(1) Quantities produced are amounts recovered in our milling
processes and contained in concentrate and dor?hipped by us,
while payable quantities are net of deductions taken by smelters
and refiners to which we ship our products. Differences between
the two values also include inventory variations.

(2) Total cash costs per ounce of silver represent non-U.S.
Generally Accepted Accounting Principles (GAAP) measurements. A
reconciliation of total cash costs to cost of sales and other
direct production costs and depreciation, depletion and
amortization (GAAP) can be found in the cash costs per ounce
reconciliation section of this news release. For additional
information, see the cash costs per ounce reconciliation section.

(3) Includes gold, lead and zinc produced at silver operations,
which is treated as a by-product credit and included in the
calculation of silver costs per ounce.

HECLA MINING COMPANY
Consolidated Statements of Operations
(dollars and shares in thousands, except per share amounts - unaudited)

	Second Quarter Ended						Six Months Ended
	June 30, 2010			June 30, 2009			June 30, 2010			June 30, 2009

Sales of products	$	88,631		$	74,610		$	168,506		$	129,331
Cost of sales and other direct production costs		35,545			41,526			71,815			71,160
Depreciation, depletion and amortization		15,020			15,927			31,089			31,145
		50,565			57,453			102,904			102,305
Gross profit		38,066			17,157			65,602			27,026

Other operating expenses (income)
General and administrative		4,664			4,604			8,777			9,328
Exploration		5,820			1,236			9,249			2,264
Other operating expenses		1,601			1,348			2,565			2,624
Gain on sale of properties, plants and equipment		--			--			--			(6,228	)
Termination of employee benefit plan		--			--			--			(8,950	)
Provision for closed operations and environmental matters		1,389			1,029			4,765			1,906
		13,474			8,217			25,356			944
Income from operations		24,592			8,940			40,246			26,082

Other income (expense):
Gain on sale of investments		--			--			588			--
Gain on derivative contracts		1,999			--			1,999			--
Loss on impairment of investments		(739	)		(3,018	)		(739	)		(3,018	)
Interest and other income		16			136			67			346
Debt-related fees		--			(464	)		--			(5,739	)
Interest expense		(529	)		(2,750	)		(1,207	)		(7,430	)
		747			(6,096	)		708			(15,841	)
Income before income taxes		25,339			2,844			40,954			10,241
Income tax provision		(8,255	)		(345	)		(2,026	)		(430	)

Net income		17,084			2,499			38,928			9,811
Preferred stock dividends		(3,409	)		(3,409	)		(6,817	)		(6,817	)

Income (loss) applicable to common shareholders	$	13,675		$	(910	)	$	32,111		$	2,994

Basic income per common share after preferred dividends	$	0.06		$	0.00		$	0.13		$	0.01

Diluted income per common share after preferred dividends	$	0.05		$	0.00		$	0.12		$	0.01

Basic weighted average number of common shares outstanding		248,549			222,417			245,371			209,659

Diluted weighted average number of common shares outstanding		266,374			222,417			263,868			210,475

HECLA MINING COMPANY
Consolidated Balance Sheets
(dollars and shares in thousands - unaudited)

	June 30, 2010			Dec. 31, 2009
ASSETS
Current assets:
Cash and cash equivalents	$	197,378		$	104,678
Short-term investments and securities available for sale		--			1,138
Accounts and notes receivable		23,401			27,427
Inventories		24,673			21,466
Deferred taxes		7,134			7,176
Other current assets		5,468			4,578
Total current assets		258,054			166,463
Investments		1,262			2,157
Restricted cash and investments		9,468			10,945
Properties, plants and equipment, net		815,331			819,518
Deferred taxes		38,250			38,476
Other noncurrent assets		7,370			9,225

Total assets	$	1,129,735		$	1,046,784

LIABILITIES
Current liabilities:
Accounts payable and accrued expenses	$	23,325		$	13,998
Accrued payroll and related benefits		6,832			14,164
Accrued taxes		4,984			6,240
Current portion of accrued reclamation and closure costs		5,815			5,773
Current portion of capital leases		1,760			1,560
Total current liabilities		42,716			41,735
Capital leases		2,899			3,281
Accrued reclamation and closure costs		122,000			125,428
Other noncurrent liabilities		11,390			10,855

Total liabilities		179,005			181,299

SHAREHOLDERS′ EQUITY
Preferred stock		543			543
Common stock		63,967			59,604
Capital surplus		1,172,006			1,121,076
Accumulated deficit		(268,803	)		(300,915	)
Accumulated other comprehensive loss		(14,932	)		(14,183	)
Treasury stock		(2,051	)		(640	)

Total shareholders' equity		950,730			865,485

Total liabilities and shareholders' equity	$	1,129,735		$	1,046,784

Common shares outstanding at end of period		255,480			238,416

HECLA MINING COMPANY
Consolidated Statements of Cash Flows
(dollars in thousands ? unaudited)

	Six Months Ended
	June 30, 2010			June 30, 2009
OPERATING ACTIVITIES
Net income	$	38,928		$	9,811
Noncash elements included in net income (loss):
Depreciation, depletion and amortization		31,177			31,145
Gain on sale of investments		(588	)		--
Gain on disposition of properties, plants and equipment		--			(6,228	)
Provision for reclamation and closure costs		2,502			822
Stock compensation		2,473			1,911
Preferred shares issued for bank fees		--			4,262
Deferred income taxes		268			--
Amortization of loan origination fees		320			2,264
Gain on curtailment of employee benefit plan		--			(8,950	)
Loss on impairment of investments		739			3,018
(Gain) loss on derivative contract		(2,202	)		1,230
Other, net		328			773
Change in assets and liabilities:
Accounts and notes receivable		4,023			(13,154	)
Inventories		(3,207	)		62
Other current and noncurrent assets		2,517			(1,578	)
Accounts payable and accrued expenses		10,018			(8,657	)
Accrued payroll and related benefits		(7,332	)		1,595
Accrued taxes		(1,256	)		417
Accrued reclamation and closure costs and other noncurrent liabilities		(5,354	)		844
Net cash provided by operating activities		73,354			19,587

INVESTING ACTIVITIES
Additions to properties, plants and equipment		(26,427	)		(9,267	)
Proceeds from sale of investments		1,138			--
Proceeds from disposition of properties, plants and equipment		--			8,017
(Increase) decrease in restricted cash		1,476			(215	)
Net cash used in investing activities		(23,813	)		(1,465	)

FINANCING ACTIVITIES
Proceeds from exercise of stock options and warrants		45,562			--
Proceeds from issuance of stock, net of related cost		--			128,316
Acquisition of treasury shares		(693	)		--
Dividends paid to preferred shareholders		(966	)		--
Payments on interest rate swap		--			(1,946	)
Repayments of debt		(744	)		(123,605	)
Net cash provided by financing activities		43,159			2,765

Net increase in cash and cash equivalents		92,700			20,887
Cash and cash equivalents at beginning of period		104,678			36,470
Cash and cash equivalents at end of period	$	197,378		$	57,357

HECLA MINING COMPANY
Production Data

	Second Quarter Ended					Six Months Ended
	June 30, 2010			June 30, 2009		June 30, 2010			June 30, 2009
GREENS CREEK UNIT
Tons of ore milled		204,972			205,122		403,096			396,606
Mining cost per ton	$	41.30		$	40.43	$	41.65		$	42.28
Milling cost per ton	$	22.28		$	20.13	$	22.17		$	21.64
Ore grade milled ? Silver (oz./ton)		12.4			13.8		11.7			14.0
Silver produced (oz.)		1,831,279			2,115,098		3,432,934			4,111,951
Gold produced (oz.)		17,880			15,925		34,742			33,974
Lead produced (tons)		6,535			5,353		13,215			10,539
Zinc produced (tons)		19,481			16,874		39,161			32,994
Average cost per ounce of silver produced (1):
Total cash costs (2)	$	(4.56	)	$	2.14	$	(5.45	)	$	2.66
Total costs	$	2.75		$	8.76	$	2.48		$	9.27
Capital additions (in thousands)	$	4,056		$	3,318	$	5,751		$	6,228
LUCKY FRIDAY UNIT
Tons of ore processed		79,428			84,188		171,469			170,634
Mining cost per ton	$	56.62		$	61.67	$	54.71		$	58.70
Milling cost per ton	$	15.35		$	15.70	$	14.87		$	14.84
Ore grade milled ? Silver (oz./ton)		10.8			11.0		10.5			10.8
Silver produced (oz.)		797,385			868,339		1,679,464			1,734,637
Lead produced (tons)		5,047			5,297		10,548			10,936
Zinc produced (tons)		2,142			2,536		4,673			5,127
Average cost per ounce of silver produced (1):
Total cash costs (2)	$	4.47		$	6.41	$	3.81		$	7.22
Total costs	$	6.87		$	9.29	$	6.14		$	9.98
Capital additions (in thousands)	$	14,048		$	3,974	$	20,529		$	7,223

(1) Gold, lead and zinc produced have been treated as by-product credits in calculating silver costs per ounce.

(2) Total cash costs per ounce of silver represent non-U.S. Generally Accepted Accounting Principles (GAAP) measurements. A reconciliation of total cash costs to cost of sales and other direct production costs and depreciation, depletion and amortization (GAAP) can be found in the cash costs per ounce reconciliation section of this news release.

HECLA MINING COMPANY

Reconciliation of Cash Costs per Ounce to Generally Accepted
Accounting Principles (GAAP)(1)

(dollars and ounces in thousands, except per ounce ? unaudited)

Three Months Ended

Six Months Ended

June 30, 2010

June 30, 2009

June 30, 2010

June 30, 2009

RECONCILIATION TO GAAP, ALL OPERATIONS

Total cash costs

$ (4,784)

$ 10,094

$ (12,317)

$ 23,462

Divided by silver ounces produced

2,628

2,983

5,112

5,847

Total cash cost per ounce produced

$ (1.82)

$ 3.38

$ (2.41)

$ 4.01

Reconciliation to GAAP:

Total cash costs

$ (4,784)

$ 10,094

$ (12,317)

$ 23,462

Depreciation, depletion and amortization

15,020

15,927

31,089

31,145

Treatment costs

(21,619)

(17,406)

(46,535)

(34,936)

By-product credits

64,066

43,851

133,461

81,726

Change in product inventory

(2,401)

4,811

(2,858)

487

Reclamation, severance and other costs

283

176

421

Costs of sales and other direct production costs and depreciation,
depletion and amortization (GAAP)

$ 50,565

$ 57,453

$ 102,904

$ 102,305

GREENS CREEK UNIT

Total cash costs

$ (8,345)

$ 4,530

$ (18,711)

$ 10,941

Divided by silver ounces produced

1,831

2,115

3,433

4,112

Total cash cost per ounce produced

$ (4.56)

$ 2.14

$ (5.45)

$ 2.66

Reconciliation to GAAP:

Total cash costs

(8,345)

4,530

(18,711)

10,941

Depreciation, depletion and amortization

13,108

13,425

27,188

26,357

Treatment costs

(18,063)

(13,359)

(38,000)

(26,663)

By-product credits

52,850

34,439

108,776

64,965

Change in product inventory

(2,096)

4,447

(2,430)

361

Reclamation, severance and other costs

278

196

435

Costs of sales and other direct production costs and depreciation,
depletion and amortization (GAAP)

$ 37,732

$ 43,678

$ 76,875

$ 76,396

LUCKY FRIDAY UNIT

Total cash costs

$ 3,561

$ 5,564

$ 6,394

$ 12,521

Divided by silver ounces produced

797

868

1,679

1,735

Total cash cost per ounce produced

$ 4.47

$ 6.41

$ 3.81

$ 7.22

Reconciliation to GAAP:

Total cash costs

3,561

5,564

6,394

12,521

Depreciation, depletion and amortization

1,912

2,502

3,901

4,788

Treatment costs

(3,556)

(4,047)

(8,535)

(8,273)

By-product credits

11,216

9,412

24,685

16,761

Change in product inventory

(305)

364

(428)

126

Reclamation and other costs

(20)

(14)

Costs of sales and other direct production costs and depreciation,
depletion and amortization (GAAP)

$ 12,833

$ 13,775

$ 26,029

$ 25,909

(1) Cash costs per ounce of silver represent non-U.S. Generally
Accepted Accounting Principles (GAAP) measurements that the
Company believes provide management and investors an indication of
net cash flow, after consideration of the realized price received
for production sold. Management also uses this measurement for the
comparative monitoring of performance of mining operations
period-to-period from a cash flow perspective. 'Total cash cost
per ounce? is a measure developed by gold companies in an effort
to provide a comparable standard; however, there can be no
assurance that our reporting of this non-GAAP measure is similar
to that reported by other mining companies. Cost of sales and
other direct production costs and depreciation, depletion and
amortization, was the most comparable financial measures
calculated in accordance with GAAP to total cash costs.

Hecla Mining Company

Don Poirier, vice president ? corporate
development, 208-769-4128

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