Tahoe Resources (THO)

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Tahoe Resources Inc. Announces Approximately C$306 Million Bought Deal Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Tahoe Resources Inc. ("Tahoe" or the "Company") (TSX:THO) announced today that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. (the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 21,704,080 common shares (the "Common Shares") of the Company, at a price of C$14.10 per Common Share (the "Offering Price") for aggregate gross proceeds to the Company of C$306,027,528 (the "Offering").

The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 3,255,612 Common Shares at the Offering Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering to cover over-allotments, if any, and for market stabilization purposes. If this option is exercised in full, an additional amount of approximately C$45,904,129 will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be approximately C$351,931,657.

Goldcorp Inc. has indicated that they intend to subscribe for such number of Common Shares from the Offering that will maintain their current ownership position of 41.2%.

The Common Shares will be offered by way of a short form prospectus to be filed in all of the provinces of Canada, other than Québec.

The Company intends to use the net proceeds to fund the advancement and development of the Escobal Project, for acquisitions and for general corporate purposes.

The Offering is expected to close by December 24, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.

The Common Shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States, or for the account or benefit of any person in the United States, absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any Common Shares in the United States, or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.

About Tahoe Resources Inc.

Tahoe's strategy is to develop the Escobal Project into a profitable mining operation and to position itself as a leading silver producer with high quality, low cost assets in the Americas. Additional information can be found on Tahoe's website: www.tahoeresourcesinc.com

Forward Looking Statements

This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, which is also referred to as "forward-looking statements." Wherever possible, words such as "plans," "expects," or "does not expect," "budget," "scheduled," "estimates," "forecasts," "anticipate" or "does not anticipate," "believe," "intend," and similar expressions or statements that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved, have been used to identify forward-looking information. In particular, this news release describes future events and conditions related to Tahoe's plans for exploration and studies at the Escobal project. Forward-looking information is based on management's reasonable assumptions, estimates, expectations, analyses and opinions on the date of this news release. These are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, Tahoe's ability to carry on exploration and development activities, the timely receipt of required approvals, the price of silver and other metals, Tahoe's ability to operate in a safe, efficient and effective manner and Tahoe's ability to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Tahoe's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, many of which are beyond the Company's control. These factors include, but are not necessarily limited to, results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles, receipt of licenses to conduct mining activities, country risks, project cost overruns or unanticipated costs and expenses, the availability of funds, fluctuations in metal prices, currency fluctuations, and general market and industry conditions. There is no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on this information. Tahoe does not undertake to update any forward-looking information, except as, and to the extent required by, applicable securities laws. For more information about the risks and challenges of Tahoe's business, investors should review Tahoe's prospectus available at www.sedar.com.

For more information, please contact
Tahoe Resources Inc.
Ira M. Gostin
Business Director
775-448-5807 / Mobile: [phone]
775-562-8888 (FAX)
[e-mail]
www.tahoeresourcesinc.com


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