• 17,211 ounces precious metal gold equivalent (AuEq) sold
• 14,488 ounces AuEq produced
• 8% AuEq production increase over prior year quarter
• $17.2 million mine gross profit generated
• $3.6 million net income, or $0.07 per share
• $8.2 million pretax income, or $0.15 per share
• $9.5 million dividend distribution, or $0.18 per share
• $5.5 million physical gold and silver treasury
• Successfully implemented physical gold and silver dividend program
• $0.8 million increase in cash and cash equivalents from first quarter

Overview of Second Quarter 2012 Results from El Aguila Project

Gold Resource Corporation’s El Aguila Project sold 17,211 ounces precious metal gold equivalent (AuEq) at a total cash cost of $509 per ounce AuEq in the second quarter. Average prices realized on sales during second quarter were $1,631 per ounce gold and $27 per ounce silver. The Company produced 14,488 ounces (AuEq) before payable metal deductions. Mine gross profit generated was $17.2 million. The Company paid $9.5 million to shareholders in dividends and converted $1.3 million of its treasury into physical gold and silver. In addition, the Company successfully implemented its physical dividend program where shareholders have the option to convert their cash dividends to physical gold and/or silver.

“The second quarter was a challenge as infrastructure requirements slowed the development and stoping of high-grade ore zones at La Arista,” stated Gold Resource Corporation’s President, Mr. Jason Reid. “This resulted in processing diluted development ore and stoping from available lower grade ore zones. Even with mill production for the quarter below our target, it is still impressive that we were profitable, we paid $9.5 million in dividends to the owners of the Company, and we were still able to put approximately $800,000 in the bank.”

Mr. Reid continued, “Our total cash cost per ounce of gold equivalent sold this quarter was high as a direct result of the lower production. Had we achieved our targeted production of 30,000 gold equivalent ounces, we believe total cash costs would have been equal to about half of the $509 per gold equivalent ounce we reported. We believe this higher total cash cost number to be temporary and will decrease with anticipated higher production in the current and future quarters.”

“We expect increased production from high-grade ore zone blocks between levels 7 through 10 prepared in the second quarter, which we are now actively stoping,” stated Mr. Reid.

The Company will host a conference call at 11:00 a.m. EDT on Friday, August 10^th. Conference call details can be found on the Company website at www.goldresourcecorp.com.

Below is a table of the key production statistics for our El Aguila Project during the three and six months ended June 30, 2012:

(1) A reconciliation of this non-GAAP measure to mine cost of sales, the most comparable GAAP measure, can be found in the Non-GAAP Measures of the Company’s quarterly report on Form 10-Q for the period ended June 30, 2012 filed with the SEC and available at www.sec.gov.

(1) No activity for the three months ended June 30, 2011.
(2) Silver ounces were considered a by-product in arriving at the total cash cost per ounce equivalent.

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 52,828,776 shares outstanding, no warrants and no debt. Gold Resource Corporation is the only Company to offer its shareholders a dividend option to obtain physical gold or silver in addition to cash. 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 and six months ended June 30, 2012 and 2011, its financial condition at June 30, 2012 and December 31, 2011 and its cash flows for the three months and six months ended June 30, 2012 and 2011. The summary data for the three and six months ended June 30, 2012 and 2011 is unaudited; the summary data for the year ended December 31, 2011 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2011, 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 10-Q and Form 10-K.