Mr. Gil Clausen reports

AUGUSTA REPORTS PROGRESS ON VALUE ENHANCING PROCESS, PERMITTING AND PROJECT FINANCING

Augusta Resource Corp. today provided an update on its strategic review process, which continues to be robust. The company also provided an update on permitting and project financing, with both processes advancing well and on track for completion in the second and third quarters of 2014, respectively.

Augusta's president and chief executive officer, Gil Clausen, said: "Augusta and its advisers are actively engaged in discussions with several third parties who are continuing their due diligence on Rosemont, including comprehensive site visits. We are fully committed to maximizing value for Augusta shareholders by pursuing and evaluating alternatives to HudBay's offer. HudBay's tactics and recent statements on our permitting and project financings are self-serving and without merit. Both processes are on track and as guided."

For further details on the strategic review process, permitting and project financing, please see Augusta's April, 2014, presentation, available on the company's website under the HudBay offer page.

Strategic review process

The strategic review process initiated by Augusta in response to the unsolicited offer from HudBay Minerals continues to be active, with 10 signed confidentiality agreements related to the current process. Potential bidders remain actively engaged in due diligence and continuing management discussions. Five site tours with detailed management meetings have been conducted or are scheduled to be completed by the end of this week.

Permitting update

Augusta is in the final stages for the two outstanding federal regulatory approvals required to commence construction at its Rosemont copper project: the final record of decision from the United States Forest Service and the Clean Water Act Section 404 permit from the U.S. Army Corps of Engineers. The important precursors to both of these approvals have been completed, and submittals are pending with the agencies for action. The USFS continues to work on responses to the approximately 100 comments and objections received on the draft record of decision during the objection period, which concluded on Feb. 14, 2014. The USFS must complete written responses to the objections and comments received prior to the conclusion of the review period, which ends on April 30, 2014. Following the response from the USFS, the final record of decision is required to be issued and is expected to be published before the end of the second quarter of 2014, as previously guided. On April 1, 2014, Augusta submitted the mitigation plans for Rosemont for the 404 permit to the ACOE. Subsequently, on April 16, 2014, the ACOE requested some technical clarifications and a response in the form of a final mitigation and monitoring plan by April 24, 2014. The ACOE reaffirmed that it intends to notify the USFS of mitigation plan adequacy by April 30, 2014, to enable the USFS to proceed in accordance with its schedule. Augusta fully expects that the submission of the final Rosemont mitigation plan will allow the ACOE to complete its process and issue the 404 permit by the end of the second quarter of 2014, as previously guided. In other permitting matters, on April 10, 2014, an administrative law judge issued an order affirming the air quality permit and dismissing the appeal based on over 300 findings of fact and 15 conclusions of law.

Project financing update

Following the execution of a project financing mandate letter signed in August, 2013, by a syndicate of international financial institutions, export credit agencies and development banks, significant progress has been made toward the completion of the project financing debt facility for the construction of Rosemont. The lenders' due diligence is substantially complete, and the final term sheet is in an advanced stage of discussion. The lender group, Augusta, and its financial and legal advisers are on track for completing the project financing process in the third quarter of 2014. The project financing package is part of Augusta's financing plan for the construction of Rosemont that includes payments from Silver Wheaton Corp. and Augusta's joint venture partners, LG International Corp. and Korea Resources Corp., and which is expected to provide sufficient financing for the construction of Rosemont, including the repayment of the Red Kite loan facility. The initial proceeds from the Silver Wheaton stream and the remaining joint venture partner financing are expected to be used by Augusta to retire the Red Kite loan. Financing under the project financing will be contingent upon, among other conditions, the advance of the payment from Silver Wheaton and the remaining payment from the joint venture partners. The availability of the Silver Wheaton payment requires Augusta to demonstrate to Silver Wheaton, acting reasonably, that all permits necessary to construct and operate Rosemont are expected to be obtained in the ordinary course of business by the time they are necessary. The company anticipates being able to satisfy this condition by the end of the second quarter of 2014 with the issuance of the 404 permit and final record of decision.

Vote for continuation of shareholder rights plan

Shareholders are reminded to vote their proxy for the continuation of the shareholder rights plan. Augusta urges shareholders to submit their proxies for the shareholders meeting to consider the continuance of the shareholder rights plan prior to April 29, 2014, so that their proxy votes can be considered by the British Columbia Securities Commission at the hearing that has been scheduled for April 29, 2014.

For assistance in voting, shareholders can contact Laurel Hill Advisory Group toll-free at 1-877-452-7184 or by e-mail. Shareholders are encouraged to review Augusta's management information circular dated April 7, 2014, which provides a detailed discussion of the continuation of the shareholder rights plan, a copy of which is available on SEDAR and on Augusta's website.

Reject HudBay's offer -- no action required

To reject HudBay's offer, no action is required on the part of shareholders. The board of directors' recommendation that Augusta shareholders reject HudBay's unsolicited offer and not tender their Augusta shares thereto, as well as a more detailed discussion of the reasons for rejecting HudBay's offer, is set forth in the directors circular issued by the board of directors that was mailed to Augusta's shareholders and filed with securities regulatory authorities. Shareholders are advised to read the directors circular carefully and in its entirety, as it contains important information regarding Augusta, HudBay and HudBay's offer. The directors circular is available on SEDAR and on Augusta's website.

How to withdraw

If you have already tendered your Augusta shares to HudBay's offer, you can withdraw your shares by contacting your broker or Laurel Hill Advisory Group, the information agent retained by Augusta. Laurel Hill can be reached at 1-877-452-7184 (toll-free within North America), or by banks and brokers, or collect calls outside North America at 416-304-0211, or by e-mail.

We seek Safe Harbor.