COEUR D’ALENE, Idaho–(BUSINESS WIRE)– Hecla Mining Company (NYSE:HL) today provided an update on its exploration programs during the second quarter.

Exploration Highlights

• Casa Berardi:
  • Drilling is expanding potential size of the East Mine Crown Pillar (EMCP) pit and the proposed 160, Principal and West Mine Crown Pillar (WMCP) open pits.
  • Underground drilling of the 118 and 123 zones continues to discover high-grade mineralization along trends. Surface drilling has defined high-grade extensions of the 124, 134 and south perimeter of the Principal Crown Pillar (123 Zone).
  • At Lac Germain, 4.5 miles east of Casa Berardi, drilling resulted in intersections of high-grade, gold-bearing mineralized zones in at least five subparallel lenses. Most of the gold-bearing lenses go to surface and the combination of mineralized lenses extend approximately 2,200 feet along strike and to a depth of 1,300 feet.
• San Sebastian: Continues to refine and expand high-grade, polymetallic zones on the Middle and Francine veins. Additional oxide mineralization being defined along the Professor and East Francine veins.
• Greens Creek: Exploration drilling continues to expand the Deep 200 South, Gallagher, East Ore, Upper Plate and Southwest Bench zone mineralized trends.
• Nevada: Integration of the Klondex exploration group is underway and drill programs are ramping up.

“The exploration success we have seen across the portfolio in recent quarters continues,” said Phillips S. Baker, Jr., President and CEO. “The teams at Casa Berardi, Greens Creek and San Sebastian are discovering high-grade material, both at surface and at depth. A new focus is our 110-square-mile land package in Nevada where we are integrating the existing exploration team and ramping-up drilling.”

Casa Berardi – Quebec

During the second quarter, up to six underground drills were used to refine stope designs, expand reserves and resources in the 118, 121, 123 and 124 zones and confirm further potential at depth and to the east and west. Up to five drills on surface completed infill and exploration drilling at the EMCP, WMCP, Principal, 134 and 160 zones. It is anticipated that once the resource is updated and pit optimization studies are completed, these results will extend the current EMCP pit to the west, potentially expand the proposed Principal Pit, and provide the basis for a new pit design of the WMCP. Deeper drilling has also identified high-grade zones that extend from the proposed 134, 160 and Principal pits into the underground where follow-up drilling has refined the geometry of these higher-grade resources.

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 include 0.55 oz/ton gold over 3.3 feet and 1.49 oz/ton gold over 1.6 feet and drilling continues to expand this mineralized trend. Drilling of stacked, high-grade lenses of the 123 Zone is defining the connection of multiple mineralized lenses for over 1,900 feet of strike length and over 3,600 feet down-dip below the 1070 level. Near the top of the 123 Zone resource, step-out drilling to the east has intersected 0.70 oz/ton gold over 15.3 feet and 0.50 oz/ton gold over 4.9 feet. Drilling from lower in the mine has defined a new mineralized area north of the Casa Berardi Fault. This new 125 Zone is a broad mineralized area that includes higher-grade intervals such as 0.20 oz/ton gold over 9.8 feet. Drilling below the current 123 Zone resource intersected 0.22 oz/ton gold over 21.2 feet and drilling further below the bottom of the mine returned 0.45 oz/ton gold over 12.0 feet and 0.44 oz/ton gold over 9.1 feet suggesting these mineralized lenses plunge west at depth and mineralization remains open. High in the mine, drilling has targeted the east extension of the 124 Zone that is down-plunge of the Principal pit mineralization. Exploration drilling is planned from underground to define this trend.

Surface and shallow underground drilling have identified extensions of potential pits that are being evaluated for production. Drilling on the west extension of the current EMCP Pit has returned 0.11 oz/ton gold over 40.3 feet, defining an extension of over 800 feet to the west of the current pit outline. Shallow drilling is completed. Updated block modeling and a final pit design shows the pit extending to the west and slightly to the east. Surface exploration drilling will follow up on the high-grade mineralization that was defined along the 146 and 148 zones and will be evaluated for the underground potential.

Surface drilling of the 134 and 160 zones below the limits of the proposed pits intersected high-grade veins that show continuity down-plunge to the east. Recent deeper drill intersections of the 160 Zone include 0.16 oz/ton gold over 57.4 feet and 0.16 oz/ton gold over 41.7 feet and the high-grade shoots within these intervals may have the potential for underground mining. Significantly, the re-establishment of the underground drill platforms in the East Mine below the 160 Zone could allow for the evaluation of these high-grade shoots later this year and possibly revive mining in this area.

Drilling of the WMCP to the west of the West Shaft continues to intercept strong mineralized structures near surface and shows the continuity of mineralization within 800 feet of surface. This drilling is designed to evaluate the open pit potential west of the West Shaft, and a significant number of assays are pending. The WMCP resource modeling is in progress and drilling results should be included in the end of year 2018 reserves. Drilling to the south of the proposed crown pillar in the Principal Pit area confirmed continuity and includes intersections of 0.04 oz/ton gold over 84.0 feet and 0.11 oz/ton gold over 8.9 feet.

For the remainder of 2018, surface drilling programs are planned at the 123-124 zones (Principal area), 146 Zone/EMCP, and WMCP to define and expand these potential open pits along the Casa Berardi Fault. Underground drilling is expected to continue to expand and refine the 118 and 123 zones lower in the mine and the 123, 124, 134 and 160 zones closer to surface. Drilling of the 160 Zone from underground is planned to start in the third quarter with the goal of increasing reserves and resources in the newly-accessible East Mine.

Surface drilling at the Lac Germain prospect, 4.5 miles to the northeast of the Casa Berardi mining lease and along a splay of the Casa Berardi Deformation Zone, succeeded in defining five gold-bearing mineralized lenses that extend approximately 2,200 feet along strike and to a depth of 1,300 feet from surface. In the LG-1 lens, a drill hole returned 0.32 oz/ton gold over 10.4 feet including 0.67 oz/ton gold over 3.5 feet. Along the LG-2 lens near-surface, drilling intersected an exceptional value of 14.8 oz/ton gold over 1.7 feet and a separate intersection of 0.20 oz/ton gold over 11.4 feet. At the LG-3 lens, drilling returned 0.18 oz/ton gold over 9.6 feet and 0.13 oz/ton gold over 7.5 feet. Finally, in Zone LG-4, intersections of 0.17 oz/ton gold over 19.7 feet, 0.12 oz/ton gold over 24.7 feet and 0.19 oz/ton gold over 12.9 feet were reported.

In combination, the lenses are interpreted to form a 300-foot wide structural and alteration corridor in a sequence of sedimentary rocks including banded iron formation. Gold-bearing mineralization is related to quartz and quartz-carbonate veins up to 5 feet thick and is present close to surface and has steep-to-sub-vertical plunges that are similar to the plunges of gold mineralization at the Casa Berardi Mine. A number of these lenses are open along strike and at depth and are expected to be the focus of exploration in 2019. Surface drilling to the west of the Casa Berardi Mining Lease has also extended mineralization along the Casa Berardi Deformation Zone where one recently defined lens has a similar style of mineralization to the 123 Zone at Casa Berardi. The prospective Casa Berardi Deformation Zone and related structural splays have a strike length of over 20 miles on the property and should be the focus of exploration for many years.

More complete drill assay highlights from Casa Berardi can be found in Table A 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-Q2-2018-ExplorationUpdate.pdf.

San Sebastian – Mexico

During the quarter, four core drill rigs and one reverse circulation (RC) drill operated, with two drills concentrated on infill drilling of the polymetallic zone along the Francine Vein. The other drills were active in exploration core drilling which was directed toward the expansion of high-grade polymetallic mineralization along the Middle Vein and shallower exploration drilling of oxide mineralization along the Professor and East Francine veins.

On the Francine Vein, infill holes within the polymetallic zone intercepted intervals of semi-massive sulfide that are generally consistent with the previous exploration drilling results. Recent assays include 0.11 oz/ton gold, 13.2 oz/ton silver, 2.2% copper, 2.9% lead, and 4.6% zinc over 5.6 feet, and 0.01 g/ton gold, 10.2 oz/ton silver, 2.1% copper, 2.6% lead, and 2.7% zinc over 10.0 feet. This drilling is continuing to the east and at depth and is intended to refine the resources prior to developing a mine plan. A bulk sample of the polymetallic Francine Vein should occur in the fourth quarter and provide material for metallurgical studies and a viability test of the nearby Excellon Mill where the processing of sulfide ores from San Sebastian is planned.

Further to the east, beyond the San Ricardo Fault, new zones of vein-hosted, oxide mineralization have been defined by drilling along the East Francine Vein. Drilling continues to intersect narrow, but high-grade mineralization including intersections of 0.05 oz/ton gold and 18.8 oz/ton silver over 6.1 feet and 0.07 oz/ton gold and 21.2 oz/ton silver over 4.2 feet. The mineralized area is currently defined over 1,200 feet along strike and 800 feet down-dip and drilling is now concentrated on the 1,000 feet of open area located between these new intercepts and the previously defined mineralization in the shallower portion of the East Francine Vein resource area. When incorporating the newly-defined mineralization in East Francine, the total strike length of continuous mineralization along the Francine Vein exceeds 8,000 feet and can be traced to a depth of over 2,000 feet.

Recent RC drilling intersected 0.02 oz/ton gold and 23.7 oz/ton silver over 6.6 feet of oxidized quartz vein about 100 feet from surface. This intercept is interpreted to be the projection of West Francine Vein in an area located about 1,000 feet west of any past drilling on the Francine Vein. Follow-up core drilling of this target is planned in the third quarter. The Professor Vein is located approximately 300 feet south of the Francine Vein and some high-grade mineralization is located near a programmed Francine Vein crosscut and could be accessed by extending the current ramp from surface. Recent drilling of this vein includes intersections of 1.03 oz/ton gold and 31.0 oz/ton silver over 6.3 feet and 0.19 oz/ton gold and 47.6 oz/ton silver over 4.9 feet. There appear to be three main pods of high-grade mineralization along the Professor Vein; one that extends vertically to surface and two pods that are located about 250 feet from surface.

Exploration drilling of the West Middle Vein was directed toward a new zone of high-grade mineralization with similar mineral characteristics as the previously discovered polymetallic mineralization on the Francine Vein. This zone extends 1,600 feet along strike and 1,400 feet down-dip and is open to the east and at depth. The upper extent of this mineralization is located about 100 to 300 feet below the new Middle Vein underground mine ramp and work on a development drift has begun to facilitate the collection of a bulk sample of the polymetallic mineralization later this year. Recent intersections include 47.6 oz/ton silver, 0.19 oz/ton gold, 0.1% copper, 0.3% lead, and 0.5% zinc over 4.9 feet and 29.7 oz/ton silver, 0.07 oz/ton gold, 0.1% copper, 0.3% lead, and 0.3% zinc over 2.3 feet. Drilling of this mineralization along the Middle Vein is expected to continue to depth and to the east.

Drilling continues to expand resources and evaluate polymetallic targets along the Middle and Francine veins and will also evaluate near-surface, oxide mineralization at the East and West Francine, Professor and Esperanza veins.

More complete drill assay highlights from San Sebastian can be found in Table A 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-Q2-2018-ExplorationUpdate.pdf.

Greens Creek – Alaska

At Greens Creek, drilling in the second quarter and strong assay results received from previous drilling in the first quarter have upgraded and expanded the Deep 200 South, Gallagher, East Ore, Upper Plate and Southwest Bench zone resources.

Drilling of the southern portion of the Deep 200 South Zone, include intersections of 101.4 oz/ton silver, 0.09 oz/ton gold, 4.2% zinc and 2.1% lead over 8.0 feet. Confirmed bench mineralization is present as two flat-lying, high-grade lenses and upgraded it to an indicated resource. Exploration drilling south of the current resource has extended 200 South Bench mineralization another 250 feet with an intersection of 31.8 oz/ton silver, 0.01 oz/ton gold, 2.2% zinc and 1.0% lead over 23.6 feet. Deeper drilling has defined a third, lower mineralized horizon along the mine contact that has been folded to depth relative to the bench mineralization. Recent exploration drilling to the south also identified thin bench mineralization outside the modeled ore zone to the west. Recent intersections in this area include 22.8 oz/ton silver, 0.38 oz/ton gold, 2.7% zinc and 1.3% lead over 3.0 feet. Shallow, east-dipping mineralization more than 250 feet west of the modeled ore zone includes 39.9 oz/ton silver, 0.02 oz/ton gold, 1.3% zinc and 0.7% lead over 9.2 feet. Current exploration drilling further south suggests the bench mineralization remains robust.

Drilling of the Gallagher Zone confirmed modeled thicknesses and may have increased the resource and mineralization further to the west. Intersections from this program include 10.6 oz/ton silver, 0.04 oz/ton gold, 2.0% zinc and 1.0% lead over 23.9 feet. Exploration drilling also intersected ore lithologies along and west of the Gallagher Fault. Future drilling is planned to see if the current precious metal-rich mineralization transitions into broader and higher-grade precious and base metal-rich mineralization.

Drilling of the Upper Plate Zone suggests that there are two, flat-lying ore zones near the mine portal elevation. Drill results show the lower band of mineralization is similar in thickness to the resource model, although it occurs beyond the current wireframe to the west and south. South of the current lower band, step-out drilling has intersected 42.9 oz/ton silver, 0.04 oz/ton gold, 3.1% zinc and 1.5% lead over 24.1 feet. The upper band is thicker than the resource model, including 21.0 oz/ton silver, 0.02 oz/ton gold, 9.7% zinc and 5.8% lead over 20.8 feet, and recent drilling has also extended this mineralization to the west and south. Drilling from surface in the third quarter could expand this resource further to the west and north.

Drilling of the Lower Southwest Zone indicates that the newly-defined lower ore band extends farther to the north and higher in elevation than modeled. Thick intercepts of white ores and massive sulfide lithologies continue to be found beyond the northern extent of the current resource. Recent drilling of the upper remnant limb of the lower Southwest Zone shows the mineralization in this section is much thicker than anticipated. In the East Ore Zoneintersections from definition drilling, including 18.8 oz/ton silver, 0.24 oz/ton gold, 12.4% zinc and 4.7% lead over 24.1 feet, confirm previously modeled resource estimates, particularly at higher elevations. The focus of underground drilling is planned to be on the Deep 200 South, Gallagher, East Ore and Southwest Bench zones throughout 2018 with additional drilling targeting the Northwest West and 9A zones.

Surface drilling commenced in June and the first three drill holes have intersected broad zones of stockwork veining and 3 to 5-foot wide bands of semi-massive sulfide containing significant sphalerite, galena and silver sulfosalts. This semi-massive sulfide zone is about 800 feet west of the current 200 South Bench resource and may represent part of a bench syncline that extends appreciably along strike to the north and south.

More complete drill assay highlights from Greens Creek can be found in Table A 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-Q2-2018-ExplorationUpdate.pdf.

Nevada

Fire Creek

Definition drilling at the Fire Creek Mine performed by Klondex Mines was focused on upgrading and expanding resources in the central Spiral 2 area and filling the gap to the Spiral 4 area in the southern part of the mine. Recent intersections in Spiral 2 include 1.08 oz/ton gold over 4.1 feet and 0.65 oz/ton gold over 3.0 feet and show the upside potential of resources in close proximity to mine workings. Drilling has also extended Spiral 2 mineralization up-dip and to the north in the Joyce Splay with intersections including 1.73 oz/ton gold over 1.8 feet. Intersections including 0.46 oz/ton gold over 6.8 feet along the Karen Vein indicate the structure continues south toward Spiral 4. Additional drilling has in-filled and extended mineralization along strike and up-dip in the Spiral 4 area. Underground development is advancing on the Haulage 9 drift to provide an exploration drill platform that is expected near year-end with the goal of extending Spiral 9 veins to the south.

There are two surface exploration rigs operating at the Fire Creek Mine to find extensions of current high-grade, gold-bearing structures. Drilling at the Guard Shack, which is southeast of the mine infrastructure, encountered structures with strong clay alteration, which typically are gold-bearing, and suggest the mineralization carries further south. Additional targets within the Guard Shack area that will be evaluated with drilling include a resistivity high to the west corresponding to a link structure between Joyce and the Titan zones. Further south along known structural corridors in the South Notice area, an Induced Polarization (IP)/resistivity geophysical survey is in progress to refine drilling targets for later in the year. The first surface hole at the Zeus target, which is northwest of the mine infrastructure, encountered a structure with strong alteration and mineralization at the projected target depth. This is the first of a projected eight holes that are designed to build upon strong drill results from last year to the north and south along strike.

Hollister

Two drill rigs concentrated on definition drilling in the Central Hollister to refine resources next to and above the mine infrastructure and evaluate the Gwenevere Vein and Upper Gloria areas that are the eastern and western extents of the mine, respectively. The Gwenevere program targeted the 58, 59 and 60 veins and intersections include 1.58 oz/ton gold and 13.5 oz/ton silver over 0.8 feet, 0.47 oz/ton gold and 0.60 oz/ton silver over 10.4 feet and 3.01 oz/ton gold and 13.6 oz/to silver over 0.4 feet and show the veins have good continuity and remain open to the east. The Upper Gloria intersections include 1.05 oz/ton gold and 67.2 oz/ton silver over 1.0 feet, 1.60 oz/ton gold and 11.2 oz/ton silver over 0.9 feet and 0.52 oz/ton gold and 10.8 oz/ton silver over 1.23 feet and indicates these high-grade veins are open further to the west and in the higher mining elevations. The Central Hollister program was designed to follow up on historical reverse circulation (RC) intercepts of the 213 Vein and to extend mineralization on the 151, 161 and 181 veins. Intersections include 1.65 oz/ton gold over 0.3 feet and 0.51 oz/ton gold over 2.2 feet and indicates significant mineralization exists above the central mine area.

Surface drilling of the Rowena target is designed to offset historic, high-grade intersections and extend the resource east and west in the northern part of the mine. Two drills on the Hatter Graben will start operating in August to test the current Hatter resource east and west.

Midas

Exploration drilling is concentrated on the Trinity target, which is a small, high-grade deposit south of the 3 Haulage Extension at the south end of the Midas Mine. Although assays are pending, surface drilling to the north and south suggests vein mineralization may be strongest along the edges of the Trinity Corridor and mafic dikes and appears to be open to both the south and north.

More complete drill assay highlights from Nevada (Fire Creek, Hollister and Midas) can be found in Table A 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-Q2-2018-ExplorationUpdate.pdf.

Other

Drilling in the quarter advanced the exploration of the Kinskuch silver-base metals project in northern British Columbia, the Little Baldy gold project in northern Idaho, and the Republic gold project in Washington.

Updated Reserves and Resources (Incorporating Three Nevada Mines)

A breakdown of the Company’s reserves and resources incorporating the new reserves and resources from acquisition of the Klondex Mines assets (Fire Creek, Hollister and Midas mines) is set out in Tables B and C at the end of this news release. The new table is a combination of Hecla Reserve and Resources (reported in Hecla Mining Company press release February 7, 2018) and the reserves and resources of the Fire Creek, Hollister and Midas mines. The Fire Creek reserves and resources are those reported by Klondex Mines on February 5, 2018 with mining depletion to April 1, 2018. Reserves and Resources for Hollister are those reported by Klondex on July 13, 2017 with mining depletion to April 1, 2018. The Midas Reserves and Resources have an effective date of June 30, 2017 and are also depleted to April 1, 2018.

ABOUT HECLA

Founded in 1891, Hecla Mining Company (NYSE:HL) is a leading low-cost U.S. silver producer with operating mines in Alaska, Idaho and Mexico, and is a growing gold producer with operating mines in Quebec and Nevada. The Company also has exploration and pre-development properties in eight world-class silver and gold mining districts in the U.S., Canada, and Mexico.

Cautionary Statements Regarding Forward Looking Statements

Statements made or information provided in this news release that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of Canadian securities laws. Words such as “may”, “will”, “should”, “expects”, “intends”, “projects”, “believes”, “estimates”, “targets”, “anticipates” and similar expressions are used to identify these forward-looking statements. The material factors or assumptions used to develop such forward-looking statements or forward-looking information include that the Company’s plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated, to which the Company’s operations are subject.

Forward-looking statements 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, litigation, regulatory and environmental risks, operating risks, project development risks, political risks, labor issues, ability to raise financing and exploration risks and results. Refer to the Company’s Form 10K and 10-Q reports for a more detailed discussion of risk factors that may impact expected future results. The Company undertakes no obligation and has no intention of updating forward-looking statements other than as may be required by law.

Qualified Person (QP) Pursuant to Canadian National Instrument 43-101

Dean McDonald, PhD. P.Geo., Senior Vice President – Exploration of Hecla Mining Company, who serves as a Qualified Person under National Instrument 43-101, supervised the preparation of the scientific and technical information concerning Hecla’s mineral projects in this news release, including with respect to the newly acquired Nevada projects. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures for the Greens Creek Mine are contained in a technical report prepared for Hecla titled “Technical Report for the Greens Creek Mine, Juneau, Alaska, USA” effective date March 28, 2013, and for the Lucky Friday Mine are contained in a technical report prepared for Hecla titled “Technical Report on the Lucky Friday Mine Shoshone County, Idaho, USA” effective date April 2, 2014, for the Casa Berardi Mine are contained in a technical report prepared for Hecla titled “Technical Report on the Mineral Resource and Mineral Reserve Estimate for the Casa Berardi Mine, Northwestern Quebec, Canada” effective date March 31, 2014 (the “Casa Berardi Technical Report”), and for the San Sebastian Mine are contained in a technical report prepared for Hecla titled “Technical Report for the San Sebastian Ag-Au Property, Durango, Mexico” effective date September 8, 2015. Also included in these four technical reports is a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures for the Fire Creek Mine are contained in a technical report prepared for Klondex Mines, dated November 30, 2017, amended March 2, 2018; the Hollister Mine dated May 31, 2017, amended August 9, 2017; and the Midas Mine dated August 31, 2014, amended April 2, 2015. Copies of these technical reports are available under Hecla’s and Klondex’s profiles on SEDAR at www.sedar.com.

Dr. McDonald reviewed and verified information regarding drill sampling, data verification of all digitally-collected data, drill surveys and specific gravity determinations relating to the Casa Berardi mine. The review encompassed quality assurance programs and quality control measures including analytical or testing practice, chain-of-custody procedures, sample storage procedures and included independent sample collection and analysis. This review found the information and procedures meet industry standards and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes.

Cautionary Statements to Investors on Reserves and Resources

Reporting requirements in the United States for disclosure of mineral properties are governed by the SEC and included in the SEC’s Securities Act Industry Guide 7, entitled “Description of Property by Issuers Engaged or to be Engaged in Significant Mining Operations” (Guide 7). However, the Company is also a “reporting issuer” under Canadian securities laws, which require estimates of mineral resources and reserves to be prepared in accordance with Canadian National Instrument 43-101 (NI 43-101). NI 43-101 requires all disclosure of estimates of potential mineral resources and reserves to be disclosed in accordance with its requirements. Such Canadian information is being included here to satisfy the Company’s “public disclosure” obligations under Regulation FD of the SEC and to provide U.S. holders with ready access to information publicly available in Canada.

Reporting requirements in the United States for disclosure of mineral properties under Guide 7 and the requirements in Canada under NI 43-101 standards are substantially different. This document contains a summary of certain estimates of the Company, not only of proven and probable reserves within the meaning of Guide 7, but also of mineral resource and mineral reserve estimates estimated in accordance with the definitional standards of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101. Under Guide 7, the term “reserve” means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination. The term “economically,” as used in the definition of reserve, means that profitable extraction or production has been established or analytically demonstrated to be viable and justifiable under reasonable investment and market assumptions. The term “legally,” as used in the definition of reserve, does not imply that all permits needed for mining and processing have been obtained or that other legal issues have been completely resolved. However, for a reserve to exist, Hecla must have a justifiable expectation, based on applicable laws and regulations, that issuance of permits or resolution of legal issues necessary for mining and processing at a particular deposit will be accomplished in the ordinary course and in a timeframe consistent with Hecla’s current mine plans. The terms “measured resources”, “indicated resources,” and “inferred resources” are Canadian mining terms as defined in accordance with NI 43-101. These terms are not defined under Guide 7 and are not normally permitted to be used in reports and registration statements filed with the SEC in the United States, except where required to be disclosed by foreign law. The term “resource” does not equate to the term “reserve”. Under Guide 7, the material described herein as “indicated resources” and “measured resources” would be characterized as “mineralized material” and is permitted to be disclosed in tonnage and grade only, not ounces. The category of “inferred resources” is not recognized by Guide 7. Investors are cautioned not to assume that any part or all of the mineral deposits in such categories will ever be converted into proven or probable reserves. “Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of such a “resource” will ever be upgraded to a higher category or will ever be economically extracted. Investors are cautioned not to assume that all or any part of a “resource” exists or is economically or legally mineable. Investors are also especially cautioned that the mere fact that such resources may be referred to in ounces of silver and/or gold, rather than in tons of mineralization and grades of silver and/or gold estimated per ton, is not an indication that such material will ever result in mined ore which is processed into commercial silver or gold.