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Tahoe Says In-fill Drilling Results Corroborated Resource Model At Escobal Project In Guatemala

Tahoe Resources Inc. (THO.TO) announced Monday that it has targeted a preliminary economic assessment for the fourth quarter of 2010, at its 100% owned Escobal project in Guatemala. Tahoe's current concept is to develop a high-grade underground mining operation at about 3,500 tons per day.

The company said assay results of 52 drill holes, majority of them in-fill holes, totaling 17,748 meters were received since the completion of the NI 43-101 resource estimate by AMEC Americas Ltd. in April 2010. Tahoe said the In-fill drilling results corroborated the resource model.

Tahoe said Step-out drilling between the East and Central zones intersected mineralization laterally and to depth beyond the limits of the current resource model.

For the remainder of 2010, ongoing drill programs would continue to explore laterally and to depth in both mineralized zones.

SRK Consulting has been contracted to conduct a targeted structural study to characterize controls of the mineralized system and guide future exploration work. M3 Engineering and Technology Corp. has been contracted to provide engineering services and to prepare the Preliminary Economic Assessment-PA targeted for the 4th quarter of 2010.

Tahoe's President & CEO Kevin McArthur said, "We continue to expand known mineralization through drilling, and our on-going metallurgical testing is showing strong economic indications. In addition, we are receiving positive feedback from local and federal authorities in our planning and permitting efforts. We are confident that Escobal will develop into a world-class mine in the near future."

The company expects a regional drilling program to commence in 2011.

The Escobal Project is a recent discovery of high-grade silver, gold, lead and zinc mineralization in southeast Guatemala.

In June 2010 Tahoe acquired the Escobal project and completed the its Initial Public Offering, ending the second quarter with US$117 million cash and zero debt.

THO.TO is currently trading on the Toronto Stock Exchange at C$9.91, up C$0.46 or 4.87%. Over the past year, the stock traded in a range of C$7.60 - C$10.00.

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