Mr. Peter Kukielski reports

HUDBAY AND MARUBENI ESTABLISH FRAMEWORK FOR FLIN FLON EXPLORATION PARTNERSHIP

Hudbay Minerals Inc. has signed a memorandum of understanding (MOU) with Marubeni Corp. that establishes the framework for a multiyear exploration partnership focused on the discovery of new deposits within trucking distance of Hudbay's existing processing facilities in Flin Flon, Man.

"Signing this MOU is the beginning of what we hope will be a long-term relationship between Hudbay and Marubeni to unlock value in the Flin Flon region," said Peter Kukielski, Hudbay's president and chief executive officer. "This exploration partnership would allow us to couple our operational and exploration expertise with Marubeni's balance sheet strength to test our large Flin Flon land package and potentially revive our dormant Flin Flon processing facilities. We have discovered and operated 29 mines in Hudbay's nearly 100-year history in Manitoba and we have the potential to continue that success with this renewed focus on exploration in Flin Flon."

Masafumi Ichigetsu, general manager, copper mining department, Marubeni, commented: "This exploration partnership would give us access to the Flin Flon greenstone belt, one of the most prospective base metal VMS [volcanogenic massive sulphide] camps in the world. We see tremendous opportunity in this camp where we have the ability to partner with Hudbay, and benefit from their technical expertise and proven track record of successful discovery, development and operation of many mines in the region. We are eager to begin building a long-lasting and prosperous partnership with Hudbay that will undoubtedly yield exceptional results."

In connection with the MOU, Hudbay and Marubeni have agreed to negotiate the terms of a definitive agreement to govern the relationship between the parties and the Flin Flon properties that would form the subject of the exploration partnership. It is currently contemplated that Marubeni would be required to finance approximately $10-million to $15-million of exploration expenditures on the project properties, and that Hudbay will act as operator and carry out the exploration activities. The definitive agreement will provide for the allocation of these expenditures among the project properties.

The MOU also provides a framework for a future joint venture between the parties if the exploration efforts are successful in discovering new deposits in the Flin Flon region. Upon satisfaction of certain earn-in obligations, it is expected that Marubeni would have the option to acquire a substantial minority equity interest in the projects, allowing the parties to jointly pursue the development of the projects. The final structure of a joint venture between the parties would be determined by the terms of a joint venture agreement.

About Marubeni Corp.

Marubeni is a major Japanese integrated trading and investment business conglomerate that handles products and provides services in a broad range of business activities across wide-ranging fields. Marubeni and its consolidated subsidiaries use its broad business networks, both within Japan and overseas, to conduct importing and exporting (including third country trading), as well as domestic business, encompassing a diverse range of business activities across wide-ranging fields, including lifestyle, IT (information technology) solutions, food, agri business, forest products, chemicals, metals and mineral resources, energy, power, infrastructure project, aerospace and ship, finance, leasing and real estate business, construction, industrial machinery and mobility, next-generation business development, and next-generation corporate development. Additionally, the Marubeni Group offers a variety of services, makes internal and external investments, and is involved in resource development throughout all of the above industries.

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 are 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.