feet) of reverse circulation drilling
was completed in the second quarter at the LM target, northwest of the
mine and at the Nevada Packard area.

San Bartolom?Bolivia

The new program of trenching and sampling, which commenced late in the
first quarter, continued into the second quarter of 2011. Year to date,
over 133 new trenches have been completed and sampled resulting in 672
new samples collected from the trenches on one-meter vertical intervals.
All of this work was centered on the Huacajchi and Santa Rita areas to
identify targets for follow up.

Strategic Investments

Year to date, Coeur has made an aggregate of $17.9 million of strategic,
minority investments in four publicly-listed silver exploration
companies and one soon-to-be-listed company. These silver exploration
companies have primary silver projects in Canada, Mexico, Chile, Peru
and Bolivia.

The Company will continue to evaluate opportunities and make similar
investments based on the project′s potential, location, management team,
and return potential for shareholders. These assets are classified as
Marketable Securities on the balance sheet. The Company classifies its
short-term investments as available-for-sale securities. The securities
are measured at fair market value in the financial statements with
unrealized gains or losses recorded in other comprehensive income.

Conference Call Information

Coeur will hold a conference call to discuss the Company's second
quarter 2011 results at 1:00 p.m. Eastern time on August 8, 2011. To
listen live via telephone, call (877) 464-2820 (US and Canada) or (660)
422-4718 (International). The conference ID number is 84576190. 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 August 15, 2011. The
replay dial-in numbers are (855) 859-2056 (US and Canada) and (404)
537-3406 (International) and the access code is 84576190. In addition,
the call will be archived for a limited time on the Company′s web site.

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. 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, the expected cost 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, 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 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 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.

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 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 Rochester silver-gold 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, Alaska, and Nevada.

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