China’s demand for silver has grown by over 100 million ounces over the past 10 years, thanks in part to a  strong Chinese economy, a manufacturing boom, and heavy infrastructure investment. That puts its share of  global demand at 17 percent — a number that will no doubt increase as its middle class swells to accommodate  the hundreds of millions of urbanizing Chinese. It all points to the fact that what Hecla does matters — and not just to our employees, our investors, and  our communities, but to people halfway around the world. Industry demands it, technology requires it,  emerging economies depend on it. Silver has value. And Hecla has a history of generating — and delivering — that value. In 2013 we’ll begin to see the results of the Lucky Friday getting back up and running; operation at full  capacity is expected by mid-year. Greens Creek is expected to continue increasing throughput and completing  capital and exploration programs to extend mine life. Along with the promising developments both at San Juan  Silver and at San Sebastian, we expect to meet our  goal of 15 million ounces of silver production  annually by 2017. And if we’re successful acquiring  Aurizon, about 175 thousand ounces of gold  production are expected in 2013. It’s a long-term view that’s made Hecla successful  over its 122-year history. And it’s a long-term view  that we anticipate will lead to further success over  the next few decades, as we continue to invest with  discipline and prudence in our mines, pre- development projects, promising exploration, and the  acquisition of companies.  Production, exploration, and pre-development success; the transformation at the Lucky Friday and the  record investment in Greens Creek; the acquisition of additional assets: all are designed to give shareholders  lasting value. We believe growing quality production that can generate returns will result in a higher share  price. And while our share price performance in 2012 relative to other mining companies was stronger than  many, our absolute share price performance needs to be even better. We have excellent properties and  acquisitions that, provided we execute our plans, we believe will deliver that better share price performance.  Thank you for your continued support.  I’d also like to thank our Lucky Friday workforce for their efforts in bringing the mine back online this  year, and to the hard-working employees at Greens Creek for their stellar year. Our success in 2012 is only  from their efforts. And to our Silver Valley communities, all of which were affected by the Lucky Friday  shutdown, thank you for your patience. The Lucky Friday is back and stronger than ever. Finally, I want to thank our board of directors, our management team, and every one of our employees for  their dedication and fortitude to help Hecla meet the needs of a changing world. [HL] 3 Phillips S. Baker, Jr. president and chief executive officer March 22, 2013 the Future thankS Silver Reserve and Resource Growth proven & probable reserves  ( + 230% ) mineralized material  ( + 274% ) other resources  ( + 179% )  silver ounces  ( mm ) 2003 2012 150 127 172 34 45 62