Coeur′s Kensington Gold Mine Production Continues

Coeur d′Alene Mines Corporation (NYSE:CDE) (TSX:CDM) reports that its
wholly owned Kensington gold mine and processing facility, located 45
miles northwest of Juneau, in Alaska, is operating at full capacity
following the fatal accident in the underground operations on September
7, 2011. The Company currently does not expect any material impact to
its gold production guidance for 2011, and will continue to evaluate any
potential impact to projected guidance.

Miners are working in all areas of the Kensington underground
operations, including advancing development headings. The mill is
running at capacity this week following four days of shut down and
planned maintenance. The Company has been working in cooperation with
the Mine Safety and Health Administration (MSHA) in the investigation of
the accident as well as in finalizing updated blasting protocol for the
production stopes underground.

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 and production information
regarding the Kensington gold mine, financial guidance for Coeur, and
other statements in this release are based on information that Coeur
believes is reasonable, but involve significant uncertainties affecting
the business of Coeur, including, but not limited to, any investigation
or action by MHSA or other governmental authorities relating to the
fatal accident at Kensington, future gold and silver prices, costs, ore
grades, estimation of gold and silver reserves, mining and processing
conditions, construction schedules, currency exchange rates, the risks
and hazards inherent in the mining business (including environmental
hazards, industrial accidents, weather or geologically related
conditions), regulatory and permitting matters, 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.

Coeur d′Alene Mines Corporation

Investor Relations:

Wendy
Yang, 208-665-0345

or

Corporate Communications:

Tony
Ebersole, 208-665-0777

or

www.coeur.com