Gold Resource Corporation: Gold Resource Corporation Closes $20 Million Private Placement With Hochschild Mining Strengthening Strategic Alliance

DENVER, CO--(Marketwire - July 1, 2009) - Gold Resource Corporation (GRC) (OTCBB: GORO) (FRANKFURT: GIH) is pleased to announce Hochschild Mining plc (Hochschild) is purchasing in a $20 million private placement 5 million restricted shares of GRC's common stock at $4.00 per share with no warrants. The funding will be completed in two tranches: a $5 million tranche closed July 30, 2009 and the second tranche of $15 million which will close by July 20, 2009. Funding will primarily be used at GRC's Aguila Project in the state of Oaxaca, Mexico. Hochschild is a leading mid-tier precious metals producer, based in Lima, Peru and listed on the London Stock Exchange, with mining projects in five countries in the Americas including Mexico. This placement will increase Hochschild's total holdings in GRC to approximately 24%.

The Aguila Project is targeting production upon completing construction of the mill and upon receiving its final permit to mine from its high-grade open pit deposit. Though the granting of the last operating permit has taken longer than GRC would have liked the company has been given no indication at this point that there is any problem with its open pit permit application and management is optimistic the permit will be granted soon.

Funds totaling $16 million are allocated for project completion, startup and working capital needs. The additional $4 million raised is allocated for accelerated exploration at the Aguila Project, accelerated development for the underground Arista deposit once the permit for the surface disturbance for the underground decline is granted, and accelerated exploration at two other GRC high-grade properties, Las Margaritas and El Rey. Gold Resource Corporation is discussing the possibility of contracting Hochschild for the accelerated exploration of these other two properties for the benefit of GRC.

Gold Resource Corporation's president, William W. Reid stated, "We are pleased to have the continued support and financial assistance of Hochschild Mining during these final phases of project construction. Hochschild has and is assisting us in many ways, in addition to financial support, which has been much appreciated and we look forward to their possible assistance in accelerating exploration of our large property position."

Mr. Reid stated, "We are very pleased with the construction progress of our Aguila Project. Mill construction continues with the final contractor, the mechanical/electrical contract, and with equipment arrival and installation. The tailings facility is nearing completion with over three quarters of the double lined facility finished. Overburden removal of the open pit continues at such a rapid pace that we have chosen to start the second phase of the tailings dam much sooner than originally planned. Our project manager and employees, as well as Lyntek Engineering and the construction contractors, are all doing an excellent job."

Mr. Reid continued, "We remain committed and focused on putting the El Aguila Project into production in the shortest amount of time possible with the fewest number of shares outstanding. We are doing just that. Though the federal permit timing is one aspect that remains outside of our control, and dictates our ultimate project timeframes, we are optimistic the final federal open pit permit will be granted soon as we have been given no indication to the contrary. With our capital structure of only 46 million shares outstanding our potential to create significant shareholder value remains intact. The ultimate production startup will depend on permit timing, equipment deliveries and construction schedules."

Miguel Aramburú, Chief Executive Officer of Hochschild Mining plc, commented, "We are delighted to announce this transaction which provides Hochschild further exposure to low cost, high grade ounces in the Southern Mexico, in line with our cluster consolidation strategy. We have been extremely impressed with the quality of GRC's assets and the speed at which the El Aguila property is being developed. This investment will enable GRC to complete the construction of the mine and plant as well as to further their exploration efforts."

Mr. Reid stated, "It is a very exciting time for Gold Resource Corporation. We have come a long way in a very short period of time for our industry. We are positioning ourselves to emerge, in the very near term, as a low cost producer."

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 four potential high-grade gold and silver properties in Mexico's southern state of Oaxaca. The company has 42,345,489 shares outstanding and no warrants. 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.

About Hochschild Mining plc:

Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild currently operates five underground epithermal vein mines, four located in southern Peru, one in southern Argentina, one open pit mine in northern Mexico and numerous long-term prospects throughout the Americas. Hochschild has over forty years experience in the mining of precious metal epithermal vein deposits. For further information please visit www.hochschildmining.com.

Hochschild Mining plc, and its affiliates do not accept responsibility for the use of project data or the adequacy or accuracy of this release.

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 commercial production at the El Aguila Project will be achieved in the time frames estimated, at the rates and costs estimated, or even at all. 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 Securities and Exchange Commission.