Note 1. Basis of Preparation of Financial Statements

The accompanying unaudited interim condensed consolidated financial statements of Hecla Mining Company and its subsidiaries (collectively, “Hecla,” “the Company,” “we,” “our,” or “us,” except where the context requires otherwise) have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required annually by accounting principles generally accepted in the United States of America (“GAAP”). Therefore, this information should be read in conjunction with the Company’s consolidated financial statements and notes contained in our annual report for the year ended December 31, 2025, which were revised to conform with current year financial statement changes as described in Note 2U. Reclassifications — regarding reclassifications in the Consolidated Statements of Operations and Comprehensive Income (Loss) presentation and the elimination of Casa Berardi as segment and reported as a discontinued operation and are included in Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on August 28, 2026. The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for the fair presentation of the results for the interim periods reported. All such adjustments are, in the opinion of management, of a normal recurring nature. Operating results for the three and nine months ended September 30, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026.

On March 25, 2026, we completed the previously announced sale of our wholly owned subsidiary Hecla Quebec Inc. (“Hecla Quebec”), which owned the Casa Berardi mine and other exploration properties in Quebec, Canada, to Orezone Gold Corporation (“Orezone”) for total undiscounted consideration of up to $601.7 million. We recognized a loss of $192.5 million, upon the sale of Hecla Quebec based upon the difference between the fair value of the consideration received and the net assets disposed of. The transaction represents a strategic shift that has a major effect on our operations and financial results and therefore, beginning with the quarterly report on Form 10-Q for the period ended March 31, 2026, the Casa Berardi operation is no longer a reportable segment and its financial results are reflected in our condensed consolidated financial statements as a discontinued operation for all periods presented, including prior periods which have been recast to reflect this presentation. Unless otherwise specified, these notes to the unaudited interim condensed consolidated financial statements reflect continuing operations. See Note 13. Sale of Hecla Quebec Inc. and Discontinued Operations for additional information.

During the nine months ended September 30, 2026, we also completed the sale of our immaterial Mexican subsidiaries, Minera Hecla and Industrias Hecla, as we executed on our strategic decision to exit Mexico. Minera Hecla was engaged in rehabilitation activities of the former San Sebastian mine site. Total cash consideration of $5.2 million was received, and we recognized a loss of $2.4 million.