Hecla Reports Record 2011 Revenue & Gross Profits

Hecla Mining Company ('Hecla?)(NYSE:HL)
today announced record 2011 revenue of $477.6 million and gross profit
of $265.0 million with net income applicable to common shareholders of
$150.6 million, or $0.54 per basic share, and adjusted net income
applicable to common shareholders of $130.9 million¹, or
$0.47 per basic share, for the year. Full year silver production was 9.5
million ounces at a total cash cost of $1.15 per ounce, net of
by-products.²

FULL YEAR 2011 HIGHLIGHTS

• 
  Achieved 9.5 million ounces of silver production in line with guidance
  at a total cash cost of $1.15 per ounce, net of by-products
  
• 
  Silver reserves and resources increased by 4% and 13%, respectively,
  to 148 million ounces and 281 million ounces
  
• 
  Finalized the long-standing Coeur d'Alene Basin environmental
  settlement paying $168 ?million in the fourth quarter
  
• 
  Achieved operating cash flow of $69.9 million after the environmental
  settlement payment of $168 million
  
• 
  Cash and cash equivalents of $266.5 million at December ?31, 2011, and
  no debt
  

FOURTH QUARTER 2011 HIGHLIGHTS

• 
  Net income applicable to common shareholders of $18.4 million, or
  $0.07 per basic share, and adjusted net income applicable to common
  shareholders of $18.8 million, or $0.07 per basic share¹
• 
  Silver production of 2.5 million ounces at a total cash cost of $2.28
  per ounce, net of by-products²
• 
  Acquisition of remaining 30% interest in San Juan Silver property in
  Creede, Colorado, in exchange for 5.4 million shares of Hecla valued
  at $33.8 million
  
• 
  Declared quarterly common stock dividend of $0.0125 per share of
  common stock which includes the new quarterly minimum dividend payment
  of $0.0025 and $0.01 of the dividend payment is based on an average
  realized silver price of $31.61 per ounce pursuant to Hecla's silver
  price-linked dividend policy
  

'Hecla faced significant challenges in 2011; however, what is different
today than at any other time in our history is that our financial
position, asset base, and growth opportunities are the strongest they
have ever been,' said Hecla's President and Chief Executive Officer,
Phillips S. Baker, Jr. 'In 2011, we had many significant
accomplishments: we achieved record revenues and profits; settled the
long-standing Coeur d'Alene Basin litigation thereby removing a
significant and unquantifiable liability; achieved our silver production
guidance; executed a $102 million capital expenditure program; expanded
growth opportunities with significant advancement in our three
pre-development programs; increased silver reserves and resources for
the sixth consecutive year in a row; introduced a new common stock
dividend; and we acquired the minority interest in the San Juan Silver
property. In addition, we finished the year with $266.5 million of cash
and no debt. We did all of these things while dealing with a series of
unprecedented and unfortunate, yet unrelated, events at our Lucky Friday
mine.'

(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.

FINANCIAL OVERVIEW

Hecla reported record revenue and gross profit in 2011 surpassing 2010's
previous record levels as a result of higher metals prices. These
results were achieved despite being faced with several challenges at the
Lucky Friday mine. Cash provided by operations would have also been at
record levels were it not for the initial Coeur d'Alene Basin
environmental settlement payment of $168 million in the fourth quarter
of 2011. Without this payment, cash provided by operations would have
been $238 million, a 20% increase over 2010's levels.

Hecla completed a record level of capital investment at its existing
operations of $28.0 million and $102.1 million for the fourth quarter
and twelve-month period, respectively. Capital expenditures were higher
primarily due to the #4 Shaft development at the Lucky Friday, and
significant tailings and other infrastructure investment at Greens Creek.

Pre-development expenditures totaled $2.7 million and $4.4 million for
the fourth quarter and twelve-month period ended December 31, 2011.
Pre-development expenditures in the fourth quarter were primarily for
infrastructure at the Star mine in the Silver Valley, and San Juan
Silver property in Creede, Colorado.

Exploration expenditures for the fourth quarter and twelve months were
$7.9 million and $27.0 million, respectively. In 2011, Hecla increased
the exploration drilling targets at each of its four district-sized land
packages in the United States and Mexico.

Metals Prices

Realized metals prices continued to increase significantly in 2011
compared to 2010. While the realized silver prices in the fourth quarter
of 2011 were 3% less than that in the same period in 2010, the
twelve-month period realized prices were 56% higher.

Decreases in prices in the time period between the shipment of
concentrate and final settlement resulted in negative adjustments to
provisional settlements of $9.8 million in 2011 compared to net positive
price adjustments to provisional settlements of $14.9 million in the
same period in 2010. The provisional price adjustments related to zinc
and lead contained in Hecla's concentrate shipments were largely offset
by net gains on forward contracts of $7.1 million for those metals in
2011.

Base Metals Forward Sales Contracts

The following table summarizes the quantities of base metals committed
under financially settled forward sales contracts at December ?31, ?2011:

OPERATIONS OVERVIEW

Silver production was in-line with guidance despite challenges faced at
the Lucky Friday mine. Production was down year-over-year due to lower
grade as a result of mine sequencing at Greens Creek. Fourth quarter and
full year silver cash cost, net of by-product credits, was $2.28 per
ounce and $1.15 per ounce, respectively, compared to $(0.14) per ounce
and $(1.46) per ounce, respectively, in the same period in 2010.

Greens Creek Mine - Alaska

Silver production at Greens Creek was 6.5 million ounces for the year
and 2.0 million ounces in the fourth quarter, compared to 7.2 million
ounces and 1.9 million ounces last year. The decrease in silver
production year-over-year is attributable to lower ore grade which
reflects mining a lower-grade portion of the mine. The increase in
silver production in the fourth quarter over the same period in 2010 is
attributable to higher ore grades.

Total cash cost per ounce of silver produced at Greens Creek was $(1.29)
and $0.42, net of by-products, for the full year and fourth quarter of
2011, respectively, compared to $(1.93) and $(3.90) for the same
respective periods in 2010. The increase in total cash cost per ounce
for the full year was primarily due to higher production costs, and
treatment and freight costs by $2.55 and $1.70, per ounce, respectively,
partially offset by higher by-product credits of $1.65 per ounce. The
increase in by-product credits is due to higher prices, despite lower
ore grades for by-product metals. The increased treatment costs are the
result of higher metals prices.

In 2012, Hecla is planning the largest investment in Greens Creek's
history, approximately $90 million. Some of the key capital expenditures
include Deep 200 South access development ($18 million), mining fleet
replacement and additions ($14 million), tailings dam expansion ($10
million), East Ore access and ventilation rehabilitation ($6 million),
definition drilling ($5 million), and the construction of expanded and
upgraded camp facilities ($5 ?million).

Lucky Friday Mine - Idaho

Silver production at Lucky Friday was 3.0 million ounces for the year
and .5 million ounces in the fourth quarter, compared to 3.4 million
ounces and .8 million ounces in the respective periods in 2010. The
overall decrease in production was primarily due to lower ore throughput
resulting from the interruptions to operations during 2011.

Total cash cost per ounce of silver produced at Lucky Friday was $6.47
and $9.68, net of by-product credits, for the full year and fourth
quarter, respectively, compared to $3.76 and $4.06, for the same periods
in 2010. The increase in total cash cost per ounce for the full year was
primarily due to higher employee profit sharing, higher treatment and
freight costs, and higher production costs by $1.76, $1.24, and $0.21
per ounce, respectively, which were partially offset by higher
by-product credits of $0.50 per ounce resulting from higher prices.
Higher profit sharing and treatment costs were due to higher metals
prices. In the fourth quarter, interruptions in mine operations
adversely affected cost per ounce due to the inefficiencies of startup
and shutdown cycles. As a result, production costs per ounce were higher
by $1.24 than in the fourth quarter of 2010.

Construction at the Lucky Friday #4 Shaft advanced in 2011 with shaft
sinking set-up activities, primary mechanical and electrical systems,
and critical lateral development largely complete. Upon restart of the
#4 Shaft construction operations, work will primarily focus on shaft
sinking and station development activities until project completion. The
total project is now 45% complete, and 80% of major procurements have
been ordered or installed. Capital expenditures for the #4 Shaft for the
full year and fourth quarter of 2011 were $9.6 million and $41.9
million, respectively, for a total of approximately $90 million invested
to date on the project. Total project capital is expected to be
approximately $200 million. As a result of the requirement to remove
built-up material in the Silver Shaft, construction of the #4 Shaft is
suspended until the work on the Silver Shaft is complete.

At the end of 2011, MSHA began a special impact inspection at the Lucky
Friday mine, which resulted in an order to remove loose material from
the Silver Shaft. In response, Hecla submitted a plan to MSHA and
recently received approval to remove the loose cementitious material. In
addition, the plan includes removal of unused utilities, construction of
a water ring to prevent ice from forming in the winter, the installation
of a metal brattice between the east and west half of the shaft
providing a physical barrier between the two halves, repair shaft steel,
and installation of a new power cable; all of which should improve the
shaft's functionality and possibly its hoisting capacity. Once the shaft
cleanup has been completed down to the 4900 level, work on the
previously announced 5900 haulage way bypass is expected to commence. In
addition to work on the Silver Shaft, other significant surface and
underground capital programs are being planned. Since January, a number
of other activities have been under way, of which the most significant
are driving a drift to access and maintain the pumps at the 5300 level
via the #2 Shaft during the standby period, with completion expected
this week, ongoing work on the headframe, and termination of citations.
Work on the shaft cleaning is expected to commence in the next few weeks.

Final plans are not yet complete, but Hecla expects to spend up to $50
million on all of these projects, which includes $10 million to remove
the loose cementitious material, $20 million for shaft improvements and
$20 million on other capital projects. Hecla expects to incur
non-capitalized expenses of $17.5 million, which includes $11 million in
holding costs, $4 million for the #4 Shaft care and maintenance, and
$2.5 million in discretionary expenses. The mine is expected to be on
standby for all of 2012 to complete this work and smelter contracts have
been suspended based on force majeure.

2012 GUIDANCE

Hecla reiterates its 2012 silver production estimate of approximately 7
million ounces, which excludes production from the Lucky Friday mine.
Production at the Lucky Friday mine is expected to resume in early 2013.
Total cash cost net of by-products is expected to be approximately
between $1.00 to $2.00 per ounce at current metal prices.

Capital expenditures are expected to be approximately $140 million,
which includes $90 million at Greens Creek, and $50 million at Lucky
Friday, which includes the cost of the Silver Shaft rehabilitation and
related capital items.

Pre-development expenditures are expected to be approximately $11
million, which includes $6 million at San Juan Silver, $3 million at the
Star, and $2 million at San Sebastian. Additional expenditures may be
budgeted at the San Juan Silver property following progress on studies.

Exploration expenditures are expected to be $28 million, which includes
$7 million at Greens Creek, $6 million in the Silver Valley, $8.5
million at San Juan Silver, $3 million at San Sebastian, and $3.5
million in generative activities.

CONFERENCE CALL AND WEBCAST

A conference call and webcast will be held today, February 21, at 1:00
p.m. Eastern Time to discuss these results. You may join the conference
call by dialing toll-free 1-800-510-9661 or 1-617-614-3452
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 has distinguished itself as
the largest and lowest cash cost silver producer 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. With a solid asset base,
a strong cash position and no debt, Hecla is poised for growth.

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.

For further information, please contact: