Coeur Completes Acquisitions of Bolnisi and Palmarejo



    Combination Creates World's Leading Silver Company

    COEUR D'ALENE, IDAHO, December 21 /CNW/ - Coeur d'Alene Mines Corporation
(NYSE:  CDE) (TSX:CDM) (ASX:CXC) today announced the successful completion of
its acquisitions of Bolnisi Gold NL (ASX:BSG) and Palmarejo Silver and Gold
Corporation (TSX-V:PJO), which creates the world's leading silver company.

    "The acquisitions of Bolnisi and Palmarejo represent a transforming event
for Coeur," said Dennis E. Wheeler, Coeur's Chairman, President and Chief
Executive Officer. "With our San Bartolome silver mine set to begin producing
in early 2008 and the new Palmarejo Project expected to begin contributing
low-cost silver and gold ounces in early 2009, we now are positioned to
provide our shareholders with the potential for exponential growth and value
creation. We are thrilled to complete this transaction and begin 2008 as the
world's unrivaled growth company in silver, with a nearly tripling of silver
production expected in 2009, to approximately 30 million ounces annually."

    The Palmarejo Project is expected to begin production in just over a year
at an annualized rate of approximately 10.4 million ounces of silver and
115,000 ounces of gold per year with cash costs, net of gold by-product
credits, of an estimated ($0.41) per ounce of silver and an initial mine life
of nine years. Exploration continues on the large land package, with current
measured and indicated mineral resources of 88.7 million silver ounces and 1.0
million gold ounces (measured: 5.1 million tonnes at 2.24 grams per tonne gold
and 198 grams per tonne silver; indicated: 9.51 million tonnes at 2.03 grams
per tonne gold and 184 grams per tonne silver) and an additional 61.4 million
ounces of inferred silver mineral resources and 0.7 million inferred gold
ounces (16.1 million tonnes at 1.39 grams per tonne gold and 119 grams per
tonne silver).

    Coeur's Australian-listed CHESS Depositary Interests (CDIs) (ASX:CXC)
began trading on the Australian stock exchange on December 12, 2007, and have
now been added to Australia's S&P/ASX 200 indices.

    The common shares of Palmarejo have been halted for delisting from the
TSX Venture Exchange and the Coeur common shares issued to Palmarejo
shareholders are listed and posted for trading on the Toronto Stock Exchange
as of December 21, 2007.

    About Coeur

    Coeur d'Alene Mines Corporation is one of the world's leading silver
companies and also a significant gold producer. Coeur, which has no silver or
gold production hedged, is presently constructing two of the world's largest
silver mines - San Bartolome in Bolivia and Palmarejo in Mexico; operates two
underground mines in southern Chile and Argentina and one surface mine in
Nevada; and owns non-operating interests in two low-cost mines in Australia.
The Company also owns a major gold project in Alaska and conducts exploration
activities in Argentina, Bolivia, Chile, Mexico and Tanzania. Coeur common
shares are traded on the New York Stock Exchange under the symbol CDE, the
Toronto Stock Exchange under the symbol CDM, and its CHESS Depositary
Interests are traded on the Australian Securities Exchange under symbol CXC.

    Cautionary Statement

    This press 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 press release 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, 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 SEC and the Ontario Securities Commission,
including, without limitation, Coeur's reports on Form 10-K and Form 10-Q and
Palmarejo's Annual Information Form. 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.

    Technical Information

    The disclosure regarding the Palmarejo Project, and the contribution to
production by Palmarejo in the overall expectations of silver production of
Coeur in 2009, are based on a preliminary assessment on the Palmarejo project
that is summarized in a September 17, 2007, technical report. The report
outlines the basis for the preliminary assessment and the qualifications and
assumptions underlying the preliminary assessment, and is available for review
on SEDAR. The preliminary assessment is preliminary in nature and includes
inferred mineral resources that are considered too speculative geologically to
have the economic considerations applied to them that would enable them to be
categorized as mineral reserves, and there is no certainty that the
preliminary assessment will be realized.

    Donald J. Birak, Coeur's Senior Vice President of Exploration, is the
qualified person responsible for 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 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.

    This press release uses the terms "Measured", "Indicated" and "Inferred"
Resources. U.S. investors are advised that while such terms are recognized and
required by Canadian regulations, the Securities and Exchange Commission does
not recognize them. "Inferred Resources" have a great amount of uncertainty as
to their existence and as to their economic and legal feasibility. Under
Canadian rules, estimates of Inferred Resources may not form the basis of
feasibility or other economic studies. U.S. investors are cautioned not to
assume that all or any part of Measured or Indicated Resources will ever be
converted into reserves. U.S. investors are also cautioned not to assume that
all or any part of an Inferred Mineral Resource exists, or is economically or
legally mineable.




For further information:

For further information: Coeur d'Alene Mines Corporation Director -
Investor Relations Tony Ebersole, 208-665-0777 or Senior Vice President -
Corporate Development Mitchell J. Krebs, 888-545-1138

Organization Profile

COEUR D'ALENE MINES CORPORATION

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