Silver Production Has Increased In Second Quarter Due To Throughput of Lucky Friday Mine

COEUR D'ALENE, ID - “All three of Hecla’s operating mines delivered solid performances during the second quarter, driven by expected increased silver production at Lucky Friday and gold production at Casa Berardi, while Greens Creek had a very solid and consistent quarter,” said Phillips S. Baker, Jr., President and CEO of Hecla Mining Company. “Lucky Friday’s silver production surpassed the 1-million-ounce mark for the quarter, totaling 1.2 million ounces, a 38% increase over the previous quarter as we see the benefits to throughput resulting from the continuous improvement of the UCB mining method, and increasing grades. Casa Berardi’s production increased by 10% over last quarter due to higher mill recoveries, grades, and throughput. This month we announced the acquisition of Alexco Resource Corp. which owns the Keno Hill silver district in the Yukon Territory of Canada. In addition to being the largest silver producer in the United States, with completion of necessary development at Keno Hill, Hecla has the potential to become the largest silver producer in Canada.”

Highlights: 1) Greens Creek produced 2.4 million ounces of silver which is consistent with the production in the first quarter. Gold production of 12,413 ounces was 9% higher than prior quarter production of 11,402 ounces due to increased grades. The mill operated at an average of 2,303 tons per day (tpd). 2) At the Lucky Friday mine, 1.2 million ounces of silver were produced compared to 888 thousand ounces in the prior quarter. The increase is attributable to 25% higher throughput at the mill and a 9% increase in grades. The higher throughput was achieved upon improved equipment availability and the commissioning of new underground equipment which is better suited for the UCB mining method. The mill operated at a record average throughput rate of 1,071 tpd for the quarter, highlighted by a record monthly throughput rate in June of 1,140 tpd. 3) Casa Berardi produced 33,306 ounces of gold compared to 30,240 ounces in the prior quarter. The increase in production was the result of higher throughput, recoveries, and grades. The mill operated at an average of 4,413 tpd compared to an average of 4,291 tpd in the prior quarter, having achieved an all-time monthly production record in May of 4,533 tpd.