Financial highlights

· Record half year revenue of $496.8 million, up 62%

· Record adjusted EBITDA of $297.1 million, up 98%*

· Record attributable profit after tax of $92.0 million, up 137%

· Record half year EPS of $0.27, up 145%

· Strong financial position with a half-year end cash balance of $691 million

· Proposed interim dividend of $0.03 per share up 50% (H1 2010:$0.02 per share)

· Minority investments currently valued at $420m**

Operational highlights

· H1 2011 production of 11.1 million attributable silver equivalent ounces

· Production target of 22.5 million attributable silver equivalent ounces on track

· 3 new exploration projects acquired: San Antonio, Coriwasi and Huachoja

· 2011 $70m exploration programme delivering encouraging results:

o Advanced projects, Inmaculada and Crespo, set to deliver feasibility studies due in Q4 2011

o Azuca feasibility study due for completion in H1 2012

o Brownfield exploration at Arcata, Pallancata and San Jose yielding outstanding intercepts

o Extensive drilling programmes in Chile, Peru, Mexico and Argentina

· Further exploration results expected in H2 2011
* Adjusted EBITDA is calculated as profit from continuing operations before exceptional items, net finance costs and income tax plus depreciation and exploration expenses other than personnel and other exploration related fixed expenses.

**Market value (as of 30 June 2011) of investments accounted under equity method and available for sale financial assets.

Commenting on the results, Eduardo Hochschild, Executive Chairman, said:

"I am pleased to report a very strong set of financial results for the first half of 2011 with large increases in many of our key performance indicators and a continuing robust financial position. The Board is proposing to pay an interim dividend of $0.03 per share which represents a 50% increase versus this time last year.

We are on track to deliver on all our stated production and cost targets despite the prevailing challenging industry environment with continuing strong precious metal prices likely to continue in the second half. Key deliverables for the rest of the year include feasibility studies at our Inmaculada and Crespo projects, ongoing progress on maximising our resource life and further results from this year's exploration programme.

With regards to the Board, Sir Malcolm Field and Dionisio Romero have given advance notice of their decisions to retire as Non-Executive Directors at the 2012 AGM. I would like to express my sincere gratitude to both Malcolm and Dionisio for their support and invaluable contributions to the Group since joining the Hochschild Board back in 2006.

To ensure the continued independent presence on the Board, I am delighted to announce the appointment of Rupert Pennant-Rea as a Non-Executive Director on 1 September 2011. Rupert brings vast experience from his position on the boards of mining and blue-chip London-listed companies."