Hecla Declares Preferred Dividends and Provides Update on Mandatory Conversion of Preferred Stock

Hecla Mining Company (NYSE:HL)
today announced its Board of Directors has elected to declare the
regular quarterly dividend of $0.875 per share on the outstanding Series
B Cumulative Convertible Preferred Stock and the final quarterly
dividend of $1.625 per share on the outstanding 6.5% Mandatory
Convertible Preferred Stock, which will also automatically convert into
shares of common stock on January 1, 2011.

The regular quarterly dividend of $0.875 per share, on a total of
157,816 shares outstanding of the Series B Cumulative Convertible
Preferred Stock, represents a total amount to be paid of approximately
$138,000. The cash dividend is payable January 1, 2011, to shareholders
of record on December 15, 2010.

The Board of Directors also elected to declare the regular and final
quarterly dividend on the outstanding 6.5% Mandatory Convertible
Preferred Stock in the amount of $1.625 per share, for a total amount of
approximately $3.27 million. The cash dividend is payable January
1,  2011, to shareholders of record on December 15, 2010. There are a
total of 2,012,500 shares of the 6.5% Mandatory Convertible Preferred
Stock outstanding.

Hecla′s 6.5 Mandatory Convertible Preferred Stock automatically converts
on January 1, 2011, into between approximately 17.0 million and 20.7
million shares of common stock, or between 8.4502 and 10.3093 shares on
a per share basis. The conversion rate depends on the average closing
market price of Hecla's common stock over the 20-trading-day period
beginning on December 1, 2010 and ending on December 28, 2010. If the
average closing market price of Hecla's common stock is above $11.83,
then the conversion ratio will be 8.4502. If the average closing market
price of Hecla's common stock is below $9.70, then the conversion ratio
will be 10.3093. For average Hecla common stock prices greater than or
equal to $9.70 and less than or equal to $11.83 during the
20-trading-day period, the conversion ratio will be equal to $100
divided by Hecla's average closing common stock price during such period.

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.

Hecla Mining Company

M?nie Hennessey

Vice President -
Investor Relations

Direct: 604-694-7729

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

Email: hmc-info@hecla-mining.com

Website:
www.hecla-mining.com