COEUR D’ALENE, Idaho–(BUSINESS WIRE)–Jan. 29, 2014– Hecla Mining Company (NYSE:HL) today announced preliminary production results¹ for the fourth quarter and full year 2013.

FOURTH QUARTER AND 2013 PRODUCTION HIGHLIGHTS

“During the fourth quarter Hecla achieved significant milestones with Greens Creek continuing its strong production, Lucky Friday back to normalized operations and Casa Berardi improving production and costs,” said Phillips S. Baker, Jr., Hecla’s President and CEO. “We look forward to strong, low-cost production from our three mines in 2014, remaining focused on reducing risk, increasing consistency of mine production and extending mine life. We have $212 million in cash at the end of 2013, and plan to spend within Adjusted EBITDA in 2014, which should allow us to maintain our strong financial position.”

Hecla expects to report its full fourth quarter and 2013 financial results on February 19, 2014.

⁽¹⁾ See cautionary statement regarding preliminary statements at the end of this release.

⁽²⁾ Increase in gold production due primarily to acquisition of Aurizon Mines Ltd. on June 1, 2013.

OPERATIONS OVERVIEW

Average consolidated fourth quarter cash cost, after by-product credits, per silver ounce³ was$7.33, compared to $3.45 in the same period in 2012, due largely to the addition of Lucky Friday production and higher silver production at Greens Creek relative to by-product metal production. The following table provides the production and cost per ounce summary on a consolidated basis for the fourth quarter and year ended December 31, 2013 and 2012:

⁽¹⁾ Non-GAAP measure. See the attached schedule for a reconciliation to GAAP. Cash cost, after by-product credits, per silver and gold ounce, for the fourth quarter and year end 2013 are considered preliminary and could change based on final audited financial results.

Greens Creek Silver Mine – Alaska

Greens Creek produced silver at a cash cost, after by-product credits, per silver ounce of $5.15 in the fourth quarter of 2013 and $4.42 for the full year 2013, compared to $3.45 and $2.70 per silver ounce in the fourth quarter of 2012 and full year 2012, respectively. The higher costs in 2013 reflected higher silver production relative to by-product metal production. The mill operated at an average of 2,206 tons per day in 2013, which is the highest daily average since the mine began operations in 1989.

Lucky Friday Silver Mine – Idaho

The Lucky Friday mine, which re-opened in February 2013 after 14 months of rehabilitation and enhancement, produced silver at a cash cost, after by-product credits, per silver ounce of $13.59 in the fourth quarter and $19.21 for the full year 2013. Costs were higher than anticipated due in part to slower production ramp-up and severe winter weather in December preventing 10 days of production. The mill throughput rate averaged 827 tons per day in the fourth quarter.

⁽³⁾ Cash cost, after by-product credits, per silver and gold ounce is a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) can be found at the end of this release. Cash cost, after by-product credits, per silver and gold ounce, for the fourth quarter and year end 2013 are considered preliminary and could change based on final audited financial results.

Casa Berardi Gold Mine – Quebec

The Casa Berardi mine, acquired June 1, 2013, produced gold in the fourth quarter at a cash cost, after by-product credits, per gold ounce of $824, compared to $1,155 and $1,067, in the second and third quarters of 2013, respectively, and compared to guidance for the fourth quarter of $950per gold ounce. For the seven-month period under Hecla ownership, the mine produced gold at a cash cost, after by-product credits, per gold ounce of $951.

The increased gold production and lower costs during the year were due in part to the development of new, higher grade stopes in the 118 and 113 Zones. The mill throughput rate averaged 1,974 tons per day in the fourth quarter.

2014 Guidance

For the full year 2014, based on current metals prices, the Company expects:

⁽¹⁾ Metal price assumptions used for calculations: Au $1,300/oz, Ag $20/oz, Zn $0.80/lb, Pb$0.90/lb; USD/CAD assumed at par.

About Hecla

Hecla Mining Company (NYSE:HL) is a leading low-cost U.S. silver producer with operating mines in Alaska and Idaho, and is a growing gold producer with an operating mine in Quebec, Canada. The Company also has exploration and pre-development properties in five world-class silver and gold mining districts in the U.S., Canada, and Mexico, and an exploration office and investments in early-stage silver exploration projects in Canada.

Cautionary Statements Regarding Preliminary Results

All measures of the Company’s fourth quarter and 2013 financial results and condition contained in the news release, including sales and costs, are preliminary and reflect the Company’s expected 2013 results as of the date of the news release. Actual reported fourth quarter and 2013 results are subject to management’s final review as well as audit by the Company’s independent registered accounting firm and may vary significantly from those expectations because of a number of factors, including, without limitation, additional or revised information and changes in accounting standards or policies or in how those standards are applied.

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. Such forward-looking statements or forward-looking information include statements or information regarding estimates of full year 2013 production, sales and costs, anticipated production and production cost targets, cost reductions and efficiencies at the Company’s mines, anticipated liquidity, capital projects, anticipated positive future cash flow, commencement of operation of the #4 Shaft at Lucky Friday, and anticipated capital expenditures, pre-development expenditures and exploration expenditures for 2013. 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 10-K and 10-Q 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 other than as may be required by law.

⁽¹⁾ Cash cost, after by-product credits, per ounce represents a non-U.S. Generally Accepted Accounting Principles (GAAP) measurement. A reconciliation of cash cost, after by-product credits, to cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) can be found in the cash cost per ounce reconciliation section of this news release. Gold, lead and zinc produced have been treated as by-product credits in calculating silver costs per ounce. The primary metal produced at Casa Berardi is gold, with a by-product credit for the value of silver production.

Reconciliation of Non-GAAP Measures to GAAP
(Unaudited)

This release contains references to a non-GAAP measure of cash cost, before by-product credits, per ounce and cash cost, after by-product credits, per ounce. Cash cost, before by-product credits, per ounce and cash cost, after by-product credits, per ounce represent non-U.S. Generally Accepted Accounting Principles (GAAP) measurements that the Company believes provide management and investors an indication of net cash flow. Management also uses this measurement for the comparative monitoring of performance of mining operations period-to-period from a cash flow perspective. “Cash cost, before by-product credits, per ounce” and “Cash cost, after by-product credits, per ounce” are measures developed by gold companies and used by silver companies in an effort to provide a comparable standard; however, there can be no assurance that our reporting of these non-GAAP measures is similar to those reported by other mining companies. Cost of sales and other direct production costs and depreciation, depletion and amortization are the most comparable financial measures calculated in accordance with GAAP to cash cost, before by-product credits cash cost, after by-product credits.

As depicted in the Greens Creek Unit and the Lucky Friday Unit tables below, by-product credits comprise an essential element of our silver unit cost structure. By-product credits constitute an important competitive distinction for our silver operations due to the polymetallic nature of their orebodies. By-product credits included in our presentation of cash cost, after by-product credits, per silver ounce include:

By-product credits included in our presentation of cash cost, after by-product credits, per gold ounce for our Casa Berardi Unit include:

The following table calculates cash cost, before by-product credits, per ounce and cash cost, after by-product credits, per ounce (in thousands, except per-ounce amounts):