Palmarejo Silver and Gold Corporation

Palmarejo Silver and Gold Corporation

December 04, 2007 16:21 ET

Palmarejo Shareholders Votes 99.99% in Favour of Offer by Coeur D'Alene Mines Corporation

LONGUEUIL, QUEBEC--(Marketwire - Dec. 4, 2007) - Palmarejo Silver and Gold Corporation ("Palmarejo") (TSX VENTURE:PJO) is pleased to announce the overwhelming approval by Palmarejo shareholders of a plan of arrangement pursuant to which, among other things, Coeur d'Alene Mines Corporation ("Coeur") (NYSE:CDE) (TSX:CDM) will acquire all of the outstanding shares of Palmarejo held by shareholders other than Bolnisi and, through its acquisition of Bolnisi Gold NL ("Bolnisi") (ASX: BSG), all of the Palmarejo shares held by Bolnisi, as more particularly described in the Palmarejo Notice and Management Information Circular dated October 31, 2007. At a meeting of Palmarejo shareholders held earlier today, the arrangement was approved by over 99.99% of the votes cast, and 99.99% of the "minority" votes, excluding those votes required to be excluded by applicable securities laws. Approximately 90.2% of the total eligible Palmarejo shares were voted at the meeting. Under the terms of the arrangement, Palmarejo shareholders will receive 2.715 Coeur shares and $0.004 for each Palmarejo share.

"Today's overwhelming vote in favour of this arrangement demonstrates that our shareholders support Palmarejo joining forces with Coeur," said James Crombie, President and CEO of Palmarejo. "The new Coeur, with the addition of Palmarejo's projects, will enjoy an excellent profile in the industry."

On December 4, 2007, Bolnisi shareholders also voted in favour of the resolution to allow the offer by Coeur to acquire all of the shares of Bolnisi by way of a scheme of arrangement to be implemented in accordance with the Merger Implementation Agreement between Bolnisi and Coeur. Under the scheme of arrangement, Bolnisi shareholders will receive 0.682 of a Coeur share and A$0.004 in cash for each Bolnisi share.

Coeur announced on December 3, 2007 that it has adjourned its special meeting of shareholders to vote on the amendment of its charter and the issuance of its shares in connection with its proposed acquisition of Bolnisi and Palmarejo to Friday, December 7, 2007 at 4:00 p.m. (PST). Coeur has received overwhelming support for the proposals related to the acquisition with in excess of 91% of the votes submitted having voted in favour. Proxies are continuing to be received and votes representing an additional 1.7% of the outstanding shares are needed to achieve quorum and enable the matters to be put to a vote at the meeting. The adjournment will allow Coeur to receive the necessary additional proxies.

Palmarejo's application to the Ontario Superior Court of Justice to obtain the final court order approving the arrangement is scheduled for December 5, 2007.

Completion of the transaction remains subject to satisfaction of certain conditions set out in the plan of arrangement and the Merger Implementation Agreement between Palmarejo and Coeur.

About Palmarejo Silver & Gold

Palmarejo Silver And Gold Corporation is a silver/gold exploration company listed on the TSX Venture Exchange under the symbol "PJO". Palmarejo's principal activity is to explore and develop gold and silver properties located in the Temoris District of Chihuahua, Mexico within the Sierra Madre Occidental mountain range. Additional information is available on SEDAR and on the Company's website.

Cautionary Statement

This press release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding the terms and conditions of the proposed transaction and anticipated operating results. Such statements are subject to numerous assumptions and uncertainties, many of which are outside the control of Palmarejo.

Operating, exploration and financial data, and other statements in this press release are based on information that Palmarejo believes is reasonable, but involve significant uncertainties affecting the business of Palmarejo, including, but not limited 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 future acquisitions 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 filings made from time to time with the Ontario Securities Commission, including, without limitation, Palmarejo's Annual Information Form. Additionally, there are risks that the parties will not proceed with the proposed transaction, that the ultimate terms of the proposed transaction will differ from those that currently are contemplated, and that the proposed transaction will be not be successfully completed for any reason (including the failure to obtain the required approvals or clearances from regulatory authorities). Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Palmarejo disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Palmarejo undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Palmarejo, its financial or operating results or its securities or the proposed transaction.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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