Annual Meeting of Shareholders May 15, 2013 H E C L A M I N I N G - PowerPoint PPT Presentation

H E C L A K E Y E V E N T S S T R AT E G Y R E S U L T S Annual Meeting of Shareholders May 15, 2013

H E C L A M I N I N G C O M P A N Y Cautionary Statements Cautionary Note Regarding Forward Looking 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. Refer to our Form 10-K and 10-Q reports for a more detailed discussion of factors that may impact expected future results. We undertake no obligation to update forward-looking statements other than as may be required by law. Cautionary Note Regarding Estimates of Measured, Indicated and Inferred Resources The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this presentation, such as “resource,” “measured resources,” “indicated resources,” and “inferred resources” that are recognized by Canadian regulations, but that SEC guidelines generally prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our most recent Form 10-K and Form 10-Q. You can review and obtain copies of these filings from the SEC’s website at www.sec.gov. Qualified Person (QP) Pursuant to Canadian National Instrument 43-101 All disclosures of a technical or scientific nature in this press release have been reviewed and approved by Dean McDonald, P.Geo., Vice President Exploration of Hecla Mining Company, who serves as a Qualified Person under National Instrument 43-101. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of analytical or testing procedures for the Greens Creek Mine are contained in a technical report titled “Technical Report for the Greens Creek Mine” dated March 28, 2013 and for the Lucky Friday Mine are contained in a technical report titled “Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA” dated March 28, 2013. Copies of these two technical reports are available under Hecla's profile on SEDAR at www.sedar.com. Cautionary Note Regarding Non-GAAP measures Total cash cost per ounce of silver and earnings before adjustments represents non-U.S. Generally Accepted Accounting Principles (GAAP) measurement. A reconciliation of total cash cost to cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) can be found in the Appendix. 2 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Key Events in Hecla’s History 3 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Hecla's #2 Certificate: 1891 4 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Hecla & Star Morning Mine: 1920s 5 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Lucky Friday Mine (1947) Acquired in 1958 6 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Construction of Silver Shaft: 1980-1983 7 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Construction of Silver Shaft: 1980-1983 8 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Acquisition of 30% of Greens Creek: 1987 9 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Acquisition of Venezuelan & Mexican Assets: 1999 La Camorra Mine 10 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Our Strategy Since 2000 11 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y 1. Increase the Known Reserves and Resources and Production at the Lucky Friday 12 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Lucky Friday: 2003 Lucky Friday 3000 El Workings Expansion Area 1200 Level 2000 El Long Section Looking Silver 1000 El Shaft North 3050 Level Expansion Sea Level Area 4050 Level - 675 El - 1000 El 4900 Level Mined Area - 2000 El Planned Total Resources 5900 Level 13 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Lucky Friday Expansion Potential: 2007 4900 Level 5900 Level 14 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Looking Forward Silver Shaft 30 Vein # 4 Shaft 4050 level 4900 level Current mining from 5900 level access 5900 level 6500 level 7500 level Looking NW 15 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Pro-forma Reserve Growth 2003-2012 Silver ounces (millions) Gold ounces (millions) (1) 3.8 150 233% 375% 45 0.8 2003 2012 2003 2012 1. Includes Aurizon’s reserves for 2012. 16 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y 2. Acquired Greens Creek and Consolidate into Mining-Friendly Jurisdictions 17 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Transforming Transactions  On April 16, 2008, Hecla completed the acquisition of 70.3% of the Greens Creek joint venture, increasing our ownership interest to 100%  Funded with $700 million in cash and approximately $50 million in common stock  Gives Hecla control of 100% of the fifth largest silver mine in the world  Nearly doubles Hecla’s annual silver production to approximately 11 million ounces  Significantly increases cash flow from operations  Maintains Hecla’s already low average cash costs per ounce of silver relative to peers  On July 8, 2008, Hecla completed the sale of its Venezuelan properties to Rusoro Mining for $25 million  Consideration consisted of $20 million in cash and approximately 4.3 million shares of Rusoro Mining common stock 18 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y High Quality Assets Silver Reserves and Grades of Primary Silver Mines 120 500 450 Silver Reserves - Moz 100 400 Silver Grade - g/t 350 80 300 60 250 200 40 150 100 20 50 0 0 San Cristobal (SMM)* San Cristobal (50%)* Pitarilla (SSRI)* San Bartolome (CDE)* Greens Creek (HL) Pirquitas (SSRI)* Ying (SVM) Huaron (PAA) Lucky Friday (HL) Palmarejo (CDE)* Rochester (CDE)* La Colorada (PAA) Morococha (PAA) La Parrilla (FR) La Encantada (FR) San Vicente (PAA) Manantial Espejo (PAA) Alamo Dorado (PAA)* Arcata (HOC) Pallancata (HOC) GC (SVM) San Jose (HOC) San Luis (SSRI) Reserves Grades Peer-leading Silver Grade Profile Results in Low-cost, High-margin Production Public filings, *Open pit mines – Palmarejo is both open pit 2013 Annual Meeting of Shareholders 19 and underground.

H E C L A M I N I N G C O M P A N Y Greens Creek - Silver Production up 34%  Produced approx. 200 million ounces of silver and 1.5 million ounces of gold since startup in 1989  6.4 million ounces of silver production in 2012, with steady production increases during course of the year  Q1 silver production of 1.8 million ounces, up 34% from a year ago  Avg. Q1 cash cost of $5.02 per ounce  Rehabilitation begins on 29 Ramp, as part of East Ore project  Mine life est. 10 years+ 20 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Greens Creek - Deep Southwest Southwest Lower Bench Southwest Deep Southwest Location View Looking North 200 South Model 500 Feet View Looking North/Northwest 21 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Lower Political Risk Revenue Sources 2001 Revenue 2011 Pro-forma Revenue¹ Mexico 9% United Canada States 33% 42% United States Venezuela 67% 49% 1. Includes Aurizon assets 22 2013 Annual Meeting of Shareholders

H E C L A M I N I N G C O M P A N Y Multiple Revenue Streams  Base Metals Hedging Hecla Standalone Pro Forma  Policy is to hedge up to 60% of Proven and Probable Reserves (1) the next three years’ production of lead and zinc  Locking in revenue to cover costs 2011 Revenue by Metals  Currently, base metals hedging offsets approximately 50% of cash operating costs at Lucky Friday and Greens Creek for next 3 years 2011 Revenue by Mines  100% unhedged exposure to silver and gold Diversified, multi-metal, multi-revenue mining company 1. Reserves as of December 31, 2012. 23 2013 Annual Meeting of Shareholders