Hecla Introduces Silver-Linked Dividend Policy

Hecla Mining Company ('Hecla?)(NYSE:HL)
is very pleased to announce that its Board of Directors has adopted a
common stock dividend policy that links dividend payments to Hecla′s
average quarterly realized silver price in the preceding quarter.

The initial quarterly dividend under the policy is expected to be $0.03
per share of common stock ($0.12 per year), if Hecla′s average realized
silver price for the third quarter is $40.00 per ounce. All dividends,
including those in the third quarter, would increase or decrease by
$0.01 per share ($0.04 annually) for each $5.00 per ounce incremental
increase or decrease in the average realized silver price in the
preceding quarter. Subject to Board approval, it is expected that the
initial quarterly dividend under this policy will be declared and
payable before the end of the fourth quarter and will be based on
average realized silver prices during the third quarter 2011. The table
below provides an overview of the new dividend policy.

'Our Board′s action to adopt this dividend policy reflects our strong
operating performance and high silver margins, each of which has
strengthened our financial and liquidity position,? said Hecla′s
President and Chief Executive Officer, Phillips S. Baker, Jr. 'This
policy allows us to continue to invest in projects that are expected to
grow silver production by 50% in the next five years, evaluate external
growth opportunities, continue to strengthen our balance sheet, and now
provide cash returns to stockholders.?

Hecla has a strong balance sheet with $377 million in cash and cash
equivalents as of June 30, 2011 and no debt. In addition, the Company
also has low cash costs and excellent silver margins. During the first
half of 2011, Hecla generated $127 million of operating cash flow. Hecla
has sufficient cash on hand to fulfill our settlement obligations, meet
all capital, pre-development, and exploration requirements for 2011, and
pursue other value generating initiatives for our shareholders.

The declaration and payment of dividends remains at the sole discretion
of the Board of Directors and will depend on Hecla′s financial results,
cash requirements (including for preferred dividends, operations,
capital projects, exploration and development, litigation and
settlements, acquisitions, and other items), future prospects and other
factors deemed relevant by the Board. Investors are cautioned that this
new policy is not a guarantee that a dividend will be declared or paid
in any particular period in the future.

Visit Hecla′s new website at www.hecla-mining.com
which includes more in-depth information about the company, our people,
our properties, interesting historical and silver facts, social
responsibility initiatives and accomplishments, and a detailed investor
section.

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 strategies,
plans, anticipated payments, litigation outcome (including settlement
negotiations), 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. Words such as 'may?, 'will?, 'should?, 'expects?,
'intends?, 'projects?, 'believes?, 'estimates?, 'targets?, 'anticipates?
and similar expressions are used to identify these forward-looking
statements. Forward-looking statements 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, environmental and litigation
risks, operating risks, project development risks, political risks,
labor issues, ability to raise financing and exploration risks and
results. Refer to the company's Form 10-K and 10-Q 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.

For further information, please contact:

Hecla Mining Company

Vice President ? Investor Relations

M?lanie
Hennessey, 604-694-7729

Direct Main: 800-HECLA91 (800-432-5291)

hmc-info@hecla-mining.com

www.hecla-mining.com