bolivian congress approves morales tax bill

And CDE rises in NY.

November 26, 2007 01:28 PM Eastern Time
Coeur Affirms That Bolivian Congress Has Approved President Morales’ Mining Tax Reform

-- San Bartolomé Remains on Track for February Startup; Sets New Safety Milestones --

COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Coeur d’Alene Mines Corporation (NYSE:CDE) (TSX:CDM) today announced that the Bolivian Congress on Friday approved a reform to the mining tax code, bringing tax certainty to the country’s mining industry and Coeur’s San Bartolomé silver mine in Potosí, Bolivia.

Construction at San Bartolomé, which is nearing three million man hours without a lost time accident, is scheduled for completion and startup in February, 2008, at an annualized rate of 9 million ounces of silver per year.

As reported in newswires late last week, Bolivia's Congress approved a reform to the mining tax code that will increase income tax rates to 37.5 percent from 25 percent. In addition, payments under Bolivia’s Complementary Mining Tax (CMT), which are based on gross revenues and range from 1% to 10% and are tied to metals prices, will now be deductible for tax purposes rather than creditable against income taxes under the previous mining tax code.

“We are pleased that the Bolivian Congress has passed President Morales’ legislation which brings certainty to the mining tax issue, as well as to Coeur’s San Bartolomé project, the largest new pure silver mine in the world,� said Dennis E. Wheeler, Chairman, President and Chief Executive Officer of Coeur. “Coeur considers these tax reforms to be consistent with what the company has utilized in its economic model for the mine. We look forward to startup in February, and the mine’s ongoing contribution to Bolivian worker safety, representative of Coeur’s approach to safe and environmentally sound development.�

The 1,600 strong workforce, made up primarily of Bolivians, is nearing three million man hours without a lost time accident.

San Bartolomé is expected to produce at an annualized rate of approximately 9 million silver ounces per year. In 2007, silver ore reserves were increased by 3.5 million ounces to a total of 155.4 million ounces at June 30. Additional indicated mineral resources increased to 32.3 million silver ounces.

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, Nevada, and Tanzania.

Cautionary Statement: Company press releases may contain numerous forward-looking statements within the meaning of securities legislation in the United States and Canada relating to the company's silver and gold mining business. Such statements are subject to numerous assumptions and uncertainties, many of which are outside the company’s control. Operating, exploration and financial data, and other statements in this document are based on information the company believes reasonable, but involve significant uncertainties as 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 the company's future acquisition 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 the company's filings from time to time with the SEC and the Ontario Securities Commission, including, without limitation, the company's reports on Form 10-K and Form 10-Q. Actual results and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. The company disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. 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.