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BROKEN HILL (AUSTRALIA)

In September 2005, Coeur acquired the silver reserves and production at the Broken Hill Mine in Australia, which is owned and operated by Perilya Broken Hill Limited, a wholly owned subsidiary of Perilya Limited (ASX: PEM) for US$36.0 million.

The transaction is expected to provide Coeur with an additional 2.3 million ounces of average annual silver production at an estimated cash cost of approximately US$2.75 per ounce and 18 million ounces of silver contained in proven and probable reserves. In combination with Coeur’s recently completed acquisition of silver production from the Endeavor mine, the Perilya transaction also serves to increase Coeur’s estimated annual silver production in Australia to more than 3 million ounces.

Located in New South Wales, Australia, the Broken Hill Mine is a zinc/lead/silver ore body that has produced approximately 500 million ounces of silver since its beginnings in 1885, making it one of the most prolific silver producing regions in the world.

The transaction is capped at approximately 24.5 million contained ounces (or 17.2 million payable ounces) of silver to be mined by Perilya at Broken Hill on Coeur’s behalf, providing Coeur with approximately 10 million ounces of upside to the resource base at Broken Hill, representing a 63 percent increase over the current silver reserve levels at the mine.

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