Coeur Signs Agreement to Purchase High-grade Martha Silver Mine to Boost Cerro Bayo Production 50 Percent.

Business Editors

COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Feb. 27, 2002

Martha's low-cost ounces will increase Coeur's 2002 forecast total

silver production 20% to nearly 16.0 million ounces

Coeur d'Alene Mines Corporation (NYSE:CDE) is pleased to announce that the Company has reached agreements in principle to acquire 100 percent interests in the Martha high-grade underground silver mine and other silver exploration properties located in Argentina, approximately 270 miles east of the Company's Cerro Bayo mine, and to make a strategic investment in Yamana Resources Inc. ("Yamana"), a mining company with holdings in Argentina.

The Martha mine contains 27,000 tons of very high-grade reserves and resources at greater than 150 ounces of silver per ton with further exploration potential. These transactions are subject to satisfactory completion of due-diligence, regulatory approval and signing of definitive agreements.

Upon completion of final documentation, Coeur intends to immediately commence shipment of Martha mine's stockpiled high-grade ore to its 100 percent-owned Cerro Bayo mine in Southern Chile, for processing. Production at Cerro Bayo is scheduled to begin in May of this year and was expected to produce over 82,000 gold equivalent ounces in 2002 at a total cash cost of under $150 per ounce. On a gold equivalent basis, the acquisition of the Martha mine is expected to increase Cerro Bayo's 2002 production 50 percent to 123,000 gold equivalent ounces and even further decrease cash operating costs.

Under the terms of the agreements, Coeur will acquire 100 percent of Yamana-owned Compania Minera Polimet S.A., ("Polimet"), an Argentinean corporation, which owns the Martha mine and other silver exploration properties for total cash consideration of US$2.5 million. The payment will be made to Northgate Exploration Ltd. ("Northgate") in order to satisfy Yamana's total outstanding indebtedness to Northgate. Additionally, Coeur will acquire ten million common shares of Yamana, equivalent to approximately 10 percent of Yamana on a fully diluted basis, for US$600,000. As part of this investment, Dennis E. Wheeler, Coeur's Chairman, President, and Chief Executive Officer, has agreed to join Yamana's Board of Directors.

Mr. Wheeler stated, "This transaction will expand our exciting Cerro Bayo operation by adding over 2.5 million ounces of silver production in 2002 at extremely low cash costs. Martha's low-cost ounces will increase Coeur's 2002 forecast of total silver production by approximately 20 percent to nearly 16.0 million ounces and generate an estimated US$9.0 million of additional cash flow from existing reserves and resources at Martha. In addition, we believe that this strategic investment in Yamana, which holds a highly prospective property package of 138,000 acres, will create meaningful value for Coeur's shareholders over the coming months and years. This transaction confirms our strategic plan to grow through highly-selective opportunities focused on reducing Coeur's operating costs, increasing silver production, and strengthening cash flows."

Coeur d'Alene Mines Corporation is a leading international low-cost primary silver producer, as well as a significant producer of gold. The Company has mining interests in Nevada, Idaho, Alaska, Chile and Bolivia.

This document contains numerous forward-looking statements relating to the Company's silver and gold mining business. The United States Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for certain forward-looking statements. 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, 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, and risks inherent in the ownership and operation of, or investment in, mining properties or businesses in foreign countries. 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 these forward-looking statements, whether as a result of new information, future events or otherwise.