SYS-CON MEDIA Authors: Carmen Gonzalez, Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel

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Gold Resource Corporation Reports First Quarter Results With Net Income of $0.13 per Share; Maintains 2014 Production Outlook

COLORADO SPRINGS, CO -- (Marketwired) -- 05/12/14 -- Gold Resource Corporation (NYSE MKT: GORO) (the "Company") reported its production results for the first quarter ended March 31, 2014 of 23,734 ounces precious metal gold equivalent (calculated at actual sales price ratio of 64:1) while decreasing its total cash cost by 18% over the first quarter of 2013. Gold Resource Corporation is a gold and silver producer with operations in the southern state of Oaxaca, Mexico. The Company has returned over $96 million to shareholders in monthly dividends since commercial production July 1, 2010, and offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery.

2014 Q1 HIGHLIGHTS

  • 23,734 ounces mill production, precious metal gold equivalent
  • 20,600 precious metal gold equivalent ounces sold
  • Total cash cost of $422 per precious metal gold equivalent ounce (including 5% royalty)
  • Total cash cost decrease of 18% from Q1 2013 and 38% since Q4 2013
  • $17.4 million Cash Flow from Mine Site Operations
  • Net income of $7.1 million, or $0.13 per share
  • Dividend distributions of $1.6 million, or $0.03 per share for quarter
  • Cash and Cash Equivalents increased $4.5 million from prior quarter
  • 1,159 tonnes milled per day, a 28% increase from Q4 2013

Overview of Q1 2014 El Aguila Project Results

Gold Resource Corporation's El Aguila Project produced 23,734 ounces of precious metal gold equivalent at a total cash cost of $422 per ounce. Realized average metal price sales during the quarter were $1,296 per ounce gold and $20 per ounce silver. Net income totaled $7.1 million, or $0.13 per share. Cash Flow from Mine Site Operations totaled $17.4 million. The Company paid $1.6 million to shareholders in dividends or $0.03 per share during the quarter. Gold and silver prices decreased 21.4% and 35.5%, respectively, from the first quarter of 2013.

"During the first quarter, the Company delivered strong operating results with production increasing 15% over the prior quarter," stated Gold Resource Corporation's CEO and President, Mr. Jason Reid. "Equally important, we substantially drove down our total cash costs by 38% compared to the fourth quarter of 2013. In addition, we continued to distribute our monthly dividend and increased our treasury by $4.5 million over the prior quarter. With a strong first quarter, the Company is on track to meet its annual production outlook goal."

Mr. Reid continued, "In the face of volatile precious metal prices, Gold Resource Corporation has demonstrated it can generate significant profits, build its treasury, and continue to reward shareholders through dividend distributions. We will continue to challenge our team to identify additional cost savings opportunities at our operations while increasing future production."

Below is a table of the key production statistics for our El Aguila Project during the three months ended March 31, 2014 and 2013.



        Production and Sales Statistics - La Arista Underground Mine

                                                Three months ended March 31,
                                                    2014           2013
                                               -------------- --------------
Production Summary
Milled:
  Tonnes Milled                                       104,349         76,184
  Tonnes Milled per Day                                 1,159            846
Grade:
  Average Gold Grade (g/t)                               3.25           3.67
  Average Silver Grade (g/t)                              285            345
  Average Copper Grade (%)                               0.35           0.39
  Average Lead Grade (%)                                 1.23           1.10
  Average Zinc Grade (%)                                 3.43           2.79
Recoveries:
  Average Gold Recovery (%)                                91             88
  Average Silver Recovery (%)                              92             92
  Average Copper Recovery (%)                              80             84
  Average Lead Recovery (%)                                72             70
  Average Zinc Recovery (%)                                82             79
Mill production (before payable metal
 deductions)(1)
  Gold (ozs.)                                           9,958          7,898
  Silver (ozs.)                                       878,958        777,671
  Copper (tonnes)                                         292            248
  Lead (tonnes)                                           929            586
  Zinc (tonnes)                                         2,920          1,676
Payable metal sold
  Gold (ozs.)                                           8,586          8,953
  Silver (ozs.)                                       766,535        863,152
  Copper (tonnes)                                         259            305
  Lead (tonnes)                                           812            642
  Zinc (tonnes)                                         2,158          1,735
Average metal prices realized (2)
  Gold (oz.)                                   $        1,296 $        1,648
  Silver (oz.)                                 $           20 $           31
  Copper (tonne)                               $        6,939 $        7,996
  Lead (tonne)                                 $        2,091 $        2,448
  Zinc (tonne)                                 $        2,050 $        2,154
Precious metal gold equivalent ounces produced
 (mill production)(1)(4)
  Gold Ounces                                           9,958          7,898
  Gold Equivalent Ounces from Silver                   13,776         14,432
                                               -------------- --------------
  Total Precious Metal Gold Equivalent Ounces          23,734         22,330
                                               -------------- --------------
Precious metal gold equivalent ounces
 sold(3)(4)
  Gold Ounces                                           8,586          8,953
  Gold Equivalent Ounces from Silver                   12,014         16,019
                                               -------------- --------------
  Total Precious Metal Gold Equivalent Ounces          20,600         24,972
                                               -------------- --------------
  Total cash cost (before by-product credits)
   per precious metal gold equivalent ounce
   sold (including royalties) (3)              $          806 $          825
  Total cash costs, after by-product credits,
   per precious metal gold equivalent ounce
   sold (including royalties) (3)              $          422 $          515


(1) 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, for 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 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.
(2) Average metal prices realized vary from the market metal prices due to
    out of period 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.
(3) A reconciliation of this Non-GAAP measure to total mine cost of sales,
    the most comparable U.S. GAAP measure, can be found below in "Non-GAAP
    Measures".
(4) Precious metal gold equivalent mill production for the first quarter of
    2014 of 23,734 ounces differs from gold equivalent ounces sold for the
    same period of 20,600 due principally to buyer (smelter) concentrate
    processing deductions of approximately 2,123 gold equivalent ounces and
    an increase in gold equivalent ounces contained in ending inventory of
    approximately 1,011 ounces.


About GRC:

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 in Mexico's southern state of Oaxaca. The Company has 54,179,369 shares outstanding and no warrants. 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.

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.

See Accompanying Tables

The following information summarizes the results of operations for Gold Resource Corporation for the three months ended March 31, 2014 and 2013, its financial condition at March 31, 2014 and December 31, 2013 and its cash flows for the three months ended March 31, 2014 and 2013. The summary data for the three months ended March 31, 2014 is unaudited; the summary data for the year ended December 31, 2013 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2013, but do not include the footnotes and other information that is included in the complete financial statements. Readers are urged to review the Company's Form 10-K in its entirety, which can be found on the SEC's website at www.sec.gov.

The calculation of our cash cost per ounce contained in this press release is a non-GAAP financial measure. Please see "Management's Discussion and Analysis and Results of Operation" contained in the Company's most recent Form 10Q and Form 10-K.



                         GOLD RESOURCE CORPORATION
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME
             for the three months ended March 31, 2014 and 2013
      (U.S. dollars in thousands, except shares and per share amounts)
                                (Unaudited)



                                                  2014            2013
                                             --------------  --------------

Sales of metals concentrate, net             $       31,152  $       42,311
                                             --------------  --------------
Mine cost of sales:
  Production costs                                   14,221          16,867
  Depreciation and amortization                         745             536
  Reclamation and remediation                             -              29
                                             --------------  --------------
    Total mine cost of sales                         14,966          17,432
                                             --------------  --------------
Mine gross profit                                    16,186          24,879
Costs and expenses:
  General and administrative expenses                 3,013           4,385
  Exploration expenses                                1,288           3,299
  Facilities and mine construction                        -           4,848
    Total costs and expenses                          4,301          12,532
Operating income                                     11,885          12,347
Other income (expense)                                  469             (36)
                                             --------------  --------------
Income before income taxes                           12,354          12,311
  Provision for income taxes                          5,229           4,924
                                             --------------  --------------
Net income                                   $        7,125  $        7,387
                                             ==============  ==============
Other comprehensive income:
  Currency translation gain                               -              34
Comprehensive income                         $        7,125  $        7,421
                                             ==============  ==============
Net income per common share:
  Basic:                                     $         0.13  $         0.14
                                             ==============  ==============
  Diluted:                                   $         0.13  $         0.13
                                             ==============  ==============

Weighted average shares outstanding:
  Basic                                          53,934,925      52,679,369
                                             ==============  ==============
  Diluted                                        54,697,710      55,586,031
                                             ==============  ==============




                         GOLD RESOURCE CORPORATION
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                 (U.S. dollars in thousands, except shares)
                                (Unaudited)

                                                March 31,     December 31,
                                                  2014            2013
                                             --------------  --------------
                   ASSETS
Current assets:
  Cash and cash equivalents                  $       19,457  $       14,973
  Gold and silver bullion                             3,793           3,801
  Accounts receivable                                 6,442           2,307
  Inventories                                         6,967           7,468
  Income taxes receivable                             1,216           6,488
  Deferred tax assets                                 3,973           3,973
  Prepaid expenses and other assets                   4,687           5,808
                                             --------------  --------------
    Total current assets                             46,535          44,818
Land and mineral rights                                 227             227
Property, equipment and mine development -
 net                                                 21,506          18,127
Inventories                                             903             903
Deferred tax assets                                  27,663          27,663
Investments (including $2,512 and nil,
 respectively, measured at fair value)                2,743             231
                                             --------------  --------------
    Total assets                             $       99,577  $       91,969
                                             ==============  ==============
    LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Accounts payable                           $        4,223  $        2,873
  Accrued expenses                                    5,011           5,613
  Capital lease obligations                           1,476           1,469
  IVA taxes payable                                   1,762             925
  Dividends payable                                     542             538
                                             --------------  --------------
    Total current liabilities                        13,014          11,418
Capital lease obligations                             2,015           2,387
Reclamation and remediation liabilities               2,883           2,887
                                             --------------  --------------
    Total liabilities                                17,912          16,692
Shareholders' equity:
Preferred stock - $0.001 par value,
 5,000,000 shares authorized:
    no shares issued and outstanding                      -               -
Common stock - $0.001 par value, 100,000,000
 shares authorized:
    54,515,767 and 54,115,767 shares issued
     and outstanding, respectively                       55              54
Additional paid-in capital                           88,685          88,044
Accumulated (deficit)                                     -          (5,766)
Treasury stock at cost, 336,398 shares               (5,884)         (5,884)
Accumulated other comprehensive (loss)               (1,171)         (1,171)
                                             --------------  --------------
    Total shareholders' equity                       81,665          75,277
                                             --------------  --------------
    Total liabilities and shareholders'
     equity                                  $       99,577  $       91,969
                                             ==============  ==============




                         GOLD RESOURCE CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
             for the three months ended March 31, 2014 and 2013
                        (U.S. dollars in thousands)
                                (Unaudited)



                                                  2014            2013
                                             --------------  --------------

Cash flows from operating activities:
  Net income                                 $        7,125  $        7,387
                                             --------------  --------------
  Adjustments to reconcile net income to net
   cash from operating activities:
  Depreciation and amortization                         810             653
  Reclamation and remediation                             -              29
  Stock-based compensation                              783           1,512
  Unrealized foreign currency exchange loss
   (gain)                                               137            (119)
  Impairment loss on gold and silver bullion              -             178
  Unrealized gain due to changes in fair
   value of investments                                (702)              -
  Changes in operating assets and
   liabilities:
  Accounts receivable                                (4,176)         (4,887)
  Inventories                                           496             942
  Prepaid expenses and other assets                   1,110          (1,677)
  Accounts payable                                    1,331           1,910
  Accrued expenses                                     (608)          1,469
  IVA taxes payable/receivable                          828          (1,216)
  Income taxes payable/receivable                     5,219             263
                                             --------------  --------------
  Net cash provided by operating activities          12,353           6,444
                                             --------------  --------------
  Cash flows from investing activities:
  Capital expenditures                               (4,190)         (3,682)
Purchases of gold and silver bullion                      -            (485)
  Proceeds from conversion of gold and
   silver bullion                                         8             664
  Investments                                        (1,805)           (231)
                                             --------------  --------------
  Net cash used in investing activities              (5,987)         (3,734)
                                             --------------  --------------
  Cash flows from financing activities:
  Proceeds from exercise of stock options               100               -
Dividends paid                                       (1,617)         (9,482)
  Repayment of capital leases                          (365)              -
                                             --------------  --------------
  Net cash used in financing activities              (1,882)         (9,482)
                                             --------------  --------------
  Effect of exchange rates on cash and
   equivalents                                            -              18
                                             --------------  --------------
  Net increase (decrease) in cash and cash
   equivalents                                        4,484          (6,754)
Cash and equivalents at beginning of period          14,973          35,780
                                             --------------  --------------
Cash and equivalents at end of period        $       19,457  $       29,026
                                             ==============  ==============

Supplemental Cash Flow Information
Interest paid                                $           85  $            -
                                             ==============  ==============
Income taxes paid                            $            -  $        3,496
                                             ==============  ==============


Contacts:

Corporate Development
Greg Patterson
303-320-7708
www.Goldresourcecorp.com

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