-- Significant Impact to Companywide Reserves, Cash Flow and Production --

Coeur d’Alene Mines Corporation (NYSE:CDE)(TSX:CDM)(ASX:CXC) today announced results from the completed feasibility study for its Palmarejo silver/gold open pit/underground project in Mexico.

This study reflects results from geologic, engineering and economic analyses for only the Palmarejo deposit, which is one of three large silver and gold deposits identified to-date in the district. The Company plans to update this study later this year, which it expects will further increase mineral reserves, mineral resources, production levels, mine life and cash flow.

The following tables summarize the Palmarejo estimated reserves, resources, production and cash flows and their impact to expected companywide levels. Initial reserves at Palmarejo have increased total companywide reserves 29% to 278.8 million. Production, beginning in the first half of 2009, is expected to increase companywide silver production 28% next year to an estimated 23.6 million ounces. 2009 operating cash flow from Palmarejo is anticipated to add $116.0 million to Coeur’s total expected operating cash flow of $120 million for total projected 2009 operating cash flow of $236.0 million based on a $17/oz silver price and $850/oz gold price.

“We are pleased to announce the completion of the feasibility study for the initial phase of our Palmarejo project, our next major new mine and one of the largest and highest-quality advanced silver/gold projects in the world,” said Dennis E. Wheeler, Chairman, President and Chief Executive Officer. “Construction remains on-schedule with an expected first-half 2009 startup. Once in production, Palmarejo will add significantly to Coeur’s growing silver and gold production profile, reduce companywide cash costs, and substantially boost our cash flow. In addition, we look forward to reporting continued increases to Palmarejo’s reserves and resources as our drilling programs continue, which will continue to generate additional value and lead to more years of silver and gold production at Palmarejo.”

Donald Birak, Senior Vice President of Exploration for Coeur added, “These new proven and probable mineral reserve results are just for the Palmarejo deposit, one of the three large mineral deposits identified to-date – Palmarejo, Guadalupe and La Patria – in this large and prospective property. We expect to increase these initial reserves during the remainder of the year, and beyond, through continued exploration on the district’s multiple exploration targets. New mineral resource models are currently underway for both the Guadalupe and La Patria silver and gold-bearing structures and are expected to contribute to future mineral reserves through additional drilling and engineering analysis.”

Construction & Operations Update

• Construction activity is continuing on-schedule toward a first-half 2009 startup.
• Earthwork for a single-level process facility has been completed and concrete work is well-advanced.
• Structural, tank and piping installation has begun in the flotation reagent area.
• Construction contract for mechanical and piping, installation has been awarded with mobilization to begin shortly.
• Preliminary earthworks on the phase one tailings and environmental control dam have commenced.
• Earthworks for main operation camp are now completed and construction of a 400 man camp is underway with phase one nearing completion.
• Upgrade and maintenance of the main access road to site has been completed.
• Road access to tailings dam location and related infrastructure advancing as planned.
• North and south portals for underground mine are well-established. A total of 560 meters of development achieved at the end of May.
• Open pit mine pre-stripping operations are progressing well.
• Full mining fleet has been commissioned.
• Fabrication for modular metallurgical laboratory is underway and preliminary site earthwork completed.

Additional Mineral Resources - Palmarejo District

The feasibility study was prepared by Coeur’s technical staff. Mining methods, plans and mining operating costs were reviewed by Golder & Associates. Aker Kvaerner reviewed the project’s capital costs and operating processing costs.

About Coeur

Coeur d’Alene Mines Corporation is one of the world’s leading silver companies and also a significant gold producer, with anticipated 2008 production of approximately 16 million ounces of silver, a 40% increase over 2007 levels. Coeur, which has no silver or gold production hedged, is now producing silver at the world’s largest pure silver mine – San Bartolomé in Bolivia – and is currently constructing another world-leading silver mine – Palmarejo in Mexico. The Company also 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 the symbol CXC.

Cautionary Statement

This press release contains forward-looking statements within the meaning of securities legislation in the United States, Canada, and Australia, 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 presentation 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, the Canadian securities regulators, and the Australian Securities Exchange, including, without limitation, Coeur’s reports on Form 10-K and Form 10-Q. 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.

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 press 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.

Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as “measured,” “indicated,” and “inferred” “resources,” that are recognized by Canadian and Australian regulations, but that SEC guidelines generally prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from the SEC’s website at http://www.sec.gov/edgar.shtml.

Coeur d’Alene Mines Corporation
Investor Contact:
Karli Anderson
Director of Investor Relations
208-665-0345
or
John Blue
Director, Investor Relations Australia and Asia
011-612-9223-5053
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Director of Corporate Communications
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