Mr. Peter Kukielski reports

HUDBAY COMPLETES ACQUISITION OF COPPER MOUNTAIN TO CREATE A PREMIER AMERICAS-FOCUSED COPPER PRODUCER

Hudbay Minerals Inc. has closed its previously announced court-approved plan of arrangement with Copper Mountain Mining Corp., pursuant to which Hudbay has acquired all of the issued and outstanding common shares of Copper Mountain effective as of today. Copper Mountain is now a wholly owned subsidiary of Hudbay and, in accordance with the terms of the transaction, former Copper Mountain shareholders received 0.381 of a Hudbay share for each Copper Mountain share previously held.

The transaction creates a premier Americas-focused copper mining company that is well positioned to deliver sustainable cash flows from an operating portfolio of three long-life mines, as well as compelling organic growth from a world-class pipeline of copper expansion and development projects. All assets in the combined portfolio are located in the Tier 1 mining-friendly jurisdictions of Canada, Peru and the United States. The combined company represents the third largest copper producer in Canada based on 2023 estimated copper production.

Peter Kukielski, Hudbay's president and chief executive officer, commented: "We look forward to the formal integration of Copper Mountain into our complementary portfolio of operating assets. By applying our technical expertise, we expect to unlock significant annual operating efficiencies and synergies at the mine to drive further value for shareholders. This transaction creates a larger, more resilient operating platform that enhances our copper exposure, accelerates our deleveraging efforts and positions us to more efficiently allocate capital to prudently advance our enviable organic growth pipeline."

Leadership additions

In connection with the closing of the transaction, Hudbay has appointed Jeane Hull and Paula Rogers to its board of directors.

Ms. Hull has over 35 years of operational leadership and engineering experience, most notably holding the positions of executive vice-president and chief technical officer of Peabody Energy Corp. and chief operating officer for Kennecott Utah Copper Mine, a subsidiary of Rio Tinto PLC.

Ms. Rogers has over 25 years of experience working for Canadian-based international public companies in the areas of corporate governance, treasury, mergers and acquisitions, financial reporting, and tax. Ms. Rogers has been an officer of several public companies, including vice-president and treasurer of Goldcorp Inc., and treasurer of Wheaton River Minerals Ltd.

The experience, skills and perspectives of each of the new directors will complement the composition of Hudbay's board and provide strengthened stewardship for the combined company.

Hudbay has also further bolstered the strength of its management team with the addition of Letitia Wong, who will lead integration, and Richard Klue as vice-president, engineering studies, in addition to benefiting from other members of the Copper Mountain team who are continuing with the combined company. As previously planned, Gil Clausen, Copper Mountain's president and chief executive officer, has retired and will transition to an advisory role for the combined company for the next year.

Strengthened position as a result of the transaction

The combination of Hudbay and Copper Mountain is on strategy with strong industrial logic that is expected to deliver 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 1 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 is expected to deliver meaningful growth to the combined company;
• Valuation rerating potential -- the strategic and financial benefits from the transaction is expected to position the combined company for a valuation rerating.

About Hudbay Minerals Inc.

Hudbay is a copper-focused mining company with three long-life operations and a world-class pipeline of copper growth projects in Tier 1 mining-friendly jurisdictions of Canada, Peru and the United States.

Hudbay's operating portfolio includes the Constancia mine in Cusco (Peru), the Snow Lake operations in Manitoba (Canada) and the Copper Mountain mine in British Columbia (Canada). Copper is the primary metal produced by the company, which is complemented by meaningful gold production. Hudbay's growth pipeline includes the Copper World project in Arizona, the Mason project in Nevada (United States), the Llaguen project in La Libertad (Peru), and several expansion and exploration opportunities near its existing operations.

The value Hudbay creates and the impact it has is embodied in its purpose statement: "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's mission is to create sustainable value and strong returns by leveraging its core strengths in community relations, focused exploration, mine development and efficient operations.

We seek Safe Harbor.