Gold Resource Corporation (NYSE American: GORO) (the “Company”) updated its annual reserve estimates as of December 31, 2018, increasing its proven and probable reserve tonnes at both its Oaxaca Mining Unit and Nevada Mining Unit by a combined total of 18% gold ounces and 14% silver ounces.  Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, U.S.A.  The Company has returned $111 million to its shareholders in monthly dividends since commercial production commenced July 1, 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.

As of December 31, 2018, proven and probable reserves at the Oaxaca Mining Unit totaled 3,077,200 tonnes grading 1.82 grams per tonne (g/t) gold and 127 g/t silver, equating to 180,300 gold ounces and 12,591,300 silver ounces.  Proven and probable reserve tonnes included in the December 31, 2018 reserve report increased year-over-year by 23%, gold ounces increased by 26.6% and silver ounces increased by 15.2%.  The reserve report also includes significant base metals from the Arista Mine consisting of 11,796 tonnes (26.0 million pounds) of copper grading 0.4%, 44,234 tonnes (97.5 million pounds) of lead grading 1.5% and 132,701 tonnes (292.6 million pounds) of zinc grading 4.5%.  Proven and probable tonnes of copper increased year-over-year by 62%, lead tonnes increased by 31%, while zinc tonnes increased by 19%.

As of December 31, 2018, proven and probable reserves at the Nevada Mining Unit’s Isabella Pearl Mine totaled 2,934,400 tonnes grading 2.28 g/t gold.  Proven and probable reserve tonnes included in the December 31, 2018 reserve report increased year-over-year by 8.9%, gold ounces increased by 11.5% and the gold grade increased 2.7%.

Mine life at the Company’s Oaxaca Mining Unit is estimated at four and one-half years, holding the four and one-half year mine life estimate of 2018, but based on the new maximum estimated mill throughput capacity of 2,000 tonnes of ore per day.  Proven and probable gold reserves at the Company’s Nevada Mining Unit’s Isabella Pearl Project grew by 22,200 gold ounces year-over-year.  This addition extends the 2018 four-year mine life estimate into the start of a fifth production year at the project.  The Company’s management is optimistic it can continue to expand the deposit further and/or discover additional neighboring deposits along trend for additional mine life.

“We are very pleased to release this December 31, 2018 reserve report showing significant increases to reserve tonnes and gold ounces at both the Oaxaca and Nevada Mining Units,” stated Mr. Barry Devlin, Vice President of Exploration for Gold Resource Corporation.  “Both the Arista and Mirador mines in Oaxaca delivered significant increases in tonnes, precious metal ounces and base metal tonnes.  We were also pleased to see that modest drilling beyond the edge of the modeled Isabella Pearl pit defined additional tonnes and gold ounces to this project currently in construction.  Exploration goals for 2019 include continued step-out and infill drilling at the Arista Mine’s Arista and Switchback vein systems, step-out and infill drilling at Mirador’s Independencia vein, continued step-out drilling at Nevada’s Isabella Pearl modeled pit, and a first drill program at the Scarlet target, located approximately 200 meters to the north west of the Isabella Pearl pit.”

“Our exploration team had a great year delivering significant increases to reserve tonnes and gold and silver ounces at both the Oaxaca and Nevada Mining Units,” stated Mr. Jason Reid, President and CEO of Gold Resource Corporation.  “With global gold ounce increases of 18%, including 26.6% and 11.5% at our Oaxaca and Nevada mining units respectively, coupled with substantial silver ounce and base metal tonne additions, underscore this reserve as being one of the best reserves in the Company’s history.  The report also marks the sixth consecutive annual reserve report where the Company has increased the proven and probable reserve tonnes in each consecutive year.  We have said for over a decade now that the Arista Mine is a part of a very powerful epithermal vein system with tremendous potential.  The Isabella Pearl Mine’s 2,934,400 tonnes grading now 2.28 grams per tonne gold adds additional critical mass to the Company’s production and growth profile.   We are nearing construction completion and production of this open-pit heap leach mine.  We are not only on track to reach our publicly stated June 2019 production goal, but it is possible we may be selling gold before then.”

Below is a summary of the reserve report for December 31, 2018:

GOLD RESOURCE CORPORATION PROVEN AND PROBABLE RESERVES
As of December 31, 2018

Notes to the 2018 P&P reserves:

1. Metal prices used for P&P reserves were $1,258 per ounce of gold, $16.62 per ounce of silver, $2.65 per pound of copper, $0.97 per pound of lead and $1.20 per pound of zinc.  These prices reflect the three-year trailing average prices for gold, silver, copper, lead and zinc.
2. Precious metal gold equivalent is 75.69:1 using gold and silver only to calculate gold equivalencies.
3. A breakeven Net Smelter Return (“NSR”) cutoff grade of $80 per tonne was used for estimations of P&P reserves at the Arista Mine.  The term “cutoff grade” means the lowest NSR value considered economic to process.
4. No appreciable amounts of base metals are present in the veins identified to-date at the Mirador Mine at the Alta Gracia project.  A breakeven cutoff grade of 1.98 g/t gold-equivalent (AuEq) was used for proven and probable reserves at the Mirador Mine using gold and silver only to calculate gold equivalencies.
5. Mining, processing, energy, administrative and smelting/refining costs were based on 2018 actual costs for the Oaxaca Mining Unit.
6. Arista Mine metallurgical recovery assumptions used were 80% for gold, 92% for silver, 80% for copper, 78% for lead and 83% for zinc.  Mirador Mine metallurgical recovery assumptions used were 79% for gold and 78% for silver.  These recoveries reflect 2018 actual average recoveries for the Aguila and Alta Gracia projects.
7. P&P reserves are diluted and factored for expected mining recovery.
8. Minimum mining width for P&P reserves is 1.5 meters for the Arista and Mirador underground mines.
9. For the Isabella Pearl project, the quantities of material within the designed pits were calculated using a cutoff grade of 0.61 Au g/t for crushed ore and 0.38 Au g/t for Run-of-Mine (“ROM”) ore.
10. Mining, processing, energy, administrative and smelting/refining costs were based on 2018 cost estimates used for the Isabella Pearl project feasibility study.
11. Metallurgical gold recovery assumptions used for the Isabella Pearl project were 81% for crushed ore and 60% for ROM ore.  These recoveries reflect predicted average recoveries from metallurgical test programs.
12. Silver is an economic mineral of interest but only a minor amount will be recovered.  Silver recoveries were not considered in the Isabella Pearl project feasibility study. 
13. Isabella Pearl P&P reserves are diluted and factored for expected mining recovery.
14. Figures in tables are rounded to reflect estimate precision and small differences generated by rounding are not material to estimates.

GOLD RESOURCE CORPORATION MINERALIZED MATERIAL
As of December 31, 2018

Notes to the 2018 mineralized material:

1. Mineralized Material is exclusive of P&P Reserves.
2. Metal prices used for mineralized material were $1,258 per ounce of gold, $16.62 per ounce of silver, $2.65 per pound of copper, $0.97 per pound of lead and $1.20 per pound of zinc.  These prices reflect the three-year trailing average prices for gold, silver, copper, lead and zinc.
3. A breakeven Net Smelter Return (“NSR”) cutoff grade of $80 per tonne was used for estimations of mineralized material.  The term “cutoff grade” means the lowest NSR value considered economic to process.
4. No appreciable amounts of base metals are present in the veins identified to-date at the Alta Gracia project including the Mirador Mine, and the Margaritas project.  A breakeven cutoff grade of 1.98 g/t gold-equivalent (AuEq) was used for mineralized material at the Alta Gracia and Margaritas projects using gold and silver only to calculate gold equivalencies at a ratio of 75.69 to 1.
5. Arista Mine metallurgical recovery assumptions used were 80% for gold, 92% for silver, 80% for copper, 78% for lead and 83% for zinc.  Alta Gracia and Margaritas projects metallurgical recovery assumptions used were 79% for gold and 78% for silver. These recoveries reflect 2018 actual average recoveries for the Aguila and Alta Gracia projects.
6. Mineralized material is diluted and factored for expected mining recovery.
7. Minimum mining width for mineralized material is 1.5 meters for the Arista Mine and the Alta Gracia and Margaritas projects.
8. Figures in tables are rounded to reflect estimate precision and small differences generated by rounding are not material to estimates.
9. 100% of the Isabella Pearl project pit contained mineralized material was converted to reserves.

The full reserve report will be available in the near future from the Company’s website using the following link:  http://goldresourcecorp.com/reserve-reports.php.

About GRC: 

Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA.  The Company targets low capital expenditure projects with potential for generating high returns on capital.  The Company has returned $111 million back to its shareholders since commercial production commenced July 1, 2010 and offers its 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. 

Cautionary Statements:

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.

Contacts: Corporate Development

Greg Patterson 

303-320-7708

www.goldresourcecorp.com

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