HECLA MINING CODE

Current report

Our Keno Hill mine is subject to risks associated with permits and the First Nation of Na-Cho Nyäk Dun

Current report

Our Keno Hill operations are located on the Traditional Territory of the First Nation of Na-Cho Nyäk Dun (“FNNND”). Also located on the Traditional Territory of FNNND is Victoria Gold’s Eagle Gold Mine which, on June 24, 2024, experienced a heap leach pad failure causing detrimental impacts to the local environment. As a result of this incident, the FNNND have called for a moratorium on any mining activities at any project that is located within their Traditional Territory, other than care and maintenance and reclamation activities. We have had correspondence with FNNND and are seeking to meet with them in-person to discuss their position.

Current report

In addition to maintaining our social license to mine in the Yukon, the FNNND play an important role in the permitting of multiple aspects of our operations at Keno Hill. For example, we are in a review process to obtain the approval of the Yukon Government (“YG”) to expand our existing dry stack tailings facility (“DSTF”). As part of this review, the YG is consulting with the FNNND, and we have received and are responding to comments on the DSTF expansion plan from both the FNNND and the YG. Obtaining authorization for the DSTF project is important because we estimate we will run out of tailings storage capacity before the end of 2024, unless we were to modify operations and reduce production. Furthermore, because construction of the DSTF expansion is more efficient in warmer weather, obtaining the governments’ approvals soon would allow us to use the rest of the current construction season to complete the DSTF project.

Current report

Although as of the date of this Report we continue normal operations at Keno Hill, including preparation and design work for the DSTF project, it is possible that we may halt operations as a result of the FNNND’s position in the aftermath of the Eagle Mine heap leach pad failure. Additionally, it is possible that we are unable to obtain, or obtain on a timely basis, the approval of the YG and the support of FNNND to construct the DSTF, either of which would impact operations, including a possible temporary halt of production when tailings storage capacity runs out. Lastly, we have offered to assist the YG on the Eagle Gold Mine matter, including use of the resources of a contractor who will be working on the DSTF project. If our contractor’s resources become constrained, it could cause delays to the DSTF project which, as noted above, could impact our production, and therefore our financial results at Keno Hill.