GREENS CREEK MINE

The mine produced 1.8 million ounces of silver at an average total cash cost per ounce of $3.79. The increases in cash costs per ounce of silver for the third quarter and nine-month period compared to last year are attributable primarily to decreased by-product credits due to lower zinc and lead prices, an increase in freight charges, higher energy and steel costs, and a lower average grade of silver being produced from the current mining area compared to a year ago. Greens Creek's electricity comes primarily from diesel generators, and those costs have been higher than last year due to the increased diesel prices. Underground drilling at Greens Creek on the Gallagher Zone extended mineralization deeper and opened up potential to the north.

The Greens Creek unit produced 1.7 million ounces silver in the second quarter. This reflects the 29.7% ownership share through April 16, 2008, and the 100% ownership thereafter. The average cash cost of silver at Greens Creek during the first half of 2008 was $0.50 per ounce, with cash costs in the second quarter averaging $2.10 per ounce, after by-product credits. Cash costs increases in the second quarter are largely due to increased diesel fuel and steel costs, as well as increased smelter treatment and freight charges, which are impacting mining companies worldwide.

Production is approximately 148,756 oz of silver, mined at an average total cash cost per ounce of negative $5.10. This compares to 704,928 ounces of silver for Hecla’s account during the first quarter of last year, at a negative total average cash cost of $4.62 per ounce. The cash cost per ounce at Greens Creek decreased 10% due to increased by-product metals prices, despite lower production and increasing diesel fuel prices, which resulted in higher costs per ton. Even though cash costs improved, gross profit declined 23% on lower revenue due to a delay in concentrate shipments as a result of congestion at Asian seaports, where the smelters are located. In 2007, the average total cash cost per ounce of silver at an incredibly low negative $5.27 per ounce, after by-product credits. Exploration has been able to almost replace the mined ore for the last seven years, and 2007 was no exception. Both surface and underground exploration programs were continued during 2007. Most of the underground exploration focused on the silver-rich 5250 North Extension zone and the West Gallagher zone. In the 5250 zone, a hole was drilled 1,000 feet above and along strike of the known reserve and resource and intersected silver grades of 30 ounces per ton (opt) with 18% zinc and lead. This is about 50% greater than the average ore grade at Greens Creek, and could lead to a possible addition to resource in 2008. Any increase in resource in that area is within haulage distance of the current mine infrastructure and can be easily accessed and mined. During 2006, high expenditures by the owners were due to the installation of infrastructure to augment the mine's use of diesel-generated power with less expensive hydroelectric power in the future, additional underground development and an ongoing project to expand the tailings facility, which should be completed in about two years. Mill throughput is expected to increase in 2007 following the substantial completion of the project in 2006.