HispanicBusiness

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.

                         GOLD RESOURCE CORPORATION                       (An Exploration Stage Company)                   CONSOLIDATED STATEMENTS OF OPERATIONS      for the three and nine months ended September 30, 2012 and 2011      (U.S. dollars in thousands, except shares and per share amounts)                                (Unaudited)                            Three months ended         Nine months ended                               September 30,             September 30,                             2012         2011         2012         2011                         -----------  -----------  -----------  -----------Sales of metals concentrate, net        $    36,490  $    37,781  $   103,399  $    69,725                         -----------  -----------  -----------  -----------Mine cost of sales:  Production costs            12,141        7,690       31,838       16,967  Depreciation and   amortization                  556          184          940          327  Accretion                       20           20           60           63                         -----------  -----------  -----------  -----------    Total mine cost of     sales                    12,717        7,894       32,838       17,357                         -----------  -----------  -----------  -----------Mine gross profit             23,773       29,887       70,561       52,368Costs and expenses:  General and   administrative   expenses                    2,933        1,812        8,922        4,790  Exploration expenses         1,882        1,735        5,466        3,271  Construction and   development                 5,394        4,467       13,492       13,557                         -----------  -----------  -----------  -----------    Total costs and     expenses                 10,209        8,014       27,880       21,618                         -----------  -----------  -----------  -----------Operating income              13,564       21,873       42,681       30,750Other income (expense)          (485)       2,476       (1,782)       2,333                         -----------  -----------  -----------  -----------Income before income taxes                        13,079       24,349       40,899       33,083  Provision for income   taxes                       5,782        9,131       16,398       10,937                         -----------  -----------  -----------  -----------Net income before extraordinary item            7,297       15,218       24,501       22,146Extraordinary items:  Flood loss, net of   income tax benefit of   $750                            -            -            -       (1,756)                         -----------  -----------  -----------  -----------Net income               $     7,297  $    15,218  $    24,501  $    20,390                         ===========  ===========  ===========  ===========Other comprehensive (loss) income:  Currency translation   gain (loss)                 2,168       (4,227)       1,943       (3,844)                         -----------  -----------  -----------  -----------Net comprehensive income $     9,465  $    10,991  $    26,444  $    16,546                         ===========  ===========  ===========  ===========Net income per common share:  Basic:    Before extraordinary     item                $      0.14  $      0.29  $      0.46  $      0.41    Extraordinary item   $         -  $         -  $         -  $     (0.03)                         -----------  -----------  -----------  -----------    Net income           $      0.14  $      0.29  $      0.46  $      0.38                         ===========  ===========  ===========  ===========  Diluted:    Before extraordinary     item                $      0.13  $      0.27  $      0.43  $      0.39    Extraordinary item   $         -  $         -  $         -  $     (0.03)                         -----------  -----------  -----------  -----------    Net income           $      0.13  $      0.27  $      0.43  $      0.36                         ===========  ===========  ===========  ===========Weighted average shares outstanding:  Basic                   52,848,586   52,997,194   52,885,640   52,997,929                         ===========  ===========  ===========  ===========  Diluted                 56,254,632   56,357,096   56,365,316   56,475,441                         ===========  ===========  ===========  ===========The accompanying notes are an integral part of these consolidated financial statements.                         GOLD RESOURCE CORPORATION                       (An Exploration Stage Company)                        CONSOLIDATED BALANCE SHEETS                 (U.S. dollars in thousands, except shares)                                                    September     December                                                       30,          31,                                                       2012         2011                                                   -----------  -----------                                                   (unaudited)                      ASSETSCurrent assets:  Cash and cash equivalents                        $    36,242  $    51,960  Gold and silver bullion                                6,560        2,549  Accounts receivable                                   16,090       14,281  Inventories                                            5,086        4,243  Deferred tax assets                                   11,118       11,118  Prepaid expenses and other assets                        701          957                                                   -----------  -----------    Total current assets                                75,797       85,108Land and mineral rights                                    227          227Property and equipment - net                            12,959       10,318Inventories                                                890            -Deferred tax assets                                     19,517       19,517                                                   -----------  -----------    Total assets                                   $   109,390  $   115,170                                                   ===========  ===========       LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:  Accounts payable                                 $     2,437  $     1,691  Accrued expenses                                       4,314        4,879  IVA taxes payable                                      3,191          559  Income taxes payable                                   1,990       15,987  Dividends payable                                      3,170        2,645                                                   -----------  -----------    Total current liabilities                           15,102       25,761Asset retirement obligation                              2,539        2,281                                                   -----------  -----------    Total liabilities                                   17,641       28,042Shareholders' 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: 53,015,767 and 52,998,303     shares issued and outstanding, respectively            53           53Additional paid-in capital                             112,201      132,529(Deficit) accumulated during the exploration stage     (15,021)     (39,522)Treasury stock at cost, 186,991 shares                  (3,449)      (1,954)Other comprehensive (loss) - currency translation adjustment                                             (2,035)      (3,978)                                                   -----------  -----------    Total shareholders' equity                          91,749       87,128                                                   -----------  -----------    Total liabilities and shareholders' equity     $   109,390  $   115,170                                                   ===========  ===========The accompanying notes are an integral part of these consolidated financial statements.                         GOLD RESOURCE CORPORATION                       (An Exploration Stage Company)                   CONSOLIDATED STATEMENTS OF CASH FLOWS      for the three and nine months ended September 30, 2012 and 2011                        (U.S. dollars in thousands)                                (Unaudited)                                  Three months ended     Nine months ended                                     September 30,         September 30,                                    2012       2011       2012       2011                                 ---------  ---------  ---------  ---------Cash flows from operating activities:  Net income                     $   7,297  $  15,218  $  24,501  $  20,390                                 ---------  ---------  ---------  ---------Adjustments to reconcile net income to net cash provided by (used in) operating activities:  Depreciation and amortization        600        181      1,117        511  Accretion                             20         21         60         63  Stock-based compensation           1,980      1,771      6,640      4,670  Currency translation gain   (loss)                            2,168     (4,227)     1,943     (3,843)  Unrealized (gain) loss from   gold and silver bullion held     (1,073)       287       (744)       287  Realized loss from gold and   silver bullion converted             19          -        109          -  Other                                  6          -          6          -Changes in operating assets and liabilities:  Accounts receivable              (11,504)   (12,137)    (1,809)   (13,549)  Inventories                         (689)     1,033     (1,733)    (1,477)  Income tax receivable                712          -          -          -  Prepaid expenses and other   assets                              168       (797)       256     (1,180)  Accounts payable                   1,851        348        746      1,549  Accrued expenses                     102        638       (565)       116  IVA taxes payable                   (485)     3,621      2,632      5,451  Income taxes payable               1,990      9,131    (13,997)    10,187                                 ---------  ---------  ---------  ---------Total adjustments                   (4,135)      (130)    (5,339)     2,785                                 ---------  ---------  ---------  ---------  Net cash provided by operating   activities                        3,162     15,088     19,162     23,175                                 ---------  ---------  ---------  ---------Cash flows from investing activities:  Capital expenditures                (814)    (1,955)    (3,763)    (5,044)  Purchases of gold and silver   bullion                            (525)    (2,012)    (4,707)    (2,012)  Proceeds from conversion of   gold and silver bullion             536          -      1,331          -                                 ---------  ---------  ---------  ---------  Net cash used in investing   activities                         (803)    (3,967)    (7,139)    (7,056)                                 ---------  ---------  ---------  ---------Cash flows from financing activities:  Dividends paid                    (9,514)    (6,890)   (26,444)   (17,490)  Treasury stock purchases          (1,495)      (972)    (1,495)      (972)                                 ---------  ---------  ---------  ---------  Net cash (used in) financing   activities                      (11,009)    (7,862)   (27,939)   (18,462)                                 ---------  ---------  ---------  ---------Effect of exchange rates on cash and equivalents                       114       (343)       198       (225)                                 ---------  ---------  ---------  ---------Net increase (decrease) in cash and cash equivalents               (8,536)     2,916    (15,718)    (2,568)Cash and equivalents at beginning of period                44,778     42,098     51,960     47,582                                 ---------  ---------  ---------  ---------Cash and equivalents at end of period                          $  36,242  $  45,014  $  36,242  $  45,014                                 =========  =========  =========  =========Supplemental Cash Flow InformationIncome taxes paid                $   2,003  $       -  $  30,395  $       -                                 =========  =========  =========  =========The accompanying notes are an integral part of these consolidated financial statements.