Coeur Enters Into Letter of Intent to Sell Non-Core Assets for up to US$67 Million in Total Consideration

  Coeur Enters Into Letter of Intent to Sell Non-Core Assets for up to US$67
  Million in Total Consideration

Business Wire

COEUR D’ALENE, Idaho -- April 11, 2013

Coeur d’Alene Mines Corporation (the “Company” or “Coeur”)  (NYSE: CDE)(TSX:
CDM) today announced that it has entered into a letter of intent with XDM
Royalty Corp. (“XDM”) to sell its interest in the silver production and
reserves from the Endeavor mine in Australia (the “Endeavor silver stream”)
and the royalty from the Cerro Bayo gold and silver mine in southern Chile
(the “Cerro Bayo royalty”) for up to US$67 million in total cash and XDM
equity consideration.

The letter provides that XDM will pay US$45 million in cash and issue US$10
million in common equity to Coeur at closing, subject to adjustment for cash
flow to Coeur from the Endeavor silver stream since January 1, 2013 which will
be for XDM’s account. The letter also provides for two additional contingent
cash payments totaling US$12 million for the Endeavor silver stream upon
achieving certain milestones related to future potential reserve increases and
mine development.

Mitchell J. Krebs, President and Chief Executive Officer of Coeur, said, “This
sale of non-core assets presents a compelling and accretive transaction for
Coeur shareholders. The XDM consideration, even without the contingent
payments, unlocks significant value that has not been reflected in Coeur’s
current share price. The proceeds from this transaction will provide Coeur
with additional capital to selectively invest in high-return internal and
external opportunities, including our ongoing share repurchase program.”

Of the US$55 million in total consideration payable by XDM to Coeur at
closing, US$40 million is allocated to the Endeavor silver stream and US$15
million in cash is allocated to the Cerro Bayo royalty.

Closing is currently expected in the second quarter of 2013, subject to an XDM
financing condition and the negotiation and execution of definitive
agreements, in addition to customary conditions. The sale of the Cerro Bayo
royalty is subject to a right of first refusal held by Mandalay Resources
Corporation (“Mandalay”), the owner and operator of the Cerro Bayo mine. In
the event Mandalay exercises its right of first refusal, XDM would still be
obligated to acquire the Endeavor silver stream.

In May 2005, the Company paid US$44 million for all of the silver production
and reserves (up to 20 million payable ounces) contained at the Endeavor mine
in New South Wales, Australia. As of March 31, 2013, approximately 102% of the
original purchase price has been recovered. In 2012, Endeavor produced 665,816
payable ounces of silver at cash operating costs of US$17.27 per ounce.

In August 2010, the Company sold its subsidiary that controlled the Cerro Bayo
mine to Mandalay. Under the terms of the agreement, Coeur received the
following consideration: (i) US$6 million in cash; (ii) 17,857,143 common
shares of Mandalay; (iii) 125,000 ounces of silver to be delivered in six
equal quarterly installments commencing in the third quarter of 2011 which had
an estimated fair value of US$2.3 million; (iv) a 2% net smelter royalty on
production from the Cerro Bayo mine in excess of a cumulative 50,000 ounces of
gold and 5,000,000 ounces of silver which had an estimated fair value of
US$5.4 million as of December 31, 2012; and (v) existing value added taxes of
US$3.5 million. As part of the transaction, Mandalay also agreed to pay US$6
million of reclamation costs associated with Coeur’s nearby Furioso property.

Raymond James Ltd. is acting as financial advisor and Gibson, Dunn & Crutcher
LLP is acting as legal advisor to Coeur d’Alene Mines Corporation. Haywood
Securities Inc. is acting as financial advisor and Norton Rose CanadaLLP is
acting as legal counsel  to XDM Royalty Corp.

About XDM

XDM is a private emerging precious metals streaming and royalty company that
has transformed from an early stage exploration company with a joint venture
in the Solomon Islands with AngloGold Ashanti (70% AngloGold / 30% XDM). XDM’s
strategy is to become cash flow positive through the acquisition of a
diversified portfolio of various precious metal streams/royalties, targeting
small to mid-sized assets with precious metal streams. Recently, XDM acquired
a 1.0% net smelter royalty on Gold Standard’s Railroad Project in Nevada. XDM
has a team of senior professionals and board members led by Oliver
Lennox-King, Executive Chairman and Director, and Will Ansley, Chief Operating
Officer.

About Coeur

Coeur d’Alene Mines Corporation is the largest U.S.-based primary silver
producer and a growing gold producer. The Company has four precious metals
mines in the Americas generating strong production, sales and cash flow in
continued robust metals markets. Coeur produces from its wholly owned
operations: the Palmarejo silver-gold mine in Mexico, the San Bartolomé silver
mine in Bolivia, the Rochester silver-gold mine in Nevada and the Kensington
gold mine in Alaska. The Company also conducts ongoing exploration activities
in Mexico, Argentina, Nevada, Alaska and Bolivia. In addition, the Company
owns strategic investment positions in eight silver and gold development
companies with projects in North and South America.

Cautionary Statement

This news release contains forward-looking statements within the meaning of
securities legislation in the United States and Canada and which are based on
the expectations, estimates and projections of management of the parties as of
the date of this news release unless otherwise stated. Forward-looking
statements are generally identifiable by use of the words “expect”,
“anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”,
“project”, “should”, “believe”, “plans”, “intends” or the negative of these
words or other variations on these words or comparable terminology. More
particularly, and without limitation, this news release contains
forward-looking statements and information concerning expectations regarding
the consideration to be received pursuant to the transaction, the ability of
Coeur and XDM to negotiate and execute definitive agreements for the
transaction, the ability of XDM to obtain financing for the transaction, the
ability of the parties to consummate the transaction on the terms and in the
manner contemplated thereby, the anticipated benefits of the transaction, the
timing and anticipated receipt of required regulatory approvals for the
transaction, and the intended use of proceeds received from the transaction.
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. Such
factors include, among others, the 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 most recent 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.

Contact:

Coeur d’Alene Mines Corporation
Wendy Yang, 208-665-0345
Vice President, Investor Relations
or
Stefany Bales, 208-667-8263
Director, Corporate Communications
www.coeur.com
 
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