Page 74 B y K e vin V inc ent Hecla M ining C ompan y o wners of the hist or ic C asa B er ar di M ine in nor th w est er n Q uebec launched 2020 b y r epor ting the highest silv er lead and zinc r eser v es in its 129 y ear hist or y and pr o vided an enc our ag ing upda t e on its e xplor a tion pr o g r ams dur ing the f our th quar t er of 2019 I n 2020 a t cur r en t pr ic es w e e xpec t c on tinued str ong cash fo w gener a tion with the ongoing solid per f or manc e a t Gr eens C r eek the r amp up of L uck y F r ida y e xpec t ed impr o v e men ts a t C asa B er ar di and the po t en tial mine lif e e x t ension a t S an S e bastian fr om the Hugh Z one P hillips S Baker Jr P r esiden t and CEO said T he f ounda tion of v alue cr ea tion f or an y mining c ompan y is incr eas ing r eser v es and Hecla s silv er lead and zinc r eser v es ar e the most in our 129 y ear hist or y said Baker Jr D e spit e using wha t w e believ e is the industr y s most c onser v a tiv e pr ic e assumption and spending our sec ond lo w est amoun t on e xplor a tion in the last 10 y ears Hecla g r ew silv er r eser v es 11 last y ear with Gr eens C r eek ha ving its most r eser v es sinc e 2001 W e e xpec t our e xplor a tion pr og r ams o v er the ne x t f ew y ears t o fur ther add r eser v es acr oss the C om pan y 2019 w as a tale of t w o halv es wher e the sec ond half had higher pr oduc tion higher pr ic es bett er ear nings and mor e cash fo w said Baker T he str ong thir d and f our th quar t ers mar kedly impr o v ed our fnancial c ondition putting us in a bett er po sition t o r efnanc e the S enior Not es A t C asa B er ar di the 1378065 t ons pr oc essed a t the mill c on tained ap pr o xima t ely 165368 ounc es of gold with 57 of the milled t onnage c om ing fr om under g r ound and 43 of the milled t onnage c oming fr om the East M ine C r o wn P illar EMCP P it P r o v en and pr obable gold r eser v es decr eased appr o xima t ely 10 t o 172 million ounc es and r eser v e t on nage a t C asa B er ar di decr eased 4 t o 206 million t ons o v er 2018 T her e w as an o v er all r educ tion in un der g r ound r eser v es a t C ase B er ar di of 105600 gold ounc es and a de cr ease of open pit r eser v es of 83100 gold ounc es c ompar ed t o 2018 M ost of these decr eases w er e due t o mining depletion Hecla has mined o v er 1 million ounc es of gold a t C asa B er ar di sinc e ac quisition in 2013 M easur ed and indica t ed gold r e sour c es decr eased 12 fr om 2018 lev els as gains fr om under g r ound dr illing w er e of set b y decr eases in the P it ar eas T he lar gest decr eases w er e a r esult of c on v ersion t o under g r ound r eser v es of the 148 Z one and r eclassifca tion of some r esour c es t o I nf er r ed belo w the 160 P it I nf er r ed gold r esour c es incr eased 49 fr om 2018 lev els On the e xplor a tion side a t C asa B e r ar di dur ing the f our th quar t er up t o sev en under g r ound dr ills w er e used t o r efne st ope desig ns e xpand r eser v es and r esour c es in the 113 118 119 124 128 and 148 z ones and c onfr m fur ther pot en tial a t depth and t o the east and w est One dr ill on sur fac e c omplet ed infll and e xplor a tion dr illing within and near the pr oposed 160 P it and c on tinues t o c onfr m c on tinuit y with the pit outline and e xpand r esour c e out side of the cur r en t pit desig n Dr illing in the East M ine f ocused on defning c on tinuit y and e xpanding miner aliza tion in the high g r ade 148 Z one and open pit miner aliza tion within and outside the pr oposed 160 P it W ithin the 14801 lens in the 148 Z one high g r ade in t ersec tions include 048 o zt on gold o v er 118 f eet 089 o zt on gold o v er 148 f eet and 047 o zt on gold o v er 298 f eet c onfr ming c on tinuit y within the lens Dr illing in the 160 Z one within and belo w the cur r en t pit outline c on tinues t o defne br oad in t er v als of miner aliza tion and adding r e sour c es with r ec en t in t ersec tions in cluding 011 o zt on gold o v er 1132 f eet and 013 o zt on gold o v er 686 f eet I n the W est M ine ar ea dr illing in the 113 and 118 z ones tar get ed multiple lenses along the C asa B er ar di F ault in or der t o e x t end k no wn miner al iza tion a t depth and t o the east out side of the cur r en t r esour c es R ec en t in t ersec tions including 011 o zt on gold o v er 262 f eet suggest this z one c on tinues t o be open a t depth H igh in the mine dr illing tar get ed the east er n e x t ension of the stacked 119 Z one or e lenses a t the c on tac t be t w een the sedimen ts and v olcanics associa t ed with p yr itic cher t and stacked quar tz v eins south of the C asa B er ar di F ault R ec en t in t ersec tions include 025 o zt on gold o v er 295 f eet including 042 o zt on gold o v er 59 f eet and 012 o zt on gold o v er 371 f eet I n the frst quar t er of 2020 under g r ound dr illing is e xpec t ed t o e x pand and r efne r esour c es in 123 Z one in the W est M ine and the high g r ade 148 Z one in the East M ine Un der g r ound e xplor a tion dr illing dur ing the y ear is planned t o ev alua t e the lo w er e x t ension of the 113118 and 128 z ones in the W est M ine and the 146 148 and 152 z ones in the East M ine Page 74 C asa B er ar di pr o v en and pr obable do wn mar ginally in t o 2020