Hudbay Announces Closing of $600 Million Strategic Investment from Mitsubishi Corporation for 30% Joint Venture Interest in Copper World

Press Release

TORONTO, Jan. 12, 2026 — Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, NYSE: HBM) is pleased to announce the closing of the previously announced strategic investment from Mitsubishi Corporation (“Mitsubishi”) for a 30% joint venture interest (the “JV Transaction”) in Copper World LLC, which owns the fully-permitted Copper World project in Arizona (“Copper World”). On closing, Mitsubishi contributed approximately $420 million of cash to Copper World LLC, and it will contribute an additional $180 million in cash to complete its initial investment within 18 months in accordance with the terms of the definitive subscription agreement, as further described in Hudbay’s August 13, 2025 news release. Mitsubishi will also fund its pro-rata 30% share of future equity capital contributions required to construct Copper World. All dollar amounts are in U.S. dollars, unless otherwise noted.

“Closing of the JV Transaction with Mitsubishi marks the beginning of a long-term strategic partnership, an exciting new chapter for Copper World and an important growth milestone for Hudbay,” said Peter Kukielski, Hudbay’s President and Chief Executive Officer. “Thanks to the collaborative efforts between the Hudbay and Mitsubishi teams, we are pleased to welcome our new Copper World joint venture partner. This strategic partnership will leverage our organizations’ complementary strengths to deliver this world-class project that will increase Hudbay’s consolidated copper production by more than 50% and create significant value for all of our stakeholders. We are ideally positioned to build one of the next major copper mines in the U.S. and produce ‘Made in America’ copper for the U.S. critical minerals supply chain.”

Hudbay Continues to Prudently Advance Copper World Towards a Sanction Decision in 2026

• Realized Accretive JV Transaction – The successful closing of the highly accretive $600 million JV Transaction represents a significant de-risking milestone in advancing Copper World and further validates the premium long-term value of this world-class asset. The $420 million of proceeds from Mitsubishi will be used to directly fund the remaining definitive feasibility study (“DFS”) costs and pre-sanction costs in addition to the initial project development costs for Copper World. Mitsubishi will contribute an additional $180 million within 18 months to complete its initial investment and will also fund its pro-rata 30% share of future equity capital contributions. The JV Transaction increases the project IRR to Hudbay to approximately 90% based on pre-feasibility study (“PFS”) estimatesⁱ.
• Secured Premier Strategic Joint Venture Partner – Mitsubishi is one of the largest Japanese trading houses with a global mining presence and a significant U.S.-based business. Mitsubishi is the partner of choice with investments in a world-class portfolio of large and high-quality copper assets, including five of the top twenty copper mines globally by 2024 production. This partnership validates the attractive long-term value of Copper World as a world-class copper asset and endorses the strong technical capabilities of Hudbay. It also represents the beginning of a long-term strategic partnership, and the parties are identifying other opportunities for collaboration to advance their respective copper growth strategies.

• Achieved Key Elements of Hudbay’s Three Prerequisites (3-P) Plan – Hudbay has achieved the final key elements of its prudent 3-P financial strategy for the development of Copper World with the closing of the JV Transaction and the achievement of stated balance sheet targets. Before accounting for proceeds from the JV Transaction, Hudbay has already achieved more than $600 million in cash and cash equivalents and reduced its net debt to adjusted EBITDA ratio to 0.5x as of September 30, 2025, far exceeding the stated balance sheet targets. The Mitsubishi initial investment and its future pro-rata equity capital contributions, together with the Wheaton Precious Metals Corp. streamⁱⁱ, provide significant financial flexibility by reducing Hudbay’s estimated share of the remaining capital contributions to approximately $200 million based on PFS estimates and deferring Hudbay’s first capital contribution to 2028 at the earliest.
• Feasibility Study and Detailed Engineering Underway – Feasibility activities for Copper World are well underway with expected completion of the DFS in mid-2026. Hudbay has continued to execute detailed engineering work and other de-risking activities, in preparation for a Copper World sanction decision expected in 2026.

For further information, please contact:
Candace Brûlé
Senior Vice President, Capital Markets & Corporate Affairs
(416) 362-8181
investor.relations@hudbay.com

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