Good afternoon, my name is Jennifer, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coeur d'Alene Mines Second Quarter 2007 Earnings Release Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session (Operator Instructions). Thank you. Mr. Ebersole, you may begin your conference.

Good day, everyone. I'm Tony Ebersole, Director of Investor Relations for Coeur. Thank you for joining us on today's call to discuss the Company's results for the second quarter 2007. In accordance with our standard practice, this call is also being broadcast live on the Internet through our website, www.Coeur.com. Where we have also posted the slides that accompany our prepared remarks. Telephonic replay of the call will be available for one week afterward on our web site. Today's presenters include Dennis Wheeler, Chairman, President and Chief Executive Officer, Jim Sabala, Executive Vice President and Chief Financial Officer, and Don Birak, Senior Vice President, Exploration. Also available is Richard Weston, Senior Vice President of Operations. Any forward-looking statements made today by management come under the Securities Legislation in the United States and Canada and involve a number of risks that could cause actual results to differ from projections. With that, I would like to turn the call over to Dennis.

Thanks, Tony. Before commenting on the second quarter results, I’d like to first make note of a transition at Coeur that has taken place this month. Coeur's Senior Vice President, Harry Cougher, is retiring after more than 40 years in the mining business, the past seven of which were with Coeur and most recently the Head of North American mining operations. Harry is a legendary figure in the north Idaho's mining industry, starting with the Bunker Hill Mine here about 40 years ago, and in 2001, we were able to persuade Harry to bring his talents to Coeur's Silver Valley. I don't think there is a more knowledgeable or respected person in our mining industry, and especially when it comes to underground mining. We miss Harry as a colleague and a friend, and certainly wish him the best. Richard Weston has already transitioned into Harry's position. He is formerly the Head of Coeur's Australian operations, a mining engineer with more than 30 years of operations and project development experience, most recently gained through his work at Barrick and Coeur. And in addition to overseeing our operations, Richard is heading up the joint project development committee established for the Bolnisi and Palmarejo transactions, our newest avenue for growth. We look forward, clearly, to Richard's leadership and his future participation in these conference calls. Now, let's talk about our second quarter results. Net income close to $12 million with operating cash flow of $11.5 million, with cash and short-term investments remaining very healthy at $272 million, more than enough to fund the completion of our growth projects. Production, especially of gold ounces, is expected to accelerate through the remainder of the year, with steadily improving cash costs. Of course, our metal markets remain strong, and at levels that enable the company to…

Thank you, Dennis. At our Rochester mine in Nevada, silver production was slightly higher than the previous year's second quarter. Cash costs decreased to $2.54 per ounce compared to $2.61 per ounce in the year earlier period. Cash costs also declined 48% from the first quarter of this year, which is the trend the company expects to continue during the second half of the year. Gold production was lowered in the recent quarter compared to a year ago as anticipated in the heat leach model due to residual leaching. At the Cerro Bayo mine in Chile, silver production was lower and gold production was higher as compared to the second quarter of 2006. Silver production was down as a consequence of conditioned experience during the company's transition into wider mineralized zones, which are more amenable to mechanized mining methods, a process that commenced late in the second quarter of 2007. Both silver and gold production levels are expected to increase for the remainder of the year, with lowering cash costs. At our Martha mine in Argentina, silver and gold productions were above the levels of the year-ago quarter and sharply above the levels of the first quarter of 2007, due to the efficient mining of higher grade ores and an increase in tons mined. Silver and gold production was up nearly 30% both from the previous quarter and from the second quarter last year. Silver cash costs were up slightly in the recent quarter from the year ago period due to higher labor costs and taxes, including increased royalties that result from the benefit we are receiving from higher metal prices realized in the second quarter of 2007, compared to the first quarter of 2006. Significant construction progress was made on the new $13.9 million mill facility at Martha, which…

Thanks, Jim. As Dennis mentioned earlier, the Coeur exploration program, which is at one of its highest historic budget levels this year, has returned very positive results in the first half of the year. In our reserve development program, over 8,400-meters of drilling took place at Cerro Bayo, and Martha during the quarter. Cerro Bayo contained proven and probable mineral reserves, increased to 9.3 million silver ounces and 157,000 gold ounces at mid year, which, taking into account the first half production resulted in a 64% increase in silver ounces, and a 46% increase in gold ounces, relative to year-end 2006. At the high grade Martha mine, contained proven and probable mineral reserves increased to 7.6 million silver ounces and 10,500 gold ounces at midyear. This again is 49% increase in silver ounces and a 43% increase in gold ounces relative to year-end 2006. In addition to these reserve development activities over 12,500-meters were drilled at Cerro Bayo and Martha to discover and define new mineral resources. A significant outcome of this work was discovery of three new vein systems, Dagny, Fabiola, and Coyita, these three veins are located less than one kilometer east of the Cerro Bayo mill facility. At quarter's end, a total of 5 holes were completed on Dagny all of which encumbered ore grade, silver and gold. Drilling continues in the area and I'm pleased to report favorable new results from this work, as you will see in the following three slides. The first slide is a map of the location of the new veins and significant new data. Note the good drill results from a hole at Fabiola just completed west of Dagny. The next slide is a photo of a second quarter co-hole from Dagny with analytical results shown. This high-grade intercept occurs 100-meters…

Turning to slides 22 through 24, you'll note the progress of San Bartolome. At San Bartolome, the work crew is consisting almost entirely of Bolivian workers; continue to efficiently build this major project, while surpassing safety milestones. At the end of July, they had exceeded and incredible 1.3 million man hours without a loss time accident, with 1 million hours being a benchmark milestone for the mining industry, and a record that continues to advance as we speak. We are very proud of this effort by the workers and contractors and employees at Coeur in Bolivia. I think San Barts demonstrated Coeur's worldwide approach to standards, including mine safety. While we are not only bringing good, well paying jobs to the people of Bolivia, but doing it in a safe and recognized productive work environment. Construction basically remains on schedule at San Barts, with high quality and results with commercial production expected to begin in February at the annual 9 million ounces of silver annualized silver production rate. On slides 23 and 24 you see some of the recent construction activities continuing at San Bartolome. On a related note, we were pleased to see, as a consequence of developments this last week, that the Bolivian government is moving the country toward mining tax certainty, one of our key objectives this year. The lower house of the Bolivian congress passed mining tax legislation last week and the bill is now in the hands of the senate. Although it's not yet perfect, the legislation approaches the 50, 50 split of net profits, which was the milestone that has been consistently set and talked about by the government for several months. Importantly, the current government proposal also give Coeur credit for production a bullion product within the country of Bolivia, in other words,…

(Operator Instructions) Your first question comes from Mike Curran with Royal Bank.

Good afternoon, gentlemen. I was just wondering, if you could give -- I've never seen the size of the new mill that you're planning for Martha. Can you give us the tonnage either tons per day or tons per year?

The tonnage is about 220 to 240 tons per day, Mike.

Great. Thanks.

(Operator Instructions) Your next question comes from the line of John Bridges with J.P. Morgan.

Hi, Dennis, everybody. Just wondered, could you give us a bit of a walk-through of what this legislation in Bolivia on the tax changes breaks out to?

Yes. The government sometime ago, Mike, announced, or John, announced that they were seeking a new tax-mining scheme for the country that would result in a basic 50, 50 split of net profits. They are close to that with this proposal as it heads into the Senate, and this is a milestone that we have continuously focused on at Coeur in terms of our analysis for San Bartolome, and we are expecting that at these levels San Bart's would have a robust return on investment for the Company. I think I indicated to you we don't view the proposal as being perfect yet, and we're going to continue to seek further refinements in it. But we're quite pleased that there is a recognition of our value added contribution producing a dory bullion on site at San Bartolome and some other matters that are being talked about. And I think that’s probably about all I should say today. We are clearly more pleased than last quarter that we now have the government, by all appearances, moving toward tax certainty in Bolivia, which of course has been the major item that we needed to clarify with regard to San Bartolome.

Well, we would applaud that, too. But the 50% is this before royalties or after royalties?

] It is after it, John. That’s the complete load of all government taxes and royalties on the project.

Okay. And you get some sort of credit for value adding within country?

Under the present proposal, that's right, John.

Okay. Does the super-tax go away? The windfall tax thing they've got?

I don't know about the specifics of the package yet, as it heads into the Senate, John. We haven't seen the final version. I'm giving you our current updated report. And we're in the process of taking a closer look at it. Clearly, the major items that impact San Bartolome are addressed in our comments here today.

Okay. Rochester, you're still loading the pads there. When do you think that is going to finish? Or is Don going to surprise you with a new deposit there?

Well, this is Harry Cougher. The current plan, of course, is we've only got pad capacity to get us through August of -- well, at the end of this month, and the mining will be curtailed, but the exploration will continue, and Don can comment on that, but you might expect, with the permitting processes that are involved there, we will not be able to continue the mining operations while the exploration is going on. We will be in a residual leach starting in September.

Okay.

Maybe I will follow up on that a little bit, Harry, if you don't mind. The exploration is generating some really exciting new targets at Rochester, in and around the current operations, both as we said earlier, for some potential new heap leachable ore. But I'm really pleased with the results that are coming out with some high-grade structures that we’ve come up and we’ll drill testing those later this year. So, watch for some new results.

What has caused this to happen now, because it is a little bit late in the day?

Well, I can say that I think we probably were focusing totally on heap leach and not really recognizing the potential for other things there, too, and as we progressed the mine down, down, we are seeing that the structures that feed into this large low grade bulk tonnage deposit are very persistent. And I'm hoping that that’s going to turn into new discoveries that can be put into the production pipeline.

So, is this something, which comes about because of the likelihood of a sustained higher silver price?

Well, I think that is part of it. It is always good when you've got an existing operation to see what you can do to extend the life. Where is the best place to find silver and gold? Well hopefully, right next door to where you have it.

Okay. Okay. Well done, and congratulations on the safety record, a very topical thing today.

Thank you.

(Operator Instructions) Your next question comes from Roman York. He is a private investor.

Well, hi. I'm just wondering, over the years, there was a significant dilution of shareholders equity. Do you have any plan to halt this additional dilution of shares, so that the shareholders who have been patient with you can realize some value?

Well, if you mean by dilution, an increase in the outstanding number of shares of the Company, that’s certainly correct. And of course, we take a look at all of our acquisitions here at Coeur, including Palmarejo, Bolnisi, and balance the consideration that we pay for those assets against the expectation of growth and added value that that will bring for the shareholders of the Company. So, we will continue to keep our balance sheet strong and healthy, and we will continue to evaluate the opportunities in the future to determine the best way to finance those. I think it is important to keep in mind, however, my earlier comments, that we do have in place sufficient cash resources today on hand to complete our three major projects that are in our portfolio as we sit here.

And can I have a follow-up question?

Sure.

I'm just wondering, what are you doing to attract more individual ore? Pardon me, institutional investors to watch CDE?

Well, we've had a significant growth overall in our institutional holding over the last year, and I think that is primarily a recognition of the growth profile of the Company and the resolution of certain issues like the progress of San Bart's in Bolivia, our other value initiatives in terms of reserve addition, etcetera, to the Company. But the overall plan that we set forth at the start of the year that seems to be working reasonably well.

Thank you.

There are no further questions at this time. I would now like to turn the call back over to management.

Thank you, Operator. We would like to thank all of you for joining us on today's call and your ongoing interest in Coeur. We are focused and committed here to remaining the leading primary silver producer in the silver sector, and I can assure you, we will remain focused on the execution of our long-term strategy, which we've talked about with you through the year, with a single goal of maximizing value for all of our shareholders. So, thank you and have a pleasant day.

This concludes today's conference call. You may now disconnect.