Ms. Candace Brule reports

HUDBAY'S COPPER WORLD PROJECT RECEIVES POSITIVE PERMITTING UPDATE

Hudbay Minerals Inc. has received confirmation from the Army Corps of Engineers (ACOE) that Hudbay's previous surrender of the Section 404 Clean Water Act permit for the former Rosemont project was formally accepted and revoked as requested. The ACOE also reaffirmed the validity of the March, 2021, approved jurisdictional determinations (AJDs), whereby the ACOE determined there are no waters of the United States on the property and, therefore, a 404 permit is not required.

State permitting for the Copper World project was initiated in June, 2021, with the submission of Hudbay's mined land reclamation plan, which has been approved. In April, 2022, Hudbay surrendered the 404 permit to the ACOE as there is no evidence of jurisdictional waters of the United States on the former Rosemont project site. In May, 2022, Judge Soto from the U.S. District Court for the District of Arizona issued a favourable ruling that affirmed Hudbay's surrender of the 404 permit was effective and that the new Copper World project is not connected to the previous federal permitting process. In late 2022, Hudbay submitted the state-level applications for an aquifer protection permit and an air quality permit to the Arizona Department of Environmental Quality (ADEQ). Hudbay continues to expect to receive these two remaining state permits in 2023. In January, 2023, Hudbay received an approved right-of-way from the Arizona State Land Department that will allow for infrastructure, such as roads, pipelines and power lines, to connect between the properties in the company's private land package at Copper World.

Clearing and grading work to prepare for the Copper World site, including the construction of roads and other facilities, continues to be under way. Phase I of Copper World reflects a 16-year stand-alone operation with processing infrastructure on Hudbay's private lands and mining occurring on patented mining claims, requiring only state and local permits. Prefeasibility activities for the private land phase I of the Copper World project are well advanced and a prefeasibility study is expected to be released in mid-2023. Upon receipt of the state-level permits, the company expects to conduct a bulk sampling program at Copper World to continue to derisk the project by testing grade continuity, variable cut-off effectiveness and metallurgical strategies. Hudbay also intends to initiate a minority joint venture partner process following receipt of permits, which will allow the potential joint venture partner to participate in the design and financing of definitive feasibility study activities in 2024.

About Hudbay Minerals Inc.

Hudbay is a diversified mining company with long-life assets in North America and South America. The company's Constancia operations in Cusco (Peru) produce copper with gold, silver and molybdenum byproducts. Its Snow Lake operations in Manitoba (Canada) produce gold with copper, zinc and silver byproducts. Hudbay has an organic pipeline that includes the Copper World project in Arizona and the Mason project in Nevada (United States), and its growth strategy is focused on the exploration, development, operation and optimization of properties it already controls as well as other mineral assets it may acquire that fit its strategic criteria. Hudbay's mission is to create sustainable value through the acquisition, development and operation of high-quality, long-life deposits with exploration potential in jurisdictions that support responsible mining and to see the regions and communities in which the company operates benefit from its presence.

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