Shaft Rehabilitation At Lucky Friday Is On Schedule

COEUR D'ALENE, ID - "We are pleased to report that shaft rehabilitation at the Lucky Friday mine advanced on schedule during the third quarter, and we anticipate being in production in the first quarter of 2013 and ramping up through the year to more than 2 million ounces by year end," said Hecla's President and Chief Executive Officer Phillips S. Baker, Jr. "Work crews have completed the Silver Shaft rehabilitation work to approximately the 5700 level, which is 400 feet from the shaft bottom. Therefore, we have recalled all employees and begun preparatory work for sinking of the #4 Shaft."

"Meanwhile, the expanded pre-development and exploration programs continued to deliver impressive results, including ramp development at the historic Bulldog mine in Colorado, and very high-grade intercepts at all four properties. We are rapidly advancing toward our targeted goal of 15 million ounces of Company-wide silver production by 2017. Underpinning this growth is our very strong balance sheet, with $232 million in cash and no significant debt," Baker added.

At the San Juan Silver project, the new 2,800 foot decline at the historic Bulldog mine in the Creede Mining District, has begun and has now advanced over 100 feet. This decline will provide access to a resource of 37 million ounces of silver and underground exploration platforms to expand these resources. Support facilities such as the maintenance and shotcrete shops are completed and operational. Prior to the Company acquiring 100% interest in the Bulldog, it had historic production of approximately 25 million ounces of silver before it was closed by the previous owner in 1985 due to then low silver prices.

Drilling in the Equity ramp at San Juan Silver in Creede, Colorado continues to have high grades on both the Equity and Amethyst Veins. Final drilling on the Equity structure includes an intersection of 0.17 opt gold and 22.3 opt silver over 10.1 feet. The mineralized zones at the Equity appear to be high grade with strike lengths from 100 to 300 feet but with significant down-plunge potential. Two underground drills are currently focused on the north-south trending Amethyst structure. Initial drilling has defined the upper limits of two distinct, steeply plunging mineralized vein trends along the Amethyst structural zone and include the intersection 0.27 opt gold and 33.4 opt silver over 4.7 feet.

At the Star project located tso miles northwest of the Lucky Friday Mine, rehabilitation of the main level and the secondary escape ramp to surface are complete as well as development of a 750-foot exploration drift. The #5 Shaft rehab is complete and installation of the hoist has begun. Exploration drilling has begun from the new drift on the southeast extension of the Noonday and Morning Veins. Drilling along strike to the southeast from known mineralization has produced good results with the best grading 29.1 opt silver and 8.9% combined lead and zinc over 5 feet. Drilling from underground and surface have confirmed progressively higher silver grades to the southeast where the mineralization trend is open. For 2013, more drilling is planned from the recently completed exploration drift and also from the surface.

At Greens Creek located on Admiralty Island near Juneau, Alaska, underground drilling continues to extend ore-grade mineralization along trend of the Southwest Bench, 200 South, Gallagher, 5250 and 9a Zones, with exceptional widths and grades, such as 70 feet of 0.3 opt gold, 13.8 opt silver and 21% combined zinc and lead at the 200 South; and 73 feet of 0.17 opt gold, 17.58 opt silver and 23.7% combined zinc and lead at the Southwest Bench. In 2013, modeling of these intersections could result in significant additions to the resource. Surface drilling has successfully identified mineralization at Killer Creek 1.5 miles west-northwest of the mine that contains copper-rich veins and bands and one mile west of the mine at West Gallagher that contains pyrite mud intervals that have carried anomalous base and precious metal grades in the past. Killer Creek and West Gallagher will be priority targets for the 2013 summer program.

"Greens Creek delivered 19% higher silver production than the previous quarter, as a result of increases in ore throughput and silver grade. Cash costs increased to $3.52 per ounce due to higher silver grades relative to the by-product metals resulting in lower by-product credit per ounce of silver produced. Meanwhile, our record capital investment program continued at Greens Creek, preparing the mine for many more years of anticipated low-cost production and reserve growth," Baker said.

Silver production at Greens Creek was 1.6 million ounces in the third quarter of 2012, compared to 1.4 million ounces in the same period in 2011. Third quarter silver cash cost was $3.52 per ounce, net of by-products, compared to a negative $2.98 per ounce in the same period in 2011, due in part to lower average base metals prices. Mining costs per ton were up by 23% and milling costs were 19% lower in the third quarter, as compared to the same period in 2011. The higher mining costs were primarily due to the increased use of contract miners, and the lower milling costs resulted from higher mill throughput and the availability of more hydroelectric power.

At San Sebastian, drilling moved from the Andrea where resources are being updated, to the Hugh Zone and approximately 800 feet further north to the Middle Vein to follow-up on limited drilling from six years ago. Results at the Middle Vein have been very good, with high-grade intersections such as 0.36 opt gold and 39.2 opt silver over 7 feet. Two drills are currently active and have defined mineralization for over 3,000 feet of strike and from surface to at least 1,000 feet in depth. Drilling also continues to expand the Hugh Zone updip and to the northwest in parallel with the Middle Vein.

Hecla reported a third quarter net loss applicable to common shareholders of $1.0 million, and earnings after adjustments applicable to common shareholders of $3.2 million. Third quarter silver production was up 19% from the previous quarter to 1.6 million ounces at a cash cost of $3.52 per ounce, net of by-products. Operating cash flow for the quarter was $35.2 million.

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