·

24,172 ounces AuEq mill production 

·

20,647 ounces AuEq sold

·

$438 total cash cost per ounce AuEq  (after by-product credits and including 5% royalty)

·

32%  decrease in total cash cost per ounce AuEq from Q2 2013

·

$19.4 million Cash Flow from Mine Site Operations

·

$7.8 million net income, or $0.14 per share

·

$1.6 million dividend distributions, or $0.03 per share for quarter

·

$10.2 million Cash and Cash Equivalents increase from prior quarter to $29.6 million

·

1,098 tonnes milled per day, a 27% increase over 2013 annual average

·

$8.5 million by-product credits, or $411 per ounce AuEq sold

Production and Sales Statistics - La Arista Underground Mine

Three months ended June 30,

Six months ended June 30,

2014

2013

2014

2013

Production Summary

Milled:

Tonnes Milled

Tonnes Milled per Day

Grade:

Average Gold Grade (g/t)

Average Silver Grade (g/t)

Average Copper Grade (%)

Average Lead Grade (%)

Average Zinc Grade (%)

Recoveries:

Average Gold Recovery (%)

Average Silver Recovery (%)

Average Copper Recovery (%)

Average Lead Recovery (%)

Average Zinc Recovery (%)

Mill production (before payable metal deductions)(1)

Gold (ozs.)

Silver (ozs.)

Copper (tonnes)

Lead (tonnes)

Zinc (tonnes)

Payable metal sold

Gold (ozs.)

Silver (ozs.)

Copper (tonnes)

Lead (tonnes)

Zinc (tonnes)

Average metal prices realized (2)

Gold (oz.)

$

$

$

$

Silver (oz.)

$

$

$

$

Copper (tonne)

$

$

$

$

Lead (tonne)

$

$

$

$

Zinc (tonne)

$

$

$

$

Precious metal gold equivalent ounces produced (mill production)(1)(4)(5)

Gold Ounces

Gold Equivalent Ounces from Silver

Total Precious Metal Gold Equivalent Ounces

Precious metal gold equivalent ounces sold(3)(4)(5)

Gold Ounces

Gold Equivalent Ounces from Silver

Total Precious Metal Gold Equivalent Ounces

Total cash cost (before by-product credits) per precious metal gold equivalent ounce sold (including royalties) (3)

$

$

$

$

Total cash costs, after by-product credits, per precious metal gold equivalent ounce sold (including royalties) (3)

$

$

$

$

(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 in Management’s Discussion and Analysis contained in the report on Form 10-Q for the period ended June 30, 2014 filed with the Securities and Exchange Commission.    

(4)

Precious metal gold equivalent mill production for the three months ended June 30, 2014 of 24,172 ounces differs from gold equivalent ounces sold for the same period of 20,647 due principally to buyer (smelter) concentrate processing deductions of approximately 3,341 gold equivalent ounces and an increase in gold equivalent ounces contained in ending inventory of approximately 184 ounces.

(5)

Precious metal gold equivalent mill production for the six months ended June 30, 2014 of 47,896 ounces differs from gold equivalent ounces sold for the same period of 41,241 principally due to buyer (smelter) concentrate processing deductions of approximately 5,459 gold equivalent ounces and an increase in gold equivalent ounces contained in ending inventory of approximately 1,196 ounces.

GOLD RESOURCE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

for the three and six months ended June 30, 2014 and 2013

(U.S. dollars in thousands, except shares and per share amounts)

(Unaudited)

Three months ended June 30,

Six months ended June 30,

2014

2013

2014

2013

Sales of metals concentrate, net

$

$

$

$

Mine cost of sales:

Production costs

Depreciation and amortization

Reclamation and remediation

 -

 -

Total mine cost of sales

Mine gross profit

Costs and expenses:

General and administrative expenses

Exploration expenses

Facilities and mine construction

 -

 -

Total costs and expenses

Operating income (loss)

Other income (expense)

Income (loss) before income taxes

Provision (benefit) for income taxes

Net income (loss)

$

$

$

$

Other comprehensive income (loss):

Currency translation gain

 -

 -

Comprehensive income (loss)

$

$

$

$

Net income (loss) per common share:

Basic:

$

$

$

$

Diluted:

$

$

$

$

Weighted average shares outstanding:

Basic

Diluted

GOLD RESOURCE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands, except shares)

June 30,

December 31,

2014

2013

ASSETS

(Unaudited)

Current assets:

Cash and cash equivalents

$

$

Gold and silver bullion

Accounts receivable

Inventories

Income taxes receivable

 -

Deferred tax assets

Prepaid expenses and other assets

Total current assets

Land and mineral rights

Property, equipment and mine development - net

Inventories

Deferred tax assets

Investments (including $2,710 and nil, respectively, measured at fair value)

Total assets

$

$

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

$

Accrued expenses

Capital lease obligations

IVA taxes payable

Income taxes payable

 -

Dividends payable

Total current liabilities

Capital lease obligations

Reclamation and remediation liabilities

Total liabilities

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

Additional paid-in capital

Retained earnings/Accumulated (deficit)

Treasury stock at cost, 336,398 shares

Accumulated other comprehensive (loss)

Total shareholders' equity

Total liabilities and shareholders' equity

$

$

GOLD RESOURCE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

for the six months ended June 30, 2014 and 2013

(U.S. dollars in thousands)

(Unaudited)

2014

2013

Cash flows from operating activities:

Net income

$

$

Adjustments to reconcile net income to net cash

from operating activities:

Depreciation and amortization

Reclamation and remediation 

 -

Stock-based compensation

Unrealized foreign currency exchange loss (gain)

Impairment loss on gold and silver bullion

 -

Unrealized gain due to changes in fair value of investments

 -

Changes in operating assets and liabilities:

Accounts receivable

Inventories

Prepaid expenses and other assets

Accounts payable

Accrued expenses

IVA taxes payable/receivable

Income taxes payable/receivable

Net cash provided by operating activities

Cash flows from investing activities:

Capital expenditures

Purchases of gold and silver bullion

 -

Proceeds from conversion of gold and silver bullion

Investments

Net cash used in investing activities

Cash flows from financing activities:

Proceeds from exercise of stock options

Dividends paid

Proceeds from capital leases

 -

Repayment of capital leases

 -

Net cash used in financing activities

Effect of exchange rates on cash and equivalents

 -

Net increase (decrease) in cash and cash equivalents

Cash and equivalents at beginning of period

Cash and equivalents at end of period

$

$

Supplemental Cash Flow Information

Interest paid

$

$

 -

Income taxes paid

$

 -

$