Slide 1: Adding High-Grade Nevada Mines: The Acquisition of Klondex Mines Ltd.
March 19, 2018 Adding High-Grade Nev Mines The Acquisition of Klondex Mines Ltd.
Slide 2: Cautionary Statements
Cautionary Statements xLonnex he. Hectal NYSE:HL (Cautionary Statement Regarding Forward Looking Statements ‘Sétements made ornfrmston proviedin fis preseisson at se notisiorca acs re brant ockingstnterents” wih he meaning oltiePrvae Secures gation ReformActof 1905 and "orwarclocknginormston” ain he
Slide 3: Cautionary Statements: Additional Information About the Transaction
Cautionary Statements xLonnex he. Hectal NYSE:HL Additional formation Abou the Transaction andWhereto Findit ‘This material relates io Hecl's proposedacauiston (ie "Transacton” of onde Shaes ofHecia’s common sock he “He's Shaes) issue in connecton wih the proposed Transaction maybe registered pursua
Slide 4: Another Step in the Strategy
Another Step in the Strategy xronmpex he, Heclal Mn Coun Klondex’s assets can be improved, grow and deliver the value we see NYSE:HL Heda’s strategy is to realize the potential of long-lived, low-cost assets with large land packages in favorable jurisdictions, Klondex is all of that. Heda is known i
Slide 5: Transaction Summary
Transaction Summary xLonnex he. Hectal Mn Coun NYSE:HL Transaction Structure Consideration Conditions Klondex Canada Other Expected Timing Hecla has agreedto acquire all of the issued and outstanding common shares of Klondex pursuantto a Plan of Arrangement Consideration to consist of either 0.6272
Slide 6: Benefits to Hecla Shareholders
Benefits to Hecla Shareholders Kvonperhe lHectal Mn Coun NYSE:HL Significant production in Nevada, one of the most prolific gold mining jurisdictions in the world Increases 2017 pro-forma production by 27% (~162 koz AuEq or “11.5 Moz AgEq)*2 Fire Creekis a cornerstone producing asset with robust cas
Slide 7: Benefits to Klondex Shareholders
Benefits to Klondex Shareholders KLonDEx he, Hectal Mn Coun NYSE:HL VY Immediate and significant premium of approximately 59% (30 day VWAP) with ongoing participation in upside through Hecla shares and Klondex Canada shares Y Meaningful ownership in a stronger pro-forma company VY Heda is well capit
Slide 8: Adding Nevada to a Strong Portfolio
Adding Nevada to a Strong Portfolio Kromet. Heclal Large land packages in five of the world’s best mining districts ‘ 4 a iN “Heart of the Nevada gold district” ¢ c Kinskach Pe NYSE:HL Pear Cah © coeratng mine ining dre 1 redeapmen project eterno project © operating mine (onder austen) exploration p
Slide 9: The Leading Intermediate Precious Metals Producer
The Leading Intermediate Precious Metals Producer = “on2exf, Heclal Peese Ds tung cour Peer leading production, with diversified revenue and NAV exposures NYSESHL Strongest production base among peer group (2017A Production‘) MEE AuEq Production (koz) AgEq Production (Moz) 755 762? mu 524 361 224 24
Slide 10: Hecla Will Have Industry Leading Reserves
Hecla Will Have Industry Leading Reserves KLONDEXB a. Heclal wh cour Unmatched combination of reserves and reserve grade NYSE HHL AuEgq Reserve Grade for Select Precious Metal Producers (0z/ton AuEq) 0.323 Kirkland Pro Forma Hochschild First Pan Torex EDV Mining” Tahoe New Gold Detour Argonaut. = SS
Slide 11: Hecla Retains Significant Focus on Silver
Hecla Retains Significant Focus on Silver KLonpe te Heclal Mn Coun Transaction increases Hecla’s exposure to precious metals by 6% NYSE:HL Standalone Hedla12 Hecla Pro Format? Heda Long Term Silver exposure expected to increase through development of Rock Creek and Montanore Silver “Gold Lead Zine S
Slide 12: Increasing Cash Flow and Improved Credit Metrics
s xionoe'f,. EN Increasing Cash Flow and Improved Cre Met hn couPue Transaction improves financial flexibility, moving towards credit upgrade NYSESHL Transaction additive to operating cash «. taking Hecla’s already strong credit flow?... metrics (20174 Operating Cash Flow US$ million) Hecla (Pro- Gu
Slide 13: Fire Creek is a Premier Asset in a Top Tier Jurisdiction
te Sa Heclal Feescio TO ana company e Creek is a Premier Asset in a Top Tier Ju Grade drives low cash costs and strong cash flow NYSE:HL + Producing, narrow vein mine located in Lander County, Nevada, ~63 miles west of Elko, Nevada = Commenced production in 2014 and has undergone extensive geologica
Slide 14: Fire Creek Vein Networks Offer Extensive Opportunities
Fire Creek Vein Networks Offer Extensive Opportunities Production centers and vein networks are open in all directions NRESE eo. NYSE:HL + Mineralized structures have predictive sigmoid pattern + Current reserves and resources provide mining inventory out to 2023 + Identified veins are open and unte
Slide 15: Excellent Land Position Near Many Large Gold Mines
Excellent Land Position Near Many Large Gold Mines Located along significant trends wconcex'h,, [PERE "MINING COMPANY X Twin Creeks - < é ald Wy OUee ae i \ vi Turqoidy, Ridge - ABX os G E) ON 2g ( pe 5 Hollist sna et \ 2™ oangeena Wirmeniutca £% AON op 3\ >. eater ABx A\ Gr Bre SY rs NES ee | Cae %
Slide 16: Hollister & Midas Expected To Benefit From Hecla's Operational Expertise
Hollister & Midas Expected To Benefit From Hecla’s Operational Expertise Petes SaHcclal ana coun NYSE:HL Overview Producing, high-grade gold and silver mine located ~18 miles from the Midas mill covering ~28 square miles First pour in Q4 2017 and ramping up to steady state production during H1 2018
Slide 17: Hecla's Track Record of Adding Value
Hecla’s Track Record of Adding Value An extensive history of optimizing assets Petes SaHcclal Feescio TO ana company NYSE:HL nal enhancements and mill optimization * Throughput has increased by 91% since Q4 2013 = Open pit mining increased operational flexibility providing ability to keep the mill f
Slide 18: Culture of Innovation Drives Productivity Improvements
Culture of Innovation Drives Productivity Improvements Technology and best practices expect to be leveraged across K’s assets Pte! Ai Hcclal Mn Coun NYSE:HL Autonomous Haulage in Operation at Casa Berardi + 24 hour truck operation drives cost savings + Increases utilization + Increases safety + Expe
Slide 19: A History of Adding Reserves
A History of Adding Reserves xconpertts, Heclal peessio TO una compa 263 million reserve ounces added; 22% added by Greens Creek acquisition NYSESHL 250 200 Reserves aaa ioe i i) a] 150 3 a La 100 gf E as = 50 t@ 8 o 34 FS - ei ° os. S 3 S (50) Za a rN 8 (100) 3 Cumulative r) Production 4 ° ipo) 138
Slide 20: A Roadmap for Further Growth and Value Creation
pe Matlcclal A Roadmap for Further Growth and Value Creation hn couPue NYSEsHL Robust Near Term Growth Longer Term Development (Hollister Ramp Up HY Al >) + Production to reach full steady Fire Creek Mine Plan State Copaaty m1 2018 + Potential for significant upside and = increased production throug
Slide 21: Klondex Canada - Highlights
Klondex Canada - Highlights xconoe,. Eta NYSE:HL + Klondex Canada will hold Klondex’s Canadian assets which are located primarily in Manitoba and are comprised of the True North Mine, the Bison Manitoba properties and 10% buy-back rights on Snow Lake Property. Various early-stage Ontario assets are
Slide 22: A Further Transformation of Hecla
A Further Transformation of Hecla Kvonperhe Heclal Mn Coun Consistent with strategy and expertise NYSE:HL Now with seven large land positions located in Alaska, Quebec, Nevada, Mexico and Idaho which are some of the safest and most prolific g jurisdictions in the world Proven operational excellence
Slide 23: Appendix
Appendix coupent,. ete Mn Coun NYSE:HL San Sebastian Greens Creek Lucky Friday
Slide 24: Fire Creek Asset Overview
Fire Creek Asset Overview xLonnex he. Hectal Mn Coun A company-making asset in Nevada NYSESHL Underground Mine — Nevada, USA Fire Creek Site Overview = Commenced production in 2014 + Narrow vein mine located in Ladner Country, Nevada + Underground mine utilizing traditional long-hole/ drift and fill
Slide 25: Midas Asset Overview
Midas Asset Overview KLowpe Ts. Heclal Mn Coun Well-located mill ties Nevada assets together NYSE:HL Underground Mine — Nevada, USA Midas Site Overview Commenced production in 2014 + Narrow vein mine located in Elko Country, Nevada + Underground mine utilizing traditional longhole, shrinkage, and cu
Slide 26: Hollister / Hatter Graben Asset Overview
Hollister / Hatter Graben Asset Overview Kionvex tt. Heclal Mn Coun Significant upside at Hatter Graben NYSE:HL Underground Mine — Nevada, USA Hollister Site Overview Re-started production in Q4-2017 + Narrow vein mine located in Elko Country, Nevada + Underground mine utilizing traditional longhole
Slide 27: Lucky Friday Asset Overview
Lucky Friday Asset Overview xLonperh Hectal Mn Coun Positioning for growth and longevity NYSE:HL Underground Mine — Idaho, USA Lucky Friday Site Overview Locatedin Idaho, Hecla has owned and operated the asset since 1958 + Deep polymetallic underground mine, utilizing traditional cut and fill mining
Slide 28: Greens Creek Asset Overview
Greens Creek Asset Overview Kionvex tt. Heclal Mn Coun One of the world’s top silver mines NYSE:HL, Underground Mine — Admiralty, Alaska Greens Creek Site Overview = Commenced production in 1996, and is one of the world’s largest low-cost primary silver mines, located in Alaska, US + Underground min
Slide 29: Casa Berardi Asset Overview
Casa Berardi Asset Overview oof, BRA SRR ec coun Open pits are increasing throughput and mine life NYSE:HL lUnderground/Open Pit Mine — Quebec, Canada| Commenced commercial production in 2007 Located 59 miles north of La Sarre, Quebec Acquired from Aurizon Mines in 2013 Casa Berardi encompasses gold
Slide 30: San Sebastian Asset Overview
San Sebastian Asset Overview KLowpe Ts. Heclal ne cou Very low capital, very high return, mine life extending NYSE:HL Open Pit/Underground Mine — Durango, San Sebastian Site Overview Mexico = Locatedin Durango, Mexico, = Operation entails a high-grade, near surface open pit as well as underground wo
Slide 31: Rock Creek & Montanore Asset Overviews
Rock Creek & Montanore Asset Overviews KLowpe Ts. lHectal Final stages of permitting, expecting to advance in 2018 NYSEHL + Montanore,a silver-copper mine located in Libby, Montana, was acquired from Mines Management in 2016 = Rock Creek, a silver-copper mine located in Noxon, Montana, was acquired
Slide 32: Endnotes
Endnotes Pewee Ma Heclal Mn Coun NYSE:HL Hecla’s cost of sales include all direct and indirect operating costs related to the physical activities of producing metals, including mining, processing and other piant costs, third-party refining and marketing expense, on-site general and administrative co
Slide 33: Zeus Exemplifies High-Grade Opportunities at Fire Creek
Zeus Exemplifies High-Grade Opportunities at Fire Creek Geophysical anomalies successfully identify high-grade mineralization pete MaHeclal NRESEe. bale NYSE:HL + The Zeus target was identified by a geophysical anomaly ~0.75 miles away from current mine workings| + Follow up drilling outlined signif
Slide 34: Exploration Targets and Potential
t t Targets and Poten + Proven repeatability of vein structural pattern + VTEM and IP Resistivity geophysical techniques and soil geochemistry can be used to trace extensions + Extensive corridor of highly prospective targets Regional rift is the basis for structural patterns and can be traced for 9
Slide 35: Klondex Canada - Exploration and Identified Targets
Klondex Canada - Exploration and Identified Targets “ox2=xk.. Heclal Mn Coun NYSE:HL True North Mine: Exploration and Identified Bison Manitoba Properties: Potential Targets Exploration Upside 710 / 711 zones = 64,227ft of drilling completed = Intercepted 5.78opt AuEq over 3.7ft = New discovery belo
Slide 36: Klondex Canada - Management, Board and Capital Structure
Klondex Canada - Management, Board and Capital Structure Feescio TO ana company NYSE:HL Proposed Management Team John Antwi, CEO = Previously SVP, Corporate Development and Planning at Klondex = Over 25 years of experience in the mining industry Additional management to be determined Proposed Board
Slide 37: Production Cash Cost per GEO Sold Reconciliation to GAAP
Production Cash Cost per GEO Sold Reconciliation to “oxe=xk. Heclal viva connie” GAAP NYSE Fire Creek Years ended December 31, All amounts in thousands except per ounce amounts 2015 2016 2037 Average realized price per gold ounce sold $1,156 $1,250 $1,261 Average realized price per silver ounce sold
Slide 38: Production Cash Cost per GEO Sold Reconciliation to GAAP
Production Cash Cost per GEO Sold Reconciliation to “oxe=xk. Heclal GAAP Mn Coun NYSE:HL All amounts in thousands except per ounce amounts Average realized price per gold ounce sold Average realized price per silver ounce sold Silver ounces equivalent to revenue from one gold ounce Silver ounces sol
Slide 39: Production Cash Cost per GEO Sold Reconciliation to GAAP
Production Cash Cost per GEO Sold Reconciliation to “oxe=xk. Heclal Mn Coun GAAP NYSE Hol Years ended December 31, All amounts in thousands except per ounce amounts 2017 Average realized price per gold ounce sold $1,273 Average realized price per silver ounce sold $16.69 Silver ounces equivalent to
Slide 40: Cash Cost Reconciliation to GAAP
Cash Cost Reconciliation to GAAP KLonDEx he, Hectal Mn Coun NYSE:HL Reconcili ion of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to Cash Cost, After By-product Credits (non-GAAP) Lucky Friday All amounts are in thousands (USD) except per ounce
Slide 41: Cash Cost Reconciliation to GAAP
Cash Cost Reconciliation to GAAP pete MaHeclal Mn Coun NYSE:HL Reconcili ion of Cost of Sales and Other Direct Production Costs and Depreci: Cash Cost, After By-product Credits (non-GAAP) Greens Creek ion, Depletion and Amortization (GAAP) to All amounts are in thousands (USD) except per ounce amoun
Slide 42: Cash Cost Reconciliation to GAAP
Cash Cost Reconciliation to GAAP KLonDEx he, Hectal Mn Coun NYSE:HL ion of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to Cash Cost, After By-product Credits (non-GAAP) Reconcili Casa Berrardi (Gold Operations) All amounts are in thousands (USD
Slide 43: Cash Cost Reconciliation to GAAP
Cash Cost Reconciliation to GAAP KLonDEx he, Hectal Mn Coun NYSE:HL Reconcili ion of Cost of Sales and Other Direct Production Costs and Depreciation, Depletion and Amortization (GAAP) to Cash Cost, After By-product Credits (non-GAAP) San Sebastian All amounts are in thousands (USD) except per ounce
Slide 44: Proven & Probable Mineral Reserves
Proven & Probable Mineral Reserves Kionvex tt. Heslal EE Bes- he (on Dec. 31, 2017 unless otherwise noted) NYSE:HL Reserves - 12/31/17") Tons God Lead Zine Copper Siver_ Gold Lead. inc Asset (000) __(ozton)__(oziton) _% % (000 0z)_(0000z)__Tons Tons ‘Tons ‘Greens Cresk 2) TT i227 00st 2at et 39 1 70
Slide 45: Klondex Proven & Probable Mineral Reserves
Klondex Proven & Probable Mineral Reserves KLON coxk,. Mn Coun NYSE:HL Reserves 11/30/2017 = Tons(00q T coidfen/on) | Gold ig/tonne! [sive (x/ton)_ Siver g/tomne) | GoldEqu,(ex/ton) [Gold tauieg/tomne) | Galsfomex) | siver(o00ex) | Goi uv. (0000%) = Tons(00q _T Gold(exhon) | Goldig/tonne) [ sive (u/