Hecla Reports Record Silver, Gold and Lead Reserves

40% increase in reserve tons: 26% more gold and 8% more silver ounces

Resources in all categories also increased

COEUR D’ALENE, Idaho–(BUSINESS WIRE)–Hecla Mining Company (NYSE:HL)
today reported the highest silver, gold and lead reserves in its
128-year history and provided an update on its exploration programs
during the fourth quarter of 2018.

Highlights

• Reserve gains are from consistent long-term exploration programs and
  improved use of data.
• Greens Creek, which generates approximately 50% of Hecla’s revenues,
  increased reserve tons 23%, silver ounces 19%, gold ounces 16%, zinc
  tons 15%, and lead tons 17%, giving a mine life from reserves alone of
  approximately 11 years.
• Casa Berardi, which generates approximately 35% of Hecla’s revenues,
  increased reserve tons 70%, and gold ounces 28% with the expansion of
  Principal pit and the addition of the new West Mine Crown Pillar
  (WMCP) pit.
• Reserves grew while using price assumptions of $14.50/oz silver
  (expected to be among the lowest in the industry), $1,200/oz gold,
  $1.15/lb zinc and $0.90/lb lead; all below current spot prices (Figure
  1).

“Reserves in stable jurisdictions are a mining company’s most important
asset. Hecla now has the largest reserve in its 128-year history and its
largest single year increase because of exploration. The increase
reflects the quality of the districts we control; our long-term,
consistent strategy; and the capturing and use of all the data that
long-lived mines have,” said Phillips S. Baker, Jr., President and CEO.
“We have achieved this while the industry has generally seen declining
reserves and we were able to use among the most conservative price
assumptions in the industry because of the strong economics of these
deposits.”

“It is particularly important that this growth comes at Greens Creek and
Casa Berardi, who generate approximately 85% of our revenue and most of
our operations’ free cash flow. These mines are Hecla’s best,” Mr. Baker
added. “But we expect our other mines to do the same over the next few
years. We are working hard at San Sebastian to extend the oxide mine
life and to put the sulfides into production. We are just starting our
work in Nevada, reducing the reserve to better reflect the geology, with
the goal of building a solid base for consistent production.”

Key Reserve and Resource Statistics (2018 compared to 2017)

• Record proven and probable gold reserves of 2.85 million ounces, an
  increase of 26% (Figure 2).
• Record proven and probable silver reserves of 191 million ounces, an
  increase of 8% (Figure 3).
• Record proven and probable lead reserves of 774,000 tons, an increase
  of 5%. Proven and probable zinc reserves of 931,730 tons, an increase
  of 11% and the highest since 2009.
• The silver reserve of 107.1 million ounces at Greens Creek is the
  highest since it was 100% acquired in 2008. Gold reserves at Casa
  Berardi increased approximately 28% to 1.91 million ounces, the
  highest since 1990.
• Measured and indicated gold ounces increased 44% to 7.0 million
  ounces, a gain of 2.15 million ounces over 2017. Measured and
  indicated silver ounces increased 65% to a record 208 million ounces,
  an increase of 82 million ounces over 2017.
• Inferred gold resources increased 96% to 3.6 million ounces and a gain
  of 1.8 million ounces. Inferred silver resources increased 4% to 465
  million ounces and a gain of 17 million ounces.

Exploration

• Greens Creek:
  • Underground drilling continues to expand high-grade, near-surface
    resources at the Upper Plate and East Ore zones and add to
    mineralized trends along the Deep 200 South, Southwest Bench and
    Lower Southwest zones.
• Casa Berardi:
  • Underground drilling was able to upgrade and expand reserves and
    resources in the 118, 121, 123, 124, 125, 128 and 160 zones and
    confirm further potential at depth and to the east and west.
  • Surface drilling completed on the West Mine Crown Pillar (WMCP)
    extended the resource to the west. Step-out drilling of the
    128-129 zones east of the proposed Principal pit and near the
    proposed 160 pit has defined high-grade extensions.
• San Sebastian:
  • Drilling at the West Francine, El Toro (South) and Esperanza veins
    continue to define near-surface, oxide mineralization.
• Nevada:
  • Underground drilling at Fire Creek is identifying extensions to
    the Vonnie, Joyce, Karen and Honey Runner high-grade
    veins/structures in the Spiral 2, 3 and 4 areas.
  • Underground drilling at Hollister is identifying new
    mineralization in the West Gloria, East Clementine and Gwenivere
    areas.

“The 2018 exploration program was very successful at not only our mines
but at some of our exploration properties. However, for 2019 the focus
will be on San Sebastian, Casa Berardi and Nevada, of which Nevada is
estimated to be about half of the budget,” said Mr. Baker. “We believe
that after a few years of committed exploration there, we could see
results similar to what was achieved in 2018.”

RESERVES AND RESOURCES

Hecla more than replaced gold production in 2018 (318,901 gold ounces
contained) as reserves increased by 26% over 2017, and gold reserve
prices were calculated at $1,200/oz. Silver production in 2018 (12.9
million silver ounces contained) was also more than replaced as reserves
increased by 8%, despite using $14.50/oz for the reserve calculation. In
the last 11 years, Hecla has not only replaced silver production but
added another 200 million ounces through exploration (Figure 4). Both
zinc and lead production were replaced and reserves increased by 11% and
5%, respectively.

Measured and indicated gold ounces increased 44% to 7.0 million ounces,
a gain of 2.15 million ounces over 2017 due to increases at Greens Creek
and the acquisition of the Nevada properties. Measured and indicated
silver ounces increased 65% to a record 208 million ounces, an increase
of 82 million ounces over 2017 due to a large increase at Greens Creek,
San Sebastian and the addition of the Nevada properties. Inferred gold
resources increased 96% to 3.6 million ounces and a gain of 1.8 million
ounces primarily due to the acquisition of the Nevada properties.
Inferred silver resources increased 4% to 465 million ounces, a gain of
17 million ounces due to increases at San Sebastian, Greens Creek, and
the acquisition of Nevada properties.

Greens Creek

At Greens Creek, the 845,398 tons processed at the mill in 2018
contained 10.3 million ounces of silver, 79,087 ounces of gold, 63,116
tons of zinc, and 23,656 tons of lead. Silver, gold and base metal
production was replaced, and silver, gold, zinc, and lead reserves
increased by 18.7%, 15.8%, 14.9%, and 16.8%, respectively, over 2017
reserves. The current silver reserve of 107.1 million ounces is the
highest since 2008, the year Hecla acquired 100% of the mine. The
current gold reserve of 840k ounces is the highest since 2009. Increases
in silver and gold reserves at the 200 South, Gallagher, West, 9A, and
Southwest zones were partially offset by reductions of silver and gold
reserves in the 5250 Zone caused by mine depletion.

Measured and indicated resources increased by 66,134,100 silver ounces
(211%) and 467,700 gold ounces (181%) over 2017 with additions in the
West, Southwest, 9A, and 200 South zones and losses in the Gallagher and
East zones due to conversion to reserves. New drilling and remodeling of
areas historically mined at higher cutoffs were responsible for the
increases in Measured and indicated resources. Inferred resources
increased by 3,271,900 silver ounces (10%) and decreased by 3,200 gold
ounces (-1%) due to large conversions to indicated resources or reserves
in the 200 South, Upper Plate and East Ore zones.

A new NI 43-101 Technical Report is expected within 45 days. The
optimized mine plan accelerates access to higher-grade ore, and allows
some of the highest-margin reserves to be extracted in the earlier years
of the mine plan. It also utilizes more of the existing workings during
the next four years which reduces the planned development investment
required. In addition, the increase in reserves is expected to extend
the mine life by about three years to 2030.

Casa Berardi

At Casa Berardi, the 1,375,718 tons processed at the mill contained
approximately 162,744 ounces of gold, with 744,952 tons (54%) of the
milled tonnage coming from underground and 630,776 tons (46%) of the
milled tonnage coming from the East Mine Crown Pillar (EMCP) open pit.
Gold reserves increased approximately 28% to 1.91 million ounces and
reserve tonnage at Casa Berardi increased 71% to 23.7 million tons over
2017. Depletion decreased underground reserve ounces in the 104 (Lower
Inter), 113, 118, 123 and 124 zones. This was offset by reserve
additions in the west extension of the EMCP as well as 134 and 160 pits.
Substantial reserve increases occurred in the proposed WMCP and
Principal pits where some underground reserves were incorporated into an
expanded pit. There was an overall reduction in underground reserves of
176,400 gold ounces and an increase of open pit reserves of 589,600 gold
ounces compared to 2017.

Measured and indicated gold resources decreased 12% from 2017 levels as
gains from underground drilling of the 119 and 123 zones and 134 and 160
open pits were offset by decreases at the 107 (South West), 108 (Inter),
111, 113, 115, 117, 118, 121, 124, and 160 underground. The largest
decreases were a result of incorporation of the 107 (South West) and 160
underground to open pit reserves. Inferred gold resources decreased 9%
from 2017 levels as increases at the 105, 116, 124, 134, 146, 157, and
160 (underground and open pit) zones were offset by losses to inferred
resources in the 107 (South West) 108 (Inter) 118, 119, 121, 123, 148,
and 160 underground and open pit zones by conversion to indicated
resources. Significant losses to inferred resources in the 107 and 108
zones were due to resource upgrades and incorporation into the new WMCP
pit. A new NI-43-101 Technical Report is expected within 45 days.

San Sebastian

At San Sebastian, the 156,733 tons processed at the mill contained
2.04 million ounces of silver and 14,979 ounces of gold. Reserves are
currently 2.8 million ounces of silver and 22,500 ounces of gold. At the
end of the year there was an ore stockpile containing 84,700 silver
ounces and 1,800 ounces of gold. The total underground reserves in the
Middle Vein are 2.33 million ounces silver and 11,900 ounces gold and
represent 83% and 53% of the silver and gold reserves, respectively. The
total open pit reserves in the North Vein are 377,600 ounces silver and
8,800 ounces gold and represent 14% and 39% of the silver and gold
reserves, respectively.

Due to significant definition drilling, the indicated resources
increased from 2017 by 67% for silver to 14.7 million ounces, 11% for
gold to 114,700 ounces, 110% for zinc to 42,710 tons, 96% for lead to
30,410 tons, and 119% for copper to 19,780 tons. Indicated Resources are
separated into ‘Oxide’ and ‘Polymetallic’ mineral styles; oxide is
cyanide-amenable material and polymetallic is base-metal-sulfide-rich
material amenable to a flotation milling process. Polymetallic resources
were defined and extended at depth on the Francine and Middle Veins
during 2018. Polymetallic mineralization has zinc, lead and copper and
represents 54% of the silver and 17% of the Measured and indicated gold
resources. The inferred resource increased from 2017 by 44% for silver
to 22.9 million ounces and 50% for gold to 142,700 ounces due to new
material being added along the Middle Vein and in the East Francine
areas. Lead, zinc and copper decreased by 62%, 64% and 11%,
respectively, as a direct result of conversion of polymetallic
mineralization in the Francine Vein from inferred to indicated.

Open pit mining continued in 2018 in the expanded North pit to the west
and at depth and an additional smaller ‘satellite pit’ to the west and
mining of this pit is expected to continue into 2020. New high-grade,
precious metal resources on the Professor and East Francine veins are
being evaluated for underground mine design and scheduling. Possible
conversion of polymetallic veins in the Francine Vein to reserves will
be dependent on metallurgical testing of the bulk sample and stope
optimizations. The material from the bulk sample will be used for
metallurgical studies and a viability test at a nearby mill, where the
processing of polymetallic sulfide ores from San Sebastian is planned.

Lucky Friday

At Lucky Friday, the 17,309 tons processed at the mill contained
approximately 186,609 ounces of silver, 673 tons of zinc and 1,131 tons
of lead. Reserves are currently 81.0 million ounces of silver, 510,800
tons of lead and 225,260 tons of zinc and are essentially unchanged
relative to 2017. Measured and indicated resources have increased 3% for
silver to 77.4 million ounces, 3% for lead to 499,070 tons and 4% for
zinc to 265,970 tons. Inferred resources remained relatively unchanged
year-over-year and include 24.8 million ounces of silver, 181,180 tons
of zinc and 74,340 tons of lead.

Fire Creek

At Fire Creek, the 47,573 tons processed at the mill for Hecla in 2018
contained approximately 17,993 ounces of gold and 22,482 ounces of
silver. Reserves at Fire Creek are 69,300 ounces gold and 56,900 ounces
of silver and are a reduction from the second quarter of 2018 primarily
due to model changes that interpret the veins to be thinner (47% of
reduction), mining depletion (29% of reduction), and increased costs
resulting in higher cut-off grades (17% of reduction). Measured and
indicated underground resources are 215,200 ounces of gold and 197,900
ounces of silver and inferred resources are 298,700 ounces of gold and
288,400 ounces of silver.

Hollister

At Hollister, the 32,286 tons processed at the mill for Hecla in 2018
contained approximately 11,779 ounces of gold and 106,056 ounces of
silver. Reserves at Hollister are 7,600 ounces of gold and 82,400 ounces
silver and are a reduction from the second quarter 2018 primarily due to
mining depletion, but also due to removal of material because of thinner
vein interpretations. Additional reserve reductions were made as a
result of recent identification of fault offsets in the West Gloria
area; this material may come back into the reserve once the structural
geology and offset magnitudes are interpreted and drill tested. Measured
and indicated resources are 181,900 ounces of gold and 770,200 ounces of
silver and inferred resources are 222,700 ounces of gold and 1.7 million
ounces of silver.

A breakdown of the Company’s reserves and resources is set out in Table
A at the end of this news release.

EXPLORATION

Exploration (including corporate development) expenses were $8.3
million, and $35.9 million for the fourth quarter and full year 2018,
respectively. This represents an increase of 41% and 53% over the fourth
quarter and full year 2017. These increases were primarily the result of
the addition of exploration near the Nevada Operations, increased
exploration at San Sebastian, Casa Berardi and Greens Creek and initial
exploration at the Kinskuch project in British Columbia and the Little
Baldy project in northern Idaho.

Greens Creek – Alaska

At Greens Creek, drilling in the fourth quarter and strong assay results
have upgraded and expanded the Deep 200 South, East Ore, Upper Plate and
Southwest Bench zone resources. Exploration drilling focused on the Deep
200 South Zone and Lower Southwest Zone (Figure 5). Drilling of the Deep
200 South Zone confirmed three flat-lying, high-grade lenses that
are folded to the west and has enabled portions of bench mineralization
to be upgraded to an indicated resource category. Recent intersections
include 180.4 oz/ton silver, 0.36 oz/ton gold, 14.0% zinc and 7.2% lead
over 5.3 feet and 81.5 oz/ton silver, 0.40 oz/ton gold, 1.1% zinc and
0.6 lead over 5.0 feet. Near the mine portal elevation, drilling of the Upper
Plate Zone to the northwest has defined at least two flat-lying
zones that are folded to the east (Figure 6). In combination with
surface drilling earlier in the year, this resource expanded further to
the west and north. Definition drilling results indicate a thickening of
the upper and middle mineralization horizons toward the Southwest D
Fault from the east. Recent results include 11.4 oz/ton silver, 1.04
oz/ton gold, 2.2% zinc and 1.6% lead over 14.2 feet and 34.2 oz/ton
silver, 0.01 oz/ton gold, 2.5% zinc and 1.5% lead over 4.9 feet.

In the East Ore Zone, intersections from drilling at the north
end, including 38.5 oz/ton silver, 0.11 oz/ton gold, 7.4% zinc and 3.5%
lead over 6.1 feet and 29.5 oz/ton silver, 0.11 oz/ton gold, 3.6% zinc
and 1.3% lead over 8.4 feet, confirm previously modeled resource
estimates, particularly at lower and higher elevations. Drilling has
expanded this northern portion of the zone deeper by over 150 feet. The
focus of the first quarter in 2019 underground drilling is on the Lower
Southwest, Deep 200 South, 9A, and East Ore zones. Later in 2019
additional drilling targeting of the Northwest West and Upper Plate
zones is planned.

More complete drill assay highlights from Greens Creek can be found in
Table B at the end of this release and a presentation showing drill
intersection locations is available at the following: http://ir.hecla-mining.com/interactive/newlookandfeel/4130678/Hecla-Q4-2018-ExplorationUpdate.pdf.

Casa Berardi – Quebec

During the fourth quarter, up to six underground drills were used to
refine stope designs, expand reserves and resources in the 118, 121,
123, 124, 125, and 128 zones and confirm further potential at depth and
to the east and west (Figure 7). Up to four drills on surface completed
in-fill and exploration drilling at the West Mine Crown Pillar (WMCP),
the 128-129 zones east of the Principal pit and near the proposed 160
pit (Figure 7). The WMCP pit represents the latest in a series of
existing and proposed open pits (Figure 8) along the Casa Berardi Fault
or Deformation Zone. The cross section in Figure 9 shows where
underground resources were brought into the WMCP pit.

At the Lower 118 Zone, drilling confirmed the continuity of
multiple mineralized lenses to the west and at depth outside the current
resource boundary. Recent intersections continue to expand this
resource, including 0.63 oz/ton gold over 13.1 feet and 2.69 oz/ton gold
over 2.6 feet. This drilling suggests the zone is open at depth below
the 1200-level and to the west. Near the top of the 123 Zone
(Figure 10), step-out drilling to the east show the continuity of
high-grade mineralization down plunge for 400 feet from surface.
Drilling from the 710-790 levels have extended gold mineralization at
depth and further to the west with intersections of 0.39 oz/ton gold
over 10.8 feet and 0.35 oz/ton gold over 8.9 feet. Drilling from the 970
level, at the bottom of the mine, confirmed multiple lenses and suggests
these mineralized lenses plunge east at depth and remain open for
exploration.

High in the mine, drilling has targeted the east extension of the 124
Zone that is down-plunge of the Principal pit mineralization.
Drilling below the 290-level continues to show the down-dip potential of
the 124 lenses to depth. Further east, drilling of the 128-129 zones is
defining a high-grade, steeply-plunging series of lenses that have been
defined vertically for 600 feet and may extend below the 290 level.
Recent drill intersections include 0.35 oz/ton gold over 10.2 feet and
1.25 oz/ton gold over 1.6 feet.

Definition drilling has commenced at the 300-level of the East Mine
to refine the depth extensions of the 160 Zone below the pit
shells (Figure 11). Drilling has defined broad intervals of
mineralization including 0.21 oz/ton gold over 20.3 feet and 0.16 oz/ton
gold over 19.9 feet. This mineralization is steeply plunging to the west
and is open to depth. Drilling of the WMCP to evaluate open pit
potential west of the West Shaft has upgraded the current inferred
resource to reserves that are part of a newly defined open pit reserve.
The recent results below show that the near-surface, mineralized
structures extends both beyond the western extent of the WMCP pit.

In the first quarter of 2019, underground drilling is expected to expand
and refine the 118 and 123 zones lower in the mine and the 124-128 zones
closer to surface. Underground exploration drilling is planned to
evaluate the lower extension of the 113 Zone and the 128 Zone. Surface
drilling programs are planned at the western extension of the WMCP and
the 128-129 zones to define and expand underground mining potential east
of the Principal area along the Casa Berardi Fault.

More complete drill assay highlights from Casa Berardi can be found in
Table B at the end of the release and a presentation showing drill
intersection locations is available at the following: http://ir.hecla-mining.com/interactive/newlookandfeel/4130678/Hecla-Q4-2018-ExplorationUpdate.pdf.

San Sebastian – Mexico

During the quarter, three core drill rigs and one reverse circulation
(RC) drill operated at San Sebastian. One underground drill rig
completed in-fill drilling in the central and upper portions of the
oxide zone along the Middle Vein. Exploration drilling with two core
rigs was directed toward shallower oxide mineralization along the West
Francine, Esperanza veins and the recently discovered El Toro (South)
Vein (Figure 12). At the Middle Vein, in-fill drilling within the
oxide zone intercepted vein intervals with similar grade and width to
the previous exploration drilling results in this area. Strong drill
results include 66.9 oz/ton silver and 0.22 oz/ton gold over 5.8 feet,
and 42.4 oz/ton silver and 0.11 oz/ton gold over 4.7 feet. At the West
Francine Vein, located about 1,000 feet west of any past drilling on
the Francine Vein (Figure 12) core drilling has extended this
mineralization about 400 feet along strike and a recent drill hole at
the eastern end returned 9.5 oz/ton silver 0.02 oz/ton gold over 1.4
feet. Mineralization in this area is open laterally and at depth and
follow-up, offset drilling is in progress.

The El Toro (South) Vein is located approximately halfway between
the Andrea Vein resource area to the southeast and the Esperanza Vein to
the northwest (Figure 12). Based on its location and orientation, this
vein may represent the link between these two known veins with a total
prospective strike length of over eight miles. Recent core drilling
includes intersections of 9.8 oz/ton silver and 0.13 oz/ton gold over
11.8 feet,4.1 oz/ton silver and 0.13 oz/ton gold over 10.0 feet, and 6.0
oz/ton silver and 0.04 oz/ton gold over 5.4 feet (Figure 13).
Exploration drilling continues at the Esperanza Vein area, about
a mile and a half west of the mine area. This drilling has defined a
wide vein up to 30 feet wide but initial assay results have been poor.
Drilling has shifted to the northwest where there are strong
geochemistry anomalies along the trend of the vein.

Drilling will continue during the first quarter to evaluate near-surface
oxide mineralization at the West Francine Vein, El Toro (South) and
Esperanza Vein areas. A grid pattern of vertical holes for sampling
overburden and bedrock using an RC drill rig has begun to better define
the geochemistry along the Esperanza to Andrea vein corridor (Figure 14).

More complete drill assay highlights from San Sebastian can be found in
Table B at the end of this release and a presentation showing drill
intersection locations is available at the following: http://ir.hecla-mining.com/interactive/newlookandfeel/4130678/Hecla-Q4-2018-ExplorationUpdate.pdf.

Nevada

Fire Creek

There were up to four drill rigs operating underground at Fire Creek in
the fourth quarter with definition drilling focusing on upper and lower
portions of Spiral 4, upper portions of Spiral 3, and
up-dip of Spiral 2 mineralization (Figure 15).

Contacts

Mike Westerlund
Vice President – Investor Relations
800-HECLA91
(800-432-5291)
Investor Relations
Email: hmc-info@hecla-mining.com
Website:
http://www.hecla-mining.com

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