Hecla Provides Update on the Lucky Friday #4 Shaft Project

Hecla Mining Company (NYSE:HL)
('Hecla') today provided an update on the #4 Shaft Project at its Lucky
Friday mine in Mullan, Idaho, which Hecla believes could increase the
mine′s annual silver production by approximately 50% from current levels
and extend the mine life beyond 2030. Total estimated capital
expenditures for the #4 Shaft Project could range from $150 and $200
million, for an internal shaft descending from the 4900 level to the
7800 level. Engineering is underway to determine the feasibility of
constructing the shaft to an ultimate depth of 8800 feet.

Since project inception in 2007, Hecla′s Board of Directors has approved
approximately $55  million of capital expenditures for prefeasibility,
feasibility, front-end engineering and design, and early-phase
development of the #4 Shaft Project. By year-end 2010, $50 million will
have been invested in the detailed engineering and design of the shaft,
excavation of the hoist room and off-shaft development access to shaft
facilities, and placement of orders for major equipment.

Hecla management currently expects to make a final technical and
commercial feasibility determination and seek final approval by the
Board of Directors for completion of the #4 Shaft Project no later than
the middle of 2011. If approved, Hecla estimates that the project would
be completed by the end of 2014.

'This is a major milestone in the mine's history and we are very excited
about the organic growth opportunity at Lucky Friday,' said Phillips S.
Baker, Jr., President and Chief Executive Officer. 'The mine has been in
production for more than 68 years and we believe that it may extend much
further into the future with the addition of the #4 Shaft. With no debt
and approximately $200 million of cash on hand at June 30, 2010, Hecla
is currently well positioned to fund all of its capital requirements
internally.'

Project Update

The development of a new #4 Shaft and related infrastructure at Lucky
Friday, when completed, would increase annual silver production from
current levels of approximately 3 million ounces to 5 million ounces,
with an expected average total cash cost of less than $4.00* per ounce
of silver in the first five years of operation. The two key drivers for
this potential increase of silver production are: 1) ore grade is
expected to increase from the current grade of 10.4 ounces of silver per
ton to over 14  ounces of silver per ton (a corresponding increase in
lead ore grade is also expected); and 2) mill throughput of ore is
expected to increase from approximately 350 thousand tons to
375  thousand tons annually.

^{*Total cash costs per ounce of silver represent non-U.S. Generally
Accepted Accounting Principles (GAAP) measurements. A reconciliation of
total cash costs to cost of sales and other direct production costs and
depreciation, depletion and amortization (GAAP) can be found at the
bottom of the release.}

The company has made good progress on preliminary construction
activities. Excavation of the hoist room was completed ahead of schedule
in the third quarter of 2010 and the foundations for the main production
hoist are currently being constructed. Off-shaft development is planned
at multiple locations between the 4700 and 7500 levels.

Major long-lead equipment items received to date include the permanent
hoist, underground concrete trucks, and temporary sinking plant
facilities.

Expected #4 Shaft Project key development milestones are as follows:

Project Capital Update & Valuation

The total capital investment required to complete the #4 Shaft Project
is estimated to be between $150 to $200 million, for a shaft descending
from the 4900 level to the 7800 level. By year-end, the company will
have invested approximately $50 million since project inception in 2007.
Assuming Board authorization for completion of the #4 Shaft Project, the
balance of the capital requirement ($100 to $150 million) would be
distributed over the next four years, with 2011, 2012 and 2013 being the
more capital intensive years. The Company believes that cash on hand
combined with free cash flow from existing operations should be
sufficient to fund completion of the #4 Shaft Project. Included below
are indicative project valuation metrics based on metals prices of
$15.00 per ounce of silver and $0.80 per pound of lead and zinc:

The IRR(pretax) decreases to 11% at $11 silver and $0.80 lead and zinc.
At recent prices of $23 silver and $1.10 lead and zinc, the IRR(pretax)
increases to 40%.

For a short video showing the Lucky Friday mine ore body and shaft
development in 3-D and latest photographs from the site, please visit www.hecla-mining.com
and click on Properties/Lucky
Friday.

About Hecla

Established in 1891, Hecla Mining Company is the largest and lowest cash
cost silver producer in the U.S. The company has two operating mines and
exploration properties in four world-class silver mining districts in
the U.S. and Mexico.

Cautionary Statements

Statements made which are not historical facts, such as anticipated
payments, litigation outcome, production, sales of assets, exploration
results and plans, costs, and prices or sales performance are
'forward-looking statements' within the meaning of the Private
Securities Litigation Reform Act of 1995, and involve a number of risks
and uncertainties that could cause actual results to differ materially
from those projected, anticipated, expected or implied. These risks and
uncertainties include, but are not limited to, metals price volatility,
volatility of metals production and costs, exploration risks and
results, operating risks, project development risks, environmental and
litigation risks, political risks, labor issues and ability to raise
financing. Refer to the company's Form 10-Q and 10-K reports for a more
detailed discussion of factors that may impact expected future results.
The company undertakes no obligation and has no intention of updating
forward-looking statements other than as may be required by law.

Total Cash Cost Reconciliation

Total cash costs per ounce of silver represent non-U.S. Generally
Accepted Accounting Principles (GAAP) measurements. A reconciliation of
total cash costs to cost of sales and other direct production costs and
depreciation, depletion and amortization (GAAP) can be found below for
the five-year forecast period cited above.

Hecla Mining Company

M?nie Hennessey, Vice President ? Investor
Relations, 604-694-7729

Toll-free: 1-800-HECLA(43252)-91

Email:
hmc-info@hecla-mining.com

Website:
www.hecla-mining.com