Hecla Reports Quarterly Net Income of $22.5 Million and Record Cash Flow of $32.3 Million

http://www.businesswire.com/news/home/20091102006687/en

For the Period Ended September 30, 2009
COEUR D’ALENE, Idaho--(Business Wire)--
Hecla Mining Company (NYSE:HL) today reported net income applicable to common
shareholders of $22.5 million, or 9 cents per diluted common share, on revenue
of $95.2 million in the third quarter of 2009, compared with a loss of $7.2
million on revenue of $68.5 million for the corresponding quarter in 2008. Third
quarter silver production was 2.7 million ounces at a cash cost of $0.85 per
ounce of silver produced after by-product credits. For the first nine months of
2009, Hecla produced 8.6 million ounces of silver at a cash cost of $3.00 per
ounce of silver produced after by-product credits.

Cash flow from operating activities increased 62% to $32.3 million in the third
quarter of 2009, compared to $20.0 million for the second quarter of 2009 and
$19.0 million in the third quarter of 2008. Excluding dividends to holders of
its preferred shares, Hecla reported net income of $25.9 million for the third
quarter of 2009, compared to a net loss of $3.8 million for the third quarter of
2008.

Hecla Mining Company President and Chief Executive Officer Phillips S. Baker,
Jr., said, "We had one of the best quarters in our hundred-year history
generating strong cash flow that increased our current cash balance by $27
million to $85 million. The main driver is the record revenue from acquiring the
remainder of the Greens Creek mine which doubled Hecla`s silver production and
almost tripled zinc production and increased lead production. In the U.S., Hecla
is now the largest silver producer and the second and third largest producer of
zinc and lead, respectively. Combined, the Greens Creek and Lucky Friday mines
provide Hecla with appreciable scale of production and, with higher metals
prices, have increased cash flow to these record levels."

THIRD QUARTER 2009 HIGHLIGHTS

--Records for revenue, gross profit, income from operations, cash flow from
operating activities, lead and zinc production; second highest net income in
Hecla`s history

--Silver production of 2.7 million ounces, an 8.5% increase compared to the
prior year period

--Cash costs of $0.85 per ounce of silver after by-product credits compared with
cash costs of $4.46 per ounce in the third quarter of 2008 and cash costs of
$3.38 per ounce in the second quarter of 2009

--Reduced full year guidance for cash costs by 25% to $2.25 per ounce of silver

--Record tonnage throughput at the Lucky Friday mine

--Strong financial liquidity with a cash balance of almost $85 million which has
allowed Hecla to fully repay all outstanding debt in the fourth quarter of 2009

--Increased availability of hydropower is expected to reduce Greens Creek costs
by approximately $2 million annually compared to costs incurred for power in the
first three quarters of 2009

METALS PRICES

The average market price for silver in the third quarter of 2009 was $14.70 per
ounce, or 2.2% lower than the same period a year ago. The average price for gold
increased 10.3% to $960 per ounce in the quarter compared with the average of
$870 per ounce in the third quarter of 2008. Hecla realized $16.33 per ounce for
silver and $999 per ounce for gold in the third quarter as a result of positive
provisional price adjustments.

The average prices for zinc and lead in the third quarter of 2009 were unchanged
at $0.80 and $0.87 per pound, respectively, compared to the same period in 2008.
Third quarter average prices for lead and zinc improved 28% and 19%,
respectively, compared with the second quarter of 2009. Due to positive
provisional price adjustments, Hecla realized $1.02 per pound for lead and $0.95
per pound for zinc.

OPERATIONS

This quarter Hecla produced 2.7 million ounces of silver compared to 2.5 million
ounces of silver in the third quarter of 2008. Higher production volumes at both
mines, as well as higher silver grades at the Lucky Friday mine, were the
primary reasons for increased silver production in the third quarter compared to
the same period a year ago.

Hecla`s average silver cash cost per ounce remains among the lowest in the
industry, with the third quarter cash cost averaging $0.85 per ounce of silver
after by-product metal credits. This compares with cash costs of $4.46 per ounce
of silver after by-product credits in the third quarter of 2008 and $3.38 per
ounce of silver in the second quarter of 2009.

By-product metal production totaled 16,815 ounces of gold, 20,616 tons of zinc
and 11,200 tons of lead in the third quarter of 2009. On average, by-product
metal production increased 5.7% in the third quarter of 2009 compared to the
second quarter of 2009 and 12.2% compared to the third quarter of 2008. Hecla`s
third quarter production of lead and zinc was the highest quantity ever produced
by the company in a quarterly period.

Greens Creek - The Greens Creek mine in Alaska produced 1.8 million ounces of
silver during the third quarter of 2009 at an average cash cost per ounce of
negative ($0.48) after by-product credits, compared to silver production of 1.8
million ounces at an average cash cost per ounce of $3.79 for the comparable
prior year period and $2.14 per ounce in the second quarter of 2009. The
decrease in cash costs in the third quarter compared to the same period in 2008
results from higher realized prices for by-product credits, higher throughput,
increased availability of hydroelectric power, lower diesel use and lower unit
prices for some process consumables.

Milled tonnage averaged 2,228 tons per day or 9% higher than the same period a
year earlier. Mine development, production and back-fill activities continue to
be well-synchronized, providing better flexibility to manage the mine at higher
rates of production compared to historical rates of production. Unit operating
costs for mining and milling decreased $19.86 per ton, or 24%, compared with the
third quarter of 2008. Additional mine rehabilitation increased mine and mill
costs by $3.20 to $63.76 per ton or 5% more than comparable second quarter 2009
costs of $60.56 per ton. During the period, the mine also produced 16,815 ounces
of gold, 17,835 tons of zinc and 5,585 tons of lead.

Alaska Electric Power and Light announced the completion of the Lake Dorothy
project adding additional hydroelectric power capacity in the Juneau area. The
project was completed ahead of schedule and while Greens Creek is an
interruptible customer, it is expected that the utility will provide continuous
service to the Greens Creek mine for the foreseeable future resulting in stable,
low cost energy.

During the third quarter of 2009, $8.7 million was capitalized for tailings pond
expansion, underground development and for sustaining activities at Greens
Creek.

Lucky Friday - The Lucky Friday mine in northern Idaho produced 930,258 ounces
of silver during the third quarter of 2009, a 26% increase compared with silver
production of 739,870 ounces in the third quarter of 2008. Average cash costs in
the third quarter of 2009 were $3.42 per ounce of silver after by-product
credits; average cash costs per ounce of silver in the third quarter of 2008
were $6.06 per ounce. Silver production in the second quarter of 2009 was
868,339 ounces at a cash cost of $6.41 per ounce of silver after by-product
credits. The decrease in cash costs are due to a combination of higher realized
prices for by-product credits, higher silver production and lower site costs.

Increased silver production in the quarter is the result of grade control
programs designed to minimize dilution which also tempers the use of backfill
and reduces related costs. As a result of the optimization work, silver grades
in the third quarter improved 15.4% compared with the prior year period. Daily
mine production averaged 959 tons per day or 8% higher than the third quarter of
2008 and was 4% higher than the second quarter daily average of 925 tons per
day. The tonnage processed at the Lucky Friday mine in the period was a record
high for a quarterly period. Unit operating costs for mining and milling
decreased $2.14 per ton, or 3%, in the third quarter of 2009 compared to the
third quarter of 2008. Operating costs decreased $5.88 per ton, or 8%, in the
third quarter of 2009 compared with the second quarter 2009 costs of $77.37 per
ton. The Lucky Friday mine produced 5,615 tons of lead and 2,781 tons of zinc in
the third quarter of 2009 with lead 19% higher and zinc 16% higher compared with
the same period during 2008. Production of lead and zinc was, on average, up
7.8% compared with the second quarter of 2009.

Capitalized mine costs in the third quarter of 2009 were $5.2 million. On-going
work at the water treatment plant and at the new #4 tailings facility were the
main capital items in the third quarter. Detailed engineering and long lead time
procurement to access deeper Lucky Friday material is underway. A final estimate
of capital costs and the development schedule will be released in the second
quarter of 2010.

EXPLORATION

During the third quarter of 2009, $2.7 million was spent on exploration. Drill
programs were underway on Hecla`s four main land packages located in Alaska,
Idaho, Colorado and Mexico. Baker said, "Our work in these districts began late
in the quarter and is now in full swing. With the 40% increase in our
exploration budget, we`re drilling targets at every property. With an expanded
and accelerated exploration program, I`m confident we are on the right track to
discovery."

Greens Creek - Four surface exploration holes were completed on the NE contact
and analytical results from these holes are pending. The holes intersected
multiple and stacked horizons that are interpreted to represent the favorable
mine contact near the Greens Creek mine infrastructure. More recently, a second
drill was added to the program to test the NE contact from underground set-ups.
In addition, underground drills were testing the downdip potential of the
Southwest Lower Contact and the potential for new resources in the
Northwest-West South zone.

Lucky Friday -Baker said, "Drilling continues to confirm increased grade and
widths as we go deeper at the Lucky Friday. This should result in higher
production, reduced costs and even better economics than what this mine has
generated over its 67-year history. We`re identifying quality tons deeper and
see the potential for resource additions in three directions of the deposit;
while to the west, we will drill for an offset of the 30 vein across the post
mineralized Silver fault." During the quarter, approximately 7,000 feet of
drilling continued to define the 30 Vein to the east of the current resource
below 6200 level with widths and grade increasing as the drilling tests areas
below 6400 level. Additional drilling in the central portion of the deposit
intersected good grades over mineable widths on the 30 and 90 veins. Selected
results include: 6.4 feet of 19.7 ounces per ton silver, 11.9% lead and 9.5%
zinc at 6250 level and 11.8 feet grading 17.3 ounces per ton silver, 10% lead
and 3.6% zinc at 6400 level. Deeper testing also along the eastern portion of
the lower limit of the 2008 resource boundary continued to intersect multiple
veins including intercepts such as 11.5 feet of 37.9 ounces per ton silver plus
21.8% lead and 8.9% zinc at 7650 level and 5 feet of 59.1 ounces per ton silver,
19% lead and 0.4% zinc and another step-out hole at a similar depth.

Drilling from surface is in progress at the Vindicator target approximately one
mile east of the Lucky Friday mine. The Vindicator veins are an eastern
projection of the currently mined 30 Vein at the Lucky Friday mine complex.

San Juan Silver -Drilling is targeting the projected northern extension of the
past producing Bulldog vein system. A second drill was recently brought to the
project site to test the more gold-bearing Midwest vein in the eastern portion
of the Creede district in southwest Colorado. Hecla can earn a 70% interest in
the San Juan Silver joint venture; its partners are Emerald Mining and Leasing,
LLC and Golden 8 Mining, LLC.

Mexico - Two drills are testing the Peñascote and El Garrote targets on the
large San Sebastian property near Durango. At Peñascote drills will be defining
shallow, locally oxidized and potentially bulk tonnage silver mineralization,
while deeper silver-gold epithermal veins will be tested at El Garrote.

FINANCIAL

At the end of the third quarter, Hecla had $84.7 million in cash. Debt
outstanding under the term facility at September 30, 2009, was $38.3 million.
Subsequent to the quarter end, Hecla repaid the entire $38.3 million outstanding
under the term facility from cash on hand. In addition, Hecla also announced in
mid-October that it has entered into a three-year, $60 million senior-secured
revolving credit facility. Baker concluded, "Hecla has come a long way in the
past year with two low-cost mines that provide reliable and secure production.
None of this could have been accomplished without a strong operations group that
has worked tirelessly to optimize and reduce site costs through some very
difficult economic times. This has transpired into some of the best financial
results that Hecla has ever achieved and I`m proud in the manner that our people
have met this challenge head on."

PRODUCTION OUTLOOK

The company is on track to meet its full year production guidance of 10.5 to 11
million ounces of silver. Third quarter cash costs of $0.85 per ounce of silver
and year-to-date cash costs of $3.00 per ounce of silver are also in-line with
guidance. Hecla is revising full year guidance on cash costs per ounce downward
to $2.25 per ounce of silver.

OTHER

Hecla Mining Company, headquartered in Coeur d'Alene, Idaho, mines, processes
and explores for silver and gold in the United States and Mexico. A 118-year-old
company, Hecla has long been well known in the mining world and financial
markets as a quality producer of silver and gold. Hecla's common and preferred
shares are traded on the New York Stock Exchange under the symbols HL, HL-PrB
and HL-PrC.

Statements made which are not historical facts, such as anticipated payments,
litigation outcome, production, sales of assets, exploration results and plans,
costs, and prices or sales performance are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995, and 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, exploration risks and results,
political risks, project development risks, labor issues and ability to raise
financing. Refer to the company's Form 10-Q and 10-K 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.

Cautionary Note to Investors - 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 in this news release, such as "resource,"
"reserve," and "inferred resource" that the SEC guidelines strictly prohibit us
from including in our filing with the SEC. U.S. investors are urged to consider
closely the disclosure in our 10Q`s and Form 10-K. You can review and obtain
copies of these filings from the SEC's website at
http://www.sec.gov/edgar.shtml.

Hecla Mining Company news releases can be accessed on the Internet at
http://www.hecla-mining.com.

HECLA MINING COMPANY

(dollars in thousands, except per share, per ounce and per pound amounts - unaudited)

Third Quarter Ended Nine Months Ended
HIGHLIGHTS Sept 30, 2009 Sept 30, 2008 Sept 30, 2009 Sept 30, 2008
FINANCIAL DATA
Sales $ 95,181 $ 68,485 $ 224,512 $ 173,446
Gross Profit $ 38,116 $ 11,397 $ 65,142 $ 31,674
Income (loss) applicable to common shareholders $ 22,538 $ (7,164 ) $ 25,532 $ (39,478 )
Basic income (loss) per common share $ 0.10 $ (0.05 ) $ 0.12 $ (0.31 )
Diluted income (loss) per common share $ 0.09 $ (0.05 ) $ 0.11 $ (0.31 )
Net income (loss) from continuing operations $ 25,946 $ (3,766 ) $ 35,757 $ (511 )
Cash flow provided by operating activities $ 32,294 $ 18,996 $ 51,882 $ 23,019
PRODUCTION SUMMARY - TOTALS
Silver - Ounces produced 2,731,950 2,516,784 8,578,538 6,181,446
Payable ounces sold 3,077,737 2,675,416 7,965,894 5,751,907
Gold - Ounces produced 16,815 16,396 50,789 36,504
Payable ounces sold 15,416 17,441 43,038 32,047
Lead - Tons produced 11,200 9,488 32,675 24,797
Payable tons sold 10,971 9,517 28,229 22,627
Zinc - Tons produced 20,616 18,851 58,737 41,860
Payable tons sold 12,977 14,690 43,335 32,190
Average cost per ounce of silver produced (1):
Total cash costs ($/oz.) (2) 0.85 4.46 3.00 2.86
Total production costs ($/oz.) 6.77 8.52 8.62 6.68
AVERAGE METAL PRICES
Silver - London PM Fix ($/oz.) 14.70 15.03 13.68 16.63
Realized price per ounce 16.33 12.30 14.93 15.93
Gold - London PM Fix ($/oz.) 960 870 930 897
Realized price per ounce 999 848 970 901
Lead - LME Cash ($/pound) 0.87 0.87 0.69 1.08
Realized price per pound 1.02 0.87 0.82 1.00
Zinc - LME Cash ($/pound) 0.80 0.80 0.67 0.95
Realized price per pound 0.95 0.73 0.78 0.84

(1) Total cash costs per ounce of silver and gold represent non-U.S. Generally
Accepted Accounting Principles (GAAP) measurements. A reconciliation of total
cash costs to cost of sales and other direct production costs and depreciation,
depletion and amortization (GAAP) can be found in the cash costs per ounce
reconciliation section of this news release. For additional information, see
note (1) in the cash costs per ounce reconciliation section.

(2) Includes gold, lead and zinc production, which is treated as a by-product
credit and included in the calculation of silver costs per ounce.

HECLA MINING COMPANY

Consolidated Statements of Operations

(dollars and shares in thousands, except per share amounts - unaudited)

Third Quarter Ended Nine Months Ended
Sept 30, 2009 Sept 30, 2008 Sept 30, 2009 Sept 30, 2008

Sales of products $ 95,181 $ 68,485 $ 224,512 $ 173,446
Cost of sales and other direct
production costs 41,079 47,188 112,239 118,832
Depreciation, depletion and amortization 15,986 9,900 47,131 22,940
57,065 57,088 159,370 141,772
Gross profit 38,116 11,397 65,142 31,674

Other operating expenses (income)
General and administrative 4,479 2,893 13,807 13,225
Exploration 2,737 5,454 5,001 18,365
Other operating expenses 1,091 814 3,715 2,271
Gain on sale of plants and equipment (6 ) (506 ) (6,234 ) (506 )
Curtailment of employee benefit plan - - - - (8,950 ) - -
Closed operations and environmental matters 510 896 2,416 2,386
8,811 9,551 9,755 35,741
Income (loss) from operations 29,305 1,846 55,387 (4,067 )

Other income (expense):
Gain on sale of investments - - - - - - 8,097
Loss on impairment of investments - - - - (3,018 ) - -
Interest and other income 26 481 372 3,576
Debt-related fees 14 - - (5,725 ) - -
Interest expense (2,801 ) (6,842 ) (10,231 ) (12,681 )
(2,761 ) (6,361 ) (18,602 ) (1,008 )
Income (loss) from operations before income taxes 26,544 (4,515 ) 36,785 (5,075 )
Income tax (provision) benefit (598 ) 749 (1,028 ) 4,564

Net income (loss) from continuing operations 25,946 (3,766 ) 35,757 (511 )
Loss from discontinued operations, net of tax - - (15 ) - - (17,395 )
Gain (loss) on impairment of discontinued operations, net of tax - - 25 - - (11,347 )
Net income (loss) 25,946 (3,756 ) 35,757 (29,253 )
Preferred stock dividends (3,408 ) (3,408 ) (10,225 ) (10,225 )

Income (loss) applicable to common shareholders $ 22,538 $ (7,164 ) $ 25,532 $ (39,478 )

Basic income (loss) per common share after preferred dividends $ 0.10 $ (0.05 ) $ 0.12 $ (0.31 )

Diluted income (loss) per common share after preferred dividends $ 0.09 $ (0.05 ) $ 0.11 $ (0.31 )

Basic weighted average number of common shares outstanding 236,379 136,148 220,523 128,882

Diluted weighted average number of common shares outstanding 244,337 136,148 223,727 128,882

HECLA MINING COMPANY

Consolidated Balance Sheets

(dollars and shares in thousands - unaudited)

Sept. 30, 2009 Dec. 31, 2008
ASSETS
Current assets:
Cash and cash equivalents $ 84,662 $ 36,470
Investments 2,717 - -
Accounts receivable 42,208 9,414
Inventories 17,312 21,331
Deferred taxes 2,850 2,481
Other current assets 5,126 4,154
Total current assets 154,875 73,850
Investments 2,483 3,118
Restricted cash and investments 10,945 13,133
Properties, plants and equipment, net 829,073 852,113
Deferred taxes 35,702 36,071
Other noncurrent assets and deferred charges 5,201 10,506

Total assets $ 1,038,279 $ 988,791

LIABILITIES
Current liabilities:
Accounts payable and accrued expenses $ 12,776 $ 21,850
Accrued payroll and related benefits 11,401 8,475
Accrued taxes 7,208 4,408
Current portion of accrued reclamation and closure costs 4,941 2,227
Current portion of long-term debt and capital leases 39,906 48,018
Total current liabilities 76,232 84,978
Long-term debt and capital leases 3,675 113,649
Accrued reclamation and closure costs 118,491 119,120
Other noncurrent liabilities 13,471 21,587

Total liabilities 211,869 339,334

SHAREHOLDERS` EQUITY
Preferred stock 543 543
Common stock 59,148 45,115
Capital surplus 1,101,598 981,161
Accumulated deficit (315,943 ) (351,700 )
Accumulated other comprehensive loss (18,296 ) (25,022 )
Treasury stock (640 ) (640 )

Total shareholders` equity 826,410 649,457

Total liabilities and shareholders` equity $ 1,038,279 $ 988,791

Common shares outstanding at end of period 236,494 180,380

HECLA MINING COMPANY

Consolidated Statements of Cash Flows

(dollars in thousands - unaudited)

Nine Months Ended
Sept. 30, 2009 Sept. 30, 2008
OPERATING ACTIVITIES
Net income (loss) $ 35,757 $ (29,253 )
Loss on discontinued operations, net of tax - - 28,742
Income (loss) from continuing operations 35,757 (511 )
Noncash elements included in net income:
Depreciation, depletion and amortization 47,324 23,579
Gain on sale of investments - - (8,097 )
Gain on disposition of properties, plants and equipment (6,234 ) (506 )
Loss on impairment of investment 3,018 - -
Provision for reclamation and closure costs 1,013 617
Stock compensation 2,312 3,748
Provision for deferred taxes - - (1,720 )
Preferred shares issued for debt-related expenses 4,262 - -
Amortization of loan origination fees 3,622 3,127
Gain on curtailment of employee benefit plan (8,950 ) - -
Loss on derivative contract 2,139 - -
Other, net 966 646
Change in assets and liabilities:
Accounts and notes receivable (32,796 ) 10,650
Inventories 4,019 5,734
Inventory - purchase price allocation adjustment - - 16,637
Other current and noncurrent assets (1,604 ) (2,551 )
Accounts payable and accrued expenses (9,075 ) (9,975 )
Accrued payroll and related benefits 3,252 759
Accrued taxes 2,800 (740 )
Other noncurrent liabilities 2,127 45
Accrued reclamation and closure costs and other noncurrent liabilities (2,070 ) (5,935 )
Net cash (used by) discontinued operations - - (12,488 )
Net cash provided by operating activities 51,882 23,019

INVESTING ACTIVITIES
Additions to properties, plants and equipment (17,337 ) (54,045 )
Acquisition of business, net of cash obtained - - (688,091 )
Proceeds from sale of investments - - 27,001
Proceeds from disposition of properties, plants and equipment 8,023 496
Maturities of short-term investments and securities held for sale - - 4,036
Decrease in restricted cash 3,487 22,437
Net cash provided by discontinued operations - - 21,159
Net cash used in investing activities (5,827 ) (667,007 )

FINANCING ACTIVITIES
Common stock issued 128,325 163,916
Dividends paid to preferred shareholders - - (7,427 )
Payments on interest rate swap (2,220 ) - -
Loan origination fees - - (5,276 )
Borrowings on debt - - 380,000
Repayments of debt (123,968 ) (181,233 )
Net cash provided by financing activities 2,137 349,980
Net (decrease) increase in cash and cash equivalents 48,192 (294,008 )
Cash and cash equivalents at beginning of period 36,470 373,123
Cash and cash equivalents at end of period $ 84,662 $ 79,115

HECLA MINING COMPANY

Production Data

Third Quarter Ended Nine Months Ended
Sept. 30, 2009 Sept. 30, 2008 Sept. 30, 2009 Sept. 30, 2008
GREENS CREEK UNIT (1)
Tons of ore milled 204,984 187,617 601,590 393,202
Mining cost per ton $ 40.04 $ 51.91 $ 41.52 $ 49.47
Milling cost per ton $ 23.72 $ 31.71 $ 22.35 $ 32.93
Ore grade milled - Silver (oz./ton) 12.63 13.32 13.50 14.36
Silver produced (oz.) 1,801,692 1,776,914 5,913,643 4,017,108
Gold produced (oz.) 16,815 16,396 50,789 36,504
Lead produced (tons) 5,585 4,781 16,124 10,920
Zinc produced (tons) 17,835 16,452 50,829 34,371
Average cost per ounce of silver produced (2):
Total cash costs (3) $ (0.48 ) $ 3.79 $ 1.70 $ 1.96
Total costs $ 7.08 $ 8.78 $ 8.60 $ 6.92
Capital additions (in thousands) $ 8,636 $ 7,291 $ 14,864 $ 21,004
LUCKY FRIDAY UNIT
Tons of ore processed 88,281 81,665 258,915 245,480
Mining cost per ton $ 56.58 $ 60.76 $ 57.98 $ 61.07
Milling cost per ton $ 14.91 $ 12.87 $ 14.86 $ 13.40
Ore grade milled - Silver (oz./ton) 11.22 9.72 10.97 9.45
Silver produced (oz.) 930,258 739,870 2,664,895 2,164,338
Lead produced (tons) 5,615 4,707 16,551 13,877
Zinc produced (tons) 2,781 2,399 7,908 7,489
Average cost per ounce of silver produced (2):
Total cash costs (3) $ 3.42 $ 6.06 $ 5.89 $ 4.55
Total costs $ 6.16 $ 7.88 $ 8.65 $ 6.22
Capital additions (in thousands) $ 5,231 $ 15,352 $ 12,454 $ 32,393

(1) Reflects Hecla`s 100% share of Green Creek as of April 16, 2008, and its
29.73% ownership prior to that date.

(2) Gold, lead and zinc produced have been treated as by-product credits in
calculating silver costs per ounce.

(3) Total cash costs per ounce of silver and gold represent non-U.S. Generally
Accepted Accounting Principles (GAAP) measurements. A reconciliation of total
cash costs to cost of sales and other direct production costs and depreciation,
depletion and amortization (GAAP) can be found in the cash costs per ounce
reconciliation section of this news release.

HECLA MINING COMPANY

Reconciliation of Cash Costs per Ounce to Generally Accepted Accounting Principles (GAAP)(1)

(dollars and ounces in thousands, except per ounce - unaudited)

Three Months Ended Nine Months Ended
Sept. 30, 2009 Sept. 30, 2008 Sept. 30, 2009 Sept. 30, 2008
RECONCILIATION TO GAAP, ALL OPERATIONS
Total cash costs $ 2,314 $ 11,215 $ 25,776 $ 17,699
Divided by silver ounces produced 2,732 2,517 8,579 6,181
Total cash cost per ounce produced $ 0.85 $ 4.46 $ 3.00 $ 2.86
Reconciliation to GAAP:
Total cash costs $ 2,314 $ 11,215 $ 25,776 $ 17,699
Depreciation, depletion and amortization 15,986 9,900 47,131 22,940
Treatment costs (20,377 ) (22,154 ) (55,313 ) (52,591 )
By-product credits 55,605 49,406 137,332 128,135
Change in product inventory 3,815 8,411 4,301 24,934
Reclamation, severance and other costs (278 ) 310 143 655
Costs of sales and other direct production costs and depreciation, depletion and amortization (GAAP) $ 57,065 $ 57,088 $ 159,370 $ 141,772

GREENS CREEK UNIT
Total cash costs $ (862 ) $ 6,728 $ 10,079 $ 7,855
Divided by silver ounces produced 1,802 1,777 5,914 4,017
Total cash cost per ounce produced $ (0.48 ) $ 3.79 $ 1.70 $ 1.96
Reconciliation to GAAP:
Total cash costs $ (862 ) $ 6,728 $ 10,079 $ 7,855
Depreciation, depletion and amortization 13,435 8,572 39,792 19,349
Treatment costs (15,298 ) (16,847 ) (41,961 ) (36,819 )
By-product credits 42,323 38,553 107,289 90,955
Change in product inventory 3,884 8,555 4,244 24,830
Reclamation, severance and other costs (297 ) 302 138 604
Costs of sales and other direct production costs and depreciation, depletion and amortization (GAAP) $ 43,185 $ 45,863 $ 119,581 $ 106,774

LUCKY FRIDAY UNIT
Total cash costs $ 3,176 $ 4,487 $ 15,697 $ 9,844
Divided by silver ounces produced 930 740 2,665 2,164
Total cash cost per ounce produced $ 3.42 $ 6.06 $ 5.89 $ 4.55
Reconciliation to GAAP:
Total cash costs $ 3,176 $ 4,487 $ 15,697 $ 9,844
Depreciation, depletion and amortization 2,551 1,328 7,339 3,591
Treatment costs (5,079 ) (5,307 ) (13,352 ) (15,772 )
By-product credits 13,282 10,853 30,043 37,180
Change in product inventory (69 ) (144 ) 57 104
Reclamation and other costs 19 8 5 51
Costs of sales and other direct production costs and depreciation, depletion and amortization (GAAP) $ 13,880 $ 11,225 $ 39,789 $ 34,998

(1) Cash costs per ounce of silver represent non-U.S. Generally Accepted
Accounting Principles (GAAP) measurements that the Company believes provide
management and investors an indication of net cash flow, after consideration of
the average price for by-products produced. Management also uses this
measurement for the comparative monitoring of performance of mining operations
period-to-period from a cash flow perspective. "Total cash cost per ounce" is a
measure developed by gold companies in an effort to provide a comparable
standard; however, there can be no assurance that our reporting of this non-GAAP
measure is similar to that reported by other mining companies. Cost of sales and
other direct production costs and depreciation, depletion and amortization, was
the most comparable financial measures calculated in accordance with GAAP to
total cash costs.

Hecla Mining Company
Don Poirier, 208-769-4128
Vice President - Corporate Development

Copyright Business Wire 2009