1
                                           
Prospectus Supplement No. 1                    Filed Pursuant to Rule 424(b)(3)
to Prospectus dated August 14, 1996                  Registration No. 333-06537
                                                     

                        32,086,957 SHARES OF COMMON STOCK
                      AND WARRANTS TO PURCHASE COMMON STOCK
                      SUNSHINE MINING AND REFINING COMPANY


     This Prospectus Supplement supplements certain information contained in
that certain Prospectus of Sunshine Mining and Refining Company, a Delaware
corporation (the "Company"), dated August 14, 1996 (the "Prospectus") relating
to the offer and sale (the "Offering") of certain shares of Common Stock, $.01
par value, including up to 30,000,000 shares of Common Stock (the "Exchange
Common Stock") issuable upon exchange of the 8% Senior Exchangeable Notes due
2000 (the "Notes") issued by Sunshine Precious Metals, Inc. and guaranteed by
the Company by certain stockholders of the Company (the "Selling Stockholders").
This Prospectus Supplement is not complete without, and may not be delivered or
utilized except in connection with, the Prospectus, including any amendments or
supplements thereto. Capitalized terms used herein but not defined have the
meanings assigned to such terms in the Prospectus.

     The following table supplements the information set forth in the Prospectus
in the table under the caption "Selling Stockholders" with respect to (i) the
name of each Selling Stockholder, (ii) the number of shares of Common Stock
owned prior to the Offering (assuming no Common Stock has been sold since the
date on which such stockholders provided such information to the Company), (iii)
the number of shares of Exchange Common Stock that may be offered for the
account of such Selling Stockholders under the Prospectus, as amended and
supplemented and (iv) the number of shares of Exchange Common Stock owned after
the Offering.



- ---------------------------    --------------------------------         ---------------------   -------------------
Name of Selling Stockholder    Number of Shares of Common Stock          Number of Shares of    Number of Shares of
                                  Beneficially Owned Prior to           Exchange Common Stock     Exchange Common
                                         Offering (1)                   Being Registered for    Stock Owned After
                                                                               Resale              the Offering
- ---------------------------    --------------------------------         ---------------------   -------------------
                                                                                                  
Liechtensteinische                        300,000                             300,000                      0
Landesbank AG, Vaduz

Morgan Stanley & Co.                       48,000                              48,000                      0

Credit  Suisse First  Boston,             100,000                             100,000                      0
Zurich

Morgan Stanley & Co.                      152,000                             152,000                      0

Bunting Warburg Inc.                      100,000                             100,000                      0

Bunting Warburg Inc.                      300,000                             300,000                      0


(1)  Represents shares of Common Stock received upon exchange of the Notes. The
     Company believes that the Selling Stockholders do not beneficially own any
     other shares of Common Stock of the Company other that the Exchange Common
     Stock.

     The date of this Prospectus Supplement is February 23, 1998