Hecla Reports 2012 Fourth Quarter and Year-End Results

  Hecla Reports 2012 Fourth Quarter and Year-End Results

 25% Increase in 2013 Silver Production Expected with Restart of Lucky Friday
                                     Mine

       Silver Reserves and Resources Increase for 7th Consecutive Year

                    For the Period Ended December 31, 2012

                        For Release: February 25, 2013

Business Wire

COEUR D'ALENE, Idaho -- February 25, 2013

Hecla Mining Company (NYSE:HL) today announced 2012 revenue of $321.1 million
and gross profit of $143.5 million with net income applicable to common
shareholders of $14.4 million, or $0.05 per basic share, and earnings after
adjustments applicable to common shareholders of $34.2 million, or $0.12 per
basic share, for the year.^1 Full year silver production in 2012 was 6.4
million ounces at a total cash cost of $2.70 per ounce, net of by-products.^2

FULL YEAR 2012 HIGHLIGHTS

  *Produced 6.4 million ounces of silver.
  *Total cash cost of $2.70 per ounce, net of by-products.^2
  *Operating cash flow of $69.0 million.
  *Cash and cash equivalents of $191.0 million at December31, 2012.
  *Year-end silver reserve levels highest in Company history, increasing for
    the 7th consecutive year, with silver reserves up 2% to 150 million
    ounces. In addition, mineralized material increased by 7% to 22.4 million
    tons averaging 5.7 ounces of silver per ton and other resources increased
    by 37% to 23.4 million tons averaging 7.4 ounces of silver per ton.
  *Gold mineralized material increased fourfold to 1.7 million tons averaging
    0.07 ounces of gold per ton and other resources increased 75% to 13.5
    million tons averaging 0.05 ounces of gold per ton.
  *Exploration programs in 2012 succeeded in identifying new and highly
    prospective targets in addition to increasing resources at each of Hecla's
    pre-development and exploration projects.

FOURTH QUARTER 2012 HIGHLIGHTS

  *Net income applicable to common shareholders of $0.6 million, or $0.00 per
    basic share, and earnings after adjustments applicable to common
    shareholders of $10.2 million, or $0.04 per basic share.^1
  *Silver production of 2.1 million ounces at a total cash cost of $3.45 per
    ounce, net of by-products.^2
  *Completed cleaning and upgrading of Lucky Friday Silver Shaft. Production
    has resumed in Q1 2013.
  *Declared quarterly common stock dividend of $0.0125 per share of common
    stock, which includes a regular quarterly common stock dividend of $0.0025
    per share and a special dividend of $0.01 per share.

^(1) Earnings after adjustments applicable to common shareholders represents a
non-U.S. Generally Accepted Accounting Principles (GAAP) measurement. A
reconciliation of net income applicable to common shareholders (GAAP) to
earnings after adjustments can be found at the end of the release.

^(2) Total cash cost per ounce of silver represents a non-GAAP measurement. A
reconciliation of total cash cost to cost of sales and other direct production
costs and depreciation, depletion and amortization (GAAP) can be found at the
end of this release.

2013 GUIDANCE

  *Expected full year 2013 silver production of approximately 8 to 9 million
    ounces.
  *Consolidated company-wide cash costs (based on current metal prices) are
    expected to be approximately $5.00 per ounce of silver, net of
    by-products, consisting of approximately $3.25 per ounce at the Greens
    Creek mine and $11.00 per ounce at the Lucky Friday mine.
  *Lucky Friday's costs are expected to be higher in the first half of the
    year as it proceeds through a restart phase. Per ounce cash costs are
    expected to be approximately $17.00 in the first half of the year, and are
    expected to decline to approximately $9.50 per ounce during the second
    half.
  *Expected Company-wide capital expenditures of $152.0 million.
  *Expected $51.5 million for 2013 exploration and pre-development expenses.

"This past year, with the Lucky Friday down, Greens Creek generated strong
silver production and cash flow to allow record capital investments that are
expected to generate not only higher silver production in 2013, but expected
organic growth well into the future. For the full year, the Company produced
6.4 million ounces of silver at a cash cost of $2.70 per ounce, still among
the lowest costs and highest margins of the major primary silver producers,"
said Phillips S. Baker, Jr., President and Chief Executive Officer. "In 2013,
we are expecting silver production levels to increase more than 25% to
approximately 8 to 9 million ounces."

"With MSHA modifying certain orders allowing use of the shaft to the deepest
loading pocket, and allowing us to access some of the stopes, we have
initiated production of ore and shipped our first concentrates earlier in
February. Shaft rehabilitation work will be ongoing and we expect to be in
full production in the third quarter. We have done other upgrades and work
that we believe make the Lucky Friday a better, more reliable, longer living
mine," Mr. Baker added.

"Lastly, our exploration program in 2012 continued to achieve success and grew
silver reserves, mineralized material, and other resources. In addition,
primarily as a result of our efforts in Mexico, gold mineralized material
increased nearly fourfold and other gold resources increased 75%. Meanwhile,
our pre-development projects continue to advance toward a planned company-wide
goal to produce 15 million ounces of silver production in 2017."

FINANCIAL OVERVIEW

Hecla reported 2012 revenue of $321.1 million and gross profit of $143.5
million. These results were achieved by Greens Creek alone while the Lucky
Friday mine was on standby for rehabilitation work on the Silver Shaft and
other upgrades. Full year operating cash flow was $69.0 million, which was
impacted by the payment of $25.0 million made in connection with our Coeur
d'Alene Basin environmental liability settlement that was reached in 2011.

                Fourth Quarter Ended             Twelve Months Ended
HIGHLIGHTS      December     December 31,     December      December
                   31, 2012        2011                 31, 2012         31, 2011
FINANCIAL                                                
DATA (000s)
Sales              $ 81,100     $ 102,867            $ 321,143     $ 477,634
Gross profit       $ 34,037        $ 49,826             $ 143,516        $ 264,995
Income
applicable         $ 605           $ 18,431             $ 14,402         $ 150,612
to common
shareholders
Basic income
per common         $ —             $ 0.07               $ 0.05           $ 0.54
share
Diluted
income per         $ —             $ 0.06               $ 0.05           $ 0.51
common share
Net income         $ 743           $ 18,569             $ 14,954         $ 151,164
Cash
provided
(used) by          $ 2,528         $ (118,049 )         $ 69,016         $ 69,891
operating
activities
                                                                           

Hecla completed a record level of capital investment at its existing
operations of $36.6million and $118.2 million for the fourth quarter and
twelve-month period ended December 31, 2012, respectively. These included
$29.8 million in 2012 for the Silver Shaft rehabilitation and $26.2 million
for other work at the Lucky Friday, and record capital investment of $62.2
million at Greens Creek. At Greens Creek, investment was focused on
underground mine development and definition drilling, mining fleet
replacement, tailings dam expansion, and the construction of expanded and
upgraded camp facilities.

Pre-development expenditures totaled $5.7 million and $17.9 million for the
fourth quarter and the year ended December 31, 2012, respectively.
Pre-development expenditures in the fourth quarter were primarily for
infrastructure and engineering and permitting studies at the San Sebastian
project in Mexico, the San Juan Silver property in Creede, Colorado, and the
Star Complex in the Silver Valley, Idaho.

Exploration expenditures (including corporate development) for the fourth
quarter and twelve-month periods were $7.3 million and $31.8 million,
respectively.

Metals Prices

Realized silver prices in the fourth quarter of 2012 were $29.20 per ounce, 8%
less than that in the same period in 2011, while for the twelve-month period
realized prices were 9% lower than the same period in 2011. In the fourth
quarter of 2012, there were negative price adjustments of $5.7 million,
compared to positive price adjustments of $0.07 million in the fourth quarter
of 2011.

Increases in prices in the time period between the shipment of concentrate and
final settlement resulted in positive adjustments to provisional settlements
of $3.8 million in 2012, compared to net negative price adjustments to
provisional settlements of $2.6 million in 2011.

                       Fourth Quarter Ended        Twelve Months Ended
                     December    December     December  December
                             31, 2012       31, 2011         31, 2012   31, 2011
AVERAGE METAL PRICES                                      
Silver       London PM
-            Fix             $ 32.64     $ 31.82          $ 31.15   $  35.11
             ($/oz)
             Realized
             price per       $ 29.20        $ 31.61          $ 32.11    $  35.30
             ounce
             London PM
Gold -       Fix             $ 1,719        $ 1,685          $ 1,669    $  1,569
             ($/oz)
             Realized
             price per       $ 1,647        $ 1,640          $ 1,687    $  1,592
             ounce
Lead -       LME Cash        $ 1.00         $ 0.90           $ 0.94     $  1.09
             ($/pound)
             Realized
             price per       $ 1.00         $ 0.82           $ 0.96     $  1.05
             pound
Zinc -       LME Cash        $ 0.88         $ 0.86           $ 0.88     $  1.00
             ($/pound)
             Realized
             price per       $ 0.91         $ 0.87           $ 0.90     $  1.00
             pound
                                                                           

Base Metals Forward Sales Contracts

The following table summarizes the quantities of base metals committed under
financially settled forward sales contracts at December31, 2012:

                         Pounds Under Contract     Average Price
                            (in thousands)                per Pound
                            Zinc       Lead            Zinc       Lead
Contracts on                                                     
provisional sales
2013 settlements            14,991        6,945           $ 0.95        $ 1.00
                                                                        
Contracts on
forecasted sales
2013 settlements            35,935        32,794          $ 0.96        $ 1.11
2014 settlements            30,203        33,069          $ 0.98        $ 1.03
2015 settlements            3,307         23,534          $ 1.01        $ 1.06
                                                                          

OPERATIONS OVERVIEW

Production was down year-over-year due to halted production at the Lucky
Friday mine during 2012, as well as ground support rehabilitation work at
Greens Creek in the first half of 2012. Fourth quarter and full year silver
cash cost, net of by-product credits, was $3.45 per ounce and $2.70 per ounce,
respectively, compared to $2.28 per ounce and $1.15 per ounce, respectively,
in the same period in 2011.

                      Fourth Quarter Ended            Twelve Months Ended
                            December      December       December     December
                            31, 2012         31, 2011           31, 2012       31, 2011
PRODUCTION SUMMARY
Silver       Ounces         2,081,328     2,491,224          6,394,235    9,483,676
-            produced
             Payable
             ounces         1,538,162        1,923,365          5,430,252      8,119,634
             sold
Gold -       Ounces         15,563           13,745             55,496         56,818
             produced
             Payable
             ounces         10,828           10,050             43,133         43,942
             sold
Lead -       Tons           5,848            8,194              21,074         39,150
             produced
             Payable
             tons           3,945            7,046              15,733         33,050
             sold
Zinc -       Tons           15,584           17,384             64,249         73,355
             produced
             Payable
             tons           12,583           15,914             50,895         53,901
             sold
Total cash cost per
ounce of silver             $   3.45         $   2.28           $   2.70       $   1.15
produced (1)
                                                                                   

^(1) Total cash cost per ounce of silver represents a non-U.S. Generally
Accepted Accounting Principles (GAAP) measurement. A reconciliation of total
cash costs to cost of sales and other direct production costs and
depreciation, depletion and amortization (GAAP) can be found at the end of
this release.

Greens Creek Mine - Alaska

Silver production at Greens Creek in 2012 was 6.4 million ounces for the year
and 2.1million ounces in the fourth quarter. The mine demonstrated steady
production increases during the course of 2012, producing 2.7 million ounces
in the first half of the year, increasing by 37% to 3.7 million ounces in the
second half. The decrease in silver production year-over-year is attributable
primarily to the ground support rehabilitation work performed in the first
half of 2012.

Total cash cost per ounce of silver produced at Greens Creek was $3.45 and
$2.70, net of by-products, for the fourth quarter and full year, respectively,
compared to $0.42 and negative $1.29, net of by-products, for the same
respective periods in 2011. The increase in total cash cost per ounce for the
full year was primarily due to higher production costs of $2.03 per ounce, due
primarily to increased use of contract miners, and lower by-product credits of
$1.84 per ounce. The decrease in by-product credits is due mainly to lower
prices for by-product metals.

Lucky Friday Mine - Idaho

The Lucky Friday mine resumed production in the first quarter of 2013,
following a one-year shutdown to rehabilitate and enhance the 6100 foot Silver
Shaft and rehabilitate ramps and drifts. All mine employees have now been
recalled to work and have received extensive safety training. Mine production,
which resumed in February, is expected to ramp up to normal levels by mid-year
as we perform additional rehabilitation and get necessary clearances from
MSHA, with full year production of more than 2 million ounces of silver
expected in 2013.

The Lucky Friday #4 Shaft project construction has also resumed, with shaft
sinking set-up activities, primary mechanical and electrical systems, and
critical lateral development largely complete. Construction work is expected
to focus on shaft sinking and station development activities until project
completion, which is expected in 2016. Total project capital is expected to be
approximately $200 million, with approximately $92 million spent to date.

In 2012, Hecla spent approximately $29.8 million on rehabilitation work and
$26.2 million for other capital projects at the Lucky Friday. The Company
incurred non-capitalized expenses of $25.3 million, which includes holding
costs and #4 Shaft care and maintenance.

RESERVES & RESOURCES

Hecla replaced mined silver production and added additional mineralized
material and other resources. Total proven and probable reserves increased 2%
to 150 million ounces of silver, mineralized material increased 7% to 22.4
million tons averaging 5.7 ounces per ton and other resources increased 37% to
23.4 million tons averaging 7.4 ounces per ton. In addition, gold mineralized
material increased fourfold to 1.7 million tons averaging 0.07 ounces of gold
per ton and other gold resources increased 75% to 13.5 million tons averaging
0.05 ounces of gold per ton.

The ore reserves in Table A are based on $26.50 per ounce of silver, $1,400.00
per ounce of gold, and $0.85 per pound of lead and zinc.

EXPLORATION AND PRE-DEVELOPMENT UPDATE

Exploration expenditures were $31.8 million in 2012, including $7.38 million
for San Juan Silver, $6.35 million for Lucky Friday/Silver Valley, $5.74
million for Greens Creek, $5.48 million for San Sebastian and $650,000 for
Monte Cristo, Nevada.

Pre-development expenditures were $17.9 million including $11.5 million at the
San Juan Silver project, $4.77 million at the Star Complex and $1.65 million
for the San Sebastian property.

Greens Creek - Alaska

Exploration

Greens Creek exploration, while not replacing reserves this year, made
significant progress in growing the potential of the 200 South and NWW zones.
200 South had some of the widest and highest grade intercepts in recent
history at the mine. See drill assay highlights in tables at the end of the
release. 2013 is expected to be a year of infill drilling in order to develop
a mine plan on 200 South and Southwest Bench. Assays were received on surface
drilling at Killer Creek that define a 150-foot wide zone of stockwork veins
which comprises intervals with silver up to 1.5 ounces per ton and copper up
to 5.4%. This, combined with discovery of zinc mineralization 1,500 feet away
at the mine contact, might be the turned over roots to a new mineralized zone.
Surface drilling at Killer Creek during 2013 is expected to consist of 25,000
feet and is expected to provide additional intercepts in this new mineralized
zone.

San Sebastian - Mexico

Exploration

Re-examination of district potential near the past producing Francine Vein at
San Sebastian led to the discovery of the Middle Vein during the year. The
Middle Vein has both precious metal rich and base metal rich sulfide
mineralized zones. The higher-grade gold-silver mineralization forms other
resources of 8.8 million ounces of silver and 45,011 ounces of gold that has
been outlined through systematic drilling. The base metal rich sulfide
mineralization appears similar in character to the Hugh Zone. Mineralization
has been traced for approximately 3,000 feet along strike and to a depth of
1,000 feet and the deposit appears open for extension along strike and to
depth.

With the new resource for the Middle Vein, and resource additions on the
Andrea Vein, the mineralized material for the San Sebastian property has
increased to 4.4 million ounces silver, 73,900 ounces gold, 14,640 tons lead
and 19,080 tons zinc. Other resources have increased to 23.9 million ounces
silver, 159,700 ounces gold, 25,880 tons lead and 36,040 tons zinc. Potential
extensions to both the Middle Vein and Hugh Zone structures to the northwest
and southeast remain strong  and the Middle Vein is open to depth. The Andrea
Vein remains open along strike and at depth. Exploration in 2013 is planned to
evaluate the North Vein complex in the vicinity of the Middle Vein.

Pre-development

Further scoping studies are in progress to determine the production viability,
rate and sequencing of mining the three resource areas and are expected to be
completed in the third quarter of 2013. Concurrent with the completion of the
scoping studies, a ramp is being engineered for initial construction, expected
this year, to allow access to both the Hugh Zone and Middle Vein.
Metallurgical, hydrology and geotechnical studies are also all advancing.

San Juan Silver - Colorado

Exploration

While underground drilling in the Equity Vein system at the San Juan Silver
property has outlined multiple zones of high-grade, gold and silver-bearing
veins, this work has yet to define sufficient tons to be part of a potential
operating plan. However, underground drilling through the second quarter of
2013 will follow-up on high-grade surface drill intersections where the Equity
and Amethyst mineralization trends converge. While there continues to be
potential in the Equity Amethyst system, development of the Bulldog
infrastructure will be prioritized in 2013.

Pre-development

Initial scoping studies and economic models confirm continuing advancement of
the Bulldog decline. The 2800-foot long decline has now advanced over 800
feet. The expected fourth quarter 2013 completion of the decline will access
old workings and the ore body. This access is expected to allow confirmation
of the resource and advancement of the ongoing scoping studies.

Silver Valley - Idaho

Exploration & Pre-Development

Rehabilitation of the Star 2000 level was completed in 2012 providing access
to exploration platforms. Drilling from these platforms has continued to
discover more mineralization at similar grades as found in the resource.
Drilling to follow up on higher-grade surface holes located to the east is
expected to continue until April when the Star data is expected to be
integrated into the Lucky Friday optimization study. After April, no further
underground exploration or pre-development is anticipated on the Star in 2013.
Some surface drilling in the summer is proposed along the nearby Noonday and
You Like trends.

Monte Cristo - Nevada

Exploration

The 6,100 acre Monte Cristo property in Nevada, located along the Walker Lane
structural belt within the Gilbert mining district, was acquired in July and
hosts epithermal precious metal mineralization. The initial near-surface
resource is estimated to be 913,000 tons containing approximately 131,300
ounces of other gold resources at 0.14ounces per ton gold. The 2013
exploration program is focused on areas outside the identified resource.

Junior Exploration Investment Program

As part of the Company's junior exploration investment program initiated in
2012, Hecla has recently made equity investments in Dolly Varden Silver
Corporation (DVSC), Canamex Resource Corporation and Brixton Metals
Corporation (Brixton). DVSC has a 36.6 square mile land package in
northwestern B.C. and has indicated plans for a substantial drilling program
in 2013. Canamex has a 3.28 square mile land package in central Nevada (Nye
County) and has indicated plans to continue to follow up on high-grade drill
intersections at its Bruner property. Brixton is currently focused on the
exploration of the Thorn Project located in the Atlin Mining District in
northern British Columbia.

2013 GUIDANCE

Hecla projects company-wide silver production of approximately 8 to 9 million
ounces with cash costs, based on current metals prices, of approximately $5.00
per ounce of silver, consisting of approximately $3.25 per ounce at Greens
Creek and approximately $11.00 per ounce at Lucky Friday. Lucky Friday's costs
are expected to be higher in the first half of the year as it proceeds through
a restart phase, decreasing from approximately $17.00 per ounce to
approximately $9.50 per ounce during the second half of the year.

Capital expenditures are expected to be approximately $152.0 million divided
approximately equally between Greens Creek and Lucky Friday.

Exploration expenditures for 2013 are anticipated to be $27.1 million, with
$6.6 million for Greens Creek; $6.31 million for Lucky Friday/Silver Valley;
$6.19 million for San Juan Silver, $3.62 million for San Sebastian and $1.43
million for Monte Cristo. Pre-development expenditures for 2013 are
anticipated to be $24.4 million with $18.0 million at the San Juan Silver
project and $6.4 million for the San Sebastian property.

CONFERENCE CALL AND WEBCAST

A conference call and webcast will be held today, February 25, at 10:00 a.m.
Eastern Time to discuss these results. You may join the conference call by
dialing toll-free 1-866-202-4683 or 1-617-213-8846 internationally. The
participant passcode is HECLA. Hecla's live and archived webcast can be
accessed at www.hecla-mining.com under Investors or via Thomson StreetEvents
Network.

ABOUT HECLA

Established in 1891, Hecla Mining Company is one of the largest and
lowest-cost primary silver producers in the U.S. The company has two operating
mines and exploration properties in four world-class silver mining districts
in the U.S. and Mexico.

Cautionary Statements

Statements made which are not historical facts, such as anticipated payments,
litigation outcome, production, sales of assets, exploration results and
plans, prospects and opportunities including reserves, resources, and
mineralization, costs, and prices or sales performance are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Words such as “may,” “will,” “should,” “expects,” “intends,”
“projects,” “believes,” “estimates,” “targets,” “anticipates” and similar
expressions are used to identify these forward-looking statements.
Forward-looking statements involve a number of risks and uncertainties that
could cause actual results to differ materially from those projected,
anticipated, expected or implied. These risks and uncertainties include, but
are not limited to, metals price volatility, volatility of metals production
and costs, environmental and litigation risks, operating risks, project
development risks, political and regulatory risks, labor issues, ability to
raise financing and exploration risks and results. Refer to the company's Form
10-K and 10-Q reports for a more detailed discussion of factors that may
impact expected future results. The company undertakes no obligation and has
no intention of updating forward-looking statements other than as may be
required by law.

Cautionary Statements to Investors on Reserves and Resources

The United States Securities and Exchange Commission permits mining companies,
in their filings with the SEC, to disclose only those mineral deposits that a
company can economically and legally extract or produce. We use certain terms
on this release, such as “resource,” “other resources,” and “mineralized
materials” that the SEC guidelines strictly prohibit us from including in our
filings with the SEC. U.S. investors are urged to consider closely the
disclosure in our Form 10-K and Form 10-Q. You can review and obtain copies of
these filings from the SEC's website at www.sec.gov.

HECLA MINING COMPANY
Consolidated Statements of Income
(dollars and shares in thousands, except per share amounts - unaudited)

                      Fourth Quarter Ended         Twelve Months Ended
                         December     December        December      December
                         31,            31,             31,             31,
                         2012           2011            2012            2011
Sales of products        $ 81,100      $ 102,867      $ 321,143      $ 477,634 
Cost of sales and
other direct             34,682         40,540          134,105         165,573
production costs
Depreciation,
depletion and            12,381        12,501         43,522         47,066    
amortization
                         47,063        53,041         177,627        212,639   
Gross profit             34,037        49,826         143,516        264,995   
                                                                        
Other operating
expenses:
General and              5,530          3,732           21,253          18,540
administrative
Exploration              7,343          7,947           31,822          26,959
Pre-development          5,670          2,694           17,916          4,446
Other operating          1,138          1,959           4,423           7,658
expense
Loss on
disposition of
property, plants,        275            —               275             —
equipment and
mineral interests
Lucky Friday
suspension-related       6,564          —               25,309          —
costs
Provision for
closed operations        1,332         1,864          4,652          9,747     
and reclamation
                         27,852        18,196         105,650        67,350    
                                                                                  
Income from              6,185         31,630         37,866         197,645   
operations
                                                                                  
Other income
(expense):
Gain (loss) on
derivative               (2,344   )     (919      )     (10,457   )     37,988
contracts
Gain on sale of          —              —               —               611
investments
Loss on impairment       (1,171   )     (140      )     (1,171    )     (140      )
of investments
Interest and other       (206     )     4               22              (87       )
income (loss)
Interest expense         (864     )     (491      )     (2,427    )     (2,875    )
                         (4,585   )     (1,546    )     (14,033   )     35,497    
Income before            1,600          30,084          23,833          233,142
income taxes
Income tax               (857     )     (11,515   )     (8,879    )     (81,978   )
provision
                                                                                  
Net income               743            18,569          14,954          151,164
Preferred stock          (138     )     (138      )     (552      )     (552      )
dividends
                                                                                  
Income applicable
to common                $ 605         $ 18,431       $ 14,402       $ 150,612 
shareholders
                                                                                  
Basic income
(loss) per common
share after              $ —           $ 0.07         $ 0.05         $ 0.54    
preferred
dividends
                                                                                  
Diluted income per
common share after       $ —           $ 0.06         $ 0.05         $ 0.51    
preferred
dividends
                                                                                  
Weighted average
number of common         285,402       280,819        285,375        280,956   
shares outstanding
basic
                                                                                  
Weighted average
number of common         299,309       294,133        297,566        297,033   
shares outstanding
diluted
                                                                                  

HECLA MINING COMPANY
Consolidated Balance Sheets
(dollars and share in thousands - unaudited)

                                   December 31, 2012   December 31, 2011
ASSETS                                                 
Current assets:                                        
Cash and cash equivalents              $   190,984           $   266,463
Accounts receivable                    25,021                20,309
Inventories                            28,637                26,195
Current deferred income taxes          29,398                27,810
Other current assets                   8,858                21,967         
Total current assets                   282,898               362,744
Non-current investments                9,614                 3,923
Non-current restricted cash and        871                   866
investments
Properties, plants, equipment          996,659               923,212
and mineral interests, net
Non-current deferred income            86,365                88,028
taxes
Other non-current assets and           1,883                17,317         
deferred charges
Total assets                           $   1,378,290        $   1,396,090  
                                                      
LIABILITIES                                            
Current liabilities:
Accounts payable and accrued           $   43,162            $   37,831
liabilities
Accrued payroll and related            10,760                12,878
benefits
Accrued taxes                          12,321                10,354
Current portion of capital             5,564                 4,005
leases
Current portion of accrued             19,845                42,248
reclamation and closure costs
Other current liabilities              3,335                —              
Total current liabilities              94,987                107,316
Capital leases                         11,935                6,265
Accrued reclamation and closure        93,370                111,563
costs
Other non-current liabilities          40,047               30,833         
Total liabilities                      240,339              255,977        
                                                      
SHAREHOLDERS’ EQUITY                                   
Preferred stock                        39                    39
Common stock                           71,499                71,420
Capital surplus                        1,218,283             1,215,229
Accumulated deficit                    (123,288       )      (120,557       )
Accumulated other comprehensive        (23,918        )      (23,498        )
loss
Treasury stock                         (4,664         )      (2,520         )
Total shareholders’ equity             1,137,951            1,140,113      
Total liabilities and                  $   1,378,290        $   1,396,090  
shareholders’ equity
Common shares outstanding              285,210              285,290        
                                                                            

HECLA MINING COMPANY
Consolidated Statements of Cash Flows
(dollars in thousands - unaudited)

                                              December 31,   December 31,
                                             2012           2011
OPERATING ACTIVITIES                                        
Net income                                       $  14,954        $  151,164
Non-cash elements included in net income:
Depreciation, depletion and amortization         50,113           47,348
Gain on sale of investments                      —                (611       )
Loss on impairment of investments                1,171            140
Loss on disposition of properties, plants,       275              —
equipment and mineral interests
Provision for reclamation and closure            1,106            7,004
costs
Deferred income taxes                            546              76,944
Stock compensation                               3,101            2,073
Amortization of loan origination fees            460              598
Amortization of intangible asset                 —                —
(Gain) loss on derivative contracts              29,627           (53,545    )
Other non-cash charges, net                      1,765            1,209
Change in assets and liabilities:
Accounts receivable                              (4,713     )     16,531
Inventories                                      (2,442     )     (7,064     )
Other current and non-current assets             610              2,164
Accounts payable and accrued liabilities         4,927            1,466
Accrued payroll and related benefits             (2,118     )     2,090
Accrued taxes                                    1,967            (5,688     )
Accrued reclamation and closure costs and        (32,333    )     (171,932   )
other non-current liabilities
Other non-current liabilities                    —               —          
Cash provided by operating activities            69,016          69,891     
                                                           
INVESTING ACTIVITIES                                        
Additions to properties, plants, equipment       (113,096   )     (87,546    )
and mineral interests
Proceeds from sale of investments                —                1,366
Proceeds from disposition of properties,         886              113
plants and equipment
Redemptions of restricted cash and               —                9,448
investment balances
Increases in restricted cash and                 (5         )     (3,200     )
investment balances
Purchases of investments                         (5,823     )     —          
Net cash used in investing activities            (118,038   )     (79,819    )
                                                           
FINANCING ACTIVITIES                                        
Proceeds from exercise of stock options          —                5,786
and warrants
Acquisition of treasury shares                   (2,144     )     (469       )
Dividend paid to common shareholders             (17,121    )     (5,592     )
Dividends paid to preferred shareholders         (552       )     (3,822     )
Loan origination fees paid                       (750       )     (180       )
Repayments of capital leases                     (5,890     )     (2,938     )
Net cash used in financing activities            (26,457    )     (7,215     )
Net decrease in cash and cash equivalents        (75,479    )     (17,143    )
Cash and cash equivalents at beginning of        266,463         283,606    
year
Cash and cash equivalents at end of year         $  190,984      $  266,463 
                                                                             

HECLA MINING COMPANY
Production Data

                   Fourth Quarter Ended         Twelve Months Ended
                      December       December    December    December
                      31,              31,           31,           31,
                  2012           2011        2012        2011
GREENS CREEK                                           
UNIT
Tons of ore           215,819          191,858       789,569       772,069
milled
Mining cost           $  69.28         $  50.85      $  64.05      $  49.31
per ton
Milling cost          $  30.26         $  29.41      $  29.35      $  30.69
per ton
Ore grade
milled -              13.14            13.50         11.13         11.49
Silver
(oz./ton)
Ore grade
milled -              0.11             0.10          0.12          0.12
Gold
(oz./ton)
Ore grade
milled -              3.48             3.40          3.49          3.52
Lead (%)
Ore grade
milled -              8.31             9.50          9.35          9.81
Zinc (%)
Silver
produced              2,081,328        1,990,610     6,394,235     6,498,337
(oz.)
Gold
produced              15,563           13,745        55,496        56,818
(oz.)
Lead
produced              5,848            5,048         21,074        21,055
(tons)
Zinc
produced              15,584           16,137        64,249        66,050
(tons)
Total cash
cost per
ounce of              $  3.45          $  0.42       $  2.70       $  (1.29  )
silver
produced (1)
Capital
additions          $  17,936      $  12,551   $  62,184   $  41,657 
(in
thousands)
LUCKY FRIDAY                                           
UNIT
Tons of ore           —                49,638        —             298,672
processed
Mining cost           $  —             $  67.62      $  —          $  60.76
per ton
Milling cost          $  —             $  20.79      $  —          $  16.96
per ton
Ore grade
milled -              —                10.80         —             10.69
Silver
(oz./ton)
Ore grade
milled -              —                6.80          —             6.51
Lead (%)
Ore grade
milled -              —                2.90          —             2.82
Zinc (%)
Silver
produced              —                500,614       —             2,985,339
(oz.)
Lead
produced              —                3,146         —             18,095
(tons)
Zinc
produced              —                1,247         —             7,305
(tons)
Total cash
cost per
ounce of              $  —             $  9.68       $  —          $  6.47
silver
produced (1)
Capital
additions             $  18,713        $  15,428     $  55,998     $  60,454
(in
thousands)
                                                                             
(1) Total cash costs per ounce of silver represents a non-U.S. Generally
Accepted Accounting Principles (GAAP) measurement. A reconciliation of total
cash costs to cost of sales and other direct production costs and
depreciation, depletion and amortization (GAAP) can be found in the cash costs
per ounce reconciliation section of this news release. Gold, lead and zinc
produced have been treated as by-product credits in calculating silver costs
per ounce.


HECLA MINING COMPANY
Reconciliation of Cash Costs per Ounce to Generally Accepted Accounting Principles
(GAAP)(1)
(dollars and ounces in thousands, except per ounce - unaudited)

                      Three Months Ended          Twelve Months Ended
                         December 31,                 December 31,
                     2012         2011         2012          2011
RECONCILIATION TO
GAAP, ALL                                                  
OPERATIONS
Total cash costs         7,175        $ 5,677        $ 17,262      $ 10,934
Divided by ounces        2,081         2,490         6,394          9,483     
produced
Total cash cost          $ 3.45        $ 2.28        $ 2.70         $ 1.15    
per ounce produced
Reconciliation to
GAAP:
Total cash costs         $ 7,175        $ 5,677        $ 17,262        $ 10,934
Depreciation,
depletion and            12,381         12,501         43,522          47,066
amortization
Treatment costs          (21,145  )     (22,758  )     (73,355   )     (99,019   )
By-product credits       51,433         53,530         190,916         254,372
Change in product        (3,343   )     836            (1,381    )     (4,805    )
inventory
Suspension-related       —              2,495          —               4,135
costs
Reclamation and          562           760           663            (44       )
other costs
                                                                                 
Cost of sales and
other direct
production costs
and depreciation,        $ 47,063      $ 53,041      $ 177,627      $ 212,639 
depletion and
amortization
(GAAP)
                                                            
GREENS CREEK UNIT                                          
Total cash costs         $ 7,175        $ 829          $ 17,262        $ (8,387  )
Divided by ounces        2,081         1,990         6,394          6,498     
produced
Total cash cost          $ 3.45        $ 0.42        $ 2.70         $ (1.29   )
per ounce produced
Reconciliation to
GAAP:
Total cash costs         $ 7,175        $ 829          $ 17,262        $ (8,387  )
Depreciation,
depletion and            12,381         11,032         43,522          41,013
amortization
Treatment costs          (21,145  )     (19,612  )     (73,355   )     (79,134   )
By-product credits       51,433         46,375         190,916         205,961
Change in product        (3,343   )     720            (1,381    )     (4,966    )
inventory
Reclamation and          562           745           663            (81       )
other costs
                                                                                 
Cost of sales and
other direct
production costs
and depreciation,        $ 47,063      $ 40,089      $ 177,627      $ 154,406 
depletion and
amortization
(GAAP)
                     
LUCKY FRIDAY UNIT     
Total cash costs         $ —            $ 4,848        $ —             $ 19,321
Divided by silver        —             500           —              2,985     
ounces produced
Total cash cost          $ —           $ 9.68        $ —            $ 6.47    
per ounce produced
Reconciliation to
GAAP:
Total cash costs         $ —            $ 4,848        $ —             $ 19,321
Depreciation,
depletion and            —              1,469          —               6,053
amortization
Treatment costs          —              (3,146   )     $ —             (19,885   )
By-product credits       —              7,155          —               48,411
Change in product        —              116            $ —             161
inventory
Suspension-related       —              2,495          —               4,135
costs (2)
Reclamation and          —             15            —              37        
other costs
                                                                                 
Cost of sales and
other direct
production costs
and depreciation,        $ —           $ 12,952      $ —            $ 58,233  
depletion and
amortization
(GAAP)

(1) Cash costs per ounce of silver represent non-U.S. Generally Accepted
Accounting Principles (GAAP) measurements that the Company believes provide
management and investors an indication of net cash flow. Management also uses this
measurement for the comparative monitoring of performance of mining operations
period-to-period from a cash flow perspective. "Total cash cost per ounce" is a
measure developed by mining companies in an effort to provide a comparable
standard; however, there can be no assurance that our reporting of this non-GAAP
measure is similar to that reported by other mining companies. Cost of sales and
other direct production costs and depreciation, depletion and amortization, was
the most comparable financial measures calculated in accordance with GAAP to total
cash costs.

(2) Various accidents and other events resulted in temporary suspensions of
production at the Lucky Friday unit during 2011 and throughout 2012.
Care-and-maintenance, mine rehabilitation, investigation, and other costs incurred
during the suspension periods not related to production have been excluded from
total cash costs and the calculation of total cash cost per ounce produced.


HECLA MINING COMPANY
Reconciliation of Net Income Applicable to Common Shareholders (GAAP) to
Earnings After Adjustments(1)
(dollars and ounces in thousands, except per share amounts - unaudited)

                       Three Months Ended        Twelve Months Ended
                          December 31,              December 31,
                          2012        2011         2012        2011
Net income
applicable to             $ 605       $ 18,431       $ 14,402    $ 150,612
common shareholders
(GAAP)
Adjusting items:
(Gains)/losses on
derivatives               2,344        919            10,457       (37,988   )
contracts
Environmental             382          336            (1,054   )   4,990
accruals
Provisional price         5,667        (728     )     (3,820   )   2,611
(gains)/losses
Lucky Friday
suspension-related        6,564        —              25,309       —
costs
Income tax effect
of above                  (5,384   )   (184     )     (11,121  )   10,635    
adjustments
                                                                             
Earnings after
adjustments               $ 10,178    $ 18,774      $ 34,173    $ 130,860 
applicable to
common shareholders
Weighted average          285,402      280,819        285,375      280,956
shares - basic
Weighted average          299,309      294,133        297,566      297,033
shares - diluted
Basic earnings
after adjustments         $ 0.04       $ 0.07         $ 0.12       $ 0.47
per common share
Diluted earnings
after adjustments         $ 0.03       $ 0.06         $ 0.11       $ 0.44
per common share

(1)Earnings After Adjustments and Earnings After Adjustments per share are
non-GAAP measures which are indicators of our performance.They exclude
certain impacts which are of a nature which we believe are not reflective of
our underlying performance.Management believes that earnings after
adjustments per common share provides investors with the ability to better
evaluate our underlying operating performance.


Table A
Hecla Estimated Ore Reserves and Resources
(As of December 31, 2012)

                           Silver     Gold       Lead   Zinc   Silver        Gold       Lead      Zinc
Mine          Tons         (Oz/ton)   (Oz/ton)   (%)    (%)    (Ounces)      (Ounces)   (Tons)    (Tons)
Proven and Probable Reserves
Proven Ore
Reserves
Lucky           2,206,600      12.1         —            7.4      2.7      26,778,900      —            163,350     58,560
Friday, USA
Greens        12,000       9.3        0.10       2.7    7.8    112,500       1,100      330       930
Creek, USA
Subtotal      2,218,600                                    26,891,400    1,100      163,680   59,490
Proven
Probable
Reserves
Lucky           1,931,700      14.8         —            8.7      3.2      28,676,000      —            167,390     62,300
Friday, USA
Greens        7,845,600    12.0       0.09       3.4    9.0    94,481,200    718,400    267,410   702,300
Creek, USA
Subtotal      9,777,300                                    123,157,200   718,400    434,800   764,600
Probable
Total
Proven &      11,995,900                                   150,048,600   719,500    598,480   824,090
Probable
Mineralized Material
Lucky
Friday, USA     19,028,600     5.7          —            3.8      2.3      108,704,400     —            731,460     440,470
^(1)
Greens
Creek, USA      448,600        5.9          0.12         3.2      7.0      2,650,500       53,500       14,300      31,580
^(2)
San
Sebastian,      1,297,300      3.4          0.06         1.1      1.5      4,371,000       73,900       14,640      19,080
Mexico ^(3)
San Juan
Silver, USA     515,500        14.8         —            2.1      1.1      7,619,600       —            10,760      5,820
^(4)
Star
Complex,      1,061,200    3.0        —          6.4    7.5    3,235,200     —          68,340    80,100
USA ^(5)
Total
Mineralized   22,351,200                                   126,580,700   127,400    839,500   577,050
Material
Other Resources
Lucky
Friday, USA     6,921,900      9.1          —            5.6      2.3      62,651,500      —            384,930     158,240
^(6)
Greens
Creek, USA      3,784,500      11.4         0.10         2.4      6.2      42,977,300      379,200      92,130      233,110
^(7)
San
Sebastian,      5,695,900      4.2          0.03         0.5      0.6      23,897,400      159,700      25,880      36,040
Mexico ^(8)
San Juan
Silver, USA     3,078,200      10.7         0.01         1.3      1.1      33,096,400      35,600       40,990      34,980
^(9)
Star
Complex,        2,972,300      3.2          —            5.9      5.5      9,377,900       —            174,080     163,480
USA ^(10)
Monte
Cristo, USA   913,300      0.3        0.14       —      —      271,000       131,300    —         —
^(11)
Total Other   23,366,100                                   172,271,500   705,800    718,010   625,850
Resources
                                                                                                                    
Note: All estimates are in-situ; Rounding may affect totals

^(1) Mineralized Material from Gold Hunter and Lucky Friday vein systems diluted and factored for expected mining recovery.
^(2) Mineralized Material only in Gallagher orebody, factored for dilution and mining recovery.
^(3) Mineralized Material, diluted to minimum mining width of 2.0 meters for Hugh Zone, 1.5 meters for Andrea Vein.
^(4) Mineralized Material, diluted to minimum mining width of 6.0 feet for Bulldog.
^(5) Mineralized Material, diluted to minimum mining width of 4.3 feet.
^(6) Other Resources from Gold Hunter and Lucky Friday vein systems diluted and factored for expected mining recovery.
^(7) Other Resources in East Ore, Gallagher, NWW, 200S orebodies, factored for dilution and mining recovery.
^(8) Other Resources, diluted to minimum mining width of 2.0 meters for Hugh Zone, 1.5 meters for Andrea & Middle Veins.
^(9) Other Resources, diluted to minimum mining width of 6.0 feet for Bulldog.
^(10) Other Resources, diluted to minimum mining width of 4.3 feet.
^(11) Other Resources, diluted to minimum mining width of 5 feet.


Table B
Assay Results

                                                                                         
San                        Drillhole     Width      Gold        Silver      Width    Gold       Silver
Sebastian
(Mexico)      Area          Number        (Meters)   (g/tonne)   (g/tonne)   (Feet)   (oz/ton)   (oz/ton)
              Middle Vein   SS-387        0.78       0.78        214.1       2.56     0.02       6.24
                Middle Vein   SS-388        0.61       0.80        585.4       2.00     0.02       17.07
                Middle Vein   SS-392        1.01       0.12        152.5       3.31     —          4.45
                Middle Vein   SS-393        0.52       0.43        428.0       1.71     0.01       12.48
                Middle Vein   SS-394        1.11       0.03        68.1        3.64     —          1.99
               Middle Vein   SS-395        1.43       3.33        964.1       4.69     0.10       28.12
                Middle Vein   SS-398        1.09       0.16        219.0       3.58     —          6.39
                Middle Vein   SS-404        2.09       0.71        216.0       6.86     0.02       6.30
                Middle Vein   SS-405        1.41       8.59        2,554.9     4.62     0.25       74.52
                Middle Vein   SS-406        1.31       0.85        329.9       4.30     0.02       9.62
              Middle Vein   SS-411        0.18       5.16        4,900.0     0.59     0.15       142.92
                                                                                        
Greens                        Drillhole     Width      Gold        Silver              
Creek
(Alaska)      Zone          Number        (Feet)     (oz/ton)    (oz/ton)    Zinc     Lead (%)
                                                                                         (%)
             200 South     GC3337        3.1        0.02        18.3        2.0      0.9
             200 South     GC3483        50.0       0.08        35.9        11.2     4.9
             200 South     GC3490        19.0       0.49        65.8        7.0      3.5
             200 South     GC3500        3.0        0.04        58.2        3.3      1.5
             200 South     GC3503        31.3       0.21        26.5        10.0     2.6
             200 South     GC3516        8.3        0.03        50.3        4.2      2.1
             200 South     GC3457        39.0       0.18        29.7        9.1      3.5
             200 South     GC3469        25.2       0.11        27.3        14.7     5.9
             200 South     GC3500        3.0        0.04        58.2        3.3      1.5
             200 South     GC3506        40.0       0.24        16.5        14.0     4.2
             200 South     GC3512        15.7       0.11        65.4        5.2      2.4
             200 South     GC3517        9.8        0.10        23.7        2.9      1.7
             200 South     GC3471        28.6       0.37        9.8         21.7     11.4
             200 South     GC3501        27.5       0.13        28.1        14.8     8.0
             200 South     GC3482        37.0       0.22        23.0        11.5     4.5
             200 South     GC3486        23.0       0.21        21.8        8.5      3.6
             Gallagher     GC3382        5.1        0.10        14.8        2.0      1.5
             Gallagher     GC3394        10.0       0.09        5.0         14.7     7.7
             Gallagher     GC3530        5.7        0.18        8.4         19.4     7.1
             Gallagher     GC3536        4.5        0.14        11.5        9.9      5.0
             Gallagher     GC3537        10.0       0.23        6.1         13.7     5.1
             Southwest     GC3453        10.5       0.06        91.8        17.7     8.5
                Bench
             Southwest     GC3456        5.9        0.01        19.1        1.2      0.5
                Bench
             Lower         GC3514        11.8       0.18        14.63       15.0     3.3
                Southwest
             5250 Zone     GC3534        20.6       0.18        33.20       22.0     12.2
             5250 Zone     GC3535        15.0       0.09        14.69       7.1      3.2
             5250 Zone     GC3538        30.3       0.28        28.21       14.6     7.4
             5250 Zone     GC3468        8.8        0.10        30.9        7.4      4.4
             9a Zone       GC3371        19.0       0.06        9.0         25.5     10.8
             9a Zone       GC3425        6.6        0.59        25.0        13.2     6.8
                                                                                                                 
                                                            
San Juan                        Drillhole       Width        Gold          Silver
Silver
(Colorado)    Vein / Area   Number        (Feet)     (oz/ton)    (oz/ton)
                                                            
             Amethyst      NAU12161      9.1        0.05        5.1
             Amethyst      NAU12175      2.3        0.03        12.7
             Amethyst      NAU12177      2.9        0.01        11.5
             Amethyst      NAU12178      21.3       0.04        2.9
             Amethyst      NAU12180      4.7        0.01        4.5
             Equity        NAU12183      0.6        0.03        72.5
                                                                                                                 
                                                                       
Silver                          Drillhole       Width        Silver
Valley/Star
(Idaho)       Vein / Area   Number        (Feet)     (oz/ton)    Zinc (%)    Lead
                                                                                         (%)
                                                                       
STAR          STR200-1028   Morning       4.3        1.6         2.7         3.2
COMPLEX
             STR200-1034   Morning       4.3        0.6         1.4         1.6
             STR200-1027   Morning       4.3        3.1         0.7         3.3
                                Hangingwall
             STR200-1028   Morning       4.3        1.9         0.3         2.1
                                Hangingwall
             STR200-1026   Morning       4.3        3.7         0.1         1.3
                                Hangingwall
             STR200-1031   Morning       4.3        6.1         6.0         11.9
                                Hangingwall
             STR200-1032   Morning       4.3        1.8         0.2         2.3
                                Hangingwall
             STR200-1033   Morning       4.3        4.6         0.1         6.4
                                Hangingwall
             STR200-1034   Morning       4.3        1.3         1.0         2.5
                                Hangingwall
             STR200-1035   Morning       4.3        1.2         7.2         2.0
                                Hangingwall
             STR200-1035   Morning       4.3        2.1         5.0         3.9
                                Hangingwall
             STR200-1036   Morning       4.3        7.0         0.2         7.2
                                Hangingwall
             STR200-1026   Noonday       4.3        1.6         4.6         4.0
             STR200-1028   Noonday       4.3        3.4         0.9         3.1
             STR200-1035   Noonday       4.3        1.1         3.3         3.5
             STR200-1036   Noonday       4.5        7.7         0.8         4.5
             STR200-1025   Noonday N.    4.3        1.7         4.1         4.7
                                Split
             STR200-1026   Noonday N.    4.3        3.9         0.4         10.7
                                Split
             STR200-1031   Noonday N.    4.3        2.5         1.2         3.9
                                Split
             STR200-1036   Noonday N.    4.3        8.1         7.9         7.4
                                Split

Contact:

Hecla Mining Company
James A. Sabala, 208-209-1255
Direct Main: 800-HECLA91 (800-432-5291)
Senior Vice President and CFO
hmc-info@hecla-mining.com
www.hecla-mining.com
 
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