Hecla Reports a 30% Increase in Cash Flow  

COEUR D'ALENE, ID - Hecla Mining Company reported third quarter financial and operational results. The company generated $41.9 million in net cash from operating activities in the third quarter for a total of $115.3 million for the nine months period of 2010, up from $32.3 million and $51.9 million for the same periods in 2009.

Both Greens Creek and Lucky Friday had a good quarter and have generated more net cash from operating activities so far this year, compared to the full year of 2009, which was a record for Hecla

Silver production of 2.7 million ounces at a total cash cost of negative $1.01 per ounce. Adjusted net income of $29.6 million, up 31% over the same period in 2009. Income of $0.06 per share after preferred dividends. Record revenues of $115.8 million representing a 21% increase over the same period in 2009. Record gross profit of $54 million; 40% higher than the previous record. Cash and cash equivalents of $217 million on hand at September 30, 2010. Completed the excavation of the hoist room for the proposed internal #4 Shaft Project at Lucky Friday.

Both Greens Creek and Lucky Friday had a good quarter and have generated more net cash from operating activities so far this year, compared to the full year of 2009, which was a record for Hecla, said Phillips S. Baker Jr., President and Chief Executive Officer. Our cash position, strong operating performance and district size properties in the U.S. and Mexico, position us well to fund development and capital projects, as well as take advantage of other potential opportunities that may arise.

The Greens Creek mine in Alaska had a strong quarter producing 1.9 million ounces of silver at a total cash cost of negative $3.05 per ounce of silver compared to 1.8 million ounces at total cash cost of negative $0.48 per ounce of silver in the same quarter in 2009. For the nine months ended September 30, 2010, Greens Creek produced 5.3 million ounces of silver at a total cash cost of negative $4.61 per ounce, compared to 5.9 million ounces of silver at a total positive cash cost of $1.70 per ounce last year.

The total cash cost per ounce of silver was lower in the third quarter of 2010 compared to the same period in 2009, primarily as a result of higher by-product credits, higher average realized prices for zinc, lead and gold, combined with higher zinc and lead ore grades, which was partially offset by higher production, treatment and freight costs, and an increase in total silver ounces produced. The total cash cost decrease for the first nine months of 2010 compared to the same period in 2009, is mainly due to higher by-product credits and lower production costs.

At the Lucky Friday mine in Idaho, silver production was 0.8 million ounces at a total cash cost of $3.38 per ounce compared to 0.9 million ounces at a total cash cost of $3.42 per ounce in the same quarter in 2009. For the first nine months of 2010, Lucky Friday produced 2.5 million ounces of silver at a total cash cost of $3.67 per ounce, compared to 2.7 million ounces of silver at a total cash cost of $5.89 in the same period the prior year.

The third quarter total cash cost decrease of $0.04 per ounce of silver compared to the same period in the prior year, was mainly due to higher lead and zinc by-product credits resulting from increased average market prices for those metals and partially offset by higher price-sensitive production costs and taxes. For the nine months ended September 30, 2010, the $2.22 decrease in total cash cost per ounce of silver compared to the same period in 2009, is attributable to higher by-product credits and partially offset by costs that are sensitive to metals price increases.

Hecla is on track and reiterates its full-year 2010 production guidance of between 10 and 11 million ounces of silver. Given the strong metals price environment, the company now expects total cash cost per ounce of silver to be approximately negative $0.50. This estimate is based on prices for the fourth quarter averaging $1,110 per ounce of gold and $0.80 per pound of lead and zinc.

The 2010 exploration budget was increased to $20 million to allow for additional underground and surface drilling at Greens Creek, drilling of the Equity Vein structure on the San Juan Joint Venture in Colorado and drilling, underground rehabilitation and sampling at the Noonday Vein near the Lucky Friday mine.

During the third quarter, exploration activities continued at Greens Creek with drilling to define high-grade resources at the Northwest West (NWW) zone along two newly defined limbs below the current workings and along strike for at least 400 feet. Within this more typically base metal-rich area, there are distinct lenses that are enriched in precious metals. It is noteworthy that the typically base-metal rich NWW Zone has some significant intervals of precious-metal content. Definition and exploration holes continue to refine and expand the 200 South zone. Recent drilling continues to intersect mineralized intervals from 12 to 30 feet wide of mixed white siliceous ore and baritic ores.

Surface and underground drilling continue to define the NE contact which represents a continuation of the Greens Creek mine contact. However, it has been folded underneath the current workings and to the east. Recent drilling has defined mineralized intervals along the contact which has a folded strike length of over 5,000 feet and down dip extension of 3,000 feet. Future drilling will concentrate on defining resources in the areas where massive sulfides have been defined. Surface drilling of the mine contact to the north at Upper Killer Creek and East Ridge defined sulfide concentrations along the contact and assays are pending.

At Lucky Friday, definition and exploration drilling from the 5500-54 Ramp station was completed to assist in reserve definition and mine planning. Drilling has defined good grade over mining widths in the 30, 90 and 110 Veins down to the 6600 Level.

During the third quarter, the exploration activities continued to find strong veining to the east and at depth at the Lucky Friday Extension beyond the 2009 reserve and resource boundary. Exploration drilling from the 5900 level has shown expansion east of the 2009 resource boundary for the 30 Vein from the 6100 to 6600 levels, where some intermediate veins (90 and 110 Veins) are also well developed. Drill intersections from the 7000 to 7800 levels east of the current resource show the 30 Vein is narrow and argillite hosted, but significant mineralization does occur in the intermediate veins (40, 90 and 110 Veins) which at this elevation are typically in the more competent quartzite unit. Drill intersections down to the 8000 level, below the main mineralized area, continue to define a wide, high-grade 30 Vein, although most assays are pending. Some assay intervals of the 30 and intermediate veins are provided in Table A.

In the Silver Valley, the Noonday vein structures west of the Lucky Friday mine and near the past-producing Star Mine are targeting the up-dip continuation of mineralization above stopes that were last mined in the late 1980's. A number of high-grade zinc and silver veins have been intersected in recent drilling by the two drills active on the property. A recent program of underground sampling provides additional definition of the veins and contributes to an up-coming resource estimate of the Noonday veins.

At the San Juan Joint Venture Property in Colorado Hecla received approval of the Environmental Assessment and Five-year Plan of Operation at the end of the second quarter, which enabled the company to proceed with an exploration program. Three drills are currently evaluating extensions to the past-producing Equity, Bulldog and Amethyst veins and breccias. Recent intersections on all the targets have sulfide-bearing breccias and veins associated with intense alteration and silicification.

At the West Equity site, the company has cored into a +300-foot wide system that includes both the north-south (Amethyst trend) and east-west (Equity trend) trending veins, which indicates a broad intersection area between the two vein systems with characteristics consistent with the geology from previous production.

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