Hecla Reports First Quarter 2015 Results

Hecla Mining Company (NYSE:HL) (Hecla or the Company) today announced first quarter net income applicable to common stockholders of $12.4 million, or $0.03 per basic share, and adjusted net loss applicable to common stockholders of $7.0 million, or $0.02 per basic share.1

FIRST QUARTER 2015 HIGHLIGHTS AND SIGNIFICANT ITEMS

• Sales of $119.1 million.
• Operating cash flow of $21.4 million.
• Adjusted EBITDA of $35.0 million.²
• Total silver production of 2.9 million ounces at a cash cost, after by-product credits, per silver ounce of $4.93.³
• Total gold production of 40,650 ounces, of which 25,411 ounces were produced at Casa Berardi at a cash cost, after by-product credits, per gold ounce of $974.³
• Silver equivalent production of 8.7 million ounces.4
• Cash and cash equivalents of $196 million.
• Entered into an agreement to acquire Revett Mining Company for approximately $20 million of stock.
• Reviewing multiple third-party mill opportunities for San Sebastian project and have all major permits for mining.
• Affirmed 2015 guidance for production and cash cost, after by-product credits, as well as capital and exploration spending.

"Greens Creek continues to have outstanding performance and Lucky Friday was solid," said Phillips S. Baker, Jr., Hecla's President and CEO. "Casa Berardi produced less gold than last year's first quarter but we expect production to increase over the remainder of the year and to achieve our guidance. During the first quarter the mines' performance allowed us to operate within adjusted EBITDA."

Mr. Baker continued, "Our solid operations and balance sheet have allowed Hecla to establish a strong growth profile. Within 12 months San Sebastian could generate significant production, cash flow and returns from third-party milling of high-grade mineralization. Then in 2018 we expect annual silver production at the Lucky Friday to increase about 60% to five million ounces as we access higher-grade ore once the #4 Shaft is completed. And finally, the Revett Rock Creek project could generate significant silver production in 10 to 15 years."

(1) Adjusted net income (loss) applicable to common stockholders represents a non-U.S. Generally Accepted Accounting Principles (GAAP), a reconciliation of which to net income applicable to common stockholders, the most comparable GAAP measure, can be found at the end of the release.

(2) Adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to net income, the most comparable GAAP measure, can be found at the end of the release.

(3) 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, the most comparable GAAP measures, can be found at the end of the release.

(4) Silver equivalent calculations based on the following prices: $17.25 for Ag, $1,225 for Au, $0.90 for Pb, and $1.00 for Zn.

FINANCIAL OVERVIEW

Net income applicable to common stockholders for the first quarter increased $0.9 million to $12.4 million, or $0.03 per share, from the same period a year ago and was impacted by the following factors:

• Revenues were 5% lower due to lower realized silver, gold, and lead prices, partially offset by higher zinc prices.
• Net foreign exchange gains of $12.3 million compared to a gain of $4.1 million in the same period of 2014 due to a weaker Canadian dollar.
• Net gain on base metal derivative contracts of $5.8 million in the first quarter of 2015 compared to a gain of $9.5 million in the first quarter of 2014.
• Impairment loss of $2.8 million in the first quarter of 2015 for investments in exploration companies.

Operating cash flow of $21.4 million declined 30% over the same period in 2014 principally due to normal working capital fluctuations. The adjusted EBITDA of $35.0 million decreased 15% over the same period in 2014 due to lower prices of gold, silver and lead.

Capital expenditures (excluding capitalized interest) totaled $27.9 million for the first quarter ended March 31, 2015. Expenditures at Greens Creek, Casa Berardi, and Lucky Friday were $6.3 million, $7.9 million, and $13.7 million, respectively.

Metals Prices

Average realized silver prices in the first quarter of 2015 were $17.18 per ounce, 14% lower than the $20.04 price realized in the first quarter of 2014. Realized gold and lead prices also declined 6% and 13%, respectively, while realized zinc prices increased 4% from the first quarter of 2014.

Base Metals Forward Sales Contracts

The following table summarizes the quantities of base metals committed under financially settled forward sales contracts at March 31, 2015:

The contracts represent 30% of the forecasted zinc production at an average price of $0.98 per pound for the period from the second quarter 2015 to the end of 2017 and 29% of the forecasted lead production at an average price of $1.06 per pound for the period from the second quarter 2015 to the end of 2017.

OPERATIONS OVERVIEW

• Greens Creek production of 2.0 million ounces of silver in the first quarter increased 14% over the same period of 2014, as the mine realized an 11% increase in silver ore grades and higher recoveries.
• Lucky Friday silver production of 0.84 million ounces in the first quarter of 2015 increased 20% over the same period of 2014. The increase is attributable to higher ore grades and recoveries, despite lower ore production due to mine sequencing.
• Casa Berardi gold production of 25,411 in the first quarter of 2015 represents a 19% decrease over the same period of 2014, as a result of lower grades and recoveries. Changes made to the plant are expected to improve recoveries over the remainder of the year.

The following table provides the production and cash cost, after by-product credits, per silver and gold ounce summary for the first quarters ended March 31, 2015 and 2014:

(1) Cash cost, after by-product credits, per silver or gold ounce represent a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization, the most comparable GAAP measures, can be found at the end of the release.

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

The following table provides the production summary on a consolidated basis for the quarters ended March 31, 2015 and 2014:

Greens Creek Mine - Alaska

Silver production at Greens Creek was 2.0 million ounces for the first quarter 2015, an increase of 14% over the 1.8 million ounces of the prior year period. This consistently strong silver production is due to higher silver grades as a result of normal mine sequencing and higher silver and gold recoveries. Changes made to the flotation circuit in the fourth quarter of 2014 continue to result in higher silver recovery. The mill operated at 2,172 tons per day (tpd) during the first quarter of 2015.

The cash cost, after by-product credits, per silver ounce increased to $3.23 in the first quarter 2015 from $1.58 in the first quarter 20141 in part due to lower by-product revenues. Power costs were similar in both periods due to higher precipitation levels in Southeastern Alaska resulting in continued availability of less expensive hydroelectric power. Higher labor costs, due to increased staffing levels, and lower milled tons are the largest factors in an increase of mining and milling cost per ton by 10% and 4%, respectively, in the first quarter compared to the same period in 2014. Treatment costs are less as a result of lower silver prices, as treatment costs include the value of silver not payable to the company through the smelting process.

(1) 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, the most comparable GAAP measures, can be found at the end of the release.

Lucky Friday Mine - Idaho

First quarter 2015 silver production at Lucky Friday was 0.84 million ounces, an increase of 20% over the 0.70 million ounces of the prior year period due to higher silver grades and recoveries. The mill operated at 825 tpd during the first quarter of 2015.

The cash cost, after by-product credits, per silver ounce decreased to $9.05 in the first quarter of 2015 from $9.60 in the prior year period as a result of higher production and higher ore grades.1

#4 Shaft, a key growth project, has now been excavated a total of 2,720 feet to the 7660 level. The project is more than 80% complete and is expected to be finished in the third quarter of 2016. The total estimated completion cost of the #4 Shaft is now approximately $225 million, with $176 million spent through the first quarter. As of March 31, 2015, the #4 Shaft team has worked 1,230 days without a lost-time accident.

Casa Berardi Mine - Quebec

The Casa Berardi mine produced 25,411 ounces of gold in the first quarter, a decrease of 19% over the 31,259 ounces of the prior year period due to lower grades and recoveries. The mine experienced lower grades as a result of mine sequencing. Recoveries were lower due to metallurgical characteristics of the ore from the 118 Zone requiring adjustments to the ore control system which are expected to improve recoveries over the rest of the year. These adjustments include the adoption of X-ray fluorescence technology which should better predict ore zones that contain high levels of arsenopyrite which is more difficult to recover gold from. Improved prediction should allow better blending of ore and adjustments to reagent dosing. The mill operated at an average of 2,090 tpd. Although tonnage was comparable to the first quarter of 2014, it was affected by a two-day power outage and squeezing conditions in one work area requiring the re-drilling of blastholes.

The cash cost, after by-product credits, per gold ounce of $974 in the first quarter 2015 increased from $886 in the prior year period as a result of lower production.1 The Company expects Casa Berardi to produce 130,000 ounces of gold this year at a cash cost, after by-product credits, per gold ounce of $825.1

Revett Transaction

On March 27, 2015, Hecla reached an agreement to acquire Revett Mining Company in the form of a merger valued at approximately $20 million, with the transaction expected to close late in the second quarter. The proposed merger is subject to approval by Revett's stockholders and to the satisfaction of other closing conditions contained in the merger agreement.

Upon completion of the merger, Hecla would expect to continue to advance permitting of the Rock Creek project. Located in northwest Montana, Rock Creek is considered one of the largest undeveloped silver and copper deposits in North America. The project is within 100 miles of Hecla’s Lucky Friday mine in Idaho. A Supplemental Environmental Impact Statement (SEIS) is in process and the U.S. Forest Service schedule indicates that the SEIS will be issued later this year for public comment.

(1) Cash cost, after by-product credits, per silver and gold ounce represents a non-GAAP measurement, a reconciliation of historical cash cost, after by-product credits, per ounce of silver and gold to cost of sales and other direct production costs and depreciation, depletion and amortization, the most comparable GAAP measures, can be found at the end of the release.

EXPLORATION AND PRE-DEVELOPMENT REVIEW

Expenditures

Exploration and pre-development expenses were $4.6 million and $0.5 million, respectively, in the first quarter of 2015, a decrease of about $0.5 million for exploration and increase of $0.1 million for pre-development versus the first quarter of 2014 as a result of reduced discretionary spending offset by increased pre-development activity in Mexico. Full year exploration and pre-development expenses are expected to be about $18.0 million.

San Sebastian - Mexico

There has been significant drilling success over the past two years on the near-surface East Francine, Middle and North veins at the San Sebastian project in central Mexico. The East Francine, Andrea, Middle and North veins now define nearly 4.5 miles of mineralized strike length and are open along strike and at depth. The near-surface portions of the East Francine, North and Middle veins contain mineralization that may be suitable to open pit mining. The East Francine Vein is the faulted extension of the past-producing, high-grade Francine Vein which from 2001 to 2005 was one of the highest-grade producers in Mexico.

A preliminary economic assessment (PEA) level study is underway by AMC Mining Consultants (Canada) Limited of Vancouver, BC. The study is looking into various combinations of shallow open pits and underground mining. In addition, M3 Engineering and Technology Corp. of Tucson, Arizona is reviewing metallurgical options for the project. Completion of the PEA is expected in the third quarter. The Company sees potential to generate free cash flow from the high-grade East Francine Vein in the next year or two, and is working towards making a production decision this year. A number of third-party milling options are currently under review for suitability to allow the project to rapidly move into production with a minimal level of capital investment. The major permits required for mining are in hand.

The Middle Vein has been traced for nearly 6,500 feet along strike and to a depth of over 1,000 feet. Recent drilling of the Middle Vein is defining a new zone of near-surface mineralization to the southeast of the San Ricardo Fault. Drill results in the first quarter include 0.29 oz/ton gold and 6.7 oz/ton silver over 8.9 feet, and 0.21 oz/ton gold and 7.6 oz/ton silver over 7.8 feet. The North Vein has a mineralized trend that extends over 3,450 feet along strike and 650 feet to depth and remains open along strike in both directions and at depth. Recent intersections of the North Vein east of the San Ricardo Fault include 0.02 oz/ton gold and 18.3 oz/ton silver over 6.4 feet and 0.10 oz/ton gold and 18.4 oz/ton silver over 3.6 feet.

The East Francine Vein has currently been traced for over 1,300 feet along strike and to 650 feet of depth and primarily consists of supergene and oxide mineralization. Drilling of systematic near-surface step-out holes to the southeast of the San Ricardo Fault was conducted during the first quarter. In-fill drilling of a shallow gap between the previous drilling and drilling on the periphery has expanded the area of near-surface, supergene enrichment. Recent deeper drilling east of the San Ricardo Fault has also intersected some strong mineralization that is in close proximity to the past underground workings of the San Sebastian mine. Drill intersections include 0.30 oz/ton gold and 17.3 oz/ton silver over 4.1 feet.

Greens Creek - Alaska

At Greens Creek, definition and exploration drilling made progress in refining the NWW, 9A and Deep 200 South resources and advancing the Gallagher Fault Block and Deep 200 South trends. Recent drilling of the NWW zone includes 27.9 oz/ton silver, 0.20 oz/ton gold, 5.3% zinc, and 2.3% lead over 22.9 feet and 21.3 oz/ton silver, 0.15 oz/ton gold, 17.6% zinc, and 5.0% lead over 16.6 feet.

Drilling of the 9A zone has defined continuous mineralization along the southernmost portion of the mine contact. Recent exploration drilling of the Gallagher Fault Block combined with existing intercepts defines mineralized zones proximal to the Gallagher Fault for 430 vertical feet and 1,000 feet of strike length. Drill intersections continue to be very encouraging, and mineralization remains open to the south.

Drilling of the Deep 200 South in the past few years has defined three stacked folds of high-grade mineralization that represent up to 600 feet of down-dip continuity. Recent drill intersections of the folded upper bench mineralization include 67.8 oz/ton silver, 0.04 oz/ton gold, 3.8% zinc, and 2.2% lead over 11.7 feet along the upper limb and 29.9 oz/ton silver, 0.04 oz/ton gold, 2.9% zinc and 1.6% lead over 12.7 feet along the lower limb. Drill intersections continue to be very encouraging, and mineralization remains open to the south.

Casa Berardi - Quebec

At Casa Berardi, up to seven drills have been operating underground in an effort to refine current stope designs and resources in the 118, 123 and 124 zones and exploration drilling has extended mineralization on the newly discovered 117 Zone. In-stope and definition drilling of the upper 118 Zone from the 530 level intersected a 20 to 60-foot wide shear zone that includes mineralized intervals of 0.42 oz/ton gold over 21.0 feet and 0.31 oz/ton gold over 43.0 feet. This mineralization is open to the west and deeper drilling suggests the zone continues to plunge to the west above the 550 level and may define an interesting new mineralized block.

Drilling has confirmed continuity of high-grade mineralization in the 123 Zone including intersections of 0.52 oz/ton gold over 17.7 feet and 0.34 oz/ton gold over 31.2 feet in the upper zone and 0.86 oz/ton gold over 12.1 feet in the lower areas. The lenses of the 123 Zone currently represent at least 1,200 feet of continuous down-dip mineralization with an average strike length of 500 feet. In-stope and definition drilling on the 124 Principal Zone from the 290 level continues to return high grade intersections including 0.53 oz/ton gold over 7.9 feet, and 0.38 oz/ton gold over 8.9 feet.

Exploration drilling from the 810 level of the newly-defined 117 Zone has extended gold mineralization both north and south of the Casa Berardi Fault trend for 550 feet down-plunge. Recent drill results include 0.46 oz/ton gold over 14.8 feet in sheared veins to the south of the Casa Berardi Fault, and current drilling will investigate the down-plunge in the vicinity of the Casa Berardi Fault.

Surface drilling on the 124 Zone east of the Principal Zone area indicate good lateral continuity of a 10 to 15 foot thick quartz vein with pyrite-arsenopyrite immediately north of the Casa Berardi Fault near the main 290 level drift. Drill results in this area include 0.42 oz/ton gold over 9.8 feet.

Lucky Friday - Idaho

There is no underground drilling at Lucky Friday planned for 2015.

More complete drill assay highlights from San Sebastian, Greens Creek, and Casa Berardi can be found in Table A at the end of the release.

DIVIDENDS

Common

The Board of Directors elected to declare a quarterly cash dividend of $0.0025 per share of common stock, payable on or about June 1, 2015, to stockholders of record on May 22, 2015. The realized silver price was $17.18 in the first quarter and therefore did not satisfy the criteria for a larger dividend under the Company's dividend policy.

Preferred

The Board of Directors has also elected to declare the regular quarterly cash dividend of $0.875 per share on the outstanding Series B Cumulative Convertible Preferred Stock, on a total of 157,816 shares outstanding. This represents a total amount to be paid of approximately $138,000. The cash dividend is payable on July 1, 2015, to stockholders of record on June 15, 2015.

CONFERENCE CALL AND WEBCAST

A conference call and webcast will be held Thursday, May 7, 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 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

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

Cautionary Statements to Investors on Forward-Looking Statements

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. Such forward-looking statements may include, without limitation: (i) estimates of future production and sales, including as a result of the #4 Shaft Project; (ii) estimates of future costs and cash cost, after by-product credits per ounce of silver/gold, including the expected cost of the #4 Shaft project; (iii) guidance for 2015 for silver and gold production, cash cost, after by-product credits, capital expenditures and pre-development and exploration expenditures (which assumes metal prices of gold at $1,225/oz, silver at $17.25/oz, zinc at $0.90/lb, lead at $0.95/lb and USD/CAD assumed at $0.91); (iv) expectations regarding the development, growth and exploration potential of the Company’s projects; (v) expectations of growth; (vi) expected level of hydroelectric power usage at Greens Creek; (vii) the possibility of the improving recoveries at Casa Berardi as a result of changes being made to the plant; (viii) possible strike extensions of veins at the San Sebastian project, the ability to secure a third party mill and the ability of the project to generate free cash flow in the next year or two; and (ix) completion of the acquisition of Revett and the ability to permit and bring the Rock Creek project into production in 10-15 years. 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 2013 Form 10-K, filed on February 19, 2014 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.

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

Dean McDonald, PhD. P.Geo., Senior Vice President - Exploration of Hecla Mining Company, who serves as a Qualified Person under National Instrument 43-101("NI 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, and 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"). 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.

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. 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.

HECLA MINING COMPANY
Reconciliation of Cash Cost, Before By-product Credits, per Ounce and Cash Cost, After By-product Credits, per Ounce
to Generally Accepted Accounting Principles (GAAP)
(Unaudited)

This release contains references to non-GAAP measures of cash cost, before by-product credits, per ounce and cash cost, after by-product credits, per ounce. The Company believes that these non-GAAP measures provide management and investors an indication of net cash flow. Management also uses cash cost, after by-product credits, per ounce 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 are the most comparable financial measures calculated in accordance with GAAP to cash cost, before by-product credits cash cost, after by-product credits.

As depicted in the Greens Creek Unit and the Lucky Friday 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:

By-product credits included in our presentation of Cash Cost, After By-product Credits, per Gold Ounce for our Casa Berardi Unit include:

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

HECLA MINING COMPANY
Reconciliation of Net Income Applicable to Common Stockholders (GAAP) to Adjusted Net Income (Loss)
Applicable to Common Stockholders
(dollars and ounces in thousands, except per share amounts - unaudited)

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.

HECLA MINING COMPANY
Reconciliation of Adjusted EBITDA to Generally Accepted Accounting Principles (GAAP)
(dollars and ounces in thousands, except per share amounts - unaudited)

This release refers to a non-GAAP measure of Adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), which is a measure of our operating performance. Adjusted EBITDA is calculated as net income before the following items: interest expense, income tax provision, depreciation, depletion, and amortization expense, exploration expense, pre-development expense, Aurizon acquisition costs, Lucky Friday suspension-related 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 . Management believes that, when presented in conjunction with comparable GAAP measures, Adjusted EBITDA is useful to investors in evaluating our operating performance. The following table reconciles net income to Adjusted EBITDA:

Table A - Assay Results - Q1 2015

Note: All assay intervals represent true widths of drill core with the exception of the results from Greens Creek. At Greens Creek the assay intervals represent the horizontal width because the mineralized bodies are very irregular in shape and in most cases this is the best approximation for true width.