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 Hecla Reports Fourth Quarter and Year 2016 Results
   Thursday, February 23, 2017 3:00:04 AM ET

Hecla Mining Company (HL ) today announced fourth quarter and year end 2016 financial and operating results.

                                                                                                                                                           
                                                                                                        FOURTH QUARTER AND FULL YEAR 2016 HIGHLIGHTS
                                                                                                                                                                                                                                         
                                             Q4 2016                      Q4/16 vs. Q4/15                       2016                         2016 vs. 2015
-------------------------------------------- -------------------- ------------------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------- --------------------
Net income applicable to common shareholders    $20.1 M   $0.05/share          132%            $69.0 M   $0.18/share          179%
-------------------------------------------- -------------------- ------- -------------------- ----------- -------------------- -------------------- -------------------- ------- -------------------- ----------- -------------------- --------------------
Adjusted net income(1)                          $11.2 M   $0.03/share           34%            $60.7 M   $0.16/share          277%
-------------------------------------------- -------------------- ------- -------------------- ----------- -------------------- -------------------- -------------------- ------- -------------------- ----------- -------------------- --------------------
Sales                                                          $164.2 M                            42%                           $646.0 M                            46%
-------------------------------------------- -------------------- ------------------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------- --------------------
Cash provided by operating activities                           $52.1 M                            90%                           $225.3 M                           111%
-------------------------------------------- -------------------- ------------------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------- --------------------
Adjusted EBITDA(2)                                              $65.1 M                            89%                           $264.6 M                           127%
-------------------------------------------- -------------------- ------------------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------- --------------------
Net debt/adjusted EBITDA(2,5)                                                                1.2X                             (61)%
-------------------------------------------- -------------------- ------------------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------- --------------------
Free cash flow (3)                                              $7.7 M                            152%                            $44.5 M                           243%
-------------------------------------------- -------------------- ------------------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------- --------------------
Cash and cash eq. & short term investments                     $198.9 M                            28%                           $198.9 M                            28%
-------------------------------------------- -------------------- ------------------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------- --------------------
Silver production                                              3.98 M oz                           9%                            17.2 M oz                           48%
-------------------------------------------- -------------------- ------------------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------- --------------------
Gold production                                                63.2 K oz                           5%                           233.9 K oz                           24%
-------------------------------------------- -------------------- ------------------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------- --------------------
Silver equivalent production(4)                                12.1 M oz                          108%                           46.1 M oz                          123%
-------------------------------------------- -------------------- ------------------------------------------------------------- -------------------- -------------------- ------------------------------------------------------------- --------------------
                                                                                                                                                                                                                                         


-- San Sebastian produced 4.3 million ounces of silver and 34,042 ounces of gold, generating $93.9 million of cash provided by operating activities with only $1.5 million of capital.

-- East Mine Crown Pillar (EMCP) pit at Casa Berardi fully operational, increasing mill throughput and gold production.

-- First hardrock mining company to receive independent certification under CORESafety.

-- Maintained proven and probable silver reserve levels despite record silver production, lowered exploration budget and $14.50/oz silver used for calculation, among the lowest in industry.

-- Acquired the Montanore Project, a large silver-copper development asset in Montana.

-- Estimated 2017 silver equivalent production of 46.5-49.4 million ounces (or gold equivalent production of 655,000-696,000 ounces), higher than 2016’s record production.(10)

"We finished 2016 strongly, with record silver and silver equivalent production for the year and robust performance at all our mines driving record sales, strong net income and more than doubling adjusted EBITDA over last year," said Phillips S. Baker, Jr., Hecla’s President and CEO. "And despite using one of the most conservative price assumptions in the industry, we almost completely replaced the silver reserves that were mined, a very satisfying achievement considering our record silver production levels and lowest exploration budget since 2009."

"Looking to 2017, we estimate our silver equivalent production will be higher than the record we set in 2016, benefiting from higher metals prices and strong performance from our mines. We expect the grade at Greens Creek to revert towards its silver resource grade, and San Sebastian to generate strong cash flow as we extend the mine life by beginning underground mining later this year. And while our silver cost of sales is estimated to increase to $358 million in 2017, our cash cost, after by-product credits is estimated to be $2.75 per silver ounce, down from $3.10 in 2016 and our all in sustaining cost (AISC), after by-product credits, is estimated to be $11.50 per silver ounce," Mr. Baker continued.

SILVER AND GOLD RESERVE SUMMARY

Hecla ended the year with proven and probable silver reserves of 172 million ounces, a decrease of 2% over December 31, 2015 levels using a price assumption of $14.50/oz that is unchanged from last year and is among the lowest in the industry. Proven and probable gold reserves of 2.0 million ounces decreased by 3% over December 31, 2015 levels using an assumption of $1,200/oz, a 9% increase from last year’s $1,100/oz assumption.

Please refer to the reserves and resources table at the end of this press release, or to the press release entitled "Hecla Reports Silver Reserves of 172 Million Ounces and Gold Reserves of 2.0 Million Ounces", issued on February 22, 2017 for the breakdown between proven and probable reserve and resource levels as well as a detailed summary of the Company’s exploration programs.

                                                                                                                        
                                                                                                             FINANCIAL OVERVIEW
                                                                                                                                                                
                                                                                                Fourth Quarter Ended                                                                         Twelve Months Ended
                                                                           ---------------------------------------------------------------                     ------------------------------------------------------------------------------
HIGHLIGHTS                                                  December 31,           December 31,                              December 31,                   December 31,
                                                                                   2016                                      2015                                      2016                                              2015
----------------------------------------------------- -------------------- ------------------   -------------------- ------------------                        ------------------   -------------------- ---------------------------------
FINANCIAL DATA                                                                          
----------------------------------------------------- -------------------- ----------------------------------------- ---------------------                     ----------------------------------------- ------------------------------------
Sales (000)                                                                     $ 164,245              $ 115,337                                 $ 645,957              $ 443,567
Gross profit (000)                                                              $  43,548                                 $  11,735                                 $ 191,506                                 $  38,511
Income (loss) applicable to common stockholders (000)                           $  20,124                                 $ (63,101 )                               $  68,995                                 $ (87,520 )
Basic and diluted income (loss) per common share                                $    0.05                                 $   (0.17 )                               $    0.18                                 $   (0.23 )
Net income (loss) (000)                                                         $  20,262                                 $ (62,963 )                               $  69,547                                 $ (86,968 )
Cash provided by operating activities (000)                                     $  52,214                                 $  27,477                                 $ 225,328                                 $ 106,445
                                                                                                                                                                                                                         

Net income applicable to common stockholders for the fourth quarter and full year of 2016, respectively, was $20.1 million and $69.0 million, or $0.05 and $0.18 per basic share, respectively, compared to net losses of $63.1 million and $87.5 million, or $0.17 and $0.23 per basic share, respectively, for the fourth quarter and full year of 2015. Among items impacting the results for the 2016 periods compared to 2015 were the following:

-- Sales for the fourth quarter were 42% higher than the same period of 2015. Full year 2016 sales were 46% higher than 2015, mainly due to a 48% and 24% increase in annual silver and gold production, respectively, as well as higher silver and gold prices in 2016.

-- Cost of sales and other direct production costs and depreciation, depletion and amortization ("cost of sales"), for the fourth quarter and full year 2016, of $120.7 million and $454.5 million, respectively, were higher than the fourth quarter and full year 2015 by 17%, and 12%, respectively, mainly due to San Sebastian being in commercial production.

-- Cash cost, after by-product credits, per silver ounce for the fourth quarter 2016, decreased to $1.64, or 71%, compared to the fourth quarter of 2015, and for the year decreased to $3.10, or 47%, over the prior year period, mainly due to the addition of silver production at San Sebastian and higher silver production at Greens Creek and Lucky Friday.(7)

-- Cash cost, after by-product credits, per gold ounce increased to $800, or 35% for the fourth quarter 2016 over the prior year fourth quarter period, principally due to the expensing of stripping costs for the new East Mine Crown Pillar ("EMCP") pit at Casa Berardi.(7,8)

-- A $4.8 million foreign exchange gain was recognized in the fourth quarter of 2016, compared to a $5.0 million foreign exchange gain recognized in the prior year fourth quarter, due primarily to strengthening of the Canadian dollar on deferred tax assets.

-- Income tax provisions for the fourth quarters 2016 and 2015, of $4.8 million and $60.5 million, respectively. Annual income tax provisions for 2016 and 2015 of $27.4 million and $56.3 million, respectively. The tax provision in 2015 included net increases to the Company’s valuation allowance of $54 million for the fourth quarter and $67 million for the year.

Cash provided by operating activities of $52.2 million for the fourth quarter 2016, was $24.7 million higher compared to the fourth quarter of 2015. For the year 2016, $225.3 million in cash was provided by operating activities, as compared to $106.4 million in 2015. In each case, the higher cash provided by operating activities resulted from higher production and metals prices.

Capital expenditures (excluding capitalized interest) at the operations totaled $39.0 million for the fourth quarter 2016, of which expenditures were $17.5 million at Casa Berardi, $11.8 million at Greens Creek, $9.3 million at Lucky Friday, and $0.3 million at San Sebastian. Capital expenditures (excluding capitalized interest) for the year 2016, totaled $158.0 million at the operations.

General and administrative (G&A) expenditures for the full year 2016, were $11 million higher than 2015, principally due to an accrual under the Company’s compensation plans resulting from the strong performance against annual and long term incentive goals, including cash flow, production and total shareholder return.

Metals Prices

Average realized silver prices in the fourth quarter and full year 2016 were $16.59 and $17.16 per ounce, 16% and 10% higher than the prior periods, respectively. Realized prices for gold for the fourth quarter and full year 2016 were $1,202 and $1,245 per ounce, respectively, 10% and 8% higher than the prior periods. Realized prices for lead were 2% higher and zinc 10% higher for the 2016 periods than 2015.

Base Metals Forward Sales Contracts

The following table summarizes the quantities of base metals committed under financially settled forward contracts for forecasted sales at December 31, 2016:

                                                                                                                                
                                                                                           Pounds Under                                                                                                                     Average Price per Pound
                                                                                           Contract (in
                                                                                            thousands)
                             Zinc                                  Lead                                       Zinc                                 Lead
----------------------------- -------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------- --------------------------------------------------------------- --------------------------
CONTRACTS ON FORECASTED SALES                                                                      
----------------------------- -------------------- -------------------------------------------------------- -------------------------------------------------------- -------------------- --------------------------------------------------------------- --------------------------
2017 settlements                                           35,384             17,637                                                  $           1.19              $           1.03
                                                   -------------- -------------------- -------------------- -------------- --------------------                                           ------ -------------- --------------------                      ---------- --------------
2018 settlements                                           13,779              5,732                                                  $           1.21                                 $           1.05
                                                   -------------- -------------------- -------------------- -------------- --------------------                                           ------ -------------- --------------------                      ---------- --------------
2019 settlements                                   --     --            $ --                                 $ --
                                                   -------------- -------------------- -------------------- -------------- --------------------                                           ------ -------------- --------------------                      ---------- --------------
                                                                                        

The contracts represent 18% of the forecasted payable zinc production for the three-year period 2017-2019 at an average price of $1.20 per pound and 10% of the forecasted payable lead production for the three-year period 2017-2019 at an average price of $1.04 per pound.

OPERATIONS OVERVIEW

Overview

The following table provides a summary of the production, cost of sales, cash cost, after by-product credits, per silver and gold ounce, and AISC, after by-product credits, per silver and gold ounce, for the fourth quarter and twelve months ended December 31, 2016 and 2015 (AISC for the 2016 periods only)(6):

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Fourth Quarter and Year Ended December 31, 2016                                                                                                                                                                                                                                                                                             Greens Creek                                                                              Lucky                                                                              Casa Berardi                                                                                               San Sebastian
                                                                                                                                                                                                                                                                                                                                                                                                                                                        Friday
                                                                                                                                                                                                                                                                                        --------------------------------------------------------------------------------------------------------------      -------------------- --------------------------------------------------   -------------------- --------------------------------------------------------------------------------------------------------------      -------------------- ------------------------------------------------------------------------------------------
                                                                                      Silver                               Gold                               Silver                         Gold                          Silver                               Gold                         Silver                         Silver                         Gold
-------------------------------------------------------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- --------------------
Production (ounces)                                                                       Q4                                                              3,976,552                                                                    63,150                                                                 2,232,855                                      14,415                                                                   874,019                                                                    41,693                                       9,607                                                                   860,071                                       7,042
--------------------------------------------------------------------
                                                  Year                                        17,177,317                             233,929                           9,253,543                   53,912                           3,596,010                             145,975                   33,641                           4,294,123                   34,042
-------------------------------------------------------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- --------------------
Increase/(decrease)                                                                       Q4                                                                      9                    %                                                    5                    %                                                  (13                   )%                                       (16                   )%                                                  (11                   )%                                                   (1                   )%                                         8                    %                                                  N/A                                                            N/A
                                                                     Year                                                48                    %                                24                    %                                 9                    %                    (11                   )%                                19                    %                                14                    %                     14                    %                               N/A                      N/A
-------------------------------------------------------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- --------------------
Cost of sales and other direct production costs and depreciation,                         Q4                                                 $               71,623                                                    $               49,074                                                    $               44,311                                                            N/A                                                    $               19,514                                                    $               49,074                                                            N/A                                                    $                7,798                                                            N/A
depletion and amortization (000)
--------------------------------------------------------------------
                                                  Year                                      $    298,740                        $    155,711                        $    191,297                      N/A                        $     76,210                        $    155,711                      N/A                        $     31,233                      N/A
-------------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- --------------------
Cash costs, after by-product credits, per silver or gold ounce (7,8)                      Q4                                                 $                 1.64                                                    $                  800                                                    $                 1.19                                                            N/A                                                    $                 7.50                                                    $                  800                                                            N/A                                                    $                (3.12 )                                                          N/A
                                                                     Year                                      $       3.10                        $        764                        $       3.84                      N/A                        $       8.89                        $        764                      N/A                        $      (3.35 )                                       N/A
-------------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- --------------------
AISC, after byproduct credits(6)                                                          Q4                                                 $                11.44                                                    $                1,247                                                    $                 7.03                                                            N/A                                                    $                18.51                                                    $                1,247                                                            N/A                                                    $                (0.66 )                                                          N/A
--------------------------------------------------------------------
                                                  Year                                      $      11.68                        $      1,244                        $       9.42                      N/A                        $      20.66                        $      1,244                      N/A                        $      (1.99 )                                       N/A
-------------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- --------------------
                                                                                                                                                                           
-------------------------------------------------------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- --------------------
Fourth Quarter and Year Ended December 31, 2015                                                                                                                                                                                                                                                                                             Greens Creek                                                                    Lucky                                                                     Casa Berardi                                                                                               San Sebastian
                                                                                                                                                                                                                                                                                                                                                                                                                                              Friday
                                                                                                                                                                                                                                                                                        --------------------------------------------------------------------------------------------------------------      -------------------- ------------------------------  -------------------- -------------------- --------------------------------------------------------------------------------------------------------------      -------------------- ------------------------------------------------------------------------------------------
                                                                                      Silver                               Gold                               Silver                         Gold                          Silver                               Gold                         Silver                         Silver                         Gold
-------------------------------------------------------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- --------------------
Production (ounces)                                                                       Q4                                                              3,644,310                                                                    60,350                                                                 2,568,025                                                         17,198                                                                   985,698                                                                    42,282                                                          8,910                                                                    81,677                                                            870
--------------------------------------------------------------------
                                                  Year                                        11,591,603                             189,327                           8,452,153                   60,566                           3,028,134                             127,891                   29,639                              81,677                      870
-------------------------------------------------------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- ---------------------------------------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- --------------------
Cost of sales and other direct production costs and depreciation,                         Q4                                                 $               64,441                                                    $               39,161                                                    $               48,514                                                            N/A                                                    $               15,927                                                    $               39,161                                                            N/A                                                                         0                                                            N/A
depletion and amortization (000)
--------------------------------------------------------------------
                                                                     Year                                      $    260,498                        $    144,558                        $    195,276                      N/A                        $     65,222                        $    144,558                      N/A                                   0                      N/A
-------------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------------------------------------- -------------------- --------------------
Cash costs, after by-product credits, per silver or gold ounce (7,8)                      Q4                                                 $                 5.55                                                    $                  591                                                    $                 4.18                                                            N/A                                                    $                 9.02                                                    $                  591                                                            N/A                                                    $                 6.71                                                            N/A
--------------------------------------------------------------------
                                                  Year                                      $       5.85                        $        772                        $       3.91                      N/A                        $      11.23                        $        772                      N/A                        $       6.71                      N/A
-------------------------------------------------------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

The following table provides the production summary on a consolidated basis for the fourth quarter and twelve months ended December 31, 2016 and 2015:

                                                                                                              
                                                                                                         Fourth Quarter Ended                                                                 Twelve Months Ended
                                                                                    ---------------------------------------------------------------                     ---------------------------------------------------------------
            December 31,           December 31,           December 31,           December 31,
                                                                                            2016                                      2015                                      2016                                      2015
-------------------- -------------------- -------------------- -------------------- -------------------  -------------------- -------------------  -------------------- -------------------  -------------------- --------------------
PRODUCTION SUMMARY                                                            
----------------------------------------------------------------------------------- ----------------------------------------- ----------------------------------------- ----------------------------------------- --------------------
Silver -                                  Ounces produced                            3,976,552              3,644,310                                17,177,317                       11,591,603
                                          Payable ounces sold                        3,775,003                                 2,866,156                                15,997,087                                          10,171,896
Gold -                                    Ounces produced                               63,150                                    60,350                                   233,929                                             189,327
                                          Payable ounces sold                           60,888                                    53,431                                   222,105                                             178,400
Lead -                                    Tons produced                                 10,632                                    11,439                                    42,472                                              39,965
                                          Payable tons sold                              9,139                                     9,341                                    37,519                                              33,409
Zinc -                                    Tons produced                                 18,195                                    19,036                                    68,516                                              70,073
                                          Payable tons sold                             11,854                                    13,010                                    49,802                                              49,831
                                                                                                                                                                                                                   

Greens Creek Mine - Alaska

For the fourth quarter, silver production of 2,232,855 ounces and gold production of 14,415 ounces, decreased 13.1% and 16.2%, respectively, as compared to the prior year period. Full year 2016 silver production of 9,253,543 ounces was the highest since Hecla acquired 100% of the mine in 2008, and increased over the prior full year by 9.5%, while 2016 gold production of 53,912 ounces decreased by 11.0%. The increase in silver production resulted from higher grades and higher recovery, while gold production was lower due to slightly lower ore grades. The mill operated at an average of 2,226 tons per day (tpd) in the fourth quarter and 2,229 tpd for the full year.

The cost of sales for the fourth quarter and full year 2016 was $44.3 million and $191.3 million, respectively, and the cash cost, after by-product credits, per silver ounce, for the quarter and full year of $1.19 and $3.84, respectively, decreased from $4.18 for the fourth quarter 2015, and from $3.91 for the year 2015.(7)The AISC, after by-product credits, was $7.03 per silver ounce for the fourth quarter and $9.42 for 2016.(6)

Lucky Friday Mine - Idaho

Silver production of 874,019 ounces in the fourth quarter 2016 was 11.3% lower than prior year period due to lower ore throughput. Silver production of 3,596,010 ounces for the full year 2016 exceeded estimates and increased 18.8% over 2015, mainly due to higher mill throughput, grades and recovery in 2016. The mill operated at an average of 844 tpd in the fourth quarter 2016 and 803 tpd for the full year.

The cost of sales for the fourth quarter and full year 2016 was $19.5 million and $76.2 million, respectively and the cash cost, after by-product credits, per silver ounce of $7.50 in the fourth quarter 2016, decreased from $9.02 per ounce for the fourth quarter of 2015.(7) This decrease was principally due to higher silver production as a result of mining higher-grade material. The AISC, after by-product credits, was $18.51 per silver ounce for the fourth quarter and $20.66 for 2016.(6)

The #4 Shaft Project is now complete and the shaft is operational.

Casa Berardi - Quebec

Gold production of 41,693 ounces during the fourth quarter 2016, including 5,034 ounces from the EMCP pit, was 1.4% lower than the same period of 2015 due to lower grade, underground ore throughput and mill recoveries, while 2016 gold production of 145,975 ounces, including 8,547 ounces from the EMCP pit, was higher than the prior year period by 14.1%. The mill operated at an average of 3,307 tpd in the fourth quarter 2016 and 2,725 tpd for the year. The Company has received a permit to increase production to 1,250,000 tonnes (1,378,000 tons) per year from 1,100,000 tonnes (1,213,000 tons) per year, and with minimal changes to the plant, has operated on a peak basis above 3,600 metric tpd (3,968 tpd).

The cost of sales was $49.1 million and $155.7 million, for the fourth quarter and full year 2016, an increase of 25.3% and 7.7%, respectively. The cash cost, after by-product credits, per gold ounce of $800, for the fourth quarter 2016 increased 36% over the prior year period, partly due to the expensing of stripping costs for the new EMCP pit.(7)For the full year 2016, the cash cost, after by-product credits, per gold ounce, decreased slightly to $764, from $772 for the prior year period. The AISC, after by-product credits, was $1,247 per gold ounce for the fourth quarter and $1,244 for full year 2016.(6)

San Sebastian - Mexico

Silver production for the fourth quarter 2016 was 860,071 ounces and 4,294,123 ounces for the year. Gold production for the fourth quarter 2016 was 7,042 ounces and 34,042 ounces for the year. The mill operated at an average of 375 tpd in the fourth quarter 2016 and 391 tpd for the year.

The cost of sales was $7.8 million and $31.2 million for the fourth quarter and full year 2016, respectively. The cash cost, after by-product credits, was $(3.12) per ounce in the fourth full quarter of production since reopening, and $(3.35) per ounce for the year.(7)The strong cash cost, after by-product credits, performance was due to the high silver grades and strong gold production which is used as a by-product credit. The AISC, after by-product credits, was $(0.66) for the fourth quarter and $(1.99) for 2016.(6)

The Company is working on a plan to transition from open pit to underground mining by the end of 2017. The Company has the option to extend the mill agreement for a third year (2018) and studies are underway to incorporate recent discoveries of high-grade material into an underground mine plan.

Pre-development

Pre-development spending was $1.6 million in the fourth quarter and $3.1 million for the full year 2016, principally to advance the permitting at Rock Creek and Montanore.

                                                                                        
2017 ESTIMATES(10)
 
2017 Production Outlook
                                                                                                                                                                      
      Silver Production       Gold Production      Silver Equivalent     Gold Equivalent
                                                  (Moz)                                     (Koz)                                    (Moz)                                   (Koz)
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------------- -------------------- --------------------
Greens Creek                  7.4-8.0                 54-60               22.8-23.9             322-336
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------------- -------------------- --------------------
Lucky Friday                  3.6-4.1                   8.1-8.6              114-121
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------------- -------------------- --------------------
San Sebastian                 3.0-3.4                 21-25                4.5-5.2               63-73
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------------- -------------------- --------------------
Casa Berardi                      150-165              10.7-11.8             150-165
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------------- -------------------- --------------------
 Total                       14.0-15.5               230-250              46.5-49.4             655-696
-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ----------------- -------------------- --------------------
                                                                                                                                                                      
                                                              
2017 Cost Outlook
                                                                                                                         
    Costs of Sales   Cash cost, after by-   AISC, after by-product
                                             (million)                        product credits, per                       credits, per produced
                                                                                   silver/gold                                silver/gold
                                                                                   ounce(7,8)                                  ounce(6)
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- ----------------------
Greens Creek                $228                $2.50                   $9.50
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- ----------------------
Lucky Friday                 $94                $6.00                  $12.50
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- ----------------------
San Sebastian                $36                $0.00                   $2.00
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- ----------------------
Total Silver                $358                $2.75                  $11.50
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- ----------------------
Casa Berardi                $170                $800                   $1,150
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- ----------------------
  Total Gold                $170                $800                   $1,150
-------------------- -------------------- -------------- -------------------- -------------------- -------------------- ----------------------
                                                                                                                         
                                                                 
2017 Capital and Exploration Outlook
                                                                                      
2017E capital expenditures (excluding capitalized interest)       $120-125 million
--------------------------------------------------------------- -------------------- --------------------
2017E exploration expenditures (includes corporate development)   $20-25 million
--------------------------------------------------------------- -------------------- --------------------
2017E pre-development expenditures                                $5 million
--------------------------------------------------------------- -------------------- --------------------
                                                                                      

DIVIDENDS

The Board of Directors declared a quarterly dividend of $0.0025 per share of common stock, payable on or about March 13, 2017, to shareholders of record on March 6, 2017. The Company’s realized silver price was $16.59 in the fourth quarter and therefore did not satisfy the criteria for a larger dividend under the Company’s dividend policy.

The Board of Directors also declared the regular quarterly dividend of $0.875 per share on the 157,816 outstanding shares of Series B Cumulative Convertible Preferred Stock. This represents a total amount to be paid of approximately $138,000. The cash dividend is payable April 3, 2017, to shareholders of record on March 15, 2017.

BOARD UPDATE

The Board of Directors of Hecla has appointed Catherine "Cassie" J. Boggs as a Director effective January 1, 2017. Ms. Boggs has been General Counsel at Resource Capital Funds since January 2011. Prior to that, she served as Senior Vice President, Corporate Development at Barrick Gold Corporation from January 2009 to December 2010 and Vice President from July 2005 to 2008. Ms. Boggs was also an international partner at the law firm of Baker & McKenzie from July 2001 to July 2005. She has 35 years of experience as a mining and natural resources lawyer with experience in domestic and international mining projects.

CONFERENCE CALL AND WEBCAST

A conference call and webcast will be held today, Thursday, February 23, at 10:00 a.m. Eastern Time to discuss these results. You may join the conference call by dialing toll-free 1-855-760-8158 or for international by dialing 1-720-634-2922. The participant passcode is HECLA. Hecla’s live and archived webcast can be accessed at www.hecla-mining.com under Investors or via Thomson StreetEvents Network.

ABOUT HECLA

Founded in 1891, Hecla Mining Company (HL ) is a leading low-cost U.S. silver producer with operating mines in Alaska, Idaho and Mexico, and is a growing gold producer with an operating mine in Quebec, Canada. The Company also has exploration and pre-development properties in seven 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.

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 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.

(1) Adjusted net income (loss) applicable to common stockholders represents 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), 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.

(2) Adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to net income (loss), 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 (loss), 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.

(3) Free cash flow is a non-GAAP measurement used by management to analyze cash flows generated from operations. It is calculated as cash provided by operating activities (GAAP) less additions to properties, plants equipment and mineral interests (GAAP). The Company believes free cash flow is also useful as one of the bases for comparing the Company’s performance with its competitors. Although free cash flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of free cash flow is not necessarily comparable to such other similarly titled captions of other companies. Does not include $16 million of insurance proceeds for the Troy Mine reclamation.

(4) Silver or gold equivalent production includes silver, gold, lead and zinc production from Lucky Friday, Greens Creek, San Sebastian and Casa Berardi converted using average realized prices for the quarter or year.

(5) Net debt to adjusted EBITDA is a non-GAAP measurement, a reconciliation of adjusted EBITDA and net debt to the closest GAAP measurements of net income (loss) and debt 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.

(6) 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 appendix. AISC, after by-product credits, includes cost of sales and other direct production costs, expenses for reclamation and exploration, and sustaining capital costs at the mine sites. AISC, after by-product credits for our consolidated silver properties also includes corporate costs for all general and administrative expenses, exploration and sustaining capital which support the operating properties. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits.

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 in the understanding of the economics of our operations and performance compared to other producers and in the investor’s visibility 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.

(7) Cash cost, after by-product credits, per silver and gold ounce represents 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 mines versus those of our competitors. As a primary silver mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek, Lucky Friday and San Sebastian mines - to compare performance with that of other primary silver mining companies. With regard to Casa Berardi, management uses cash cost, after by-product credits, per gold ounce to compare its performance with other gold mines. 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.

(8) Cash cost, after by-product credits, per gold ounce is only applicable to Casa Berardi production. Gold produced from Greens Creek is treated as a by-product credit against the silver cash cost.

(9) Silver or gold equivalent production includes silver, gold, lead and zinc production from Lucky Friday, Greens Creek, San Sebastian and Casa Berardi converted using the following average market prices for each period: Au $1,218/oz, Ag $17.18/oz, Zn $1.14/lb, Pb $0.98/lb for the fourth quarter and Au $1,248/oz, Ag $17.10/oz, Zn $0.95/lb, Pb $0.85/lb for the year ended December 31, 2016.

(10) Expectations for 2017 includes silver, gold, lead and zinc production from Lucky Friday, Greens Creek, San Sebastian and Casa Berardi converted using Au $1,225/oz, Ag $17.25/oz, Zn $1.30/lb, Pb $1.05/lb. May be rounded.

Cautionary Statement Regarding Forward Looking Statements, Including 2017 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. Such forward-looking statements may include, without limitation: (i) estimates of future production and sales; (ii) estimates of future costs including cash cost, after by-product credits per ounce of silver/gold and AISC, after by-product credits, per ounce of silver/gold; (iii) estimates for 2017 for silver and gold production, silver equivalent production, cash cost, after by-product credits, AISC, after by-product credits, capital expenditures and exploration and pre-development expenditures (which assumes metal prices of gold at $1,225/oz, Ag $17.25/oz, Zn $1.30/lb, Pb $1.05; USD/CAD assumed to be $0.78, USD/MXN assumed to be $0.06; (iv) expectations regarding the development, growth potential financial performance and exploration potential of the Company’s projects, including the EMCP pits in Quebec and San Sebastian operations; (v) the Company’s mineral reserves and resources; estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. 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 Canadian dollar to the U.S. dollar, 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; and (viii) 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. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the "forward-looking statements." Such risks include, but are not limited to gold, silver and other metals price volatility, operating risks, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, community relations, conflict resolution and outcome of projects or oppositions, litigation, political, regulatory, labor and environmental risks, and 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. For a more detailed discussion of such risks and other factors, see the Company’s 2016 Form 10-K, filed on February 23, 2017, with the Securities and Exchange Commission (SEC), as well as the Company’s other SEC filings. 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 news release, 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.

Cautionary Statements to Investors on Reserves and Resources

Reporting requirements in the United States for disclosure of mineral properties are governed by the SEC and included in the SEC’s Securities Act Industry Guide 7, entitled "Description of Property by Issuers Engaged or to be Engaged in Significant Mining Operations" (Guide 7). However, the Company is also a "reporting issuer" under Canadian securities laws, which require estimates of mineral resources and reserves to be prepared in accordance with Canadian National Instrument 43-101 (NI 43-101). NI 43-101 requires all disclosure of estimates of potential mineral resources and reserves to be disclosed in accordance with its requirements. Such Canadian information is being included here to satisfy the Company’s "public disclosure" obligations under Regulation FD of the SEC and to provide U.S. holders with ready access to information publicly available in Canada.

Reporting requirements in the United States for disclosure of mineral properties under Guide 7 and the requirements in Canada under NI 43-101 standards are substantially different. This document contains a summary of certain estimates of the Company, not only of proven and probable reserves within the meaning of Guide 7, which requires the preparation of a "final" or "bankable" feasibility study demonstrating the economic feasibility of mining and processing the mineralization using the three-year historical average price for any reserve or cash flow analysis to designate reserves and that the primary environmental analysis or report be filed with the appropriate governmental authority, but also of mineral resource and mineral reserve estimates estimated in accordance with the definitional standards of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in NI 43-101. The terms "measured resources", "indicated resources," and "inferred resources" are Canadian mining terms as defined in accordance with NI 43-101. These terms are not defined under Guide 7 and are not normally permitted to be used in reports and registration statements filed with the SEC in the United States, except where required to be disclosed by foreign law. The term "resource" does not equate to the term "reserve". Under Guide 7, the material described herein as "indicated resources" and "measured resources" would be characterized as "mineralized material" and is permitted to be disclosed in tonnage and grade only, not ounces. The category of "inferred resources" is not recognized by Guide 7. Investors are cautioned not to assume that any part or all of the mineral deposits in such categories will ever be converted into proven or probable reserves. "Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of such a "resource" will ever be upgraded to a higher category or will ever be economically extracted. Investors are cautioned not to assume that all or any part of a "resource" exists or is economically or legally mineable. Investors are also especially cautioned that the mere fact that such resources may be referred to in ounces of silver and/or gold, rather than in tons of mineralization and grades of silver and/or gold estimated per ton, is not an indication that such material will ever result in mined ore which is processed into commercial silver or gold.

Qualified Person (QP) Pursuant to Canadian National Instrument 43-101

Dean McDonald, Ph.D. P.Geo., Senior Vice President - Exploration of Hecla Mining Company, who serves as a Qualified Person under National Instrument 43-101, supervised the preparation of the scientific and technical information concerning Hecla’s mineral projects in this news release. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures for the Greens Creek Mine are contained in a technical report prepared for Hecla and Aurizon Mines Ltd. titled "Technical Report for the Greens Creek Mine, Juneau, Alaska, USA" effective date March 28, 2013, and for the Lucky Friday Mine are contained in a technical report prepared for Hecla titled "Technical Report on the Lucky Friday Mine Shoshone County, Idaho, USA" effective date April 2, 2014, for the Casa Berardi Mine are contained in a technical report prepared for Hecla titled "Technical Report on the Mineral Resource and Mineral Reserve Estimate for the Casa Berardi Mine, Northwestern Quebec, Canada" effective date March 31, 2014 (the "Casa Berardi Technical Report"), and for the San Sebastian Mine 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 these three 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. Copies of these technical reports are available under Hecla’s profile on SEDAR at www.sedar.com.

The current Casa Berardi drill program was performed on core sawed in half and included the insertion of blanks and standards of variable grade in every 24 core samples. Standards were generally provided by Analytical Solutions Ltd and prepared in 30 gram bags. Samples were sent to the Swastika Laboratories in Swastika, Ontario, a registered accredited laboratory, where they were dried, crushed, and split for gold analysis. Analysis for gold was completed by fire assay with AA finish. Gold over-limits were analyzed by fire assay with gravimetric finish. Data received from the lab were subject to validation using in-built program triggers to identify outside limit blank or standard assays that require re-analysis. Over 5% of the original pulps and rejects are sent for re-assay to ALS Chemex in Val d’Or for quality control.

Dr. McDonald reviewed and verified information regarding drill sampling, data verification of all digitally-collected data, drill surveys and specific gravity determinations relating to the Casa Berardi mine. 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.

                                                                                                                                                                   
                                                                                                                                          HECLA MINING COMPANY
                                                                                                                           Condensed Consolidated Statements of Income (Loss)
                                                                                                                      (dollars and shares in thousands, except per share amounts -
                                                                                                                                               unaudited)
                                                                                                                                                                                                                                                                                     
                                                                                                                           Fourth Quarter Ended                                                                                                 Twelve Months Ended
                                                                                      -----------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------
                                                                                        December 31,        December 31,                           December 31,        December 31,   
                                                                                            2016                                                      2015                                                      2016                                                      2015
                                                                                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------------  --------------------
Sales of products                                                                           $ 164,245                              $ 115,337                              $ 645,957                              $ 443,567  
                                                                                      ------- ------- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      ------- ------- --------------------
Cost of sales and other direct production costs                                                87,648                                                    72,762                                                   338,983                                                   293,567
Depreciation, depletion and amortization                                                       33,049                                 30,840                                115,468                                111,489  
                                                                                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
                                                                                              120,697                                103,602                                454,451                                405,056  
                                                                                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Gross profit                                                                                   43,548                                 11,735                                191,506                                 38,511  
                                                                                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
                                                                                                                                                                                                                                                                                     
Other operating expenses:
  General and administrative                                                                   13,312                                                     7,724                                                    45,040                                                    34,201
  Exploration                                                                                   4,549                                                     2,997                                                    14,720                                                    17,745
  Pre-development                                                                               1,662                                                       379                                                     3,137                                                     4,213
  Research and development                                                                        126                                            --                                                       243                                            --
  Other operating expense                                                                         735                                                     1,040                                                     3,153                                                     3,177
  Loss (gain) on disposition of property, plants, equipment and                                   172                                                       404                                                      (147 )                                                     404
  mineral interests
  Acquisition costs                                                                               528                                            --                                                     2,695                                                     2,162
  Provision for closed operations and reclamation                                                 942                                  1,237                                  5,721                                 12,220  
                                                                                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
                                                                                               22,026                                 13,781                                 74,562                                 74,122  
                                                                                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Income (loss) from operations                                                                  21,522                                 (2,046 )                                                 116,944                                (35,611 )
                                                                                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Other income (expense):
  Gain on derivative contracts                                                                  4,423                                            --                                                     4,423                                                     8,252
  Loss on sale of investments                                                          --                                                       (44 )                                          --                                                       (44 )
  Unrealized loss on investments                                                                 (665 )                                                    (107 )                                                    (177 )                                                  (3,333 )
  Net foreign exchange gain (loss)                                                              4,787                                                     5,033                                                    (2,926 )                                                  24,551
  Interest and other income                                                                       161                                                       743                                                       507                                                       916
  Interest expense                                                                             (5,141 )                                                  (6,039 )                                                 (21,796 )                                                 (25,389 )
                                                                                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
                                                                                                3,565                                   (414 )                                                 (19,969 )                                                   4,953  
                                                                                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Income (loss) before income taxes                                                              25,087                                                    (2,460 )                                                  96,975                                                   (30,658 )
Income tax (provision) benefit                                                                 (4,825 )                                                 (60,503 )                                                 (27,428 )                                                 (56,310 )
                                                                                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Net income (loss)                                                                              20,262                                                   (62,963 )                                                  69,547                                                   (86,968 )
Preferred stock dividends                                                                        (138 )                                                    (138 )                                                    (552 )                                                    (552 )
                                                                                      ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Income (loss) applicable to common stockholders                                             $  20,124                              $ (63,101 )                                               $  68,995                              $ (87,520 )
                                                                                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
Basic income (loss) per common share after preferred dividends                              $    0.05                              $   (0.17 )                                               $    0.18                              $   (0.23 )
                                                                                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
Diluted income (loss) per common share after preferred dividends                            $    0.05                              $   (0.17 )                                               $    0.18                              $   (0.23 )
                                                                                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
Weighted average number of common shares outstanding basic                                    395,229                                378,113                                386,416                                373,954  
                                                                                      ====================================                      ====================================                      ====================================                      ====================================
Weighted average number of common shares outstanding diluted                                  397,717                                378,113                                389,322                                373,954  
                                                                                      ====================================                      ====================================                      ====================================                      ====================================
                                                                                                                                                                                                                                                                                     
                                                                                                                    
                                                                                         HECLA MINING COMPANY
                                                                                 Condensed Consolidated Balance Sheets
                                                                             (dollars and share in thousands - unaudited)
                                                                                                                                                                                  
                                                        December 31, 2016         December 31, 2015   
--------------------------------------------------------------------- -------------------- ------------------------------------------ -------------------- ------------------------------------------
ASSETS                                                                             
--------------------------------------------------------------------- -------------------- ------------------------------------------ -------------------- ------------------------------------------
Current assets:
  Cash and cash equivalents                                                                         $    169,777                                                    $    155,209
  Investments                                                                                             29,117                                                  --
  Accounts receivable                                                                                     30,049                                                          41,349
  Inventories                                                                                             50,023                                                          45,542
  Current deferred income taxes                                                                           12,293                                                          17,980
  Other current assets                                                                                    12,125                                        9,453  
                                                                                           ------------------------------------------                      ------------------------------------------
  Total current assets                                                                                   303,384                                                         269,533
Non-current investments                                                                                    5,002                                                           1,515
Non-current restricted cash and investments                                                                2,200                                                             999
Properties, plants, equipment and mineral interests, net                                               2,032,685                                                       1,896,811
Non-current deferred income taxes                                                                         23,522                                                          36,589
Reclamation insurance                                                                             --                                                          13,695
Other non-current assets and deferred charges                                                              4,884                                        2,783  
                                                                                           ------------------------------------------                      ------------------------------------------
Total assets                                                                                        $  2,371,677                                 $  2,221,925  
                                                                                           ========== ========== ====================                      ========== ========== ====================
                                                                
--------------------------------------------------------------------- -------------------- ------------------------------------------ -------------------- ------------------------------------------
LIABILITIES                                                                        
--------------------------------------------------------------------- -------------------- ------------------------------------------ -------------------- ------------------------------------------
Current liabilities:
  Accounts payable and accrued liabilities                                                          $     60,064                                                    $     51,277
  Accrued payroll and related benefits                                                                    36,515                                                          27,563
  Accrued taxes                                                                                            9,061                                                           8,915
  Current portion of capital leases                                                                        5,653                                                           8,735
  Current portion of accrued reclamation and closure costs                                                 5,653                                                          20,989
  Current portion of debt                                                                                    470                                                           2,721
  Other current liabilities                                                                               10,064                                        6,884  
                                                                                           ------------------------------------------                      ------------------------------------------
Total current liabilities                                                                                127,480                                                         127,084
Capital leases                                                                                             5,838                                                           8,841
Accrued reclamation and closure costs                                                                     79,927                                                          74,549
Long-term debt                                                                                           500,979                                                         500,199
Non-current deferred tax liability                                                                       121,600                                                         119,623
Non-current pension liability                                                                             44,491                                                          46,513
Other non-current liabilities                                                                             11,518                                        6,190  
                                                                                           ------------------------------------------                      ------------------------------------------
Total liabilities                                                                                        891,833                                      882,999  
                                                                                           ------------------------------------------                      ------------------------------------------
                                                                
--------------------------------------------------------------------- -------------------- ------------------------------------------ -------------------- ------------------------------------------
STOCKHOLDERS’ EQUITY                                    
--------------------------------------------------------------------- -------------------- ------------------------------------------ -------------------- ------------------------------------------
Preferred stock                                                                                               39                                                              39
Common stock                                                                                              99,806                                                          95,219
Capital surplus                                                                                        1,597,212                                                       1,519,598
Accumulated deficit                                                                                     (167,437 )                                                      (232,565 )
Accumulated other comprehensive loss                                                                     (34,602 )                                                       (32,631 )
Treasury stock                                                                                           (15,174 )                                                       (10,734 )
                                                                                           ------------------------------------------                      ------------------------------------------
Total stockholders’ equity                                                  1,479,844                                    1,338,926  
                                                                                           ------------------------------------------                      ------------------------------------------
Total liabilities and stockholders’ equity                               $  2,371,677                                 $  2,221,925  
                                                                                           ========== ========== ====================                      ========== ========== ====================
Common shares outstanding                                                                                395,287                                      378,113  
                                                                                           ------------------------------------------                      ------------------------------------------
                                                                                                                                                                                  
                                                                                                                  
                                                                                        HECLA MINING COMPANY
                                                                           Condensed Consolidated Statements of Cash Flows
                                                                                 (dollars in thousands - unaudited)
                                                                                                                                                                                
                                                        December 31,              December 31,      
                                                                                                  2016                                                            2015
------------------------------------------------------------------- -------------------- --------------------  -------------------- -------------------- --------------------  --------------------
OPERATING ACTIVITIES                                                             
------------------------------------------------------------------- -------------------- ------------------------------------------ -------------------- ------------------------------------------
Net (loss) income                                                                                 $     69,547                                                    $    (86,968 )
Non-cash elements included in net (loss) income:
  Depreciation, depletion and amortization                                                             117,413                                                         112,585
  Loss on sale of investments                                                                   --                                                              44
  Unrealized loss on investments                                                                           177                                                           3,333
  (Gain)/loss on disposition of properties, plants, equipment and                                         (147 )                                                           404
  mineral interests
  Provision for reclamation and closure costs                                                            4,813                                                          12,036
  Deferred income taxes                                                                                  2,112                                                          54,978
  Stock compensation                                                                                     6,184                                                           5,425
  Acquisition costs                                                                                      1,048                                                  --
  Amortization of loan origination fees                                                                  1,871                                                           1,821
  Gain on derivative contracts                                                                          (5,494 )                                                        11,630
  Foreign exchange gain                                                                                  4,649                                                         (20,081 )
  Adjustment of inventory to market value                                                                  811                                                           1,649
  Other non-cash charges, net                                                                             (174 )                                                           (35 )
Change in assets and liabilities:
  Accounts receivable                                                                                    4,233                                                          (6,834 )
  Inventories                                                                                           (5,697 )                                                          (854 )
  Other current and non-current assets                                                                  14,422                                                           1,195
  Accounts payable and accrued liabilities                                                              (6,539 )                                                        (4,211 )
  Accrued payroll and related benefits                                                                  17,705                                                           7,325
  Accrued taxes                                                                                            263                                                           4,653
  Accrued reclamation and closure costs and other non-current                                           (1,869 )                                                         8,350  
  liabilities
                                                                                         --------------------  --------------------                      --------------------  --------------------
Cash provided by operating activities                                                                  225,328                                      106,445  
                                                                                         ------------------------------------------                      ------------------------------------------
                                                              
------------------------------------------------------------------- -------------------- ------------------------------------------ -------------------- ------------------------------------------
INVESTING ACTIVITIES                                                             
------------------------------------------------------------------- -------------------- ------------------------------------------ -------------------- ------------------------------------------
Additions to properties, plants, equipment and mineral interests                                      (164,788 )                                                      (137,443 )
Purchase of a business, net of cash acquired                                                            (3,931 )                                                          (809 )
Proceeds from sale of investments                                                               --                                                              14
Proceeds from disposition of properties, plants and equipment                                              348                                                             579
Purchases of investments                                                                               (48,943 )                                                          (947 )
Maturities of investments                                                                               18,649                               --  
                                                                                         ------------------------------------------                      ------------------------------------------
Net cash used in investing activities                                                                 (198,665 )                                                      (138,606 )
                                                                                         ------------------------------------------                      ------------------------------------------
                                                              
------------------------------------------------------------------- -------------------- ------------------------------------------ -------------------- ------------------------------------------
FINANCING ACTIVITIES                                                             
------------------------------------------------------------------- -------------------- ------------------------------------------ -------------------- ------------------------------------------
Acquisition of treasury shares                                                                          (4,440 )                                                        (1,874 )
Proceeds from issuance of common stock and warrants, net of related                                      8,121                                                  --
expense
Dividend paid to common stockholders                                                                    (3,867 )                                                        (3,739 )
Dividends paid to preferred stockholders                                                                  (552 )                                                          (552 )
Payments on debt                                                                                        (2,721 )                                                          (870 )
Debt issuance and loan origination fees paid                                                              (127 )                                                          (127 )
Repayments of capital leases                                                                            (8,435 )                                                        (9,981 )
                                                                                         ------------------------------------------                      ------------------------------------------
Net cash used in financing activities                                                                  (12,021 )                                                       (17,143 )
                                                                                         ------------------------------------------                      ------------------------------------------
Effect of exchange rates on cash                                                                           (74 )                                                        (5,152 )
Net increase (decrease) in cash and cash equivalents                                                    14,568                                                         (54,456 )
Cash and cash equivalents at beginning of year                                                         155,209                                      209,665  
                                                                                         ------------------------------------------                      ------------------------------------------
Cash and cash equivalents at end of year                                                          $    169,777                                 $    155,209  
                                                                                         ---------- ---------- --------------------                      ---------- ---------- --------------------
                                                                                                                                                                                
                                                                                                                
                                                                                                      HECLA MINING COMPANY
                                                                                                          Metal Prices
                                                                                                                                                        
                                                                                        Fourth Quarter Ended                                                                       Twelve Months Ended
                                                                   ---------------------------------------------------------------                     --------------------------------------------------------------------------
              December 31,           December 31,           December 31,                 December 31,
                                                                           2016                                      2015                                      2016                                            2015
-------------------- -------------------- ------------------------ ------------------   -------------------- ------------------   -------------------- ------------------   -------------------- ------------------------------
AVERAGE METAL PRICES                                                            
------------------------------------------------------------------------------------------------------------ ----------------------------------------- ----------------------------------------- --------------------------------
Silver -                                  London PM Fix ($/oz)          $  17.18               $  14.76                                  $  17.10                   $                15.70
                                          Realized price per ounce      $  16.59                                  $  14.26                                  $  17.16                                      $                15.57
Gold -                                    London PM Fix ($/oz)          $  1,218                                  $  1,104                                  $  1,248                                      $                1,160
                                          Realized price per ounce      $  1,202                                  $  1,089                                  $  1,245                                      $                1,150
Lead -                                    LME Cash ($/pound)            $   0.98                                  $   0.76                                  $   0.85                                      $                 0.81
                                          Realized price per pound      $   0.97                                  $   0.77                                  $   0.85                                      $                 0.83
Zinc -                                    LME Cash ($/pound)            $   1.14                                  $   0.73                                  $   0.95                                      $                 0.88
                                          Realized price per pound      $   1.15                                  $   0.71                                  $   0.95                                      $                 0.86
                                                                                                                                                                                                             
                                                                                                                                                             
                                                                                                                                           Production Data
                                                                                                                                                                                                                           
                                                                                                                        Fourth Quarter Ended                                                                            Twelve Months Ended
                                                                                     -------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------
                                                    December 31,                December 31,              December 31,                   December 31,
                                                                                              2016                                                              2015                                         2016                                                                 2015
--------------------------------------------------------------- -------------------- --------------------  -------------------- -------------------- ------------------------  -------------------- --------------------  -------------------- -------------------- ------------------------------
GREENS CREEK UNIT                                                                         
--------------------------------------------------------------- -------------------- ------------------------------------------ -------------------- ---------------------------------------------- ------------------------------------------ -------------------- --------------------------------
Tons of ore processed                                                                              204,760                                          213,798                                    815,639                                                814,398
Mining cost per ton                                                                           $      70.33                                                    $          67.09                               $      69.48                                                    $                71.50
Milling cost per ton                                                                          $      34.73                                                    $          31.56                               $      31.99                                                    $                30.32
Ore grade milled - Silver (oz./ton)                                                                  14.38                                                               15.14                                      14.55                                                                     13.50
Ore grade milled - Gold (oz./ton)                                                                     0.10                                                                0.12                                       0.10                                                                      0.11
Ore grade milled - Lead (%)                                                                           3.27                                                                3.34                                       3.11                                                                      3.30
Ore grade milled - Zinc (%)                                                                           8.61                                                                8.76                                       8.08                                                                      8.74
Silver produced (oz.)                                                                            2,232,855                                                           2,568,025                                  9,253,543                                                                 8,452,153
Gold produced (oz.)                                                                                 14,415                                                              17,198                                     53,912                                                                    60,566
Lead produced (tons)                                                                                 5,360                                                               5,900                                     20,596                                                                    21,617
Zinc produced (tons)                                                                                15,399                                                              16,528                                     57,729                                                                    61,934
Total cash cost, after by-product credits, per silver ounce (1)                               $       1.19                                                    $           4.18                               $       3.84                                                    $                 3.91
Capital additions (in thousands)                                           $     11,846              $         13,978            $     47,046              $               45,962
--------------------------------------------------------------- -------------------- ---------- ---------- -------------------- -------------------- ---------- -------------- -------------------- ---------- ---------- -------------------- -------------------- ---------- --------------------
LUCKY FRIDAY UNIT                                                                         
--------------------------------------------------------------- -------------------- ------------------------------------------ -------------------- ---------------------------------------------- ------------------------------------------ -------------------- --------------------------------
Tons of ore processed                                                                               77,628                                                              85,226                                    293,875                                                                   297,347
Mining cost per ton                                                                           $      94.92                                                    $          81.21                               $      98.12                                                    $                89.69
Milling cost per ton                                                                          $      22.16                                                    $          18.36                               $      24.08                                                    $                21.51
Ore grade milled - Silver (oz./ton)                                                                  11.70                                                               12.12                                      12.69                                                                     10.68
Ore grade milled - Lead (%)                                                                           7.13                                                                6.93                                       7.78                                                                      6.55
Ore grade milled - Zinc (%)                                                                           3.84                                                                2.30                                       3.92                                                                      2.98
Silver produced (oz.)                                                                              874,019                                                             985,698                                  3,596,010                                                                 3,028,134
Lead produced (tons)                                                                                 5,272                                                               5,539                                     21,876                                                                    18,348
Zinc produced (tons)                                                                                 2,796                                                               2,508                                     10,787                                                                     8,139
Total cash cost, after by-product credits, per silver ounce (1)                               $       7.50                                                    $           9.02                               $       8.89                                                    $                11.23
Capital additions (in thousands)                                           $      9,318              $         14,390            $     41,536              $               55,909
--------------------------------------------------------------- -------------------- ---------- ---------- -------------------- -------------------- ---------- -------------- -------------------- ---------- ---------- -------------------- -------------------- ---------- --------------------
CASA BERARDI UNIT                                                                         
--------------------------------------------------------------- -------------------- ------------------------------------------ -------------------- ---------------------------------------------- ------------------------------------------ -------------------- --------------------------------
Tons of ore processed - underground                                                                214,407                                                             228,919                                    850,688                                                                   844,090
Tons of ore processed - surface pit                                                                 89,887                                   --                 146,900                                         --
                                                                                     ------------------------------------------                      ---------------------------------------------- ------------------------------------------                      --------------------------------
   Tons of ore processed - total                                                                   304,294                                          228,919                 997,588                                                844,090
                                                                                     ------------------------------------------                      ---------------------------------------------- ------------------------------------------                      --------------------------------
Mining cost per ton                                                                           $      86.35                                                    $          88.47                               $      89.25                                                    $                94.51
Milling cost per ton                                                                          $      18.08                                                    $          17.86                               $      18.64                                                    $                19.35
Ore grade milled - Gold (oz./ton) - underground                                                       0.19                                                                0.21                                       0.18                                                                      0.17
Ore grade milled - Gold (oz./ton) - surface pit                                                       0.06                                                                 n/a                                       0.07                                                                       n/a
Ore grade milled - Gold (oz./ton) - combined                                                          0.16                                                                0.21                                       0.17                                                                      0.17
Ore grade milled - Silver (oz./ton)                                                                   0.04                                                                0.04                                       0.04                                                                      0.04
Gold produced (oz.) - underground                                                                   36,658                                                              42,282                                    137,429                                                                   127,891
Gold produced (oz.) - surface pit                                                                    5,034                                   --                   8,546                                         --
                                                                                     ------------------------------------------                      ---------------------------------------------- ------------------------------------------                      --------------------------------
   Gold produced (oz.) - total                                                                      41,692                                           42,282                 145,975                                                127,891
                                                                                     ------------------------------------------                      ---------------------------------------------- ------------------------------------------                      --------------------------------
Silver produced (oz.) - total                                                                        9,607                                            8,910                  33,641                                                 29,639
                                                                                     ------------------------------------------                      ---------------------------------------------- ------------------------------------------                      --------------------------------
Total cash cost, after by-product credits, per gold ounce (1)                                 $        800                                                    $            591                               $        764                                                    $                  772
Capital additions (in thousands)                                           $     17,467              $         10,163            $     67,852              $               35,302
--------------------------------------------------------------- -------------------- ---------- ---------- -------------------- -------------------- ---------- -------------- -------------------- ---------- ---------- -------------------- -------------------- ---------- --------------------
SAN SEBASTIAN UNIT                                                                        
--------------------------------------------------------------- -------------------- ------------------------------------------ -------------------- ---------------------------------------------- ------------------------------------------ -------------------- --------------------------------
Tons of ore processed                                                                               34,517                                                               6,602                                    143,267                                                                     6,602
Mining cost per ton                                                                           $      50.76                                                    $ --                               $      75.46                                                    $       --
Milling cost per ton                                                                          $      71.01                                                    $ --                               $      69.12                                                    $       --
Ore grade milled - Silver (oz./ton)                                                                  26.40                                                      --                                      31.94                                                            --
Ore grade milled - Gold (oz./ton)                                                                    0.218                                                      --                                      0.254                                                            --
Silver produced (oz.)                                                                              860,071                                                              81,677                                  4,294,123                                                                    81,677
Gold produced (oz.)                                                                                  7,042                                                                 870                                     34,042                                                                       870
Total cash cost, after by-product credits, per silver ounce (1)                               $      (3.13 )                                                  $           6.71                               $      (3.35 )                                                  $                 6.71
Capital additions (in thousands)                                                              $        341                                                    $          3,434                               $      1,564                                                    $                3,434
                                                                                                                                                                                                                                                                                
(1)   Total 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.
                          

Non-GAAP Measures

(Unaudited)

Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to Cash Cost, Before By-product Credits, per Ounce and Cash Cost, After By-product Credits, per Ounce (non-GAAP)

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 is the most comparable financial measure calculated in accordance with GAAP to cash cost, before by-product credits cash cost, after by-product credits.

As depicted in the Greens Creek, Lucky Friday, and San Sebastian 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:

                                                            
                                                                                                                                                      Total (Greens Creek, Lucky Friday and San Sebastian)
                                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
In thousands (except per ounce amounts)                                                                          Three Months Ended                                                                      Twelve Months Ended
                                                                                                                    December 31,                                                                                               December 31,
                                                                                ------------------------------------------------------------------------------                            --------------------------------------------------------------------------------
                                                                                              2016                              2015                                                 2016                               2015
                                                                                ---------------------------------------------------- --------------------------------                     ----------------------------------------------------- --------------------------------
By-product value, all silver properties:                                                                                                                                                                 
  Zinc                                                                            $ 29,488                                             $ 19,619                                             $  92,277                                                    $               87,383
  Gold                                                                              23,926                                               16,725                                                99,905                                                                    59,019
  Lead                                                                              17,908                            15,339                             62,989                                                 55,955
                                                                                -------------------------------                      -------------------------------                      --------------------------------                      --------------------------------
  Total by-product credits                                                        $ 71,322                          $ 51,683                          $ 255,171                                 $              202,357
                                                                                --- ------ --------------------                      --- ------ --------------------                      --- ------- --------------------                      ---------- --------------------
                                                                                                                                                                                                                                                 
By-product credits per silver ounce, all silver properties
  Zinc                                                                            $   7.43                                             $   5.40                                             $    5.38                                                    $                 7.56
  Gold                                                                                6.02                                                 4.59                                                  5.83                                                                      5.10
  Lead                                                                                4.51                              4.22                               3.67                                                   4.84
                                                                                -------------------------------                      -------------------------------                      --------------------------------                      --------------------------------
  Total by-product credits                                                        $  17.96                          $  14.21                          $   14.88                                 $                17.50
                                                                                --- ------ --------------------                      --- ------ --------------------                      --- ------- --------------------                      ---------- --------------------
                                                                                                                                                                                                                                                            

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

                                          
                                                                                                                  Casa Berardi
                                                              --------------------------------------------------------------------------------------------------------------------
In thousands (except per ounce amounts)                                 Three Months Ended                                Twelve Months Ended
                                                                           December 31,                                                         December 31,
                                                              --------------------------------                            --------------------------------------------------
                                                                2016       2015                           2016               2015
                                                              ----------------------------- ---------                     ------------------------------ -------------------------
                                                                                                                  
Silver by-product value                                        $  163                        $  130                         $  572                         $                  457
Silver by-product credits per gold ounce                       $ 3.91                        $ 3.07                         $ 3.92                         $                 3.57
                                                                                                                                                              

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

                                                                   
                                                                                                                                                                                          Total (Greens Creek, Lucky Friday and San Sebastian)
                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 In thousands (except per ounce amounts)                                                                                Three Months Ended                                                                     Year Ended December 31,                                                Estimate
                                                                                                                           December 31,                                                                                                                                                                                        for
                                                                                       ------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------
                                                                                                     2016                              2015                                                  2016                                2015                                                   2017
                                                                                       --------------------------------                     --------------------------------                     ----------------------------------                     ----------------------------------                     ----------------------------------
Cost of sales and other direct production costs and depreciation,                        $ 71,623                                             $ 64,441                                              $ 298,740                                              $ 260,498                                              $ 357,400
depletion and amortization (GAAP)
Depreciation, depletion and amortization                                                  (18,301 )                                            (18,083 )                                              (68,156 )                                              (67,815 )                                             (101,400 )
Treatment costs                                                                            21,950                                               22,495                                                 84,535                                                 80,239                                                 85,400
Change in product inventory                                                                 4,013                                                3,412                                                 (1,429 )                                               (1,632 )                                                1,300
Reclamation and other costs                                                                (1,439 )                                               (397 )                                               (5,406 )                                               (1,319 )                            (4,500 )
                                                                                       -------------------------------                      -------------------------------                      ---------------------------------                      --------------------------------- -------------------- ---------------------------------
Cash Cost, Before By-product Credits (1)                                                   77,846                                               71,868                                                308,284                                                269,971                                                338,200
By-product credits                                                                        (71,322 )                                            (51,683 )                                             (255,171 )                                             (202,357 )                          (299,400 )
                                                                                       -------------------------------                      -------------------------------                      ---------------------------------                      --------------------------------- -------------------- ---------------------------------
Cash Cost, After By-product Credits                                                      $  6,524                          $ 20,185                           $  53,113                           $  67,614        $  38,800  
                                                                                       === ====== ====================                      === ====== ====================                      ==== ======= ====================                      ==== ======= ==================== ==================== ==== ======= ====================
Divided by silver ounces produced                                                           3,967                                                3,636                                                 17,144                                                 11,562                                                 14,000
  Cash Cost, Before By-product Credits, per Silver Ounce                                 $  19.62                                             $  19.76                                              $   17.98                                              $   23.35                                              $   24.16
  By-product credits per silver ounce                                                      (17.98 )                                             (14.21 )                                               (14.88 )                                               (17.50 )                            (21.39 )
                                                                                       -------------------------------                      -------------------------------                      ---------------------------------                      --------------------------------- -------------------- ---------------------------------
  Cash Cost, After By-product Credits, per Silver Ounce                                  $   1.64                          $   5.55                           $    3.10                           $    5.85        $    2.77  
                                                                                       === ====== ====================                      === ====== ====================                      ==== ======= ====================                      ==== ======= ==================== ==================== ==== ======= ====================
                                                                                                                                                                                                                                                                                                                             
                                                                   
                                                                                                                                                                                                            Greens Creek Unit
                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 In thousands (except per ounce amounts)                                                                                Three Months Ended                                                                     Year Ended December 31,                                                Estimate
                                                                                                                           December 31,                                                                                                                                                                                        for
                                                                                       ------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------
                                                                                                     2016                              2015                                                  2016                                2015                                                   2017
                                                                                       --------------------------------                     --------------------------------                     ----------------------------------                     ----------------------------------                     ----------------------------------
Cost of sales and other direct production costs and depreciation,                        $ 44,311                                             $ 48,514                                              $ 191,297                                              $ 195,276                                              $ 228,100
depletion and amortization (GAAP)
Depreciation, depletion and amortization                                                  (13,991 )                                            (15,164 )                                              (52,564 )                                              (56,553 )                                              (67,800 )
Treatment costs                                                                            16,685                                               17,181                                                 62,754                                                 63,284                                                 65,000
Change in product inventory                                                                 4,217                                                  700                                                 (1,866 )                                               (4,222 )                                                1,200
Reclamation and other costs                                                                  (500 )                                               (471 )                                               (2,327 )                                               (1,342 )                            (2,600 )
                                                                                       -------------------------------                      -------------------------------                      ---------------------------------                      --------------------------------- -------------------- ---------------------------------
Cash Cost, Before by-Product Credits (1)                                                   50,722                                               50,760                                                197,294                                                196,443                                                223,900
By-product credits                                                                        (48,064 )                                            (40,018 )                                             (161,782 )                                             (163,394 )                          (206,100 )
                                                                                       -------------------------------                      -------------------------------                      ---------------------------------                      --------------------------------- -------------------- ---------------------------------
Cash Cost, After By-product Credits                                                      $  2,658                          $ 10,742                           $  35,512                           $  33,049        $  17,800  
                                                                                       === ====== ====================                      === ====== ====================                      ==== ======= ====================                      ==== ======= ==================== ==================== ==== ======= ====================
Divided by silver ounces produced                                                           2,233                                                2,568                                                  9,254                                                  8,452                                                  7,400
  Cash Cost, Before By-product Credits, per Silver Ounce                                 $  22.71                                             $  19.77                                              $   21.32                                              $   23.24                                              $   30.26
  By-product credits per silver ounce                                                      (21.52 )                                             (15.59 )                                               (17.48 )                                               (19.33 )                            (27.85 )
                                                                                       -------------------------------                      -------------------------------                      ---------------------------------                      --------------------------------- -------------------- ---------------------------------
  Cash Cost, After By-product Credits, per Silver Ounce                                  $   1.19                          $   4.18                           $    3.84                           $    3.91        $    2.41  
                                                                                       === ====== ====================                      === ====== ====================                      ==== ======= ====================                      ==== ======= ==================== ==================== ==== ======= ====================
                                                                                                                                                                                                                                                                                                                             
                                                                   
                                                                                                                                                                                                           Lucky Friday Unit
                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 In thousands (except per ounce amounts)                                                                                Three Months Ended                                                                   Year Ended December 31,                                               Estimate
                                                                                                                           December 31,                                                                                                                                                                                     for
                                                                                       ------------------------------------------------------------------------------                            ------------------------------------------------------------------------------
                                                                                                     2016                              2015                                                 2016                              2015                                                   2017
                                                                                       --------------------------------                     --------------------------------                     --------------------------------                     --------------------------------                     -------------------------------------
Cost of sales and other direct production costs and depreciation,                        $ 19,514                                             $ 15,927                                             $ 76,210                                             $ 65,222                                                 $  93,800
depletion and amortization (GAAP)
Depreciation, depletion and amortization                                                   (3,036 )                                             (2,919 )                                            (11,810 )                                            (11,262 )                                                 (23,700 )
Treatment costs                                                                             4,954                                                5,274                                               20,277                                               16,915                                                    19,500
Change in product inventory                                                                   (60 )                                              1,276                                               (1,162 )                                              1,154                                                      (900 )
Reclamation and other costs                                                                  (265 )                                                 74                              (822 )                                                 23      --  
                                                                                       -------------------------------                      -------------------------------                      -------------------------------                      ------------------------------- -------------------- ------------------------------------
Cash Cost, Before By-product Credits (1)                                                   21,107                                               19,632                                               82,693                                               72,052                                                    88,700
By-product credits                                                                        (14,552 )                                            (10,737 )                                            (50,722 )                                            (38,035 )                              (67,200 )
                                                                                       -------------------------------                      -------------------------------                      -------------------------------                      ------------------------------- -------------------- ------------------------------------
Cash Cost, After By-product Credits                                                      $  6,555                          $  8,895                          $ 31,971                          $ 34,017           $  21,500  
                                                                                       === ====== ====================                      === ====== ====================                      === ====== ====================                      === ====== ==================== ==================== ======= ======= ====================
Divided by silver ounces produced                                                             874                                                  986                                                3,596                                                3,028                                                     3,600
  Cash Cost, Before By-product Credits, per Silver Ounce                                 $  24.15                                             $  19.91                                             $  23.00                                             $  23.79                                                 $   24.64
  By-product credits per silver ounce                                                      (16.65 )                                             (10.89 )                                             (14.11 )                                             (12.56 )                               (18.67 )
                                                                                       -------------------------------                      -------------------------------                      -------------------------------                      ------------------------------- -------------------- ------------------------------------
  Cash Cost, After By-product Credits, per Silver Ounce                                  $   7.50                          $   9.02                          $   8.89                          $  11.23           $    5.97  
                                                                                       === ====== ====================                      === ====== ====================                      === ====== ====================                      === ====== ==================== ==================== ======= ======= ====================
                                                                                                                                                                                                                                                                                                                            
                                                                   
 In thousands (except per ounce amounts)                                                                                                                                                           San Sebastian Unit
                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     Three Months Ended                                                              Year Ended December 31,                                           Estimate
                                                                                                                        December 31,                                                                                                                                                                            for
                                                                                       ------------------------------------------------------------------------                            --------------------------------------------------------------------------
                                                                                            2016                           2015                                               2016                            2015                                    2017
                                                                                       --------------                     --------------------------------------------                     ----------------                     ---------------------------------------------------------------- --------------------------------
Cost of sales and other direct production costs and depreciation,                        $  7,798                               $ --                                             $  31,233                                $ --                                             $ 35,500
depletion and amortization (GAAP)
Depreciation, depletion and amortization                                                   (1,274 )                               --                                                (3,782 )                                --                                              (10,000 )
Treatment costs                                                                               311                                             40                                                 1,504                                              40                                                  900
Change in product inventory                                                                  (144 )                                        1,436                                                 1,599                                           1,436                                                  100
Reclamation and other costs                                                                  (674 )                               --                             (2,257 )                                --         (1,000 )
                                                                                       -------------                      -------------------------------------------                      ---------------                      ------------------------------------------- -------------------- -------------------------------
Cash Cost, Before By-product Credits (1)                                                    6,017                                          1,476                                                28,297                                           1,476                                               25,500
By-product credits                                                                         (8,706 )                                         (928 )                                             (42,667 )                                          (928 )                         (26,100 )
                                                                                       -------------                      -------------------------------------------                      ---------------                      ------------------------------------------- -------------------- -------------------------------
Cash Cost, After By-product Credits                                                      $ (2,689 )                             $            548                          $ (14,370 )                              $            548       $   (600 )
                                                                                       === ====== ==                      ======= ============== ====================                      === ======= ===                      ======= ============== ==================== ==================== === ====== ====================
Divided by silver ounces produced                                                             860                                             82                                                 4,294                                              82                                                3,000
  Cash Cost, Before By-product Credits, per Silver Ounce                                 $   7.00                               $          18.07                                             $    6.59                                $          18.07                                             $   8.50
  By-product credits per silver ounce                                                      (10.12 )                                       (11.36 )                                               (9.94 )                                        (11.36 )                           (8.70 )
                                                                                       -------------                      -------------------------------------------                      ---------------                      ------------------------------------------- -------------------- -------------------------------
  Cash Cost, After By-product Credits, per Silver Ounce                                  $  (3.12 )                             $           6.71                          $   (3.35 )                              $           6.71       $  (0.20 )
                                                                                       === ====== ==                      ======= ============== ====================                      === ======= ===                      ======= ============== ==================== ==================== === ====== ====================
                                                                                                                                                                                                                                                                                                             

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

                                                                   
                                                                                                                                                                                                            Casa Berardi Unit
                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 In thousands (except ounce and per ounce amounts)                                                                      Three Months Ended                                                                    Year Ended December 31,                                                Estimate
                                                                                                                           December 31,                                                                                                                                                                                       for
                                                                                       ------------------------------------------------------------------------------                            --------------------------------------------------------------------------------
                                                                                                     2016                              2015                                                 2016                               2015                                 2017
                                                                                       --------------------------------                     --------------------------------                     ---------------------------------                     ----------------------------------------------------- -------------------------------------
Cost of sales and other direct production costs and depreciation,                        $ 49,074                                             $ 39,161                                             $ 155,711                                             $ 144,558                                                 $ 170,000
depletion and amortization (GAAP)
Depreciation, depletion and amortization                                                  (14,748 )                                            (12,757 )                                             (47,312 )                                             (43,674 )                                                 (46,700 )
Treatment costs                                                                               637                                                  221                                                 1,264                                                   670                                                       600
Change in product inventory                                                                (1,323 )                                             (1,409 )                                               2,890                                                (1,970 )                                                  (1,400 )
Reclamation and other costs                                                                  (117 )                                               (109 )                                                (459 )                                                (455 )                       --  
                                                                                       -------------------------------                      -------------------------------                      --------------------------------                      -------------------------------- -------------------- ------------------------------------
Cash Cost, Before By-product Credits (1)                                                   33,523                                               25,107                                               112,094                                                99,129                                                   122,500
By-product credits                                                                           (163 )                                               (130 )                                                (572 )                                                (457 )                                 (600 )
                                                                                       -------------------------------                      -------------------------------                      --------------------------------                      -------------------------------- -------------------- ------------------------------------
Cash Cost, After by-product credits                                                      $ 33,360                          $ 24,977                          $ 111,522                          $  98,672           $ 121,900  
                                                                                       === ====== ====================                      === ====== ====================                      === ======= ====================                      === ======= ==================== ==================== ======= ======= ====================
Divided by gold ounces produced                                                            41,693                                               42,282                                               145,975                                               127,891                                                   150,000
  Cash Cost, Before By-product Credits, per Gold Ounce                                   $ 804.04                                             $ 593.81                                             $  767.90                                             $  775.11                                                 $     817
  By-product credits per gold ounce                                                         (3.91 )                                              (3.07 )                                               (3.92 )                                               (3.57 )                                   (4 )
                                                                                       -------------------------------                      -------------------------------                      --------------------------------                      -------------------------------- -------------------- ------------------------------------
  Cash Cost, After By-product Credits, per Gold Ounce                                    $ 800.13                          $ 590.74                          $  763.98                          $  771.54           $     813  
                                                                                       === ====== ====================                      === ====== ====================                      === ======= ====================                      === ======= ==================== ==================== ======= ======= ====================
                                                                                                                                                                                                                                                                                                                              
                                                                   
                                                                                                                                                                                                           Total, All Locations
                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 In thousands                                                                                                            Three Months Ended                                                                      Year Ended December 31,                                                Estimate
                                                                                                                            December 31,                                                                                                                                                                                         for
                                                                                       --------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------
                                                                                                     2016                               2015                                                   2016                                2015                                2017
                                                                                       ---------------------------------                     ---------------------------------                     ----------------------------------                     ------------------------------------------------------ ----------------------------------
Cost of sales and other direct production costs and depreciation,                        $ 120,697                                             $ 103,602                                              $ 454,451                                              $ 405,056                                              $ 505,800
depletion and amortization (GAAP)
Depreciation, depletion and amortization                                                   (33,049 )                                             (30,840 )                                             (115,468 )                                             (111,489 )                                             (148,100 )
Treatment costs                                                                             22,587                                                22,716                                                 85,799                                                 80,909                                                 81,000
By-product credits                                                                         (71,485 )                                             (51,813 )                                             (255,743 )                                             (202,814 )                                             (300,000 )
Change in product inventory                                                                  2,690                                                 2,004                                                  1,461                                                 (3,602 )                                                 (100 )
Reclamation and other costs                                                                 (1,556 )                                                (507 )                                               (5,865 )                                               (1,774 )                            (4,600 )
                                                                                       --------------------------------                      --------------------------------                      ---------------------------------                      --------------------------------- -------------------- ---------------------------------
Cash Cost, After By-product Credits                                                      $  39,884                          $  45,162                           $ 164,635                           $ 166,286        $ 134,000  
                                                                                       === ======= ====================                      === ======= ====================                      ==== ======= ====================                      ==== ======= ==================== ==================== ==== ======= ====================
                                                                                                                                                                                                                                                                                                                               
(1)   Includes all direct and indirect operating cash costs related
                         directly to the physical activities of producing metals, including
                         mining, processing and other plant costs, third-party refining and
                         marketing expense, on-site general and administrative costs,
                         royalties and mining production taxes, before by-product revenues
                         earned from all metals other than the primary metal produced at each
                         unit.
                          

Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to All-In Sustaining Costs, Before By-product Credits, per Ounce and All-In Sustaining Costs, After By-product Credits, per Ounce (non-GAAP)

This release contains references to a non-GAAP measure of all-in sustaining costs, before by-product credits, per ounce and all-in sustaining costs, after by-product credits, per ounce. All-in sustaining costs, before by-product credits, per ounce and all-in sustaining costs, 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 after costs for exploration, pre-development, reclamation, and sustaining capital. 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 in the understanding of the economics of our operations and performance compared to other producers and in the investor’s visibility 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. Cost of sales and other direct production costs and depreciation, depletion and amortization is the most comparable financial measure calculated in accordance with GAAP to cash cost, before by-product credits cash cost, after by-product credits.

See the section above titled Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to Cash Cost, Before By-product Credits, per Ounce and Cash Cost, After By-product Credits, per Ounce (non-GAAP) for more information on the by-product credits for each of our operating units.

The following tables calculates all-in sustaining costs, before by-product credits, per silver ounce and all-in sustaining costs, after by-product credits, per Silver ounce (in thousands, except ounce and per ounce amounts):

                                                                        
                                                                                                                                                  Total (Silver Properties and Corporate)
                                                                                            --------------------------------------------------------------------------------------------------------------------------------------------------
 In thousands (except per ounce amounts)                                                              Three Months                         Year Ended                          Estimate for
                                                                                                          Ended                                              December 31,
                                                                                                      December 31,
                                                                                                          2016                                                   2016                                                    2017
                                                                                            ---------------------------------                     ----------------------------------                     -------------------------------------
Cost of sales and other direct production costs and depreciation,                              $ 71,623                                              $ 298,740                                                 $ 357,400
depletion and amortization (GAAP)
Depreciation, depletion and amortization                                                        (18,301 )                                              (68,156 )                                                (101,400 )
Treatment costs                                                                                  21,950                                                 84,535                                                    85,400
Change in product inventory                                                                       4,013                                                 (1,429 )                                                   1,300
Reclamation and other costs                                                                        (421 )                                               (1,724 )                                          --
Exploration                                                                                       2,633                                                  7,669                                                    11,400
Sustaining capital                                                                               21,877                                                 90,716                                                    70,500
General and administrative expense                                                               13,311                              45,040                                 35,000  
                                                                                            --------------------------------                      ---------------------------------                      ------------------------------------
All-In Sustaining Costs, Before By-product Credits (1,2)                                        116,685                                                455,391                                                   459,600
By-product credits                                                                              (71,322 )                                             (255,171 )                             (299,400 )
                                                                                            --------------------------------                      --------------------------------- -------------------- ------------------------------------
All-In Sustaining Costs, After By-product Credits                                              $ 45,363                           $ 200,220           $ 160,200  
                                                                                            ==== ====== ====================                      ==== ======= ==================== ==================== ======= ======= ====================
Divided by silver ounces produced                                                                 3,967                                                 17,144                                                    14,000
  All-In Sustaining Costs, Before By-product Credits, per Silver Ounce                         $  29.41                                              $   26.56                                                 $   32.83
  By-product credits per silver ounce                                                            (17.98 )                                               (14.88 )                               (21.39 )
                                                                                            --------------------------------                      --------------------------------- -------------------- ------------------------------------
  All-In Sustaining Costs, After By-product Credits, per Silver Ounce                          $  11.44                           $   11.68           $   11.44  
                                                                                            ==== ====== ====================                      ==== ======= ==================== ==================== ======= ======= ====================
                                                                                                                                                                                                                          
                                                                        
                                                                                                                                                             Greens Creek Unit
                                                                                            --------------------------------------------------------------------------------------------------------------------------------------------------
 In thousands (except per ounce amounts)                                                              Three Months                         Year Ended                          Estimate for
                                                                                                          Ended                                              December 31,
                                                                                                      December 31,
                                                                                                          2016                                                   2016                                                    2017
                                                                                            ---------------------------------                     ----------------------------------                     -------------------------------------
Cost of sales and other direct production costs and depreciation,                              $ 44,311                                              $ 191,297                                                 $ 228,100
depletion and amortization (GAAP)
Depreciation, depletion and amortization                                                        (13,991 )                                              (52,564 )                                                 (67,800 )
Treatment costs                                                                                  16,685                                                 62,754                                                    65,000
Change in product inventory                                                                       4,217                                                 (1,866 )                                                   1,200
Other costs                                                                                         171                                                    392                                            --
Exploration                                                                                         523                                                  1,892                                                     5,200
Sustaining capital                                                                               11,847                              47,046              45,500  
                                                                                            --------------------------------                      --------------------------------- -------------------- ------------------------------------
All-In Sustaining Costs, Before by-Product Credits (1)                                           63,763                                                248,951                                                   277,200
By-product credits                                                                              (48,064 )                                             (161,782 )                             (206,100 )
                                                                                            --------------------------------                      --------------------------------- -------------------- ------------------------------------
All-In Sustaining Costs, After By-product Credits                                              $ 15,699                           $  87,169           $  71,100  
                                                                                            ==== ====== ====================                      ==== ======= ==================== ==================== ======= ======= ====================
Divided by silver ounces produced                                                                 2,233                                                  9,254                                                     7,400
  All-In Sustaining Costs, Before By-product Credits, per Silver Ounce                         $  28.55                                              $   26.90                                                 $   37.46
  By-product credits per silver ounce                                                            (21.52 )                                               (17.48 )                               (27.85 )
                                                                                            --------------------------------                      --------------------------------- -------------------- ------------------------------------
  All-In Sustaining Costs, After By-product Credits, per Silver Ounce                          $   7.03                           $    9.42           $    9.61  
                                                                                            ==== ====== ====================                      ==== ======= ==================== ==================== ======= ======= ====================
                                                                                                                                                                                                                          
                                                                        
                                                                                                                                                            Lucky Friday Unit
                                                                                            -------------------------------------------------------------------------------------------------------------------------------------------------
 In thousands (except per ounce amounts)                                                              Three Months                        Year Ended                          Estimate for
                                                                                                          Ended                                             December 31,
                                                                                                      December 31,
                                                                                                          2016                                                  2016                                                    2017
                                                                                            ---------------------------------                     ---------------------------------                     -------------------------------------
Cost of sales and other direct production costs and depreciation,                              $ 19,514                                              $ 76,210                                                 $  93,800
depletion and amortization (GAAP)
Depreciation, depletion and amortization                                                         (3,036 )                                             (11,810 )                                                 (23,700 )
Treatment costs                                                                                   4,954                                                20,277                                                    19,500
Change in product inventory                                                                         (60 )                                              (1,162 )                                          --
Other costs                                                                                         (39 )                                                (101 )                                          --
Exploration                                                                                          76                                                    76                                            --
Sustaining capital                                                                                9,318                             41,536              23,000  
                                                                                            --------------------------------                      -------------------------------- -------------------- ------------------------------------
All-In Sustaining Costs, Before By-product Credits (1)                                           30,727                                               125,026                                                   112,600
By-product credits                                                                              (14,552 )                                             (50,722 )                              (67,200 )
                                                                                            --------------------------------                      -------------------------------- -------------------- ------------------------------------
All-In Sustaining Costs, After By-product Credits                                              $ 16,175                           $ 74,304           $  45,400  
                                                                                            ==== ====== ====================                      ==== ====== ==================== ==================== ======= ======= ====================
Divided by silver ounces produced                                                                   874                                                 3,596                                                     3,600
  All-In Sustaining Costs, Before By-product Credits, per Silver Ounce                         $  35.16                                              $  34.77                                                 $   31.28
  By-product credits per silver ounce                                                            (16.65 )                                              (14.11 )                               (18.67 )
                                                                                            --------------------------------                      -------------------------------- -------------------- ------------------------------------
  All-In Sustaining Costs, After By-product Credits, per Silver Ounce                          $  18.51                           $  20.66           $   12.61  
                                                                                            ==== ====== ====================                      ==== ====== ==================== ==================== ======= ======= ====================
                                                                                                                                                                                                                         
                                                                        
 In thousands (except per ounce amounts)                                                                                                                   San Sebastian Unit
                                                                                            ------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                      Three Months                       Year Ended                          Estimate for
                                                                                                          Ended                                            December 31,
                                                                                                      December 31,
                                                                                                          2016                                                 2016                                                    2017
                                                                                            --------------------------------                     ---------------------------------                     -------------------------------------
Cost of sales and other direct production costs and depreciation,                              $ 7,798                                              $ 31,233                                                 $  35,500
depletion and amortization (GAAP)
Depreciation, depletion and amortization                                                        (1,274 )                                              (3,782 )                                                 (10,000 )
Treatment costs                                                                                    311                                                 1,504                                                       900
Change in product inventory                                                                       (144 )                                               1,599                                                       100
Other costs                                                                                       (556 )                                              (2,013 )                                          --
Exploration                                                                                      1,661                                                 4,043                                                     4,100
Sustaining capital                                                                                 341                              1,540               1,500  
                                                                                            -------------------------------                      -------------------------------- -------------------- ------------------------------------
All-In Sustaining Costs, Before By-product Credits (1)                                           8,137                                                34,124                                                    32,100
By-product credits                                                                              (8,706 )                                             (42,667 )                              (26,100 )
                                                                                            -------------------------------                      -------------------------------- -------------------- ------------------------------------
All-In Sustaining Costs, After By-product Credits                                              $  (569 )                                            $ (8,543 )                            $   6,000  
                                                                                            ==== ===== ====================                      ==== ====== ==================== ==================== ======= ======= ====================
Divided by silver ounces produced                                                                  860                                                 4,294                                                     3,000
  All-In Sustaining Costs, Before By-product Credits, per Silver Ounce                         $  9.46                                              $   7.95                                                 $   10.70
  By-product credits per silver ounce                                                           (10.12 )                                               (9.94 )                                (8.70 )
                                                                                            -------------------------------                      -------------------------------- -------------------- ------------------------------------
  All-In Sustaining Costs, After By-product Credits, per Silver Ounce                          $ (0.66 )                                            $  (1.99 )                            $    2.00  
                                                                                            ==== ===== ====================                      ==== ====== ==================== ==================== ======= ======= ====================
                                                                                                                                                                                                                        

The following table calculates all-in sustaining costs, before by-product credits, per gold ounce and all-in sustaining costs, after by-product credits, per gold ounce (in thousands, except ounce and per ounce amounts):

                                                                      
                                                                                                                                                            Casa Berardi Unit
                                                                                          -----------------------------------------------------------------------------------------------------------------------------------------------------
 In thousands (except ounce and per ounce amounts)                                                   Three Months                          Year Ended                           Estimate for
                                                                                                         Ended                                               December 31,
                                                                                                     December 31,
                                                                                                         2016                                                    2016                                                     2017
                                                                                          -----------------------------------                     -----------------------------------                     -------------------------------------
Cost of sales and other direct production costs and depreciation,                            $   49,074                                              $  155,711                                                 $ 170,000
depletion and amortization (GAAP)
Depreciation, depletion and amortization                                                        (14,748 )                                               (47,312 )                                                 (46,700 )
Treatment costs                                                                                     637                                                   1,264                                                       600
Change in product inventory                                                                      (1,323 )                                                 2,890                                                    (1,400 )
Reclamation and other costs                                                                          (3 )                                                    (1 )                                          --
Exploration                                                                                       1,051                                                   3,331                                                     4,900
Sustaining capital                                                                               17,467                               66,326              50,000  
                                                                                          ----------------------------------                      ---------------------------------- -------------------- ------------------------------------
All-In Sustaining Costs, Before By-product Credits (1)                                           52,155                                                 182,209                                                   177,400
By-product credits                                                                                 (163 )                                                  (572 )                                 (600 )
                                                                                          ----------------------------------                      ---------------------------------- -------------------- ------------------------------------
All-In Sustaining Costs, After by-product credits                                            $   51,992                           $  181,637           $ 176,800  
                                                                                          ==== ======== ====================                      ==== ======== ==================== ==================== ======= ======= ====================
Divided by gold ounces produced                                                                  41,693                                                 145,975                                                   150,000
  All-In Sustaining Costs, Before By-product Credits, per Gold Ounce                         $ 1,250.93                                              $ 1,248.22                                                 $   1,183
  By-product credits per gold ounce                                                               (3.91 )                                                 (3.92 )                                   (4 )
                                                                                          ----------------------------------                      ---------------------------------- -------------------- ------------------------------------
  All-In Sustaining Costs, After By-product Credits, per Gold Ounce                          $ 1,247.02                           $ 1,244.30           $   1,179  
                                                                                          ==== ======== ====================                      ==== ======== ==================== ==================== ======= ======= ====================
                                                                                                                                                                                                                           
                                                                   
                                                                                                                                                      Total, All Locations
                                                                                       ---------------------------------------------------------------------------------------------------------------------------------------------------
 In thousands                                                                                     Three Months                         Year Ended                          Estimate for
                                                                                                      Ended                                              December 31,
                                                                                                  December 31,
                                                                                                      2016                                                   2016                                                    2017
                                                                                       ----------------------------------                     ----------------------------------                     -------------------------------------
Cost of sales and other direct production costs and depreciation,                         $ 120,697                                              $ 454,451                                                 $ 527,400
depletion and amortization (GAAP)
Depreciation, depletion and amortization                                                    (33,049 )                                             (115,468 )                                                (148,100 )
Treatment costs                                                                              22,587                                                 85,799                                                    86,000
By-product credits                                                                          (71,485 )                                             (255,743 )                                                (300,000 )
Change in product inventory                                                                   2,690                                                  1,461                                                      (100 )
Reclamation and other costs                                                                    (424 )                                               (1,725 )                                          --
Exploration                                                                                   3,684                                                 11,000                                                    16,300
Sustaining capital                                                                           39,344                                                157,042                                                   120,500
General and administrative expense                                                           13,311                              45,040                                 35,000  
                                                                                       ---------------------------------                      ---------------------------------                      ------------------------------------
All-In Sustaining Costs, After By-product Credits                                         $  97,355                           $ 381,857           $ 337,000  
                                                                                       ==== ======= ====================                      ==== ======= ==================== ==================== ======= ======= ====================
                                                                                                                                                                                                                      
(1)   Includes all direct and indirect operating cash costs related
                         directly to the physical activities of producing metals, including
                         mining, processing and other plant costs, third-party refining and
                         marketing expense, on-site general and administrative costs,
                         royalties and mining production taxes, before by-product revenues
                         earned from all metals other than the primary metal produced at each
                         unit. In addition, on-site exploration, reclamation, and sustaining
                         capital costs are also included.
                          
(2)                      All-in sustaining costs, before by-product credits for our
                         consolidated silver properties includes corporate costs for all
                         general and administrative expenses, and exploration and
                         sustaining capital which support the operating properties.
                          

Reconciliation of Net Income (Loss) Applicable to Common Shareholders (GAAP) to Adjusted Net Income (Loss) Applicable to Common Shareholders (non-GAAP)

This release refers to a non-GAAP measure of adjusted net income (loss) applicable to common stockholders and adjusted net income (loss) per share, which are indicators of our performance. 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.

                                                                                                                                                               
                                                                                                                        Three Months Ended                                                                           Twelve Months Ended
                                                                                                                           December 31,                                                                                                    December 31,
                                                                                  ----------------------------------------------------------------------------------------       -------------------- -------------------------------------------------------------------------------
                                                                                                  2016                                   2015                                 2016                              2015
                                                                                  --------------------------------------------------------- --------------------------------------------------------- ---------------------------------------------------- ---------------------------------
Net (loss) income applicable to common stockholders (GAAP)                              $  20,124                              $ (63,101 )                                           $ 68,995                          $ (87,520 )
Adjusting items:
  Gains on derivatives contracts                                                           (4,423 )                                          --                                               (4,423 )                                              (8,252 )
  Provisional price loss (gains)                                                            1,294                                                       (73 )                                                918                                                  (634 )
  Environmental accruals                                                           --                                                       255                                                1,351                                                 8,953
  Foreign exchange (gain) loss                                                             (4,787 )                                                  (5,033 )                                              2,926                                               (24,551 )
  Acquisition costs                                                                           528                                            --                                                2,695                                                 2,162
  Change in deferred tax asset valuation allowance                                         (2,618 )                                                  76,354                                              (11,568 )                                              76,354
  Income tax effect of above adjustments                                                    1,040                                    (73 )                                               (216 )                                                (892 )
                                                                                  ------------------------------------                      ------------------------------------                      -------------------------------                      --------------------------------
Adjusted net income (loss) applicable to common stockholders                            $  11,158                              $   8,329                          $ 60,678                          $ (34,380 )
                                                                                  ======= ======= ====================                      ======= ======= ====================                      === ====== ====================                      === ======= ====================
  Weighted average shares - basic                                                         395,229                                                   378,113                                              386,416                                               373,954
  Weighted average shares - diluted                                                       397,717                                                   378,113                                              389,322                                               373,954
  Basic adjusted net income (loss) per common share                                     $    0.03                                                 $    0.02                                             $   0.16                                             $   (0.09 )
  Diluted adjusted net income (loss) per common share                                   $    0.03                                                 $    0.02                                             $   0.16                                             $   (0.09 )
                                                                                                                                                                                                                                                                        
(1)   Adjusted net income (loss) applicable to common stockholders and
                         adjusted net income (loss) per share are non-GAAP measures which are
                         indicators of our performance. They exclude certain impacts of a
                         nature that 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.
                          

Reconciliation of Net Income (Loss) (GAAP) and Debt (GAAP) to Adjusted EBITDA (non-GAAP) and Net Debt (non-GAAP)

This release refers to the non-GAAP measures of adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), which is a measure of our operating performance, and net debt to adjusted EBITDA for the last 12 months (or "LTM adjusted EBITDA"), which is a measure of our ability to service our debt. Adjusted EBITDA is calculated as net income (loss) before the following items: interest expense, income tax provision, depreciation, depletion, and amortization expense, exploration expense, pre-development expense, acquisition costs, interest and other income (expense), foreign exchange gains and losses, gains and losses on derivative contracts, unrealized gains on investments, provisions for environmental matters, stock-based compensation, and provisional price gains and losses. Net debt is calculated as total debt, which consists of the liability balances for our Senior Notes, capital leases, and other notes payable, less the total of our cash and cash equivalents and short-term investments. Management believes that, when presented in conjunction with comparable GAAP measures, adjusted EBITDA and net debt to LTM adjusted EBITDA are useful to investors in evaluating our operating performance and ability to meet our debt obligations. The following table reconciles net income (loss) and debt to adjusted EBITDA and net debt:

                                                                                                                                                              
 Dollars are in thousands                                                                                                Three Months Ended                                                                          Twelve Months Ended
                                                                                     --------------------------------------------------------------------------------------------------------------- -----------------------------------------------------------------------------------------
                                                                                               December 31,                         December 31,                          December 31,                        December 31,
                                                                                                   2016                                                    2015                                                     2016                                                   2015
                                                                                     ------------------------------   -------------------- ----------------------------------   -------------------- -------------------------------   -------------------- -------------------------------
Net income (loss)                                                                       $ 20,262                              $ (62,963 )                                            $  69,547                           $ (86,968 )
Plus: Interest expense, net of amount capitalized                                          5,141                                                     6,039                                                 21,796                                                 25,389
Plus: Income taxes                                                                         4,825                                                    60,503                                                 27,428                                                 56,310
Plus: Depreciation, depletion and amortization                                            33,049                                                    30,840                                                115,468                                                111,489
Plus: Exploration expense                                                                  4,549                                                     2,997                                                 14,720                                                 17,745
Plus: Pre-development expense                                                              1,662                                                       379                                                  3,137                                                  4,213
Plus: Acquisition costs                                                                      528                                            --                                                  2,695                                                  2,162
Plus/(Less): Foreign exchange (gain) loss                                                 (4,787 )                                                  (5,033 )                                                2,926                                                (24,551 )
Less: (Gains) losses on derivative contracts                                              (4,423 )                                          --                                                 (4,423 )                                               (8,252 )
Plus/(Less): Provisional price (gains)/losses                                              1,294                                                       (73 )                                                  918                                                   (634 )
Plus: Provision for closed operations and environmental matters                            1,128                                                     1,008                                                  4,813                                                 12,036
Plus: Stock-based compensation                                                             1,370                                                     1,389                                                  5,932                                                  5,425
Plus: Unrealized losses on investments                                                       665                                                       107                                                    177                                                  3,333
Less: Other                                                                                 (161 )                                                    (699 )                                                 (507 )                                                 (872 )
                                                                                     --------------------------------                      ------------------------------------                      ---------------------------------                      ---------------------------------
Adjusted EBITDA                                                                         $ 65,102                              $  34,494                           $ 264,627                           $ 116,825  
                                                                                     ==== ====== ====================                      ======= ======= ====================                      ==== ======= ====================                      ==== ======= ====================
Total debt                                                                                                                                                                                              $ 512,940                                              $ 520,496
Less: Cash, cash equivalents and short-term investments                                                                                                                                                   198,894                             155,209  
                                                                                                                                                                                                     ---------------------------------                      ---------------------------------
Net debt                                                                                                                                                                                                $ 314,046                           $ 365,287  
                                                                                                                                                                                                     ==== ======= ====================                      ==== ======= ====================
Net debt/LTM adjusted EBITDA                                                                                                                                                                                  1.2                                                    3.1
                                                                                                                                                                                                                                                                          

Reconciliation of Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP)

This release refers to a non-GAAP measure of free cash flow, calculated as cash provided by operating activities, less additions to properties, plants, equipment and mineral interests and a one-time item for settlement of an insurance policy for reclamation of the Troy Mine. Management believes that, when presented in conjunction with comparable GAAP measures, free cash flow is useful to investors in evaluating our operating performance. The following table reconciles cash provided by operating activities to free cash flow:

                                                                                                                                                                        
 Dollars are in thousands                                                                                                        Three Months Ended                                                                              Twelve Months Ended
                                                                                           ------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------
                                                                                                       December 31,                           December 31,                          December 31,                         December 31,
                                                                                                           2016                                                      2015                                                     2016                                                    2015
                                                                                           ----------------------------------   -------------------- ----------------------------------   -------------------- -------------------------------   -------------------- ----------------------------------
Cash provided by operating activities                                                            $  52,214                              $  27,477                                              $ 225,328                              $ 106,445
Less: Additions to properties, plants equipment and mineral interests                              (44,552 )                                                 (42,044 )                                             (164,788 )                                                (137,443 )
Less: Troy reclamation insurance settlement                                                 --                         --                             (16,000 )                                          --  
                                                                                           ------------------------------------                      ------------------------------------                      ---------------------------------                      ------------------------------------
Free cash flow                                                                                   $   7,662                              $ (14,567 )                                            $  44,540                              $ (30,998 )
                                                                                           ======= ======= ====================                      ======= ======= ====================                      ==== ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                             Reserves and Resources - 12/31/2016
                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                       Proven Reserves
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         Silver                  Gold                   Lead                   Zinc                  Silver                  Gold                   Lead                   Zinc                  Copper
Asset                           Tons (000)              (oz/ton)               (oz/ton)                   %                      %                  (000 oz)               (000 oz)                 Tons                   Tons                   Tons
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Greens Creek (a)                              9                   15.5                   0.09                    2.5                    6.6                    140                      1                    230                    600         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Lucky Friday (a)                          3,308                   17.5         --                   10.4                    3.3                 57,925         --                345,360                110,400         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Casa Berardi (1)                          2,575         --                   0.11         --         --         --                    272         --         --         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
San Sebastian (a)                            43                   23.4                   0.19         --         --                  1,008                      8         --         --         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total                                     5,935                                 59,073                    281                345,590                111,000         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                             
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                      Probable Reserves
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                               Silver                                     Gold                                      Lead                                      Zinc                                     Silver                                     Gold                                      Lead                                      Zinc                                     Copper
Asset                           Tons (000)              (oz/ton)               (oz/ton)                   %                      %                  (000 oz)               (000 oz)                 Tons                   Tons                   Tons
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Greens Creek (a)                          7,585                   11.7                   0.09                    2.9                    7.6                 88,729                    672                217,050                575,530         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Lucky Friday (a)                          1,542                   12.9         --                    7.9                    2.8                 19,912         --                121,640                 43,410         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Casa Berardi (1)                          7,752         --                   0.13         --         --         --                  1,037         --         --         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
San Sebastian (a)                           283                   16.2                    0.1         --         --                  4,593                     29         --         --         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total                                    17,162                                113,233                  1,738                338,690                618,940         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                             
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                Proven and Probable Reserves
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                               Silver                                     Gold                                      Lead                                      Zinc                                     Silver                                     Gold                                      Lead                                      Zinc                                     Copper
Asset                           Tons (000)              (oz/ton)               (oz/ton)                   %                      %                  (000 oz)               (000 oz)                 Tons                   Tons                   Tons
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Greens Creek (a)                          7,594                   11.7                   0.09                    2.9                    7.6                 88,869                    673                217,280                576,130         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Lucky Friday (a)                          4,850                   16.1         --                    9.6                    3.2                 77,837         --                467,000                153,810         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Casa Berardi (1)                         10,327         --                   0.13         --         --         --                  1,309         --         --         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
San Sebastian (a)                           326                   17.2                   0.11         --         --                  5,600                     37         --         --         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total                                    23,096                                172,306                  2,019                684,280                729,940         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                             
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                     Measured Resources
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                               Silver                                     Gold                                      Lead                                      Zinc                                     Silver                                     Gold                                      Lead                                      Zinc                                     Copper
Asset                           Tons (000)              (oz/ton)               (oz/ton)                   %                      %                  (000 oz)               (000 oz)                 Tons                   Tons                   Tons
                                               
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Greens Creek (b)                 --         --         --         --         --         --         --         --         --    
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Lucky Friday (2)(b)                      14,698                    6.3         --                    4.2                    2.3                 92,178         --                610,550                344,890         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Casa Berardi (3)                          2,108         --                   0.16         --         --         --                    340         --         --         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
San Sebastian (4)(b)             --         --         --         --         --         --         --         --         --         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Heva (5)                                  5,480         --                   0.06         --         --         --                    304         --         --         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Hosco (5)                                33,070         --                   0.04         --         --         --                  1,296         --         --         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Rio Grande Silver (6)(b)         --         --         --         --         --         --         --         --         --         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Star (7)(a)                      --         --         --         --         --         --         --         --         --         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total                                    55,355                                 92,178                  1,940                610,550                344,890         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                             
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                     Indicated Resources
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                               Silver                                     Gold                                      Lead                                      Zinc                                     Silver                                     Gold                                      Lead                                      Zinc                                     Copper
Asset                           Tons (000)              (oz/ton)               (oz/ton)                   %                      %                  (000 oz)               (000 oz)                 Tons                   Tons                   Tons
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Greens Creek (b)                          1,785                   10.8                   0.09                    3.1                    7.8                 19,320                    154                 55,980                139,660         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Lucky Friday (2)(b)                       6,801                    6.0         --                    4.2                    2.2                 40,853         --                282,790                146,550         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Casa Berardi (3)                         11,220         --                    0.1         --         --         --                  1,128         --         --         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
San Sebastian (4)(b)                      1,530                    5.4                   0.07         --         --                  8,285                    114                 14,620                 19,050                  8,420
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Heva (5)                                  5,570         --                   0.07         --         --         --                    369         --         --         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Hosco (5)                                31,620         --                   0.04         --         --         --                  1,151         --         --         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Rio Grande Silver (6)                       516                   14.8         --                    2.1                    1.1                  7,620         --                 10,760                  5,820         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Star (7)(b)                               1,126                    2.9         --                    6.2                    7.4                  3,301         --                 69,900                 83,410         --
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
Total                                    60,167                                 79,379                  2,917                434,050                394,490                  8,420
------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                          Measured & Indicated Resources
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                            Silver                  Gold                   Lead                   Zinc               Silver            Gold             Lead             Zinc            Copper
Asset                   Tons (000)         (oz/ton)               (oz/ton)                   %                      %               (000 oz)         (000 oz)           Tons             Tons             Tons
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------
Greens Creek (b)             1,785                   10.8                   0.09                    3.1                    7.8           19,320              154           55,980          139,660   --
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------
Lucky Friday (2)(b)         21,499                    6.2         --                    4.2                    2.3          133,031   --          893,340          491,440   --
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------
Casa Berardi (3)            13,327         --                   0.11         --         --   --            1,468   --   --   --
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------
San Sebastian (4)(b)         1,530                    5.4                   0.07         --         --            8,285              114           14,620           19,050            8,420
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------
Heva (5)                    11,050         --                   0.06         --         --   --              672   --   --   --
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------
Hosco (5)                   64,690         --                   0.04         --         --   --            2,447   --   --   --
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------
Rio Grande Silver (6)          516                   14.8         --                    2.1                    1.1            7,620   --           10,760            5,820   --
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------
Star (7)(b)                  1,126                    2.9         --                    6.2                    7.4            3,301   --           69,900           83,410   --
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------
Total                      115,522                          171,557            4,856        1,044,600          739,380            8,420
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------
                                                       
                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                        Inferred Resources
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                            Silver                  Gold                   Lead                   Zinc                  Copper              Silver            Gold             Lead             Zinc               Copper
Asset                   Tons (000)         (oz/ton)               (oz/ton)                   %                      %                      %               (000 oz)         (000 oz)           Tons             Tons                Tons
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------------
Greens Creek (b)             3,397                   11.9                   0.08                    2.9                    7.2         --           40,253              285           98,380          243,220         --
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------------
Lucky Friday (8)(b)          4,427                    7.7         --                    5.6                      2         --           34,032   --          247,260           87,240         --
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------------
Casa Berardi (3)             4,635         --                   0.14         --         --         --   --              628   --   --         --
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------------
San Sebastian (9) (b)        2,817                    5.5                   0.03         --         --         --           15,413               89           22,960           32,670                 19,220
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------------
Heva (5)                     4,210         --                   0.08         --         --         --   --              350   --   --         --
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------------
Hosco (5)                    7,650         --                   0.04         --         --         --   --              314   --   --         --
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------------
Rio Grande Silver(10)        3,078                   10.7                   0.01                    1.3                    1.1         --            3,097               36           40,990           34,980         --
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------------
Star (11)(b)                 3,157                    2.9         --                    5.6                    5.5         --            9,432   --          178,670          174,450         --
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------------
Monte Cristo (12)              913                    0.3                   0.14         --         --         --              271              131   --   --         --
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------------
Rock Creek (13)             97,573                    1.5         --         --         --                    0.7          148,094   --   --   --                655,070
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------------
Montanore (14)             112,185                    1.6         --         --         --                    0.7          183,346   --   --   --                759,420
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------------
Total                      244,041                              463,938            1,833          588,260          572,560              1,433,710
--------------------- -------------------- ---------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                              
 
Note: All estimates are in-situ except for the proven reserves at
Greens Creek and San Sebastian which are in surface stockpiles.
Resources are exclusive of reserves.
 
(a)                      Mineral reserves are based on $1200 gold, $14.50 silver, $0.90
                                            lead, $1.05 zinc, unless otherwise stated.
                                             
(b)                                         Mineral resources are based on $1350 gold, $21 silver, $0.95 lead,
                                            $1.10 zinc and $3.00 copper, unless otherwise stated.
                                             
(1)                                         Mineral reserves are based on $1200 gold and a US$/CAN$ exchange
                                            rate of 1:1.4 Reserve diluted to an average of 34.7% to minimum
                                            width of 9.8 feet (3m).
                                             
                                            Open pit mineral reserves of the Principal Mine were estimated in
                                            February 2011 by BBA Inc. based on $950 gold and a US$/CAN$ exchange
                                            rate of 1:1. Reserve diluted to 10%
                                             
                                              Technical Report on the Pre-Feasibility Study for the Casa
                                              Berardi Principal Zone Open-Pit Project, La Sarre, Quebec, February
                                              2011
                                             
                                              Prepared by: Patrice Live, Eng. - BBA Inc.; Amanda Fitch, Jr.
                                              Eng. - BBA Inc.; Andre Allaire, Eng., M. Eng., Ph.D. - BBA
                                             
(2)                                         Measured and indicated resources from Gold Hunter and Lucky Friday
                                            vein systems are diluted and factored for expected mining recovery.
                                             
(3)                                         Measured, indicated and inferred resources are based on $1,350
                                            gold and a US$/CAN$ exchange rate of 1:1.4 Underground resources
                                            are reported at a minimum mining width of 6.6 to 9.8 feet (2 m to
                                            3 m)
                                             
                                            Open pit mineral resources of the Principal Mine were estimated in
                                            February 2011 by BBA Inc. based on $950 gold and a US$/CAN$ exchange
                                            rate of 1:1
                                             
                                              Technical Report on the Pre-Feasibility Study for the Casa
                                              Berardi Principal Zone Open-Pit Project, La Sarre, Quebec, February
                                              2011
                                             
                                              Prepared by: Patrice Live, Eng. - BBA Inc.; Amanda Fitch, Jr.
                                              Eng. - BBA Inc.; Andre Allaire, Eng., M. Eng., Ph.D. - BBA
                                             
                                            Open pit mineral resources of the 160 Zone were estimated by
                                            InnovExplo Inc., effective date 24 August, 2011, based on $1,250
                                            gold and a US$/CAN$ exchange rate of 1:1, Resources diluted to 12%
                                             
                                              Preliminary Economic Assessment on the Casa Berardi Mine - Zone
                                              160, May 4, 2012
                                             
                                              Prepared by: Nathalie Gauthier, Eng., P.Eng., - InnovExplo;
                                              Gilles Carrier, Eng., Aurizon Mines Ltd.
                                             
(4)                                         Indicated resources reported at a minimum mining width of 6.6 feet
                                            (2 m) for Hugh Zone and 4.9 feet (1.5 m) for Andrea Vein, Middle
                                            Vein, and North Vein. East Francine resources reported at actual
                                            vein width.
                                             
                                            San Sebastian Hugh Zone also contains 8,420 tons of copper at 1.7%
                                            Cu within 499,200 tons of indicated resource.
                                             
(5)                                         Measured, indicated and inferred resources were estimated in by
                                            Goldminds Geoservices Inc. with effective date 12-July-2013, and
                                            are based on $1,300 gold and a US$/CAN$ exchange rate of 1:1.
                                             
                                            The resources are in-situ without dilution and material loss.
                                             
                                              NI43-101 Technical Report, Mineral Resource Update, Heva-Hosco
                                              Gold Projects, Rouyn-Noranda, Quebec, Hecla Quebec, December 2013
                                             
                                              Prepared by: Claude Duplessis, Eng. Project Manager - GoldMinds
                                              Geoservices Inc.; Maxime Dupere, P.Geo - SGS Canada Inc. (Geostat)
                                             
(6)                                         Indicated resources reported at a minimum mining width of 6.0 feet
                                            for Bulldog; resources based on $26.5 Ag, $0.85 Pb, and $0.85 Zn
                                             
(7)                                         Indicated resources reported at a minimum mining width of 4.3 feet.
                                             
(8)                                         Inferred resources from Gold Hunter and Lucky Friday vein systems
                                            are diluted and factored for expected mining recovery.
                                             
(9)                                         Inferred resources reported at a minimum mining width of 6.6 feet
                                            (2 m) for Hugh Zone and 4.9 feet (1.5 m) for Andrea Vein, Middle
                                            Vein, and North Vein. East Francine resources reported at actual
                                            vein width.
                                             
                                            San Sebastian Hugh Zone also contains 19,220 tons of copper at 1.5%
                                            within 1,311,300 tons of inferred resource.
                                             
(10)                                        Inferred resources reported at a minimum mining width of 6.0 feet
                                            for Bulldog, 5.0 feet for Equity & North Amethyst veins; resources
                                            based on $1400 Au, $26.5 Ag, $0.85 Pb, and $0.85 Zn.
                                             
(11)                                        Inferred resources reported at a minimum mining width of 4.3 feet.
                                             
(12)                                        Inferred resource reported at a minimum mining width of 5.0 feet;
                                            resources based on $1400 Au, $26.5 Ag.
                                             
(13)                                        Inferred resource reported at a minimum thickness of 15 feet; Rock
                                            Creek also contains 655,070 tons of copper at 0.7% within stated
                                            inferred resource tonnage.
                                             
                                            Inferred resources at Rock Creek adjusted given mining
                                            restrictions as defined by U.S. Forest Service - Kootenai National
                                            Forest in the June 2003 ’Record of Decision, Rock Creek Project’.
                                             
(14)                                        Inferred resource reported at a minimum thickness of 15 feet;
                                            Montanore also contains 759,420 tons of copper at 0.7% within
                                            stated inferred resource tonnage.
                                             
                                              Inferred resources at Montanore adjusted given mining restrictions
                                              as defined by U.S. Forest Service, Kootenai National Forest,
                                              Montana DEQ in the December 2015 ’Joint Final EIS, Montanore
                                              Project’ and the February 2016 U.S. Forest Service - Kootenai
                                              National Forest ’Record of Decision, Montanore Project’.
                                             
* Totals may not represent the sum of parts due to rounding

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SOURCE: Hecla Mining Company

Hecla Mining Company 
Mike Westerlund, 800-HECLA91 (800-432-5291) 
Vice President - Investor Relations 
hmc-info@hecla-mining.com 
http://www.hecla-mining.com 


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