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TANZANIA

Since the mid-1990s the Lake Victoria Goldfields of the Tanzania Shield, has emerged as a host to world-class gold deposits helping to elevate Tanzania to the third largest gold producer in Africa. The gold deposits in the Lake Victoria region are contained in remnant belts of altered Archean-aged volcanic, intrusive and sedimentary rock, often referred to as greenstone. Currently eight known mines or advanced stage projects are in operation and, combined, account for over 25 million ounces of proven and probable gold mineral reserves with additional mineral resources adding another 25 million ounces.

In January 2004, Coeur was granted 10 exploration tenements in the LakeVictoria Goldfields Region. Furthermore, we leased two groups of contiguous Primary Mining Licenses and were granted a surrounding prospecting license that covers an approximate 3 square kilometer areaat Sargurwa Hill.

Our initial exploration program consisted of acquisition and analysis of Aster and regional-scale geophysical data and field mapping to more closely define the limits of greenstone terrain, identify large scale structural and alteration signatures, and obtain first pass geochemical data. As a result of this work we retained eight of the ten tenements for further exploration, totaling 73,135 hectares. Two of the most promising properties are Kiziba Hill and Saragurwa located on the western extension of the greenstone belt that hosts the Geita gold mine. in 2004 and 2005, a total of 1519 soil and trench samples were
collected on our Kiziba Hill tenement.

In the third quarter of 2006, we completed 13,000 meter rotary air blast (RAB) drill program on Kiziba Hill designed to pierce through laterite and saprolite cover to obtain samples for geochemical analyses in bedrock. A total of 586 holes were drilled with an average depth of 22.9 meters. The drilling encountered variable thickness of laterite and saprolite averaging slightly over 5 meters thick. RAB samples revealed a WNW-trending long corridor, over 5 km long by 3 km wide, of mafic volcanic rocks that are variably altered and sheared with coincident gold anomalies occurring in sheared and altered contact zones between altered quartz-feldspar porphyry dikes and mafic volcanic flows and in +1 meter-wide quartz veins. Examples of the anomalous values obtained from three different holes are 7 meters grading 1.2 g/t gold and 15 meters of 0.6 g/t gold in altered contact zones between basalt and quartz feldspar porphyry and 1 meter of 7.76 g/t gold in a quartz vein. All samples were sent to ALS Chemex and were prepared for analysis at the ALS Chemex Mwanza, Tanzania facility and were assayed at the ALS-Chemex office in Perth, Western Australia for gold by a fire assay method. As part of Coeurs routine QA/QC program 255 blanks, 253 duplicates and 253 standards were analyzed to confirm the ALS results.

In December 2006, we commenced a drilling program on Saragurwa and Kiziba Hill to test the new RAB and other anomalies. Over 13,000 meters of combined core/reverse circulation is planned, continuing into 2007.

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