About Hudbay Minerals

Hudbay Minerals Inc. operates as a diversified mining company. The company’s principal products are copper concentrate, which contains payable copper, gold and silver, zinc concentrate, refined zinc metal, gold and silver doré and molybdenum concentrate. The company has long-life assets in North and South America. The company’s Constancia operations in Cusco (Peru) produce copper with gold, silver and molybdenum by-products. The company’s Snow Lake operations in Manitoba (Canada) produce gold with copper, zinc and silver by-products. The company has an organic pipeline that includes the Copper World project in Arizona and the Mason project in Nevada (United States). In 2022, the company produced 104,173 tonnes of contained copper in concentrate (89,395 tonnes in Peru and 14,778 tonnes in Manitoba), 219,700 ounces of gold (58,229 ounces in Peru and 161,471 ounces in Manitoba), 3,161,294 ounces of silver (2,309,352 in Peru and 851,942 in Manitoba), 55,381 tonnes of contained zinc in concentrate (all produced in Manitoba), and 1,377 tonnes of contained molybdenum concentrate (all produced in Peru). In 2022, the company’s copper concentrate production was sold through a mix of benchmark related sales, spot sales, and fixed treatment charge sales. Manitoba copper concentrate production is sold for delivery to a smelter in Canada, while Peru copper concentrate production is primarily sold for delivery to smelters in Asia. The company has three material mineral projects, including its 100% owned Constancia mine, an open pit copper mine in Peru, which achieved commercial production in the second quarter of 2015; its 100% owned Lalor mine, an underground gold, zinc and copper mine near Snow Lake, Manitoba, which achieved commercial production in the third quarter of 2014; and its 100% owned Copper World project, a copper development project in Pima County, Arizona. In addition to its mining properties in northern Manitoba, the company owns and operates a portfolio of processing facilities, including its Stall concentrator, which produces zinc and copper concentrates, and its recently refurbished New Britannia mill, which produces copper concentrate and gold/silver doré. The company’s Flin Flon concentrator, which produced zinc and copper concentrates, closed in 2022 and is on care and maintenance. The company also owns a number of properties in the Snow Lake region within trucking distance of the Stall and New Britannia mills that have the potential to provide additional feed for its Snow Lake operations. In Peru, the company owns and operates a processing facility at Constancia, which produces copper and molybdenum concentrates from its Constancia and Pampacancha deposits. The company also owns a large, contiguous block of mineral rights within trucking distance of the Constancia processing facility, including the past producing Caballito property and the highly prospective Maria Reyna property. Following the execution of a surface rights exploration agreement with the community of Uchucarcco in August 2022, the company has commenced early exploration activities at the Maria Reyna and Caballito properties. The company also owns a 100% interest in the Llaguen project, a greenfield project located close to existing infrastructure in Northern Peru for which initial mineral resource estimates were published in 2022. Additionally, in Nevada, the company owns a 100% interest in the Mason project, an early-stage copper project with a substantial mineral resource and a robust PEA. Strategy The company evaluates growth opportunities and continue to consider the acquisition and disposition of exploration, development and operating properties and other mineral assets to achieve its strategy. The company’s 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. Material Mineral Projects Constancia Constancia is the company’s 100% owned copper mine in Peru. It is located in the Province of Chumbivilcas in southern Peru and consists of the Constancia and Pampacancha deposits. The Constancia mine reached commercial production in the second quarter of 2015 and has an expected mine life of 16 years. On February 18, 2020, the community of Chilloroya formally approved a surface rights agreement with Hudbay for the Pampacancha satellite deposit located near the Constancia mine in Peru. Throughout the remainder of 2020, the company focuses on negotiating individual agreements with those members of the Chilloroya community who made use of the Pampacancha lands and advancing the consultation process between the government and the Chilloroya community as per Peru's Consulta Previa law. The Consulta Previa process was completed at the end of 2020, and in early January 2021, the Peruvian regulators granted the company the final mining permit for the development and operation of Pampacancha. Pampacancha achieved first production in April 2021, following the completion of all land user agreements. Due to its short ramp-up period, Pampacancha also achieved commercial production in April 2021. On March 29, 2021, the company released an updated mine plan for Constancia that included an increase in copper and gold production between 2022 and 2024 due to the higher grades from the Pampacancha deposit and also included higher-grade reserves from the Constancia Norte pit extension. During 2021, Hudbay also completed an internal scoping study which indicated the potential for economic extraction of an inferred mineral resource of 6.5 million tonnes of 1.2% copper in two high grade skarn lenses located below the open pit in the Constancia Norte area. The company also controls a large, contiguous block of mineral rights with the potential to host mineral deposits within trucking distance of the Constancia processing facility, including the past producing Caballito property and the highly prospective Maria Reyna property. The company commenced early exploration activities and ground geophysical surveys at the Maria Reyna and Caballito properties after completing a surface rights exploration agreement with the community of Uchucarcco in August 2022. 100% of the payable silver and 50% of the payable gold at Constancia is subject to a precious metals stream agreement with Wheaton Precious Metals (Wheaton). Lalor The company’s 100% owned Lalor mine is a gold, zinc and copper mine near the town of Snow Lake in the province of Manitoba. Lalor is located approximately 208 kilometres by road east of Flin Flon, Manitoba. The Lalor mine achieved commercial production in 2014 and the production rate has steadily ramped-up since that time. Copper World The company’s 100% owned Copper World project is a copper development project located in Pima County, Arizona, approximately 50 kilometres southeast of Tucson. The Copper World PEA contemplates four planned open pit mines with anticipated processing infrastructure, such as milling, leaching, solvent extraction and electrowinning of both copper sulfide and oxides to produce and sell copper cathodes, molybdenum concentrate, and silver and gold in dore, with sulfuric acid as a by-product. The Copper World project includes seven new deposits discovered in 2021, together with the East deposit (formerly known as the Rosemont deposit). The new deposits were defined after the completion of an expanded drill program following a successful initial drill program in 2020. A new resource model was completed for the Copper World PEA which included a revised resource model for the East deposit that applied resource classification criteria calibrated on historical performance at Constancia and controlled grade over-smoothing, and incorporated the newly discovered deposits. Hudbay's ownership in the Copper World project is subject to a precious metals stream agreement with Wheaton Precious Metals. Other Assets Mason Project The Mason project is a large greenfield copper deposit located in the historic Yerington District of Nevada and is one of the largest undeveloped copper porphyry deposits in North America. The Mason project's measured and indicated mineral resources are comparable in size to Constancia. The company views the Mason project as a long-term future development asset as part of its pipeline of high-quality copper growth opportunities. Llaguen Project The Llaguen project is 100% owned by Hudbay and is located near the city of Trujillo, the third largest city in Peru. The Llaguen property is at moderate altitude and in close proximity to existing infrastructure, water and power supply, including the port of Salaverry located 62 kilometres away and the Trujillo Nueva electric substation located 40 kilometres away. Hudbay's tenement comprises 12 mining concessions totaling 8,900 hectares and the mineralization is fully contained within these 100%-controlled tenements. There are no Indigenous communities in the area, and therefore, community agreements are not subject to Peru's Consulta Previa (prior consultation) process. Snow Lake Regional Deposits The mineral reserves and mineral resources estimates at Hudbay's satellite deposits in the Snow Lake region, including the copper-gold WIM deposit, the gold-rich 3 Zone and the zinc-rich Watts, Pen II and Talbot deposits, have the potential to provide future feed for the Stall and New Britannia processing facilities and further extend the life of the Snow Lake operations. 777 mine On June 17, 2022, mining activities at Hudbay's 777 mine in Flin Flon, Manitoba concluded after the reserves were depleted following 18 years of steady production. The 777 deposit was a large and rich orebody and for many years was the flagship mine of Hudbay's Manitoba operations. The mine commenced production in 2004 with an initial ten-year mine life, operated steadily and successfully expanded reserves by an additional eight years. Strategic Investments As of December 31, 2022, the company held minority equity positions in 9 junior exploration companies. The company’s early-stage opportunity pipeline consists of minority interests in junior exploration companies with projects in Canada, the United States and Peru. The company is continuing to evaluate new projects and potential investments to add to its portfolio and will seek to dispose of investments when the underlying projects are no longer consistent with its strategy.