CDE Coeur Mining Inc

COEUR D'ALENE, Idaho, June 1 /PRNewswire-FirstCall/ -- Coeur d'Alene Mines Corporation (NYSE:CDE) announced today that it has completed the sale of 100% of the shares of Coeur Silver Valley (CSV) to U.S. Silver Corporation for $15 million in cash. Coeur anticipates that the transaction will result in a one-time pre-tax gain of approximately $10-$12 million in the second quarter of 2006. Giving effect to the sale of CSV, Coeur currently estimates that it will now report consolidated silver production in 2006 of approximately 15.6 million ounces at a cash cost of approximately $3.57 per ounce, as compared to 2005 consolidated silver production of 13.7 million ounces at a cash cost of $4.26 per ounce. "The transaction reflects our broader strategy of seeking to increase production levels while lowering our consolidated cash operating cost per ounce of silver produced," said Dennis E. Wheeler, Chairman, President, and Chief Executive Officer. "Consistent with this strategy, we continue to be very active in seeking additional silver acquisitions to maintain our growth path." On a separate matter, the company said it has remained in regular contact with government officials in Bolivia over the past several weeks. The company has been informed by the country's Minister of Mines that Bolivia has no intention of seeking to nationalize Coeur's San Bartolome project. The company continues to expect that any potential government proposals to revise tax and royalty structures in the mining industry would be reasonable. The company currently plans to complete the project and begin producing silver toward the end of 2007. San Bartolome is expected to produce 6 to 8 million ounces of silver per year. Coeur d'Alene Mines Corporation is the world's largest publicly traded primary silver producer and has a strong presence in gold. The Company has mining interests in Alaska, Argentina, Australia, Bolivia, Chile, and Nevada. Cautionary Statement Company press releases may contain numerous forward-looking statements within the meaning of securities legislation in the United States and Canada relating to the Company's silver and gold mining business. Such statements are subject to numerous assumptions and uncertainties, many of which are outside the Company's control. Operating, exploration and financial data, and other statements in this document are based on information the Company believes reasonable, but involve significant uncertainties as to future gold and silver prices, costs, ore grades, estimation of gold and silver reserves, mining and processing conditions, currency exchange rates, and the completion and/or updating of mining feasibility studies, changes that could result from the Company's future acquisition 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 the Company's filings from time to time with the SEC and the Ontario Securities Commission, including, without limitation, the Company's reports on Form 10-K and Form 10-Q. Actual results and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. The Company disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Contact: Scott Lamb 208-665-0777 DATASOURCE: Coeur d'Alene Mines Corporation CONTACT: Scott Lamb of Coeur d'Alene Mines Corporation, +1-208-665-0777 Web site: http://www.coeur.com/

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