Hudbay Provides Annual Reserve and Resource Update

TORONTO, ONTARIO – March 26, 2014 – HudBay Minerals Inc. (“Hudbay” or the “company”) (TSX:HBM)(NYSE:HBM) today provided its annual reserve and resource update. Copper equivalent proven and probable mineral reserves increased by 7.4% to approximately 3.9 million tonnes, including approximately 4.4 million ounces of precious metal equivalent(2) proven and probable reserves, which increased by 8.9% from 2013. In addition, Hudbay has approximately 1.3 million tonnes of copper equivalent measured and indicated resources(3) and approximately 1.9 million tonnes of copper equivalent inferred resources, including approximately 1.2 million ounces of precious metal equivalent measured and indicated resources and approximately 2.6 million ounces of precious metal equivalent inferred resources.

“Hudbay’s reserve growth was largely driven by our efforts to optimize Constancia,” said David Garofalo, president and chief executive officer. “As we look ahead, our exploration program in 2014 will allow us to drill newly discovered geophysical anomalies on our large land position around Constancia and to explore Lalor from the underground exploration drift for the first time.”

An expected tailings facility expansion allowed for the conversion of a portion of the mineral resources at Constancia into reserves, resulting in a mine life extension to 22 years from 16 years at Constancia. The increase in reserves was also impacted by further mine plan optimization and revised commodity price and cost assumptions.

(1)	Overall copper equivalent reserves and resources and precious metal equivalent reserves and resources are in-situ contained metal based on estimated reserves and resources at Hudbay’s Constancia, Pampacancha, 777, Lalor, Reed, Tom and Jason and Lost properties. Copper equivalent metal for 2014 was calculated using a copper price of US$3.00 per pound, zinc price of US$1.00 per pound, gold price of US$1,250.00 per ounce, silver price of US$25.00 per ounce, lead price of US$0.90 per pound and molybdenum price of US$13.50 per pound. Copper equivalent metal for 2013 was calculated using a copper price of US$2.75 per pound, zinc price of US$0.95 per pound, gold price of US$1,250.00 per ounce, silver price of US$25.00 per ounce, lead price of US$0.90 per pound and molybdenum price of US$14.00 per pound.
(2)	For 2014 and 2013, precious metal equivalent reserves and resources include gold and silver only, expressed in ounces of gold with silver converted to gold at a ratio of 50:1.
(3)	All mineral resources referred to in this news release are exclusive of and additional to stated mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Read more: http://www.hudbayminerals.com/English/Media-Centre/News-Releases/News-Release-Details/2014/Hudbay-Provides-Annual-Reserve-and-Resource-Update/default.aspx

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