Update On The Lucky Friday #4 Shaft Project 
 

COEUR D'ALENE, ID - Hecla Mining Company provided an update on the #4 Shaft Project at its Lucky Friday mine in Mullan, Idaho, which Hecla believes could increase the mine's annual silver production by approximately 50% from current levels and extend the mine life beyond 2030. Total estimated capital expenditures for the #4 Shaft Project could range from $150 and $200 million, for an internal shaft descending from the 4900 level to the 7800 level. Engineering is underway to determine the feasibility of constructing the shaft to an ultimate depth of 8800 feet.

Since project inception in 2007, Hecla╒s Board of Directors has approved approximately $55 million of capital expenditures for prefeasibility, feasibility, front-end engineering and design, and early-phase development of the #4 Shaft Project. By year-end 2010, $50 million will have been invested in the detailed engineering and design of the shaft, excavation of the hoist room and off-shaft development access to shaft facilities, and placement of orders for major equipment. Hecla management currently expects to make a final technical and commercial feasibility determination and seek final approval by the Board of Directors for completion of the #4 Shaft Project no later than the middle of 2011. If approved, Hecla estimates that the project would be completed by the end of 2014. "This is a major milestone in the mine's history and we are very excited about the organic growth opportunity at Lucky Friday," said Phillips S. Baker, Jr., President and Chief Executive Officer. "The mine has been in production for more than 68 years and we believe that it may extend much further into the future with the addition of the #4 Shaft. With no debt and approximately $200 million of cash on hand at June 30, 2010, Hecla is currently well positioned to fund all of its capital requirements internally." The development of a new #4 Shaft and related infrastructure at Lucky Friday, when completed, would increase annual silver production from current levels of approximately 3 million ounces to 5 million ounces, with an expected average total cash cost of less than $4.00* per ounce of silver in the first five years of operation. The two key drivers for this potential increase of silver production are: 1) ore grade is expected to increase from the current grade of 10.4 ounces of silver per ton to over 14ounces of silver per ton (a corresponding increase in lead ore grade is also expected); and 2) mill throughput of ore is expected to increase from approximately 350 thousand tons to 375 thousand tons annually. The company has made good progress on preliminary construction activities. Excavation of the hoist room was completed ahead of schedule in the third quarter of 2010 and the foundations for the main production hoist are currently being constructed. Off-shaft development is planned at multiple locations between the 4700 and 7500 levels. Major long-lead equipment items received to date include the permanent hoist, underground concrete trucks, and temporary sinking plant facilities. The company's address is 6500 N. Mineral Drive, Suite 200, Coeur d'Alene, ID 83815, 208.769.4100, fax: 208.769.7612.