HispanicBusiness

COLORADO SPRINGS, CO -- (Marketwire) -- 11/08/12 -- Gold Resource Corporation (NYSE MKT: GORO) (the "Company") today announced it has reached a settlement in the dispute with its concentrate buyer. Gold Resource Corporation is a low-cost gold producer with operations in southern Mexico. The Company has returned over $63 million to shareholders in monthly dividends since declaring commercial production July 1, 2010 and may be the first company offering shareholders the option to convert their cash dividends into physical gold or silver.

On October 17, 2012, the Company announced in its third quarter preliminary production results press release that a dispute arose with its metal concentrate buyer over net adjustments to its final invoices relating to approximately 2,300 ounces gold equivalent attributable to certain concentrate sales. The settlement requires the buyer to accept the Company's provisional assays taken prior to shipment of its metal concentrates for April, May and June 2012 for final invoice and payment, but not the provisional assays relating to February and March 2012, for which gold equivalent ounces of approximately 1,800 will not be paid. As a result, the Company will restate its first and second quarter 2012 financial statements to reflect a net reduction to revenues of approximately $3.7 million for the six months ended June 30, 2012, of which $3.0 million represents the cash settlement with the buyer and $0.7 million represents a non-cash derivative adjustment. Due to the work involved on the restatement, the Company anticipates it will file a request for an extension of time to file its third quarter report on Form 10-Q.

Typical invoicing of concentrates between the Company and its buyer begins with a provisional invoice using the Company's sampling and assaying results to calculate a provisional invoice and payment of 90% of that provisional invoice with the balance due upon agreement of final invoice. Upon arrival at the buyer's facilities, another concentrate sample is taken and distributed for assays to determine the final sales price of the shipment. During the third quarter of 2012, management first became aware of a problem concerning significant variances between the Company's internal laboratory results and the external assay results used to determine final invoice and payment. The process for reaching final settlement of open invoices takes a minimum of 2 months and upwards of 3 to 5 months if there is a discrepancy between assay results and the use of independent third party assays known as "umpire assays" is required. The difference between the provisional payment when the concentrates are shipped and the final sales price is adjusted in a future period when the final invoice is settled between the Company and the buyer.

Upon discovery of the large variances between the Company's internal preliminary assays and the buyer's assays from samples obtained at the concentrate yard, management conducted an investigation to determine the cause of the discrepancies and disputed any payment adjustments that were due from invoices where large variances had been identified. The results of the investigation showed that there were significant issues with controls and security at the buyer's concentrate yard that may have compromised and affected various concentrate samples; however, the buyer has asserted defenses that other unrelated factors may have affected the Company's concentrate samples. As a result of the findings of the Company's investigation, and in an effort to move its commercial relationship forward, the Company and the buyer discussed these issues and the buyer agreed to the settlement described above.