Coeur Shareholders Approve $1.1 Billion Merger with Bolnisi Gold and Palmarejo Silver and Gold, Creating World's Leading Silver Company

    Transaction Expected to Close by Year-End

    COEUR D'ALENE, IDAHO, December 7 /CNW/ - Coeur d'Alene Mines Corporation
(NYSE:  CDE) (TSX:CDM) today announced that its shareholders have overwhelmingly
approved the proposals related to the acquisitions of Bolnisi Gold NL
(ASX:BSG) and Palmarejo Silver and Gold Corporation (TSX VENTURE:PJO) at a
Special Meeting held this afternoon in Coeur d'Alene, Idaho.

    "We are extremely pleased with the outcome of today's vote and the
addition to Coeur of the Palmarejo silver and gold project, which is expected
to increase company-wide silver production to nearly 30 million ounces by
2009, and at very low costs," said Dennis E. Wheeler, Coeur's Chairman,
President and Chief Executive Officer. "The addition of the Palmarejo project
to the company's existing asset mix will transform Coeur into a high-growth,
low-cost, long-life, and sustainable world-leading silver company with
exciting exploration potential. We would like to thank our shareholders for
their support and we look forward to delivering the benefits of this

    The final tabulation indicates that more than 88% of the shares voted
were cast in support of the proposals on which the company's shareholders were
asked to vote. Earlier this week, shareholders for both Bolnisi and Palmarejo
voted overwhelmingly in favor of the transaction.

    As a result of this transaction, Coeur's Australian-listed CHESS
Depositary Interests (CDIs) (ASX:CXC) will be added to Australia 's S&P/ASX
200 indices.

    The Palmarejo project is expected to begin production in early 2009 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 bi-product, 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
measured and indicated gold ounces and an additional 61.4 million ounces of
inferred silver mineral resources and 0.7 million inferred gold ounces.

    About Coeur

    Coeur d'Alene Mines Corporation is one of the world's leading primary
silver producers and a growing gold producer. The company has mining interests
in Alaska, Argentina, Australia, Bolivia, Chile, Mexico, Nevada, and Tanzania.

    Cautionary Statement

    This press release contains forward-looking statements within the meaning
of securities legislation in the United States and Canada, including
statements regarding the terms and conditions of the proposed transaction and
anticipated operating results. Such statements are subject to numerous
assumptions and uncertainties, many of which are outside the control of Coeur,
Bolnisi or Palmarejo, as the case may be. Operating, exploration and financial
data, and other statements in this press release are based on information that
Coeur, Bolnisi or Palmarejo, as the case may be, believes is reasonable, but
involve significant uncertainties affecting the business of Coeur, Bolnisi or
Palmarejo, as the case may be, 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. Additionally, there are
risks that the parties will not proceed with the proposed transaction, that
the ultimate terms of the proposed transaction will differ from those that
currently are contemplated, and that the proposed transaction will be not be
successfully completed for any reason (including the failure to obtain the
required approvals or clearances from regulatory authorities). 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, Bolnisi and Palmarejo disclaim any intent or obligation to
update publicly such forward-looking statements, whether as a result of new
information, future events or otherwise. Additionally, Coeur, Bolnisi and
Palmarejo undertake no obligation to comment on analyses, expectations or
statements made by third parties in respect of Coeur, Bolnisi and Palmarejo,
their financial or operating results or their securities or the proposed

    Donald J. Birak, Coeur's Senior Vice President of Exploration, is the
qualified person responsible for the preparation of the scientific and
technical information in this document. Mr. Birak has reviewed the available
data and procedures and believes the collection of exploration data and
calculation of mineral reserves reported in this document was conducted in a
professional and competent manner. 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 project as filed on SEDAR at

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

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