Coeur Reports Year-End 2021 Mineral Reserves and Resources

CHICAGO--(BUSINESS WIRE)--Feb 16, 2022--Coeur Mining, Inc. ('Coeur' or the 'Company') (NYSE: CDE) today reported year-end 2021 proven and probable reserves of 3.1 million ounces of gold, 238.2 million ounces of silver, 296.1 million pounds of zinc and 193.2 million pounds of lead. Year-over-year gold reserves were essentially unchanged, net of depletion, driven by a higher cut-off grade assumption at Rochester offset by increases at Wharf and Palmarejo. Year-over-year silver reserves decreased due primarily to the higher cut-off grade applied at Rochester partially offset by an increase at Palmarejo.Measured and indicated resources totaled 3.4 million ounces of gold, 285.0 million ounces of silver, 589.4 million pounds of zinc and 312.6 million pounds of lead, reflecting double-digit year-over-year increases across all metals driven by additions from Palmarejo, Silvertip and Kensington.

Inferred resources were 2.7 million ounces of gold, 91.2 million ounces of silver, 422.3 million pounds of zinc and 200.7 million pounds of lead. Year-over-year gold and silver inferred resources declined due to the higher cut-off grade assumption used at Rochester, partially offset by increases at Kensington and Wharf. Silvertip's silver, zinc and lead inferred resources increased 48%, 37% and 40%, respectively.Key Highlights 1Success from five-year, nearly $240 million investment in exploration – Infill-focused drilling programs successfully replaced 1.8 million and 56.4 million ounces of cumulative gold and silver production, respectively, as well as added an additional 0.5 million ounces of gold and 85.4 million ounces of silver reserves. Expansion-focused drilling programs successfully added 1.7 million and 113.4 million ounces of measured and indicated gold and silver resources, respectively, and an additional 1.8 million and 31.9 million ounces of new inferred gold and silver resources, respectively.

Resource conversions at Palmarejo and Wharf led to reserve increases net of depletion – Successful infill drilling in the Hidalgo Zone at Palmarejo drove reserve increases in gold and silver of approximately 4% and 5%, respectively, in 2021. A roughly 18% increase in gold reserves at Wharf has added two years to its mine life, further enhancing the overall return on investment from the initial $99 million cash acquisition in 2015Significant high-grade resource increase at Silvertip – Silver, zinc and lead measured and indicated resources increased year-over-year by approximately 51%, 33% and 44%, respectively, at the Silvertip property in British Columbia.

Silver, zinc and lead inferred resources grew by roughly 48%, 37% and 40%, respectively, during the same periodUpdated reserves at Rochester support robust, 13-year reserve-only mine life in the top mining jurisdiction in the world – The Company raised its cut-off grade assumption to reflect higher anticipated operating costs and updated gold and silver recovery assumptions as part of its recently completed re-baselined Rochester expansion project reviewSterling and Crown properties in southern Nevada remain a key area of focus in 2022 – Resources remain relatively unchanged following a significant lag in assay results due to assay laboratory delays experienced throughout 2021. The Company is beginning to receive assay results from the 2021 campaign with encouraging drill results from C-Horst, SNA, Daisy and Secret Pass.

Infill and expansion drilling is planned to continue throughout 2022 with the goal of an updated resource at Crown zone, including a maiden resource for the C-Horst discovery at year-end'One of the largest ongoing multi-year exploration campaigns in the precious metals sector continued to drive organic growth throughout our portfolio of diversified North American assets,' said Mitchell J. Krebs, Coeur's President and Chief Executive Officer. 'Over the last five years, Coeur has invested approximately $240 million in exploration capped off by our largest program in Company history last year, totaling $71 million.

This elevated level of investment in exploration during the five-year period – nearly 73% focused on resource expansion programs – has dramatically increased our inventory of reserves and resources, which we expect will translate into longer mine lives and attractive returns in coming years.'We plan to invest an additional $40 million Companywide of exploration in 2022 – approximately half focused on infill drilling and half on resource expansion drilling – in an effort to realize further reserve and resource additions throughout Coeur's long-lived asset portfolio.

These priorities include the follow-up of recent exploration success targeting higher-grade gold zones at West Rochester with the potential to be incorporated into future mine plans for the expanded Rochester operation. In addition, we will maintain an aggressive drilling program at Silvertip. With continued exploration success, coupled with successful study work in support of a larger scale operation, Silvertip holds the potential to be Coeur's next growth driver following the completion of the Rochester expansion.

Note: Companywide five-year cumulative gold and silver production totaled 1.8 million and 56.4 million ounces, respectively. Coeur's gold, zinc, and lead price assumptions for year-end 2021 reserves remained unchanged from a year ago at $1,400 per ounce, $1.15 per pound and $0.95 per pound, respectively. The Company increased its silver price assumption for year-end 2021 reserves from $17.00 per ounce to $20.00 per ounce.

About Coeur
Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with four wholly-owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska and the Wharf gold mine in South Dakota. In addition, the Company wholly-owns the Silvertip silver-zinc-lead mine in British Columbia and has interests in several precious metals exploration projects throughout North America.Cautionary Statements This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding exploration efforts and plans, exploration expenditures, growth, mine lives, returns, grade, mine expansion and development plans, and resource delineation, expansion, and upgrade or conversion. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the risk that anticipated additions or upgrades to reserves and resources are not attained, the risk that planned drilling programs may be curtailed or canceled due to budget constraints or other reasons, the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), changes in the market prices of gold, silver, zinc and lead and a sustained lower price environment, the uncertainties inherent in Coeur's production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), ground conditions, grade and recovery variability, any future labor disputes or work stoppages, the uncertainties inherent in the estimation of mineral reserves, the potential effects of the COVID-19 pandemic, including impacts to the availability of our workforce, continued access to financing sources, government orders that may require temporary suspension of operations at one or more of our sites and effects on our suppliers or the refiners and smelters to whom the Company markets its production, changes that could result from Coeur's future acquisition of new mining properties or businesses, the loss of any third-party smelter to which Coeur markets its production, the effects of environmental and other governmental regulations, the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, Coeur's ability to raise additional financing necessary to conduct its business, make payments or refinance its debt, as well as other uncertainties and risk factors set out in filings made from time to time with the United States Securities and Exchange Commission, and the Canadian securities regulators, including, without limitation, Coeur's most recent report on Form 10-K. 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.The scientific and technical information concerning our mineral projects in this news release have been reviewed and approved by a 'qualified person' under S-K 1300, namely our Senior Director, Technical Services, Christopher Pascoe. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and mineral resources for Coeur's material properties included in this news release, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant factors, please review the Technical Report Summaries for each of the Company's material properties which are available at www.sec.gov.NotesThe potential quantity and grade for the deposits described herein are conceptual in nature. There is insufficient exploratory work to define a mineral resource and it is uncertain if further exploration will result in the applicable target being delineated as a mineral resource.2021 reserves and resources were determined in accordance with Item 1300 of SEC Regulation S-K. Reserves and resources for prior periods were determined in accordance with Canadian National Instrument 43-101. Both sets of reporting standards have similar goals in terms of conveying an appropriate level of confidence in the disclosures being reported, but the standards embody slightly different approaches and definitions.Gold equivalence assumes gold-to-silver, -lead, -zinc ratios of 1:60, 1:1,200 and 1:1,000, respectively.2021 Year-End Proven and Probable ReservesGradeContainedGoldSilverZincLeadGoldSilverZincLead Short tons(oz/t)(oz/t)(%)(%)(oz)(oz)(lbs)(lbs)PROVEN RESERVES Palmarejo         3,754,0000.0664.39-   -          247,000      16,480,000                       -                       -Rochester     386,008,0000.0030.39-   -          998,000    149,652,000                       -                       -Kensington            656,0000.191--   -          125,000                       -                       -                       -Wharf       27,976,0000.022--   -          621,000                       -                       -                       -Silvertip            186,000-12.0110.14%8.53%                  -        2,233,000      37,647,000      31,656,000Total     418,580,0000.0050.40      1,991,000    168,365,000      37,647,000      31,656,000PROBABLE RESERVES Palmarejo       12,139,0000.0523.78-   -          637,000      45,875,000                       -                       -Rochester       31,769,0000.0030.36-   -            82,000      11,593,000                       -                       -Kensington            690,0000.197--   -          136,000                       -                       -                       -Wharf         8,306,0000.028--   -          231,000                       -                       -                       -Silvertip         1,618,000-7.677.98%4.99%                  -      12,403,000    258,418,000    161,569,000Total       54,522,0000.0201.28      1,086,000      69,871,000    258,418,000    161,569,000PROVEN AND PROBABLE RESERVES Palmarejo       15,893,0000.0563.92-   -          884,000      62,355,000                       -                       -Rochester     417,777,0000.0030.39-   -       1,080,000    161,245,000                       -                       -Kensington         1,346,0000.194--   -          261,000                       -                       -                       -Wharf       36,283,0000.023--   -          852,000                       -                       -                       -Silvertip         1,804,000-8.118.21%5.36%                  -      14,636,000    296,065,000    193,225,000Total     473,102,0000.0070.50      3,077,000    238,236,000    296,065,000    193,225,000 Notes to above Mineral Reserves:The Mineral Reserve estimates are current as of December 31, 2021 and are reported using the definitions in Item 1300 of Regulation S–K (17 CFR Part 229) (SK1300) and were prepared by the company's technical staff.Assumed metal prices for 2021 Mineral Reserves were $20.00 per ounce of silver, $1,400 per ounce of gold, $1.15 per pound of zinc, $0.95 per pound of lead.Palmarejo Mineral Reserve estimates use the following key input parameters: Assumption of conventional longhole underground mining; reported above a variable gold equivalent cut-off grade that ranges from 1.94–2.51 g/t AuEq and an incremental development cut-off grade of 1.08 g/t AuEq; metallurgical recovery assumption of 93.1% for gold and 81.9% for silver; mining dilution assumes 1 meter of hanging wall waste dilution; mining loss of 5% was applied; variable mining costs that range from US$36.01–US$41.75/tonne, surface haulage costs of US$3.52/t, process costs of US$27.29/tonne, general and administrative costs of US$11.00/tonne, and surface/auxiliary support costs of US$3.19/tonne. Excludes the impact of the Franco-Nevada gold stream agreement at Palmarejo in calculation of Mineral Reserves.Rochester Mineral Reserve estimates are tabulated within a confining pit shell and use the following input parameters: Rochester oxide recovery Au = 85% and Ag = 59%; Nevada Packard oxide recovery Au = 95% and Ag = 61%; with a net smelter return cutoff of $2.55/st oxide and US$2.65/st sulfide, where the NSR is calculated as resource net smelter return (NSR) = silver g