Hecla Acquires Remaining 30% Interest in San Juan Silver Project

Hecla Mining Company HL is pleased to announce that is has acquired the remaining 30% interest in the San Juan Silver project at Creede, one of Colorado's most prolific silver-producing districts. The San Juan Silver project has a silver resource of approximately 37 million ounces and significant lead. With 20 plus miles of the Bulldog, Amethyst, and Equity veins on the property, there is potential for considerably more silver and gold resources. The property also encompasses the Bulldog mine, Equity ramp, and administration buildings. In addition, the Company maintains a 70% interest in an exploration joint venture that holds ancillary exploration property with numerous unexplored veins in the district. The acquisition of the remaining 30% interest in the San Juan Silver project was completed pursuant to a Purchase Sale Agreement (the “Agreement”) between Hecla's wholly-owned subsidiary Rio Grande Silver, Inc. (“RGS”) and Emerald Mining & Leasing, LLC (“EML”), Golden 8 Mining, LLC (“G8”), and AgX Resources, Inc. (“AgX”), (EML, G8, and AgX are collectively referred to as the “Sellers”) dated December 12, 2011. The Sellers owned interest in certain properties which were governed by a Joint Venture Agreement (“2008 JVA”) entered into between the RGS, EML, and G8 on February 21, 2008. Under the terms of the Agreement, RGS purchased the Sellers' undivided interest in approximately 55% of the 21-square-mile property encompassing the Bulldog, Amethyst, and Equity veins, which had previously been part of the 2008 JVA, in return for the issuance of 5,395,683 shares of Hecla common stock. A new exploration joint venture agreement has been established that is 70% RGS and will cover the remaining land package that is on the east and west flanks of the RGS property that contains less explored targets. At yesterday's closing share price, the transaction was valued at $33.8 million.