Coeur Reports Record Second Quarter and First Half Results

COEUR D’ALENE, Idaho--(BUSINESS WIRE)--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 Bartolomé and 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 Bartolomé, 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.

Financial Highlights
US$ in millions (except price of			YOY Qtr.	1st 6 Mo	1st 6 Mo	YOY 1st 6 Mo.
silver and gold)	2Q 2011	2Q 2010	Variance	2011	2010	Variance
Sales of Metal	$231.1	$101.0	129%	$430.7	$189.3	128%
Production Costs	77.1	58.6	32%	169.6	110.4	54%
EBITDA^4	137.0	31.8	331%	225.6	58.7	284%
Adjusted Earnings^2	58.0	(8.9)	751%	95.6	(7.2)	1428%
Operating Cash Flow^1	115.8	22.0	425%	206.0	49.8	314%
Capital Expenditures	25.8	45.5	-43%	41.7	92.7	-55%
Cash and Equivalents	106.8	$41.2	159%	106.8	$41.2	159%
Total Debt^5	157.0	181.0	-13%	157.0	181.0	-13%
Shares Issued & Outstanding	89.5	89.3	0%	89.5	89.3	0%
Avg. Realized Price – Silver	39.11	18.56	111%	35.42	17.74	100%
Avg. Realized Price – Gold	1,504	1,176	28%	1430	1,139	26%
Note:  Reflects results from continuing operations.

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.

Operational Highlights: Production^6
					Year Over Year		First Six Months				Year Over Year
	2Q '11		2Q '10		Qtr. Variance		2011		2010		1H Variance
	Silver	Gold	Silver	Gold	Silver	Gold	Silver	Gold	Silver	Gold	Silver	Gold
Palmarejo	2,370	33,389	1,071	19,950	121%	67%	4,100	61,148	2,371	42,527	73%	44%
San Bartolomé	1,742	-	1,863	-	-6%	-	3,453	-	2,903	0	19%	-
Rochester	333	1,397	533	2,616	-38%	-47%	667	2,848	1,055	5,306	-37%	-46%
Martha	101	112	550	558	-82%	-80%	281	356	915	1,074	-69%	-67%
Endeavor	215	-	139	-	55%	-	364	-	344	-	6%	-
Kensington	-	25,758	-	-	-	-	-	49,434	-	-	-	-
Total	4,761	60,656	4,156	23,124	15%	162%	8,865	113,786	7,588	48,907	17%	133%

Operational Highlights: Cash Operating Costs^6
						YOY Qtr.		First Six Months					YOY 1st 6 Mo.
	2Q '11			2Q '10		Variance			2011			2010	Variance
Palmarejo	$	(3.68	)	$	10.78	-134	%	$	(0.10	)	$	7.83		-101	%
San Bartolomé	$	8.73		$	7.78	12	%	$	8.93		$	8.57		4	%
Rochester	$	4.34		$	2.44	78	%	$	7.31		$	2.06		255	%
Martha	$	38.79		$	8.97	332	%	$	29.60		$	11.57		156	%
Endeavor	$	20.04		$	8.98	123	%	$	18.85		$	8.04		134	%
Total	$	3.39		$	8.06	-58	%	$	5.69		$	7.77	$	(0.27	)
Kensington	$	924			-	-		$	955			-		-

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 Bartolomé, 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 Bartolomé, 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 [phone] (US and Canada) or [phone] (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 [phone] (US and Canada) and [phone] (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 Bartolomé silver 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.

COEUR D’ALENE MINES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
	June 30,			December 31,
		2011			2010
ASSETS	(In thousands, except share data)
CURRENT ASSETS
Cash and cash equivalents	$	106,830		$	66,118
Short term investments		480			-
Receivables		74,624			58,880
Ore on leach pad		6,528			7,959
Metal and other inventory		155,640			118,340
Prepaid expenses and other		13,112			14,914
		357,214			266,211
NON-CURRENT ASSETS
Property, plant and equipment, net		663,510			668,101
Mining properties, net		2,060,740			2,122,216
Ore on leach pad, non-current portion		10,205			10,005
Restricted assets		29,711			29,028
Marketable securities		9,056			-
Receivables, non-current portion		40,941			42,866
Debt issuance costs, net		3,167			4,333
Deferred tax assets		564			804
Other		13,863			13,963
TOTAL ASSETS	$	3,188,971		$	3,157,527
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	66,235		$	67,209
Accrued liabilities and other		7,005			39,720
Accrued income taxes		31,581			28,155
Accrued payroll and related benefits		18,116			17,953
Accrued interest payable		567			834
Current portion of capital leases and other debt obligations		55,839			63,317
Current portion of royalty obligation		57,366			51,981
Current portion of reclamation and mine closure		1,423			1,306
Deferred tax liabilities		462			242
		238,594			270,717
NON-CURRENT LIABILITIES
Long-term debt and capital leases		135,322			130,067
Non-current portion of royalty obligation		183,987			190,334
Reclamation and mine closure		28,334			27,779
Deferred income taxes		483,897			474,264
Other long-term liabilities		23,241			23,599
		854,781			846,043
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Common stock, par value $0.01 per share; authorized 150,000,000 shares, 89,530,624 issued at June 30, 2011 and 89,315,767 issued at December 31, 2010		895			893
Additional paid-in capital		2,583,345			2,578,206
Accumulated deficit		(487,257	)		(538,332	)
Accumulated other comprehensive loss		(1,387	)		-
		2,095,596			2,040,767
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	3,188,971		$	3,157,527

COEUR D’ALENE MINES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)
	Three months ended						Six months ended
	June 30,						June 30,
		2011			2010			2011			2010
	(In thousands, except per share data)
Sales of metal	$	231,090		$	101,018		$	430,714		$	189,307
Production costs applicable to sales		(77,102	)		(58,590	)		(169,576	)		(110,393	)
Depreciation, depletion and amortization		(57,641	)		(29,983	)		(107,682	)		(57,702	)
Gross profit		96,347			12,445			153,456			21,212
COSTS AND EXPENSES
Administrative and general		1,827			6,859			14,058			13,794
Exploration		4,077			3,161			6,839			5,681
Pre-development, care, maintenance and other		11,104			565			14,678			732
Total cost and expenses		17,008			10,585			35,575			20,207
OPERATING INCOME		79,339			1,860			117,881			1,005
OTHER INCOME AND EXPENSE
Loss on debt extinguishments		(389	)		(4,050	)		(856	)		(11,908	)
Fair value adjustments, net		(12,432	)		(42,516	)		(17,700	)		(46,774	)
Interest income and other		2,763			(3,821	)		4,664			(2,088	)
Interest expense, net of capitalized interest		(9,268	)		(5,646	)		(18,573	)		(11,451	)
Total other income and expense		(19,326	)		(56,033	)		(32,465	)		(72,221	)
Income (loss) from continuing operations before income taxes		60,013			(54,173	)		85,416			(71,216	)
Income tax benefit (provision)		(21,402	)		9,372			(34,341	)		16,370
Income (loss) from continuing operations		38,611			(44,801	)		51,075			(54,846	)
Loss from discontinued operations, net of income taxes		-			(2,966	)		-			(5,778	)
Loss on sale of net assets of discontinued operations, net of income taxes		-			(2,977	)		-			(2,977	)
NET INCOME (LOSS)		38,611			(50,744	)		51,075			(63,601	)
Other comprehensive loss, net of income taxes		(1,387	)		-			(1,387	)		(5	)
COMPREHENSIVE INCOME (LOSS)	$	37,224		$	(50,744	)	$	49,688		$	(63,606	)
BASIC AND DILUTED INCOME PER SHARE
Basic income (loss) per share:
Income (loss) from continuing operations	$	0.43		$	(0.50	)	$	0.57		$	(0.64	)
Income (loss) from discontinued operations		-			(0.07	)		-			(0.11	)
Net income (loss)	$	0.43		$	(0.57	)	$	0.57		$	(0.75	)
Diluted income (loss) per share:
Income (loss) from continuing operations	$	0.43		$	(0.50	)	$	0.57		$	(0.64	)
Income (loss) from discontinued operations		-			(0.07	)		-			(0.11	)
Net income (loss)	$	0.43		$	(0.57	)	$	0.57		$	(0.75	)
Weighted average number of shares of common stock
Basic		89,310			88,501			89,299			85,145
Diluted		89,712			88,501			89,683			85,145

COEUR D’ALENE MINES CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Three months ended						Six months ended
	June 30,						June 30,
		2011			2010			2011			2010
	(In thousands)						(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	38,611		$	(50,744	)	$	51,075		$	(63,601	)
Add (deduct) non-cash items
Depreciation, depletion and amortization		57,641			31,010			107,682			59,784
Accretion of discount on debt and other assets, net		494			-			944			-
Accretion of royalty obligation		5,770			4,637			11,037			9,629
Deferred income taxes		4,223			(14,892	)		10,093			(21,388	)
Loss on debt extinguishment		389			4,050			856			11,908
Fair value adjustments, net		13,933			43,052			20,593			46,723
(Gain) loss on foreign currency transactions		(848	)		1,471			(737	)		1,821
Share-based compensation		(3,351	)		622			4,804			2,009
(Gain) loss on sale of assets		(1,223	)		2,826			(1,224	)		2,805
Other non-cash charges		200			15			831			71
Changes in operating assets and liabilities:
Receivables and other current assets		(6,784	)		3,662			(11,644	)		(7,625	)
Inventories		(23,575	)		(2,251	)		(36,068	)		(4,908	)
Accounts payable and accrued liabilities		25,585			8,998			(11,392	)		(14,002	)
CASH PROVIDED BY OPERATING ACTIVITIES		111,065			32,456			146,850			23,226
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments		(11,881	)		-			(13,110	)		-
Proceeds from sales and maturities of investments		2,773			-			3,360			-
Capital expenditures		(25,764	)		(45,467	)		(41,681	)		(92,656	)
Other		325			150			273			76
CASH USED IN INVESTING ACTIVITIES		(34,547	)		(45,317	)		(51,158	)		(92,580	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of notes and bank borrowings		-			22,041			27,500			134,810
Payments on long-term debt, capital leases, and associated costs		(16,704	)		(11,377	)		(34,099	)		(18,978	)
Payments on gold production royalty		(17,441	)		(9,582	)		(32,059	)		(18,533	)
Proceeds from gold lease facility		-			-			-			4,517
Payments on gold lease facility		-			(2,210	)		(13,800	)		(17,101	)
Proceeds from sale-leaseback transactions		-			-			-			4,853
Additions to restricted assets associated with the Kensington Term Facility		-			(786	)		(1,325	)		(1,584	)
Other		30			-			(1,197	)		(225	)
CASH PROVIDED (USED IN) BY FINANCING ACTIVITIES:		(34,115	)		(1,914	)		(54,980	)		87,759
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		42,403			(14,775	)		40,712			18,405
Cash and cash equivalents at beginning of period		64,427			55,962			66,118			22,782
Cash and cash equivalents at end of period	$	106,830		$	41,187		$	106,830		$	41,187

The Company’s operating cash flow, excluding changes in operating assets and liabilities, consisted of the following (in thousands):

OPERATING CASH FLOW RECONCILIATION	2Q 11		1Q 11	4Q 10		3Q 10		2Q 10
Cash provided by operating activities	111,065		35,786	129,397		12,939		32,456
Changes in operating assets and liabilities:
Receivables and other current assets	6,784		4,860	(5,908	)	4,511		(3,662	)
Prepaid expenses and other	-		-	(5,871	)	-		-
Inventories	23,575		12,493	19,999		22,980		2,251
Accounts payable and accrued liabilities	(25,585	)	36,977	(38,186	)	(5,704	)	(8,998	)
OPERATING CASH FLOW	115,839		90,116	99,431		34,726		22,047

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

EBITDA RECONCILIATION	2Q 11		1Q 11		2010		4Q 10		3Q 10		2Q 10
Net income (loss)	38,611		12,464		(91,308	)	(5,078	)	(22,628	)	(50,744	)
Gain (loss) on sale of net assets of discontinued operations, net of income taxes	-		-		2,095		1		(883	)	2,977
Income (loss) from discontinued operations, net of income taxes	-		-		6,029		-		251		2,966
Income tax benefit	21,402		12,939		(9,481	)	3,655		3,233		(9,372	)
Interest expense, net of capitalized interest	9,268		9,304		30,942		9,539		9,951		5,646
Interest and other income	(2,763	)	(1,934	)	(771	)	(3,495	)	638		3,821
Fair value adjustments, net	12,432		5,302		117,094		51,213		19,107		42,516
Gain (loss) on debt extinguishments	389		467		20,300		7,586		806		4,050
Depreciation and depletion	57,641		50,041		141,619		46,116		37,801		29,983
EBITDA	136,980		88,583		216,519		109,537		48,276		31,843

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

ADJUSTED EARNINGS RECONCILIATION	2Q 11		1Q 11	2010		4Q 10		3Q 10		2Q 10
Net income (loss)	38,611		12,464	(91,308	)	(5,078	)	(22,628	)	(50,744	)
Gain (loss) on sale of net assets of discontinued operations, net of income taxes	-		-	2,095		1		(883	)	2,977
Share Based Compensation	(3,351	)	8,155	7,217		3,248		1,960		622
Income (loss) from discontinued operations, net of income taxes	-		-	6,029		-		251		2,966
Deferred income tax provision	4,198		5,870	(38,901	)	(8,386	)	(7,860	)	(15,935	)
Interest expense, accretion of royalty obligation	5,770		5,267	19,018		4,611		4,778		4,637
Fair value adjustments, net	12,432		5,302	117,094		51,213		19,107		42,516
Gain (loss) on debt extinguishments	389		467	20,300		7,586		806		4,050
ADJUSTED EARNINGS (LOSS)	58,049		37,525	41,544		53,195		(4,469	)	(8,911	)

Operating Statistics from Continuing Operations
	Three months ended June 30,						Six months ended June 30,
		2011			2010			2011			2010
Silver Operations:
Palmarejo
Tons milled		414,719			457,268			813,459			915,275
Ore grade/Ag oz		7.30			3.23			6.65			3.57
Ore grade/Au oz		0.08			0.05			0.08			0.05
Recovery/Ag oz		78.3	%		72.5	%		75.8	%		72.6	%
Recovery/Au oz		95.2	%		87.3	%		91.5	%		89.4	%
Silver production ounces		2,370,536			1,070,638			4,100,303			2,371,231
Gold production ounces		33,389			19,950			61,148			42,527
Cash operating costs/oz	$	(3.68	)	$	10.78		$	(0.10	)	$	7.83
Cash cost/oz	$	(3.68	)	$	10.78		$	(0.10	)	$	7.83
Total production cost/oz	$	14.16		$	29.73		$	18.48		$	25.16
San Bartolomé
Tons milled		378,640			446,909			766,308			740,014
Ore grade/Ag oz		5.24			5.00			5.11			4.50
Recovery/Ag oz		87.7	%		83.4	%		88.2	%		87.2	%
Silver production ounces		1,741,578			1,863,141			3,452,525			2,903,068
Cash operating costs/oz	$	8.73		$	7.78		$	8.93		$	8.57
Cash cost/oz	$	10.32		$	8.32		$	10.40		$	9.22
Total production cost/oz	$	13.51		$	11.56		$	13.44		$	12.39
Martha
Tons milled		22,122			12,421			39,940			29,996
Ore grade/Ag oz		5.44			50.24			8.39			35.21
Ore grade/Au oz		0.01			0.06			0.01			0.04
Recovery/Ag oz		84.0	%		88.1	%		83.8	%		86.6	%
Recovery/Au oz		72.4	%		81.7	%		74.3	%		89.5	%
Silver production ounces		101,122			549,885			281,107			915,111
Gold production ounces		112			558			356			1,074
Cash operating costs/oz	$	38.79		$	8.97		$	29.60		$	11.57
Cash cost/oz	$	40.47		$	9.57		$	30.86		$	12.12
Total production cost/oz	$	33.83		$	14.10		$	30.92		$	17.38
Rochester ^(A)
Silver production ounces		333,432			533,093			667,127			1,055,253
Gold production ounces		1,397			2,616			2,848			5,306
Cash operating costs/oz	$	4.34		$	2.44		$	7.31		$	2.06
Cash cost/oz	$	6.88		$	2.93		$	9.37		$	2.64
Total production cost/oz	$	8.92		$	3.97		$	11.22		$	3.67
Endeavor
Tons milled		207,388			143,371			374,674			273,244
Ore grade/Ag oz		2.41			2.01			2.23			2.61
Recovery/Ag oz		42.9	%		48.4	%		43.5	%		48.2	%
Silver production ounces		214,613			139,447			363,795			343,700
Cash operating costs/oz	$	20.04		$	8.98		$	18.85		$	8.04
Cash cost/oz	$	20.04		$	8.98		$	18.85		$	8.04
Total production cost/oz	$	24.07		$	12.21		$	22.93		$	11.27

	Three months ended June 30,					Six months ended June 30,
		2011			2010		2011			2010
Gold Operation:
Kensington^(B)
Tons milled		121,565			-		227,385			-
Ore grade/Au oz		0.23			-		0.23			-
Recovery/Au oz		93.0	%		-		92.7	%		-
Gold production ounces		25,758			-		49,434			-
Cash operating costs/oz	$	923.56		$	-	$	954.78		$	-
Cash cost/oz	$	923.56		$	-	$	954.78		$	-
Total production cost/oz	$	1,308.24		$	-	$	1,344.67		$	-
CONSOLIDATED PRODUCTION TOTALS^(C)
Total silver ounces		4,761,281			4,156,204		8,864,857			7,588,363
Total gold ounces		60,656			23,124		113,785			48,907
Silver Operations:^(D)
Cash operating costs per oz/silver	$	3.39		$	8.06	$	5.69		$	7.77
Cash cost per oz/silver	$	4.19		$	8.44	$	6.46		$	8.17
Total production cost/oz	$	14.42		$	15.62	$	16.55		$	15.72
Gold Operation:^(E)
Cash operating costs/oz	$	923.56		$	-	$	954.78		$	-
Cash cost/oz	$	923.56		$	-	$	954.78		$	-
Total production cost/oz	$	1,308.24		$	-	$	1,344.67		$	-
CONSOLIDATED SALES TOTALS ^(F)
Silver ounces sold		4,133,283			4,051,838		7,792,587			7,685,594
Gold ounces sold		49,930			23,645		115,852			49,379
Realized price per silver ounce	$	39.11		$	18.56	$	35.42		$	17.74
Realized price per gold ounce	$	1,504		$	1,176	$	1,430		$	1,139

(A)	The leach cycle at Rochester requires 5 to 10 years to recover gold and silver contained in the ore. The Company estimates the ultimate recovery to be approximately 61% for silver and 92% for gold. However, ultimate recoveries will not be known until leaching operations cease, which is currently estimated for 2014 for the current leach pad. Current recovery may vary significantly from ultimate recovery. See Critical Accounting Policies and Estimates – Ore on Leach Pad in the Company’s Form 10-K for the year ended December 31, 2010.
(B)	Kensington achieved commercial production on July 3, 2010.
(C)	Current production ounces and recoveries reflect final metal settlements of previously reported production ounces.
(D)	Amount includes by-product gold credits deducted in computing cash costs per ounce.
(E)	Amounts reflect Kensington per ounce statistics only.
(F)	Units sold at realized metal prices will not match reported metal sales due primarily to the effects on revenues of mark-to-market adjustments on embedded derivatives in the Company’s provisionally priced sales contracts.
	“Operating Costs per Ounce” and “Cash Costs per Ounce” are calculated by dividing the operating cash costs and cash costs computed for each of the Company’s mining properties for a specified period by the amount of gold ounces or silver ounces produced by that property during that same period.  Management uses cash operating costs per ounce and cash costs per ounce as key indicators of the profitability of each of its mining properties.  Gold and silver are sold and priced in the world financial markets on a U.S. dollar per ounce basis.
	“Cash Operating Costs” and “Cash Costs” are costs directly related to the physical activities of producing silver and gold, and include mining, processing and other plant costs, third-party refining and smelting costs, marketing expenses, on-site general and administrative costs, royalties, in-mine drilling expenditures related to production and other direct costs.  Sales of by-product metals are deducted from the above in computing cash costs.  Cash costs exclude depreciation, depletion and amortization, accretion, corporate general and administrative expenses, exploration, interest, and pre-feasibility costs.  Cash operating costs include all cash costs except production taxes and royalties, if applicable.  Cash costs are calculated and presented using the “Gold Institute Production Cost Standard” applied consistently for all periods presented.
	Total operating costs and cash costs per ounce are non-U.S. GAAP measures and investors are cautioned not to place undue reliance on them and are urged to read all U.S. GAAP accounting disclosures presented in the consolidated financial statements and accompanying footnotes. In addition, see the reconciliation of “cash costs” to production costs under “Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs” set forth below.

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.

Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs
Three months ended
June 30, 2011
(In thousands except ounces and per ounce				San
costs)	Palmarejo			Bartolomé			Kensington			Rochester		Martha			Endeavor			Total
Production of silver (ounces)		2,370,537			1,741,577			-			333,431		101,122			214,613			4,761,280
Production of gold (ounces)								25,758											25,758
Cash operating cost per Ag ounce	$	(3.68	)	$	8.73					$	4.34	$	38.79		$	20.04		$	3.39
Cash costs per Ag ounce	$	(3.68	)	$	10.32					$	6.88	$	40.47		$	20.04		$	4.19
Cash operating cost per Au ounce							$	923.56										$	923.56
Cash cost per Au ounce							$	923.56										$	923.56
Total Cash Operating Cost (Non-U.S. GAAP)	$	(8,719	)	$	15,211		$	23,789		$	1,446	$	3,922		$	4,301		$	39,950
Royalties					2,760			-			578		170			-			3,508
Production taxes					-			-			268		-			-			268
Total Cash Costs (Non-U.S. GAAP)		(8,719	)		17,971			23,789			2,292		4,092			4,301			43,726
Add/Subtract:
Third party smelting costs		-			-			(3,375	)		-		(426	)		(1,018	)		(4,819	)
By-product credit		50,188			-			-			2,106		169			-			52,463
Other adjustments		552			376			19			97		76			-			1,120
Change in inventory		(4,252	)		(4,221	)		(7,588	)		846		(162	)		(10	)		(15,387	)
Depreciation, depletion and amortization		41,745			5,182			9,889			584		(748	)		865			57,517
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP)	$	79,514		$	19,308		$	22,734		$	5,925	$	3,001		$	4,138		$	134,620

Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs
Six months ended
June 30, 2011
(In thousands except ounces and per ounce				San
costs)	Palmarejo			Bartolomé			Kensington			Rochester		Martha			Endeavor			Total
Production of silver (ounces)		4,100,303			3,452,525						667,127		281,107			363,795			8,864,857
Production of gold (ounces)								49,434											49,434
Cash operating cost per Ag ounce	$	0.10		$	8.93					$	7.31	$	29.60		$	18.85		$	6.07
Cash costs per Ag ounce	$	0.10		$	10.40					$	9.37	$	30.86		$	18.85		$	6.84
Cash operating cost per Au ounce							$	954.78										$	954.78
Cash cost per Au ounce							$	954.78										$	954.78
Total Cash Operating Cost (Non-U.S. GAAP)	$	(407	)	$	30,825		$	47,199		$	4,875	$	8,322		$	6,859		$	97,673
Royalties		-			5,064			-			908		353			-			6,325
Production taxes		-			-			-			468		-			-			468
Total Cash Costs (Non-U.S. GAAP)		(407	)		35,889			47,199			6,251		8,675			6,859			104,466
Add/Subtract:
Third party smelting costs		-			-			(6,025	)		-		(1,799	)		(1,581	)		(9,405	)
By-product credit		88,656			-			-			4,121		508			-			93,285
Other adjustments		773			188			19			138		172			-			1,290
Change in inventory		(13,884	)		(7,833	)		4,572			2,188		(4,196	)		(905	)		(20,058	)
Depreciation, depletion and amortization		75,411			10,325			19,254			1,098		(157	)		1,483			107,414
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP)	$	150,549		$	38,569		$	65,019		$	13,796	$	3,203		$	5,856		$	276,992

Three months ended
June 30, 2010
(In thousands except ounces and per				San
ounce costs)	Palmarejo			Bartolomé			Rochester		Martha			Endeavor			Total
Production of silver (ounces)		1,070,638			1,863,142			533,094		549,885			139,447			4,156,206
Cash operating cost per Ag ounce	$	10.78		$	7.78		$	2.44	$	8.97		$	8.98		$	8.06
Cash costs per Ag ounce	$	10.78		$	8.32		$	2.93	$	9.57		$	8.98		$	8.44
Total Operating Cost (Non-U.S. GAAP)	$	11,542		$	14,490		$	1,298	$	4,937		$	1,252		$	33,519
Royalties		-			999			-		329			-			1,328
Production taxes		-			-			260		-			-			260
Total Cash Costs (Non-U.S. GAAP)		11,542			15,489			1,558		5,266			1,252			35,107
Add/Subtract:
Third party smelting costs		-			-			-		(1,133	)		(346	)		(1,479	)
By-product credit		23,846			-			3,131		666			-			27,643
Other adjustments		-			-			95		253			-			348
Change in inventory		(3,289	)		(148	)		811		(920	)		517			(3,029	)
Depreciation, depletion and amortization		20,289			6,032			458		2,236			450			29,465
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP)	$	52,388		$	21,373		$	6,053	$	6,368		$	1,873		$	88,055

Six months ended
June 30, 2010
(In thousands except ounces and per				San
ounce costs)	Palmarejo			Bartolomé			Rochester		Martha			Endeavor			Total
Production of silver (ounces)		2,371,231			2,903,068			1,055,253		915,111			343,700			7,588,363
Cash operating cost per Ag ounce	$	7.83		$	8.57		$	2.06	$	11.57		$	8.04		$	7.77
Cash costs per Ag ounce	$	7.83		$	9.22		$	2.64	$	12.12		$	8.04		$	8.17
Total Operating Cost (Non-U.S. GAAP)	$	18,572		$	24,869		$	2,175	$	10,585		$	2,764		$	58,965
Royalties		-			1,891			-		506			-			2,397
Production taxes		-			-			608		-			-			608
		18,572			26,760			2,783		11,091			2,764			61,970
Total Cash Costs (Non-U.S. GAAP)																61,970
Add/Subtract:
Third party smelting costs		-			-			-		(1,826	)		(610	)		(2,436	)
By-product credit		48,891			-			6,119		1,237			-			56,247
Other adjustments		-			-			163		259			-			422
Change in inventory		(6,697	)		(2,016	)		2,318		697			(112	)		(5,810	)
Depreciation, depletion and amortization		41,083			9,209			923		4,553			1,110			56,878
Production costs applicable to sales, including depreciation, depletion and amortization (U.S. GAAP)	$	101,849		$	33,953		$	12,306	$	16,011		$	3,152		$	167,271

Financial information relating to the Company’s segments is as follows (in thousands):

	Palmarejo			San Bartolomé			Kensington			Rochester			Martha			Endeavor
Three months ended June 30, 2011	Mine			Mine			Mine			Mine			Mine			Mine			Other			Total
Sales of metals	$	123,727		$	55,598		$	26,012		$	14,434		$	4,769		$	6,550		$	-		$	231,090
Productions costs applicable to sales		(37,770	)		(14,126	)		(12,844	)		(5,341	)		(3,749	)		(3,272	)		-			(77,102	)
Depreciation and depletion		(41,753	)		(5,182	)		(9,890	)		(584	)		747			(865	)		(114	)		(57,641	)
Gross profit (loss)		44,204			36,290			3,278			8,509			1,767			2,413			(114	)		96,347
Exploration expense		1,276			31			320			340			1,527			-			583			4,077
Other operating expenses		-			70			116			11,025			-			-			1,720			12,931
OPERATING INCOME (LOSS)		42,928			36,189			2,842			(2,856	)		240			2,413			(2,417	)		79,339
Interest and other income		539			180			2			5			(179	)		-			2,216			2,763
Interest expense		(6,112	)		(2	)		(1,360	)		-			(68	)		-			(1,726	)		(9,268	)
Loss on debt extinguishment		-			-			-			-			-			-			(389	)		(389	)
Fair value adjustments, net		(13,731	)		-			2,374			-			-			-			(1,075	)		(12,432	)
Income tax benefit (expense)		(6,286	)		(12,109	)		-			-			(410	)		(3	)		(2,594	)		(21,402	)
Net income (loss)	$	17,338		$	24,258		$	3,858		$	(2,851	)	$	(417	)	$	2,410		$	(5,985	)	$	38,611
Segment assets (A)	$	2,095,411		$	269,439		$	507,531		$	35,606		$	19,341		$	40,760		$	16,201		$	2,984,289
Capital expenditures (B)	$	10,278		$	3,276		$	7,365		$	4,201		$	573		$	-		$	71		$	25,764

	Palmarejo			San Bartolomé			Kensington			Rochester			Martha			Endeavor
Three months ended June 30, 2010	Mine			Mine			Mine			Mine			Mine			Mine			Other			Total
Sales of metals	$	44,834		$	31,275		$	-		$	12,416		$	9,187		$	3,306		$	-		$	101,018
Productions costs applicable to sales		(32,100	)		(15,340	)		-			(5,595	)		(4,132	)		(1,423	)		-			(58,590	)
Depreciation and depletion		(20,291	)		(6,032	)		-			(458	)		(2,619	)		(450	)		(133	)		(29,983	)
Gross profit (loss)		(7,557	)		9,903			-			6,363			2,436			1,433			(133	)		12,445
Exploration expense		1,307			-			229			20			1,205			-			400			3,161
Other operating expenses		38			-			-			601			-			-			6,785			7,424
OPERATING INCOME (LOSS)		(8,902	)		9,903			(229	)		5,742			1,231			1,433			(7,318	)		1,860
Interest and other income		(1,903	)		(105	)		-			1			(2,180	)		-			366			(3,821	)
Interest expense		(5,401	)		(92	)		-			-			(17	)		-			(136	)		(5,646	)
Loss on debt extinguishment		-			-			-			-			-			-			(4,050	)		(4,050	)
Fair value adjustments, net		(32,633	)		-			(6,089	)		-			-			-			(3,794	)		(42,516	)
Income tax benefit (expense)		(4,006	)		(3,909	)		-			-			(2,160	)		-			19,447			9,372
Net loss from discontinued operations		-			-			-			-			-			-			(5,943	)		(5,943	)
Net income (loss)	$	(52,845	)	$	5,797		$	(6,318	)	$	5,743		$	(3,126	)	$	1,433		$	(1,428	)	$	(50,744	)
Segment assets (A)	$	2,140,633		$	274,156		$	477,800		$	28,625		$	26,269		$	39,210		$	10,683		$	2,997,376
Capital expenditures (B)	$	10,811		$	1,325		$	33,195		$	86		$	11		$	-		$	39		$	45,467

	Palmarejo			San Bartolomé			Kensington			Rochester			Martha			Endeavor
Six months ended June 30, 2011	Mine			Mine			Mine			Mine			Mine			Mine			Other			Total
Sales of metals	$	211,892		$	101,919		$	74,122		$	28,696		$	4,455		$	9,630		$	-		$	430,714
Productions costs applicable to sales		(75,139	)		(28,244	)		(45,764	)		(12,698	)		(3,359	)		(4,372	)		-			(169,576	)
Depreciation and depletion		(75,428	)		(10,325	)		(19,255	)		(1,098	)		155			(1,484	)		(247	)		(107,682	)
Gross profit (loss)		61,325			63,350			9,103			14,900			1,251			3,774			(247	)		153,456
Exploration expense		1,912			35			366			362			2,823			-			1,341			6,839
Other operating expenses		-			108			136			14,561			-			-			13,931			28,736
OPERATING INCOME (LOSS)		59,413			63,207			8,601			(23	)		(1,572	)		3,774			(15,519	)		117,881
Interest and other income		1,828			787			3			51			(489	)		-			2,484			4,664
Interest expense		(11,815	)		(36	)		(2,607	)		-			(413	)		-			(3,702	)		(18,573	)
Loss on debt extinguishment		-			-			-			-			-			-			(856	)		(856	)
Fair value adjustments, net		(20,041	)		-			1,676			-			-			-			665			(17,700	)
Income tax benefit (expense)		(10,062	)		(22,146	)		(20	)		-			(369	)		(3	)		(1,741	)		(34,341	)
Net income (loss)	$	19,323		$	41,812		$	7,653		$	28		$	(2,843	)	$	3,771		$	(18,669	)	$	51,075
Segment assets (A)	$	2,095,411		$	269,439		$	507,531		$	35,606		$	19,341		$	40,760		$	16,201		$	2,984,289
Capital expenditures (B)	$	15,359		$	6,812		$	12,734		$	5,869		$	824		$	-		$	83		$	41,681

	Palmarejo			San Bartolomé			Kensington			Rochester			Martha			Endeavor
Six months ended June 30, 2010	Mine			Mine			Mine			Mine			Mine			Mine			Other			Total
Sales of metals	$	90,448		$	45,867		$	-		$	23,167		$	24,207		$	5,618		$	-		$	189,307
Productions costs applicable to sales		(60,767	)		(24,743	)		-			(11,384	)		(11,458	)		(2,041	)		-			(110,393	)
Depreciation and depletion		(41,084	)		(9,209	)		-			(923	)		(5,104	)		(1,110	)		(272	)		(57,702	)
Gross profit (loss)		(11,403	)		11,915			-			10,860			7,645			2,467			(272	)		21,212
Exploration expense		1,787			-			242			41			2,415			-			1,196			5,681
Other operating expenses		351			-			-			773			-			-			13,402			14,526
OPERATING INCOME (LOSS)		(13,541	)		11,915			(242	)		10,046			5,230			2,467			(14,870	)		1,005
Interest and other income		261			(144	)		-			1			(2,950	)		-			744			(2,088	)
Interest expense		(10,868	)		(163	)		-			-			(55	)		-			(365	)		(11,451	)
Loss on debt extinguishment		-			-			-			-			-			-			(11,908	)		(11,908	)
Fair value adjustments, net		(36,179	)		-			(6,552	)		-			-			-			(4,043	)		(46,774	)
Income tax benefit (expense)		2,857			(4,501	)		-			-			(2,173	)		-			20,187			16,370
Net loss from discontinued operations		-			-			-			-			-			-			(8,755	)		(8,755	)
Net income (loss)	$	(57,470	)	$	7,107		$	(6,794	)	$	10,047		$	52		$	2,467		$	(19,010	)	$	(63,601	)
Segment assets (A)	$	2,140,633		$	274,156		$	477,800		$	28,625		$	26,269		$	39,210		$	10,683		$	2,997,376
Capital expenditures (B)	$	27,319		$	1,871		$	63,097		$	87		$	3		$	-		$	279		$	92,656
(A)  Segment assets consist of receivables, prepaids, inventories, property, plant and equipment, and mining properties
(B)  Balance represents cash flow amounts

Segment Information from Continuing Operations

Palmarejo
	in millions of US$	2Q 2011	1Q 2011	4Q 2010	3Q 2010	2Q 2010
	Sales of Metal	$123.7	$88.2	$78.1	$61.5	$44.8
	Production Costs	37.7	37.4	35.6	31.3	32.1
	EBITDA	84.7	50.2	41.0	28.9	11.4
	Operating Income/(Loss)	43.0	16.5	13.0	6.4	-8.9
	Operating Cash Flow^1	78.6	44.4	40.1	28.9	0.1
	Capital Expenditures	10.3	5.1	11.1	15.8	10.8
	Ounces unless otherwise noted	2Q 2011	1Q 2011	4Q 2010	3Q 2010	2Q 2010
	Underground Operations:
	Tons Mined	144,614	143,800	151,032	146,682	166,381
	Average Silver Grade (oz/t)	10.1	8.3	6.3	5.6	5.1
	Average Gold Grade (oz/t)	0.1371	0.14	0.10	0.10	0.09
	Surface Operations:
	Tons Mined	276,699	246,879	281,177	256,927	306,246
	Average Silver Grade (oz/t)	5.8	4.6	7.3	5.2	2.0
	Average Gold Grade (oz/t)	0.0559	0.05	0.07	0.07	0.03
	Processing:
	Total Tons Milled	414,719	398,740	514,391	405,742	457,268
	Average Recovery Rate – Ag	78.30%	72.70%	66.72%	69.60%	72.50%
	Average Recovery Rate – Au	95.20%	87.40%	90.32%	94.30%	86.70%
	Silver Production - oz	2,371	1,730	2,010	1,507	1,071
	Gold Production - oz	33	28	30	30	20
	Cash Operating Costs/Ag Oz	($3.68)	$4.80	$2.68	$0.15	$10.78

San Bartolome
	in millions of US$	2Q 2011	1Q 2011	4Q 2010	3Q 2010	3Q 2010
	Sales of Metal	$55.6	$46.3	$67.1	$30.0	$30.0
	Production Costs	14.1	14.1	22.4	12.9	12.9
	EBITDA	41.4	$31.8	44.7	17.1	17.1
	Operating Income/(Loss)	36.2	27.0	39.2	12.2	12.2
	Operating Cash Flow^1	40.7	32.2	34.0	10.3	10.3
	Capital Expenditures	3.3	3.5	3.5	0.8	0.8
	Ounces unless otherwise noted	2Q 2011	1Q 2011	4Q 2010	3Q 2010	2Q 2010
	Tons Milled	378,640	387,668	404,160	360,605	446,909
	Average Silver Grade (oz/t)	5.75	5.6	5.4	5.7	5.0
	Average Recovery Rate	87.70%	88.60%	92.04%	87.20%	83.40%
	Silver Production	1,742	1,711	2,011	1,795	1,863
	Gold Production	0	0	0	0	0
	Cash Operating Costs/Ag Oz	$8.73	$9.13	$7.53	$7.05	$7.78

Kensington
	in millions of US$	2Q 2011	1Q 2011	4Q 2010	3Q 2010	2Q 2010
	Sales of Metal	26.0	$48.1	$15.1	$8.5	nm
	Production Costs	12.8	32.9	6.6	7.4	nm
	EBITDA	12.8	12.8	8.5	0.5	nm
	Operating Income/(Loss)	2.8	5.8	(1.8)	(6.7)	nm
	Operating Cash Flow^1	11.4	0.0	7.8	-0.5	nm
	Capital Expenditures	7.4	5.4	9.6	20.0	33.2
	Ounces unless otherwise noted	2Q 2011	1Q 2011	4Q 2010	3Q 2010	2Q 2010
	Tons Milled	121,565	105,820	83,774	90,254	0
	Average Gold Grade (oz/t)	0.23	0.24	0.37	0.19	0
	Average Recovery Rate	93.00%	92.40%	91	87.70%	0
	Gold Production	26	24	28	15	0
	Cash Operating Costs/Ag Oz	$923.56	$988.75	$874.60	$1,199.20	$0.00

Rochester
	in millions of US$	2Q 2011	1Q 2011	4Q 2010	3Q 2010	2Q 2010
	Sales of Metal	$14.4	$14.3	$25.3	$5.8	$12.4
	Production Costs	5.3	7.4	10.6	2.8	5.6
	EBITDA	(2.2)	3.4	14.7	2.8	6.2
	Operating Income/(Loss)	(2.9)	2.9	15.2	2.3	5.7
	Operating Cash Flow^1	-2.3	3.4	14.8	2.8	6.2
	Capital Expenditures	4.2	1.7	2.1	0.1	0.1
	Ounces unless otherwise noted	2Q 2011	1Q 2011	4Q 2010	3Q 2010	2Q 2010
	Silver Production	333	334	549	419	533
	Gold Production	1	2	2	2	3
	Cash Operating Costs/Ag Oz	$4.34	$10.28	$2.94	$5.10	$2.44

Martha
	in millions of US$	2Q 2011	1Q 2011	4Q 2010	3Q 2010	2Q 2010
	Sales of Metal	$4.8	($0.3)	$18.6	$11.0	$9.2
	Production Costs	3.9	-0.4	10.3	5.3	4.1
	EBITDA	(0.6)	-1.2	6.4	4.3	3.9
	Operating Income/(Loss)	-0.4	-1.8	5.2	2.1	1.2
	Operating Cash Flow^1	1.3	-0.3	3.5	-0.2	-0.5
	Capital Expenditures	0.6	0.3	0.1	0.0	0.0
	Ounces unless otherwise noted	2Q 2011	1Q 2011	4Q 2010	3Q 2010	2Q 2010
	Total Tons Milled	22,122	17,818	13,616	12,790	12,421
	Average Silver Grade (oz/t)	5.44	12.06	14.53	42.42	50.24
	Average Gold Grade (oz/t)	0.01	0.02	0.02	0.05	0.06
	Average Recovery Rate – Ag	84.00%	83.70%	75.85%	96.30%	88.10%
	Average Recovery Rate – Au	72.40%	75.30%	57.68%	93.60%	81.70%
	Silver Production	101	180	150	511	550
	Gold Production	0	0	0	1	1
	Cash Operating Costs/Ag Oz	$38.79	$24.44	$33.99	$9.86	$8.97

Endeavor
	in millions of US$	2Q 2011	1Q 2011	4Q 2010	3Q 2010	2Q 2010
	Sales of Metal	$6.6	$3.1	$3.3	$1.7	$3.3
	Production Costs	3.3	1.1	1.4	0.7	1.4
	EBITDA	3.3	2.0	1.9	1.0	1.9
	Operating Income/(Loss)	2.4	1.4	1.3	0.7	1.4
	Operating Cash Flow^1	3.2	2.0	1.9	1.0	1.9
	Capital Expenditures	0.0	0.0	0.0	0.0	0.0
	Ounces unless otherwise noted	2Q 2011	1Q 2011	4Q 2010	3Q 2010	2Q 2010
	Silver Production	215	149	120	102	139
	Gold Production	0	0	0	0	0
	Cash Operating Costs/Ag Oz	$20.04	$17.15	$16.03	$10.32	$8.98