Gold Resource Corporation Reports Second Quarter Net Income of $5.6 Million, or $0.10 per Share; Maintains 2016 Production Outlook

COLORADO SPRINGS, CO--(Marketwired - Aug 2, 2016) - Gold Resource Corporation ( NYSE MKT : GORO ) (the "Company") reported production results for the second quarter ended June 30, 2016 of 10,011 ounces of gold and 572,499 ounces of silver, which along with base metal revenue generated $26.2 million in net revenue for the quarter. Gold Resource Corporation is a gold and silver producer with operations in Oaxaca, Mexico and exploration in Nevada, USA. The Company has returned $108 million to shareholders in monthly dividends since commercial production commenced July 1, 2010, and offers shareholders the option to convert their cash dividends and take delivery in physical gold and silver.

Gold Resource Corporation's Aguila Project produced 17,706 gold equivalent ounces at a total cash cost of $317 per ounce (after by-product credits). Realized average metal price sales during the quarter were $1,271 per ounce gold and $17.08 per ounce silver. The Company recorded net income of $5.6 million, or $0.10 per share. Adjusted cash flow from mine site operations totaled $15.5 million. The Company paid $0.3 million to shareholders in dividends, or $0.005 per share during the quarter. Cash and cash equivalents at quarter end totaled $13.3 million. Realized gold and silver prices increased 6% and 2%, respectively, compared to the second quarter of 2015.

Production for the first half of 2016 included 16,474 ounces of gold and 1,006,640 ounces of silver. The Company maintains its 2016 Annual Outlook of 26,000 gold ounces, 1,900,000 silver ounces, 1,100 tonnes of copper, 3,200 tonnes of lead and 12,900 tonnes of zinc.

The following table summarizes certain information about our mining operations for the three and six months ended June 30, 2016 and 2015:


		Three months ended June 30,				Six months ended June 30,
		2016		2015		2016		2015
Milled
	Tonnes Milled ⁽¹⁾		104,333		102,522		217,478		194,881
	Tonnes Milled per Day ⁽²⁾		1,228		1,127		1,265		1,077
Grade
	Average Gold Grade (g/t)		3.27		2.25		2.68		2.66
	Average Silver Grade (g/t)		182		189		156		235
	Average Copper Grade (%)		0.40		0.35		0.30		0.38
	Average Lead Grade (%)		1.40		1.24		1.20		1.35
	Average Zinc Grade (%)		4.40		3.59		3.90		3.65
Recoveries
	Average Gold Recovery (%)		92		92		91		91
	Average Silver Recovery (%)		94		93		93		93
	Average Copper Recovery (%)		77		82		76		79
	Average Lead Recovery (%)		71		74		71		75
	Average Zinc Recovery (%)		84		82		84		82
Mill production (before payable metal deductions) ⁽³⁾
	Gold (ozs.)		10,011		6,788		16,474		15,135
	Silver (ozs.)		572,499		580,326		1,006,640		1,370,625
	Copper (tonnes)		320		293		564		586
	Lead (tonnes)		1,009		943		1,847		1,956
	Zinc (tonnes)		3,813		3,038		7,074		5,800
Payable metal sold
	Gold (ozs.)		8,197		7,096		14,413		15,774
	Silver (ozs.)		548,537		538,848		927,331		1,266,164
	Copper (tonnes)		319		268		539		546
	Lead (tonnes)		974		907		1,737		1,827
	Zinc (tonnes)		3,424		2,559		6,023		4,763
Average metal prices realized ⁽⁴⁾
	Gold ($ per oz.)		1,271		1,201		1,240		1,202
	Silver ($ per oz.)		17.08		16.70		15.97		16.72
	Copper ($ per tonne)		4,740		6,022		4,497		5,773
	Lead ($ per tonne)		1,717		1,908		1,757		1,819
	Zinc ($ per tonne)		1,940		2,275		1,844		2,152
Precious metal gold equivalent ounces produced (mill production) ⁽³⁾
	Gold Ounces		10,011		6,788		16,474		15,135
	Gold Equivalent Ounces from Silver		7,695		8,070		12,971		19,069
	Total Precious Metal Gold Equivalent Ounces		17,706		14,858		29,445		34,204
Precious metal gold equivalent ounces sold
	Gold Ounces		8,197		7,096		14,413		15,774
	Gold Equivalent Ounces from Silver		7,373		7,493		11,949		17,616
	Total Precious Metal Gold Equivalent Ounces		15,570		14,589		26,362		33,390
	Total cash cost before by-product credits per precious metal gold equivalent ounce sold ⁽⁵⁾	$	948	$	1,162	$	1,088	$	969
	Total cash cost after by-product credits per precious metal gold equivalent ounce sold ⁽⁵⁾	$	317	$	533	$	459	$	469
	Total all-in sustaining cost per precious metal gold equivalent ounce sold ⁽⁵⁾	$	649	$	854	$	916	$	842
	Total all-in cost per precious metal gold equivalent ounce sold ⁽⁵⁾	$	755	$	1,368	$	1,035	$	1,112

(1)	For the second quarter and first half of 2016, this includes 10,608 and 27,305 tonnes, respectively of low-grade stockpile open pit ore.
(2)	Based on actual days the mill operated during the year.
(3)	Mill production represents metal contained in concentrates produced at the mill, which is before payable metal deductions are levied by the buyer of our concentrates. Payable metal deduction quantities are defined in our contracts with the buyer of our concentrates and represent an estimate of metal contained in the concentrates produced at our mill which the buyer cannot recover through the smelting process. There are inherent limitations and differences in the sampling method and assaying of estimated metal contained in concentrates that are shipped, and those contained metal estimates are derived from sampling methods and assaying throughout the mill production process. The Company monitors these differences to ensure that precious metal mill production quantities are materially correct.
(4)	Average metal prices realized vary from the market metal prices due to final settlement adjustments from our provisional invoices when they are settled. Our average metal prices realized will therefore differ from the market average metal prices in most cases.
(5)	For a reconciliation of this non-GAAP measure to total mine cost of sales, which is the most comparable U.S. GAAP measure, please see Non-GAAP Measures

Gold Resource Corporation is a mining company focused on production and pursuing development of gold and silver projects that feature low operating costs and produce high returns on capital. The Company has 100% interest in six potential high-grade gold and silver properties at its producing Oaxaca, Mexico Mining Unit and exploration properties at its Nevada, USA, Mining Unit. The Company has 54,266,706 shares outstanding, no warrants, no long term debt and has returned $108 million back to shareholders since commercial production commenced July 1, 2010. Gold Resource Corporation offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery. For more information, please visit GRC's website, located at www.Goldresourcecorp.com and read the Company's 10-K for an understanding of the risk factors involved.

This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "plan", "target", "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding Gold Resource Corporation's strategy, future plans for production, future expenses and costs, future liquidity and capital resources, and estimates of mineralized material. All forward-looking statements in this press release are based upon information available to Gold Resource Corporation on the date of this press release, and the company assumes no obligation to update any such forward-looking statements. Forward looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. The Company's actual results could differ materially from those discussed in this press release. In particular, there can be no assurance that production will continue at any specific rate. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the Company's 10-K filed with the SEC.


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