Mr. Peter Kukielski reports

HUDBAY REACHES MAJOR MILESTONE TOWARDS ACHIEVING ITS 2030 GREENHOUSE GAS REDUCTION TARGETS WITH THE SIGNING OF A RENEWABLE POWER SUPPLY AGREEMENT FOR ITS CONSTANCIA MINE IN PERU

Hudbay Minerals Inc. has signed a new 10-year power purchase agreement with ENGIE Energia Peru for access to a 100-per-cent renewable energy supply to Hudbay's Constancia operations in Peru.

"Last December, Hudbay committed to reducing its 2030 greenhouse gas emissions by 50 per cent and achieving net zero by 2050. The signing of this 10-year power purchase agreement marks a major milestone for achieving Hudbay's greenhouse gas reduction goals," said Peter Kukielski, Hudbay's president and chief executive officer. "We are proud of this achievement as it places Hudbay firmly in reach of achieving a 50-per-cent emissions reduction by 2030 and on track for net zero by 2050. Additionally, Hudbay's low-carbon-footprint production will continue to produce the metals needed for the global transition to a low-carbon future."

Guaranteed supply of renewable energy

Following the end of the current power supply agreement in Peru, energy will be supplied by ENGIE Energia Peru starting on Jan. 1, 2026, with a 10-year term. The new agreement ensures a consistent and guaranteed supply of renewable energy sufficient for Hudbay's Constancia operation. The new contract provides improved flexibility in power supply levels and lower contracted costs as compared with the existing power supply contract. The contract functions on a consumption basis, ensuring the company's costs are variable based on actual usage, with no minimum spend or penalty for usage below the contracted rate.

In alignment with Hudbay's greenhouse gas (GHG) emission reduction initiatives, the new contract includes the granting of renewable energy certificates (RECs) to Hudbay as an assurance of the supply of renewable energy dedicated to Constancia's electricity consumption. These RECs will be applied to Hudbay's energy consumption to enable the company to have a 100-per-cent-carbon-neutral energy supply at its Constancia operations. As a result of the application of these RECs, total Scope 1 and Scope 2 GHG emissions companywide at Hudbay's current operations are expected to decline by 40 per cent during the life of the contract, positioning the company well to achieve its 2030 climate change target of a 50-per-cent reduction in Scope 1 and Scope 2 GHG emissions.

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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