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	HECLA COMPLETES AQUISITION OF 100% OF GREENS CREEK JOINT VENTURE Hecla Completes Acquisition of 100% of Greens Creek Joint Venture COEUR D'ALENE, Idaho, Apr 16, 2008 (BUSINESS WIRE) -- Hecla Mining Company (NYSE:HL) today announced it has completed the transaction to acquire the Rio Tinto subsidiaries that held a 70.27% interest in the Greens Creek silver mine and joint venture located near Juneau, Alaska. As a result of the transaction, Hecla subsidiaries now hold 100% of the Greens Creek joint venture, which is believed to be the fifth largest silver mine in the world in terms of annual production. Hecla has held a 29.73% interest in Greens Creek for the past two decades. On an annualized basis, by 2009 the integration of the rest of the Greens Creek mine into Hecla is expected to: --nearly double Hecla's silver production to about 11 million ounces annually --increase silver reserves by more than 150% --increase gold reserves by 140% --significantly increase Hecla's cash flow from operations --decrease Hecla's already-low average cash costs per ounce of silver Hecla's President and Chief Executive Officer Phillips S. Baker, Jr., said, "We think the Greens Creek mine and its 12-square-mile land package is an exceptional asset, with great low-cost, long-lived production, as well as tremendous upside exploration potential. This asset transforms our company and provides us a solid base for additional growth well into the future." The acquisition is accretive to Hecla on important major operating and financial metrics, including production, cash costs per ounce, cash flow and silver, gold, zinc and lead reserves. As a result, Hecla has increased its production guidance for 2008 to approximately 9 million ounces of silver. Hecla's cash costs remain among the lowest of the North American primary silver producing companies, and in 2007 the average total cash cost was negative $2.81 per ounce of silver. The $750 million purchase price consisted of $700 million in cash and $50 million in Hecla common stock. Hecla funded the cash portion of the payment with approximately $340 million from its existing cash and the remainder was funded through a $380 million debt facility provided by Scotia Capital. The debt facility includes a $140 million three-year amortizing term facility and a $240 million bridge facility (of which Hecla drew $220 million at closing), which matures in six months. Baker said, "Our Greens Creek and Lucky Friday silver mines generate a great deal of cash flow at current metals prices, which is expected to enable us to pay off the debt in less than three years. We have organized this financing to include a bridge facility that allowed us to eliminate a bank requirement to hedge a portion of our future zinc and lead production, and therefore avoid the earnings volatility associated with mark-to-market accounting. Over the course of the next several months, we will be evaluating various opportunities to retire the bridge loan." Baker concluded, "As a participant in the Greens Creek joint venture for 20 years, Hecla has first-hand knowledge of its great value. Frankly, we have been trying to acquire Rio Tinto's interest for many years. I could not be more pleased with this transaction and am excited about what it means for our shareholders and for our company's future." Hecla Mining Company, headquartered in Coeur d'Alene, Idaho, mines, processes and explores for silver and gold in the United States, Venezuela and Mexico. A 117-year-old company, Hecla has long been well known in the mining world and financial markets as a quality producer of silver and gold. Hecla's common shares are traded on the New York Stock Exchange under the symbol HL. Statements made which are not historical facts, such as anticipated payments or purchases are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to, metals price volatility, volatility of metals production and costs, exploration risks and results, political risks, project development risks, labor issues and ability to raise financing. Refer to the company's Form 10-Q and 10-K reports 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. Hecla's Home Page can be accessed on the Internet at Hecla-Mining.com. SOURCE: Hecla Mining Company Hecla Mining Company Vicki Veltkamp, vice president - investor and public relations, 208/769-4128   KENNECOTT GREENS CREEK MINING COMPANY HONORED FOR OUTSTANDING SAFETY RECORD KENNECOTT GREENS CREEK MINING COMPANY HONORED FOR OUTSTANDING SAFETY RECORD Kennecott Greens Creek Mining Company is being honored with a first place national award among underground metal mines for its outstanding 2003 safety record in the annual Sentinels of Safety program co-sponsored by the U.S. Department of Labor's Mine Safety and Health Administration and the National Mining Association. "The team at Greens Creek is honored to receive this prestigious national award, however it is the efforts put forth by every employee that placed Greens Creek in the running for the award," said Greens Creek General Manager Rich Heig. "We are committed to maintaining a safe and healthy work environment. Safety is a core value within our operation." Greens Creek representatives from the mine, surface and mill departments in Las Vegas to accept the Sentinels of Safety 2003 award. October, 2004 Mining companies in various operational categories were recognized for achieving the greatest number of employee work-hours in 2003 without an injury that resulted in lost workdays or restricted work assignments. To qualify for the program, a mining operation had to compile at least 30,000 employee work-hours during the year without a lost-time injury. The Greens Creek Mine completed 468,351 employee work-hours without a lost-time injury in 2003 for Sentinels of Safety eligibility, and a total of 614,660 employee work-hours without a lost time injury. "To achieve the goals of a safe, healthier work place we provide each employee with training, safety and health education, and other relevant information," said Greg Majeran, Greens Creek's Safety Supervisor. "The key to this success has been the willingness of each Greens Creek Mine employee to take personal responsibility to prevent accidents and follow safe operating practices." The Sentinels award is the oldest established award for occupational safety. The first Sentinels of Safety award was announced by former President Herbert Hoover, a mining engineer, when he was Secretary of Commerce in 1925. The annual safety competition has continued uninterrupted to the present day. The Kennecott Greens Creek Mine, located on Admiralty Island near Juneau, is a world class underground mine and surface processing facility producing metal concentrates containing silver, zinc, gold, and lead. Currently, the Kennecott Greens Creek Mine is one of the largest producers of silver in the United States, with currently known ore reserves supporting a 9-year mine life and operated by a predominately local work force of 260 employees. Greens Creek is a joint venture between Kennecott Minerals Company (70.3%) and Hecla Mining Company (29.7%). Assistant secretary of labor, Dave Lauriski (middle), presents employees from the mill and mine with the Certificate of Special Recognition. May 18, 2004 photo by Ron Plantz Mine honored for accident-free year Assistant secretary of labor visits Greens Creek to applaud record By CHRISTINE SCHMID, JUNEAU EMPIRE MAY 18, 2004 Miners at the Greens Creek Mine work 11-hour shifts in a dark, noisy environment. They operate heavy machinery under loose rock that is regularly made looser by blasting. And yet miners at Greens Creek managed to work a total of 600,000 hours last year without a single lost-time accident, according to the federal Mine Safety and Health Administration. David Lauriski, Assistant Secretary of Labor for MSHA, visited Greens Creek Monday to acknowledge the exceptional safety record of Greens Creek employees. "For an underground mine, this is a remarkable achievement," said Lauriski, referring to the mine's 2003 safety record. He visited Anchorage on Wednesday morning and stopped in Juneau on his way back to Washington D.C. "For an underground mine, this is a remarkable achievement," said Lauriski, referring to the mine's 2003 safety record. He visited Anchorage on Wednesday morning and stopped in Juneau on his way back to Washington D.C. "Underground mining is inherently dangerous, and these folks do a good job dealing with that," he said. Lauriski said Greens Creek is a serious contender for this year's Sentinel of Safety award, given to eight mines in different categories around the country each year. The Mine Safety and Health Administration and the National Mining Association give the award. The award, a golden statue of a mother and a child, is given to mines with the best safety record. According to Mine Safety and Health standards, an accident is any event that prevents a worker from returning to the mine to perform regular duties after treatment. About 250 underground mines in the United States will compete against Greens Creek for this year's award, which is given in September, Lauriski said. "Our vision is that everybody goes home every day to their families," Lauriski told the miners Monday evening, as he presented a certificate acknowledging the mine's safety record. "You've taken a step that we want everybody else to take: accept responsibility for your own safety," he said. Greens Creek, 18 miles south of Juneau on Admiralty Island, employs an average of 260 people year-round. One hundred and twenty of those employees work underground or in mine engineering. The biggest risks in underground mines are rock falls and muscle strains, said Matt Gili, manager of the mining operation. About 1,400 people work in the mining industry in Alaska. With 600 employees, the Red Dog mine, an open-pit operation in northwest Alaska, is the largest mining operation in the state. Greens Creek is the largest underground mining operation in the state. In 2002, the incident rate for injuries in the Alaska mining industry was about on par with the national average, said Dean Rasmussen of the Alaska Department of Labor. The incident rate is measured in cases per 100 workers, and in 2002 it was 4.2 in Alaska, 4.1 nationwide. Greens Creek continuously upgrades its equipment, said Gili. Remote-operated equipment, such as a $500,000 mucker operated by Kelly Kilian Monday afternoon, greatly reduces the risk of injury by falling rock, Gili said. A mucker is a machine that removes rock from an area after it is blasted. Lauriski, who spoke with Kilian as he operated the machine, said it was the first such remote operation he had seen in any of the mines he's visited since he was appointed by President Bush in 2001. In addition to having good equipment, Greens Creek spends a good amount of time training its employees, Gili said. But the miners themselves are the primary reason few accidents happen. "They're a very responsible group of people," Gili said. "You might think they're a bunch of rough miners, but they're a bunch of family men, they have kids and own homes. They're interested in staying safe." Kennecott Minerals President’s Award for Outstanding Safety Achievement in 2001 The Greens Creek workforce received the Kennecott Minerals President’s Award for Outstanding Safety Achievement in 2001 at a champagne brunch June 2, 2002 at Centennial Hall, Juneau Alaska. One hundred and seventy five employees and family members attended the celebration and congratulatory speeches were made by the Lt. Governor of Alaska, Fran Ulmer, the Mayer of Juneau, Sally Smith and MSHA Regional Director, Lee Ratliff. Kennecott Minerals President at the time, Bill Orchow, presented the award to representatives from the mill, surface and mine departments and it now resides onsite at Admiralty Island. Greens Creek's outstanding safety record is a direct result of each employee's commitment to working safely. Commemorative medallions were presented to each employee in recognition of their individual contribution. Kennecott Minerals president Bill Orchow presenting award to employees from the mill, surface and mine departments. June 2, 2002 photo by Don Douglas Olympic Runner, Juneau Alaska, January 24, 2002 photo by Johhny Holland 2002 Winter Games Olympic Medals The mining community had a proud moment when the first Olympic medals were placed around the winners' necks in Salt Lake City in February 2002. This is because the medals are made of metals that came from deep in the earth at Kennecott Utah Copper Corp.'s mine in the Oquirrh Mountains on the southwest side of the Salt Lake Valley, and Kennecott Minerals-Greens Creek Mine near Juneau, Alaska. There is a mixture of different metals in each of the medals produced for the Olympic Games. The gold medals are made of gold, silver and copper, the silver medals contain both silver and copper and the bronze medals are made of zinc and copper. All of the copper, gold and silver used was mined at Kennecott Utah Copper, which is the world's largest open-pit copper mine. The zinc was mined at the Kennecott Minerals Greens-Creek Mine, which also produces gold, silver and lead. O.C. Tanner Recognition Company was commissioned to produce each of the 477 medals that were awarded in the Games of 2002. This partnership with Kennecott is an interesting one in that for these Olympic medals, Kennecott donated the metals needed and O.C. Tanner donated the manufacturing to the Salt Lake Olympic Committee. Greens Creek is proud to have contributed, in a small way, to the significant contribution made by Kennecott Utah Copper to the 2002 Winter Olympics. Once again we are reminded how mining makes a positive contribution to our lives and the world. Land Exchange Between Kennecott Greens Creek Mining Company and Tongass National Forest In July of 1998 Kennecott Greens Creek Mining Company and the USDA Forest Service jointly announced the completion of a million-dollar land exchange. As authorized by Congress in the Greens Creek Land Exchange Act of 1995, the mining company purchased for inclusion in the Tongass National Forest approximately 139 acres of private inholdings in the Admiralty Island National Monument and 50 acres of private inholdings in Misty Fiords National Monument. The inholdings now have become a permanent part of the National Monuments. In exchange, Greens Creek received subsurface rights to 7,500 acres of land immediately adjacent to their Greens Creek patented claims on Admiralty Island. The United States retains the surface rights to those 7,500 acres and upon completion of mining (or no later than 100 years following enactment of the bill), the exchanged 7,500 acres, as well as all lands identified pursuant to the Land Exchange Act, will after reclamation revert to the United States and be included in the National Monument. In addition, the company pays the federal government a royalty from profits obtained from mineral sales which occur as a result of this land exchange. The successful completion of the land exchange authorized by Congress in 1995 is an innovative land management approach which provides both long and short term environmental protection of conservation system units within the Tongass National Forest while allowing for development of mineral resources that will provide new jobs and economic opportunities in Southeast Alaska. Sentinels of Safety Award Kennecott Greens Creek Mining Company was honored with a first place national award among underground metal mines for its outstanding 1997 safety record. The Mine Safety and Health Administration (MSHA) and the National Mining Association awarded Greens Creek Mine the prestigious national Sentinels of Safety award for achieving excellence in safety performance in the Underground Metal Mine Category. Mining companies in various operational categories were recognized for achieving the greatest number of employee work-hours in 1997 without an injury that resulted in lost workdays. To qualify for the program, a mining operation had to compile at least 30,000 employee work-hours during the year without a lost-time injury. The Greens Creek Mine completed 583,352 employee work-hours without a lost-time injury in 1997. The Sentinels award is the oldest established award for occupational safety. The first Sentinels of Safety award was announced by former President Herbert Hoover, a mining engineer, when he was Secretary of Commerce in 1925. The annual safety competition has continued uninterrupted to the present day. Greens Creek is committed to maintain a safe and healthy work environment. Safety is a core value within the operation. To achieve the goals of a safe, healthier work place each employee is provided with training, safety and health reminders. The key to this success has been the willingness of each Greens Creek Mine employee to take personal responsibility to prevent accidents and follow safe operating practices. Greens Creek Mine is an Equal Employment Opportunity employer. Employees, both potential and active, will be treated in a way which will be free of bias on the grounds of race, color, religion, sex, age, disability, marital status, citizenship or any other characteristic protected by law. Greens Creek is committed to a work environment in which all individuals are treated with respect and dignity. Greens Creek Mining Company P.O. Box 32199, Juneau, Alaska 99803     Phone: 907-789-8100 Fax: 907-789-8108 Contact Web Designer     Page Last Updated: April 16, 2008