NYSE HL: $5.12 -0.11 SILVER: US $22.42 +0.04 GOLD: US $1767.85 -14.10 Investors: 800.432.5291 Français Legal/Privacy Careers Contact Responsible Mining Investors Quality Assets News & Events Our Company Overview Operating Mines Alaska, USA Idaho, USA Lucky Friday Overview & History Geology & Mining Production Reserves & Resources Exploration Future Plans #4 Shaft Quebec, Canada Pre-Development Exploration Lucky Friday Mullan, Idaho Lucky Friday is a deep underground silver, lead, and zinc mine located in the Coeur d’Alene Mining District in northern Idaho. The mine began operating in 1942 and celebrated its 75th anniversary in 2017. Thanks to the #4 Shaft project which is now complete and operational, the mine is expected to have another 20-30 years of mine life. Lucky Friday is located one mile east of Mullan, Idaho, and is adjacent to U.S. Interstate 90. The Lucky Friday union members ratified the collective bargaining agreement in January 2020; a ramp-up to full production was reached in the fourth quarter of 2020. In 2020, the mine, while not in full production the entire year, produced 2.0 million ounces of silver. In 2021, the mine is expected to produce 3.4 to 3.8 million ounces of silver at a cash cost, after by-product credits, per silver ounce of $7.75 to $9.75 (a non GAAP measure) (1). (1) Cash cost, after of by-product credits, per silver ounce represents a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) can be found in the legal page of this website. Overview & History The Lucky Friday mine is a deep underground silver, lead, and zinc mine located in the Coeur d’Alene Mining District in northern Idaho. Hecla now controls 100% of the Gold Hunter deposit, also known as the Lucky Friday Expansion Area, after completing acquisition from Independence Lead Mines Company in the 4th quarter of 2008. The mine is located approximately one mile east of Mullan, in Shoshone County, North Idaho, and 55 miles east of Coeur d’Alene, Idaho, along Interstate 90 (I-90). The facility lies just north of the interstate near exit ramp 69. The Silver Shaft head frame can be easily observed from I-90 with the shaft collar approximately 70 feet above the valley floor. The Lucky Friday vein system is immediately adjacent to the Silver Shaft and the Gold Hunter deposit lies 5,000 feet northwest of the Silver Shaft. In 2016, ore was processed at an average rate of 803 tons per day and produced 3.6 million ounces of silver. The #4 Shaft Project, a key growth project, is now operational. Reaching 9,600 feet below the surface, the #4 Shaft is an important part of Lucky Friday’s future as it provides access to the highest-grade ore in the mine’s 75-year history and should extend the mine life for 20-30 more years. The plant has a full surface facility complete with a 1,000 tons of ore per day mill, which produces lead and zinc concentrates. These concentrates are currently shipped for treatment via truck to Teck Cominco Metals Ltd. smelter in Trail, BC, Canada. All production is by underground methods, which include both underhand and overhand mining. The coarse mill tailing is mixed with cement and used as backfill. Production is via ramps and transfers, and substantially utilizes jumbo drills, mechanized mining, and truck haulage to the Silver Shaft. Access to the underground workings is via the 18-foot diameter, concrete lined, Silver Shaft. Geology & Mining There have been two ore-bearing structures mined at the Lucky Friday unit. The first, mined through 2001, was the Lucky Friday vein, a fissure vein typical of many in the Coeur d’Alene Mining District. The orebody is located in the Revett Formation, which is known to provide excellent host rocks for a number of orebodies in the Coeur d’Alene Mining District. The Lucky Friday vein strikes northeasterly and dips steeply to the south with an average width of six to seven feet. Its principal ore minerals are galena and tetrahedrite with minor amounts of sphalerite and chalcopyrite. The ore occurs as a single continuous orebody in and along the Lucky Friday vein. The major part of the orebody has extended from the 1,200-foot level to and below the 6,020-foot level. The second ore-bearing structure, known as the Lucky Friday Expansion Area, is located in the Wallace Formation. It has been mined since 1997 pursuant to an operating agreement with Silver Hunter Mining Company (“Silver Hunter”), our wholly owned subsidiary. During 1991, we discovered several mineralized structures containing some high-grade silver ores in an area known as the Gold Hunter property, approximately 5,000 feet northwest of the then existing Lucky Friday workings. This discovery led to the development of the Gold Hunter property on the 4900 level. On November 6, 2008, we, through Silver Hunter, completed the acquisition of substantially all of the assets of Independence Lead Mines Company (“Independence”), including all future interest or royalty obligations to Independence and the mining claims pertaining to the operating agreement with Hecla Limited that was assigned to Silver Hunter. The principal mining method at the Lucky Friday unit is ramp access, cut and fill. This method utilizes rubber-tired equipment to access the veins through ramps developed outside of the orebody. Once a cut is taken along the strike of the vein, it is backfilled with cemented tailings and the next cut is accessed, either above or below, from the ramp system. There are three main phases to the mining process: development, production, and backfilling. development – the tunneling or accessing phase Using plans from the geology and engineering departments, miners drive tunnels 12ft high by 12ft wide to access the various ore zones to be mined. production – the extraction phase The method of extraction depends upon the geological nature of the orebody involved. Some of the narrower orebodies can be extracted using conventional mining methods (slushers and jackleg drills), mining as narrow as three feet. In other, more massive orebodies, mechanized mining methods are employed using large rubber-tired equipment to mine widths of up to 20 feet. backfilling – the replacement phase The voids created during the production phase are filled up with a combination of mill waste (tailings) and cement. This “backfilling” process stabilizes the production voids and allows extraction of the ore beside, above, and even below the backfilled area. Production (years ended December 31) 2016 2017 2018 2019 2020 Silver (ounces) 3,596,010 838,658 169,041 632,944 2,031,874 Lead (tons) 21,876 4,737 1,131 4,098 12,727 Zinc (tons) 10,787 2,560 673 2,052 6,298 Cash cost per ounce of silver, after by-product credits, ($/oz) (1) $8.89 $5.81 n/a n/a n/a (footnotes) Year-End Production PDF Reserves & Resources Information with respect to proven and probable ore reserves, measured, and inferred resources is set forth below. (As of December 31, 2020 unless otherwise noted) Tons Silver Gold Lead Zinc Silver Gold Lead Zinc (000) (oz/ton) (oz/ton) (%) (%) (000 oz) (000 oz) (Tons) (Tons) Proven Reserves (1,2) 4,393 14.2 - 8.8 4.1 62,290 - 386,210 180,060 Probable Reserves (1,2) 1,372 10.7 - 7.2 3.9 14,702 - 99,170 53,190 Proven and Probable Reserves 5,764 13.4 - 8.4 4.0 76,992 - 485,380 233,250 Measured Resources (3,4) 9,007 7.6 - 4.8 2.4 68,543 - 30,950 218,740 Indicated Resources (3,4) 2,275 7.8 - 5.3 2.2 17,844 - 120,390 50,970 M&I Resources 11,282 7.7 - 4.9 2.4 86,386 - 551,340 269,710 Inferred Resources (3,4) 3,069 8.3 - 6.3 2.7 25,359 - 192,200 83,350 (footnotes) 2020 Reserves & Resources PDF Exploration At Lucky Friday in 2020, the 179,208 tons processed at the mill contained approximately 2.0 ounces of silver, 12,727 tons of lead, and 6,298 tons of zinc. Proven and probable reserves are currently 77.0 million ounces of silver, 485,380 tons of lead and 223,520 tons of zinc. Measured and indicated resources are 86.4 million ounces for silver, 551,340 tons for lead and 269,710 tons for zinc. Inferred resources include 25.4 million ounces of silver, 192,200 tons of lead, and 83,350 tons of zinc. Future Plans Our goal is to access more resource to further extend the mine life at Lucky Friday. Currently, we believe only one-third of the tons and one-half of the ounces that are contained underground at Lucky Friday are in the current mine life. Hecla sees great organic growth opportunities at Lucky Friday. #4 Shaft The #4 Shaft project, an internal shaft at the Lucky Friday mine, is now operational and expected to provide deeper access in order to increase the mine’s production and operational life. The #4 Shaft Project, a key growth project, reaches 9,600 feet below the surface, and is an important part of Lucky Friday’s future as it provides access to the highest-grade ore in the mine’s 75-year history and should extend the mine life for 20-30 more years. Investor Kit Annual Report Corporate Presentation Investor Fact Sheet Receive Email Alerts Quarterly Results 11.04.2021 Hecla Reports Third Quarter 2021 Results view all Current News 11.29.2021 Hecla to Participate in Upcoming Investment Conferences view all subscribe Events & Webcasts 12.01.2021 Hecla Mining Company at Scotiabank Mining Conference view all © 2021 Hecla Mining Company