Mr. Peter Kukielski reports

HUDBAY ANNOUNCES POTENTIAL FOR MINE LIFE EXTENSION IN SNOW LAKE WITH THE DISCOVERY OF NEW MINERALIZED ZONES NEAR LALOR AND SIGNIFICANT REGIONAL LAND CONSOLIDATION

Hudbay Minerals Inc. has released positive results from the company's 2023 winter drill program near its Lalor mine in Snow Lake, Man., and has significantly consolidated land in the Snow Lake region through several strategic transactions. The agreements with multiple landholders will increase Hudbay's holdings in the Snow Lake region by more than 250 per cent to a total of 2,690 square kilometres. The drilling results and the regional land acquisitions provide the potential for mine life extension at Hudbay's Snow Lake operations beyond 2038.

Key highlights:

• Stepout drilling approximately 500 metres northwest of Lalor has intersected a series of base metal and copper-gold zones, including a high-grade copper-gold-silver zone:
  • Recent borehole electromagnetic surveys have identified multiple conductive horizons with target generation and planning for future drilling campaigns in progress.
• Down plunge drilling from Lalor indicates the alteration zone, hosting mineralization currently being mined, continues for at least two kilometres to the north.
• Acquisition of the Cook Lake properties in Snow Lake provides additional potential for a new discovery. The Cook Lake properties are untested by modern deep geophysics. Historical drilling intersected base metal and gold mineralization, and the drill programs were limited to an average depth of only 275 metres, which is a fraction of Lalor's current known depth of approximately 600 to 1,500 metres.
• Incorporating the recently announced agreement to acquire Rockcliff Metals Corp., Hudbay's land position within trucking distance of its Snow Lake processing facilities will expand by more than 250 per cent.
• These positive exploration results and land consolidation initiatives provide the potential to deliver increases in near-term production, mine life extension and substantial long-term value creation from Hudbay's Snow Lake operations.

Peter Kukielski, the company's president and chief executive officer, commented: "Since the start-up of Lalor in 2014, much of our focus has been on in-mine resource conversion, where we have had tremendous success adding over two million ounces of additional high-grade gold reserves. In our first stepout and down plunge drill program since the initial discovery of the gold and copper-gold lenses at Lalor more than a decade ago, the results demonstrate the potential to replicate our exploration success through the discovery of additional high-grade zones that could enhance near-term production and further extend mine life. We are also consolidating our land package in the prospective Snow Lake greenstone belt, where we have more than tripled our land holdings to provide further opportunity for the discovery of new deposits to unlock meaningful long-term value at our Snow Lake operations."

Lalor new mineralized zones -- near-term production growth potential

Hudbay's 2023 winter drill program in Snow Lake included exploration near the Lalor mine with one drill rig testing a geophysical anomaly located northwest of Lalor within 500 metres of existing underground infrastructure. The geophysical anomaly was initially tested in 2022 with the intersection of significant widths of silver mineralization, as seen in hole LX0188, which was drilled from the closest underground platform at an unfavourable angle, and hole CH2206. Silver is the most mobile metal in a volcanogenic massive sulphide system and can indicate the immediate proximity of more significant base metal mineralization when encountered in significant quantity in isolation from the other metals. In 2023, four follow-up drill holes were completed with all holes intersecting an alteration zone that is known to host the Lalor mineralization. Holes CH2202, CH2302 and CH2303 also intersected several sulphide horizons with both zinc and copper-gold-silver mineralization. Full details on the assays received to date can be found in the attached table, and highlights include the following:

• Hole CH2302 intersected three mineralized zones, including 7.0 metres of 3.06 per cent zinc and 15.1 grams per tonne silver; 3.5 metres of 3.81 per cent copper, 3.75 grams per tonne gold and 104.5 grams per tonne silver; and 7.5 metres of 3.87 per cent zinc and 7.5 grams per tonne silver.
• Hole LX0188 intersected 13.0 metres of 13.0 grams per tonne silver.
• Hole CH2206 intersected 9.9 metres of 18.9 grams per tonne silver and 1.49 per cent zinc, and 3.8 metres of 9.7 grams per tonne silver and 4.30 per cent zinc.
• Hole CH2303 intersected 9.7 metres of 106 grams per tonne silver and 6.4 metres of 11.7 grams per tonne silver and 2.7 per cent zinc.

In addition, recent borehole electromagnetic surveys have identified multiple conductive horizons, and Hudbay is in the process of generating targets and a plan for the next drilling campaign. Given the close proximity of these intersections to the existing Lalor underground infrastructure, the mineralization in this area has the potential to further enhance the near-term mine plan for Lalor pending additional drilling and positive feasibility studies.

Lalor down plunge drilling -- long-term mine life extension potential

Hudbay's 2023 winter drill program in Snow Lake also included four drill rigs testing the down plunge copper-gold extensions of the Lalor deposit in the first drilling in the deeper zones at Lalor since the initial discovery of the copper-gold zones in 2009 and 2010. This initial campaign consisted of eight widely spaced drill holes over a distance of two kilometres. Seven of the drill holes reached their planned minimum depth of 1,500 metres prior to the spring thaw that necessitated an early end of the program. All holes intersected the zone of strong alteration known to host the Lalor mineralization and have shown many occurrences of disseminated copper sulphides indicating the potential close proximity of one or more higher-grade copper-gold feeder zones similar to Lens 27 currently in production at Lalor. Furthermore, two of the holes have shown better mineral endowment with three intercepts of a minimum of five metres of copper mineralization. The lack of gold associated with the copper mineralization suggests that drilling has yet to intersect the core of the mineralized system. These initial results from widely spaced drilling are a very encouraging indication that the rocks hosting the rich copper-gold mineralization at Lalor continue down plunge as predicted by Hudbay's geological models.

Cook Lake properties -- potential for another Snow Lake anchor deposit

In late June, 2023, Hudbay completed the acquisition of the Cook Lake properties from an arm's-length third party. The Cook Lake properties are located within 10 kilometres and along the same regional trend as Hudbay's Lalor mine, and have the potential to host a new discovery at depth. The properties include the Cook Lake North and South properties, which are within 30 kilometres of Hudbay's Stall and New Britannia processing facilities.

Hudbay has received data regarding approximately 60,000 metres of historical drilling that was completed on the Cook Lake properties between 1971 and 2012, with an average depth of only 275 metres, which is a fraction of the depth of Lalor's current known mineralization of approximately 600 to 1,500 metres. The historical drill holes appear to have intersected polymetallic mineralization, including a three-metre intersection of typical base metal mineralization of the Snow Lake region at 5.1 per cent copper, 3.7 per cent zinc, 1.0 grams per tonne gold and 20.7 grams per tonne silver, and a 3.3-metre intersection of typical copper-gold feeder mineralization at 3.0 per cent copper, 2.3 grams per tonne gold, 8.9 grams per tonne silver and 0.8 per cent zinc. Although the historical data have not been validated by a qualified person, the mineralization on the Cook Lake properties indicates that there is the potential for new deposits on the same favourable mineralized horizons as many known deposits in the area, including the Lalor, 1901 and Chisel deposits. The Cook Lake properties are untested by modern deep geophysics, which was the discovery method for the Lalor mine.

Rockcliff acquisition -- regional land consolidation with satellite potential

On June 19, 2023, as previously announced, Hudbay entered into a definitive agreement with Rockcliff, pursuant to which Hudbay agreed to acquire all of the issued and outstanding shares of Rockcliff that it does not already own pursuant to a court-approved plan of arrangement. Rockcliff is one of the largest landholders in the Snow Lake area with more than 1,800 square kilometres across all its properties. The completion of the arrangement will consolidate Hudbay's ownership of the Talbot deposit and provide the company with additional exploration properties in the vicinity of its Stall and New Britannia mills. These additional properties include the land adjacent to Hudbay's Pen II deposit, which is a low-tonnage and high-grade zinc deposit that starts from surface and is located approximately 12 kilometres by road from the Lalor mine. Rockcliff intersected mineralization downdip from Hudbay's Pen deposit and identified a deep geophysical conductive plate.

Completion of the arrangement is contingent upon court approval from the Ontario Superior Court of Justice (commercial list), shareholder approval of at least two-thirds of the votes cast by Rockcliff shareholders at a special meeting scheduled to be held on Aug. 31, 2023, and other customary conditions and stock exchange approvals. The arrangement is expected to close in the third quarter of 2023.

Next steps

Consolidating these properties in the Snow Lake area will provide Hudbay with a significant land package within trucking distance of the company's existing processing infrastructure. Hudbay intends to explore these claims in hopes of finding a new anchor deposit to maximize and extend the life of Hudbay's Snow Lake operations beyond 2038.

The company's 2024 exploration plans include regional geophysical surveys to be conducted on the newly consolidated land package in Snow Lake. The company also expects to refine targets for its 2024 winter drilling campaign to the northwest and down plunge from Lalor using the results from geophysical borehole surveys.

A qualified person has not independently verified these historical data or the quality assurance and quality control program that was applied during the execution of this drill program, and, as such, Hudbay cautions that this information should not be relied upon by investors.

Qualified person and National Instrument 43-101

The technical and scientific information in this news release related to the company's Lalor mine has been approved by Olivier Tavchandjian, PGeo, senior vice-president, exploration and technical services. Mr. Tavchandjian is a qualified person pursuant to National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

For a description of the key assumptions and methods used to estimate mineral reserves and resources at Hudbay's material properties, as well as data verification procedures and a general discussion of the extent to which the estimates of scientific and technical information may be affected by any known environmental, permitting, legal title, taxation, socio-political, marketing or other relevant factors, please see the technical reports for the company's material properties as filed by Hudbay on SEDAR.

About Hudbay Minerals Inc.

Hudbay (Toronto Stock Exchange and New York Stock Exchange: HBM) 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.

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