Hudbay Minerals Inc. press release

Hudbay Provides Annual Reserve and Resource Update with Mine Life Extensions and Improved Three-Year Production Outlook

2026-03-27

TSX - Toronto Stock Exchange · Copper · Molybdenum · Gold · Silver · Sulfur · Zinc · Canada · Resource Estimate

TORONTO, March 27, 2026 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, NYSE: HBM)today released its annual mineral reserve and resource update and issued new three-year production guidance. All amounts are in U.S. dollars, unless otherwise noted.

Affirmed 2026 production guidance and issued new 2027 and 2028 production guidance, demonstrating increased copper and strong gold production from Hudbay’s stable operating platform with three long-life operations in tier-one mining jurisdictions in the Americas. Consolidated copper production is expected to average 147,000itonnes per year over the next three years, an increase of 24% from 2025 production. Consolidated copper production is expected to average 159,000itonnes per year in 2027 and 2028, representing a 28% increase from expected 2026 production. This reflects the benefits from the expected completion of the optimization efforts at Copper Mountain and mill throughput improvement projects at Constancia in 2026. Strong complementary gold exposure with consolidated gold production expected to average 243,000iounces per year over the next three years, reflecting continued strong production in Manitoba and the expected contribution from New Ingerbelle in British Columbia starting in 2028. Constancia’s expected mine life extends to 2040, reflecting higher mill throughput rates contributing to a 9% increase in expected average annual copper production to 90,000itonnes per year in 2027 and 2028 from 2026 levels. Snow Lake’s expected mine life extended by four years to 2041, with average annual gold production of 190,000iounces expected over the next three years from continued strong mill throughput rates at New Britannia. Copper Mountain’s expected mine life extended by two years to 2045, with significantly higher copper and gold production averaging 57,500itonnes and 38,500iounces, respectively, per year over 2027 and 2028, an increase of 92% and 43%, respectively, from 2026 levels. This increase reflects higher mill throughput, higher grades from completion of the accelerated stripping program in late 2026 and the expected contribution from New Ingerbelle starting in 2028. Large exploration program in Snow Lake continues to execute a threefold strategy focused on near-mine exploration to increase near-term production and mineral reserves, testing regional satellite deposits for additional ore feed to utilize available capacity at the Stall mill, and exploring the large land package for a potential new anchor deposit to meaningfully extend mine life. Definitive feasibility study at Copper World on track for completion in mid-2026 with a sanctioning decision expected in 2026. Closed the accretive $600 million joint venture transaction with Mitsubishi Corporation (“Mitsubishi”) in January 2026, securing a premier, long-term 30% strategic partner for the development of Copper World and achieving the key financial elements of the Company’s 3-P plan.

“Our updated mineral reserve estimates and three-year production outlook demonstrate Hudbay’s continued success from our exploration initiatives and an improved copper and gold production profile from our three long life operations in tier one mining jurisdictions in the Americas,” said Peter Kukielski, Hudbay’s President and Chief Executive Officer. “With our newly released guidance through 2028, consolidated copper production is expected to increase by 24%, complemented by continued strong gold exposure. This growth is underpinned by meaningful mine life extensions at Snow Lake and Copper Mountain reinforcing the longevity and upside of our operating base. As we embark on generational reinvestments across our business in exploration and brownfield growth opportunities, continue to advance Copper World toward a sanctioning decision in 2026, and integrate the Cactus project through the strategic acquisition of Arizona Sonoran, Hudbay is in an optimal position to deliver attractive high-return growth, significantly increase long-term copper exposure and unlock meaningful value for stakeholders.”

Constancia Operations

Constancia is Hudbay’s 100% owned copper operation located in the province of Chumbivilcas in southern Peru. The Pampacancha high-grade satellite deposit was mined between 2021 and 2025 and provided a significant source of higher-grade mill feed in recent years until mining activities were completed in the fourth quarter of 2025.

Current mineral reserve estimates total 488 million tonnes at 0.24% copper containing approximately 1.2 million tonnes of copper, after deducting 2025 mining depletion. The expected mine life of Constancia is now until 2040 as mill throughput rates are expected to increase to more than 90,000 tonnes per day starting in the second half of 2026 with the installation of two pebble crushers and related permit amendments. These initiatives are intended to optimize the utilization of existing infrastructure and support improved long-term operating performance.

In 2025, Hudbay optimized the mine plan during a period of social unrest by prioritizing Pampacancha mining activities and supplementing mill ore feed from low-grade stockpiles. Following the accelerated depletion of Pampacancha, mining activities at Pampacancha were completed in the fourth quarter of 2025. The remaining stockpiled Pampacancha ore was fully processed in early 2026 and the Company is now exclusively mining and processing ore from the Constancia deposit.

Annual production at the Constancia operations is expected to average approximately 87,500itonnes of copper and 18,500iounces of gold over the next three years. This reflects steady copper production levels as higher mill throughput is expected to offset lower grades starting in 2026 after the completion of mining at Pampacancha in late 2025.

Current mineral reserves and resources (exclusive of reserves) for Constancia and Pampacancha as of January 1, 2026 are summarized below.

| Constancia Operations Mineral Reserve and Resource Estimates1,2,3,4,5 | Tonnes | Cu Grade (%) | Mo Grade (g/t) | Au Grade (g/t) | Ag Grade (g/t) | | | Constancia Reserves | | | | | | | | Proven | | 458,800,000 | 0.243 | 75 | 0.036 | 2.39 | | Probable | | 28,300,000 | 0.193 | 68 | 0.034 | 1.98 | | Total Proven and Probable - Constancia | | 487,100,000 | 0.240 | 74 | 0.036 | 2.37 | | Pampacancha Reserves6 | | | | | | | | Proven | | 900,000 | 0.216 | 128 | 0.307 | 3.57 | | Probable | | - | - | - | - | - | | Total Proven and Probable - Pampacancha | | 900,000 | 0.216 | 128 | 0.307 | 3.57 | | Total Proven and Probable | | 488,000,000 | 0.240 | 74 | 0.036 | 2.37 | | Constancia Resources | | | | | | | | Measured | | 106,300,000 | 0.232 | 74 | 0.036 | 2.36 | | Indicated | | 70,400,000 | 0.222 | 87 | 0.032 | 2.00 | | Inferred – Open Pit | | 27,700,000 | 0.271 | 71 | 0.049 | 2.54 | | Inferred – Underground | | 6,500,000 | 1.200 | 69 | 0.140 | 8.62 | | Pampacancha Resources | | | | | | | | Inferred | | - | - | - | - | - | | Total Measured and Indicated | | 176,700,000 | 0.228 | 79 | 0.034 | 2.22 | | Total Inferred | | 34,200,000 | 0.447 | 71 | 0.067 | 3.70 |

Note: totals may not add up correctly due to rounding. 1Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability. 2 Mineral reserves are estimated using a minimum NSR cut-off of $7.30 per tonne at Pampacancha, $7.30 per tonne at Constancia and assuming metallurgical recoveries (applied by ore type) of 85.29% for copper on average for the life of mine. 3 Mineral resource estimates are based on resource pit design and do not include factors for mining recovery or dilution. 4 The open pit mineral resources are estimated using a minimum NSR cut-off of $7.30 per tonne and assuming metallurgical recoveries (applied by ore type) of 84.6% for copper on average for the life of mine, while the underground inferred resources at Constancia Norte are based on a 0.65% copper cut-off grade. 5Long-term metal prices of $4.40 per pound copper, $17.00 per pound molybdenum, $2,800 per ounce gold and $32.00 per ounce silver were used to confirm the economic viability of the mineral reserve estimates and to estimate mineral resources. 6There are no additional mineral resources left at Pampacancha where mining activities have been completed in 2025.

Snow Lake Operations

Hudbay’s 100% owned Snow Lake operations in Manitoba include the Lalor gold-copper-zinc mine, the New Britannia gold mill, the Stall base metals concentrator, the 1901 zinc-gold deposit and several satellite deposits. The Lalor mine achieved commercial production in 2014 and reached a significant milestone in December 2024 with the recovery of one million ounces of gold from the mine. In 2025, near-mine exploration at the Lalor mine was conducted and is expected to continue into 2026, with the objective of increasing mineral reserves and resources and supporting future production.

The 1901 deposit was discovered in 2019, and in 2020 and 2021 Hudbay conducted infill drilling, metallurgical testing and a pre-feasibility study at 1901. In 2025, an exploration drift was successfully completed to reach the 1901 mineralized zone in order to conduct exploration activities and establish critical infrastructure ahead of full production expected in late 2027.

Current mineral reserve estimates in Snow Lake total 19.6 million tonnes with approximately 1.9 million ounces of gold and an expected mine life to 2041. After adjusting for mining depletion, this represents an increase of approximately 330,000 ounces of gold and an additional four years of mine life. High grade resource to reserve conversions and re-evaluation gains have offset reductions related to the optimization of the mine plan through the removal of lower grade dilution and low value reserves requiring significant development.

Snow Lake’s life-of-mine production schedule has been optimized for higher mill throughput rates at New Britannia, maximizing gold production and cash flows. In 2025, the Snow Lake operations continued to deliver meaningful gold production despite operational disruptions, including two months of mandatory wildfire evacuations and a one-week power outage caused by a winter storm. The Snow Lake operations produced 173,453 ounces of gold in 2025 with the New Britannia mill continuing to perform strongly, achieving a new monthly throughput record of approximately 2,300 tonnes per day in December 2025.

Annual production at the Snow Lake operations is expected to average approximately 190,000iounces of gold and 11,500itonnes of copper over the next three years. This reflects continued strong gold production levels, with New Britannia mill throughput expected to continue to operate above 2,200 tonnes per day and Lalor operating at 4,000 to 4,500 tonnes per day, supplemented by contributions from the 1901 deposit ramp up.

Current mineral reserves and resources (exclusive of reserves) for Lalor, 1901 and other Snow Lake satellite deposits as of January 1, 2026 are summarized below.

| Lalor Mine and 1901 Deposit Mineral Reserve and Resource Estimates1,2,3,4,5,6,7 | Tonnes | Au Grade (g/t) | Zn Grade (%) | Cu Grade (%) | Ag Grade (g/t) | | | Gold Zone Reserves | | | | | | | | Proven – Lalor | | 4,800,000 | 4.28 | 0.70 | 0.51 | 27.0 | | Proven – 1901 | | - | - | - | - | - | | Probable – Lalor | | 4,900,000 | 3.41 | 0.27 | 0.87 | 16.8 | | Probable – 1901 | | - | - | - | - | - | | Total Proven and Probable - Gold | | 9,800,000 | 3.84 | 0.48 | 0.69 | 21.8 | | Base Metal Zone Reserves | | | | | | | | Proven – Lalor | | 4,400,000 | 2.42 | 4.36 | 0.36 | 27.7 | | Proven – 1901 | | 900,000 | 2.25 | 7.60 | 0.27 | 24.0 | | Probable – Lalor | | 600,000 | 1.50 | 4.11 | 0.34 | 25.1 | | Probable – 1901 | | 700,000 | 1.67 | 8.23 | 0.22 | 28.5 | | Total Proven and Probable – Base Metal | | 6,700,000 | 2.22 | 5.20 | 0.33 | 27.0 | | Total Gold and Base Metal Zone Reserves | | | | | | | | Proven and Probable – Lalor | | 14,800,000 | 3.31 | 1.80 | 0.58 | 23.7 | | Proven and Probable – 1901 | | 1,600,000 | 1.99 | 7.89 | 0.24 | 26.0 | | Total Proven and Probable (Gold and Base Metal) | 16,500,000 | 3.18 | 2.40 | 0.54 | 23.9 | | | Gold Zone Resources | | | | | | | | Inferred – Lalor | | 1,400,000 | 4.64 | 0.21 | 2.48 | 15.4 | | Inferred – 1901 | | 2,700,000 | 4.20 | 0.65 | 0.58 | 16.3 | | Total Inferred - Gold | | 4,100,000 | 4.35 | 0.50 | 1.24 | 16.0 | | Base Metal Zone Resources | | | | | | | | Inferred – Lalor | | 400,000 | 1.42 | 1.74 | 1.28 | 18.3 | | Inferred – 1901 | | 100,000 | 1.23 | 8.12 | 0.13 | 38.1 | | Total Inferred – Base Metal | | 500,000 | 1.37 | 3.39 | 0.98 | 23.4 | | Total Gold and Base Metal Zone Resources | | | | | | | | Inferred – Lalor | | 1,800,000 | 3.95 | 0.53 | 2.22 | 16.0 | | Inferred – 1901 | | 2,800,000 | 4.06 | 1.01 | 0.56 | 17.3 | | Total Inferred (Gold and Base Metal) | | 4,600,000 | 4.02 | 0.82 | 1.21 | 16.8 |

Note: totals may not add up correctly due to rounding. 1Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability. 2 Lalor mineral reserves and resources are estimated using a NSR cut-off ranging from C$161 to C$185 per tonne, assuming a long hole mining method and depending on mill destination. 3Individual stope gold grades at Lalor and 1901 were capped at 10 grams per tonne. 41901 mineral reserves and resources are estimated using a minimum NSR cut-off of C$199 per tonne. 5Mineral resources do not include factors for mining recovery or dilution. 6Base metal mineral resources are estimated based on the assumption that they would be processed at the Stall concentrator while gold mineral resources are estimated based on the assumption that they would be processed at the New Britannia concentrator. 7Long-term metal prices of $2,800 per ounce gold, $1.25 per pound zinc, $4.40 per pound copper and $32.00 per ounce silver with an exchange rate of 1.33 C$/US$ were used to confirm the economic viability of the mineral reserve estimates and to estimate mineral resources.

| Snow Lake Regional Deposits - Gold Mineral Reserve and Resource Estimates1,2,3,4,5,6,7 | Tonnes | Au Grade (g/t) | Zn Grade (%) | Cu Grade (%) | Ag Grade (g/t) | | | Probable Reserves | | | | | | | | WIM | | 2,450,000 | 1.6 | 0.25 | 1.63 | 6.3 | | 3 Zone | | 660,000 | 4.2 | - | - | - | | Total Probable (Gold) | | 3,110,000 | 2.2 | 0.20 | 1.28 | 5.0 | | Inferred Resources | | | | | | | | New Britannia | | 2,750,000 | 4.5 | - | - | - | | Birch | | 570,000 | 4.4 | - | - | - | | Total Inferred (Gold) | | 3,320,000 | 4.5 | - | - | - |

Note: totals may not add up correctly due to rounding. 1Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability. 2WIM mineral reserves assume processing recoveries of 98% for copper, 88% for gold, and 70% for silver based on processing through New Britannia's flotation and tails leach circuits. 33 Zone mineral reserves assume processing recoveries of 85% for gold based on processing through New Britannia's leach circuit. 4Long-term metal prices of $1,700 per ounce gold, $1.25 per pound zinc, $4.00 per pound copper and $23.00 per ounce silver with an exchange rate of 1.33 C$/US$ were used to confirm the economic viability of the mineral reserve estimates. 5Mineral resources do not include factors for mining recovery or dilution. 6Gold mineral resources are estimated based on the assumption that they would be processed at the New Britannia concentrator. 7New Britannia mineral resource estimates have been reported at a minimum true width of 1.5 metres and with a cut-off grade varying from 2 grams per tonne (at the lower part of New Britannia) to 3.5 grams per tonne (at the upper part of New Britannia).

| Snow Lake Regional Deposits – Base Metal Mineral Reserve and Resource Estimates1,2,3,4,5,6,7 | Tonnes | Au Grade (g/t) | Zn Grade (%) | Cu Grade (%) | Ag Grade (g/t) | | | Indicated Resources | | | | | | | | Pen II | | 470,000 | 0.3 | 8.89 | 0.49 | 6.8 | | Talbot | | 2,190,000 | 2.1 | 1.79 | 2.33 | 36.0 | | Total Indicated (Base Metals) | | 2,660,000 | 1.8 | 3.04 | 2.01 | 30.9 | | Inferred Resources | | | | | | | | Watts | | 3,150,000 | 1.0 | 2.58 | 2.34 | 31.0 | | Pen II | | 130,000 | 0.3 | 9.81 | 0.37 | 6.8 | | Talbot | | 2,450,000 | 1.9 | 1.74 | 1.13 | 25.8 | | Total Inferred (Base Metals) | | 5,730,000 | 1.3 | 2.39 | 1.78 | 28.3 |

Note: totals may not add up correctly due to rounding. 1 Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability. 2 Mineral resources do not include factors for mining recovery or dilution. 3 Base metal mineral resources are estimated based on the assumption that they would be processed at the Stall concentrator. 4Watts and Pen II mineral resources were initially estimated using metal price assumptions that vary marginally over the assumptions used to estimate mineral resources at Lalor. In the Qualified Person’s opinion, the combined impact of these small variations does not have any impact on the mineral resource estimates. 5Watts mineral resources are estimated using a minimum NSR cut-off of C$150 per tonne, assuming processing recoveries of 90% for copper, 80% for zinc, 70% for gold and 70% for silver. 6Pen II mineral resources are estimated using a minimum NSR cut-off of C$75 per tonne. 7The above resource estimates table includes 100% of the Talbot mineral resources reported by Rockcliff Metals Corp. in its 2020 NI 43-101 technical report published on SEDAR+.

Snow Lake Exploration Program – Executing Threefold Strategy

Hudbay continues to execute an extensive exploration program in Snow Lake through geophysical surveying and multi-phased drilling campaigns as part of its threefold exploration strategy.

1)Near-Mine Exploration to Further Increase Near-term Production and Extend Mine Life

Near-mine exploration at the Lalor mine and the adjacent 1901 deposit continued to support near-term production growth and mine life extension. The exploration program will continue into 2026 to potentially increase mineral reserves and resources and enable resource conversion.

The Company completed development of the initial exploration drift at the 1901 deposit in 2025 and commenced delivery of zinc-rich development ore for processing at Stall. Activities at the 1901 deposit over the next two years will focus on exploration and definition drilling, orebody access and establishing the critical infrastructure required to support full production beginning in late 2027. Exploration activities will include step-out drilling to potentially extend the orebody, as well as infill drilling aimed at converting inferred mineral resources within the gold lenses to mineral reserves.

2)Testing Regional Satellite Deposits to Utilize Available Processing Capacity and Increase Production

Hudbay increased its land package in Snow Lake by more than 250% through the acquisition of Rockcliff Metals Corp. (“Rockcliff”) in 2023, which included the addition of several known deposits located within trucking distance of the Snow Lake processing infrastructure. These former Rockcliff deposits, together with several deposits already owned by Hudbay, have created an attractive portfolio of regional deposits in Snow Lake, including the Talbot, New Britannia, Rail, Pen II, Watts, 3 Zone and WIM deposits. The continued strong performance from the New Britannia mill has freed up additional processing capacity at the Stall mill, where there is approximately 1,500 tonnes per day of available capacity which could be utilized by the regional satellite deposits to potentially increase production and extend the life of the Snow Lake operations beyond 2041.

The above-mentioned properties are shown in Figure 1, and includes:

Talbot– Consolidated 100% ownership of this copper-zinc-gold rich deposit through Hudbay’s acquisition of Rockcliff in 2023. Rockcliff estimated indicated mineral resources of 2.2 million tonnes at 2.3% copper, 1.8% zinc and 2.1 grams per tonne gold. New Britannia – Acquired by Hudbay in 2015 with the acquisition of the New Britannia gold mill, the New Britannia deposit is a former producing gold mine that produced approximately 600,000 ounces between 1949 and 1958 and an additional 800,000 ounces between 1995 and 2005. Significant mineral resources remain accessible at New Britannia and the Company is advancing plans on potential future development and rehabilitation of the existing mining infrastructure at New Britannia to unlock significant incremental gold production in Snow Lake. Rail– Also acquired as part of Hudbay’s acquisition of Rockcliff in 2023, Hudbay’s 2024 drill program yielded new intersections of high-grade copper-gold mineralization. These results will be combined with historical drilling results on the property to update the geological model and assess its economic potential. Pen II– Hudbay consolidated land adjacent to this low tonnage, near surface, high-grade zinc deposit through the Rockcliff acquisition. Rockcliff intersected mineralization down-dip from Hudbay’s deposit and identified a deep geophysical conductive plate. Watts– A copper-zinc-rich deposit located near powerlines and 100 kilometres by road from the Stall mill. Drilling by Hudbay in 2019 successfully extended the known high-grade copper mineralization. 3 Zone– Acquired by Hudbay in 2015, this gold-rich deposit is located three kilometres from the New Britannia mill and is expected come into production after the Lalor deposit is depleted. WIM– Acquired by Hudbay in 2018, this copper-gold deposit is located 15 kilometres from the New Britannia mill and is expected to come into production after the Lalor deposit is depleted.