Hecla Reports Second Quarter 2025 Results

Record free cash flow, record revenues and Adjusted EBITDA, Keno Hill delivers first positive free cash flow quarter, and Lucky Friday sets new milling record

Hecla Mining Company (NYSE:HL) ("Hecla", "we", "our" or the "Company") today announced second quarter 2025 financial and operating results. "Prior quarter" refers to the first quarter of 2025.

SECOND QUARTER HIGHLIGHTS

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Financial Performance and Capital Execution:

• Record quarterly revenue: $304.0 million, representing a 16% increase over prior quarter.
• Strong Profitability: Reported net income applicable to common stockholders of $57.6 million, or $0.09 per share, $99.7 million during the last 12 months.
• Record Adjusted EBITDA: $132.5 million during the quarter, $398.7 million during the last 12 months.
• Improved Leverage: Net leverage ratio* decreased to 0.7x from 1.5x in prior quarter.⁵
• Post quarter update: The Company announced the issuance of a notice of partial redemption of $212 million of its outstanding $475 million 7.25% Senior Notes due 2028 (the "Notes") funded through At-the-Market ("ATM") proceeds and repayment at maturity of CAD $50M Investissement Quebec Notes ("IQ Notes") funded from free cash flow.

Operational Performance:

• Improved Cash Generation: Cash generated by operations of $161.8 million, and record quarterly free cash flow of $103.8 million, with all producing assets contributing.
• Increased Production volumes: 4.5 million ounces of silver and 45,895 ounces of gold, an increase of 10% and 34%, respectively, compared to prior quarter.
• Silver Production costs: Total cost of sales of $127.1 million, with cash cost per ounce of ($5.46) and AISC per ounce of $5.19 (both after by-product credits).^3,4
• Gold Production costs: Total cost of sales of $50.8 million, with cash cost per ounce of $1,578 and AISC per gold ounce of $1,669, each after by-product credits.^3,4
• Greens Creek Gold Performance: Robust gold production attributable to grade exceeding plan driving positive guidance revision for gold production, and cash cost and AISC per ounce.^3,4
• Casa Berardi Improvement: Unit costs dropped by over $600 per ounce over the prior quarter as higher production drove unit costs lower and capital spending decreased.
• Lucky Friday Milestone: Established a new quarterly milling record of 114,475 tons, beating the prior record by 5% set in the prior quarter.
• Strong Cost Performance at Greens Creek and Lucky Friday.

*Net leverage ratio is calculated as current debt, long-term debt and finance leases less cash divided by trailing twelve-month adjusted EBITDA.

STRATEGIC PRIORITIES FOR 2025

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• Strengthen the balance sheet - achieving through asset sales, positive free cash flow generation, debt reduction initiatives.
• Target highest risk-adjusted return projects and work to increase free cash flow generation.
• Advance Keno Hill's permitting and investing in critical infrastructure to attain sustained profitability.
• Continue strategic review of non-core assets, with sale of Kinskuch property and liquidation of non-core equity holdings, realizing a $3.2 million gain, as well as progress towards completing the strategic review process on Casa Berardi.
• Implement standardized enterprise systems and advanced analytics to improve mine planning and cost management, driving sustained profitability and efficient capital allocation.

Rob Krcmarov, President and Chief Executive Officer, said: "Our second quarter results demonstrate exceptional execution across all facets of the business. We generated record sales of $304 million, record free cash flow of $103.8 million, and record Adjusted EBITDA of $132.5 million, while dramatically improving our net leverage to 0.7x. Our mines delivered outstanding operational performance, with silver production up 10% and gold production up 34% quarter-over-quarter, and Lucky Friday achieving a new milling record. By putting $212 million raised through our ATM program toward Note redemption and fully repaying our CAD $50 million IQ notes from free cash flow, we've strengthened our balance sheet, which will free up $17.8 million annually in interest expense going forward, allowing us to refocus those funds towards strengthening our balance sheet while enabling strategic reinvestment into the highest return opportunities across our portfolio. These results reflect our commitment to operational excellence, disciplined capital allocation, and creating long-term shareholder value. With Casa Berardi's strategic review progressing and our portfolio optimization continuing, we're well-positioned to achieve our 2025 guidance and beyond."

FINANCIAL AND OPERATIONAL OVERVIEW

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In the following table and throughout this release, "total cost of sales" is comprised of cost of sales and other direct production costs and depreciation, depletion and amortization; "prior quarter" refers to the first quarter of 2025.

Sales increased to $304 million, or 16% over the prior quarter, reflecting higher realized prices for all metals sold except lead, and higher precious metals sales volumes, which were partially offset by lower lead and zinc sales volumes. Silver sales were flat quarter over quarter despite an increase of 10% in silver production due mostly to concentrate inventory build at Greens Creek. Gold sales increased primarily due to a strong operational quarter at Casa Berardi. Gold sales at Greens Creek were relatively flat quarter over quarter, despite higher gold production in the second quarter, also due to the inventory build.

Gross profit was $119.5 million, an increase of 62% over the prior quarter. The increase is attributable to (i) Greens Creek gross profit increasing by $14.6 million due to higher realized prices for precious metals and zinc, partially offset by lower sales volumes of all metals except gold, (ii) Lucky Friday gross profit increased by $2.8 million due primarily to higher realized silver and zinc prices and lower costs of sales, and (iii) Keno Hill gross profit of $0.2 million (second profitable quarter under Hecla's ownership), reflecting the benefit of higher realized silver prices on 40% higher sales volumes over the prior quarter, largely offset by higher costs of sales. At Casa Berardi, the gross profit increased by $28.9 million reflecting the benefit of higher realized gold prices and sales volumes and lower production costs.

Net income applicable to common stockholders was $57.6 million compared to $28.7 million in the prior quarter. The improvement was primarily related to:

• More than a 16% increase in sales due primarily to higher precious metal prices in the quarter.
• Positive fair value adjustments, net of $9.6 million due to an increase in the fair value of our marketable securities portfolio and hedges not designated for hedge accounting.
• A gain on sale of property, plant and equipment of $2.2 million, primarily arising on the sale of the Kinskuch property.

Partly offset by:

• An increase in income and mining tax provision of $16.4 million, reflecting an increase in taxes, including Alaska Mining License Tax and Quebec Mining Duties as well as the inability to recognize the tax benefit of the loss from our Keno Hill operations.
• An increase in exploration and pre-development expense of $4.3 million reflecting increased exploration activity across our portfolio as activity increased heading into the warmer months of the year.
• An increase in foreign exchange loss of $3.2 million, reflecting the impact of the U.S. dollar depreciation compared to the Canadian dollar.

Consolidated silver total cost of sales was $127.1 million, a decrease of $2.5 million or 1.9% from the prior quarter, primarily due to lower cost of sales at Green Creek and Lucky Friday of $10.7 million and $1.8 million respectively, partially offset by higher cost of sales at Keno Hill of $10.0 million reflecting a combination of higher sales volumes and higher mining, contractor, maintenance and consumables usage.

Silver Cash costs and AISC per silver ounce, each after by-product credits, were ($5.46) and $5.19, respectively, lower versus the prior quarter, primarily due to lower treatment charges, higher by-product credits (due to higher gold production and realized gold prices) and higher silver production. AISC was also positively impacted by lower sustaining capital due to timing delays of certain projects to the second half of 2025.^3,4

Gold total cost of sales for Casa Berardi decreased by $0.1 million as higher sales volumes were offset by lower production costs.

Gold Cash costs and AISC per gold ounce, each after by-product credits, were $1,578 and $1,669 respectively, a decrease over the prior quarter as lower production costs and sustaining capital spend further benefited from higher gold production.^3,4 Casa Berardi costs are anticipated to continue to improve in the fourth quarter of 2025 as the strip ratio of the 160 pit is expected to decline and the reliance on a third party contractor is reduced.

Adjusted EBITDA was $132.5 million, a 46% increase over the prior quarter. The ratio of net debt to adjusted EBITDA (net leverage ratio) improved to 0.7x from 1.5x in the prior quarter due to strong EBITDA generation during the last 12 months, and a $276.8 million decrease in net debt.¹ Cash and cash equivalents at June 30, 2025, were $296.6 million and included $39 million drawn on the revolving credit facility. Subsequent to quarter end, a further approximately $42 million was raised through the ATM facility and CAD $50 million IQ Notes were repaid from free cash flows.

Cash provided by operating activities was $161.8 million, an increase of $126.1 million over the prior quarter, primarily attributable to favorable working capital changes of $42.3 million (the prior quarter was $48.2 million unfavorable), including a decrease of accounts receivable reflecting significant collections at Greens Creek and Keno Hill, and the timing of accounts payable vendor payments.

Capital investment was $58.0 million, compared to $54.1 million in the prior quarter, with capital investment at Keno Hill of $17.0 million, Lucky Friday of $15.9 million and Casa Berardi of $15.4 million. Capital investment is expected to increase in the third quarter, due to the warmer weather and ramping up construction activities.

Free cash flow was $103.8 million, a new quarterly record, compared to negative $18.4 million in the prior quarter, with the increase primarily due to higher cash flow from operations, reflecting increased income generation and positive working capital adjustments.²

ATM capital raise

During and post quarter end, the Company utilized its ATM facility to raise capital for a partial redemption of $212 million of the outstanding $475 million 7.25% Senior Notes which is expected to close in mid-to-late August 2025. This approach minimizes shareholder dilution compared to alternative financing methods such as traditional equity offerings.

The Company expects to invest the bulk of the anticipated interest savings generated from this potential near-term debt reduction into strengthening its balance sheet and surfacing value initiatives, including investment in operations, expanded exploration programs, and advancing its project pipeline. These investments are designed to unlock additional value from our asset base and support long-term growth.

The Company's mining operations are demonstrating their ability to produce strong free cash flow at today's robust metal prices. If metal prices continue at these levels, the Company expects future free cash flow generation to be sufficient to meet debt service requirements and support investment in continued value-enhancing activities. In addition, the Company may also look to use proceeds from potential future asset sales to further reduce the amount of outstanding debt. This balanced approach allows us to optimize our capital structure while maintaining operational flexibility and pursue growth opportunities.

This financing strategy reflects our commitment to prudent capital management while positioning the Company to accelerate value creation through both operational excellence and strategic development initiatives.

Financial Instruments for Base and Precious Metals and Foreign Currency

The Company uses financially settled forward sales contracts to manage exposure to zinc and lead price changes in forecasted concentrate shipments. On June 30, 2025, the Company had contracts covering approximately 12% and 24% of the forecasted payable zinc and lead production for 2025 - 2026 at an average price of $1.37 and $1.02 per pound, respectively.

In the second quarter of 2025, the Company also established price protection through the use of zero-cost collars for the Keno Hill mine's forecasted silver production. The Company’s hedging strategy at Keno Hill is focused on risk management during the period of heavy investment and ramp-up of operations to the nameplate capacity of 440 tons per day. Financial instruments covering a total of 1.67 million ounces of silver production over the next three quarters have been entered into to secure a price floor. As of June 30, 2025, these silver financial instruments were in a net liability position of $0.5 million. For accounting purposes, they are not designated as hedges.

The Company also manages Canadian dollar ("CAD") exposure through forward contracts. At June 30, 2025, the Company had hedged approximately 29% of forecasted Casa Berardi and Keno Hill CAD denominated direct production costs through 2026 at an average CAD/USD rate of 1.35. The Company has also hedged approximately 18% of Casa Berardi and Keno Hill CAD denominated total capital expenditures through 2026 at 1.39.

Please refer to the discussion of derivative instruments in the Company's Form 10-Q expected to be filed with the SEC on August 6, 2025

OPERATIONS OVERVIEW

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Greens Creek Mine - Alaska

Operational Review

Greens Creek produced 2.4 million ounces of silver and 17,750 ounces of gold. Silver and gold production increased 21% and 29% respectively over the prior quarter due to a 14% and 11% increase in silver and gold grades milled and an 8% increase in tons milled. Zinc and lead production increased 9% and 10% respectively, primarily due to higher mill throughput and modestly higher grades milled.

Second Quarter Financial Review

Sales were $122.0 million, an increase of 3% over the prior quarter, despite an increase in all types of concentrate inventory due to normal timing of shipments. Sales benefited from higher realized metals prices (except for lead) which proved higher than the quarterly average metal prices for all metals.

Total cost of sales was $58.9 million, a decrease of 15% over the prior quarter, primarily due to lower metal volumes sold (except gold) and lower fuel volumes for power generation requirements due to more hydro power available than the prior quarter, partially offset by higher labor and consumable costs. Cash cost per silver ounce, after by-product credits, was ($11.91), and decreased over the prior quarter due primarily to higher silver production, lower production costs and by-product credits which increased 28% from the prior quarter, primarily reflecting a 49% gold value increase. AISC per silver ounce, after by-product credits, was ($8.19) and decreased over the prior quarter due to the items noted above for cash costs trending lower over the prior quarter, as well as lower capital investment.^3,4

Cash flow from operations was $75.4 million, an increase of 72% over the prior quarter due primarily to the items noted above and favorable working capital changes tied to decreases in accounts receivable, partially offset by increases in concentrate inventories.

Free cash flow was $69.0 million, an increase of 106% from the prior quarter as gross profit rose 30% from the prior quarter and from benefits from working capital changes and 22% lower capital investment.

Outlook Revised

Silver production guidance for 2025 at Greens Creek is unchanged at 8.1-8.8 million ounces of silver, gold production guidance is increased to 50.0-55.0 thousand ounces from 44.0-48.0 thousand ounces, or 18.0-19.5 million silver equivalent ounces, unchanged from prior silver equivalent ounce guidance when factoring in all metals (silver, gold, lead, zinc and copper) due to changes in our metal price assumptions. Greens Creek's cost outlook has been lowered, maintaining total cost of sales guidance at $289 million (includes depreciation) but lowering cash cost guidance to ($6.25)-($5.00) from the prior $0.25-$0.75 (after by-product credits), per silver ounce, and AISC to $0.00-$1.50 from $6.50-$7.25 (after by-product credits), per silver ounce.^3,4 Capital investment guidance is unchanged at $48-$51 million in sustaining capital and $10-$12 million in growth capital. Capital investment at Greens Creek is expected to increase in the third quarter due to the seasonal construction period, with no change to full year capital investment guidance. In early July, the mine shifted to partial self-generated power while Alaska Electric Light and Power, the utility company supplying power to Greens Creek, performs a planned 8-week maintenance shutdown, which will increase costs during this period as self-generated power is more costly than purchased power from the utility, with the impact on operating costs expected to be less than 1% of total annual costs.

Please refer to guidance section of the release for production, cost, and capital guidance for 2025.

Lucky Friday Mine - Idaho

Operational Review

Lucky Friday continued along a path of operational consistency, setting a new quarterly milling record of 114,475 tons, beating the record set in the prior quarter by over 5%. Silver production was 1.3 million ounces, flat with the prior quarter, with higher mill throughput equally offset by a lower milled silver grade. Lead and zinc production was 8,829 tons and 3,911 tons, respectively, rising 4% and 6% respectively over the prior quarter, both benefiting from the higher throughput and zinc production also benefiting from a higher milled grade.

Second Quarter Financial Review

Sales were $64.3 million, an increase of 2% over the prior quarter due to a higher realized silver and zinc price, offset partially by lower volumes of silver and zinc concentrate sales.

Total cost of sales was $42.3 million, down 4% over the prior quarter, due to a combination of lower sales volumes and lower labor, contractor and consumable costs, offset partially by higher fuel costs. Cash costs and AISC per silver ounce, each after by-product credits, was $6.19 and $19.07, respectively, and decreased over the prior quarter primarily due to the lower production costs reflecting lower labor, contractor and consumable costs, offset partially by higher fuel costs, while silver production volumes were largely flat when compared to the prior quarter, as well as 4% higher by-product credits from lead and zinc sales.^3,4

Cash flow from operations was $20.7 million, a decrease of 13% over the prior quarter, and was unfavorably impacted by working capital changes, largely tied to changes in accounts receivable. Capital investment increased to $15.9 million, a 3% increase over the prior quarter. Free cash flow was $4.9 million and decreased over the prior quarter due to the items mentioned above.

Outlook

There is no change to the 2025 production guidance for Lucky Friday, maintaining silver production guidance of 4.7-5.1 million ounces of silver, or 8.0-8.5 million silver equivalent ounces when factoring in all metals (silver, lead and zinc). Guidance for total cost of sales is maintained at $165 million (includes depreciation), with cash cost and AISC per silver ounce (after by-product credits) guidance also being maintained at $7.00-$7.50 and $20.00-$21.50 respectively.^3,4 Capital guidance for Lucky Friday in 2025 is unchanged, with investment expected to increase in the third quarter (relative to the second quarter) due to the seasonal construction period and ramping up construction activities. The third quarter is expected to be the lightest production quarter of the year due to the planned impact on hoist availability within the quarter as the ongoing surface cooling project (a key infrastructure project to increase the cooling capacity required for the mine over the reserve mine-life) requires use of this infrastructure to complete the project. The lower third quarter production outlook compared to the other 2025 quarters was captured in our original guidance for the full year released in February.

Please refer to guidance section of the release for production, cost, and capital guidance for 2025.

Keno Hill - Yukon Territory

Operational Review

Keno Hill produced 750,712 ounces of silver, a 3% decrease over the prior quarter due to a 2% lower mill throughput. Mill throughput for the second quarter averaged 294 tons per day ("tpd"), remaining below the permitted capacity of 440 tpd. In the second quarter, the mill continued to rely on the ore stockpile as the mine continues to ramp up to higher tonnage rates (second quarter ore tons mined averaged 268 tpd, up 3% compared to the prior quarter). The stockpile exceeded 6,000 tons grading around 27 ounces per ton at quarter end. Work continues to bring the mine into a state of commercial production.

Second Quarter Financial Review

Sales were $26.1 million, increasing 54% over the prior quarter primarily due to the volume of concentrate sold more closely matching the produced volume. Higher realized silver and zinc (to a lesser extent) prices also helped boost sales over the prior quarter. Total cost of sales was $25.9 million, $10.0 million higher than the prior quarter due to concentrate sales more closely matching production volumes in the quarter. For the second consecutive quarter, Keno Hill achieved positive gross profit, so no costs were allocated to ramp-up and suspension costs.

Cash flow from operations was $16.4 million, a $26 million improvement over the prior quarter due to higher silver prices and favorable working capital changes. Capital investments during the quarter were $17.0 million, $6.6 million higher than the prior quarter as spending ramped up during the warmer months. Positive free cash flow of $2.7 million was achieved in the second quarter, marking the first positive free cash flow quarter for the asset under Hecla's ownership.

Outlook

Power curtailment by Yukon Energy Corporation ("YEC") at Keno Hill has improved in 2025, with the previously reported eight days of operational stoppage in 2025 (reported with fourth quarter results in February) remaining unchanged through the end of June. As previously reported, YEC experienced a turbine failure at its hydroelectric plant in Whitehorse in late October 2024, which is scheduled to be repaired in August of 2025. The Company estimates the power curtailments during planned August YEC maintenance downtime could lower production by approximately 90,000 ounces of silver in the third quarter, which is reflected in our initial 2025 guidance released in February.

Keno Hill is a core asset of the Company. Through an internal review and optimized plan, Keno Hill is expected to meet established investment hurdle rates at $25/oz silver. At current prices, the asset is expected to demonstrate near self-financing capabilities, providing operational cash flow stability and reduced external funding requirements. The Company has added near-term silver price collars to help protect cash flows during the capital investment period and may look to execute more price protection financial instruments.

Operational optimization has refined production parameters, establishing 440 tons per day as the target throughput rate versus the previous 550-600 tons per day baseline. This revised target is expected to maintain profitability thresholds under conservative long-range metal price assumptions while preserving expansion optionality beyond 440 tons per day for future value creation.

Current operations run below the 440 tons per day target, with mining capacity as the primary constraint. At its long range plan prices or higher, the Company expects that Keno Hill can achieve target production rates through systematic capital deployment across waste dump facilities, mine development programs, tailings capacity expansion, and water treatment infrastructure upgrades and related permitting execution. Permitting activities continue with enhanced management resources allocated to regulatory execution.

The asset's above-average reserve life enables the potential capture of multiple metals market cycles, providing long-term cash flow visibility and market volatility protection. Ongoing exploration programs continue to deliver resource expansion potential, supporting asset life extension and production scaling opportunities.

At current metal prices, 440 tons per day production is expected to generate robust positive free cash flow, supporting accelerated capital payback period potential. Expansion beyond this threshold remains available as a future growth opportunity rather than a minimum return requirement.

Please refer to (i) the discussion of commercial production at Keno Hill in the Company's Form 10-Q expected to be filed with the SEC on August 6, 2025 and (ii) the guidance section of this release for detailed production, cost, and capital guidance for 2025.

Casa Berardi - Quebec

Operational Review

Casa Berardi produced 28,145 ounces of gold, a 37% increase over the prior quarter, driven by planned higher underground and surface ore grades. Total tons milled remained flat to the prior quarter. The 160 pit generated 10% fewer mined tons (ore and waste) than the prior quarter, while total production costs per ton decreased 2%. The pit's stripping ratio is expected to decline in the fourth quarter of 2025, further reducing costs.

Second Quarter Financial Review

Sales were $85.0 million, an increase of 52% over the prior quarter, primarily due to higher ounces sold and higher average realized gold price.

Total cost of sales was $50.8 million, effectively flat over the prior quarter. Cash costs and AISC per gold ounce, each after by-product credits, were $1,578 and $1,669 respectively, a decrease of over $600 per ounce for both over the prior quarter as higher production drove unit costs lower, due in part to a 5% lower capital spend.^3,4

Cash flow from operations was $47.2 million, a 377% increase over the prior quarter due to higher sales and favorable working capital changes. Capital investment was $15.4 million, lower by $0.9 million over the prior quarter. Free cash flow was $31.8 million, a $38.2 million increase over the prior quarter due to the items noted above.²

Outlook

Casa Berardi is transitioning from a combined underground and surface operation to a surface only operation. Currently, the Company expects to be mining only the 160 pit by end of 2025, at which time the higher margin stopes of the west underground mine should be exhausted.

Currently there is no change to the Casa Berardi production guidance of 76.0-82.0koz of gold production in 2025. Casa Berardi guidance for total cost of sales (includes depreciation) is unchanged at $180 million. Cash cost and AISC guidance (after by-product credits, per gold ounce) is unchanged at $1,500-$1,650/oz and $1,750-$1,950/oz respectively.^3,4 Cash costs and AISC should improve in the fourth quarter as stripping costs decline. Total capital investment guidance for 2025 is unchanged at $58-$63 million. Capital investment at Casa Berardi is expected to increase in the third quarter due to seasonal construction period plans, with tailings construction being a major factor in the expected increase during the warmer months of the year.

Casa Berardi is expected to produce gold from the 160 pit and associated stockpiles until 2027. At current gold prices, the 160 pit is expected to continue to generate strong free cash flow until 2027. Upon completion of mining at the 160 pit, and milling the remaining stockpiles, Casa Berardi is expected to have a production gap commencing in 2027 and continuing until 2032 or later, assuming no underground mine life extension. During this time, the focus is expected to be on investing in permitting, infrastructure and equipment, as well as de-watering and stripping two expected new open pits, the Principal and West Mine Crown Pillar pits. Upon conclusion of the hiatus and related permitting and construction, the Company expects the mine to generate significant free cash flow at current gold prices.

As Casa Berardi transitions between mining phases and works through the permitting and construction timeline for the new open pits, the Company continues to evaluate strategic alternatives for the property, which continue to advance, and includes evaluating scenarios such as (i) sale of the asset, (ii) joint venturing the asset, (iii) a spin out of the asset, (iv) extending the underground mine or (v) accelerating future cash flows to capture part of the current record gold prices via a prepayment structure or other financing arrangement. The Company expects to be in a position to provide an update on a path forward from a concluded strategic review process in the coming weeks.

Please refer to guidance section of this release for production, cost, and capital guidance for 2025.

EXPLORATION AND PRE-DEVELOPMENT

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The Company invested $8.3 million in exploration (and $0.5 million in pre-development) activities during Q2 2025, focusing on high-impact discovery drilling at Midas and resource expansion programs at our producing assets. Key exploration highlights include visible gold intercepts at two new Midas targets and mineralization extensions at all three operating mines, supporting our strategy to grow reserves and extend mine lives while pursuing district-scale discoveries.

Exploration

At Midas, exploration drilling is well underway focusing on targets with discovery potential that could potentially support the return of the Midas mine to a production state. To date, 7 of 12 planned drillholes have been completed in the Pogo, Sinter Offset, and Little Opal targets located in the SE pediment area which is a large and highly prospective area southeast of the Midas Mine and near the Sinter Resource area. Early drilling results have been positive with two new vein intercepts showing visible gold. At the Pogo target area a 0.5-foot silicified breccia with visible gold in vein fragments was intersected, within a broader 2.2-foot structure (estimated true widths). At the Sinter Offset target a 1.1-foot quartz vein with visible gold and a 0.5-foot banded quartz vein with naumannite (Ag₂Se) was intersected within a broader 21.4-foot alteration zone (estimated true widths). This zone is interpreted to represent the fault offset segment of the Sinter Vein. Assays are pending and follow up drill holes are being evaluated. These recent drilling results, in conjunction with the very intense alteration consistently intercepted in drilling in throughout the SE pediment area support our interpretation that this area has the potential to host a potentially impactful deposit in the Midas District.

At Greens Creek, underground exploration drilling in the Gallagher Zone extended mineralization 550 feet along plunge to the south. While this silver-bearing interval is narrow, it occurs within a thicker sequence of ore-type lithologies and indicates the prospectivity of this area remains high. In addition, underground exploration drilling in the 200S Zone extended mineralization 150 feet west and south of existing mineralization. The results from both programs illustrate the strong potential for near-mine exploration to continue to make discoveries.

At Keno Hill, a wide high-grade intercept, supported by three additional silver-bearing intercepts, have identified new mineralization 500 feet down plunge from existing reserves. These results continue to demonstrate the continuity of the Bermingham mineralizing system and further highlight the significant potential that remains for near-mine exploration.

Selected exploration assay results are shown below.

Greens Creek Gallagher Target

• 4.1 oz/ton silver, 0.05 oz/ton gold, 5.8% zinc and 3.1% lead over 3.6 feet

Greens Creek 200 S Target

• 11.5 oz/ton silver, 0.02 oz/ton gold, 2.2% zinc and 0.09% lead over 4.6 feet

Keno Hill Deep Bermingham Target

• Main Vein 2: 40.4 oz/ton silver, 3.8% zinc and 3.1% lead over 12.5 feet
• Footwall Vein: 14.9 oz/ton silver over 2.1 feet

Definition

Definition drilling continues at Greens Creek, Keno Hill, and Casa Berardi for resource conversion and expansions near resource boundaries.

At Greens Creek, definition drilling continued with two drills underground defining parts of the East Zone for longhole stoping and confirming additional resources. The East Zone drilling continued to see high precious metal intercepts including 112.7 oz/ton silver, 0.53 oz/ton gold, 2.2% zinc and 9.6% lead over 5.1 feet.

At Keno Hill, one drill continued to operate underground, further defining and expanding mineralization in the Bermingham veins. High-grade intercepts from this drilling include 41.4 oz/ton silver, 2.8% zinc and 2.4% lead over 9.5 feet, extending mineralization of the Bear Vein in the Arctic Zone beyond its previously known extent.

Detailed exploration and definition drill assay highlights can be found in Table A at the end of this release.

DIVIDENDS

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Pursuant to the Company's dividend policy, the Board of Directors declared a quarterly cash dividend of $0.00375 per share of common stock payable on or about September 4, 2025, to stockholders of record on August 22, 2025.

Preferred Stock

The Board of Directors declared a quarterly cash dividend of $0.875 per share of Series B preferred stock, payable on or about October 3, 2025, to stockholders of record on September 15, 2025.

2025 GUIDANCE ⁶

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In the tables below the Company provides production, cost, and capital guidance on a consolidated basis and by mine, as well as projected consolidated exploration and pre-development expenditures. There are no changes to silver production and capital investment guidance, but there are improvements to gold production guidance, cash costs and AISC guidance for Greens Creek as well as consolidated silver cash cost and AISC guidance.^3,4

2025 Production Outlook

Consolidated silver production is expected to be 15.5-17.0 million ounces.

• Greens Creek's silver production is expected to be 8.1-8.8 million ounces.
• Lucky Friday's silver production is expected to be 4.7-5.1 million ounces.
• Keno Hill's silver production is expected to be 2.7-3.1 million ounces.

Consolidated gold production is revised up to total 126-137 koz, increasing from the prior 120-130 koz.

• Casa Berardi is expected to produce 76.0-82.0 koz.
• Greens Creek is now expected to produce 50.0-55.0 koz, up from the prior 44.0-48.0 koz.

Metal Prices and FX rate assumptions. Expectations for 2025 include silver, gold, lead, and zinc production from Greens Creek, Lucky Friday, Keno Hill, and Casa Berardi converted using gold $3,150/oz, silver $33.00/oz, zinc $1.25/lb, lead $0.90/lb and copper $4.00/lb, revised from the prior assumptions of gold $2,550/oz, silver $28/oz, zinc $1.25/lb, lead $0.85/lb and copper $4.00/lb. Numbers are rounded. Assumed exchange rate for Canadian dollar is unchanged at 1.35 CAD/USD.

2025 Cost Guidance Revised

Total silver cash cost guidance per silver ounce (after by-product credits) is lowered to ($1.25)-($0.75)/oz from the prior $3.00-$3.25/oz, and guidance for AISC per silver ounce (after by-product credits) is also lowered to $11.50-$13.50/oz from the prior $15.75-$17.00/oz.^3,4 This guidance only incorporates Greens Creek and Lucky Friday, as Keno Hill remains in a state of pre-commercial production. A $100/oz change in the gold price assumption would change our cash cost and AISC guidance by approximately (i) $0.40/oz for consolidated silver and (ii) $0.60-$0.65/oz for Greens Creek.

• At Greens Creek, guidance for total costs of sales (includes depreciation) remains unchanged at $289 million, while cash cost guidance is lowered to ($6.25)-($5.00) from the prior $0.25-$0.75 (after by-product credits), per silver ounce, and AISC to $0.00-$1.50 from $6.50-$7.25 (after by-product credits), per silver ounce.^3,4
• At Lucky Friday, guidance for total cost of sales (includes depreciation) remains unchanged at $165 million. Cash cost per silver ounce (after by-product credits) and AISC per silver ounce (after by-product credits) guidance also remains unchanged at $7.00-$7.50 and $20.00-$21.50 respectively.^3,4

Casa Berardi guidance for total cost of sales (includes depreciation) remains unchanged at $180 million. Cash cost and AISC (both after by-product credits) per gold ounce guidance is reiterated at $1,500-$1,650 and 1,750-$1,950 respectively.^3,4

2025 Capital and Exploration Guidance Reiterated

Consolidated capital investment remains unchanged and is expected to be $222-$242 million.

• Greens Creek's capital investment budget is primarily attributable to engineering and construction related to the expansion of its tailings facility, which is expected to increase tailings capacity to 2040.
• Lucky Friday's capital investment is heavily tied to underground development, a new tailings facility and a surface cooling project, which is critical to increase the designed cooling capacity at the mine over its reserve mine-life of seventeen years.
• Expected capital spend at Keno Hill comprises mine development and mine infrastructure projects, including a cemented tailings plant, tailings storage facility, and water treatment plant.
• Casa Berardi's expected growth capital spend includes tailings construction costs.

Exploration and pre-development expenditures remain unchanged and are expected to be $28 million, with the focus at Greens Creek and Keno Hill, with some planned spend at Nevada and Lucky Friday.

CONFERENCE CALL AND WEBCAST

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A conference call and webcast will be held on Thursday, August 7, at 10:00 a.m. Eastern Time to discuss these results. The Company recommends that you dial in at least 10 minutes before the call commencement. You may join the conference call by dialing toll-free 1-800-715-9871 or for international dialing 1-646-307-1963. The Conference ID is 4812168 and must be provided when dialing in. Hecla's live and archived webcast can be accessed at https://events.q4inc.com/attendee/242840150 or www.hecla.com under Investors.

ABOUT HECLA

Founded in 1891, Hecla Mining Company (NYSE: HL) is the largest silver producer in the United States and Canada. In addition to operating mines in Alaska, Idaho, and Quebec, Canada, the Company is developing a mine in the Yukon, Canada, and owns a number of exploration and pre-development projects in world-class silver and gold mining districts throughout North America.

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 United States generally accepted accounting principles ("GAAP"). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The non-GAAP financial measures cited in this release and listed below are reconciled to their most comparable GAAP measure at the end of this release.

⁽¹⁾ Adjusted net income applicable to common stockholders is a non-GAAP measurement, a reconciliation of which to net income applicable to common stockholders, the most comparable GAAP measure, can be found at the end of the release. Adjusted net income applicable to common stockholders is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net income applicable to common stockholders as defined by GAAP. They exclude certain impacts which are of a nature which the Company believes are not reflective of our underlying performance. Management believes that adjusted net income applicable to common stockholders per common share provides investors with the ability to better evaluate our underlying operating performance.

⁽²⁾ Free cash flow is a non-GAAP measure calculated as cash provided by operating activities less capital expenditures. Cash provided by operating activities for the Greens Creek, Lucky Friday, Keno Hill, and Casa Berardi operations excludes exploration and pre-development expense, as it is a discretionary expenditure and not a component of the mines’ operating performance. Capital expenditures refers to Additions to properties, plants and equipment from the Consolidated Statements of Cash Flows, net of finance leases.

⁽³⁾ Cash cost, after by-product credits, per silver and gold ounce is a non-GAAP measurement, a reconciliation of total cost of sales, 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 primary silver mining company, management also uses the statistic on an aggregate basis - aggregating the Greens Creek and Lucky Friday mines to compare performance with that of other silver 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.

⁽⁴⁾ All-in sustaining cost (AISC), after by-product credits, is a non-GAAP measurement, a reconciliation of which to total cost of sales, the closest GAAP measurement, can be found in the end of the release. AISC, after by-product credits, includes total cost of sales and other direct production costs, expenses for reclamation at the mine sites and all site sustaining capital costs. AISC, after by-product credits, is calculated net of depreciation, depletion, and amortization and by-product credits. Prior year presentation has been adjusted to conform with current year presentation.

⁽⁵⁾ Adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to net income applicable to common shareholders, the most comparable GAAP measure, can be found at the end of the release. Adjusted EBITDA is a measure used by management to evaluate the Company's operating performance but should not be considered an alternative to net loss, or cash provided by 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. Net debt to adjusted EBITDA is a non-GAAP measurement, a reconciliation of which to debt and net income, 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.

⁽⁶⁾ Precious metals concentrates include intersegment sales to Greens Creek.

Current GAAP measures used in the mining industry, such as total cost of goods sold, do not capture all the expenditures incurred to discover, develop and sustain silver and gold production. Management believes that AISC is a non-GAAP measure that provides additional information to management, investors and analysts to help (i) in the understanding of the economics of our operations and performance compared to other producers and (ii) in the transparency 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.

Cautionary Statement Regarding Forward Looking Statements, Including 2025 Outlook

This news 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. 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 costs are anticipated to continue to improve in the fourth quarter of the year as the strip ratio of the 160 pit is expected to decline and the reliance on a third party contractor is reduced; (ii) the Company plans to redeem $212 million of its Senior Notes mid-to-late August 2025 and expects to invest the bulk of the anticipated interest savings generated from this potential near-term debt reduction into strengthening its balance sheet and value surfacing initiatives, including investment in operations, expanded exploration programs, and advancing its project pipeline; (iii) if metal prices continue at current levels, we expect future free cash flow generation to be sufficient to meet debt service requirements and support investment in continued value-enhancing activities; (iv) the Company may look to use proceeds from potential future asset sales to further reduce the amount of its outstanding debt; (v) capital investment at the Company’s operations is expected to increase in the third quarter, due to the warmer weather and ramping up construction activities; (vi) Alaska Electric Light and Power’s planned 8-week maintenance shutdown is expected to impact operating costs by less than 1% of total annual costs; (vii) at Keno Hill, the Company expects (a) the power curtailments during planned August YEC maintenance downtime could lower production by approximately 90,000 ounces of silver in the third quarter, (b) at current prices, the asset is expected to demonstrate near self-financing capabilities, providing operational cash flow stability and reduced external funding requirements, (c) that it may look to execute more price protection financial instruments, (d) a target throughput rate of 440 tons per day to maintain profitability thresholds under conservative long-range metal price assumptions while preserving expansion optionality beyond 440 tons per day for future value creation, (e) the mine can achieve target production rates through systematic capital deployment across waste dump facilities, mine development programs, tailings capacity expansion, and water treatment infrastructure upgrades and related permitting execution, and (f) at current metal prices, 440 tons per day production is expected to generate robust positive free cash flow, supporting accelerated capital payback period potential; (viii) at Casa Berardi, the Company expects (a) at current gold prices, the 160 pit is expected to generate strong free cash flow late in the third quarter until 2027, (b) the stripping ratio for the 160 pit stripping ratio to decline in the fourth quarter of 2025, further reducing costs, with the fourth quarter expected to benefit the most in terms of cost improvement, (c) to be mining only the 160 pit by end of 2025, at which time the higher margin stopes of the west underground mine should be exhausted, (d) tailings construction to be a major factor in the expected increase in capital expenditures during the warmer months of the year, (e) to produce gold from the 160 pit and associated stockpiles until 2027 at which time the mine is expected to have a production gap continuing until 2032 or later, assuming no underground mine life extension, and during this time, the focus is expected to be on investing in permitting, infrastructure and equipment, as well as de-watering and stripping two expected new open pits, the Principal and West Mine Crown Pillar pits, and upon conclusion of the hiatus and related permitting and construction, the Company expects the mine to generate significant free cash flow at current gold prices, and (f) to be in a position to provide an update on a path forward from a concluded strategic review process in the coming weeks; (viii) Company-wide and mine-specific estimated spending on capital, exploration and predevelopment for 2025; and (ix) Company-wide and mine-specific estimated silver, gold, silver-equivalent and gold-equivalent ounces of production 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; and (vi) litigation, political, regulatory, labor and environmental risks. For a more detailed discussion of such risks and other factors, see the Company's 2024 Form 10-K filed on February 13, 2025, and Form 10-Q filed on May 1, 2025 and Form 10-Q expected to be filed on August 6, 2025, 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 other than as may be required by law.

Cautionary Statements to Investors on Reserves and Resources

This news release uses the terms “mineral resources”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources.” Mineral resources that are not mineral reserves do not have demonstrated economic viability. You should not assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. Further, inferred mineral resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically, and an inferred mineral resource may not be considered when assessing the economic viability of a mining project, and may not be converted to a mineral reserve. The Company reports reserves and resources under the SEC’s mining disclosure rules (“S-K 1300”) and Canada’s National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) because the Company is a “reporting issuer” under Canadian securities laws. Unless otherwise indicated, all resource and reserve estimates contained in this press release have been prepared in accordance with S-K 1300 as well as NI 43-101.

Qualified Person (QP)