• Exploration results from drilling completed during the first half of 2021
• Identified three new deposits for a total of seven deposits at Copper World
• Confirmed the size and quality of the previously discovered Copper World, Broad Top Butte, Peach and Elgin deposits
• Expanded Hudbay’s private land package to support an operation entirely on private land
• Drill hole #186 intersected 263 feet of 1.11% copper starting from surface
• Drill hole #190 intersected 205 feet of 1.39% copper starting from surface
• Drill hole #191 intersected 404 feet of 1.50% copper starting from surface
• Drill hole #139 intersected 125 feet of 1.34% copper
• Drill hole #177 intersected 121 feet of 1.32% copper
• Drill hole #118 intersected 160 feet of 1.15% copper

Hudbay Minerals Inc. (TSXHBM) (NYSE: HBM) announced the intersection of additional high-grade copper sulphide and oxide mineralization at its Copper World project located on wholly-owned private land in Arizona. The Copper World project is located within seven kilometres of Hudbay’s Rosemont copper project and has mineralization located closer to surface than Rosemont. The results are from drilling completed between January and June 2021, following an initial program conducted in 2020 to confirm historical drilling in this past-producing copper region. The 2021 drilling has identified three new deposits, for a total of seven deposits at Copper World, covering a combined seven kilometers with mineralized occurrences.

“Our 2021 drill program at Copper World proved that the previously discovered deposits remained open along strike, and we are highly encouraged by the identification of three new deposits in the area,” said Peter Kukielski, Hudbay’s President and Chief Executive Officer. “Copper World is growing into an attractive copper development project in our organic pipeline, and we remain on track for an initial inferred resource estimate before the end of the year and a preliminary economic assessment in the first half of 2022.”

Located on Expanded Private Land Package

The Copper World deposits are located on private land parcels adjacent to the Rosemont deposit as shown in the plan view in Figure 1. To date, seven deposits have been identified with a combined strike length of over seven kilometres, representing a significant increase in mineralization compared to the results from the 2020 program. Hudbay recently increased its private land package to approximately 2,400 acres in the west, which together with patented mining claims, now totals approximately 4,500 acres to support an operation entirely on private land (please refer to Figure 2). The mineralization continues to occur at depths shallower than at Rosemont, as shown in Figure 3, indicating the possibility of lower strip ratios at Copper World. Hudbay is also drilling a 1,500-foot area along strike where there has been no previous drilling coverage between the newly discovered Bolsa deposit and the Rosemont deposit.

An updated three-dimensional visualization of the Copper World drill results can be found at the link below. This visual shows the location of the seven deposits, the drill holes from 2020 and 2021, the historical mine sites and historical drilling coverage (the results of which are under review and will be reported once the data is validated by Hudbay in accordance with NI 43-101), as well as new geophysical targets identified from the 2021 winter ground surveys.

https://vrify.com/decks/10520?auth=8dc679ba-5093-4b34-be74-afaa07e76efd

2021 Drill Program Discovers Three New Deposits and Confirms the Size and Quality of Existing Deposits

Hudbay’s 2021 drill program has consisted of condemnation, exploration and confirmation drilling over the company’s patented private land claims at Copper World. As of June 30, 2021, approximately 166 holes were completed totaling over 91,000 feet of drilling. As of August 31, 2021, Hudbay has received and validated the assay results for 130 of these holes and the results continue to exceed the company’s expectations. The program resulted in the discovery of three new deposits, including significant volumes of high-grade copper sulphide and oxide mineralization starting, in most cases, near surface or at shallow depth. These three new deposits are called Bolsa, South Limb and North Limb. The program also confirmed and increased the confidence in the size and quality of the Copper World, Broad Top Butte, Peach and Elgin deposits.

Bolsa Deposit

• Drill hole #186 intersected 263 feet of 1.11% copper starting at surface
• Drill hole #190 intersected 205 feet of 1.39% copper starting at surface
• Drill hole #191 intersected 404 feet of 1.50% copper starting at surface

The 2021 drilling completed to-date resulted in the discovery of the Bolsa deposit located between the Broad Top Butte and Rosemont deposits. The results confirmed the occurrence of significant shallow copper oxide and sulphide mineralization. This mineralization occurs in the footwall zone of the lower Paleozoic sequence composed of skarn in limestone and quartzite which is also found at Rosemont where this footwall zone hosts approximately 10% of the Rosemont mineral resource. A significant portion of the copper oxide mineralization in this zone occurs in rocks with lower carbonate content than is typical at Rosemont and is expected to be recoverable by proven low-cost leaching technology. Drill holes #186, #190 and #191 intersected very high-grade copper zones starting from surface with grades above 1.0%. Please refer to Figure 4 for a visual of the Bolsa deposit and select drill core.

There also remains the potential for continuity between the Bolsa discovery and the Rosemont deposit as highlighted by three new holes drilled on the western edge of Rosemont, which intersected high-grade copper mineralization similar to the mineralization intersected at Bolsa. Drill hole #177 intersected 833 feet of 0.40% copper, including 121 feet at 1.32% copper. Similarly, hole #194 intersected 602 feet at 0.53% copper. As shown in Figure 5, there remains a 1,500-foot gap in drilling coverage between these three holes and the Bolsa discovery, and Hudbay is actively developing additional access roads and drill pads to test this unexplored area.

South & North Limb Deposits

• Drill hole #72 intersected 105 feet of 0.69% copper
• Drill hole #132 intersected 77 feet of 0.88% copper
• Drill hole #139 intersected 125 feet of 1.34% copper

One focus of the 2021 drill program was to test an area between the Elgin and Copper World deposits surrounding a porphyry intrusive where several small mines operated in the past, but for which no historical drill results were available. Hudbay’s drill program intersected two new mineralized areas called the South and North Limbs, each occurring at or near surface in skarn at the contact between the porphyry intrusive and limestone units similar to the ones found elsewhere on the property. Please refer to Figure 6 for visuals of the deposits and drill core.

Broad Top Butte Deposit

• Drill hole #117 intersected 751 feet of 0.60% copper starting at surface, including 450 feet of 0.72% copper
• Drill hole #195 intersected 630 feet of 0.48% copper, including 220 feet of 0.77% copper starting at surface

The 2021 drilling at Broad Top Butte continued to intersect significant shallow copper oxide and sulphide mineralization in a quartz-monzonite porphyry intrusive and in surrounding skarns at the contact with carbonate units in a similar geological setting as Rosemont. Drill hole #195 intersected 630 feet of 0.48% copper starting at surface, including 220 feet of 0.77% copper in a massive sulphide zone with chalcopyrite and bornite in skarn. Please refer to Figure 7 for a visual of the deposit and select drill core.

Copper World Deposit

• Drill hole #70 intersected 270 feet of 0.69% copper, including 145 feet of 1.0% copper starting at surface
• Drill hole #73 intersected 230 feet of 0.62% copper, including 115 feet of 0.94% copper
• Drill hole #118 intersected 290 feet of 0.75% copper, including 160 feet of 1.15% copper

The 2021 drilling at the Copper World deposit confirmed the results from the previous program. Copper oxide mineralization continued to be found in the upper portion of the mineralized zones in the hanging wall of a regional fault that runs along the west side of the Rosemont, Bolsa and Broad Top Butte deposits known as the Backbone Fault. Drill hole #73 intersected 230 feet of 0.62% copper with 77% of the copper in oxides. This intersection included 115 feet of 0.94% copper with 76% of the copper in oxides. A visual can be found in Figure 8.

The ongoing drill program includes some additional isolated intercepts that have not yet been incorporated into the interpretation of the known deposits. For example, drill hole #106 is located near the old Leader mine and intersected 91 feet at 1.50% copper, which indicates a separate zone exists in the footwall of the Backbone Fault. Field mapping confirmed the potential extension of this mineralization to the southeast in a trend parallel to the Copper World deposit. Figure 9 shows the historical underground workings at the Leader mine and the location of hole 106.

Geophysical surveys have also identified several new targets north and south of Copper World. A large portion of Hudbay’s property in this prolific region has yet to be explored and provides the potential for further discoveries.

Peach and Elgin Deposits

• Drill hole #76 intersected 130 feet of 0.87% copper
• Drill hole #86 intersected 295 feet of 0.53% copper starting at surface

At the Peach and Elgin deposits, the 2021 drilling confirmed shallow mineralization at or near surface and slightly extended the known mineralization to the east. Drill hole #76 intersected 130 feet of 0.87% copper and hole #86 intersected 295 feet of 0.53% copper from surface.

On Track to Deliver Upcoming Catalysts at Copper World

Given the continued positive results from the exploration program at Copper World, the 2021 drill program was expanded from an original 70,000 feet of drilling to over 200,000 feet to be completed by the end of the year with four drill rigs continuing to operate at site. The company is testing the opportunity to use reverse circulation drilling to fast-track future infill drilling programs. This drilling is intended to delineate and upgrade the resource for the seven deposits, while focusing on bridging the gap between the Bolsa discovery and the area west of the Rosemont deposit. The drill program will also continue to explore prospective areas outside of the known deposits. Hudbay expects to publish an initial inferred mineral resource estimate for the seven deposits at Copper World before the end of 2021. These mineral resource estimates will form the basis for a preliminary economic assessment (“PEA”) expected to be released in the first half of 2022. Mineralogical studies and metallurgical testing programs are underway, and the preliminary results are expected to be incorporated into the PEA. The company continues to progress geotechnical and hydrogeological studies over the Copper World area.

The exploration budget for Copper World in 2021 is expected to total approximately $34 million, which increased from the original $10 million budget to fund the larger drill program and complete the various technical studies. Hudbay will also continue to examine future potential synergies with an operation at Rosemont.

Detailed Assay Results of 2021 Drill Program

Bolsa – Rosemont West

1. True widths are estimated based on drill angle and intercept geometry of mineralization. “n/a” indicates insufficient knowledge of the geometry of the mineralization to estimate true width at this stage.
2. All copper, molybdenum and silver values are uncut.
3. No specific gravity data is available, so assay results are length weighted.
4. CuSS shows the average grade of soluble copper in sulfuric acid.

South Limb – North Limb

1. True widths are estimated based on drill angle and intercept geometry of mineralization.
2. All copper, molybdenum and silver values are uncut.
3. No specific gravity data is available, so assay results are length weighted.
4. CuSS shows the average grade of soluble copper in sulfuric acid.

Broad Top Butte

1. True widths are estimated based on drill angle and intercept geometry of mineralization. “n/a” indicates insufficient knowledge of the geometry of the mineralization to estimate true width at this stage.
2. All copper, molybdenum and silver values are uncut.
3. No specific gravity data is available, so assay results are length weighted.
4. CuSS shows the average grade of soluble copper in sulfuric acid.

Copper World

1. True widths are estimated based on drill angle and intercept geometry of mineralization.
2. All copper, molybdenum and silver values are uncut.
3. No specific gravity data is available, so assay results are length weighted.
4. CuSS shows the average grade of soluble copper in sulfuric acid.

Peach – Elgin

1. True widths are estimated based on drill angle and intercept geometry of mineralization.
2. All copper, molybdenum and silver values are uncut.
3. No specific gravity data is available, so assay results are length weighted.
4. CuSS shows the average grade of soluble copper in sulfuric acid.

Qualified Person and NI 43-101

The scientific and technical information contained in or incorporated by reference into this news release has been prepared under the supervision of Olivier Tavchandjian, P. Geo., Hudbay’s Vice President, Exploration and Geology. Mr. Tavchandjian is a “Qualified Person” for purposes of National Instrument 43-101 — Standards of Disclosure for Mineral Projects.

Mr. Tavchandjian has verified the exploration data disclosed in this news release, including sampling, analytical, and test data underlying the information or opinions expressed herein. The data verification and quality assurance / quality control (QA/QC) measures that were used as part of the Copper World drill program are summarized below:

• Drill core was removed from the core tube by drilling contractors and placed in labelled core boxes. Core was logged by geologist, photographed, measured for conductivity, and tagged with sample tags. Core was cut in half and placed in labeled sample bags with the sample tags and transported to the sample preparation lab of Skyline and ALS Chemex in Tucson, Arizona and of SGS in Vancouver, Canada by courier in locked trucks.
• Samples were prepared and assayed following standard analytical protocols at the Skyline and ALS Chemex laboratories (AZ) and at the SGS laboratory in Vancouver (BC). Samples were dried, crushed to 70% -passing 2mm (10 mesh), then riffle split and pulverized until 85% passing 75μm (-200 mesh). Analyses were carried at Skyline laboratory in Tucson and ALS Chemex and SGS laboratories in Vancouver using a combination of Inductively Coupled Plasma Mass Spectrometry (ICP-MS) and Inductively Coupled Plasma Emission Spectroscopy (ICP-ES), following multi acid digestion (Methods TE-5, ME-MS61 and GE_ICM40Q12, respectively) to achieve near total dissolution. Gold was analyzed by fire assay with AAS finish (Methods FA-01, FAU-AA23, GE_FAA30V5). Samples with concentration of Cu>8000 ppm and Mo>1000 ppm were reanalyzed multi acid (Methods SEA-Cu/Mo/CuT, Cu/Mo-OG62, Cu/Mo-GO_ICP42Q100) for base metal sulphide and precious metal ores. Non-sulphide Cu (Soluble Cu) was analyzed by sulphuric acid leach (Methods CuAs-SEQ, Cu-AA05, GC SQL01D) with AAS finish. QA/QC included the insertion of 5% of samples as blanks, 5% as standards (from 4 certified reference materials) and 5% as pulp duplicates.
• Failure rates were nominal in all cases and no significant QA/QC issue was identified.

Further details on the drill holes reported in this news release, including the location, azimuth, and dip of the drill holes and the depth of the sample intervals, can be found in the section titled “Supplemental Drill Hole Information” at the end of this news release.

About Hudbay

Hudbay is a diversified mining company primarily producing copper concentrate (containing copper, gold and silver) and zinc metal. Directly and through its subsidiaries, Hudbay owns three polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan (Canada) and Cusco (Peru), and copper projects in Arizona and Nevada (United States). 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. Hudbay’s vision is to be a responsible, top-tier operator of long-life, low-cost mines in the Americas. Hudbay’s mission is to create sustainable value through the acquisition, development and operation of high-quality, long-life deposits with exploration potential in jurisdictions that support responsible mining, and to see the regions and communities in which the company operates benefit from its presence.

Figure 1: Plan View of Copper World is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/bb60f3ad-159d-4390-b6d7-8241c4bc25c4

Hudbay has identified a total of seven deposits at the Copper World project through drilling completed in 2020 and 2021. The 2020 drill program defined the Copper World, Broad Top Butte, Peach and Elgin Deposits. The 2021 drill program increased the confidence in the size and quality of these known deposits and identified three new deposits called Bolsa, North Limb and South Limb, which indicates seven kilometres of continuous mineralization at the Copper World project.

Figure 2: Expanded Private Land Package to Support an Operation Entirely on Private Land is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/9a531899-d0dd-41bc-873b-968f0634b6d0

Hudbay’s private land package was recently increased to approximately 2,400 acres in the west and now totals approximately 4,500 acres with the inclusion of patented mining claims.

Figure 3: Copper World Located Closer to Surface than Rosemont is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/669c320d-64a1-4664-97d1-4d573412976b

The mineralization at the Copper World deposits begins closer to surface than Rosemont, as shown by the 0.1% copper grade shells below, which is expected to lead to a significantly lower strip ratio during mining.

Figure 4: Bolsa Drill Core is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/f46dcd03-e91f-41ab-b6ab-60d15a42adb6

Bolsa drill core from holes #186 and #191, which intersected 263 feet at 1.11% copper and 404 feet at 1.50% copper, respectively.

Figure 5: Potential for Continuity between Rosemont and Bolsa is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/83f7b4cf-328d-47c3-978b-624f736e15a0

There remains a 1,500-foot area between Rosemont and Bolsa that has not yet been drilled. Three new holes drilled on the western edge of Rosemont intersected high-grade copper mineralization similar to the mineralization intersected at Bolsa, indicating the potential for continuity between the two deposits.

Figure 6: South and North Limb Drill Core is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/c43bd932-af4f-4c06-83d1-f2c6310218bb

South and North Limb drill core from holes #72, #132 and #139, which intersected 105 feet at 0.69% copper, 77 feet at 0.88% copper and 125 feet at 1.34% copper, respectively.

Figure 7: Broad Top Butte Drill Core is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/cde5b6be-d2fc-4535-b806-56179ef410e1

Broad Top Butte drill core from holes #117 and #195, which intersected 751 feet at 0.60% copper and 630 feet at 0.48% copper, respectively.

Figure 8: Copper World Drill Core is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/eb126a62-7e4f-496b-9165-869f53ed8954

Copper World drill core from holes #70 and #73, which intersected 270 feet at 0.69% copper and 230 feet at 0.62% copper, respectively.

Figure 9: New Zone near the Copper World Deposit is available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/c2a79fec-c5c2-437b-8cf2-f0f4da8309e2

Drill hole #106 is located near the old Leader mine and represents a separate zone in the footwall of the Copper World deposit.

Supplemental Drill Hole Information