Hecla Mining Company · NYSE:HL
Hecla Mining — Investor Day (April 2014)
150 slides from Hecla Mining's investor day presentation, Apr 8, 2014
Slide 1: Slide 1
Slide 2: Cautionary statements
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Slide 3: 2013: A Transformational Year
“<= HECLA MINING COMPANY = 201 3:A Tranetonnational Year What We Did: What We Didn’t Do: r ue and resources despite using lower rices y Write-down of reserves ¥ Cut our dividend policy d v Acq we What We Are Positioned For: ¥ v Reserve growth ¥ v Production growth 4 ton: Sp and safety EBITDA growth
Slide 4: Strong Reserve Growth 2003 - 2013
Strong Reserve Growin 2003 - 2013 Silver Ounces (millions) 170 2003 2013 1. See Proven and Probable reserves data inthe Appendix 2. Required Aurizon Mines in 2013 Gold Ounces (millions)? 24 163% 0.8 2003 2013
Slide 5: Production Growth (2012 - 2014)
7 2, 27™~ Production Growth (2012 - 2014) Silver Production Gold Production 2 200 180.08" z gz 40 | a 2 | 12002 3 % 120, 3 4 wo : in| 8 B 80 a gs “ 4 555 ao! ; | 20 0 0 2012 2013 2014e
Slide 6: Cash Bridge 2013
Cash Bridge 2010 $2122 (USSM) Largely Discretionary $597.3M Used free cash flow to 200 me of the costs of a acquiring Aurizon — One-time Expenses $234.4M 400 ‘sa si776 s1047 s 2010 Beginning Adjusted «Capex Exploration» Dhidends BasinSetlement _Aurizon ash EBiTOA re-development 6: Cash fom Acquistio
Slide 7: Continuing Growth in Reserves, Production and EBITDA
a = ‘i Continuing Growth in Reserves, Production and EBITD riday continuing through 2018 Exploration Corporate development = Larger quality assets with EBITDA
Slide 8: : f ¢ ha
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Slide 9: Presenters
Mf DN : Investor = Scott Hartman: Greens Creek = Larry Radford: Lucky Friday and other properties = John Don F Jim Sabala: F
Slide 10: Reserves and Resources Company-wide
ae i. Reserves and Resources Company-wide Dean McDonald April 2014
Slide 11: Reserve and resource highlights despite lower prices
Despi i 5 silver and 7% lower gold prices: = Silver reserves are 169.7 million oz — I t i pany history = Lucky Friday’s ilver reserve of 77. 2 million oz is 7x what it was 10 years ago = 2013 init d lati rF d Lk da R, mH g = Largest gold reserves (2.1 million 0z) in the company’s history with the ae
Slide 12: 2013 Reserve/Resource Prices
2013 Reserve/Resource Prices! $24.00 $24.00 $25.00 $25.00 $22.00 $22.00 $22.00 $19.50 $20.00 $1,450 $1,400 $1,400 $1,300 '51,300 $1,300 $1,320 $1,250, LF Fresnito | Heda "pose Erion Pan Foruna” Frat Sir Com” Fesnitoy” Heca "I Pan Gatco Endeavour Fortuna weil, came te Standars can 2013 Resource Silve
Slide 13: Peer comparison of reserves
First Majestic Coeur Hecla Pan American Silver Standard ‘Fortuna Endeavour 1. Data trom pub flings 13
Slide 14: Reserve Silver and Gold Ounces
Reserve Silver Ounces 0 “a, 2003 ‘Silver Ounces 1. See historical reserve data in the Appendix 14 2013 E 2 1.00 3 6 2003 Reserve Gold Ounces Gold Ounces 2013
Slide 15: Reserve Growth vs Mined Production 2004 - 2013
Reserve Growth vs Mined Production 2004 - 2013 Silver Ounces 200,000,000 m Lucky Friday reserves 150,000,000 Greens Creek reserves 100.000.000 |. bucky Friday production ® Greens Creek production 50,000,000 i g E u (60,000,000) (100,000,000) ° (150,000,000) 2004 = 2005«S 2008 «= 2007- «Ss «2008 «= 2
Slide 16: Reserve Grade Among Peers
» "~N \ ECLA mininc company er Reserve Grade Among Peers 1.000 200 y 3 co é i 5 6 & 2 FA 3 & Lo Silver m Other Metals Silver eq. (git)
Slide 17: Greens Creek
Greens Creek Scott Hartman April 2014
Slide 18: Greens Creek Key Highlights
Key Highlights: silver mines in the world 12014 Guidance Location ‘Admiralty bland, Alaska Polymetalic, stratiform, massive sulfide Type Underground 2P Reserves 92.5 Moz Ag @ 11.9 ozit 713 Koz Au @ 0.09 ozt M+I Resources 9.4MozAg @ 12.2 oz Inferred Resources 31.8 Moz Ag @ 13.3 ozt Production & Cash
Slide 19: Greens Creek - A World Class Silver Mine
HECLA MINING COMPANY Crean Creek - A World Class Silver Mine orld class, 1989 - 2013 over 13 million tons of ore ue been mined containi in = > 2.9 billion lbs zinc & >1.1 billion lbs lead ility to price = Outlook is for iderabl
Slide 20: Hawk
Hawk Mere rei (Cannery) Tailings Facility “B" Road 0 ae Auke Bay Juneau Douglas Island Young Bay “A” Road Admiralty Island 920 Portal Site
Slide 21: Greens Creek Video
Greens Creek Video
Slide 22: Greens Creek operations overview
= Power plant & electrical grid, dry (45% of that is road) . mine & concentrator, market products world-wide stacked tailings, water treatment, camp, and port facilities acres Operating for 23+ years A history of replacing reserves: E: ine life 10 more years 400+ employees, so largest private employ
Slide 23: Safety
F HECLA MINING COMPANY 2013 tos injury i Management System. & mitigate risk: elimination, substitution, ication nal ‘ing equipm Maintain sense of vulnerability, audit / assess / improve cycle. j le enf Fitnes post injury y p ning asa jascreening tool. housekeeping technology i i p
Slide 24: Greens Creek Mine
ai : cf se N Greens Creek Mine
Slide 25: Greens Creek - Mining Methods
Sree Greens Creek - Mining Methods Th i hod: hi d drift-and-fill stoping. ase pian a a combination of paste backfill, Narn cemented tailings, and wi 1 = The mine is ively shallow, with p
Slide 26: Greens Creek - Mill Process Description
HECLA MINING COMPANY > a AT le Greens Creek - Mill process Description Run of Mine Ore se Grinding a Gravity spirals ===> Lead flotation o> a Zinc flotation —>- ao —> Bulk flotation SS Products Gold (Dore) —> Lead / silver —_—_> concentrate Zinc concentrate ==> Bulk concentrate ===> (zinc, lead, sil
Slide 27: Gravity recovery of gold
ravity recovery of gok Pouring gold lie a big, continuous gold ar)
Slide 28: Slide 28
Slide 29: Mobile fleet improvements
improve! Fleet rationalized Availability Improved Utilization Improved Turnover Reduced Action Added machines, bolters and trucks Increased skilled labor Shift i Time studie: will automate data capture Market, local-hire, UAS training , assigned supervision accordingly S Complete Partially Complete
Slide 30: Capital: Historic and Projected
Capital: $60,000 + Historic and Projected $62,184 $97,119 $50,000 $41,657 $18,280 $13,421 2012 2013, 2011 2009 2010 1. 20146 is company guidance for 2014 $35,747E" 2014
Slide 31: Capital spending breakdown
‘Surf Infra, $7,128,240 Mil $3,815,408 Infrastructure, $893,679 Other, $39,655, TSF, $1 316,043 $316 mm East Ore Rehab = P 31
Slide 32: Tailings Permitting Proceeding as Expected
“i Tailings Permitting Proceeding as Expected 2013 Record of Decision = Expansion of the existing facility by 18 acres will be allowed. i 4M cub g y . = Expansion will support 10 more years of operation. * This is a short-term decision that: tr i any 1g NEPA processes.” US Forest Service
Slide 33: Tailings Expansion Timelines
Tailings Expansion Timelines Estimated Completion Final Els! ond Record of Decision Completed Dec-13 July-2014 Ww. if & Jun-2014 Reclamation Bond Update = Wantto start 2014 * Currently optimizing ign for & t = Have capacity with judici & planning till 2018 = Expanded facility probable 2017, outsid 2
Slide 34: Greens Creek outlook and community
at a cash cost, after y per silver * Look for additional “social license” opportunities = Mill Tons: 2200 short tons per day Pan Bie . nergy | tiqat PP = Excellent exploration potential
Slide 35: Long History of Financial Performance
Wy HECLA MINING COMPANY . ng History of Financial Performance Past 24 Years’ Revenue: $3.3 billion Net Income: $1.1 billion Next 10 Years tee Cash Flow: $875 million => Continued Strong Performance Silver Production: 184 Moz Expected Gold Production: 1.4 Moz Zinc Production: 1.3 M tons Lead Producti
Slide 36: Greens Creek Exploration
Greens Creek Exploration Dean McDonald April 2014
Slide 37: Greens Creek reserves and grade by year
¥ HECLA MINING COMPANY Gidae Creek : 1s ANH ia her “Teste — Re 12.5 a oo = li s 3 bi ry 2 100 & g i 3 oo Oe | 8 - 2 aa | | 50 = 2 mois Proton Grate 00s 20082007200 oi «2012 Year-end 37
Slide 38: SW Bench and Lower SW
Pr SW.Boncd Lower SW
Slide 39: Exploration Potential
Exploration Potential
Slide 40: East Ore Resource Conversion
“<= HECLA MINING COMPANY . East Ore Resource Conversion - 2015-2016 1350 Drifl Lt Area of Potential Resource Conversion to Reserves Exploration Potential
Slide 41: Deep South
Deep 200 South A’ Cross section © Deep 200 South 1000 Feet Key Exploration Trends = Southern extensions of 5250, Deep 200 South and Gallagher zones = Southwest dipping mine 0 t at 200 South, NWW, SW Bench and Deep SW = Southeast exfensiin of the East Ore Zon = Northern extensions to Gallagher and Ea
Slide 42: Large Surface Land Package
AF =. Large Surface Land Package * Very larg aund pl 27-square-mile land position = Over 30 miles of unexplored mine contact (red-trace) with multiple targets rf: Rad d anomalies = Surface exploration only resumed in 1999 due to establishment of Land Exchange
Slide 43: Proximal ore lithologies
Proximal Ore Lithologies “Cut Au’ be I Massive fine-grained base metal MarR Eye? I es pues pyrite = igs cataeerrte White stick
Slide 44: HECLA MINING COMPANY
i | HECLA MINING COMPANY
Slide 45: Mine contact projection
1/2 MILE Killer Creek or? werk Projection of Mine Contact |— ry Ses level
Slide 46: Drill hole map
— Drill Hole (Completed) @ Geochem Stoc! Chioritic Rock Slatey Argillite CS serpenti © sericitic kwork Veining
Slide 47: Casa Berardi
Casa Berardi Christian Bourcier April 2014
Slide 48: Focus on Making A Good Mine Even Better
HECLA MINING COMPANY Focus on Making A Good Mine Even Better = Casa Berardi is a good mine with excellent potential = Mark Board: Improving ground control = John Jordan: Optimizing Casa Berardi = Metallurgy, development, dilution =» Dean McDonald: Excellent exploration potential
Slide 49: Casa Berardi Key Highlights
re, Qt Deposit ‘Archean, shear & vein hosted gold deposit ‘Ownership (Since) June 2013 Type Underground Primary Metal Produced Gold 2P Reserves 1.4 Moz @ 0.15 ozt Key Highlight: M+I Resources 1.4Moz@ 0.12 oz * Acquired June 1, 2013 from Aurizon Mines Ltd Ppa 0.60 Moz @ 0.16 ozt Gold Production (oz)
Slide 50: Casa Berardi Video
Casa Berardi Video
Slide 51: ‘eras | Masttag
‘eras | Masttag Rneend hae
Slide 52: 3D Model
3D Model (Elevation)
Slide 53: Casa Berardi Mining and Milling Method
Casa Berardi Mining and Milling Method longitudinal retreat mining using = Mining 7 days/week (365 days/year) = On average 10 to 13 stopes are mined each month. tons of ore. Targeted development rate: 39 meters per day. * The mill is a standard CIL plani operated at 1,800 stpd i in ne "but i is 3,00
Slide 54: Capital: Historic and Projected
HECLA MINING COMPANY Capital: Historic and Projected $80,000 $71,100 $70,000 $60,000 ——— $51,796E" ~ $50,000 ee i— sao.o00 | __________sav.g00__] = 2 - — $30,000; s2o287 $22,074 $20,000 $10,000 - 2009 2010 «0112012201321 1. 2014E is company guidance for 2014
Slide 55: Casa Berardi capital spending breakdown
us Construction, $6,849,118 1010 Drift, $3,887,631 Principal Zone, $11,841,012 General Mi Bevtpmen 818, $41,279,208 Nearly all electrical installation Equipment, Surf Infra, $3,811,500 $370,462 Sha, $5,862,578 Other, $471,776
Slide 56: Reducing Turnover
. ee et SEP ON ARPS? Reducing Turnove . t ir party min r supply This change, i industry downturn, has dropped miner turnover from 14.5 % in 2012 to 8% in 2013. = Investments, A y and retention.
Slide 57: Casa Berardi: Rock Mechanics
Casa Berardi: Rock Mechanics Mark Board April 2014
Slide 58: Rock Mechanics Progress at Casa Berardi
HECLA MINING COMPANY Rock Mechanics Progress at Casa Berardi " Objective of rock mechanics program is to provide safe and predictable ground conditions for improved safety and economic performance of Casa Berardi. = Geologic conditions: = Casa Berardi Mine i d in foliated sedi y rocks. . is typicall
Slide 59: Ground control engineering and monitoring
= Two excellent, experienced rock conditions based on: ground control engineer = Proactive addition of ground support as needed * Installation of instrumentation to monitor Ly Decembes 2 cuent date nae a a issues. Top eue= 2113, 350 Ee pecnins into *6pEn stope showing. good profile’
Slide 60: Other Initiatives to Improve Ground Control
Other Initiatives to Improve Ground Control Minimize size of development headings and simplifying level layout improves stability and economics = Arched-back tunnel profiles to improve stability and reduce rehab costs New paste plant allows rapid filling of stopes, providing stabilization of faults
Slide 61: Profile through fault
Profile through Fault showing half-barrels in perimeter
Slide 62: Improving Economics and Stability
“f Improving Economics and Stability = Simplified. dain to etl excavations = Reduced cut-outs on level spans
Slide 63: Casa Berardi Optimization
Casa Berardi Optimization John Jordan April 2014
Slide 64: Very Experienced Corporate Optimization Team
Very Experienced Corporate Optimization Team John Jordan — VP Technical Services * BS/MS Mining Engineering * 35 years profes experience = Mine m mine engineering Dale Dean — Chief Metallurgist * BS Chemical Engineerin. = 35 5 years —— experience mill operations, operations support = Bruce Norquist
Slide 65: Optimization opportunities
High Recovery Development Medium], Plution Reduction Difficult Medium Easy Ease of capture = Metallurgi on the 118/123 zone to im COVE! . peu development he dimension and overbreal . geen control on longitudinal aoe s to improve mined ide Targeting sia id worth $140 million
Slide 66: Casa Berardi Au Grade vs Recovery Curves
Casa Berardi Au Grade vs Recovery Curves tone aS Performance ‘Autead Grade eet) of the Sulphides pplies to 48% of resource = Installation in 2015 Potential Benefit = Targeting up to an 8% improvement in ey curve (testing in the 6 to 11% range) . exc capital a 1% improvement worth about $11 milion |
Slide 67: Development opportunity
development pportunity from improving Target up to a: = 10% reduction in meters = .22 meter = .5 meter Combined 1%
Slide 68: Dilution Opportunity
Dilution Opportunity * Dilution from longitudinal longhole is highly variable = Between 20% - 80% thickness of Optimizing = Mining geometry against fault = Stope stability practices Targeting up to a 5% dilution reduction * 1% reduction worth $7 million LOM
Slide 69: Optimization approach
Identify opp = Develop initiatives to exploit opportunities = Provide technical resources = Work as team members with Berardi staff Site expertise plus broad-based mining experience # Incdanth tandi diti . f p ial i d tactics = Sit i for
Slide 70: Casa Berardi Exploration
Casa Berardi Exploration Dean McDonald April 2014
Slide 71: Casa Berardi reserves and grade by year
H ON Z a La pe @ 8 1000 bt} g [4] ee SS ee ee z soo 250 2008 —«2007=~=« 0082009200208 Year-end ‘Au grade opt 41, See Proven and Probable reserves data in the App 4
Slide 72: Casa Berardi mine areas
comme » East cot [=] Lomareas West Mine & 113 Area 118-128 & Principal Area East Mine Area fF ¢ sem E L Md ! E =r Proven & Probable Reserves “Past Production : sSured & Indicated Resources Existing Infrastructure ae peten Inferred Resources Proposed Development Leoral eseriee kee? 72
Slide 73: 2014 drilling targets
HECLA MINING COMPANY 19.2 gpt Au/3.2 m 31.0 gpt Au/2.5 m . 124 Zone 9.4 gpt Au/12.5 m Ve 140 Zone 9.7 gpt Au/5.6 m 3D Model Projection of UG drill pierce (Elevation) point for 2014 drilling Projection of Surface drill pierce point for 2014 drilling 5.9 gpt Au/4.6 m
Slide 74: “Past Production
i | “Past Production Existing Infrastructure roposed Development Inferred Resources oe
Slide 75: Mine structure extent
'7 kilometers of the mine structure identified and/or projected via drilling and geophysics =n Pees
Slide 76: Lucky Friday
Lucky Friday Larry Radford April 2014
Slide 77: Long history in the Silver Valley
Long history in the Silver Valley Grade increases as mine deepens = #4 p i production to 5 milli ly Deep mine brings challenges/opportunities Mark Board: Rock mechanics update George Sturgis: Capital projects update Dean McDonald: Reserve growth and excellent exploration potential
Slide 78: Lucky Friday Key Highlights
Key Highlights: <= HECLA MINING COMPANY - Location ‘Mullan, Kaho Deposit Silver & base metal bearing vein structures Ownership (Since) 1958 Type ‘Underground Primary Metal Produced Silver 77.2 Moz @ 12.1 ozt 116.0 Moz@ 54 oat lead, and Sine mine Inferred Resources 55.1 Moz @7.4 ozk 2014 Guidanes Pro
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Slide 80: Lucky Friday Vein long section
(Looking appx. N60 < i —— Lucky Friday 30 Vein - January 2014 - NSR W) ISR Plus $250_ Mined Out Areas Silver Shaft Fa | 4050 Level = #4 Shaft 4900 Level —=== 5900 Level S34 6500 Level 7500 Level 30 Vein January 2008 8800 Level | Resource Shown To 7800 Ft
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