HECLA PARTICIPATES IN THE FINANCING OF DOLLY VARDEN SILVER CORPORATION

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COEUR D’ALENE, Idaho, February 23, 2022 /CNW/ – Hecla Mining Company (NYSE: HL) (“Hecla“) announced today that on February 22, 2022, a wholly-owned subsidiary of Hecla entered into the Subscription Agreement to acquire 9,048,539 common shares of Dolly Varden Silver Corporation (“Dolly Varden“). Transactions under the Subscription Agreement must be completed on February 25, 2022subject to and immediately following the issue by Dolly Varden of 76,504,590 shares to Fury Gold Mines Ltd. (“Fury“) in connection with Dolly Varden’s acquisition of the Homestake Ridge gold-silver project. The 9,048,539 shares subscribed by Hecla represent approximately 6.91% of the 131,012,861 shares outstanding immediately prior to entering into the subscription agreement (calculated on a non-diluted basis).

Prior to entering into the subscription agreement, Hecla held 13,869,729 shares representing 10.59% of the shares and 940,948 warrants to acquire additional shares. Following completion of the subscription and issuance of Shares to Fury, Hecla will hold 22,918,268 Shares, representing 10.58% of the 216,565,990 Shares (calculated on a non-diluted basis), and 940,948 warrants. Assuming the exercise of only the warrants held by Hecla (and the issuance of shares to Fury), Hecla is deemed to own 23,859,216 shares representing 10.97% of the shares on a partially diluted basis. The change in Hecla’s percentage ownership is therefore a decrease of 0.01% on an undiluted basis and 0.25% on a partially diluted basis.

The shares will be acquired for investment purposes by Hecla. Hecla does not currently intend to acquire ownership or control of additional securities of Dolly Varden. Hecla intends to assess its investment in Dolly Varden on an ongoing basis and these holdings may be increased or decreased in the future.

For the purposes of National Instrument 62-103, Hecla’s address is 6500 N. Mineral Roadoffice 200, Coeur d’Alene, Idaho83815, United States.

About Hecla

Founded in 1891, Hecla Mining Company (NYSE: HL) is a low-cost leader we silver producer with operating mines Alaska, Idahoand Mexico and is a gold producer with operating mines in Quebec, Canada and Nevada. The Company also owns exploration and pre-development properties in eight world-class silver and gold mining districts in the we, Canada and Mexicoand an exploration office and investments in early-stage silver exploration projects in Canada.

THE SOURCE Hecla Mining Company

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