Hecla Mining : 2024 Annual Report

REDEFINING VALUE:

DISCIPLINED GROWTH IN PREMIER JURISDICTIONS

2024 ANNUAL COMPANY OVERVIEW

Our employees and partners take pride in the activities depicted in the photographs throughout this report, all of which were taken on active

"It's been a transition year at Hecla, and our strategy is focused on free cash flow generation and deploying more of it toward deleveraging and reducing our debt on a gross basis. This

approach strives for further financial discipline in terms of returns on investments compared to where we've been in the

past and commits to making investment decisions based on the strongest financial returns."

RUSSELL D. LAWLAR, senior vice president and chief financial officer

FINANCIAL HIGHLIGHTS

Hecla properties.

Hecla celebrated 60 years on the New York Stock Exchange by ringing the closing bell on

November 21, 2024.

HIGHLIGHTS

Dollars in thousands except in per-share and per-ounce amounts. Amounts for the years ended December 31.

1. Adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to net loss, the most comparable GAAP measure, can be found below.

2. Cash cost, after by-product credits, per silver and gold ounce, are non-GAAP measurements. A reconciliation of which to total cost of sales can be found in the Reconciliation of Total Cost of Sales (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) section in the company's Form 10-K.

3. All-in sustaining cost (AISC), after by-product credits, represents a non-U.S. generally accepted accounting principles (GAAP) measurement, a reconciliation of which to total cost of sales, the closest GAAP measurement, can be found in the Reconciliation of Total Cost of Sales (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) section in the company's Form 10-K. AISC, after by-product credits, includes total cost of sales, expenses for reclamation, and sustaining capital costs at the mine sites. AISC, after by-product credits, for our consolidated silver properties also includes corporate costs for all general and administrative expenses, exploration and sustaining capital which support the operating properties. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits.

Cautionary Statement Regarding Forward-Looking Statements

This report 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. Words such as "may", "will", "should", "expects", "intends", "projects", "believes", "estimates", "targets", "anticipates," and similar expressions are used to identify these forward-looking statements. Such forward-looking statements may include, without limitation: (i) Casa Berardi expects to mine underground until mid-2025, and the expected stripping ratio for the 160 pit is expected to decline in 2025 with costs expected to lower accordingly;

(ii) Keno Hill is expected to have production growth in 2026; (iii) that a strategic review of Casa Berardi may lead to a transaction or extension of mining underground; (iv) mine-specific and Company-wide 2025 estimates of future production; (v) total cost of sales, as well as cash cost and AISC per ounce (in each case after by-product credits) for Greens Creek, Lucky Friday and Casa Berardi for 2025; and (vi) Company-wide estimated spending on capital, exploration and pre-development for 2025. 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 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) there being no significant changes to the availability of employees, vendors, and equipment; (ix) 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; (x) counterparties performing their obligations

under hedging instruments and put option contracts; (xi) sufficient workforce is available and trained to perform assigned tasks; (xii) weather patterns and rain/snowfall within normal seasonal ranges so as not to impact operations; (xiii) relations with interested parties, including First Nations and Native Americans, remain productive;

(xiv) maintaining availability of water rights; (xv) factors do not arise that reduce available cash balances; and (xvi) there being no material increases in our current requirements to post or maintain reclamation and performance bonds or collateral related thereto.

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; (x) we take a material impairment charge on any of our assets; and

(xi) inflation causes our costs to rise more than we currently expect. For a more detailed discussion of such risks and other factors, see the Company's 2024 Annual Report on Form 10-K, filed with the Securities and Exchange Commission ("SEC") on February 13, 2025 and Form 10-Q filed with the SEC on May 1, 2025. 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)

Kurt D. Allen, MSc., CPG, VP -Exploration of Hecla Mining Company and Keith Blair, MSc., CPG, Chief Geologist of Hecla Limited, who serve as a Qualified Person under S-K 1300 and NI 43-101, supervised the preparation of the scientific and technical information concerning Hecla's mineral projects in this news release. Technical Report Summaries for the Company's Greens Creek, Lucky Friday, Casa Berardi, and Keno Hill properties are filed as exhibits 96.1 - 96.4, respectively, to the Company's Annual Report on Form 10-K for the year ended December

31, 2023 and are available at https://www.sec.gov. Information regarding data verification, surveys and investigations, quality assurance program and quality control measures and a summary of analytical or testing procedures for

(i) the Greens Creek Mine are contained in its Technical Report Summary and in its NI 43-101 technical report titled "Technical Report for the Greens Creek Mine" effective date December 31, 2018, (ii) the Lucky Friday Mine are contained in its Technical Report Summary and in its NI 43-101 technical report titled "Technical Report for the Lucky Friday Mine Shoshone County, Idaho, USA" effective date April 2, 2014, (iii) Casa Berardi are contained in its Technical Report Summary and in its NI 43-101 technical report titled "Technical Report on the Casa Berardi Mine, Northwestern Quebec, Canada" effective date December 31, 2023, (iv) Keno Hill is contained in its Technical Report Summary titled "S-K 1300 Technical Report Summary on the Keno Hill Mine, Yukon, Canada" and in its NI 43-101 technical report titled "Technical Report on the Keno Hill Mine, Yukon, Canada" effective date December 31, 2023, and (v) the San Sebastian Mine, Mexico, are contained in a NI 43-101 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 each Technical Report Summary and technical report listed above 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 are contained in NI 43-101 technical reports prepared for Klondex Mines Ltd. for (i) the Fire Creek Mine (technical report dated March 31, 2018), (ii) the Hollister Mine (technical report dated May 31, 2017, amended August 9, 2017), and (iii) the Midas Mine (technical report dated August 31, 2014, amended April 2, 2015). Information regarding data verification, surveys and investigations, quality assurance program and quality control measures, and a summary of sample, analytical, or testing procedures are contained in a NI 43-101 technical reports prepared for ATAC Resources Ltd. for (i) the Osiris Project (technical report dated July 28, 2022) and (ii)

the Tiger Project (technical report dated February 27, 2020). Copies of these technical reports are available under the SEDAR profiles of Klondex Mines Unlimited Liability Company and ATAC Resources Ltd., respectively, at www. sedar.com (the Fire Creek technical report is also available under Hecla's profile on SEDAR). 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.

Cautionary Note Regarding Non-GAAP Measures

Cash cost and AISC per ounce of silver and gold, after by-product credits, EBITDA, adjusted EBITDA, All-in Sustaining Costs, after byproduct credits, realized silver margin, and free cash flow represent non-U.S. Generally Accepted Accounting Principles (GAAP) measurements. A reconciliation of these non-GAAP measures to the most comparable GAAP measurements can be found in the company's Form 10-K.

FINANCIAL DATA 2024	2023
Sales $ 929,925	$ 720,227
Gross profit $ 198,210	$ 112,949
Income (loss) from operations $ 106,276	$ (44,676)
Net income (loss) $ 35,802	$ (84,217)
Net income (loss) applicable to common shareholders $ 35,250	$ (84,769)
Basic income (loss) per common share $ 0.06	$ (0.14)
Cash and cash equivalents $ 26,868	$ 106,374
Net cash provided by operating activities $ 218,277	$ 75,727
Capital expenditures $ (214,492)	$ (223,887)
Adjusted EBITDA (1) $ 337,909	$ 208,799
YEAR-END DATA Common stock outstanding (in thousands) 640,548	624,647
Common stock dividend (per share) $ 0.04	$ 0.0375
Employees 1,830	1,775
OPERATIONAL DATA Silver production (oz.) 16,169,930	14,342,863
Gold production (oz.) 141,923	151,259
Lead production (tons) 52,515	40,347
Zinc production (tons) 66,308	60,579
Total cost of sales - silver $ 487,574	$ 379,598
Total cost of sales - gold $ 223,614	$ 221,341
Cash cost, after by-product credits, per silver ounce (2) $ 2.72	$ 3.23
Cash cost, after by-product credits, per gold ounce (2) $ 1,762	$ 1,652
All-in sustaining cost, after by-product credits, per silver ounce (3) $ 13.06	$ 11.76
All-in sustaining cost, after by-product credits, per gold ounce (3) $ 1,990	$ 2,048

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (NON-GAAP)
Dollars in thousands. Amounts for the year ended December 31.	2024	2023
Net income (loss)	$ 35,802	$ (84,217)
Interest expense	49,834	43,319
Income and mining tax expense	30,414	1,222
Depreciation, depletion, and amortization	190,471	163,672
Ramp-up and suspension costs	33,985	72,498
Loss on disposition of properties, plants, equipment, and mineral interests	(1,244)	849
Foreign exchange (gain) loss	(7,552)	3,810
Write down of property, plant and equipment	14,574
Fair value adjustments, net	2,204	(2,925)
Provisional price gains	(22,880)	(18,230)
Provision for closed operations and environmental matters	6,843	7,575
Stock-based compensation	8,659	6,598
Inventory adjustments	11,707	20,819
Monetization of zinc and lead hedges	(10,483)	(4,447)
Other	(4,425)	(1,744)
Adjusted EBITDA	$ 337,909	$ 208,799

RECONCILIATION OF CASH FLOW PROVIDED BY OPERATING ACTIVITIES (GAAP) TO FREE CASH FLOW (NON-GAAP)

Amounts for the year ended December 31, 2024.

GREENS CREEK LUCKY FRIDAY

Cash provided by operating activities	$ 186,500	$ 131,361
Exploration	8,016	-
Less: Additions to properties, plants, equipment, and mineral interests	(47,795)	(49,592)
Free cash flow	$ 146,721	$ 81,769

RECONCILIATION OF CASH FLOW PROVIDED BY OPERATING ACTIVITIES (GAAP) TO FREE CASH FLOW (NON-GAAP) - GREENS CREEK, SINCE 1987

Dollars in millions.

GREENS CREEK

Cash provided by operating activities $ 3,225 Less: Additions to properties, plants, equipment, and mineral interests (1,098) Free cash flow $ 2,127

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OUR VALUES

PEOPLE AND SAFETY FIRST

INTEGRITY AND TEAMWORK

EMPOWERMENT AND ENGAGEMENT

SUSTAINABILITY EXCELLENCE

ACCOUNTABILITY AND RESULTS

INNOVATION AND CONTINUOUS

"Even as a company with a 134-year history, Hecla continues to look for ways to improve, year after year. With our leadership change in 2024, we implemented a new strategy that included

defining our core values and reinforcing those values within the company. Our strong culture is the foundation of our success and isn't driven by one person or a small group in leadership, but by everyone in the organization."

CARLOS AGUIAR, senior vice president and chief operating officer

VALUES AND CULTURE

IMPROVEMENT

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Dear Shareholder,

When the board began looking for a candidate to lead the executive team, we set the bar high. As a thriving company with a 134-year legacy, Hecla deserves a well-regarded leader who possesses both a deep understanding of the mining industry and a high sense of integrity. Someone who can strengthen the whole organization by giving every member the opportunity

to grow and excel. After all, the performance of an organization rests on more than one person.

In Rob Krcmarov, we got everything we wanted and more. Rob brings an outstanding reputation in the mining industry as the former global head of exploration at Barrick Gold, having been responsible for some of the

company's greatest successes in exploration. He embraces Hecla's strengths yet remains incredibly transparent about its challenges and what it takes to fix them.

This is a strong organization with talented and dedicated people. Rob seeks out a diversity of viewpoints and respects the role and dignity of every person in the organization. He's committed to developing future leaders and setting them - and the company - up for great success.

Hecla produces a metal that's key to the future, and it operates in the best jurisdictions in the world. Now's the time to maximize these opportunities. With its leadership transition, Hecla is refocusing on the

fundamentals of responsible mining, maintaining its social license, cultivating sustainable communities around its mining operations, and creating sustainable shareholder returns. Moving forward, the company is committed to enhancing cash flow, taking a disciplined approach to spending, and deploying capital in ways that get the best return for you, the shareholder.

This year, Hecla has ushered in a welcome change, one that's energizing the company today and ensuring its success tomorrow.

CATHERINE J. BOGGS

chairperson, board of directors

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