Mr. Peter Kukielski reports

HUDBAY ANNOUNCES RELEASE OF ITS 20TH ANNUAL SUSTAINABILITY REPORT AND LAUNCHES COMPANY PURPOSE STATEMENT

Hudbay Minerals Inc. has released its annual sustainability report, which provides transparency and progress on key accomplishments and initiatives in 2022, along with goals for the coming year and longer term. Along with this release, Hudbay has launched its purpose statement describing the value the company creates and the impact it has while contributing to a low-carbon future: "We care about our people, our communities and our planet. Hudbay provides the metals the world needs. We work sustainably, transform lives and create better futures for communities."

"Hudbay enjoys a rich history that grounds us and a purpose that leads to a bright future," said Peter Kukielski, Hudbay's president and chief executive officer. "We are committed to finding and producing copper and other critical metals needed to combat climate change, to pursuing responsible growth while meeting our greenhouse gas (GHG) emissions targets, to ensuring our activities benefit the communities near our operations and to delivering dependable value for our stakeholders. In 2022, we took tremendous steps to manage the social, environmental and economic risks associated with mining. Notably, in December, we announced several climate change initiatives, including 2030 GHG reduction targets and a commitment to achieve net-zero GHG emissions by 2050."

Sustainability is an organization-wide commitment that defines Hudbay, and the company demonstrates it in every aspect of its operations. In 2022, the company took the following actions:

• Hudbay announced its commitment to achieve net-zero GHG emissions by 2050, in line with the Paris Agreement, while adopting interim GHG reduction targets for 2030 to support this commitment:
• • Pursuing a 50-per-cent reduction in absolute Scope 1 and Scope 2 emissions from existing operations by 2030 (compared with 2021);
  • Achieving net-zero total emissions by 2050;
  • Reporting on material Scope 3 emissions in the near term;
  • Assessing acquisitions and new projects against corporate emissions targets;
  • Continuing to be transparent with GHG performance data disclosure, including reporting total GHG emissions and GHG intensity;
  • Evaluating new technologies as they become commercially available and economically viable.
• Sixty-nine per cent of the company's indirect energy consumption is from renewable sources. Hudbay continues to make progress toward reducing GHG emissions, including the recently announced energy supply contract in Peru that will provide 100 per cent renewable energy to the company's Constancia operations beginning in 2026.
• Hudbay's commitment to sustainability is put into action through initiatives aimed at supporting positive social impacts, including expanding opportunities for women in mining and increasing employment opportunities for indigenous peoples in Manitoba.
• In Peru, the company participated in over 1,178 community meetings, negotiations and roundtables in 2022 to help keep lines of communication open with neighbouring communities, including those along critical transportation routes. Additionally, Hudbay engaged with stakeholders, from community members to government officials, through various approaches and strategies designed to meet their needs.
• In Manitoba, the Canadian Council for Aboriginal Business (CCAB) designated silver-level standing in its Progressive Aboriginal Relations (PAR) program to Hudbay in 2022. Hudbay is one of only two mining companies to achieve a silver level or higher certification, which recognizes the company's efforts to foster reconciliation and prioritize support for indigenous businesses.
• In Arizona, company representatives invited the chair and council members of a local Native American tribe to tour the site and discuss the company's approach to identifying and mitigating impacts on cultural resources. The face-to-face meeting with around 20 members of the tribe provided an opportunity for them to ask questions, express concerns and provide feedback.
• Hudbay commits to implementing the Mining Association of Canada's Towards Sustainable Mining (TSM) program. The company received AAA-level rating in Manitoba and AA-level rating in Peru across all TSM tailings management protocol indicators.
• Hudbay's 2022 annual sustainability report disclosures were mapped to the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB) Metals & Mining industry standard, and the Task Force on Climate-related Financial Disclosures (TCFD). Hudbay also provides disclosure through the CDP climate, water and forests questionnaires.
• As of May 10, 2023, nine of the 10 board of directors members were independent, non-executive directors. Hudbay's president and chief executive officer, Peter Kukielski, is the only executive director.
• Among the directors, 30 per cent are women and 20 per cent are visible minorities. The board remains committed to a company target of having at least 30 per cent women directors on the board as part of its overall commitment to diversity and inclusion.
• In 2022, the company also delivered a diversity, equity and inclusion training program to all directors and employees. The training focused on diversity and inclusion in the workplace, microaggressions and unconscious biases.

While Hudbay is pleased with the steps taken in 2022 toward its long-term sustainability goals, the company has set new 2023 targets to further progress on its path of continuous improvements. In health and safety, the company aims to match or improve on its three-year total recordable injury frequency average of 1.35. In Peru, Hudbay will strive to avoid operational shutdowns due to community and political activity. In Manitoba, the company expects to return Manitoba TSM indigenous and community relationships protocol performance to A or above for all of the indicators. The company is looking to conduct active tracking and monitoring of GHG reduction opportunities at each of its operations while identifying opportunities at Copper World that would allow the development of the project within the 2030 GHG reduction goals. The company is executing an action plan based on the findings from a recent employee culture survey and is expecting to roll out a new high-potential employee program in 2023. Hudbay is also assessing similar measures and targets for implementation at the Copper Mountain mine upon completion of its recently announced acquisition of Copper Mountain Mining Corp.

Details of the company's annual and sustainability results can be found on Hudbay's website.

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