Hecla Reports 2012 Fourth Quarter and Year-End Results

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 December ?31, 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.

Hecla completed a record level of capital investment at its existing
operations of $36.6 ?million 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.

Base Metals Forward Sales Contracts

The following table summarizes the quantities of base metals committed
under financially settled forward sales contracts at December ?31, 2012:

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.

⁽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 2.1 ?million 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 strongand 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 0.14 ?ounces 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.