10% silver production growth in 2022; Expect 18% growth in 2023 and 35% by 2025; Silver cost guidance achieved with 2023 set at similar levels

Hecla Mining Company (NYSE:HL) today announced fourth quarter and full-year 2022 financial and operating results.

ANNUAL HIGHLIGHTS

Strategic

• Completed the acquisition of Alexco Resource Corp., adding nearly 50 million ounces of silver reserves; highest-grade and largest primary silver reserves in Canada.

Operational

• Record silver reserves of 241 million ounces, gold reserves of 2.6 million ounces.
• Produced 14.2 million ounces of silver, Hecla's second highest, and 175,807 ounces of gold.
• Record lead production of 49 thousand tons and zinc production of 65 thousand tons.
• Achieved silver cost guidance with total silver cost of sales of $349.3 million and all-in sustaining cost after by-product credits ("AISC") of $11.25 per silver ounce.⁴
• Increased Lucky Friday silver production by 24% to 4.4 million ounces using the Underhand Closed Bench (UCB) mining method.
• Achieved record mill throughput milestones at all three operations.

Financial

• Reported sales of $718.9 million with almost 70% from Greens Creek and Lucky Friday.
• Net loss applicable to common stockholders of $37.9 million or $0.07 per share, and adjusted net income of $27.8 million or $0.05 per share.⁵
• Adjusted EBITDA of $217.5 million, net debt to adjusted EBITDA ratio of 1.9.¹
• Strong balance sheet with $104.7 million in cash and cash equivalents with approximately $245 million in available liquidity.
• Dividends of $12.9 million, or 14% of cash flow from operations.

Environmental, Social, Governance

• Strong safety performance with an All-Injury Frequency Rate of 1.22, which equals prior Company record and is 42% below the U.S. average.
• The San Sebastian mine received the 2022 Environmental and Sustainability Excellence Award given by AEMA.
• Lucky Friday received the SME Murray Innovation Award for 2023 for the pioneering UCB mining method.
• Ratified a 6-year contract agreement with the Union at the Lucky Friday.

“Hecla is the world’s fastest growing established silver company,” said Phillips S. Baker Jr., President and CEO. “This growth has been built on the strong foundation of Greens Creek, the United States’ largest silver mine, and the Lucky Friday, a mine in production for 80 years whose throughput this year was the most in its history. Added to these growing mines is Keno Hill, one of the world’s highest grade silver mines, which we expect to be in production in the second half of this year."

Baker continued, “In 2022, we achieved our largest silver reserves and second highest silver production in our history, and expect to set new records in 2023 and 2024. If our growth continues as expected, Hecla would produce not only 40% of all the silver mined in the US, but also 40% of all silver mined in Canada. In 2022, we had among the best silver margins in the industry with AISC a little more than half of our realized silver price allowing us to maintain a strong balance sheet even after significant investment in the Lucky Friday and Keno Hill. We expect silver AISC in 2023 to be about the same as 2022 despite inflationary pressures and increased investment in all our mines. With our largest silver reserves, our growing production in Canada and the US, and strong silver margins, we believe our shareholders are well-positioned for higher silver prices as the transition to renewables increases the need for silver as an energy metal."

FINANCIAL OVERVIEW

In the following table and throughout this release, "total cost of sales" is comprised of cost of sales and other direct production costs and depreciation, depletion and amortization.

Loss applicable to common stockholders decreased to $4.6 million in the fourth quarter 2022 from $23.7 million in the third quarter due to:

• Increased gross profit of $16.6 million due to higher revenues arising from deferred silver concentrate shipments from Greens Creek and Lucky Friday to the fourth quarter, higher realized prices and production partially offset by higher cost of sales.
• Exploration and pre-development expense decreased by $8.2 million due to the completion of seasonal exploration programs in the prior quarter.

The above items were partially offset by:

• Increase in general and administrative expenses of $3.4 million due to higher incentive compensation accruals and a full quarter of additional staffing as a result of the Alexco acquisition.
• Increase of $2.9 million in provision for closed operations reflecting updated costs for Troy mine reclamation.
• Higher ramp-up and suspension costs of $2.5 million related to the Keno Hill ramp-up.

Consolidated silver cost of sales in 2022 increased 12% to $349.3 million from the prior year due to higher labor costs including contractor costs, and inflationary pressures for fuel, consumables, ground support and other inputs. Cash costs and AISC per silver ounce, each after by-product credits, were $2.06 and $11.25, respectively.^3,4 The increase in cash costs and AISC per silver ounce was due to higher cost of sales, and increased sustaining capital, partially offset by higher by-product credits due to higher by-products and silver production.^3,4

Consolidated gold cost of sales decreased by 9% to $253.0 million primarily due to Nevada operations were being on care and maintenance. Cash costs and AISC per gold ounce, each after by-product credits, were $1,478 and $1,825, respectively.^3,4 The increase in total cash costs was due to higher labor, contractor costs, and inflation in diesel, reagents, and other key inputs as well as lower gold production with AISC also impacted by higher sustaining capital.

Loss applicable to common stockholders was $37.9 million in 2022 compared to net income of $34.5 million in 2021 with decrease in profitability attributable to:

• Lower sales of $88.6 million due to lower gold production and lower metal prices for silver, lead, and zinc, partially offset by higher silver, lead and zinc production.
• Lower gross profit due to lower sales and higher production costs.
• Higher general and administrative expenses of $8.8 million due to higher incentive compensation accruals, compensation increases effective July 1, and additional staffing as a result of the Alexco acquisition.
• A decrease in income tax benefit of $22.0 million

The above items were partially offset by:

• Decrease in exploration and pre-development expense of $1.9 million.
• Fair value adjustments that resulted in a loss of $4.7 million in 2022 compared to a loss of $35.8 million in 2021 as result of lower realized and unrealized losses on derivatives and investments.
• Decrease in provision for closed operations and environmental matters of $5.8 million.

Adjusted EBITDA for the year was $217.5 million and decreased by $61.3 million over the prior year primarily due to lower revenues and higher production costs amidst inflationary pressures. The ratio of Net debt to adjusted EBITDA increased to 1.9 due to lower Adjusted EBITDA and use of cash as the Company invested in development of the Keno Hill mine.¹

Cash provided by operating activities was $89.9 million for 2022 and decreased $130.5 million year over year due to lower net income and unfavorable working capital changes. When compared to the third quarter, cash provided by operating activities increased by $60.4 million due to increased gross margin and monetization of zinc hedges.

Capital expenditures, net of leases, totaled $149.4 million in 2022 compared to $109.0 million in 2021. The increase was due to higher capital spend at Lucky Friday, as the Company invested in the infrastructure necessary to increase throughput, sustaining expenditures at Greens Creek, and development capital at the Keno Hill partially offset by lower spend at Casa Berardi. Fourth quarter capital expenditures totaled $56.1 million, including $12.2 million at Greens Creek, $13.0 million at Casa Berardi, $13.7 million at Lucky Friday, and $16.1 million at Keno Hill.

Free cash flow for the year was negative $59.5 million, a decrease of $170.8 million over the prior year due to lower revenues, higher production costs, higher capital spend at Lucky Friday and Greens Creek, and investment in the Keno Hill development. Free cash flow for the fourth quarter was negative $20.0 million and increased by $41.7 million over the prior quarter primarily due to higher cash flow from operations partially offset by higher capital spend.²

Forward Sales Contracts for Base Metals and Foreign Currency

The Company uses financially settled forward sales contracts to manage exposures to changes in prices of zinc and lead. At December 31, 2022, the Company had contracts covering approximately 36% of the forecasted payable zinc production for 2023 at an average price of $1.34 per pound, and 40% of the forecasted payable lead production (through 2024) at an average price of $0.99 per pound. In the fourth quarter, the Company monetized zinc hedges for cash proceeds of approximately $17.0 million.

The Company also manages CAD exposure through forward contracts. At December 31, 2022, the Company had hedged approximately 46% of forecasted CAD direct production costs for Casa Berardi through 2026 at an average CAD/USD rate of 1.31. The Company has also hedged approximately 34% of capital costs for Casa Berardi for 2023 at 1.33. At Keno Hill, 74% of the planned spend for 2023 is hedged at an average CAD/USD rate of 1.38.

OPERATIONS OVERVIEW

Greens Creek Mine - Alaska

Greens Creek produced 9.7 million ounces of silver in 2022, an increase of 5% over the prior year achieving record mill throughput.

Fourth quarter sales were $95.4 million, and increased $34.5 million over the third quarter due to higher realized prices, increased by-product production and the favorable impact of a deferred silver concentrate shipment from the third quarter resulting in higher metals sold. Cost of sales for the quarter were $70.1 million, an increase of $17.6 million over the prior quarter with the increase attributable to higher costs related to higher volumes of metals sold and higher fuel and consumables costs. Cash costs and AISC per silver ounce, each after by-product credits, were $4.26 and $9.04 and increased quarter over quarter due to higher treatment and freight costs due to higher concentrate quantities shipped, and higher costs related to fuel and consumables as the mill achieved record throughput.^3,4 Cash flow from operations increased by $37.0 million over the prior quarter due to increased sales and lower exploration spend partially offset by higher costs. Free cash flow for the fourth quarter was $33.7 million, an increase of $29.1 million over the prior quarter due to higher cash flow from operations partially offset by higher capital spend.²

2022 sales were $335.1 million, a decrease of $49.8 million compared to 2021 due to lower realized silver prices partially offset by higher silver and gold production. Cost of sales increased to $232.7 million compared to $213.1 million in 2021 due to higher labor and contractor costs due to record tons mined, inflationary pressures for fuel, reagents and other inputs, and higher volumes of consumables as the mill achieved record throughput in 2022. Cash costs and AISC per silver ounce (each after by-product credits) were $0.70 and $5.77, respectively, increasing year over year due to the reasons outlined above, partially offset by higher by-product credits.^3,4 The increase in AISC was also impacted by higher exploration and sustaining capital spend during the year. Cash flow from operations for the year was $150.6 million, and decreased by $58.1 million over the prior year due to lower revenues and higher production costs. Free cash flow generation for the year was $119.6 million and declined by $69.8 million over the prior year due to lower cash flow from operations and higher planned capital spend.²

Lucky Friday Mine - Idaho

Lucky Friday produced 4.4 million ounces of silver, an increase of 24% over the prior year due to record throughput, and higher mined grades. Silver production for the fourth quarter was 1.2 million ounces, an increase of 14% over the prior quarter due to higher grades mined.

Fourth quarter sales were $45.4 million, an increase of $17.0 million over the prior quarter due to increased production, higher realized prices, and the sale of the silver concentrate shipment which was deferred from the third quarter. Cost of sales were $32.8 million and increased $8.7 million over the prior quarter due to costs associated with the deferred silver concentrate shipment inventoried in the third quarter, and higher labor costs as the mine continued to fill key positions. Cash costs after by-product credits per silver ounce were $5.81 and increased over the prior quarter due to higher labor costs and higher treatment and freight costs resulting from higher concentrate sales, partially offset by higher by-product credits and higher silver production. AISC after by-product credits per silver ounce was $12.88 and decreased over the prior quarter as the factors affecting cash cost per ounce were offset by lower capital spend in the fourth quarter.^3,4 Cash flow from operations was negative $7.4 million, a decrease of $19.1 million over the prior quarter due to unfavorable working capital changes and receipt of $6.7 million related to the deferred silver concentrate shipment received in January 2023. Free cash flow was negative $21.2 million and decreased over the prior quarter primarily due to decreased cash flow from operations partially offset by lower capital spend.²

2022 sales were $147.8 million, an increase of $16.3 million over 2021 as higher metal production offset lower realized prices and higher treatment costs due to increased concentrate production. Cost of sales increased to $116.6 million compared to $97.5 million in 2021 reflecting higher costs related to increased tons mined and milled, as well as inflationary pressures for fuel, reagents and other input costs realized during the year. Cash costs and AISC per silver ounce, each after by-product credits, were $5.06 and $12.86, respectively, decreasing year over year due to higher production and by-product credits partially offset by higher costs and capital spend. ^3,4 Cash flow from operations for the year was $37.8 million, a decrease of $24.8 million over the prior year due to higher production costs and unfavorable working capital changes. Free cash flow was negative $13.2 million due to lower cash flow from operations and increased capital spend for the year.²

Casa Berardi - Quebec

Casa Berardi produced 127,590 and 30,709 ounces of gold in 2022 and the fourth quarter, respectively. Gold production for the year decreased by 5% compared to last year due to a 12% decrease in overall gold grade, partially offset by a 4% increase in tonnage and a 3% increase in mill recoveries. The lower grade was due to a higher ratio of lower grade ore sourced from the open pits. The mill continued to perform well, achieving record throughput of 4,468 tons per day (tpd) in the fourth quarter of 2022.

Full year 2022 cost of sales was $248.9 million, an increase of $19.1 million over the prior year due to inflationary pressures and increased labor, consumables, and contractor costs. Cash costs and AISC per ounce, each after by-product credits, were $1,478 and $1,825, respectively.^3,4 The year over year increase in cash costs and AISC per gold ounce was due to higher production costs and lower gold production in 2022, and AISC per ounce was also impacted by higher sustaining capital and higher exploration spending.^3,4

Cash flow from operations for the year was $34.4 million and decreased year over year due a combination of lower production and higher operating costs. Free cash flow for the year was $3.0 million compared to $33.7 million in 2021.²

Keno Hill - Yukon Territory

At Keno Hill, production is expected to commence in the third quarter 2023 with a phased ramp up projected to reach 440 tpd by the end of the year. Anticipated silver production for the year is 2.5-3 million ounces expected from the Bermingham and Flame & Moth deposits. As of the end of January 2023, approximately 40% of development required to achieve full production was completed. Capital spending to bring the mine to full production is estimated to be $35-$40 million in 2023. Some key capital projects underway include camp expansion, mill improvements and engineering, and other surface capital infrastructure projects.

EXPLORATION AND PRE-DEVELOPMENT

Exploration and pre-development expenses totaled $6.9 million for the fourth quarter and $46.0 million for the full year. Exploration activities during the fourth quarter focused on targets at Keno Hill, Casa Berardi, and Greens Creek.

For the year ended 2022, the Company reported the highest silver reserves of more than 240 million ounces, an increase of 21% over 2021. The increase was primarily due to the acquisition of Keno Hill in Canada's Yukon territory. Gold reserves declined 6% to 2.6 million ounces compared to 2021 due to cost increases which increased the cut-off grade at Casa Berardi. A breakdown of the Company's reserves and resources is located in Table A at the end of this news release.

For further details on Company's 2022 exploration and pre-development program and 2023 planned expenditures as well as reserves and resources at year-end 2022, please refer to the news release entitled "Hecla Reports Highest Silver Reserves in Company History" released on February 14, 2023.

2023 ESTIMATES⁶

The Company is providing a three-year production outlook and 2023 estimates of costs, capital and exploration and pre-development expenses.

2023 - 2025 Production Outlook

Production guidance for 2023-2025 includes expected production from Keno Hill. Consolidated silver production is expected to increase over the three years to reach 18.5-20 million ounces by 2025. Consolidated gold production is expected to decrease to 160-170 thousand ounces in 2023 primarily due to Casa Berardi as an increase in the underground cut-off grade will lower gold production and reduce lower margin material and lower contractor costs.

Casa Berardi's production is expected to be lower in the first half of 2023 and increase in the latter half of the year. Cash costs and AISC, each after by-product credits, per gold ounce are expected to be higher in the first half and trend lower in the second half of the year.

*Equivalent ounces include lead and zinc production

2023 Cost Outlook

2023 Capital and Exploration Outlook

Capital spending in 2023 is expected to increase due to higher spending at Casa Berardi and Greens Creek, as well as development and infrastructure projects at Keno Hill. Casa Berardi's increased capital spending is primarily due to the expansion of tailings facility. Greens Creek's projected higher capital spend is due to additional equipment purchases as the mine targets throughput of 2,600 tons per day, and increased capital development.

DIVIDENDS

Common Stock

The Board of Directors declared a quarterly cash dividend of $0.00625 per share of common stock, consisting of $0.00375 per share for the minimum dividend component and $0.0025 per share for the silver-linked component. The common stock dividend is payable on or about March 24, 2023, to stockholders of record on March 9, 2023. The realized silver price was $22.03 in the fourth quarter, satisfying the criterion for the silver-linked component under the Company's common stock dividend policy.

Preferred Stock

The Board of Directors elected to declare a quarterly cash dividend of $0.875 per share of preferred stock, payable on or about April 3, 2023, to stockholders of record on March 15, 2023.

CONFERENCE CALL AND WEBCAST

A conference call and webcast will be held Wednesday, February 15, at 10:00 a.m. Eastern Time to discuss these results. We recommend that you dial in at least 10 minutes before the call commencement. You may join the conference call by dialing toll-free 1-888-330-2391 or for international dialing 1-240-789-2702. The Conference ID is 4812168 and must be provided when dialing in. Hecla's live and archived webcast can be accessed at https://events.q4inc.com/attendee/180188973 or www.hecla-mining.com under Investors.

VIRTUAL INVESTOR EVENT

Hecla will be holding a Virtual Investor Event on Wednesday, February 15, from 12:00 p.m. to 2:00 p.m. Eastern Time.

Hecla invites shareholders, investors, and other interested parties to schedule a personal, 30-minute virtual meeting (video or telephone) with a member of senior management to discuss Financials, Exploration, Operations, ESG or general matters. Click on the link below to schedule a call (or copy and paste the link into your web browser). You can select a topic once you have entered the meeting calendar. If you are unable to book a time, either due to high demand or for other reasons, please reach out to Anvita M. Patil, Vice President, Investor Relations and Treasurer at hmc-info@hecla-mining.com or 208-769-4100.

One-on-One meeting URL: https://calendly.com/2023-february-vie

ABOUT HECLA

Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest silver producer in the United States. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the Company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America.

NOTES

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by United States generally accepted accounting principles (GAAP). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The non-GAAP financial measures cited in this release and listed below are reconciled to their most comparable GAAP measure at the end of this release.

⁽¹⁾ Adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to net income, the most comparable GAAP measure, can be found at the end of the release. Adjusted EBITDA is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income, or cash provided by operating activities as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Net debt to adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to debt and net income (loss), the most comparable GAAP measurements, can be found at the end of the release. It is an important measure for management to measure relative indebtedness and the ability to service the debt relative to its peers. It is calculated as total debt outstanding less total cash on hand divided by adjusted EBITDA.

⁽²⁾ Free cash flow is a non-GAAP measure calculated as cash provided by operating activities less additions to properties, plants and equipment. Cash provided by operating activities for the Greens Creek, Lucky Friday, Casa Berardi, and Nevada operating segments excludes exploration and pre-development expense, as it is a discretionary expenditure and not a component of the mines’ operating performance.

⁽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 (sometimes referred to as "cost of sales" in this release), can be found at the end of the release. It is an important operating statistic that management utilizes to measure each mine's operating performance. It also allows the benchmarking of performance of each mine versus those of our competitors. As a primary silver mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines - to compare performance with that of other silver mining companies, and aggregating Casa Berardi and the Nevada operations, to compare its performance with other gold mining companies. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Cash cost, after by-product credits, per silver ounce is not presented for Lucky Friday for the first nine-months of 2020, as production was limited due to the strike and subsequent ramp-up and results are not comparable to those from prior periods and are not indicative of future operating results under full production.

⁽⁴⁾ All-in sustaining cost (AISC), after by-product credits, is a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization, the closest GAAP measurement, can be found in the end of the release. AISC, after by-product credits, includes cost of sales and other direct production costs, expenses for reclamation and exploration at the mines sites, corporate exploration related to sustaining operations, and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits.

⁽⁵⁾ Adjusted net income (loss) applicable to common stockholders is a non-GAAP measurement, a reconciliation of which to net income (loss) applicable to common stockholders, the most comparable GAAP measure, can be found at the end of the release. Adjusted net income (loss) is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income (loss) as defined by GAAP. They exclude certain impacts which are of a nature which we believe are not reflective of our underlying performance. Management believes that adjusted net income (loss) per common share provides investors with the ability to better evaluate our underlying operating performance.

Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Management believes that all-in sustaining costs is a non-GAAP measure that provides additional information to management, investors and analysts to help (i) in the understanding of the economics of our operations and performance compared to other producers and (ii) in the transparency by better defining the total costs associated with production. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program.

Other

⁽⁶⁾ Expectations for 2023 include silver, gold, lead and zinc production from Greens Creek, Lucky Friday, Keno Hill, and Casa Berardi converted using Au $1,800/oz, Ag $22/oz, Zn $1.15/lb, and Pb 0.90$/lb, CAD/USD 1.30. Numbers may be rounded.

Cautionary Statement Regarding Forward-Looking Statements, Including 2023 Outlook

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws, including 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 may include, without limitation: (i) increased demand for silver due to transition to clean energy; (ii) Keno Hill will be in production in the second half of the year with ramp-up to 440 tons per day by the end of 2023; (iii) the Company will set new production records in 2023 and 2024; (iv) Casa Berardi's costs will trend lower in the second half of 2023; and; (v) mine-specific and Company-wide 2023 estimates of future production (for 2024 and 2025), sales and costs of sales, as well as cash cost and AISC per ounce (in each case after by-product credits) and Company-wide estimated spending on capital, exploration and pre-development for 2023. 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.

Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect, which could cause actual results to differ from forward-looking statements. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD and USD/MXN, being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) there being no significant changes to Company plans for 2023 and beyond due to COVID-19 or any other public health issue, including, but not limited to with respect to availability of employees, vendors and equipment; (ix) 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; (x) counterparties performing their obligations under hedging instruments and put option contracts; (xi) sufficient workforce is available and trained to perform assigned tasks; (xii) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xiii) relations with interested parties, including First Nations and Native Americans, remain productive; (xiv) maintaining availability of water rights; (xv) factors do not arise that reduce available cash balances; and (xvi) there being no material increases in our current requirements to post or maintain reclamation and performance bonds or collateral related thereto.

In addition, material risks that could cause actual results to differ from forward-looking statements include, but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating risks; (iii) currency fluctuations; (iv) increased production costs and variances in ore grade or recovery rates from those assumed in mining plans; (v) community relations; (vi) conflict resolution and outcome of projects or oppositions; (vii) litigation, political, regulatory, labor and environmental risks; (viii) exploration risks and results, including that mineral resources are not mineral reserves, they do not have demonstrated economic viability and there is no certainty that they can be upgraded to mineral reserves through continued exploration; (ix) the failure of counterparties to perform their obligations under hedging instruments; (x) we take a material impairment charge on any of our assets; and (xi) inflation causes our costs to rise more than we currently expect. For a more detailed discussion of such risks and other factors, see the Company’s (i) 2021 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (SEC) on February 23, 2022, and (ii) other SEC filings, including its Quarterly Report on Form 10-Q filed with the SEC on August 5, 2022 and 2022 Form 10-K expected to be filed with the SEC by March 1, 2023. The Company does not undertake any obligation to release publicly, revisions to any “forward-looking statement,” including, without limitation, outlook, to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors’ own risk.

Qualified Person (QP)

Kurt D. Allen, MSc., CPG, VP - Exploration of Hecla Mining Company and Keith Blair, MSc., CPG, Chief Geologist of Hecla Limited, who serve as a Qualified Person under S-K 1300 and NI 43-101, supervised the preparation of the scientific and technical information concerning Hecla’s mineral projects in this news release. Technical Report Summaries (each a “TRS”) for each of the Company’s material properties are filed as exhibits 96.1, 96.2 and 96.3 to the Company’s Form 10-K for the year ended December 31, 2022 and are incorporated by reference into the Company’s Form 10-K, expected to be filed with the SEC on February 15, 2023, and are available at www.sec.gov. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of analytical or testing procedures for (i) the Greens Creek Mine are contained in its TRS and in a NI 43-101 technical report titled “Technical Report for the Greens Creek Mine” effective date December 31, 2018, (ii) the Lucky Friday Mine are contained in its TRS and in its technical report titled “Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA” effective date April 2, 2014, (iii) Casa Berardi are contained in its TRS and in its technical report titled “Technical Report on the mineral resource and mineral reserve estimate for Casa Berardi Mine, Northwestern Quebec, Canada” effective date December 31, 2018, and (iv) the San Sebastian Mine, Mexico, 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 each TRS and the 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 and 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 are contained in technical reports prepared for Alexco Resource Corp. (“Alexco”) for Keno Hill (technical report dated April 1, 2021) and for Klondex Mines Ltd. for (i) the Fire Creek Mine (technical report dated March 31, 2018), (ii) the Hollister Mine (technical report dated May 31, 2017, amended August 9, 2017), and (iii) the Midas Mine (technical report dated August 31, 2014, amended April 2, 2015). Copies of these technical reports are available under Hecla’s profile on SEDAR, and in the case of Keno Hill, under Alexco’s profile, each at www.sedar.com. Mr. Allen and Mr. Blair reviewed and verified information regarding drill sampling, data verification of all digitally collected data, drill surveys and specific gravity determinations relating to all the mines. 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.