Hecla Announces Terms for Mandatory Conversion of Preferred Stock

Hecla Mining Company (NYSE:HL)
today announced its conversion rate for its 6.5% Mandatory Convertible
Preferred Stock (the 'Preferred Stock?), which automatically converts
into shares of Hecla′s common stock on January 1, 2011.

Under the terms of the Preferred Stock, the conversion rate will be
9.3773, which is the number of shares of common stock into which each
share of Preferred Stock will convert. No fractional shares of Hecla′s
common stock will be issued as a result of the conversion. Holders of
fractional shares will receive cash based upon the average closing price
of Hecla′s common stock over the five trading days preceding December
31, 2010. All of the outstanding shares of Preferred Stock will
automatically convert into common stock; therefore, no action by
Preferred Stock holders is required. Shares of the Preferred Stock will
be delisted from the NYSE and will cease to trade at the close of
business on December 30, 2010. A Notice of Conversion will be mailed to
each registered holder of the Preferred Stock as of January 1, 2011.
Such notice will include instructions for transmitting existing
Preferred Stock certificates to receive new common stock certificates.

Hecla will issue approximately 19 million shares of common stock in
connection with the mandatory conversion of the Preferred Stock on
January 1, 2011. After giving effect to this transaction, Hecla will
have approximately 278 million shares of common stock outstanding.

Holders of Preferred Stock on the December 15, 2010 record date will
also receive the previously announced final quarterly cash dividend
$1.625 per share, or approximately $3.27 million in the aggregate.

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, 604-694-7729

Vice
President ? Investor Relations

hmc-info@hecla-mining.com

Toll-free:
1-800-432-5291

www.hecla-mining.com