Class Action suit filed against Coeur D'Alene Mines Corporation and its officers, directors and outside auditors alleging misrepresentations and false financial statements.

SAN DIEGO--(BUSINESS WIRE)--July 2, 1997--A class action has been commenced in the United States District Court for the District of Colorado on behalf of those who purchased Coeur d'Alene Mines Corporation ("Coeur d'Alene") publicly traded equity and debt securities between January 9, 1995 and July 11, 1996.

The complaint charges Coeur d'Alene and certain of its officers, directors and outside auditors, Ernst & Young LLP with violations of the federal securities laws. The complaint alleges that during the Class Period, defendants artificially inflated the price of Coeur d'Alene's publicly traded equity and debt securities by representing that Coeur d'Alene: (i) had improved its financial results by reducing its losses during 1994 and had reached profitability during 1995; (ii) was strengthening its balance sheet by increasing its assets; (iii) was operating its Golden Cross gold mine in New Zealand (the "Golden Cross Mine") at a lower cost per ounce of gold produced than in prior years and would achieve gold production at Golden Cross in 1996 of about 77,000 ounces; (iv) was completing its new Fachinal mine in Chile, on time and under budget; (v) was continuing to pay its $.15 per share annual common stock dividend due to its strong financial condition and cash flow; and (vi) was on track to achieve strong cash flow, net income and earnings per share growth in 1996 and 1997. These positive statements caused Coeur d'Alene's stock price to increase from $14-1/2 per share at the beginning of the Class Period to a Class Period high of $25-3/4 and enabled Coeur d'Alene to convert $75 million of its outstanding 7% convertible debentures into Coeur d'Alene common stock, eliminating some $5 million in annual interest payments, sell over $150 million in new convertible Coeur d'Alene equity securities to the public and use Coeur d'Alene stock to acquire a 35% interest in another gold mining company.

On July 10, 1996, Coeur d'Alene stunned investors by revealing that it would write off its entire $53 million investment in Golden Cross, that gold production at Golden Cross had decreased by 40% and that its ongoing operating costs there would increase dramatically, due to massive expenditures necessary to try to remedy serious structural problems with the main and back-up tailings dams at Golden Cross, which were unstable and in danger of failing. The Company was also forced to admit that the Fachinal mine never reached commercial production during 1996 due to operational and personnel problems, produced only 25,000 ounces of gold in 1996 and operated at a $7 million cash flow deficit through year-end 1996. As a result, Coeur d'Alene suffered huge losses exceeding $54 million in 1996, which losses have continued into 1997, its cash flow in 1996 decreased to just $7.7 million from $20 million in 1995 and Coeur d'Alene has had to eliminate its common stock dividend. Upon the revelation of the Golden Cross write-off in July 1996, securities analysts downgraded Coeur d'Alene stock and the price of Coeur d'Alene common stock fell to $15-1/2 per share, a 45% decline from its Class Period high of $25-3/4 per share and below where it sold at the beginning of the Class Period.

Plaintiff seeks to recover damages on behalf of all purchasers of Coeur d'Alene's publicly traded equity and debt securities during the Class Period (the "Class"). Plaintiff is represented by two law firms, including Milberg Weiss Bershad Hynes & Lerach LLP, who has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Milberg Weiss has been actively engaged in commercial litigation, emphasizing securities and antitrust class actions, for more than 20 years. The firm has offices in New York, San Diego, San Francisco and Los Angeles and is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to major positions in complex multi-district or consolidated litigations. Milberg Weiss has taken a lead role in numerous important actions on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion. Visit the firm's website at http://www.milberg.com .

If you are a member of the Class described above, you may, no later than 60 days from today, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Milberg Weiss at 800/348-6192 or via e-mail at [e-mail] .

CONTACT: Milberg Weiss Bershad Hynes & Lerach LLP

William Lerach or Darren Robbins, 800/348-6192

[e-mail]