COEUR D ALENE, ID Hecla Mining Company reported that it has produced 2.6 million ounces of silver in the second quarter of 2010 at a total cash cost of negative $1.82 per ounce, after by-product credits. This compares with 3.0 million ounces of silver in the second quarter of 2009 at a total cash cost of $3.38 per ounce and 2.5 million ounces of silver in the first quarter of 2010 at a total cash cost of negative $3.03 per ounce. Cash costs in the second quarter of 2010 were higher compared with cash costs in the first quarter of 2010 because of lower prices for lead and zinc in the period.

By-product metal production totaled 17,880 ounces of gold, 21,623 tons of zinc and 11,582 tons of lead in the second quarter of 2010 compared with 15,925 ounces of gold, 19,410 tons of zinc and 10,650 tons of lead for the second quarter of 2009.

Phillip S. Baker, Jr. said, "Improved grades at both operations compared to the first quarter of 2010 helped to underpin another strong operating quarter for Hecla. Despite some price weakness associated with base metals in the quarter, our cost structure remains low and is one of the lowest amongst the primary silver producers."

The Greens Creek mine in Alaska produced 1.8 million ounces of silver during the second quarter of 2010 at an average total cash cost per ounce of negative $4.56, compared to production of 2.1 million ounces at an average total cash cost per ounce of $2.14 for the prior year period. The decrease in cash costs in the second quarter of 2010 compared to the second quarter of 2009, despite lower silver production, is primarily the result of higher prices and volumes for by-product credits. On a year-over-year basis, silver grade in the second quarter of 2010 was 10% lower; however, silver grade improved 14% compared with the first quarter of 2010.

Milled tonnage averaged 2,252 tons per day in the second quarter of 2010, a further step toward our long-term goal of 2,300 tons per day. Good availability of long-hole stopes helped to increase ore production while other development and back-fill activities continue to track well with production in the mine. Currently, the mine is on track to produce 7 million ounces of silver this year.

During the second quarter of 2010, $4.0 million was capitalized for underground development, purchases of new equipment and construction projects at the Greens Creek mine.

The Lucky Friday mine in northern Idaho produced 797,385 ounces of silver during the second quarter of 2010 at an average total cash cost of $4.47 per ounce of silver after by-product credits, compared to 868,339 ounces of silver during the second quarter of 2009 at an average total cash cost of $6.41 per ounce. Cash costs in the second quarter of 2010 were lower compared with the second quarter of 2009 due to higher prices for by-product credits. Lower quarterly silver production compared to the second quarter of 2009 is the result of rehabilitation work in the exhaust shaft and secondary escape-way. The mine is forecast to produce approximately 3 million ounces of silver in 2010.

Unit operating costs for mining and milling in the second quarter of 2010 were $71.97 per ton, or 7% lower than in the second quarter of 2009.

Capitalized mine costs in the second quarter were $14.0 million. This included continued detailed engineering work, as well as lateral development for an internal shaft and work at the new #4 tailings facility.

During the second quarter, $5.8 million was spent on exploration. Hecla's programs consist of underground and surface drill testing at the Greens Creek and Lucky Friday mine properties, as well as surface drill testing at projects in Idaho, Colorado and Mexico. Up to ten drills were active across the project areas during the quarter. Baker said, "We've seen continued success with deeper drilling at Lucky Friday while in-mine drilling at Greens Creek is finding important extensions to current reserves and resources. It's still relatively early in the surface exploration season and programs in our four project areas are just receiving assay data to direct additional drilling. The 2010 program is a ramp-up of our exploration activities and significant for some areas such as Greens Creek where we've had limited surface programs in the past two seasons."

At Greens Creek good drill results from the NWW and 200 South zones lead Hecla to believe that new reserves and resources could be outlined over time. Definition and exploration drilling of the NWW zone in the northern part of the mine have defined and extended two distinct limbs of a major folded orebody for over 200 feet down dip. Variable widths of massive sulfide up to 42 feet have been intersected on the two limbs of the fold. The drill intercepts contain higher-than-expected grades of precious metals such as: 0.72 ounces per ton gold and 75.6 ounces per ton silver with base metals over 2.6 feet. The closest previous holes above this area grade 0.27 ounces per ton gold and 33 ounces per ton silver plus base metals over 41 feet in the upper limb and 0.28 ounces per ton gold and 4.9 ounces per ton silver with base metals over 7.7 feet on the lower limb. Drilling later this year could expand both limbs further along strike.

Drilling from the 1147 Drift targeted the projection of the 200 South zone to the south and west. The first three holes completed included a 13-foot section of massive sulfide that graded 0.25 ounces per ton gold, 2.1 ounces per ton silver, 2.1% lead and 23.3% zinc. The second hole intersected a 30-foot interval of baritic ores and silicified argillite with elevated silver grades. Assays are pending on a few holes in this area as drilling continues to the south along the 1147 Drift to define extensions of the 200 South and 5250 South.

The surface drill program began in late May and is designed to systematically evaluate a series of targets including the north and eastern projection of the NE mine contact and the Killer Creek gossans. Disseminated mineralization, near the mine horizon and fault structures, has been observed in each of these target areas and drilling will attempt to expand the mineralized horizon and identify the next new orebody at Greens Creek.

At the Lucky Friday two underground drills continue to test the potential to expand the resource area outwards to the east with one program evaluating the interval between the 6300 and 6800 levels of the mine, and the other is testing below the 7000 level of the mineto about the 7900 level. Drilling to the east of the resource between the 6300 to 6800 levels shows that the 30 Vein continues to be strong. Selected assays from this area include: 12 feet of 30.4 ounces per ton silver and 24.4% combined lead-zinc and 4.6 feet of 16.4 ounces per ton silver and 11.4% combined lead-zinc.

Drilling below the 7000 level 500 feet to the east of the current resource boundary indicates that the 30 Vein locally narrows and contains higher-grade mineralization while secondary vein structures such as the 60, 70 and 90 Veins host wider zones with strong silver-lead-zinc. These results confirm that the vein structures continue at least 500 feet east of the known resources. Selected results include: 2.6 feet of 17.8 ounces per ton silver and 13.5% combined lead-zinc in the 30 Vein, 2.3 feet grading 43 ounces per ton silver plus 18.1% combined lead-zinc in the 60 Vein, 2.3 feet of 57.5 ounces per ton silver plus 33.4% combined lead-zinc in the 130 Vein. In the second quarter of 2010, we continued to have success defining new resources at the Lucky Friday.

Drill programs east and west of the Lucky Friday mine with three surface rigs are designed to test the Silver Mountain and You Like/30 Vein trends, respectively. Cross veins such as the Lucretia and Gettysburg Veins that parallel the Lucky Friday structures will also be evaluated. Hecla's program in these areas represents the first exploration on these targets in more than 50 years.

Encouraging mineralization and structures have been observed in the Silver Mountain drilling which is interpreted to be the eastern extension of the Lucky Friday veins. Drilling in the You Like target area west of the Lucky Friday Expansion area has intersected multiple vein structures and validated extensions at depth of previously identified shallower mineralization in historic workings. These are the first holes in a program to evaluate a significant exploration target (4,000 foot strike length, 7,000 feet down dip) between the western boundary of the Lucky Friday extension to the past-producing Star and You Like Vein deposits.

In southern Colorado, Hecla is earning a 70% interest in the San Juan Silver Joint Venture from its partners, Emerald Mining & Leasing, LLC, and Golden 8 Mining, LLC. Significantly, the Five-Year Plan of Operations and Environmental Assessment was approved by the U.S. Forest Service on June 15 allowing Hecla to fully access the 25-square-mile, district-controlling land package of the past-producing Creede mining district. Drills are initially targeting on-strike extensions to the Bulldog and Amethyst Vein structures which were prolific silver-bearing veins in the past and also evaluating new areas along the Equity and Amethyst Vein structures where there has been limited historic exploration. Assays are pending on all the drilling.

On the San Sebastian property, a systematic evaluation of targets through drilling and surface prospecting continues. At the Pedernalillo target, near the past-producing Don Sergio Vein, assays from the major quartz vein include 5.82 meters at 0.67 grams per tonne gold and 4.8 grams per tonne silver. Assays from a 10.2 meter zone of brecciation with moderate to strong pyrite directly below the vein are pending. Assay modeling and vein textures suggest that the most favorable target for enriched precious metals in the mineral system is at depth.

Features of the intersected veins and initial drill results on the first hole at the Cerro Santiago target area are promising. One of several near surface, and partially oxidized veins, graded 117 grams per tonne silver over 4.65 meters, with a narrower zone of 336 grams per tonne silver over 1.48 meters. Assay results from the remainder of the hole are pending. The Cerro Santiago target covers a strong silver and gold soil anomaly. Characteristics of the quartz intersected in the veins at Cerro Santiago have similarities to other parts of the district where high-grade precious metals are known. Drill programs on the Pedernalillo and Cerro Santiago targets will continue over the next few months.

Baker, said, "Our mines, operating management and orebodies combined with current prices allowed Hecla to generate an extraordinary amount of cash flow for the amount of production. With very low operating costs per ounce, our margin was in excess of $20 per ounce of silver which drove cash flow of $54 million in the quarter, the second highest in Hecla's history. This cash flow enabled Hecla to deploy financial resources to support larger exploration and development programs to build for the future. Importantly, we increased our cash balance during the recent quarter by more than $80 million to almost $200 million."

The company reported net income of $17.1 million in the second quarter of 2010, compared with net income of $2.5 million in the second quarter of 2009. After dividends to holders of its preferred stock, Hecla reported net income applicable to common shareholders of $13.7 million, in the second quarter of 2010, compared to a loss of $0.9 million in the second quarter of 2009. Hecla's mandatory convertible preferred stock will be converted into common stock in January 2011.

Cash flow from operating activities in the second quarter of 2010 was $54.0 million compared with $20.0 million in cash flow from operating activities in the same prior year period. In the second quarter of 2010, the company also received $45.6 million from the exercise of common stock purchase warrants and stock options. During the quarter, capital expenditures were $18.2 million compared to $7.3 million in the same prior year period. The increase is primarily the result of a ramp-up in capital expenditures, particularly with deep development at the Lucky Friday mine.

The company' s address is 6500 N. Mineral Drive, Suite 200, Coeur d Alene, ID 83815, 208.769.4100, fax: 208.769.7612, email: [email protected].