COEUR ALASKA, ENVIRONMENTAL GROUPS SEEK

ALTERNATIVE SITE FOR TAILINGS DISPOSAL

The Southeast Alaska Conservation Council and other environmental groups will ask the U.S. Forest Service to examine the use of a site near Comet Beach for disposal of the Kensington mine tailings. The site is essentially the same as the previously approved Dry Tailings Facility site, but Coeur is now proposing to store the tailings using paste technology instead of dry stacking. Based on the 1997 Supplemental Environmental Impact Statement for this site, the environmental groups believe that the potential adverse impacts of the Comet Beach site are less than the impacts of alternative sites that have been identified. If the Comet Beach site is approved, Lower Slate Lake would not be used in any way for tailings disposal or storage.

Any revised operations plan is subject to federal, state and local regulatory approval and permitting. The next step is for the parties to meet with the Forest Service to discuss the regulatory process that would be followed to evaluate the Comet Beach site.

All parties have pledged to cooperate and work with the regulators to complete evaluation of the proposed site.