Hecla Reports Robust Third Quarter Results

COEUR D'ALENE, ID - Hecla Mining Company (reported increased income, gross profit and cash flow for the third quarter of 2007 compared to the same quarter a year ago. Hecla recorded income applicable to common shareholders of $12.4 million for the third quarter of 2007 compared to $0.9 million in the same quarter a year ago. Total gross profit increased 46% to $21 million in the third quarter compared to the same period of 2006. Net cash provided by operating activities before exploration and pre-development expenses rose to $28 million in the third quarter, a 45% increase over the same period a year ago.

Hecla Mining Company President and Chief Executive Officer, Phillips S. Baker, Jr., said, "This quarter Hecla continued to build on its world-class silver operations and exploration potential. Not only was the quarter better than last year, but it also continued the profitability and cash generation of our silver business that began in 2001. This is the seventh straight quarter that the silver operations' gross profit was greater than $10 million. And, with by-product credits, our average silver cash costs per ounce hit yet another record low in the third quarter at negative $4.91 per ounce. We believe Hecla is in the best position in its history to grow."

The Lucky Friday silver operation in northern Idaho's Silver Valley, owned and operated by Hecla for nearly 50 years, continues to be a flagship operation with 2.3 million ounces of silver produced during the first nine months of the year at a total average cash cost of negative 28 cents per ounce. In the third quarter alone, Lucky Friday produced 661,511 ounces of silver at a record low average cash cost of negative $2.38 per ounce, a 161% improvement compared to the third quarter of last year. So far this year, Lucky Friday has provided $30.1 million in gross profit, primarily a result of higher average silver and lead prices, as well as increased silver and zinc production during the first nine months of the year compared to the same period last year. Increased productivity and lower underground transportation costs have also contributed to the improved total cash cost per ounce. Upgrades to the mill completed in 2006 have allowed for operating efficiencies which resulted in an increase in ore milled during the first nine months of 2007 compared to the first nine months of 2006. Baker said, "All mining companies have experienced tremendous pressure on costs, but our ability to lower costs per ton reflects the increased utilization of our infrastructure and the innovation and productivity of our workforce."

The Lucky Friday mine currently has 117 million ounces of silver resource, almost as much as has been mined in its entire 60-year history of operation. Baker said, "We are continuing to grow our reserve and resource base at depth at Lucky Friday. We now know the mineralization extends to at least 8,000 feet below the surface, which is a full 2,000 feet deeper than where we are currently mining. To take advantage of this continuing mineralization, we are analyzing a plan for development of an internal shaft, or winze, that will have the capability of reaching those depths." Engineering work is underway on the shaft, and preparatory work for the construction of the new shaft could commence in early 2008. Actual shaft excavation could begin by the end of 2008, and could be completed as early as 2012. A new shaft would also provide deeper access to explore for additional silver reserves and resources.

Baker said, "With the large and growing silver resource at Lucky Friday, our focus has been on how to increase production." A scoping study was completed in early 2007, and based on those results, a pre-feasibility study is underway to determine whether it is possible to expand production from the Lucky Friday orebody. The scope of the study involves resource delineation, a look at different mining methods, an expanded production rate, the new internal shaft and another shaft to the surface, ventilation, and preliminary design for a new mill and general infrastructure upgrades. The study is scheduled for completion in the third quarter of 2008.

The Greens Creek mine near Juneau, Alaska, in which Hecla holds a 29.73% interest with a subsidiary of Rio Tinto, produced 2.1 million ounces for Hecla's account during the first nine months of the year, at an extremely low total cash cost per ounce of negative $5.15. During the third quarter of 2007, Hecla's share of Greens Creek production was 679,884 ounces of silver at an average total cash cost of negative $7.42 per ounce. The 148% and 184% improvements in cash costs per ounce for the nine month and third quarter periods compared to last year are attributable primarily to increased by-product credits because of the higher prices of zinc, lead and gold. These credits more than offset increased costs from higher diesel prices and the use of contract labor to compensate for a shortage of qualified miners. In the first nine months of the year, Greens Creek provided $30.6 million in gross profit for Hecla's account. In September, Greens Creek set a record for the largest monthly ore concentrate shipment in its history, the result of unusual timing between mining and shipping schedules which is unlikely to be repeated in the fourth quarter.

The La Camorra unit in Venezuela comprises Hecla's gold operation. In the first nine months of the year, La Camorra produced 70,649 ounces of gold at an average total cash cost per ounce of $521. During the third quarter of 2007, the unit produced 17,624 ounces of gold at an average total cash cost of $538 per ounce, generated good cash flow and broke about even on an income basis. A reduction in gross profit at La Camorra in the third quarter compared to the same period in 2006 primarily resulted from increased costs for labor and supplies, as well as higher transportation costs per ounce, because all mining is now occurring at the Mina Isidora deposit with the ore trucked to the La Camorra mill about 70 miles away.

During the third quarter, Hecla spent $5.4 million on exploration at the company's properties in Idaho, Mexico, Alaska and Venezuela. The quarter's efforts included 69,433 feet of surface and underground exploration drilling completed in total at all properties. There was also another 41,161 feet of underground definition, pre-production and in-stope drilling completed in the third quarter to further define mineralization at Lucky Friday and on the 5250, NNW and 9A Zones at Greens Creek.

The company's address is 6500 N. Mineral Drive, Suite 200, Coeur d'Alene, ID 83815-9408, 208.769.4100, fax: 208.769.7612, email: [email protected].