Business Wire | Nov 9, 2020 03:30AM EST

Hecla Reports Third Quarter 2020 Results

Nov. 09, 2020

COEUR D'ALENE, Idaho--(BUSINESS WIRE)--Nov. 09, 2020--Hecla Mining Company (NYSE:HL) today announced third quarter 2020 financial and operating results.

THIRD QUARTER HIGHLIGHTS

* Sales of $199.7 million, 24% more than the prior year quarter * Silver production of 3.5 million ounces and gold production of 41,174 ounces * Lucky Friday ramp-up ahead of schedule * Generated $73.4 million of cash provided by operating activities and $49.7 million of free cash flow4 * Reported $98.7 million of cash and cash equivalents with $348.7 million of liquidity2 * Record adjusted EBITDA and improved net debt/adjusted EBITDA (last 12 months) of 1.7x1,3 * Increased dividend 50% and approved the payment of the first enhanced silver-linked dividend * Increased 2020 annual silver production guidance and reduced silver cost guidance

"Because of our strong operating performance and higher prices, Hecla had record adjusted EBITDA, generated the most free cash flow in a decade and repaid our revolver in full. These accomplishments were achieved because of our workforces' resiliency and our commitment to health and safety," said Phillips S. Baker, Jr., President and CEO. "With the Lucky Friday ramp-up ahead of schedule, the expected improvements at Casa Berardi, and our modest planned capital expenditures, we are well positioned to further strengthen our balance sheet, increase exploration activities, and pay our enhanced dividend."

FINANCIAL OVERVIEW

Third Quarter Ended Nine Months Ended

HIGHLIGHTS 2020 2019 2020 2019

FINANCIAL DATA (000)

Sales $ 199,703 $ 161,532 $ 502,983 $ 448,321

Gross profit (loss) $ 53,488 $ 14,880 $ 98,939 ($ 1,919 )

Income (loss) applicable to $ 13,490 ($ 19,654 ) ($ 17,999 ) ($ 91,995 )common shareholders

Adjusted income (loss)applicable to common $ 24,234 ($ 11,801 ) $ 10,085 ($ 66,798 )shareholders^1

Adjusted EBITDA ^1 $ 75,701 $ 69,786 $ 168,531 $ 112,503

Cash provided by operating $ 73,439 $ 54,896 $ 115,892 $ 63,609 activities

Capital expenditures $ 23,693 $ 26,093 $ 54,382 $ 97,338

Free cash flow ^4 $ 49,746 $ 28,803 $ 61,510 ($ 33,729 )

Net income applicable to common shareholders for the third quarter was $13.5 million, or $0.03 per share, compared to net loss of $19.7 million, or $0.04 per share, for the same period a year ago. The difference was mainly due to the following items:

* Improved gross profit at Greens Creek, Nevada Operations and San Sebastian, partially offset by slightly lower gross profit at Casa Berardi. Combined, our operations generated $38.6 million more gross profit. * Higher other operating expense by $3.1 million primarily due to costs for an ongoing project to identify and implement potential operational improvements at Casa Berardi. * Lower ramp-up and suspension-related costs by $2.2 million due to increased production and margins at Lucky Friday. * Unrealized gains on equity investments of $4.0 million compared to losses of $0.1 million in the prior year period.

Cash provided by operating activities was $73.4 million compared to $54.9 million in the third quarter of 2019, with the increase due to higher income, adjusted for non-cash items.

Adjusted EBITDA was $75.7 million compared to $69.8 million in the third quarter of 2019.

Capital expenditures totaled $23.7 million for the third quarter 2020 compared to $26.1 million in the third quarter of 2019, with the decrease due to planned lower expenditures at the operations in 2020 with the exception of Lucky Friday, where we have been returning the mine to full production. Expenditures at the operations were $11.6 million at Casa Berardi, $5.6 million at Greens Creek, $5.5 million at Lucky Friday, $0.4 million at Hecla Nevada, and $0.2 million at San Sebastian.

Metals Prices

The average realized silver price in the third quarter 2020 was 39% higher quarter over quarter and the average realized gold price was 31% higher. The realized zinc price increased by 7%, while the realized lead price decreased by 8%. Based on the realized silver price for the quarter of $25.32 per ounce, a silver price-linked dividend of $0.005 per common share was triggered.

Three Months Ended Nine Months Ended September 30, September 30,

2020 2019 2020 2019

Silver London PM Fix ($/ounce) $ 24.40 $ 17.02 $ 19.22 $ 15.83 -

Realized price per ounce $ 25.32 $ 18.18 $ 19.72 $ 16.21

Gold - London PM Fix ($/ounce) $ 1,911 $ 1,474 $ 1,735 $ 1,363

Realized price per ounce $ 1,929 $ 1,475 $ 1,745 $ 1,374

Lead - LME Final Cash Buyer ($/ $ 0.85 $ 0.92 $ 0.81 $ 0.90 pound)

Realized price per pound $ 0.86 $ 0.93 $ 0.81 $ 0.90

Zinc - LME Final Cash Buyer ($/ $ 1.06 $ 1.06 $ 0.97 $ 1.18 pound)

Realized price per pound $ 1.04 $ 0.97 $ 0.94 $ 1.16

OPERATIONS OVERVIEW

Overview

The following table provides the production summary on a consolidated basis for the third quarter and nine months ended September 30, 2020 and 2019:

Third Quarter Ended Nine Months Ended

2020 2019 2020 2019

PRODUCTION SUMMARY

Silver - Ounces produced 3,541,371 3,251,350 10,190,621 9,193,246

Payable ounces sold 3,147,048 2,232,691 9,077,966 7,549,360

Gold - Ounces produced 41,174 77,311 159,948 198,100

Payable ounces sold 51,049 69,760 159,550 189,823

Lead - Tons produced 9,750 6,107 24,620 17,406

Payable tons sold 7,792 3,817 19,948 12,628

Zinc - Tons produced 17,997 15,413 48,699 42,672

Payable tons sold 12,892 7,878 34,717 27,234

The following tables provide a summary of the (i) final production; (ii) cost of sales and other direct production costs and depreciation, depletion and amortization ("cost of sales"); (iii) cash cost, after by-product credits, per silver or gold ounce; and (iv) all in sustaining costs ("AISC"), after by-product credits, per silver or gold ounce for the third quarter and nine months ended September 30, 2020, with comparisons to the prior year periods:

Third LuckyQuarter Greens Creek Friday San Sebastian Casa Berardi Nevada OpsEnded

Sept 30, Silver Gold Silver Gold Silver Silver Gold Gold Silver Gold Silver2020

Production 3,541,371 41,174 2,634,436 12,838 636,389 266,691 1,931 26,405 3,855 0 0 (ounces)

Increase/(decrease) 290,021 (36,137 ) 90,418 (846 ) 520,707 (274,945 ) (2,768 ) (10,142 ) (2,782 ) (22,381 ) (43,377 )over 2019

Cost ofsales &otherdirect $78,517 $67,698 $51,057 - $21,500 $5,960 - $53,821 - $13,877 - productioncosts anddd&a (000)

Increase/ $(decrease) $21,182 $(21,619 ) $10,582 - $17,482 $(6,882 ) - $815 - (22,434 ) - over 2019

Cashcosts,afterby-prod $4.43 $1,398 $4.12 - - $7.53 - $1,398 - - - credits,per silveror goldounce ^5,6

Increase/(decrease) $2.09 $488 $2.07 - - $3.83 - $432 - - - over 2019

AISC,afterby-prodcredits, $11.53 $1,855 $7.70 - - $8.87 - $1,855 - - - per silveror goldounce ^7

Increase/(decrease) $2.64 $642 $1.65 - - $1.66 - $506 - - - over 2019



Nine LuckyMonths Greens Creek Friday San Sebastian Casa Berardi Nevada OpsEnded

Sept 30, Silver Gold Silver Gold Silver Silver Gold Gold Silver Gold Silver2020

Production 10,190,621 159,948 8,164,062 38,215 1,201,674 772,158 6,064 83,913 15,284 31,756 37,443 (ounces)

Increase/(decrease) 997,375 (38,152 ) 1,015,027 (3,054 ) 785,218 (674,292 ) (5,712 ) (15,703 ) (5,757 ) (13,683 ) (122,821 )over 2019

Cost ofsales andotherdirect $211,968 $192,076 $157,910 - $35,787 $18,271 - $147,728 - $44,348 - productioncosts anddd&a (000)

Increase/ $(decrease) $24,244 $(70,440 ) $17,673 - $24,638 $(18,067 ) - $(9,511 ) - (60,929 ) - over 2019

Cashcosts,afterby-prod $5.08 $1,053 $4.99 - - $5.93 - $1,181 - $716 - credits,per silveror goldounce ^5,6

Increase/(decrease) $2.38 $(36 ) $3.32 - - $(1.84 ) - $126 - $(449 ) - over 2019

AISC,afterby-prodcredits, $10.59 $1,299 $7.57 - - $6.76 - $1,493 - $787 - per silveror goldounce ^7

Increase/(decrease) $0.89 $(220 ) $2.29 - - $(5.38 ) - $120 - $(1,054 ) - over 2019

Greens Creek Mine - Alaska

At the Greens Creek Mine, 2.6 million ounces of silver and 12,838 ounces of gold were produced, compared to 2.5 million ounces and 13,684 ounces, respectively, in the third quarter of 2019. Higher silver production was a result of slightly higher ore production and grades. The mill operated at an average of 2,340 tons per day (tpd) in the third quarter, a similar throughput as the third quarter of 2019.

The cost of sales for the third quarter was $51.1 million, and the cash cost, after by-product credits, per silver ounce, was $4.12, compared to $40.5 million and $2.05, respectively, for the third quarter of 2019.5,6 The AISC, after by-product credits, was $7.70 per silver ounce for the third quarter compared to $6.05 in the third quarter of 2019.7 The per ounce silver cash costs were higher primarily due to higher treatment costs resulting from unfavorable changes in smelter terms and COVID-19 mitigation costs. AISC was also higher due to these factors, partially offset by lower capital spending.

Lucky Friday Mine - Idaho

At the Lucky Friday Mine, 636,389 ounces of silver were produced, compared to 115,682 ounces in the third quarter of 2019. The mine has continued normal operations during the pandemic, with the ramp-up ahead of schedule. Lucky Friday, starting in the fourth quarter, will achieve full production with estimated annual production in excess of 3 million ounces of silver in 2021.

Underground testing and modification of the Remote Vein Miner (RVM) continued in Sweden, but with limitations due to COVID-19. In parallel, the Company is testing alternative mining methods to increase productivity at the mine.

Casa Berardi Mine - Quebec

At the Casa Berardi Mine, 26,405 ounces of gold were produced, including 6,800 ounces from the East Mine Crown Pillar (EMCP) pit compared to 36,547 ounces in the third quarter of 2019. The decrease is primarily due to lower mill throughput resulting from longer than planned down time of major mill maintenance activities, along with lower ore grades due to a delay in the availability of higher-grade underground stopes as a result of ground condition challenges. We anticipate ore from these higher-grade stopes to be mined and processed in the fourth quarter. The mill operated at an average of 3,138 tpd in the third quarter, a decrease of 14% over the third quarter of 2019.

The cost of sales was $53.8 million and the cash cost, after by-product credits, per gold ounce was $1,398, compared to $53.0 million and $966, respectively, in the prior year period.5,6 The increase in cash cost, after by-product credits, per gold ounce is primarily due to the lower gold production from the longer than scheduled major mill repairs and two high-grade long hole stopes being delayed in the third quarter. These same factors, partially offset by lower capital and exploration spending, resulted in AISC, after by-product credits, of $1,855 per gold ounce compared to $1,348 in the third quarter of 2019.7

San Sebastian Mine - Mexico

At the San Sebastian Mine, 266,691 ounces of silver and 1,931 ounces of gold were produced, compared to 541,636 ounces and 4,699 ounces, respectively, in the third quarter of 2019. The lower silver and gold production was expected and the result of lower ore grades. The mill operated at an average of 512 tpd, an increase of 4% over the third quarter of 2019.

The cost of sales was $6.0 million and the cash cost, after by-product credits, was $7.53 per silver ounce, compared to $12.8 million and $3.70, respectively, in the third quarter of 2019.5,6 The AISC, after by-product credits, was $8.87 per silver ounce for the third quarter compared to $7.21 in the third quarter of 2019.7 The increase in per ounce costs was primarily due to lower silver production.

Mining was completed in the third quarter and milling is expected to be completed in the fourth quarter of 2020. The Company continues to explore this highly prospective land package and will evaluate further mining based on exploration success.

Nevada Operations

At the Nevada operations, ore mined during the quarter has been stockpiled for the third-party processing expected in the fourth quarter. Gold production will not be realized until 2021. Mining of non-refractory ore is substantially complete. Mining of refractory ore is expected to continue through the remainder of 2020. Production from the processing of the refractory ore is expected to be about 5 thousand ounces of gold.

EXPLORATION

Exploration (including corporate development) expenses were $3.4 million, a decrease of $1.4 million compared to the third quarter of 2019, primarily due to decreased activity at all sites mainly related to COVID-19 precautions. Turnaround time for assay results has also been longer than normal during the year due to assay laboratory delays related to COVID-19 and increased overall sample loads.

Greens Creek - Alaska

At Greens Creek, one drill rig program was focused on the 200S Zone, approximately 750 feet south of existing mining. A second drill rig was mobilized to site in October to bring drilling at Greens Creek back to pre-pandemic levels. Strong definition drilling assay results confirmed and upgraded 200S Zone resources, including 20.2 oz/ton silver, 0.02 oz/ton gold, 6.3% zinc and 2.9% lead over 28.5 feet and 30.3 oz/ton silver, 0.03 oz/ton gold, 18.2% zinc and 9.7% lead over 8.0 feet on the upper bench structure. Drilling targeting the lower contact returned 31.6 oz/ton silver, 0.22 oz/ton gold, 1.2% zinc and 0.6% lead over 32.9 feet.

In the fourth quarter of 2020 definition drilling is planned in the Upper Plate, 9a, East Ore, West, and Northwest West ore zones with lesser amounts of pre-production drilling in the 9a and 5250 ore zones. The two drilling rigs are currently active on the East Zone and the Upper Plate Zone.

More complete drill assay highlights from Greens Creek can be found in Table A at the end of the release.

Casa Berardi - Quebec

At Casa Berardi, drilling in the East Mine focused on defining continuity and expanding mineralization in the 160 Zone Pit area and in the 148 Zone. Definition drilling in the 160 Zone targeted mineralization below the current 160 Pit shell to further define the continuity of the 160 lenses at depth. Intersections from this drilling included 0.07 oz/ton gold over 108.2 feet, 0.10 oz/ton gold over 59.7 feet, and 0.06 oz/ton gold over 138.4 feet including 0.11 oz/ton gold over 8.9 feet and expands mineralization in the 160-03 and 160-04 lenses at depth plunging to the east. Exploration drilling in the East Mine occurred in the 148 Zone from underground targeting the down-plunge trend of the known high-grade mineralization. Intersections include 0.67 oz/ton gold over 9.8 feet located 98 feet below the currently defined 148-01 lens limit at the contact of the Casa Berardi Fault. Exploration drilling in the 159 Zone located just south of the 160 Zone Pit area intersected a narrow high-grade vein containing 0.41 oz/ton gold over 5.6 feet including 0.84 oz/ton gold over 2.6 feet. This vein is open for expansion to the east and at depth.

In the West Mine area, definition and exploration drilling focused on defining and expanding mineralization in the Upper123 Zone from the 350 level, the Lower 123 Zone from the 1070 level, and the 128 Zone from the 490 level. Recent high-grade intersections from the Upper 123 Zone indicate the 123-01 lens is open for expansion up dip and include 0.91 oz/ton gold over 9.2 feet, 0.63 oz/t gold over 9.6 feet, and 0.51 oz/ton gold over 9.8 feet. Drilling in the 128 Zone identifies that two additional lenses, one to the north and one to the south of the 128-01 lens. Intersections include 0.91 oz/ton gold over 1.0 feet and 0.12 oz/ton gold over 17.7 feet including 0.23 oz/ton gold over 3.3 feet and 0.31 oz/ton gold over 3.9 feet. These initial results indicate mineralization is open at depth for expansion.

In the fourth quarter of 2020, underground drilling will focus on refining and expanding resources in the 123, 124, and 128 zones in the West Mine and the 148, 159, and 160 zones in the East Mine.

More complete drill assay highlights from Casa Berardi can be found in Table A at the end of the release.

San Sebastian - Mexico

At San Sebastian two core rigs operated throughout the quarter, one at the newly discovered El Bronco Vein and one at the newly discovered El Tigre Vein. The El Bronco Vein was discovered late in the second quarter and the El Tigre Vein was discovered early in the third quarter of this year as a result of short vertical reverse circulation (SVRC) drilling in areas with thick soil cover. These two new blind vein discoveries represent strong new structures to explore for zones of high-grade mineralization and continue to demonstrate the excellent prospectivity of the San Sebastian District and the effectiveness of SVRC drilling to discover new veins under cover.

Early drilling at the El Bronco Vein produced positive results with a recent drillhole returning: 0.29 oz/ton gold, 20.7 oz/ton silver over 4.2 feet (true width). Follow-up offset drilling of this intercept is currently in progress. The El Tigre Vein is a strong vein structure with an average true width in the first seven holes of 12.8 feet. Step-out drilling at both the El Bronco and El Tigre veins on approximately 300-foot centers is in progress and scheduled to continue into the fourth quarter of 2020 and into 2021.

More complete drill assay highlights from San Sebastian can be found in Table A at the end of the release.

Midas - Nevada

At Midas, four core rigs operated in September and will continue drilling into late November testing high-priority targets. Detailed mapping and sampling, geology modeling, alteration mineral speciation, and CSAMT geophysics during the first two quarters of 2020 defined numerous high-priority drilling targets at Midas including the Green Racer Sinter, Elko Prince, North Block, Southern Cross, SV1, Jackknife Ridge, and G3 target areas. Targets were prioritized based on anomalous gold, silver, and pathfinder elements, strong alteration associated with a boiling hydrothermal system at depth, and structural preparation. Because they were outside the Plan of Operations, many of these targets have never been drill tested or limited previous drilling did not adequately test the target. Initial drill testing of these targets began late in the third quarter beginning with the Green Racer Sinter, North Block, Southern Cross, and SV1 targets. Assay results are pending for drilling completed to date.

2020 ESTIMATES 8

2020 Production Outlook

Silver Production Gold Production Silver Equivalent Gold Equivalent (Moz) (Koz) (Moz) (Koz)

Current Prior Current Prior Current Prior Current Prior

Greens 10.2-10.5 10-10.3 47-48 47-48 23.5-24.0 21.5-22.1 263.5-268 240-246Creek*

Lucky 1.8-2.0 1.6-1.8 N/A N/A 4.0 3.2-3.6 43-45.5 35-40Friday*

San 0.8-0.9 0.8-0.9 6-7 6 1.5 14-1.7 15-17 16-19Sebastian

Casa N/A N/A 115-120 114-124 10.5-11.0 12.1-12.6 115-121 135-140Berardi

Nevada N/A N/A 32 32 2.9 2.9 32 32Operations

Total 12.8-13.4 12.4-13.0 200-207 199-210 42.8-43.4 40.4-42.6 468.5-482.5 458-477

* Equivalent ounces include lead and zinc production.

2020 Cost Outlook

Costs of Sales (million)

Cash cost, after by-product credits, per silver/gold ounce5,6,9

AISC, after by-product credits, per silver/gold ounce7,9

Current

Prior

Current

Prior

Current

Prior

Greens Creek

$215

$205

$5.25-$5.50

$6.00-$6.75

$8.75-$9.00

$9.50-$10.00

Lucky Friday**

$56

$14

$8.25-$9.00

$9.50-$10.25

$12.75-$13.75

$14.00-$15.00

San Sebastian

$25

$25

$6.00-$6.75

$6.25-$8.50

$8.75-$9.50

$8.00-$10.75

Total Silver

$296

$244

$5.50-$6.25

$6.50-$7.00

$11.75-$12.25

$12.25-$13.25

Casa Berardi

$200

$185

$1,075-$1,125

$900-$975

$1,425-$1,500

$1,225-$1,275

Nevada Operations

$46

$39

$725-$750

$825-$1,000

$800-$825

$850-$1,050

Total Gold

$246

$224

$1,025-$1,100

$900-$975

$1,300-$1,350

$1,150-$1,250

** Prior cost of sales guidance was only during the period of full production, while current cost of sales guidance is during the entire year. Lucky Friday cash costs and AISC, after by-product credits, per silver ounce are calculated using only Fourth Quarter 2020 production and cost estimates.

2020 Cost Outlook

Costs of Cash cost, after AISC, after by-product Sales by-product credits, per credits, per silver/gold (million) silver/gold ounce^5,6,9 ounce^7,9

Current Prior Current Prior Current Prior

Greens $215 $205 $5.25-$5.50 $6.00-$6.75 $8.75-$9.00 $9.50-$10.00Creek

Lucky $56 $14 $8.25-$9.00 $9.50-$10.25 $12.75-$13.75 $14.00-$15.00Friday**

San $25 $25 $6.00-$6.75 $6.25-$8.50 $8.75-$9.50 $8.00-$10.75Sebastian

Total $296 $244 $5.50-$6.25 $6.50-$7.00 $11.75-$12.25 $12.25-$13.25Silver

Casa $200 $185 $1,075-$1,125 $900-$975 $1,425-$1,500 $1,225-$1,275Berardi

Nevada $46 $39 $725-$750 $825-$1,000 $800-$825 $850-$1,050Operations

Total Gold $246 $224 $1,025-$1,100 $900-$975 $1,300-$1,350 $1,150-$1,250

** Prior cost of sales guidance was only during the period of full production,while current cost of sales guidance is during the entire year. Lucky Fridaycash costs and AISC, after by-product credits, per silver ounce are calculatedusing only Fourth Quarter 2020 production and cost estimates.

2020 Capital and Exploration Outlook

(in millions)

Current

Prior

2020E Capital expenditures

$100

$90

2020E Exploration expenditures (includes Corporate Development)

$16

$11

2020E Pre-development expenditures

$2.5

$2.2

DIVIDENDS

Common

The Board of Directors declared a quarterly cash dividend of $0.00875 per share of common stock, consisting of $0.005 per share for the silver price-linked component and $0.00375 for the base annual dividend component. The common dividend is payable on or about December 1, 2020, to stockholders of record on November 18, 2020. The realized silver price was $25.32 in the third quarter and, therefore, satisfied the recently amended criteria for a larger silver linked dividend under the Company's dividend policy.

Preferred

The Board of Directors also declared the regular quarterly dividend of $0.875 per share on the 157,816 outstanding shares of Series B Cumulative Convertible Preferred Stock. This represents a total amount to be paid of approximately $138,000. The cash dividend is payable on or about January 4, 2021 to shareholders of record on December 15, 2020.

CONFERENCE CALL AND WEBCAST

A conference call and webcast will be held Monday, November 9, at 10:00 a.m. Eastern Time to discuss these results. We recommend that you dial in at least 10 minutes before the call is due to commence. You may join the conference call by dialing toll-free 1-833-350-1380 or for international dialing 1-647-689-6934. The Participant Code is 6996406 and must be provided when dialing in. Hecla's live and archived webcast can be accessed at www.hecla-mining.com under Investors.

ABOUT HECLA

Founded in 1891, Hecla Mining Company (NYSE:HL) is a leading low-cost U.S. silver producer with operating mines in Alaska, Idaho, and Mexico and is a gold producer with operating mines in Quebec, Canada and Nevada. The Company also has exploration and pre-development properties in seven world-class silver and gold mining districts in the U.S., Canada and Mexico, and an exploration office and investments in early-stage silver exploration projects in Canada.

NOTES

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles in the United States (GAAP). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

(1) Adjusted EBITDA and adjusted net income are non-GAAP measurements, reconciliations of which to net income (loss), the most comparable GAAP measure, can be found at the end of the release. Adjusted EBITDA and adjusted net income are measures used by management to evaluate the Company's operating performance but should not be considered an alternative to net income (loss), or cash provided by (used in) operating activities as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. In addition, the Company may use it when formulating performance goals and targets under its incentive program.

(2) Liquidity of $348.7 million calculated as $250.0 million in available credit facility plus $98.7 million in cash equivalents at September 30, 2020.

(3) Net debt to adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to debt and net income (loss), the most comparable GAAP measurements, can be found at the end of the release. It is an important measure for management to measure relative indebtedness and the ability to service the debt relative to its peers. It is calculated as total debt outstanding less total cash on hand divided by adjusted EBITDA.

(4) Free cash flow is a non-GAAP measure, a calculation of which can be found at the end of the release. Free cash flow is calculated as cash provided by (used in) operating activities, less additions to properties, plants, equipment and mineral interests ("Capital Expenditures"). It is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to cash provided by (used in) operating activities as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. Management believes that, when presented in conjunction with comparable GAAP measures, free cash flow is useful to investors in evaluating our operating performance.

(5) Cash cost, after by-product credits, per silver or gold ounce is a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization (sometimes referred to as "cost of sales" in this release), can be found at the end of the release. It is an important operating statistic that management utilizes to measure each mine's operating performance. It also allows the benchmarking of performance of each mine versus those of our competitors. As a silver and gold mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek, Lucky Friday and San Sebastian mines - to compare performance with that of other silver mining companies, and aggregating Casa Berardi and the Nevada operations, to compare its performance with other gold mining companies. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Cash cost, after by-product credits, per silver ounce is not presented for Lucky Friday for the third quarters and first nine-month periods of 2020 and 2019, as production was limited due to the strike and subsequent ramp-up and results are not comparable to those from prior periods and are not indicative of future operating results under full production.

(6) Cash cost, after by-product credits, per gold ounce is only applicable to Casa Berardi and Nevada Operations production. Gold produced from Greens Creek and San Sebastian is treated as a by-product credit against the silver cash cost.

(7) All in sustaining cost (AISC), after by-product credits, is a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization, the closest GAAP measurement, can be found in the end of the release. AISC, after by-product credits, includes cost of sales and other direct production costs, expenses for reclamation and exploration at the mine sites, corporate exploration related to sustaining operations, and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits. AISC, after by-product credits, per silver ounce is not presented for Lucky Friday for the third quarters and first nine-month periods of 2020 and 2019, as production was limited due to the strike and subsequent ramp-up and results are not comparable to those from prior periods and are not indicative of future operating results under full production.

Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Management believes that all in sustaining costs is a non-GAAP measure that provides additional information to management, investors and analysts to help in the understanding of the economics of our operations and performance compared to other producers and in the investor's visibility by better defining the total costs associated with production. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program.

Other

(8) Expectations for 2020 include silver, gold, lead and zinc production from Greens Creek, Lucky Friday, San Sebastian, Casa Berardi and Nevada Operations converted using $1,525 gold, $17 silver, $0.85 lead, and $1.00 zinc; these haven't changed from the first quarter.

Prices for by-product credits were calculated using actual realized prices through the third quarter, and $1,650 gold, $18.00 silver, $0.85 lead, and $0.95 zinc, resulting in full year prices of $1,721 gold, $19.26 silver, $0.82 lead, and $0.95 zinc.

Numbers may be rounded.

Cautionary Statements to Investors on Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws, including Canadian securities laws. When a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. Forward-looking statements often address our expected future business and financial performance and financial condition and often contain words such as "anticipate," "intend," "plan," "will," "could," "would," "estimate," "should," "expect," "believe," "project," "target," "indicative," "preliminary," "potential" and similar expressions. Forward-looking statements in this news release may include, without limitation: (i) estimates of future production, sales, costs, and capital expenditures; (ii) expectations regarding the development, growth potential, financial performance of the Company's projects, including that Lucky Friday will be at full production in the fourth quarter and that estimated annual production for 2021 will be in excess of 3 million ounces in 2021; (iii) the effectiveness of the Company's protocols to mitigate the risks presented by COVID-19; and (iv) expected improvement at Casa Berardi, including related mining and processing ore from higher-grade stopes in the fourth quarter. The material factors or assumptions used to develop such forward-looking statements or forward-looking information include that the Company's plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated, to which the Company's operations are subject.

Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect, which could cause actual results to differ from forward-looking statements. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company's projects being consistent with current expectations and mine plans; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD and USD/MXN, being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) the Company's plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated; (ix) counterparties performing their obligations under hedging instruments and put option contracts; (x) sufficient workforce is available and trained to perform assigned tasks; (xi) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xii) relations with interested parties, including Native Americans, remain productive; (xiii) economic terms can be reached with third-party mill operators who have capacity to process our ore; (xiv) maintaining availability of water rights; (xv) factors do not arise that reduce available cash balances, (xvi) there being no material increases in our current requirements to post or maintain reclamation and performance bonds or collateral related thereto, and (xvii) the Company's plans for refinancing its high yield notes proceeding as expected.

In addition, material risks that could cause actual results to differ from forward-looking statements include, but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating risks; (iii) currency fluctuations; (iv) increased production costs and variances in ore grade or recovery rates from those assumed in mining plans; (v) community relations; (vi) conflict resolution and outcome of projects or oppositions; (vii) litigation, political, regulatory, labor and environmental risks; (viii) exploration risks and results, including that mineral resources are not mineral reserves, they do not have demonstrated economic viability and there is no certainty that they can be upgraded to mineral reserves through continued exploration; (ix) the failure of counterparties to perform their obligations under hedging instruments, including put option contracts; (x) our plans for improvements at our Nevada operations, including at Fire Creek, are not successful; (xi) our estimates for the fourth quarter results are inaccurate; (xii) we take a material impairment charge on our Nevada operations; and (xiii) we are unable to remain in compliance with all terms of the credit agreement in order to maintain continued access to the revolver. For a more detailed discussion of such risks and other factors, see the Company's 2019 Form 10-K, filed on February 13, 2020, and Form 10-Q filed on May 7, 2020 with the Securities and Exchange Commission (SEC), as well as the Company's other SEC filings. The Company does not undertake any obligation to release publicly, revisions to any "forward-looking statement," including, without limitation, outlook, to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued "forward-looking statement" constitutes a reaffirmation of that statement. Continued reliance on "forward-looking statements" is at investors' own risk.

Qualified Person (QP) Pursuant to Canadian National Instrument 43-101

Kurt D. Allen, MSc., CPG, Director - Exploration of Hecla Limited and Keith Blair, MSc., CPG, Chief Geologist of Hecla Limited, who serve as a Qualified Persons under National Instrument 43-101("NI 43-101"), supervised the preparation of the scientific and technical information concerning Hecla's mineral projects in this news release. 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" effective date December 31, 2018, and for the Lucky Friday Mine are contained in a technical report titled "Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA" effective date April 2, 2014, for Casa Berardi are contained in a technical report titled "Technical Report on the mineral resource and mineral reserve estimate for Casa Berardi Mine, Northwestern Quebec, Canada" effective date December 31, 2018 (the "Casa Berardi Technical Report"), and for the San Sebastian Mine, Mexico, are contained in a technical report prepared for Hecla titled "Technical Report for the San Sebastian Ag-Au Property, Durango, Mexico" effective date September 8, 2015 . Also included in these four technical reports is a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures for the Fire Creek Mine are contained in a technical report prepared for Klondex Mines, dated March 31, 2018; the Hollister Mine dated May 31, 2017, amended August 9, 2017; and the Midas Mine dated August 31, 2014, amended April 2, 2015. Copies of these technical reports are available under Hecla's and Klondex's profiles on SEDAR at www.sedar.com. Mr. Allen and Mr. Blair reviewed and verified information regarding drill sampling, data verification of all digitally-collected data, drill surveys and specific gravity determinations relating to all the mines. The review encompassed quality assurance programs and quality control measures including analytical or testing practice, chain-of-custody procedures, sample storage procedures and included independent sample collection and analysis. This review found the information and procedures meet industry standards and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes.

2020 Capital and Exploration Outlook

(in millions) Current Prior

2020E Capital expenditures $100 $90

2020E Exploration expenditures (includes Corporate Development) $16 $11

2020E Pre-development expenditures $2.5 $2.2

DIVIDENDS

Common

The Board of Directors declared a quarterly cash dividend of $0.00875 per share of common stock, consisting of $0.005 per share for the silver price-linked component and $0.00375 for the base annual dividend component. The common dividend is payable on or about December 1, 2020, to stockholders of record on November 18, 2020. The realized silver price was $25.32 in the third quarter and, therefore, satisfied the recently amended criteria for a larger silver linked dividend under the Company's dividend policy.

Preferred

The Board of Directors also declared the regular quarterly dividend of $0.875 per share on the 157,816 outstanding shares of Series B Cumulative Convertible Preferred Stock. This represents a total amount to be paid of approximately $138,000. The cash dividend is payable on or about January 4, 2021 to shareholders of record on December 15, 2020.

CONFERENCE CALL AND WEBCAST

A conference call and webcast will be held Monday, November 9, at 10:00 a.m. Eastern Time to discuss these results. We recommend that you dial in at least 10 minutes before the call is due to commence. You may join the conference call by dialing toll-free 1-833-350-1380 or for international dialing 1-647-689-6934. The Participant Code is 6996406 and must be provided when dialing in. Hecla's live and archived webcast can be accessed at www.hecla-mining.com under Investors.

ABOUT HECLA

Founded in 1891, Hecla Mining Company (NYSE:HL) is a leading low-cost U.S. silver producer with operating mines in Alaska, Idaho, and Mexico and is a gold producer with operating mines in Quebec, Canada and Nevada. The Company also has exploration and pre-development properties in seven world-class silver and gold mining districts in the U.S., Canada and Mexico, and an exploration office and investments in early-stage silver exploration projects in Canada.

NOTES

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles in the United States (GAAP). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

(1) Adjusted EBITDA and adjusted net income are non-GAAP measurements, reconciliations of which to net income (loss), the most comparable GAAP measure, can be found at the end of the release. Adjusted EBITDA and adjusted net income are measures used by management to evaluate the Company's operating performance but should not be considered an alternative to net income (loss), or cash provided by (used in) operating activities as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. In addition, the Company may use it when formulating performance goals and targets under its incentive program.

(2) Liquidity of $348.7 million calculated as $250.0 million in available credit facility plus $98.7 million in cash equivalents at September 30, 2020.

(3) Net debt to adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to debt and net income (loss), the most comparable GAAP measurements, can be found at the end of the release. It is an important measure for management to measure relative indebtedness and the ability to service the debt relative to its peers. It is calculated as total debt outstanding less total cash on hand divided by adjusted EBITDA.

(4) Free cash flow is a non-GAAP measure, a calculation of which can be found at the end of the release. Free cash flow is calculated as cash provided by (used in) operating activities, less additions to properties, plants, equipment and mineral interests ("Capital Expenditures"). It is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to cash provided by (used in) operating activities as those terms are defined by GAAP, and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. Management believes that, when presented in conjunction with comparable GAAP measures, free cash flow is useful to investors in evaluating our operating performance.

(5) Cash cost, after by-product credits, per silver or gold ounce is a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization (sometimes referred to as "cost of sales" in this release), can be found at the end of the release. It is an important operating statistic that management utilizes to measure each mine's operating performance. It also allows the benchmarking of performance of each mine versus those of our competitors. As a silver and gold mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek, Lucky Friday and San Sebastian mines - to compare performance with that of other silver mining companies, and aggregating Casa Berardi and the Nevada operations, to compare its performance with other gold mining companies. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program. Cash cost, after by-product credits, per silver ounce is not presented for Lucky Friday for the third quarters and first nine-month periods of 2020 and 2019, as production was limited due to the strike and subsequent ramp-up and results are not comparable to those from prior periods and are not indicative of future operating results under full production.

(6) Cash cost, after by-product credits, per gold ounce is only applicable to Casa Berardi and Nevada Operations production. Gold produced from Greens Creek and San Sebastian is treated as a by-product credit against the silver cash cost.

(7) All in sustaining cost (AISC), after by-product credits, is a non-GAAP measurement, a reconciliation of which to cost of sales and other direct production costs and depreciation, depletion and amortization, the closest GAAP measurement, can be found in the end of the release. AISC, after by-product credits, includes cost of sales and other direct production costs, expenses for reclamation and exploration at the mine sites, corporate exploration related to sustaining operations, and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits. AISC, after by-product credits, per silver ounce is not presented for Lucky Friday for the third quarters and first nine-month periods of 2020 and 2019, as production was limited due to the strike and subsequent ramp-up and results are not comparable to those from prior periods and are not indicative of future operating results under full production.

Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Management believes that all in sustaining costs is a non-GAAP measure that provides additional information to management, investors and analysts to help in the understanding of the economics of our operations and performance compared to other producers and in the investor's visibility by better defining the total costs associated with production. Similarly, the statistic is useful in identifying acquisition and investment opportunities as it provides a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics. In addition, the Company may use it when formulating performance goals and targets under its incentive program.

Other

(8) Expectations for 2020 include silver, gold, lead and zinc production from Greens Creek, Lucky Friday, San Sebastian, Casa Berardi and Nevada Operations converted using $1,525 gold, $17 silver, $0.85 lead, and $1.00 zinc; these haven't changed from the first quarter.

Prices for by-product credits were calculated using actual realized prices through the third quarter, and $1,650 gold, $18.00 silver, $0.85 lead, and $0.95 zinc, resulting in full year prices of $1,721 gold, $19.26 silver, $0.82 lead, and $0.95 zinc.

Numbers may be rounded.

Cautionary Statements to Investors on Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws, including Canadian securities laws. When a forward-looking statement expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the forward-looking statements. Forward-looking statements often address our expected future business and financial performance and financial condition and often contain words such as "anticipate," "intend," "plan," "will," "could," "would," "estimate," "should," "expect," "believe," "project," "target," "indicative," "preliminary," "potential" and similar expressions. Forward-looking statements in this news release may include, without limitation: (i) estimates of future production, sales, costs, and capital expenditures; (ii) expectations regarding the development, growth potential, financial performance of the Company's projects, including that Lucky Friday will be at full production in the fourth quarter and that estimated annual production for 2021 will be in excess of 3 million ounces in 2021; (iii) the effectiveness of the Company's protocols to mitigate the risks presented by COVID-19; and (iv) expected improvement at Casa Berardi, including related mining and processing ore from higher-grade stopes in the fourth quarter. The material factors or assumptions used to develop such forward-looking statements or forward-looking information include that the Company's plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated, to which the Company's operations are subject.

Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect, which could cause actual results to differ from forward-looking statements. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company's projects being consistent with current expectations and mine plans; (iii) political/regulatory developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) the exchange rate for the USD/CAD and USD/MXN, being approximately consistent with current levels; (v) certain price assumptions for gold, silver, lead and zinc; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineral resource estimates; (viii) the Company's plans for development and production will proceed as expected and will not require revision as a result of risks or uncertainties, whether known, unknown or unanticipated; (ix) counterparties performing their obligations under hedging instruments and put option contracts; (x) sufficient workforce is available and trained to perform assigned tasks; (xi) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xii) relations with interested parties, including Native Americans, remain productive; (xiii) economic terms can be reached with third-party mill operators who have capacity to process our ore; (xiv) maintaining availability of water rights; (xv) factors do not arise that reduce available cash balances, (xvi) there being no material increases in our current requirements to post or maintain reclamation and performance bonds or collateral related thereto, and (xvii) the Company's plans for refinancing its high yield notes proceeding as expected.

In addition, material risks that could cause actual results to differ from forward-looking statements include, but are not limited to: (i) gold, silver and other metals price volatility; (ii) operating risks; (iii) currency fluctuations; (iv) increased production costs and variances in ore grade or recovery rates from those assumed in mining plans; (v) community relations; (vi) conflict resolution and outcome of projects or oppositions; (vii) litigation, political, regulatory, labor and environmental risks; (viii) exploration risks and results, including that mineral resources are not mineral reserves, they do not have demonstrated economic viability and there is no certainty that they can be upgraded to mineral reserves through continued exploration; (ix) the failure of counterparties to perform their obligations under hedging instruments, including put option contracts; (x) our plans for improvements at our Nevada operations, including at Fire Creek, are not successful; (xi) our estimates for the fourth quarter results are inaccurate; (xii) we take a material impairment charge on our Nevada operations; and (xiii) we are unable to remain in compliance with all terms of the credit agreement in order to maintain continued access to the revolver. For a more detailed discussion of such risks and other factors, see the Company's 2019 Form 10-K, filed on February 13, 2020, and Form 10-Q filed on May 7, 2020 with the Securities and Exchange Commission (SEC), as well as the Company's other SEC filings. The Company does not undertake any obligation to release publicly, revisions to any "forward-looking statement," including, without limitation, outlook, to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued "forward-looking statement" constitutes a reaffirmation of that statement. Continued reliance on "forward-looking statements" is at investors' own risk.

Qualified Person (QP) Pursuant to Canadian National Instrument 43-101

Kurt D. Allen, MSc., CPG, Director - Exploration of Hecla Limited and Keith Blair, MSc., CPG, Chief Geologist of Hecla Limited, who serve as a Qualified Persons under National Instrument 43-101("NI 43-101"), supervised the preparation of the scientific and technical information concerning Hecla's mineral projects in this news release. 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" effective date December 31, 2018, and for the Lucky Friday Mine are contained in a technical report titled "Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA" effective date April 2, 2014, for Casa Berardi are contained in a technical report titled "Technical Report on the mineral resource and mineral reserve estimate for Casa Berardi Mine, Northwestern Quebec, Canada" effective date December 31, 2018 (the "Casa Berardi Technical Report"), and for the San Sebastian Mine, Mexico, are contained in a technical report prepared for Hecla titled "Technical Report for the San Sebastian Ag-Au Property, Durango, Mexico" effective date September 8, 2015 . Also included in these four technical reports is a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of sample, analytical or testing procedures for the Fire Creek Mine are contained in a technical report prepared for Klondex Mines, dated March 31, 2018; the Hollister Mine dated May 31, 2017, amended August 9, 2017; and the Midas Mine dated August 31, 2014, amended April 2, 2015. Copies of these technical reports are available under Hecla's and Klondex's profiles on SEDAR at www.sedar.com. Mr. Allen and Mr. Blair reviewed and verified information regarding drill sampling, data verification of all digitally-collected data, drill surveys and specific gravity determinations relating to all the mines. The review encompassed quality assurance programs and quality control measures including analytical or testing practice, chain-of-custody procedures, sample storage procedures and included independent sample collection and analysis. This review found the information and procedures meet industry standards and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes.

HECLA MINING COMPANY

Condensed Consolidated Statements of Income (Loss)

(dollars and shares in thousands, except per share amounts - unaudited)



Third Quarter Ended Nine Months Ended

September September September September 30, 30, 30, 30, 2020 2019 2020 2019

Sales of products $ 199,703 $ 161,532 $ 502,983 $ 448,321

Cost of sales and other 105,977 95,878 284,717 311,202 direct production costs

Depreciation, depletion 40,238 50,774 119,327 139,038 and amortization

146,215 146,652 404,044 450,240

Gross profit (loss) 53,488 14,880 98,939 (1,919 )



Other operating expenses:

General and 11,713 7,978 27,631 26,855 administrative

Exploration 3,407 4,808 7,899 13,556

Pre-development 759 881 1,857 2,535

Research and - 53 - 614 development

Other operating expense 3,497 437 5,851 1,681

(Gain) loss ondisposition ofproperties, plants, (14 ) 24 559 4,666 equipment and mineralinterests

Provision or closedoperations and 1,254 1,907 2,807 3,529 reclamation

Ramp-up and suspension 1,541 3,722 24,109 8,766 costs

Foundation grant - - 1,970 -

Acquisition costs 2 183 13 593

22,159 19,993 72,696 62,795

Income (loss) from 31,329 (5,113 ) 26,243 (64,714 )operations

Other income (expense):

Loss on derivative (6,666 ) (4,718 ) (12,775 ) (2,719 )contracts

Gain on disposition of - 927 - 927 investments

Unrealized gain (loss) 3,979 (126 ) 9,410 (1,159 )on investments

Foreign exchange (loss) (2,196 ) 773 1,235 (6,741 )gain

Other expense (406 ) (1,096 ) (1,582 ) (3,407 )

Interest expense (10,779 ) (11,777 ) (38,919 ) (33,777 )

(16,068 ) (16,017 ) (42,631 ) (46,876 )

Income (loss) before 15,261 (21,130 ) (16,388 ) (111,590 )income taxes

Income tax (provision) (1,633 ) 1,614 (1,197 ) 20,009 benefit

Net income (loss) 13,628 (19,516 ) (17,585 ) (91,581 )

Preferred stock (138 ) (138 ) (414 ) (414 )dividends

Income (loss)applicable to common $ 13,490 $ (19,654 ) $ (17,999 ) $ (91,995 )shareholders

Basic income (loss) percommon share after $ 0.03 $ (0.04 ) $ (0.03 ) $ (0.19 )preferred dividends

Diluted income (loss)per common share after $ 0.03 $ (0.04 ) $ (0.03 ) $ (0.19 )preferred dividends

Weighted average numberof common shares 529,838 489,971 526,098 486,298 outstanding - basic

Weighted average numberof common shares 535,788 489,971 526,098 486,298 outstanding - diluted

HECLA MINING COMPANYCondensed Consolidated Balance Sheets

(dollars and share in thousands - unaudited)



September 30, December 31, 2020 2019

ASSETS

Current assets:

Cash and cash equivalents $ 98,669 $ 62,452

Accounts receivable:

Trade 28,464 11,952

Taxes 6,343 20,048

Other, net 6,642 6,421

Inventories 87,630 66,213

Prepaid taxes 107 107

Other current assets 7,301 11,931

Total current assets 235,156 179,124

Non-current investments 17,362 6,207

Non-current restricted cash and investments 1,053 1,025

Properties, plants, equipment and mineral 2,342,038 2,423,698 interests, net

Operating lease right-of-use assets 11,928 16,381

Non-current deferred income taxes 3,408 3,537

Other non-current assets and deferred charges 4,205 7,336

Total assets $ 2,615,150 $ 2,637,308



LIABILITIES

Current liabilities:

Accounts payable and accrued liabilities $ 55,315 $ 57,716

Accrued payroll and related benefits 29,201 26,916

Accrued taxes 7,890 4,776

Current portion of finance leases 6,187 5,429

Current portion of operating leases 3,590 5,580

Current portion of accrued reclamation and 5,892 4,581 closure costs

Accrued interest 4,935 5,804

Current derivatives liabilities 12,232 6,170

Other current liabilities 149 2

Total current liabilities 125,391 116,974

Finance leases 7,883 7,214

Operating leases 8,355 10,818

Accrued reclamation and closure costs 100,072 103,793

Long-term debt - notes 495,839 504,729

Non-current deferred tax liability 129,506 138,282

Non-current pension liability 48,303 56,219

Other non-current liabilities 6,153 6,856

Total liabilities 921,502 944,885



SHAREHOLDERS' EQUITY

Preferred stock 39 39

Common stock 134,421 132,292

Capital surplus 1,998,322 1,973,700

Accumulated deficit (375,527 ) (353,331 )

Accumulated other comprehensive loss (40,111 ) (37,310 )

Treasury stock (23,496 ) (22,967 )

Total shareholders' equity 1,693,648 1,692,423

Total liabilities and shareholders' equity $ 2,615,150 $ 2,637,308

Common shares outstanding 530,834 522,896

HECLA MINING COMPANYCondensed Consolidated Statements of Cash Flows

(dollars in thousands - unaudited)



Third Quarter Ended Nine Months Ended

September September September September 30, 30, 30, 30, 2020 2019 2020 2019

OPERATING ACTIVITIES

Net income (loss) $ 13,628 $ (19,516 ) $ (17,585 ) $ (91,581 )

Non-cash elements included in net loss:

Depreciation, depletion 42,726 52,219 126,911 143,040 and amortization

Gain on disposition of - (927 ) - (927 )investments

(Gain) loss on dispositionof properties, plants, (14 ) 24 559 4,666 equipment and mineralinterests

Unrealized (gain) loss on (3,979 ) 126 (9,410 ) 1,159 investments

Adjustment of inventory to - - - 1,399 market value

Provision for reclamation 1,545 2,089 4,638 5,298 and closure costs

Stock compensation 2,801 1,206 5,229 4,758

Deferred income taxes (1,225 ) (4,031 ) (6,390 ) (26,616 )

Amortization of loan 442 667 3,066 1,919 origination fees

Loss on derivative 595 11,925 4,483 5,824 contracts

Foreign exchange loss 2,857 (5,957 ) (2,810 ) 6,263 (gain)

Foundation grant - - 1,970 -

Change in assets and liabilities:

Accounts receivable 366 2,557 (3,741 ) (10,215 )

Inventories (8,510 ) (6,354 ) (13,090 ) (6,501 )

Other current and 7,672 (1,871 ) 6,748 14,913 non-current assets

Accounts payable and 6,354 17,701 (1,762 ) 5,616 accrued liabilities

Accrued payroll and 5,899 2,846 11,317 4,506 related benefits

Accrued taxes (636 ) 719 3,276 (5,733 )

Accrued reclamation andclosure costs and other 2,918 1,473 2,483 5,821 non-current liabilities

Cash provided by operating 73,439 54,896 115,892 63,609 activities



INVESTING ACTIVITIES

Additions to properties,plants, equipment and (23,693 ) (26,093 ) (54,382 ) (97,338 )mineral interests

Proceeds from sale of - 1,760 - 1,760 investments

Proceeds from dispositionof properties, plants and 105 61 305 86 equipment

Purchases of investments (1,024 ) (282 ) (1,661 ) (389 )

Net cash used in investing (24,612 ) (24,554 ) (55,738 ) (95,881 )activities



FINANCING ACTIVITIES

Acquisition of treasury - (595 ) (2,745 ) (2,239 )shares

Dividends paid to common (1,329 ) (1,225 ) (3,951 ) (3,655 )shareholders

Dividends paid to (138 ) (138 ) (414 ) (414 )preferred shareholders

Credit facility and debt (736 ) (541 ) (1,287 ) (587 )issuance fees

Repayments of debt (50,000 ) (77,000 ) (716,500 ) (195,000 )

Borrowings on debt 27,607 75,000 707,107 245,000

Payments on finance leases (1,406 ) (2,107 ) (4,246 ) (5,484 )

Net cash (used in)provided by financing (26,002 ) (6,606 ) (22,036 ) 37,621 activities

Effect of exchange rates (79 ) (175 ) (1,873 ) 257 on cash

Net increase in cash, cashequivalents and restricted 22,746 23,561 36,245 5,606 cash and cash equivalents

Cash, cash equivalents andrestricted cash and cash 76,976 10,459 63,477 28,414 equivalents at beginningof period

Cash, cash equivalents andrestricted cash and cash $ 99,722 $ 34,020 $ 99,722 $ 34,020 equivalents at end ofperiod

HECLA MINING COMPANYProduction Data



Three Months Ended Nine Months Ended

September September September September 30, 30, 30, 30, 2020 2019 2020 2019

GREENS CREEK UNIT

Tons of ore milled 215,237 213,557 629,316 629,752

Mining cost per ton $ 72.37 $ 81.16 $ 78.97 $ 80.15

Milling cost per ton $ 33.22 $ 36.67 $ 36.77 $ 35.89

Ore grade milled - Silver (oz./ 15.04 15.01 15.79 14.28 ton)

Ore grade milled - Gold (oz./ 0.084 0.095 0.084 0.095 ton)

Ore grade milled - Lead (%) 3.26 % 3.00 % 3.22 % 2.86 %

Ore grade milled - Zinc (%) 8.17 % 7.70 % 7.76 % 7.28 %

Silver produced (oz.) 2,634,436 2,544,018 8,164,062 7,149,035

Gold produced (oz.) 12,838 13,684 38,215 41,269

Lead produced (tons) 5,909 5,258 16,996 14,668

Zinc produced (tons) 16,187 15,073 44,858 41,330

Cash cost, after by-product $ 4.12 $ 2.05 $ 4.99 $ 1.67 credits, per silver ounce ^(1)

AISC, after by-product credits, $ 7.70 $ 6.05 $ 7.57 $ 5.28 per silver ounce ^(1)

Capital additions (in $ 8,265 $ 8,966 $ 18,276 $ 22,943 thousands)

LUCKY FRIDAY UNIT

Tons of ore milled 55,050 13,254 109,951 40,754

Ore grade milled - Silver (oz./ 12.10 9.33 11.43 10.95 ton)

Ore grade milled - Lead (%) 7.35 % 7.01 % 7.33 % 7.40 %

Ore grade milled - Zinc (%) 3.76 % 3.13 % 3.89 % 3.91 %

Silver produced (oz.) 636,389 115,682 1,201,674 416,456

Lead produced (tons) 3,841 849 7,624 2,738

Zinc produced (tons) 1,810 340 3,841 1,342

Capital additions (in $ 5,547 $ 2,739 $ 14,603 $ 5,946 thousands)

SAN SEBASTIAN

Tons of ore milled 47,093 45,232 104,216 135,576

Mining cost per ton $ 31.41 $ 102.94 $ 51.3 $ 112.17

Milling cost per ton $ 58.55 $ 62.85 $ 58.77 $ 62.16

Ore grade milled - Silver (oz./ 6.27 13.36 8.11 11.78 ton)

Ore grade milled - Gold (oz./ 0.052 0.122 0.070 0.103 ton)

Silver produced (oz.) 266,691 541,636 772,158 1,446,450

Gold produced (oz.) 1,931 4,699 6,064 11,776

Cash cost, after by-product $ 7.53 $ 3.70 $ 5.93 $ 7.77 credits, per silver ounce ^(1)

AISC, after by-product credits, $ 8.87 $ 7.21 $ 6.76 $ 12.14 per silver ounce ^(1)

Capital additions (in $ 233 $ 1,513 $ 537 $ 5,493 thousands)

CASA BERARDI UNIT

Tons of ore milled - 157,734 193,130 472,936 582,631 underground

Tons of ore milled - surface 130,948 144,221 427,784 432,067 pit

Tons of ore milled - total 288,682 337,351 900,720 1,014,698

Surface tons mined - ore and 1,410,505 2,196,292 4,065,596 6,218,817 waste

Mining cost per ton of ore - $ 136.53 $ 98.29 $ 119.55 $ 99.53 underground

Mining cost per ton of ore - $ 92.74 $ 80.67 $ 80.15 $ 80.97 combined

Mining cost per ton of ore and $ 3.66 $ 2.35 $ 3.78 $ 3.21 waste - surface tons mined

Milling cost per ton $ 28.35 $ 18.39 $ 23.74 $ 17.50

Ore grade milled - Gold (oz./ 0.124 0.186 0.132 0.170 ton) - underground

Ore grade milled - Gold (oz./ 0.052 0.050 0.051 0.052 ton) - surface pit

Ore grade milled - Gold (oz./ 0.114 0.128 0.114 0.120 ton) - combined

Ore grade milled - Silver (oz./ 0.02 0.02 0.02 0.03 ton)

Gold produced (oz.) - 19,605 30,467 62,260 80,315 underground

Gold produced (oz.) - surface 6,800 6,080 21,652 19,301 pit

Gold produced (oz.) - total 26,405 36,547 83,913 99,616

Cash cost, after by-product $ 1,398 $ 966 $ 1,181 $ 1,055 credits, per gold ounce ^(1)

AISC, after by-product credits, $ 1,855 $ 1,348 $ 1,493 $ 1,373 per gold ounce ^(1)

Capital additions (in $ 11,629 $ 13,239 $ 24,413 $ 28,360 thousands)

Nevada Operations

Tons of ore milled - 63,954 27,984 163,736

Mining cost per ton $ - $ 149.16 $ 402.94 $ 158.25

Milling cost per ton $ - $ 67.66 $ 176.63 $ 81.73

Ore grade milled - Gold (oz./ - 0.389 1.232 0.320 ton)

Silver produced (oz.) - 43,377 37,443 160,264

Gold produced (oz.) - 22,381 31,756 45,439

Cash cost, after by-product $ - $ 817 $ 716 $ 1,165 credits, per silver ounce ^(1)

AISC, after by-product credits, $ - $ 992 $ 787 $ 1,841 per silver ounce ^(1)

Capital additions (in $ 380 $ 2,502 $ 1,849 $ 41,576 thousands)

(1) Cash cost, after by-product credits, per ounce and AISC, after by-product credits. per ounce represent non-U.S. Generally Accepted Accounting Principles (GAAP) measurements. A reconciliation of cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) to cash cost, after by-product credits can be found in the cash cost per ounce reconciliation section of this news release. Gold, lead and zinc produced have been treated as by-product credits in calculating silver costs per ounce. The primary metal produced at Casa Berardi and Nevada is gold, with a by-product credit for the value of silver production.

Non-GAAP Measures (Unaudited)

Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP)

The tables below present reconciliations between the most comparable GAAP measure of cost of sales and other direct production costs and depreciation, depletion and amortization to the non-GAAP measures of Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits and AISC, After By-product Credits for our operations at the Greens Creek, Lucky Friday, San Sebastian, Casa Berardi and Nevada Operations units for the three- and nine-month periods ended September 30, 2020 and 2019.

Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance. AISC, After By-product Credits, per Ounce is an important operating statistic that we utilize as a measure of our mines' net cash flow after costs for exploration, pre-development, reclamation, and sustaining capital. Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce also allow us to benchmark the performance of each of our mines versus those of our competitors. As a silver and gold mining company, we also use these statistics on an aggregate basis - aggregating the Greens Creek, Lucky Friday and San Sebastian mines, to compare our performance with that of other primary silver mining companies and aggregating Casa Berardi and Nevada Operations for comparison with other gold mining companies. Similarly, these statistics are useful in identifying acquisition and investment opportunities as they provide a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics.

Cash Cost, Before By-product Credits and AISC, Before By-product Credits include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining expense, on-site general and administrative costs, royalties and mining production taxes. AISC, Before By-product Credits for each mine also includes on-site exploration, reclamation, and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense, reclamation, exploration, and pre-development. By-product credits include revenues earned from all metals other than the primary metal produced at each unit. As depicted in the tables below, by-product credits comprise an essential element of our silver unit cost structure, distinguishing our silver operations due to the polymetallic nature of their orebodies. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce provide management and investors an indication of operating cash flow, after consideration of the average price, received from production. We also use these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective. Cash Cost, After By-product Credits, per Ounce is a measure developed by precious metals companies (including the Silver Institute) in an effort to provide a uniform standard for comparison purposes. There can be no assurance, however, that our reporting of these non-GAAP measures are the same as those reported by other mining companies.

The Casa Berardi and Nevada Operations sections below report Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for the production of gold, their primary product, and by-product revenues earned from silver, which is a by-product at Casa Berardi and Nevada Operations. Only costs and ounces produced relating to units with the same primary product are combined to represent Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce. Thus, the gold produced at our Casa Berardi and Nevada Operations units are not included as a by-product credit when calculating Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for the total of Greens Creek, Lucky Friday and San Sebastian, our combined silver properties.

(1) Cash cost, after by-product credits, per ounce and AISC, after by-productcredits. per ounce represent non-U.S. Generally Accepted Accounting Principles(GAAP) measurements. A reconciliation of cost of sales and other directproduction costs and depreciation, depletion and amortization (GAAP) to cashcost, after by-product credits can be found in the cash cost per ouncereconciliation section of this news release. Gold, lead and zinc produced havebeen treated as by-product credits in calculating silver costs per ounce. Theprimary metal produced at Casa Berardi and Nevada is gold, with a by-productcredit for the value of silver production.

Non-GAAP Measures (Unaudited)

Reconciliation of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to Cash Cost, Before By-product Credits and Cash Cost, After By-product Credits (non-GAAP) and All-In Sustaining Cost, Before By-product Credits and All-In Sustaining Cost, After By-product Credits (non-GAAP)

The tables below present reconciliations between the most comparable GAAP measure of cost of sales and other direct production costs and depreciation, depletion and amortization to the non-GAAP measures of Cash Cost, Before By-product Credits, Cash Cost, After By-product Credits, AISC, Before By-product Credits and AISC, After By-product Credits for our operations at the Greens Creek, Lucky Friday, San Sebastian, Casa Berardi and Nevada Operations units for the three- and nine-month periods ended September 30, 2020 and 2019.

Cash Cost, After By-product Credits, per Ounce is an important operating statistic that we utilize to measure each mine's operating performance. AISC, After By-product Credits, per Ounce is an important operating statistic that we utilize as a measure of our mines' net cash flow after costs for exploration, pre-development, reclamation, and sustaining capital. Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce also allow us to benchmark the performance of each of our mines versus those of our competitors. As a silver and gold mining company, we also use these statistics on an aggregate basis - aggregating the Greens Creek, Lucky Friday and San Sebastian mines, to compare our performance with that of other primary silver mining companies and aggregating Casa Berardi and Nevada Operations for comparison with other gold mining companies. Similarly, these statistics are useful in identifying acquisition and investment opportunities as they provide a common tool for measuring the financial performance of other mines with varying geologic, metallurgical and operating characteristics.

Cash Cost, Before By-product Credits and AISC, Before By-product Credits include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, third-party refining expense, on-site general and administrative costs, royalties and mining production taxes. AISC, Before By-product Credits for each mine also includes on-site exploration, reclamation, and sustaining capital costs. AISC, Before By-product Credits for our consolidated silver properties also includes corporate costs for general and administrative expense, reclamation, exploration, and pre-development. By-product credits include revenues earned from all metals other than the primary metal produced at each unit. As depicted in the tables below, by-product credits comprise an essential element of our silver unit cost structure, distinguishing our silver operations due to the polymetallic nature of their orebodies. Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce provide management and investors an indication of operating cash flow, after consideration of the average price, received from production. We also use these measurements for the comparative monitoring of performance of our mining operations period-to-period from a cash flow perspective. Cash Cost, After By-product Credits, per Ounce is a measure developed by precious metals companies (including the Silver Institute) in an effort to provide a uniform standard for comparison purposes. There can be no assurance, however, that our reporting of these non-GAAP measures are the same as those reported by other mining companies.

The Casa Berardi and Nevada Operations sections below report Cash Cost, After By-product Credits, per Gold Ounce and AISC, After By-product Credits, per Gold Ounce for the production of gold, their primary product, and by-product revenues earned from silver, which is a by-product at Casa Berardi and Nevada Operations. Only costs and ounces produced relating to units with the same primary product are combined to represent Cash Cost, After By-product Credits, per Ounce and AISC, After By-product Credits, per Ounce. Thus, the gold produced at our Casa Berardi and Nevada Operations units are not included as a by-product credit when calculating Cash Cost, After By-product Credits, per Silver Ounce and AISC, After By-product Credits, per Silver Ounce for the total of Greens Creek, Lucky Friday and San Sebastian, our combined silver properties.

In thousands(except per ounce Three Months Ended September 30, 2020amounts)

Greens Lucky San Corporate Total Creek Friday^(3) Sebastian ^(5) Silver ^(4)

Cost of sales andother directproduction costs $ 51,057 $ 21,500 $ 5,960 $ 78,517 and depreciation,depletion andamortization

Depreciation,depletion and (11,735 ) (2,956 ) (781 ) (15,472 )amortization

Treatment costs 22,675 4,038 81 26,794

Change in product 2,899 11 826 3,736 inventory

Reclamation and (891 ) - (392 ) (1,283 )other costs ^(1)

Exclusion ofLucky Friday - (22,593 ) - (22,593 )costs

Cash Cost, BeforeBy-product 64,005 - 5,694 69,699 Credits ^(2)

Reclamation and 788 - 114 902 other costs

Exploration 370 - - 429 799

Sustaining 8,265 - 244 38 8,547 capital

General andadministrative^ 10,345 10,345 (1)

AISC, BeforeBy-product 73,428 - 6,052 90,292 Credits ^(2)

By-product credits:

Zinc (23,772 ) - (23,772 )

Gold (21,226 ) - (3,686 ) (24,912 )

Lead (8,149 ) - (8,149 )

Total By-product (53,147 ) - (3,686 ) (56,833 )credits

Cash Cost, AfterBy-product $ 10,858 $ - $ 2,008 $ 12,866 Credits

AISC, AfterBy-product $ 20,281 $ - $ 2,366 $ 33,459 Credits

Divided by silver 2,634 - 267 2,901 ounces produced

Cash Cost, BeforeBy-product $ 24.30 $ - $ 21.34 $ 24.02 Credits, perSilver Ounce

By-product (20.18 ) - (13.81 ) (19.59 )credits per ounce

Cash Cost, AfterBy-product $ 4.12 $ - $ 7.53 $ 4.43 Credits, perSilver Ounce

AISC, BeforeBy-product $ 27.88 $ - $ 22.68 $ 31.12 Credits, perSilver Ounce

By-product (20.18 ) - (13.81 ) (19.59 )credits per ounce

AISC, AfterBy-product $ 7.70 $ - $ 8.87 $ 11.53 Credits, perSilver Ounce

Three Months Ended September 30,In thousands (except per ounce amounts) 2020

Casa Nevada Berardi^ Operations Total Gold (6) ^(7)

Cost of sales and other direct productioncosts and depreciation, depletion and $ 53,821 $ 13,877 $ 67,698 amortization

Depreciation, depletion and amortization (17,471 ) (7,295 ) (24,766 )

Treatment costs 562 - 562

Change in product inventory 543 6,920 7,463

Reclamation and other costs ^(1) (449 ) (324 ) (773 )

Exclusion of Nevada Operations costs - (13,178 ) (13,178 )

Cash Cost, Before By-product Credits ^(2) 37,006 - 37,006

Reclamation and other costs 97 - 97

Exploration 335 - 335

Sustaining capital 11,629 - 11,629

General and administrative ^(1) - - -

AISC, Before By-product Credits ^(2) 49,067 - 49,067

By-product credits:

Silver (93 ) - (93 )

Total By-product credits (93 ) - (93 )

Cash Cost, After By-product Credits $ 36,913 $ - $ 36,913

AISC, After By-product Credits $ 48,974 $ - $ 48,974

Divided by gold ounces produced 26 - 26

Cash Cost, Before By-product Credits, per $ 1,402 $ - $ 1,402 Gold Ounce

By-product credits per ounce (4 ) - (4 )

Cash Cost, After By-product Credits, per $ 1,398 $ - $ 1,398 Gold Ounce

AISC, Before By-product Credits, per Gold $ 1,859 $ - $ 1,859 Ounce

By-product credits per ounce (4 ) - (4 )

AISC, After By-product Credits, per Gold $ 1,855 $ - $ 1,855 Ounce

In thousands (except per ounce amounts) Three Months Ended September 30, 2020

Total Total Gold Total Silver

Cost of sales and other directproduction costs and depreciation, $ 78,517 $ 67,698 $ 146,215 depletion and amortization

Depreciation, depletion and amortization (15,472 ) (24,766 ) (40,238 )

Treatment costs 26,794 562 27,356

Change in product inventory 3,736 7,463 11,199

Reclamation and other costs^ (1) (1,283 ) (773 ) (2,056 )

Exclusion of costs (22,593 ) (13,178 ) (35,771 )

Cash Cost, Before By-product Credits ^ 69,699 37,006 106,705 (2)

Reclamation and other costs 902 97 999

Exploration 799 335 1,134

Sustaining capital 8,547 11,629 20,176

General and administrative ^(1) 10,345 - 10,345

AISC, Before By-product Credits ^(2) 90,292 49,067 139,359

By-product credits:

Zinc (23,772 ) - (23,772 )

Gold (24,912 ) - (24,912 )

Lead (8,149 ) - (8,149 )

Silver (93 ) (93 )

Total By-product credits (56,833 ) (93 ) (56,926 )

Cash Cost, After By-product Credits $ 12,866 $ 36,913 $ 49,779

AISC, After By-product Credits $ 33,459 $ 48,974 $ 82,433

Divided by ounces produced 2,901 26

Cash Cost, Before By-product Credits, $ 24.02 $ 1,402 per Ounce

By-product credits per ounce (19.59 ) (4 )

Cash Cost, After By-product Credits, per $ 4.43 $ 1,398 Ounce

AISC, Before By-product Credits, per $ 31.12 $ 1,859 Ounce

By-product credits per ounce (19.59 ) (4 )

AISC, After By-product Credits, per $ 11.53 $ 1,855 Ounce

In thousands Three Months Ended September 30, 2019(except per ounceamounts) Greens Lucky San Corporate Total Creek Friday^ Sebastian ^(5) Silver (3)

Cost of sales andother directproduction costs $ 40,475 $ 4,018 $ 12,842 $ 57,335 and depreciation,depletion andamortization

Depreciation,depletion and (9,008 ) (300 ) (3,326 ) (12,634 )amortization

Treatment costs 13,003 500 63 13,566

Change in product 8,456 (134 ) (335 ) 7,987 inventory

Reclamation and (92 ) - (294 ) (386 )other costs

Exclusion of Lucky - (4,084 ) (4,084 )Friday costs

Cash Cost, BeforeBy-product Credits 52,834 - 8,950 61,784 ^(2)

Reclamation and 737 - 123 860 other costs

Exploration 465 - 1,252 167 1,884

Sustaining capital 8,966 - 528 - 9,494

General and 7,978 7,978 administrative

AISC, BeforeBy-product Credits 63,002 - 10,853 82,000 ^(2)

By-product credits:

Zinc (22,452 ) - (22,452 )

Gold (17,517 ) - (6,946 ) (24,463 )

Lead (7,649 ) - (7,649 )

Total By-product (47,618 ) - (6,946 ) (54,564 )credits

Cash Cost, After $ 5,216 $ - $ 2,004 $ 7,220 By-product Credits

AISC, After $ 15,384 $ - $ 3,907 $ 27,436 By-product Credits

Divided by ounces 2,544 541 3,085 produced

Cash Cost, BeforeBy-product $ 20.77 $ 16.54 $ 20.03 Credits, per Ounce

By-product credits (18.72 ) (12.84 ) (17.69 )per ounce

Cash Cost, AfterBy-product $ 2.05 $ - $ 3.70 $ 2.34 Credits, per Ounce

AISC, BeforeBy-product $ 24.77 $ 20.05 $ 26.58 Credits, per Ounce

By-product credits (18.72 ) (12.84 ) (17.69 )per ounce

AISC, AfterBy-product $ 6.05 $ - $ 7.21 $ 8.89 Credits, per Ounce

Three Months Ended September 30,In thousands (except per ounce amounts) 2019

Casa Nevada Total Gold Berardi Operations

Cost of sales and other direct productioncosts and depreciation, depletion and $ 53,006 $ 36,311 $ 89,317 amortization

Depreciation, depletion and amortization (19,090 ) (19,050 ) (38,140 )

Treatment costs 561 45 606

Change in product inventory 1,070 2,118 3,188

Reclamation and other costs (129 ) (377 ) (506 )

Cash Cost, Before By-product Credits ^(2) 35,418 19,047 54,465

Reclamation and other costs 130 378 508

Exploration 603 1,232 1,835

Sustaining capital 13,237 2,305 15,542

AISC, Before By-product Credits ^(2) 49,388 22,962 72,350

By-product credits:

Silver (111 ) (755 ) (866 )

Total By-product credits (111 ) (755 ) (866 )

Cash Cost, After By-product Credits $ 35,307 $ 18,292 $ 53,599

AISC, After By-product Credits $ 49,277 $ 22,207 $ 71,484

Divided by ounces produced 37 22 59

Cash Cost, Before By-product Credits, per $ 969 $ 851 $ 924 Ounce

By-product credits per ounce (3 ) (34 ) (15 )

Cash Cost, After By-product Credits, per $ 966 $ 817 $ 909 Ounce

AISC, Before By-product Credits, per Ounce $ 1,351 $ 1,026 $ 1,228

By-product credits per ounce (3 ) (34 ) (15 )

AISC, After By-product Credits, per Ounce $ 1,348 $ 992 $ 1,213

In thousands (except per ounce amounts) Three Months Ended September 30, 2019

Total Total Gold Total Silver

Cost of sales and other directproduction costs and depreciation, $ 57,335 $ 89,317 $ 146,652depletion and amortization

Depreciation, depletion and amortization (12,634) (38,140) (50,774)

Treatment costs 13,566 606 14,172

Change in product inventory 7,987 3,188 11,175

Reclamation and other costs (386) (506) (892)

Exclusion of Lucky Friday costs (4,084) (4,084)

Cash Cost, Before By-product Credits ^ 61,784 54,465 116,249(2)

Reclamation and other costs 860 508 1,368

Exploration 1,884 1,835 3,719

Sustaining capital 9,494 15,542 25,036

General and administrative 7,978 - 7,978

AISC, Before By-product Credits ^(2) 82,000 72,350 154,350

By-product credits:

Zinc (22,452) - (22,452)

Gold (24,463) - (24,463)

Lead (7,649) - (7,649)

Silver (866) (866)

Total By-product credits (54,564) (866) (55,430)

Cash Cost, After By-product Credits $ 7,220 $ 53,599 $ 60,819

AISC, After By-product Credits $ 27,436 $ 71,484 $ 98,920

Divided by ounces produced 3,085 59

Cash Cost, Before By-product Credits, $ 20.03 $ 924 per Ounce

By-product credits per ounce (17.69) (15)

Cash Cost, After By-product Credits, per $ 2.34 $ 909 Ounce

AISC, Before By-product Credits, per $ 26.58 $ 1,228 Ounce

By-product credits per ounce (17.69) (15)

AISC, After By-product Credits, per $ 8.89 $ 1,213 Ounce

In thousands Nine Months Ended September 30, 2020(except perounce amounts) Greens Lucky San Corporate Total Creek Friday^(3) Sebastian^ ^(5) Silver (4)

Cost of salesand otherdirectproduction $ 157,910 $ 35,787 $ 18,271 $ 211,968 costs anddepreciation,depletion andamortization

Depreciation,depletion and (37,152 ) (5,152 ) (3,149 ) (45,453 )amortization

Treatment costs 58,517 7,502 232 66,251

Change inproduct 1,749 807 681 3,237 inventory

Reclamation andother costs ^ (478 ) - (1,050 ) (1,528 )(1)

Exclusion ofLucky Friday - (38,944 ) - (38,944 )costs

Cash Cost,Before 180,546 - 14,985 195,531 By-productCredits ^(2)

Reclamation and 2,365 - 342 2,707 other costs

Exploration 374 - - 1,362 1,736

Sustaining 18,276 - 299 38 18,613 capital

General andadministrative 26,263 26,263 ^(1)

AISC, BeforeBy-product 201,561 - 15,626 244,850 Credits ^(2)

By-product credits:

Zinc (59,711 ) - (59,711 )

Gold (57,850 ) (10,402 ) (68,252 )

Lead (22,208 ) - (22,208 )

TotalBy-product (139,769 ) - (10,402 ) (150,171 )credits

Cash Cost,After $ 40,777 $ - $ 4,583 $ 45,360 By-productCredits

AISC, AfterBy-product $ 61,792 $ - $ 5,224 $ 94,679 Credits

Divided bysilver ounces 8,164 - 772 8,936 produced

Cash Cost,BeforeBy-product $ 22.11 $ - $ 19.40 $ 21.89 Credits, perSilver Ounce

By-productcredits per (17.12 ) - (13.47 ) (16.81 )ounce

Cash Cost,AfterBy-product $ 4.99 $ - $ 5.93 $ 5.08 Credits, perSilver Ounce

AISC, BeforeBy-product $ 24.69 $ - $ 20.23 $ 27.40 Credits, perSilver Ounce

By-productcredits per (17.12 ) - (13.47 ) (16.81 )ounce

AISC, AfterBy-product $ 7.57 $ - $ 6.76 $ 10.59 Credits, perSilver Ounce

In thousands (except per ounce amounts) Nine Months Ended September 30, 2020

Casa Nevada Berardi^(6) Operations Total Gold ^(7)

Cost of sales and other directproduction costs and depreciation, $ 147,728 $ 44,348 $ 192,076 depletion and amortization

Depreciation, depletion and (51,149 ) (22,725 ) (73,874 )amortization

Treatment costs 1,693 45 1,738

Change in product inventory 1,751 15,869 17,620

Reclamation and other costs ^(1) (637 ) (978 ) (1,615 )

Exclusion of Nevada Operations costs - (13,178 ) (13,178 )

Cash Cost, Before By-product Credits ^ 99,386 23,381 122,767 (2)

Reclamation and other costs 287 654 941

Exploration 1,493 - 1,493

Sustaining capital 24,413 1,600 26,013

AISC, Before By-product Credits ^(2) 125,579 25,635 151,214

By-product credits:

Silver (285 ) (635 ) (920 )

Total By-product credits (285 ) (635 ) (920 )

Cash Cost, After By-product Credits $ 99,101 $ 22,746 $ 121,847

AISC, After By-product Credits $ 125,294 $ 25,000 $ 150,294

Divided by gold ounces produced 84 32 116

Cash Cost, Before By-product Credits, $ 1,184 $ 736 $ 1,061 per Gold Ounce

By-product credits per ounce (3 ) (20 ) (8 )

Cash Cost, After By-product Credits, $ 1,181 $ 716 $ 1,053 per Gold Ounce

AISC, Before By-product Credits, per $ 1,496 $ 807 $ 1,307 Gold Ounce

By-product credits per ounce (3 ) (20 ) (8 )

AISC, After By-product Credits, per $ 1,493 $ 787 $ 1,299 Gold Ounce

In thousands (except per ounce amounts) Nine Months Ended September 30, 2020

Total Total Gold Total Silver

Cost of sales and other directproduction costs and depreciation, $ 211,968 $ 192,076 $ 404,044depletion and amortization

Depreciation, depletion and amortization (45,453) (73,874) (119,327)

Treatment costs 66,251 1,738 67,989

Change in product inventory 3,237 17,620 20,857

Reclamation and other costs ^(1) (1,528) (1,615) (3,143)

Exclusion of costs (38,944) (13,178) (52,122)

Cash Cost, Before By-product Credits ^ 195,531 122,767 318,298(2)

Reclamation and other costs 2,707 941 3,648

Exploration 1,736 1,493 3,229

Sustaining capital 18,613 26,013 44,626

General and administrative ^(1) 26,263 - 26,263

AISC, Before By-product Credits ^(2) 244,850 151,214 396,064

By-product credits:

Zinc (59,711) - (59,711)

Gold (68,252) - (68,252)

Lead (22,208) - (22,208)

Silver (920) (920)

Total By-product credits (150,171) (920) (151,091)

Cash Cost, After By-product Credits $ 45,360 $ 121,847 $ 167,207

AISC, After By-product Credits $ 94,679 $ 150,294 $ 244,973

Divided by ounces produced 8,936 116

Cash Cost, Before By-product Credits, $ 21.89 $ 1,061 per Ounce

By-product credits per ounce (16.81) (8)

Cash Cost, After By-product Credits, per $ 5.08 $ 1,053 Ounce

AISC, Before By-product Credits, per $ 27.40 $ 1,307 Ounce

By-product credits per ounce (16.81) (8)

AISC, After By-product Credits, per $ 10.59 $ 1,299 Ounce

In thousands Nine Months Ended September 30, 2019(except perounce amounts) Greens Lucky San Corporate Total Creek Friday^(3) Sebastian ^(5) Silver

Cost of salesand otherdirectproduction $ 140,237 $ 11,149 $ 36,338 $ 187,724 costs anddepreciation,depletion andamortization

Depreciation,depletion and (32,228 ) (891 ) (6,934 ) (40,053 )amortization

Treatment costs 34,319 1,834 432 36,585

Change inproduct 9,168 708 (1,378 ) 8,498 inventory

Reclamation and (1,439 ) - (1,030 ) (2,469 )other costs

Exclusion ofLucky Friday - (12,800 ) (12,800 )costs

Cash Cost,Before 150,057 - 27,428 177,485 By-productCredits ^(2)

Reclamation and 2,212 - 369 2,581 other costs

Exploration 625 - 4,452 1,105 6,182

Sustaining 22,943 - 1,496 73 24,512 capital

General and 26,855 26,855 administrative

AISC, BeforeBy-product 175,837 - 33,745 237,615 Credits ^(2)

By-product credits:

Zinc (67,957 ) - (67,957 )

Gold (49,385 ) - (16,193 ) (65,578 )

Lead (20,764 ) - (20,764 )

TotalBy-product (138,106 ) - (16,193 ) (154,299 )credits

Cash Cost,After $ 11,951 $ - $ 11,235 $ 23,186 By-productCredits

AISC, AfterBy-product $ 37,731 $ - $ 17,552 $ 83,316 Credits

Divided by 7,149 - 1,446 8,595 ounces produced

Cash Cost,BeforeBy-product $ 20.99 $ - $ 18.97 $ 20.65 Credits, perOunce

By-productcredits per (19.32 ) - (11.20 ) (17.95 )ounce

Cash Cost,AfterBy-product $ 1.67 $ - $ 7.77 $ 2.70 Credits, perOunce

AISC, BeforeBy-product $ 24.60 $ 23.34 $ 27.65 Credits, perOunce

By-productcredits per (19.32 ) (11.20 ) (17.95 )ounce

AISC, AfterBy-product $ 5.28 $ - $ 12.14 $ 9.70 Credits, perOunce

In thousands (except per ounce amounts) Nine Months Ended September 30, 2019

Casa Nevada Total Gold Berardi Operations

Cost of sales and other directproduction costs and depreciation, $ 157,239 $ 105,277 $ 262,516 depletion and amortization

Depreciation, depletion and (53,806 ) (45,179 ) (98,985 )amortization

Treatment costs 1,429 119 1,548

Change in product inventory 971 (3,097 ) (2,126 )

Reclamation and other costs (385 ) (1,641 ) (2,026 )

Cash Cost, Before By-product Credits ^ 105,448 55,479 160,927 (2)

Reclamation and other costs 386 1,134 1,520

Exploration 2,890 2,048 4,938

Sustaining capital 28,360 27,565 55,925

AISC, Before By-product Credits ^(2) 137,084 86,226 223,310

By-product credits:

Silver (328 ) (2,551 ) (2,879 )

Total By-product credits (328 ) (2,551 ) (2,879 )

Cash Cost, After By-product Credits $ 105,120 $ 52,928 $ 158,048

AISC, After By-product Credits $ 136,756 $ 83,675 $ 220,431

Divided by ounces produced 100 45 145

Cash Cost, Before By-product Credits, $ 1,058 $ 1,221 $ 1,109 per Ounce

By-product credits per ounce (3 ) (56 ) (20 )

Cash Cost, After By-product Credits, $ 1,055 $ 1,165 $ 1,089 per Ounce

AISC, Before By-product Credits, per $ 1,376 $ 1,897 $ 1,540 Ounce

By-product credits per ounce (3 ) (56 ) (20 )

AISC, After By-product Credits, per $ 1,373 $ 1,841 $ 1,520 Ounce

In thousands (except per ounce amounts) Nine Months Ended September 30, 2019

Total Total Gold Total Silver

Cost of sales and other directproduction costs and depreciation, $ 187,724 $ 262,516 $ 450,240 depletion and amortization

Depreciation, depletion and (40,053 ) (98,985 ) (139,038 )amortization

Treatment costs 36,585 1,548 38,133

Change in product inventory 8,498 (2,126 ) 6,372

Reclamation and other costs (2,469 ) (2,026 ) (4,495 )

Exclusion of Lucky Friday costs (12,800 ) - (12,800 )

Cash Cost, Before By-product Credits ^ 177,485 160,927 338,412 (2)

Reclamation and other costs 2,581 1,520 4,101

Exploration 6,182 4,938 11,120

Sustaining capital 24,512 55,925 80,437

General and administrative 26,855 - 26,855

AISC, Before By-product Credits ^(2) 237,615 223,310 460,925

By-product credits:

Zinc (67,957 ) - (67,957 )

Gold (65,578 ) - (65,578 )

Lead (20,764 ) - (20,764 )

Silver (2,879 ) (2,879 )

Total By-product credits (154,299 ) (2,879 ) (157,178 )

Cash Cost, After By-product Credits $ 23,186 $ 158,048 $ 181,234

AISC, After By-product Credits $ 83,316 $ 220,431 $ 303,747

Divided by ounces produced 8,595 145

Cash Cost, Before By-product Credits, $ 20.65 $ 1,109 per Ounce

By-product credits per ounce (17.95 ) (20 )

Cash Cost, After By-product Credits, $ 2.70 $ 1,089 per Ounce

AISC, Before By-product Credits, per $ 27.65 $ 1,540 Ounce

By-product credits per ounce (17.95 ) (20 )

AISC, After By-product Credits, per $ 9.70 $ 1,520 Ounce

In thousands Prior Estimate for Twelve Months Ended December 31, 2020(except perounce amounts) Greens Lucky San Corporate Total Creek Friday^(3) Sebastian^ ^(5) Silver (4)

Cost of salesand otherdirectproduction $ 205,000 $ 36,000 $ 25,000 $ 266,000 costs anddepreciation,depletion andamortization

Depreciation,depletion and (40,000 ) (6,500 ) (4,300 ) (50,800 )amortization

Treatment costs 47,700 7,500 0 55,200

Change inproduct 6,600 - (5,600 ) 1,000 inventory

Reclamation andother costs ^ 2,500 200 500 3,200 (1)

Exclusion ofLucky Friday (22,500 ) (22,500 )Costs

Cash Cost,Before 221,800 14,700 15,600 252,100 By-productCredits ^(2)

Reclamation and 3,500 200 500 4,200 other costs

Exploration 500 - 775 1,275

Sustaining 25,500 2,850 75 28,425 capital

General andadministrative - - 29,000 29,000 ^(1)

AISC, BeforeBy-product 251,300 17,750 16,950 315,000 Credits ^(2)

By-product credits:

Zinc (67,000 ) (2,000 ) (69,000 )

Gold (68,000 ) (10,500 ) (78,500 )

Lead (27,000 ) (6,000 ) (33,000 )

TotalBy-product (162,000 ) (8,000 ) (10,500 ) (180,500 )credits

Cash Cost,After $ 59,800 $ 6,700 $ 5,100 $ 71,600 By-productCredits

AISC, AfterBy-product $ 89,300 $ 9,750 $ 6,450 $ 134,500 Credits

Divided bysilver ounces 9,100 675 700 10,475 produced

Cash Cost,BeforeBy-product $ 24.37 $ 21.78 $ 22.29 $ 24.07 Credits, perSilver Ounce

By-productcredits per (17.80 ) (11.85 ) (15.00 ) (17.23 )silver ounce

Cash Cost,AfterBy-product $ 6.57 $ 9.93 $ 7.29 $ 6.84 Credits, perSilver Ounce

AISC, BeforeBy-product $ 27.62 $ 26.30 $ 24.21 $ 30.07 Credits, perSilver Ounce

By-productcredits per (17.80 ) (11.85 ) (15.00 ) (17.23 )silver ounce

AISC, AfterBy-product $ 9.81 $ 14.44 $ 9.21 $ 12.84 Credits, perSilver Ounce

Prior Estimate for Twelve Months EndedIn thousands (except per ounce amounts) December 31, 2020

Casa Nevada Berardi ^ Operations Total Gold (6) ^(7)

Cost of sales and other directproduction costs and depreciation, $ 185,000 $ 39,000 $ 224,000 depletion and amortization

Depreciation, depletion and amortization (66,000 ) (14,000 ) (80,000 )

Treatment costs - 2,000 2,000

Change in product inventory (5,000 ) (3,550 ) (8,550 )

Reclamation and other costs ^(1) 1,000 1,250 2,250

Cash Cost, Before By-product Credits ^ 115,000 24,700 139,700 (2)

Reclamation and other costs 600 500 1,100

Exploration 2,600 85 2,685

Sustaining capital 34,500 1,000 35,500

AISC, Before By-product Credits ^(2) 152,700 26,285 178,985

By-product credits: -

Silver (1,400 ) (650 ) (2,050 )

Total By-product credits (1,400 ) (650 ) (2,050 )

Cash Cost, After By-product Credits $ 113,600 $ 24,050 $ 137,650

AISC, After By-product Credits $ 151,300 $ 25,635 $ 176,935

Divided by gold ounces produced 122 27 149

Cash Cost, Before By-product Credits, $ 943 $ 915 $ 938 per Gold Ounce

By-product credits per gold ounce (11 ) (24 ) (14 )

Cash Cost, After By-product Credits, per $ 931 $ 891 $ 924 Gold Ounce

AISC, Before By-product Credits, per $ 1,252 $ 974 $ 1,201 Gold Ounce

By-product credits per gold ounce (11 ) (24 ) (14 )

AISC, After By-product Credits, per Gold $ 1,240 $ 949 $ 1,187 Ounce

Prior Estimate for Twelve Months EndedIn thousands (except per ounce amounts) December 31, 2020

Total Total Gold Total Silver

Cost of sales and other directproduction costs and depreciation, $ 266,000 $ 224,000 $ 490,000 depletion and amortization

Depreciation, depletion and (50,800 ) (80,000 ) (130,800 )amortization

Treatment costs 55,200 2,000 57,200

Change in product inventory 1,000 (8,550 ) (7,550 )

Reclamation and other costs ^(1) 3,200 2,250 5,450

Exclusion of Lucky Friday Costs (22,500 ) (22,500 )

Cash Cost, Before By-product Credits ^ 252,100 139,700 391,800 (2)

Reclamation and other costs 4,200 1,100 5,300

Exploration 1,275 2,685 3,960

Sustaining capital 28,425 35,500 63,925

General and administrative ^(1) 29,000 - 29,000

AISC, Before By-product Credits ^(2) 315,000 178,985 493,985

By-product credits:

Zinc (69,000 ) - (69,000 )

Gold (78,500 ) - (78,500 )

Lead (33,000 ) - (33,000 )

Silver (2,050 ) (2,050 )

Total By-product credits (180,500 ) (2,050 ) (182,550 )

Cash Cost, After By-product Credits $ 71,600 $ 137,650 $ 209,250

AISC, After By-product Credits $ 134,500 $ 176,935 $ 311,435

Divided by ounces produced 10,475 149

Cash Cost, Before By-product Credits, $ 24.07 $ 938 per Ounce

By-product credits per ounce (17.23 ) (14 )

Cash Cost, After By-product Credits, $ 6.84 $ 924 per Ounce

AISC, Before By-product Credits, per $ 30.07 $ 1,201 Ounce

By-product credits per ounce (17.23 ) (14 )

AISC, After By-product Credits, per $ 12.84 $ 1,187 Ounce

In thousands Current Estimate for Twelve Months Ended December 31, 2020(except perounce amounts) Greens Lucky San Corporate Total Creek Friday^(3) Sebastian^ ^(5) Silver (4)

Cost of salesand otherdirectproduction $ 215,000 $ 56,300 $ 25,000 $ 296,300 costs anddepreciation,depletion andamortization

Depreciation,depletion and (49,000 ) (17,500 ) (7,000 ) (73,500 )amortization

Treatment costs 59,000 10,000 -- 69,000

Change inproduct 10,800 - -- 10,800 inventory

Reclamation and 890 (24 ) (676 ) 190 other costs (1)

Exclusion ofLucky Friday (29,300 ) (29,300 )Costs

Cash Cost,Before 236,690 19,476 17,324 273,490 By-productCredits ^(2)

Reclamation and 3,500 200 500 4,200 other costs

Exploration 500 - 1,500 2,000

Sustaining 32,000 3,900 300 36,200 capital

General andadministrative - - 34,720 34,720 ^(1)

AISC, BeforeBy-product 272,690 23,576 19,624 350,610 Credits ^(2)

By-product credits:

Zinc (78,500 ) (3,200 ) (81,700 )

Gold (73,500 ) (12,000 ) (85,500 )

Lead (29,500 ) (8,800 ) (38,300 )

TotalBy-product (181,500 ) (12,000 ) (12,000 ) (205,500 )credits

Cash Cost,After $ 55,190 $ 7,476 $ 5,324 $ 67,990 By-productCredits

AISC, AfterBy-product $ 91,190 $ 11,576 $ 7,624 $ 145,110 Credits

Divided bysilver ounces 10,350 900 850 12,100 produced

Cash Cost,BeforeBy-product $ 22.87 $ 21.64 $ 20.38 $ 22.60 Credits, perSilver Ounce

By-productcredits per (17.54 ) (13.33 ) (14.12 ) (16.98 )silver ounce

Cash Cost,AfterBy-product $ 5.33 $ 8.31 $ 6.26 $ 5.62 Credits, perSilver Ounce

AISC, BeforeBy-product $ 26.35 $ 26.20 $ 23.09 $ 28.98 Credits, perSilver Ounce

By-productcredits per (17.54 ) (13.33 ) (14.12 ) (16.98 )silver ounce

AISC, AfterBy-product $ 8.81 $ 12.86 $ 8.97 $ 11.99 Credits, perSilver Ounce

Current Estimate for Twelve MonthsIn thousands (except per ounce amounts) Ended December 31, 2020

Casa Nevada Berardi ^ Operations Total Gold (6) ^(7)

Cost of sales and other directproduction costs and depreciation, $ 200,000 $ 46,200 $ 246,200 depletion and amortization

Depreciation, depletion and amortization (70,500 ) (23,750 ) (94,250 )

Treatment costs - - -

Change in product inventory - 7,500 7,500

Reclamation and other costs ^(1) 950 1,000 1,950

Exclusion of Nevada Operations Costs (6,600 ) (6,600 )

Cash Cost, Before By-product Credits ^ 130,450 24,350 154,800 (2)

Reclamation and other costs 500 650 1,150

Exploration 2,500 - 2,500

Sustaining capital 40,000 1,600 41,600

AISC, Before By-product Credits ^(2) 173,450 26,600 200,050

By-product credits: -

Silver (500 ) (650 ) (1,150 )

Total By-product credits (500 ) (650 ) (1,150 )

Cash Cost, After By-product Credits $ 129,950 $ 23,700 $ 153,650

AISC, After By-product Credits $ 172,950 $ 25,950 $ 198,900

Divided by gold ounces produced 117 32 149

Cash Cost, Before By-product Credits, $ 1,115 $ 761 $ 1,039 per Gold Ounce

By-product credits per gold ounce (4 ) (20 ) (8 )

Cash Cost, After By-product Credits, per $ 1,111 $ 741 $ 1,031 Gold Ounce

AISC, Before By-product Credits, per $ 1,482 $ 831 $ 1,343 Gold Ounce

By-product credits per gold ounce (4 ) (20 ) (8 )

AISC, After By-product Credits, per Gold $ 1,478 $ 811 $ 1,335 Ounce

Current Estimate for Twelve MonthsIn thousands (except per ounce amounts) Ended December 31, 2020

Total Total Gold Total Silver

Cost of sales and other directproduction costs and depreciation, $ 296,300 $ 246,200 $ 542,500 depletion and amortization

Depreciation, depletion and (73,500 ) (94,250 ) (167,750 )amortization

Treatment costs 69,000 - 69,000

Change in product inventory 10,800 7,500 18,300

Reclamation and other costs ^(1) 190 1,950 2,140

Exclusion of Lucky Friday and Nevada (29,300 ) (6,600 ) (35,900 )Ops Costs

Cash Cost, Before By-product Credits ^ 273,490 154,800 428,290 (2)

Reclamation and other costs 4,200 1,150 5,350

Exploration 2,000 2,500 4,500

Sustaining capital 36,200 41,600 77,800

General and administrative ^(1) 34,720 - 34,720

AISC, Before By-product Credits ^(2) 350,610 200,050 550,660

By-product credits:

Zinc (81,700 ) - (81,700 )

Gold (85,500 ) - (85,500 )

Lead (38,300 ) - (38,300 )

Silver (1,150 ) (1,150 )

Total By-product credits (205,500 ) (1,150 ) (206,650 )

Cash Cost, After By-product Credits $ 67,990 $ 153,650 $ 221,640

AISC, After By-product Credits $ 145,110 $ 198,900 $ 344,010

Divided by ounces produced 12,100 149

Cash Cost, Before By-product Credits, $ 22.60 $ 1,039 per Ounce

By-product credits per ounce (16.98 ) (8 )

Cash Cost, After By-product Credits, $ 5.62 $ 1,031 per Ounce

AISC, Before By-product Credits, per $ 28.98 $ 1,343 Ounce

By-product credits per ounce (16.98 ) (8 )

AISC, After By-product Credits, per $ 11.99 $ 1,335 Ounce

(1) Excludes the discretionary portion of general and administrative costs forGreens Creek, Casa Berardi and corporate of $0.4 million, $0.4 million and $1.4million, respectively, for the third quarter and first nine months of 2020.Also excludes estimated Q4 2020 discretionary general and administrative costsfor Greens Creek, Casa Berardi and corporate of $0.2 million, $0.2 million, and$0.9 million respectively.

(2) Includes all direct and indirect operating costs related to the physicalactivities of producing metals, including mining, processing and other plantcosts, third-party refining and marketing expense, non-discretionary on-sitegeneral and administrative costs, royalties and mining production taxes, beforeby-product revenues earned from all metals other than the primary metalproduced at each unit. AISC, Before By-product Credits also includes on-siteexploration, reclamation, and sustaining capital costs.



(3) The unionized employees at Lucky Friday were on strike from March 2017until January 2020, and production at Lucky Friday has been limited since thestart of the strike. Costs related to ramp-up activities totaling $5.4 millionin the first nine months of 2020, and suspension-related costs totaling $5.7million during the strike in the first half of 2019, along with $6.3 millionand $3.1 million, respectively, in non-cash depreciation expense for thoseperiods, have been excluded from the calculations of cost of sales and otherdirect production costs and depreciation, depletion and amortization, CashCost, Before By-product Credits, Cash Cost, After By-product Credits, AISC,Before By-product Credits, and AISC, After By-product Credits.



(4) In early April 2020, the Government of Mexico issued an order to the miningindustry to reduce operations to a minimum level until April 30 in response toCOVID-19, and the order was subsequently extended until May 30. Our operationsat San Sebastian were suspended during that time. Suspension-related coststotaling $1.1 million for the first nine months of 2020 are reported in aseparate line item on our consolidated statements of operations and excludedfrom the calculations of cost of sales and other direct production costs anddepreciation, depletion and amortization, mining and milling cost per ton, andCash Cost and AISC, After By-product Credits, per Gold Ounce.



(5) AISC, Before By-product Credits for our consolidated silver propertiesincludes non-discretionary corporate costs for general and administrativeexpense, exploration and sustaining capital.



(6) In late March 2020, the Government of Quebec ordered the mining industry toreduce to minimum operations as part of the fight against COVID-19, causing usto suspend our Casa Berardi operations from March 24 until April 15, whenmining operations resumed, resulting in reduced mill throughput.Suspension-related costs totaling $1.6 million for the first nine months of2020 are reported in a separate line item on our consolidated statements ofoperations and excluded from the calculations of cost of sales and other directproduction costs and depreciation, depletion and amortization and Cash Cost andAISC, After By-product Credits, per Gold Ounce.



(7) Production was suspended at the Hollister mine in the third quarter of 2019and at the Midas mine and Aurora mill in late-2019. Suspension-related costs atHollister, Midas and Aurora totaling $9.6 million for the first nine months of2020 are reported in a separate line item on our consolidated statements ofoperations and excluded from the calculations of cost of sales and other directproduction costs and depreciation, depletion and amortization and Cash Cost andAISC, After By-product Credits, per Gold Ounce. During the third quarter of2020, all ore mined at Nevada Operations was stockpiled, with no ore milled andno production reported during the period. As a result, costs incurred at NevadaOperations during the third quarter of 2020 were excluded from the calculationsof Cash Cost and AISC, After By-product Credits, per Gold Ounce.

Reconciliation of Net Income (Loss) Applicable to Common Shareholders (GAAP) to Adjusted Net Income (Loss) Applicable to Common Stockholders (non-GAAP)

This release refers to a non-GAAP measure of adjusted net income (loss) applicable to common stockholders and adjusted net income (loss) per share, which are indicators of our performance. They exclude certain impacts which are of a nature which we believe are not reflective of our underlying performance. Management believes that adjusted net income (loss) per common share provides investors with the ability to better evaluate our underlying operating performance.

Dollars are in thousands Three Months Ended Nine Months Ended(except per share amounts) September 30, September 30,

2020 2019 2020 2019

Net income (loss)applicable to common $ 13,490 $ (19,654 ) $ (17,999 ) $ (91,995 )shareholders (GAAP)

Adjusting items:

Loss on derivatives 6,666 4,718 12,775 2,719 contracts

Environmental accruals - 472 - 472

Foreign exchange loss 2,196 (773 ) (1,235 ) 6,741 (gain)

Provisional price (gains) 4,332 (619 ) (5,265 ) 81 losses

Ramp-up and 1,541 3,722 24,109 8,766 suspension-related costs

Acquisition costs 2 183 13 593

(Gain) loss on dispositionor impairment ofproperties, plants, (14 ) 24 559 4,666 equipment and mineralinterests

Unrealized (gain) loss on (3,979 ) 126 (9,410 ) 1,159 investments

Foundation grant - - 1,970 -

Additional interestassociated with early - - 2,902 - repayment of long-termdebt

Loss on extinguishment of - - 1,666 - debt

Adjusted net income (loss)applicable to common $ 24,234 $ (11,801 ) $ 10,085 $ (66,798 )shareholders

Weighted average shares - 529,838 489,971 526,098 486,298 basic

Weighted average shares - 535,788 489,971 526,098 486,298 diluted

Basic adjusted net income $ 0.05 $ (0.02 ) $ 0.02 $ (0.14 )(loss) per common share

Diluted adjusted netincome (loss) per common $ 0.05 $ (0.02 ) $ 0.02 $ (0.14 )share

Reconciliation of Net Income (Loss) (GAAP) to Adjusted EBITDA (non-GAAP)

This release refers to the non-GAAP measures of adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), which is a measure of our operating performance. Adjusted EBITDA is calculated as net income (loss) before the following items: interest expense, income tax provision, depreciation, depletion, and amortization expense, acquisition costs, foreign exchange gains and losses, unrealized gains and losses on derivative contracts, ramp-up and suspension income and costs, provisional price gains and losses, stock-based compensation, unrealized gains and losses on investments, provisions for closed operations, Foundation grant expense and interest and other income (expense). Management believes that, when presented in conjunction with comparable GAAP measures, Adjusted EBITDA is useful to investors in evaluating our operating performance. The following table reconciles net income (loss) to Adjusted EBITDA:

Dollars are Three Months Ended Nine Months Ended Twelve Months Endedin thousands

Sept 30, Sept 30, Sept 30, Sept 30, Sept 30, Sept 30, 2020 2019 2020 2019 2020 2019

Net income $ 13,628 $ (19,516 ) $ (17,585 ) $ (91,581 ) $ (25,561 ) $ (115,274 )(loss)

Plus:Interest 10,779 11,777 38,919 33,777 53,589 44,702 expense

Plus/(Less): 1,633 (1,614 ) 1,197 (20,009 ) (2,895 ) (25,226 )Income taxes

Plus:Depreciation, 40,238 50,774 119,327 139,038 179,807 169,747 depletion andamortization

Plus:Acquisition 2 183 13 593 65 982 costs

(Less)/Plus:Ramp-up andsuspension 1,541 3,722 24,109 8,766 27,394 11,122 (income)costs

Cash marginon paymentreceived for - 10,912 - 10,912 - 10,912 deferredrevenue

Plus: Loss ondispositionofproperties, (14 ) 24 559 4,666 536 5,247 plants,equipment andmineralinterests

Plus:Stock-based 2,800 1,206 5,229 4,758 6,139 6,364 compensation

Plus:Provision forclosedoperations 1,545 2,089 4,638 5,298 6,254 7,431 andenvironmentalmatters

Plus/(Less):Foreign 2,196 (773 ) (1,235 ) 6,741 260 (713 )exchange(gain) loss

Plus:Unrealizedlosses on 594 11,925 4,483 5,824 4,272 5,666 derivativecontracts

(Less)/Plus:Provisional 4,332 (619 ) (5,265 ) 81 (5,943 ) 612 price (gains)losses

Plus/(Less):Unrealized(gains)/loss (3,979 ) 126 (9,410 ) 1,159 (8,180 ) 1,514 oninvestments

Plus:Foundation - - 1,970 - 1,970 - grant

(Less)/Plus: 406 (430 ) 1,582 2,480 2,608 3,091 Other

Adjusted $ 75,701 $ 69,786 $ 168,531 $ 112,503 $ 240,315 $ 126,177 EBITDA

Total debt $ 509,909 $ 598,891

Less: Cashand cash $ (98,669 ) $ (32,995 )equivalents

Net debt $ 411,240 $ 565,896

Net debt/LTMadjusted 1.7 4.5 EBITDA(non-GAAP)

Reconciliation of Cash Provided by Operating Activities (GAAP) to Free Cash Flow (non-GAAP)

This release refers to a non-GAAP measure of free cash flow, calculated as cash provided by operating activities, less additions to properties, plants, equipment and mineral interests. Management believes that, when presented in conjunction with comparable GAAP measures, free cash flow is useful to investors in evaluating our operating performance. The following table reconciles cash provided by operating activities to free cash flow:

Dollars are in thousands Three Months Ended Nine Months Ended

Sept 30, Sept 30, Sept 30, Sept 30, 2020 2019 2020 2019

Cash provided by operating $ 73,439 $ 54,896 $ 115,892 $ 63,609 activities

Less: Additions toproperties, plants (23,693 ) (26,093 ) (54,382 ) (97,338 )equipment and mineralinterests



Free cash flow $ 49,746 $ 28,803 $ 61,510 $ (33,729 )

Table A - Assay Results - Q3 2020

Greens Creek (Alaska)

Drill Drill Sample Sample True Silver Gold DepthZone Hole Hole From To Width (oz/ (oz/ Zinc Lead From Mine Number Azm/ (feet) (feet) (feet) ton) ton) (%) (%) Portal Dip (feet)

East Ore GC5439 63/-63 311.3 314 2.7 30.1 0.45 5.8 3.1 336Definition

200 South GC5428 243/ 86.2 116 28.5 20.2 0.02 6.3 2.9 -1369Definition -76

GC5428 243/ 144.8 153.3 8.2 19.5 0.03 2.8 1.3 -1432 -76

GC5428 243/ 185.3 187 1.7 27.3 0.01 1.2 0.5 -1466 -76

GC5428 243/ 716.6 759.5 32.9 31.6 0.22 1.2 0.6 -1985 -76

GC5429 243/ 86 95 8.1 27.5 0.03 15.5 7.9 -1363 -54

GC5429 243/ 302 310 6.1 16.3 0.02 1.5 0.6 -1531 -54

GC5429 243/ 360 365 1.6 19.3 0.01 0.8 0.3 -1582 -54

GC5430 243/ 49 50.3 1.3 16.8 0.01 5.9 3 -1320 -46

GC5430 243/ 55.5 56.5 1 33 0.02 13.1 6 -1350 -46

GC5430 243/ 85.5 93.5 8 30.3 0.03 18.2 9.7 -1360 -46

GC5431 243/ 87 95 8 27.5 0.06 7 4.2 -1339 -38

Casa Berardi (Quebec) Drill Depth Drill Hole Drill Hole Sample Sample True Gold FromZone Number Hole Azm/ From To Width (oz/ Mine Section Dip (feet) (feet) (feet) ton) Surface (feet)

UG Upper 149/Principal 123 CBP-0350-048 12375 -40 375.6 387.4 9.8 0.51 -1333Zone

123 CBP-0350-049 12375 149/ 301.8 311.6 8.7 0.14 -1221 -25

123 CBP-0350-050 12360 156/ 267.6 282.1 13.1 0.12 -1195 -20

123 CBP-0350-051 12360 156/ 310 320.8 9.2 0.91 -1257 -33

123 CBP-0350-052 12390 142/ 339.8 343.1 2.7 0.32 -1267 -30

123 CBP-0350-053 12360 162/ 299.1 315.5 9.6 0.63 -1292 -38

123 CBP-0350-053 12360 162/ 299.1 315.5 9.6 0.63 -1292 -38

UG Lower 332/Principal 123 CBP-0880 12330 -63 398.5 447.7 24.6 0.11 -3864Zone

123 Including 332/ 398.5 417.5 9.5 0.19 -3851 -63

123 CBP-0880 12330 332/ 330 369 18 0.09 -3801 -63

123 Including 332/ 330 339.5 4.9 0.15 -3789 -63

UG UpperPrincipal 128 CBP-0856 12750 180/40 337.5 339.2 1.3 0.25 -1375Zone

128 CBP-0859 12750 192/10 292.9 297.5 4.4 0.17 -1530

128 Including 192/10 296.2 297.5 1.1 0.43 -1530

128 CBP-0868 12795 179/28 387 390.3 3.2 0.19 -1410

128 CBP-0869 12800 179/14 346.7 348 1 0.91 -1497

128 CBP-0869 12800 179/14 434.6 442.8 7.9 0.16 -1476

128 CBP-0869 12800 179/14 573.3 575.6 2 0.17 -1445

128 CBP-0871 12795 179/2 414.3 416.6 2.2 0.16 -1546

128 CBP-0872 12795 179/ 444.1 445.8 1.3 0.31 -1640 -22

128 CBP-0878 12780 188/43 374.9 396.9 17.7 0.12 -1337

128 Including 188/43 374.9 379.2 3.3 0.23 -1640

128 Including 188/43 392 396.9 3.9 0.31 -1640

UG East Mine 148 CBE-0217A 14833 355/ 1831.9 1846.6 9.8 0.67 -3085Zone -68

148 CBE-0221 14745 340/ 1325.1 1330 3.3 0.15 -2508 -52

148 CBE-0222 14830 343/ 1569.5 1589.2 13.9 0.16 -2798 -58

148 CBE-0223 14730 346/ 1581 1584.2 2.3 0.14 -2841 -62

Surface East CBS-20-010 16130 360/ 1180.8 1186.7 5.6 0.41 -783Mine 159 Zone -45

159 Including 360/ 1184.1 1186.7 2.6 0.84 -789 -45

Surface East CBF-160-102 15840 360/ 970.6 1020.4 39 0.07 -667Mine 160 Zone -45

160 CBF-160-102 15840 360/ 1078.8 1216.2 108.2 0.07 -760 -45

160 CBF-160-104 16005 360/ 182 202 6.2 0.1 -198 -72

160 CBF-160-104 16005 360/ 403.4 431 12.1 0.08 -410 -72

160 CBF-160-104 16005 360/ 461.8 510 17.7 0.07 -474 -72

160 CBF-160-104 16005 360/ 712.4 731.1 8.9 0.06 -685 -72

160 CBF-160-105 15990 360/ 156.5 182.4 15.7 0.06 -172 -67

160 CBF-160-105 15990 360/ 221.1 277.8 37.1 0.05 -245 -67

160 CBF-160-105 15990 360/ 664.9 724.6 59.7 0.1 -645 -67

160 CBF-160-106 16050 360/ 235.2 249.3 3.3 0.08 -253 -78

160 CBF-160-107 15810 360/ 1383.8 1463.5 75.4 0.05 -1000 -48

160 CBF-160-107 15825 360/ 1582.3 1599.7 13.8 0.07 -1106 -48

160 CBF-160-109 15885 360/ 285.4 363.4 21.4 0.05 -324 -74

160 CBF-160-109 15885 360/ 428.7 678 134.8 0.07 -541 -74

160 CBF-160-109 15885 360/ 683.2 849.2 138.4 0.06 -740 -74

160 Including 360/ 827.2 839 8.9 0.11 -801 -74

160 CBF-160-109 15885 360/ 898.4 925 24.9 0.04 -872 -74

San Sebastian (Mexico) Drill Drill Sample Sample True Silver Gold Depth FromZone Hole Hole From To Width (oz/ (oz/ Mine Number Azm/Dip (feet) (feet) (feet) ton) ton) Portal (feet)

EL BRONCO SS-2034 35/-60 405.7 415.5 5.4 2.7 0.05 -344.8VEIN

EL BRONCO SS-2038 35/-45 203 208.9 4.2 20.7 0.29 -137.3VEIN

EL TIGRE SS-2028 60/-43 1021.5 1028 6.2 1.5 0.01 -687.3VEIN

EL TIGRE SS-2029 60/-43 577.4 599.2 20.4 1 0 -398.7VEIN

EL TIGRE SS-2031 60/-43 555 561.6 6.2 1.4 0.04 -377.9VEIN

EL TIGRE SS-2039 60/-70 694.6 700.2 3.7 1.7 0.01 -648.5VEIN

Category: Earnings

View source version on businesswire.com: https://www.businesswire.com/news/home/20201109005265/en/

CONTACT: Russell Lawlar Treasurer

CONTACT: Jeanne DuPont Corporate Communications Coordinator

CONTACT: 800-HECLA91 (800-432-5291) Investor Relations Email: hmc-info@hecla-mining.com Website: www.hecla-mining.com