Goldcorp Inc.
TSX : G
NYSE : GG

Goldcorp Inc.

April 16, 2007 16:36 ET

Goldcorp Signs Agreement With Silver Wheaton for Penasquito Silver

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 16, 2007) - All figures in US dollars

GOLDCORP INC. (TSX:G)(NYSE:GG) today announced that it has executed a binding term sheet to sell 25% of the life-of-mine silver produced from its Penasquito project to Silver Wheaton Corp. ("Silver Wheaton"). Under the terms of the agreement, Silver Wheaton will pay Goldcorp $485 million in cash upon closing of the transaction in exchange for 25% of the silver production. In addition, the term sheet requires Silver Wheaton to pay an ongoing per-ounce operating cost payment equal to the lesser of $3.90 (subject to annual inflationary adjustments) and the prevailing market price per ounce of silver delivered under the contract.

"The addition of cash from this transaction with Silver Wheaton strengthens our already solid balance sheet and provides us tremendous flexibility in funding the construction of Penasquito and our other growth programs," said Kevin McArthur, Goldcorp President and Chief Executive Officer. "Our continued 49% investment in Silver Wheaton as well as our 75% unsold silver stream at Penasquito ensures that we will remain highly leveraged to future upside in silver prices. As always, our gold production will remain 100% unhedged."

As a result of this transaction, Silver Wheaton has extended Goldcorp's right to maintain its pro-rata interest in Silver Wheaton to December 31, 2009. Goldcorp currently owns 49% of the issued and outstanding shares in Silver Wheaton. Silver Wheaton will retain a right of first refusal on any further sales of silver streams from Penasquito for the life of the mine as long as Goldcorp maintains at least a 20% interest in Silver Wheaton. Goldcorp expects to update metals reserves and resources at Penasquito in June 2007.

Closing of the transaction is subject to execution of definitive agreements containing customary representations, warranties and covenants by both parties, as well as receipt of all regulatory approvals and third-party consents, including acceptance by the Toronto Stock Exchange. The transaction is expected to close by May 31, 2007.

CIBC World Markets acted as financial advisor to Goldcorp and provided a fairness opinion to Goldcorp's Board of Directors in connection with this transaction.

Goldcorp is one of the world's lowest-cost and fastest growing multi-million ounce gold producers with operations throughout the Americas. Its gold production remains 100% unhedged.

Cautionary Note Regarding Forward-Looking Statements

Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those with respect to the price of gold, silver, copper, zinc and lead, the timing and amount of estimated future production, costs of production, reserve determination and reserve conversion rates involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Goldcorp to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the integration of acquisitions, risks related to international operations, risks related to joint venture operations, the actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, silver and copper, zinc and lead as well as those factors discussed in the section entitled "General Development of the Business - Risks of the Business" in Goldcorp's Form 40-F on file with the Securities and Exchange Commission in Washington, D.C. and Goldcorp's Annual Information Form on file with the securities regulatory authorities in Canada. Although Goldcorp has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

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