SIGNIFICANT CUSTOMERS

The Company markets its doré to credit worthy bullion trading houses, market makers and members of the London Bullion Market Association, industrial companies and sound financial institutions. The refined metals are sold to end users for use in electronic circuitry, jewelry, silverware, pharmaceutical products, and the technology industry. The Company currently has seven trading counterparties (International Commodities, Mitsui, Mitsubishi, Standard Bank, TD Securities, Valcambi, Johnson Matthey and Auramet) and the sales of metals to these companies amounted to approximately 92%, and 80% of total metal sales for the six months ended June 30, 2012 and 2011, respectively. Generally, the loss of a single bullion trading counterparty would not adversely affect the Company due to the liquidity of the markets and the availability of alternative trading counterparties.

Sales of silver and gold concentrates to third parties (Nyrstar, Aurubis, Sumitomo, Trafigura, Auramet, and China National Gold) amounted to approximately 8% and 20% of total metal sales for the three months ended June 30, 2012, and 2011, respectively. The loss of any one smelting and refining client may have a material adverse effect if alternate smelters and refiners are not available. The Company believes there is sufficient global capacity available to address the loss of any one smelter.

The following table indicates customers that represent 10% or more of total sales of metal for the three months ended June 30, 2012 and 2011 (in millions):



Customer	Three months ended June 30,		Three months ended June 30,		Segments reporting sales of metal
	2012		2011
Valcambi	$	148.3	$	90.3	Palmarejo, San Bartolomé
Standard	$	9.9	$	50.5	Palmarejo

The following table indicates customers that represent 10% or more of total sales of metal for the six months ended June 30, 2012 and 2011 (in millions):



Customer	Six months ended June 30,		Six months ended June 30,		Segments reporting sales of metal
	2012		2011
Valcambi	$	256.3	$	142.9	Palmarejo, San Bartolomé
Standard	$	24.5	$	50.5	Palmarejo
China National Gold	$	16.0	$	69.3	Kensington
International Commodities	$	23.8	$	46.2	Palmarejo, San Bartolomé, Rochester