

1,383

Gold (ounces) 21,586 Equivalent Gold (ounces) from

Silver 44,573

Total Gold and Gold Equivalent

(ounces) 66,159

16,027 44,573

60,600

$ 26 $ 51

$ 77

$ 137

5,559 -

5,559

$ 16 $4

$ 20

$ 87

10,493 -

10,493

$ 11 $ 17

$ 28

$ 217

Costs per tonne - ore mined Costs per tonne - ore milled Total cost per tonne

Cash cost per ounce Gold Equivalent

$ 25 $ 56

$ 81

$ 136

(1) A reconciliation of this non-GAAP measure to cost of sales and other direct production costs and depreciation, depletion and amortization, the most comparable GAAP measure, can be found in Company’s annual report on Form 10-K for 2011

La Arista Mine development is progressing well with the primary decline ramp approaching Level 11. Drifts on the veins at each level, between Levels 4 and 9, provide five to six working faces at any given time. The intercepted vein width on Level 9.5 was an impressive 12 meters. The Company’s mining staff recently began its first long hole stoping on Level 6 and expects to transition away from its original descending benches mining method going forward. In addition to its own mining staff, the Company currently engages two mine contractors to assist with mine development. One mine contractor continues developing the primary spiral decline while a second mine contractor is developing an additional decline ramp (-15% slope) south from Level 7 to access the southern part of the ore body. By developing off the veins, the Company anticipates this Level 7 decline ramp will allow for better and more expedited access for future mine development along the entire strike length of the deposit. As underground mine development at Arista continues, the Company expects to mine more efficiently, pulling greater tonnages with less dilution.

2012 Exploration Program

A total of four exploration drills are currently at the Company’s properties, with a fifth drill on order and expected to arrive shortly. Three drills are concentrated at the Arista mine, with two underground and one surface rig. A fourth drill is located at the Alta Gracia property. The anticipated primary focus for drilling in 2012 will be to test the extension of the Arista deposit which remains open on strike and depth. The Company continues to add personnel to its geology department with the recent hiring of an Exploration Manager for the Oaxaca Mining Unit and another core logging geologist. The Company may add additional drills as it expects to gradually increase the size of its exploration program.

El Rey Property

Progress has been made on the refurbishment of the existing mine shaft, which when complete will allow drifting along the veins and an underground drill station. The Company has received permission from the local Ejido (agrarian community) and town to work at El Rey. However, the Company has temporarily ceased work at El Rey following a recent request to obtain additional approvals from local community agencies. For the time being, the Company will focus its exploration efforts elsewhere on its extensive land holdings until work at El Rey can resume.

Alta Gracia Property

2011 exploration efforts at Alta Gracia returned positive results including multiple high-grade drill intercepts. 21 shallow exploratory core holes for a total of 5,030 meters were drilled on the property during 2011. This program encountered 33 intercepts grading over 200 grams silver per tonne from intervals averaging over one meter down hole length. Assays identified mineralization up to 1,020 grams per tonne silver with 3.73 grams per tonne gold. The Company has budgeted approximately $1 million for exploration at Alta Gracia in 2012.

Las Margaritas Property

The Company has permission from authorities to explore the area and is constructing a new road which will allow year-round access to the property. A drill program is planned for 2012 to test multiple high-grade targets identified from surface mapping and sampling. The Company expects to spend approximately $700K at Las Margaritas in 2012 for drilling, geochemical and geophysical surveys.

Regional Surveys

Gold Resource Corporation is planning a 2012 regional airborne geophysical survey for five of its contiguous properties which span a mineralized structural corridor over 48 kilometers. This important survey will give the Company data to analyze for developing more detailed exploration programs for these properties. This will be the first wide-scale exploration program to cover the Company’s entire mineralized trend.

The Company is also continuing an IP-Resistivity and CSAMT survey launched in 2011 on selected target areas. Those surveys are being conducted by Zonge International of Tucson, Arizona under the direction of Ellis Geophysical Consulting, Inc. of Reno, Nevada.

"Gold Resource Corporation provides premier precious metal exposure with an aggressive production growth profile of low cost ounces, growing cash and physical precious metal treasury, high-grade exploration prospects and distribution of a substantial monthly dividend," stated Mr. Jason Reid. "2011 was an excellent year for Gold Resource Corporation, but more importantly, it sets a solid base for the Company’s exciting growth trajectory."

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 52,902,620 shares outstanding, no warrants and no debt. For more information, please visit GRC’s website, located at