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

COLORADO SPRINGS, CO- May 12, 2014 - 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

Contact:

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

Gold Resource Corporation ( GORO )

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