Hecla Mining : 2022 Report

Sustainability Report

2022

Table of Contents

Introduction

Forward-looking Statements	3
CEO Letter	4
Chair of Governance and Social	6
Responsibility Committee Letter
About Hecla	7
Hecla by the Numbers in 2022	8
Silver Supports the	9
Low-carbon Future
Our ESG Approach	10
2022 Theme - Reclamation at Hecla:	13
Past, Present, and Future

Environment		Social		Governance		Appendix
Protecting the Environment	14	Worker Safety & Health	36	Governance & Transparency	69 GRI Content Index	77
Environmental Policies, Management System,	15	Safety and Health Management System	37	Governance Structures	70	SASB Content Index	82
and Training		Safety and Health Performance	39	Policies for Transparency and Ethics	72	TCFD Content Index	85
Climate Change	17	Safety and Health Policies	40	Public Policy	75	TSM Content Index	86
Non-GHG Air Emissions	21	Safety Awareness Programs	41			UN Sustainable Development Goals	88
Water Management	22	Security Practices	42			Data Tables	89
Tailings and Waste Management	24	Promoting Employee Wellness	42
Biodiversity and Land Management	26	Innovation to Improve Safety	43
		Local Communities	45
		Economic Impact	46
		Local Employment	50
		Local Procurement	51
		Partnerships and Memberships	51
		Engaging with Community Stakeholders	52
		Local Donations and Volunteerism	55
		Indigenous Relations	60
		Human Rights	62
		Human Capital Management	63
		Board and Management Oversight of HCM	64
		Building a Skilled Workforce	65
		Developing Talent in our Local Communities	66
		Fostering Diversity and Inclusion	67

Forward-looking Statements

Certain statements contained in this Sustainability Report are forward-looking statements, including our current expectations and projections about future results, performance, prospects, and opportunities. We have tried to identify these forward-looking statements by using words such as "may," "will," "expect," "anticipate," "believe," "intend," "feel," "plan," "estimate," "project," "forecast," and similar expressions. These forward-looking statements are based on information currently available to us and are expressed in good faith and believed to have

a reasonable basis. However, our forward-looking statements are subject to a number of risks, uncertainties, and other factors that could cause our actual results, performance, prospects, or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.

These risks, uncertainties, and other factors include but are not limited to those set forth under Part I, Item 1A - Risk Factors in our annual report filed on Form 10-K for the year ended December 31, 2022, which is available on our website or at SEC.gov. Given these risks and uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to Hecla Mining Company or to persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. We do not intend to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Introduction

Environment

Social

Governance

Appendix

Hecla Mining Company Sustainability Report

3

From Our President and CEO,

Phillips S. Baker, Jr.

In 2022, Hecla expanded on the company's commitment to responsible mining. This means meeting the highest environmental and sustainability standards, minimizing the impact of our operations on the environment, and respecting and supporting the communities where we live and work.

Our strong financial performance for the year shows that excelling on our ESG priorities goes hand in hand with revenues and benefits for our investors and other stakeholders. In 2022, we reinforced Hecla's position as the fastest growing established silver company as we achieved our largest-ever silver reserves. Our ESG priorities such as worker safety and wellbeing, emissions reduction, and biodiversity protection were bolstered while we produced our second-highest amount of silver ever: 14.2 million ounces, which is about 50% of U.S. silver production. We also achieved record lead production and reached record milestones in mill throughput at all three of our operations.

Our mines operate in the U.S. and Canada - the safest and most stable jurisdictions in the world - to produce the metals that are essential to the world's clean energy future. And we do it in a manner that's responsible, sustainable, and innovative.

This puts Hecla's stakeholders in a unique position to benefit as the transition to a decarbonized, renewable economy picks up speed and increases the need for silver to power clean energy. Silver plays a vital role in green technologies like solar panels, wind turbines, and electric vehicles, at

a time when the main source of new electricity generation globally is expected to be renewables like solar and wind.

Apart from supporting the world's transition to a green economy, Hecla is also leading its industry in addressing the environmental footprint of its own operations. We achieved net zero carbon emissions in 2022 for the second year in a row, through reducing our company-wide Scope 1 and Scope 2 greenhouse gas (GHG) emissions and purchasing United Nations Framework Convention on Climate Change's Certified Emissions Reduction (CER) Credits to offset the remaining emissions. We have set a goal of maintaining this net zero footprint each year, and have reduced our company-wide Scope 1 and Scope 2 emissions by 33% since 2019, embracing our commitment set in 2019 to reach a 30% reduction in Scope 1 and Scope 2 emissions by 2030. We achieve this reduction primarily through a data-driven approach to maximizing operating efficiencies that reduce our use of energy. As a result, for every metric tonne of Scope 1 and Scope 2 emissions in 2022, we produced 465 silver-equivalent ounces.

Utilizing a similar approach has also enabled Hecla to be on track to achieve our goal of

reducing energy usage by five percent in 2023, using a baseline set in 2020. We also reduce our environmental impact by increasing the percentage of clean energy in our mix - particularly through our use of hydroelectricity.

Reclaiming Mined Lands for Habitats and

Communities: Hecla is committed to responsible mining practices that anticipate and minimize our impacts on the environment. At each site we reclaim land to a high standard when production is complete. In this year's report, we highlight Hecla's focus on responsibility, innovation, and technical expertise through three reclamation projects.

At the Troy mine in Montana, Hecla's reclamation work led to originating the Grizzly Corridor Project to create travel routes for bears and stimulate the growth of nutritious forage in the understory. We also completed the planning for a long-term water management strategy to direct clean water from the mine site outside the facility.

Our reclamation work at San Sebastian - restoring the land to its prior setting and community use - is now recognized with an award from the American Exploration & Mining Association for its attention to the environment and surrounding communities.

In the Yukon, Hecla is continuing to advance a reclamation plan focused on returning the historic Keno Hill Mining District to a natural state, while incorporating feedback from Indigenous Peoples.

Introduction

Environment

Social

Governance

Appendix

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4

Other ESG priorities were at the core of our success in 2022 as well. In 2022, all Hecla employees were paid a living wage, and in this report Hecla publishes a commitment to ensuring all employees receive the compensation required to cover basic needs for themselves and their families.

To further support worker health and wellbeing, in 2022 we developed a company-wide campaign and a set of resources for suicide prevention, including in-person training at every site.

Hecla is a strong community partner and has deep roots in many of the locations where we operate. Our

White-tailed deer, observed at our reclamation site in Montana

Workforce safety has always been a core value of our company. Our safety performance was strong in 2022 as our All-Injury Frequency Rate (AIFR) remained at a historically low level

(1.22) - matching our previous company record. This level is ten percent below our 2022 target, and is 42% below

the U.S. average. The 2022 rate is the lowest we've seen since implementing the National Mining Association's CORESafety initiative in 2012.

We also expanded our Zero Tolerance Standard to reflect the importance of seven high-risk safety rules. Hecla mines earned numerous safety awards in 2022, including the distinguished Sentinel of Safety from the National Mining Association, placing Fire Creek on a prestigious list of the safest mines in the U.S.

contributions include economic impact through employment, tax payments, business relationships, and charitable donations to support education, youth activities, community programs, and health services. In 2022, we had a direct economic impact of more than $833 million to our communities, including more than $1 million in scholarships and donations.

We also invest in our workforce through programs to foster inclusion and diversity. The mining industry has traditionally had a predominantly male workforce, and Hecla is seeking ways to change that by creating more opportunities for women. We set a 2022 goal for increasing the proportion of women in professional roles, linked the goal to a financial incentive for all salaried employees, and exceeded

it - increasing the percentage of women in professional roles by 11% by the end of the year. We also launched a networking group to support women employees.

At the highest levels of the company, we are applying the same vision. In 2022, Hecla's Board elected a woman to serve as Chair for the first time in its 132-year history. Hecla is striving for gender parity on our Board of Directors and, as of 2022, two of our six directors (33%) are women.

Also furthering our contributions to a sustainable future are environmental protection efforts at our sites. These include Lucky Friday's 100% compliance with water effluent limits while achieving record production in 2022, Hecla Quebec's partnership to study woodland caribou population dynamics and reinforce its local

biodiversity management plan, and voluntary habitat improvements being made at our Fire Creek site to avoid disturbance for greater sage grouse, a threatened species.

At Hecla we measure success by a strong culture, consistent leadership, dedicated employees, and healthy communities. Our commitment to sustainability will continue to drive our successful business strategy focused on long-term value creation for all our stakeholders.

I want to thank our Board, employees, and all our stakeholders for your support of our ESG initiatives in 2022. I welcome your input as we continue on our sustainability journey.

Phillips S. Baker, Jr.

President & Chief Executive Officer

Introduction

Environment

Social

Governance

Appendix

Hecla Mining Company Sustainability Report

5