Market Overview

Hecla Completes Acquisition of Klondex Mines Ltd.


Hecla Mining Company ((HL)
(Hecla) and Klondex Mines Ltd. (NYSE:KLDX, TSX:KDX) (Klondex)
today announced that Hecla's acquisition of Klondex is complete.

This press release features multimedia. View the full release here:

"With this acquisition, Hecla now has three high-grade mines in Nevada,
one of the best mining districts in the world," said Phillips S. Baker,
Jr., President and CEO. "These assets immediately add production and
cash flow, and because they are a good fit with Hecla's expertise, we
believe there is significant opportunity for improvement in the mines'
productivity and consistency.

"We welcome the former Klondex shareholders and employees to Hecla, as
we continue to grow into the largest and strongest Company in its long
history," Mr. Baker added.

Hecla acquired the outstanding common shares of Klondex for
approximately US$153 million and 75 million shares of Hecla common stock
extinguishing all rights to acquire Klondex common shares. Klondex
shareholders who elected to receive share consideration will receive
0.6272 of a Hecla share in exchange for their Klondex shares. Klondex
shareholders who elected to receive combined cash and share
consideration or who failed to file an election on a timely basis will
receive the combination consideration of US$0.8411 in cash and 0.4136 of
a Hecla share in exchange for their Klondex shares. Klondex shareholders
who elected to receive cash consideration were subject to proration and
will receive US$0.8867 in cash and 0.4020 of a Hecla share in exchange
for their Klondex shares. Klondex shareholders will also receive 0.125
of a common share of Havilah Mining Corporation (Havilah), a
newly-formed entity that will retain Klondex's Canadian operations, as
part of the consideration received in exchange for each of their Klondex

Havilah has been approved to list its common shares on the TSX Venture
Exchange, with trading expected to commence at market open on July 25,
2018. Klondex has also received approval to delist its common shares
from the Toronto Stock Exchange, expected to occur at the opening of
trading on or about July 25, 2018. Klondex shares are expected to be
delisted from the NYSE American Stock Exchange prior to the opening of
trading on July 23, 2018.

As part of the transaction, Hecla subscribed for 3,539,332 common shares
of Havilah, on a private placement basis at a price of C$2.61 per share
for a gross purchase price of C$9,242,800 (being the Canadian dollar
equivalent of US$7 million). The shares of Havilah acquired by Hecla
represent 13.46% of the outstanding common shares of Havilah, after
giving effect to the subscription. The common shares were acquired for
investment purposes by Hecla. Hecla does not have any present intention
to acquire ownership of, or control over, additional securities of
Havilah. It is the intention of Hecla to evaluate its investment in
Havilah on a continuing basis and such holdings may be increased or
decreased in the future. For the purposes of Canadian National
Instrument 62-103, the address of Hecla is 6500 N. Mineral Drive, Suite
200, Coeur d'Alene, Idaho, 83815, USA.


Founded in 1891, Hecla Mining Company ((HL)
is a leading low-cost U.S. silver producer with operating mines in
Alaska, Idaho and Mexico, and is a growing gold producer with operating
mines in Quebec and Nevada. The Company also has exploration and
pre-development properties in eight world-class silver and gold mining
districts in the U.S., Canada, and Mexico.

Cautionary Statements Regarding Forward Looking Statements

Statements made or information provided in this news release that are
not historical facts are "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of Canadian securities
laws. Words such as "may", "will", "should", "expects", "intends",
"projects", "believes", "estimates", "targets", "anticipates" and
similar expressions are used to identify these forward-looking
statements. Such forward-looking statements or forward-looking
information include statements or information regarding estimates of
gold production, revenue, and mine life for Fire Creek, Midas and
Hollister, as well as statements concerning the combined company's cash
flow and profitability. The material factors or assumptions used to
develop such forward-looking statements or forward-looking information
include that the Company's plans for development and production will
proceed as expected and will not require revision as a result of risks
or uncertainties, whether known, unknown or unanticipated, to which the
Company's operations are subject.

Forward-looking statements 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, litigation, regulatory and
environmental risks, operating risks, project development risks,
political risks, labor issues, ability to raise financing and
exploration risks and results. Refer to the Company's Form 10K and 10-Q
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 other than as may be
required by law.

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