Exploration

ARGENTINA

The Martha District and Mine is located in the Santa Cruz Province of Argentina, about 30 miles (48 km) northeast of the town of Gobernador Gregores. Coeur acquired the property in 2002 through the purchase of a subsidiary of Yamana Resources Inc. The main Martha property consists of continuous block of 54,150 hectares (133,805 acres) of exploration concessions; 35,600 hectares (88,968 acres) of discovery claims; and 142 hectares (351 acres) of exploitation claims.

Prior to January 1, 2008 we transported the Martha mine ore approximately 600 miles by road for processing at the Cerro Bayo mill in Chile. In 2007, the Company commenced the construction of a 240 ton per day flotation mill which was completed in December 2007 and produces a flotation concentrate which is shipped to third party smelters.

During 2007 we spent $2.0 million on exploration and $0.8 million on reserve development at the Martha mine, and $2.4 million at our other properties in the Santa Cruz Province, to discover new silver- and gold-bearing veins and define new reserves. In 2007, exploration defined extensions at depth and on strike on the Martha, R4, Catalina, and Francisca veins, and discovered ore-grade silver and gold mineralization in the new Isabel and Betty Sur structures which were a major focus of the year’s program. A total of 22,020 meter (72,243 feet) of drilling was completed in 2007. During 2008, we expect to spend $6.8 million on exploration for the discovery of new mineralization and reserve development, across our large land holdings in the province of Santa Cruz, including approximately $3.5 million at Martha.

Silver and gold mineralization is hosted in epithermal quartz veins and veinlets within generally sub-horizontal volcanic rocks of the Chon Aike Formation. The veins and veinlets occur as sub-parallel clusters largely trending west-northwest and dipping steeply to the southwest. The main ore minerals of silver and gold are silver sulfosalt minerals, argentite, electrum (a naturally-occurring gold and silver alloy) and native silver.

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