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May 27, 2009

Gold Resource Corp.
by Peter Zihlmann

GOLD RESOURCE CORP. (OTC BB:GORO) FOLLOW-UP N° 4 / MAY 27, 2009

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1,624,000 OUNCES GOLD (AUEQ) RESOURCE IN OAXACA, MEXICO

Business Summary

Gold Resource Corporation's objective is to create shareholder value by establishing production and generating superior financial performance through the development of gold and silver projects that feature low operating costs and produce high returns on capital. Management's commitment to shareholder value is reflected in the disciplined approach it has taken to the Company's capital structure, its focus on rapid project execution and its goal of meaningful dividend distributions.

GRC's initial exploration efforts have been focused on the El Aguila project, a property featuring high-grade gold and silver mineralization located in Oaxaca, Mexico. Recent discoveries indicate the project is well suited for GRC's performance targets.

An independent scoping study indicated cash production costs of approximately $100 per ounce of gold, and an annual return-on-capital of greater than 100%, indicating a capital payback of less than one year.

Management has established an aggressive schedule for the El Aguila project and targets production mid-2009.

Three additional project opportunities have been established in relatively close proximity to El Aguila: the Las Margaritas silver property, the El Rey gold property, and the Solaga silver property. Collectively, they provide the Company with a pipeline of potential projects that would expand and diversify the Company's precious metal production profile. The Company plans to have four high-grade properties feeding one mill.

Why Mexico?

Mexico is one of the world's leading venues for mineral potential and has a 500 year history of mining. The Fraser Institute's 2004/2005 Mining Survey ranked Mexico fifth out of 64 worldwide venues in current mineral potential. Additionally, Mexico ranked eighth in the same survey for composite policy and mineral potential.

El Aguila Project

Exploration: El Aguila cross section

The El Aguila Project, located 120 kilometers southeast of the capital city of Oaxaca, Mexico, is a significant, newly discovered high-grade gold and silver system. The property has yielded several exceptional gold and silver surface samples, including a 36 grams-per-ton (g/t) gold sample and a 3,100 g/t silver sample. *

The first drill hole initiated from the area of these surface samples resulted in the discovery of 16 meters of mineralization at 6.56 g/t of gold. Subsequent drilling identified a shallow, sub-horizontal mineralized zone (manto) with an inferred grade of 7.43 g/t of gold and 63 g/t of silver. The Company believes the discovery can be mined via an economical, shallow open pit.

The second round of drilling confirmed and expanded this initial mineralization and established the possibility of additional vein mineralization at El Aire, located 2 kilometers south east from El Aguila along the same important structural corridor, with the best intercept of 4 meters of 1.9 g/t of gold and 755 g/t of silver.

Management believes this limited, early work on one very small portion of the property is an encouraging indicator, as there are numerous additional areas along this important structural corridor where high-grade surface samples exist, such as Turkey Hill (up to 20.9 g/t of gold), Cerro Colorado (up to 18.9 g/t of gold) and Andesite Hill, where the highest-grade surface samples of both gold (35.2 g/t) & silver (3,170 g/t) occur.

The gold and silver mineralization at the El Aguila Project is of classic low-sulfidation, epithermal character. These types of deposits form some of the richest, most sought-after deposits in the world.

An exploration program designed to expand the known mineralization and test the many additional targets of high-grade surface samples over 4 kilometers is underway. Management's objective is to define sufficient mineralization to justify mine development at El Aguila.

Las Margaritas Project

Las Margaritas is a high-grade silver property in which GRC holds a 100% interest. It comprises the four northwest kilometers of the important N 70 W structural corridor, which is an extension of the El Aguila system. In addition, Las Margaritas occupies ground within an inferred caldera (collapsed volcanic center).

Historical records from a 1905 Mexican Government-authorized report titled The Mines of Mexico described the Las Margaritas mining district as, "...the place in which has been found some of the richest ores in Mexico, some of the ores having reached the value of 18,000 ounces to the ton, and ores are frequently found which assay 4,000 and 5,000 ounces to the ton."

Though mineralization at these levels is rare, the important point is that the Las Margaritas property shows indications of potentially significant silver mineralization. Surface samples taken by GRC have yielded silver mineralization as high as 1,200 g/t.

El Rey Project

El Rey is a high-grade gold property in which GRC has a 100% interest. While the site has been mined previously, very little information is known about the property. GRC has taken two selective grab samples from the dump material around the original shaft. The two samples assayed 80 and 85 g/t of gold, indicating that the samples are of potential vein material.

GRC intends to explore this property as a potential high-grade gold vein. If it were mined, material could be trucked to the prospective El Aguila mill for processing.

El Rey is in the early stages of exploration.

Solaga Project

Solaga is a high-grade silver property in which GRC holds a 100% interest. The 400 hectare property was previously mined in the 1980's. Initial high-grade selective sampling ran 15 kilo's (15,000 grams / tonne or 488 oz/ton or 1.5%) silver per tonne.

GRC intends to explore this property as a potential high-grade silver vein. If it were mined, material could be trucked to the prospective El Aguila mill for processing.

Solaga is in the early stages of exploration.

Recent News: Gold Resource Corporation Intercepts High-Grade Gold and Silver, Including 1m of 37.2 g/t Gold and 1.8m of 15.7 g/t Gold, Expanding the La Arista Deposit Vein System.

Gold Resource Corporation /quotes/comstock/11k!gororeports that its first drill hole from its new drilling campaign continues to intercept high-grade gold and silver mineralization including 1 meter of 37.2 g/t (1.2 ounce/tonne) gold and 1.8 meters of 15.71 g/t (0.51 ounce/tonne) gold. These new intercepts expand the La Arista deposit vein system. La Arista is one of GRC's three high-grade deposits discovered to date at its El Aguila project in the state of Oaxaca, Mexico.

GRC targets production at its El Aguila Project in mid-2009, subject to obtaining the remaining permits, regulatory approvals, equipment deliveries and construction schedules.

The La Arista deposit vein system appears to be a series of parallel, in echelon veins, including the La Arista vein, the Baja vein and additional parallel veins. This high-grade system now extends over 500 meters of strike length and 400 meters of vertical extent. This first drill hole of the new 5000 meter drill program, #109001, has expanded the La Arista vein system with several intercepts and continued high-grade gold values (37.2 g/t Au over 1 meter, 15.7 g/t Au over 1.8 meters and 12.19 g/t Au over 2 meters).

These intercepts are approximately 75 meters below the previously drilled high-grade intercepts in Hole #108042.

Recent Arista Deposit drill highlights in include:

Hole # 109001

• 1.0 meters of 37.20 g/t gold, 118 g/t silver, 1.05% copper, 1.29% lead, 1.56% zinc, (or a gold equivalent* value of 41.48 g/t (1.33 oz/tonne)) and

• 1.8 meters of 15.71g/t gold, 94.7 g/t silver, 0.50% copper, 1.49% lead, 1.64% zinc, (or a gold equivalent* value of 19.08 g/t (0.61 oz/tonne)) and

• 2.3 meters of 12.67 g/t gold, 493 g/t silver, 0.77% copper, 6.58% lead, 4.82% zinc, (or a gold equivalent* value of 25.67 g/t (0.83 oz/tonne)) and

• 75 meters of 1.49 g/t gold, 1080 g/t silver, 0.13% copper, 0.06% lead, 0.05% zinc, (or a gold equivalent* value of 16.96 g/t (0.55 oz/tonne))

William W. Reid, President of Gold Resource Corporation, stated, "The series of high-grade holes outside our initial mineralized material envelope appear to be indicating a potential significant expansion and one that might allow Gold Resource, in the near term, to double our previously stated mineralized material estimate of 1.6 million gold equivalent ounces. We are particularly pleased with the continued high-grade gold intercepts."

Fundamental Considerations

Gold Resource Corporation's president William W. Reid stated, "Gold Resource was created to maximize shareholder value by emerging in the elite class of low cost gold producers. With a financially focused approach to the business of mining we have come a long way in just two years as a public company. Our decisions are based on anticipated financial performance, not some arbitrary number of ounces in the ground.

That is why we were able to make our production decision back in April of 2007 with approximately 300,000 gold equivalent ounces delineated at that time because this high-grade, low cost project had an estimated capital repayment of only 6 months. Project construction is well underway as we continue to increase our estimate of in-place mineralized material.

The 1.6 million gold equivalent ounces surpasses our previously stated near term goal of 1.3 million. Based on our increased understanding of this exciting, high-grade geologic system, we now set as our new near term mineralized material target 3 million gold equivalent ounces".

1BMr. Reid stated, "Because drilling results have yielded higher values than originally anticipated and because the mill we are building is capable of approximately 1100 tonnes per day, we are pleased to set increased production targets up to 200,000 gold equivalent ounces of precious metals (gold and silver only) targeted by year three.

These targets are hypothetical at this point because they depend on the rate of mining from the underground mine which is currently being designed but this level of production is what we target".

Now that the production target has been increased to 177,000 ounces gold equivalent, the future for the shares price looks even brighter.

THE DIVIDEND PAY-OUT RATIO OF MAJOR GOLD-PRODUCERS AVERAGES 1%. ONCE GOLD RESOURCE STARTS PAYING OUT ITS TRAGETED DIVIDEND OF $ 1.39/SHARE, THE SHARE PRICE SHOULD RISE TO A MULTIPLE OF WHAT IT IS TODAY.

Technical Considerations

THE OUTPERFORMANCE OF GOLD-SHARES COMPARED TO THE PRICE OF GOLD IS EVIDENT - IN THE LONG-TERM.

THE TIMELESS PRECIOUS METAL FUND and THE SIERRA MADRE GOLD & SILVER VENTURE CAPITAL FUND are shareholders in the company and will benefit from any increase in the company's share price.

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Disclosure: The author has not been paid to write this article, nor has he received any other inducement to do so.

Disclaimer: The author's objective in writing this article is to invoke an interest on the part of potential investors in this stock to the point where they are encouraged to conduct their own further diligent research. Neither the information nor the opinions expressed should be construed as a solicitation to buy or sell this stock.

Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions in the stock or use their own brains.

In our opinion, the best approach is to buy a diversified portfolio of stocks like THE TIMELESS PRECIOUS METAL FUND or THE SIERRA MADRE GOLD & SILVER VENTURE FUND instead of shares of only a small number of companies.

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Peter Zihlmann
P. ZIHLMANN INVESTMENT ? MANAGEMENT AG
www.pzim.com
invest@pzim.ch
Tel. +41 44 268 51 10
Mobile +41 79 379 51 57

Your independent Swiss asset manager

THE TIMELESS PRECIOUS METAL FUND
THE SIERRA MADRE GOLD & SILVER VENTURE CAPITAL FUND

Copyright 2007-2009 © Peter Zihlmann

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