Coeur Shareholders Approve $1.1 Billion Merger with Bolnisi Gold and Palmarejo Silver...

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--(Business Wire)--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 transaction."

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 transaction.

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 www.sedar.com.

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

Copyright Business Wire 2007