719413--3/2/2009--HECLA_MINING

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We have limited cash resources and may be dependent on accessing additional financing to meet our expected cash needs. The global financial crisis may have an impact on our business and financial condition in ways that we currently cannot predict. We have had losses that may continue in the future. Commodity hedging activities could expose us to losses. Our profitability could be affected by the prices of other commodities. Our accounting and other estimates may be imprecise. A substantial or extended decline in metals prices would have a material adverse effect on us. An extended decline in metals prices may cause us to record write-downs, which could negatively impact our results of operations. The terms of our credit facilities restrict our current and future operations, particularly our ability to respond to changes in our business or to take certain actions and that, in turn, could impair our ability to meet our obligations. Our ability to recognize the benefits of deferred tax assets is dependent on future cash flows and taxable income The inability to meet the payment obligations of our credit facilities when due could adversely affect our financial results or condition. Failure to comply with debt covenants could adversely affect our financial results or condition. Deferral of dividends on our preferred stock may have adverse consequences. Returns for Investments in Pension Plans Are Uncertain Our foreign operations are subject to additional inherent risks. We may be subject to a number of unanticipated risks related to inadequate infrastructure. Our development of new orebodies and other capital costs may cost more and provide less return than we estimated. Our ore reserve estimates may be imprecise. Efforts to expand the finite lives of our mines may not be successful, which could hinder our growth and decrease the value of our stock. Our joint development and operating arrangements may not be successful. Our ability to market our metals production may be affected by disruptions or closures of custom smelters and/or refining facilities. Efforts to reduce costs may not be successful or may have adverse consequences. We face inherent risks in acquisitions of other mining companies or properties that may adversely impact our growth strategy. Our business depends on good relations with our employees. Mining accidents or other adverse events at an operation could decrease our anticipated production. Our operations may be adversely affected by risks and hazards associated with the mining industry that may not be fully covered by insurance. LEGAL, MARKET AND REGULATORY RISKS We are currently involved in ongoing legal disputes that may materially adversely affect us. We are required to obtain governmental and lessor approvals and permits in order to conduct mining operations. We face substantial governmental regulation and environmental risk. Our environmental remediation obligations may exceed the provisions we have made. The titles to some of our properties may be defective or challenged. The price of our stock has a history of volatility and could decline in the future. Our Series B Preferred Stock has a liquidation preference of $50 per share or $8.0 million. Our Mandatory Convertible Preferred Stock has a liquidation preference of $100 per share or $204.5 million. Our 12% Convertible Preferred Stock has a liquidation preference of $100 per share or $4.3 million. We may not be able to pay preferred stock dividends in the future. Additional issuances of equity securities by us would dilute the ownership of our existing stockholders and could reduce our earnings per share. The issuance of additional shares of our preferred stock or common stock in the future could adversely affect holders of Common Stock. If a large number of shares of our Common Stock is sold in the public market, the sales could reduce the trading price of our Common Stock and impede our ability to raise future capital. Common Stock issued pursuant to subsequent offerings or eligible for future issuance or sale may cause the Common Stock price to decline, which may negatively impact your investment. The provisions in our certificate of incorporation, our by-laws and Delaware law could delay or deter tender offers or takeover attempts that may offer a premium for our Common Stock. If we cannot meet the New York Stock Exchange continued listing requirements, the NYSE may delist our Common Stock.

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719413--3/2/2009--HECLA_MINING_CO/DE/