Hecla Announces Right to Acquire Silver District in Colorado

Business Wire, Feb 21, 2008

COEUR D'ALENE, Idaho -- Hecla Mining Company (NYSE:HL) today announced that its wholly owned subsidiary, Rio Grande Silver Inc., has acquired the right to earn into a 70% joint venture interest in a roughly 25-square-mile consolidated land package in one of Colorado's most prolific silver producing districts. The venture, called the San Juan Silver Mining Joint Venture, is located in the famous Creede Mining District and has an identified resource of approximately 48 million ounces of silver, with potential for considerably more through a targeted exploration program.

Hecla is entering the joint venture participation with Emerald Mining & Leasing, LLC, and Golden 8 Mining, LLC. Historically, the district has produced about 84 million ounces of silver from underground mining, the type of narrow-vein mining in which Hecla has particular expertise. A major piece of this land package includes the historic Bulldog mine, where Homestake Mining produced 25 million ounces of silver before closing in 1985 due to depressed metals prices. It will be the expansion of the historic resources of the Bulldog and North Amethyst-Equity mines that will be the initial focus for renewed exploration in the district. Significantly, the consolidated land package will encompass over 30 miles of prospective veins and vein splays, including large portions of the Bulldog, Amethyst, Equity, Alpha Corsair and OH veins that will provide exploration opportunities for many years.

Hecla Mining Company President and Chief Executive Officer, Phillips S. Baker, Jr., said, "Like our land position in Idaho's Silver Valley, this land package was a major silver-producing district that had never been consolidated into one venture. So we start with a 48-million-ounce resource outlined by Hecla from historic records and targets we have established on patented mining claims. Then, with this previous work and the consolidation of the district done by our partners, we think there is the potential to find in excess of 100 million ounces in the next few years. Development and production will follow as soon as possible thereafter. While we know this is a long-term play, we believe it will deliver significant value in terms of resource growth and high-quality, long-lived production and is consistent with our strategies for our Idaho, Alaska, Mexico and Venezuela properties."

The deal consists of a three-year buy-in with a total value of $23.2 million made up of exploration work and cash. Hecla can earn up to a 70% interest by paying Emerald Mining & Leasing, LLC, and Golden 8 Mining, LLC, a total of $11.2 million in common stock, by spending $6 million in exploration on the property during the first year, and by committing to an additional total of $6 million in exploration work over the subsequent two years.

Hecla Mining Company, headquartered in Coeur d'Alene, Idaho, mines, processes and explores for silver and gold in the United States, Venezuela and Mexico. A 117-year-old company, Hecla has long been well known in the mining world and financial markets as a quality producer of silver and gold. Hecla's common shares are traded on the New York Stock Exchange under the symbol HL.

Statements made which are not historical facts, such as anticipated payments or purchases are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to, metals price volatility, volatility of metals production and costs, exploration risks and results, political risks, project development risks, labor issues and ability to raise financing. Refer to the company's Form 10-Q and 10-K reports for a more detailed discussion of factors that may impact expected future results. The company undertakes no obligation and has no intention of updating forward-looking statements.

Cautionary Note to Investors - The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this news release, such as "resource," "reserve," and "inferred resource" that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K, and they are included herein as furnished not filed. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml.> Hecla's Home Page can be accessed on the Internet at www.hecla-mining.com.