COLORADO SPRINGS, CO — (Marketwired) — 11/02/16 — Gold Resource Corporation (NYSE MKT: GORO) (the "Company") reported production results for the third quarter ended September 30, 2016 of 6,066 ounces of gold and 431,335 ounces of silver, which along with base metal revenue generated $21.4 million in net revenue and $1.6 million in net income for the quarter. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned $108 million to shareholders in monthly dividends since commercial production commenced July 1, 2010, and offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery.

2016 Q3 HIGHLIGHTS

• 6,066 gold ounces produced
• 431,335 silver ounces produced
• $21.4 million net sales
• $1.6 million net income
• $623 total cash cost per gold equivalent ounce (after by-product credits)
• $8.7 million adjusted cash flow from mine site operations
• $8.7 million by-product credits, or $664 per ounce sold
• $0.3 million dividend distributions, or $0.005 per share for quarter
• $17.1 million cash and cash equivalents
• Purchased 100% interest in the Isabela Pearl development project in Nevada, USA
• Purchased 100% interest in the Mina Gold exploration property in Nevada, USA

Overview of Q3 2016 Results

Gold Resource Corporation's Aguila Project sold 13,054 gold equivalent ounces at a total cash cost of $623 per ounce (after by-product credits). Realized average metal price sales during the quarter were $1,339 per ounce gold and $20.79 per ounce silver. The Company recorded net income of $1.6 million, or $0.03 per share. Adjusted cash flow from mine site operations totaled $8.7 million. The Company paid $0.3 million to shareholders in dividends, or $0.005 per share during the quarter. Cash and cash equivalents at quarter end totaled $17.1 million. Realized gold and silver prices increased 20% and 43%, respectively, compared to the third quarter of 2015.

Production for the first three quarters of 2016 included 22,540 ounces of gold and 1,437,975 ounces of silver. The Company maintains its 2016 Annual Outlook, targeting a plus or minus 5 percent production, of 26,000 gold ounces, 1,900,000 silver ounces, 1,100 tonnes of copper, 3,200 tonnes of lead and 12,900 tonnes of zinc.

As previously announced, during the third quarter, the Company purchased a 100% interest in the Isabella Pearl high-grade gold potential open pit heap leach project located in Nevada, U.S.A. An earlier study completed by a third-party reported that the project contains Proven and Probable Reserves of 191,400 gold ounces at an average grade of 2.18 grams per tonne (g/t) and it is in advanced stages of engineering and mine permitting. The Company also acquired the Mina Gold property located in Mineral County, Nevada. The Mina Gold property contains an historic third-party estimate of mineralized material totaling 1,606,000 tonnes grading 1.88 gram per tonne (g/t) gold.

The following Production and Sales Statistics table summarizes certain information about our mining operations for the three and nine months ended September 30, 2016 and 2015:

                       Production and Sales Statistics


                                   Three months ended    Nine months ended
                                      September 30,        September 30,
                                 --------------------- ---------------------
                                    2016       2015       2016       2015
                                 ---------- ---------- ---------- ----------
Milled
  Tonnes Milled (1)                 113,945    105,309    331,423    300,190
  Tonnes Milled per Day (2)           1,278      1,143      1,269      1,104
Grade
  Average Gold Grade (g/t)             1.86       2.25       2.36       2.52
  Average Silver Grade (g/t)            128        180        146        216
  Average Copper Grade (%)             0.24       0.41       0.31       0.39
  Average Lead Grade (%)               1.18       1.41       1.18       1.37
  Average Zinc Grade (%)               3.45       4.02       3.71       3.78
Recoveries
  Average Gold Recovery (%)              89         90         90         90
  Average Silver Recovery (%)            92         92         92         93
  Average Copper Recovery (%)            78         80         77         79
  Average Lead Recovery (%)              74         75         72         75
  Average Zinc Recovery (%)              82         83         84         82
Mill production (before payable
 metal deductions) (3)
  Gold (ozs.)                         6,066      6,825     22,540     21,960
  Silver (ozs.)                     431,335    561,985  1,437,975  1,932,611
  Copper (tonnes)                       213        343        777        929
  Lead (tonnes)                       1,000      1,114      2,847      3,071
  Zinc (tonnes)                       3,232      3,499     10,306      9,299
Payable metal sold
  Gold (ozs.)                         6,683      6,220     21,096     21,994
  Silver (ozs.)                     410,337    503,929  1,337,668  1,770,093
  Copper (tonnes)                       200        332        739        877
  Lead (tonnes)                         893      1,049      2,629      2,875
  Zinc (tonnes)                       2,480      2,905      8,503      7,668
Average metal prices realized
 (4)
  Gold ($ per oz.)                    1,339      1,115      1,271      1,177
  Silver ($ per oz.)                  20.79      14.50      17.45      16.09
  Copper ($ per tonne)                4,791      4,883      4,577      5,436
  Lead ($ per tonne)                  1,908      1,619      1,808      1,746
  Zinc ($ per tonne)                  2,421      1,701      2,012      1,981
Precious metal gold equivalent
 ounces produced (mill
 production) (3)
  Gold Ounces                         6,066      6,825     22,540     21,960
  Gold Equivalent Ounces from
   Silver                             6,697      7,308     19,741     26,410
                                 ---------- ---------- ---------- ----------
  Total Precious Metal Gold
   Equivalent Ounces                 12,763     14,133     42,281     48,370
                                 ========== ========== ========== ==========
Precious metal gold equivalent
 ounces sold
  Gold Ounces                         6,683      6,220     21,096     21,994
  Gold Equivalent Ounces from
   Silver                             6,371      6,553     18,364     24,189
                                 ---------- ---------- ---------- ----------
  Total Precious Metal Gold
   Equivalent Ounces                 13,054     12,773     39,460     46,183
                                 ========== ========== ========== ==========
  Total cash cost before by-
   product credits per precious
   metal gold equivalent ounce
   sold (5)                      $    1,287 $    1,250 $    1,152 $    1,046
                                 ========== ========== ========== ==========
  Total cash cost after by-
   product credits per precious
   metal gold equivalent ounce
   sold (5)                      $      623 $      603 $      511 $      505
                                 ========== ========== ========== ==========
  Total all-in sustaining cost
   per precious metal gold
   equivalent ounce sold (5)     $      907 $    1,516 $      910 $    1,027
                                 ========== ========== ========== ==========
  Total all-in cost per precious
   metal gold equivalent ounce
   sold (5)                      $    1,021 $    1,736 $    1,027 $    1,287
                                 ========== ========== ========== ==========

(1)   For the third quarter and first nine months of 2016, this includes
      11,459 and 38,764 tonnes, respectively of low-grade stockpile open pit
      ore.
(2)   Based on actual days the mill operated during the period.
(3)   Mill production represents metal contained in concentrates produced at
      the mill, which is before payable metal deductions are levied by the
      buyer of our concentrates. Payable metal deduction quantities are
      defined in our contracts with the buyer of our concentrates and
      represent an estimate of metal contained in the concentrates produced
      at our mill which the buyer cannot recover through the smelting
      process. There are inherent limitations and differences in the
      sampling method and assaying of estimated metal contained in
      concentrates that are shipped, and those contained metal estimates are
      derived from sampling methods and assaying throughout the mill
      production process. The Company monitors these differences to ensure
      that precious metal mill production quantities are materially correct.
(4)   Average metal prices realized vary from the market metal prices due to
      final settlement adjustments from our provisional invoices when they
      are settled. Our average metal prices realized will therefore differ
      from the market average metal prices in most cases.
(5)   For a reconciliation of this non-GAAP measure to total mine cost of
      sales, which is the most comparable U.S. GAAP measure, please see Non-
      GAAP Measures in the Company's most recently filed 10-Q.

See Accompanying Tables

The following information summarizes the results of operations for Gold Resource Corporation for the three and nine months ended September 30, 2016 and 2015, its financial condition at September 30, 2016 and December 31, 2015 and its cash flows for the nine months ended September 30, 2016 and 2015. The summary data for the three and nine months ended September 30, 2016 is unaudited; the summary data as of December 31, 2015 is derived from our audited financial statements contained in our annual report on Form 10-K for the year ended December 31, 2015, 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 precious metal gold equivalent per ounce, total all-in sustaining cost per precious metal gold equivalent per ounce and total all-in cost per precious metal gold equivalent per ounce contained in this press release are non-GAAP financial measures. Please see "Management's Discussion and Analysis and Results of Operations" contained in the Company's most recent Form 10-Q and Form 10-K for a complete discussion and reconciliation of the non-GAAP measures.

                          GOLD RESOURCE CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS
       (U.S. dollars in thousands, except share and per share amounts)


                                               September 30,   December 31,
                                                    2016           2015
                                               -------------  -------------
                                                (Unaudited)
ASSETS
Current assets:
  Cash and cash equivalents                    $      17,065  $      12,822
  Gold and silver rounds/bullion                       3,876          2,988
  Accounts receivable                                  2,414            321
  Inventories                                          9,409          8,753
  Income tax receivable                                  937          3,794
  Prepaid expenses and other current assets            1,693          3,940
                                               -------------  -------------
    Total current assets                              35,394         32,618
Property, plant and mine development, net             70,959         51,637
Deferred tax assets                                   15,055         21,064
Other non-current assets                               1,547          1,216
                                               -------------  -------------
    Total assets                               $     122,955  $     106,535
                                               =============  =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
  Accounts payable                             $       5,433  $      11,600
  Mining royalty taxes payable                         1,079            230
  Accrued expenses and other current
   liabilities                                         2,596          3,072
                                               -------------  -------------
    Total current liabilities                          9,108         14,902
Reclamation and remediation liabilities                2,554          2,815
                                               -------------  -------------
    Total liabilities                                 11,662         17,717
Shareholders' 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: 56,903,272 and
   56,566,874 shares issued and outstanding,
   respectively, at September 30, 2016 and
   54,603,104 and 54,266,706 shares issued and
   outstanding, respectively, at December 31,
   2015                                                   57             55
  Additional paid-in capital                         111,790         96,766
  Accumulated retained earnings (deficit)              6,501           (948)
  Treasury stock at cost, 336,398 shares              (5,884)        (5,884)
  Accumulated other comprehensive loss                (1,171)        (1,171)
                                               -------------  -------------
    Total shareholders' equity                       111,293         88,818
                                               -------------  -------------
    Total liabilities and shareholders' equity $     122,955  $     106,535
                                               =============  =============



                          GOLD RESOURCE CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
       (U.S. dollars in thousands, except share and per share amounts)
                                 (Unaudited)


                             Three months ended        Nine months ended
                                September 30,            September 30,
                          ------------------------  -----------------------
                              2016         2015         2016        2015
                          -----------  -----------  ----------- -----------

Sales, net                $    21,367  $    19,437  $    64,968 $    71,082
Mine cost of sales:
  Production costs             12,767       13,411       34,570      40,462
  Depreciation and
   amortization                 3,189        1,579        9,049       5,195
  Reclamation and
   remediation                     48            6          139          36
                          -----------  -----------  ----------- -----------
    Total mine cost of
     sales                     16,004       14,996       43,758      45,693
                          -----------  -----------  ----------- -----------
Mine gross profit               5,363        4,441       21,210      25,389
Costs and expenses:
  General and
   administrative
   expenses                     2,027        2,913        5,875       8,032
  Exploration expenses            881        1,810        2,027       6,416
                          -----------  -----------  ----------- -----------
    Total costs and
     expenses                   2,908        4,723        7,902      14,448
                          -----------  -----------  ----------- -----------
Operating income (loss)         2,455         (282)      13,308      10,941
Other (expense) income,
 net                              (74)      (1,033)       1,170      (2,080)
                          -----------  -----------  ----------- -----------
Income (loss) before
 income taxes                   2,381       (1,315)      14,478       8,861
  Provision for income
   taxes                          787         (846)       6,479       3,465
                          -----------  -----------  ----------- -----------
Net income (loss)         $     1,594  $      (469) $     7,999 $     5,396
                          ===========  ===========  =========== ===========
Net income (loss) per
 common share:
  Basic                   $      0.03  $     (0.01) $      0.15 $      0.10
  Diluted                 $      0.03  $     (0.01) $      0.14 $      0.10
Weighted average shares
 outstanding:
  Basic                    55,781,382   54,179,369   54,994,430  54,179,369
                          ===========  ===========  =========== ===========
  Diluted                  57,597,392   54,179,369   55,589,307  54,201,274
                          ===========  ===========  =========== ===========



                          GOLD RESOURCE CORPORATION
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                         (U.S. dollars in thousands)
                                 (Unaudited)


                                                       Nine months ended
                                                         September 30,
                                                        2016        2015
                                                    ----------- -----------

Cash flows from operating activities:
  Net income                                        $     7,999 $     5,396
                                                    ----------- -----------
  Adjustments to reconcile net income to net cash
   from operating activities:
    Deferred income taxes                                   250      (1,522)
    Depreciation, depletion and amortization              9,343       6,331
    Stock-based compensation                                997       3,293
    Other operating adjustments                            (531)      2,472
  Changes in operating assets and liabilities:
    Accounts receivable                                  (2,092)       (435)
    Inventories                                            (657)     (1,149)
    Prepaid expenses and other current assets             1,203        (897)
    Accounts payable and other accrued liabilities       (2,774)      5,069
    Mining royalty and income taxes
     payable/receivable                                   3,690      (4,528)
    Other noncurrent assets                                  64         466
                                                    ----------- -----------
  Net cash provided by operating activities              17,492      14,496
                                                    ----------- -----------
Cash flows from investing activities:
    Capital expenditures                                (12,637)    (21,837)
    Proceeds from the sale of equity investments            749           -
    Other investing activities                             (315)         40
                                                    ----------- -----------
  Net cash used in investing activities                 (12,203)    (21,797)
                                                    ----------- -----------
Cash flows from financing activities:
    Proceeds from the exercise of stock options             391           -
    Dividends paid                                         (818)     (4,876)
    Repayment of capital leases                            (606)     (1,123)
                                                    ----------- -----------
  Net cash used in financing activities                  (1,033)     (5,999)
                                                    ----------- -----------
Effect of exchange rate changes on cash and cash
 equivalents                                                (13)       (136)
                                                    ----------- -----------
Net increase (decrease) in cash and cash equivalents      4,243     (13,436)
Cash and cash equivalents at beginning of period         12,822      27,541
                                                    ----------- -----------
Cash and cash equivalents at end of period          $    17,065 $    14,105
                                                    =========== ===========
Supplemental Cash Flow Information
  Interest expense paid                             $        13 $        65
                                                    =========== ===========
  Income and mining taxes paid                      $       256 $     8,464
                                                    =========== ===========
Non-cash investing activities:
    Common stock issued for the acquisition of
     Walker Lane Minerals Corp                      $    13,060 $         -
                                                    =========== ===========
    Common stock issued for the acquisition of the
     Mina Gold property                             $       850 $         -
                                                    =========== ===========

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 at its producing Oaxaca, Mexico Mining Unit and exploration properties at its Nevada, USA Mining Unit. The Company has 56,566,874 shares outstanding, no warrants, no long term debt and has returned $108 million back to shareholders since commercial production commenced July 1, 2010. Gold Resource Corporation offers shareholders the option to convert their cash dividends into physical gold and silver and take delivery. 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.