Mr. Gil Clausen of Copper reports

HUDBAY PLAN OF ARRANGEMENT WITH COPPER MOUNTAIN OVERWHELMINGLY SUPPORTED BY SHAREHOLDERS AT SPECIAL MEETINGS

Shareholders of both Hudbay Minerals Inc. and Copper Mountain Mining Corp. have approved the resolutions required to consummate the previously announced plan of arrangement. At their respective special meetings of shareholders on June 13, 2023, the resolutions were passed with results as shown in the attached table.

Hudbay

At the meeting, the share issuance resolution required to consummate the transaction was passed with the voting results as shown in the attached table.

Copper Mountain

At the meeting, Copper Mountain shareholders supported the transaction with voting results as shown in the attached table.

"The overwhelming shareholder support solidifies the alignment of the Copper Mountain mine with Hudbay's strategic and financial objectives and the combined company is well positioned to create meaningful value for all shareholders," said Peter Kukielski, president and chief executive officer of Hudbay. Gil Clausen, president and chief executive officer of Copper Mountain, echoed this sentiment, saying, "We are pleased with the strong endorsement by the company's shareholders indicating widespread support for the future of the combined company."

Transaction highlights

The combination of Hudbay and Copper Mountain is on-strategy with strong industrial logic that will offer both sets of shareholders compelling benefits, as highlighted below:

• Scale -- a larger-scale platform with three long-life operating mines with exploration and expansion upside, three large-scale development projects and one of the largest mineral resource bases among intermediate copper producers;
• Diversification -- a geographically balanced portfolio in tier-one mining jurisdictions with approximately 55 per cent of net asset value (NAV) estimated to be from North American assets and 45 per cent of NAV estimated to be from South American assets;
• Copper focused -- a copper-focused portfolio with expected 2023 copper production of more than 150,000 tonnes in the second quartile position on the copper cost curve, complemented by meaningful gold production;
• Efficiencies -- an estimated $30-million (U.S.) per year of operating efficiencies and corporate synergies, including approximately $20-million (U.S.) per year from operating cost reductions through the application of Hudbay's operating efficiency practices to the Copper Mountain mine;
• Deleveraging -- well positioned for accelerated deleveraging in the near-term from increased diversification of cash flows and enhanced exposure to rising copper prices;
• Capital allocation -- an ability to maximize value from a larger organic growth pipeline by more efficiently allocating capital to projects that yield the highest risk-adjusted returns; the combined company's greater cash flow generation and strong balance sheet will enhance the ability to advance brownfield expansion opportunities and prudently develop Hudbay's Copper World project in Arizona, which will deliver meaningful growth to the combined company;
• Valuation rerating potential --the strategic and financial benefits from the transaction ultimately position the combined company for a valuation rerating.

Transaction effective date

In addition to shareholder approvals received, the transaction is subject to final court approval and the satisfaction of certain other customary closing conditions for transactions of this nature. The Toronto Stock Exchange has conditionally approved the listing of the Hudbay common shares to be issued in connection with the transaction, and the requisite regulatory approval for the transaction under the Competition Act (Canada) has been obtained. It is currently anticipated that the effective date of the transaction will occur on or about June 20, 2023.

As of the effective date, each Copper Mountain shareholder (other than any dissenting Copper Mountain shareholders) will receive 0.381 of a Hudbay share for each Copper Mountain share or Copper Mountain CDI held. As a result of the transaction, Copper Mountain will become a wholly owned subsidiary of Hudbay.

About Hudbay Minerals Inc.

Hudbay is a diversified mining company with long-life assets in North 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.

About Copper Mountain Mining Corp.

Copper Mountain owns 75 per cent of the Copper Mountain mine, which is located in Southern British Columbia near the town of Princeton. The Copper Mountain mine produces approximately 100 million pounds of copper equivalent on average per year.

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