Hudbay Minerals Inc. press release

Hudbay Enhances Gold Production Profile at Snow Lake, Extends Reserve Mine Life to 18 Years and Identifies Further Growth Potential from Resource Conversion and the Britannia Gold Project

2026-09-28

TSX - Toronto Stock Exchange · Copper · Molybdenum · Gold · Silver · Sulfur · Zinc · Canada · Technical Studies

TORONTO, Sept. 28, 2026 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, NYSE: HBM)today released an updated mine plan for its Snow Lake operations in Manitoba, Canada. All amounts are in U.S. dollars, unless otherwise noted.

Snow Lake’s proven and probable reserve mine life extended by an additional two years to 2043, which together with the four-year extension announced in March 2026 represents a total of six years added to the reserve mine life. Updated 2026-2030 five-year average annual gold production to 185,000 ounces from continued strong mill throughput rates at New Britannia and higher gold recoveries at Stall, representing a 37% increase in total gold production from an additional 250,000 ounces produced over the same five-year period in the 2021 technical reporti. Total life-of-mine gold production increased by 60% to 2.8 million ounces from 1.8 million ounces in the 2021 technical reporti. Updated 2026-2030 five-year average gold cash costsiito $821 per ounce and five-year average sustaining cash costsiito $1,379 per ounce, maintaining industry leading operating margins. Snow Lake mineral reserve estimates increased to 27 million tonnes containing 2.0 million ounces of gold, representing a 38% increase in tonnage from the January 1, 2026 mineral reserve estimate. Snow Lake mineral resource estimates increased to 21 million tonnes containing 1.5 million ounces of gold, representing a 26% increase in tonnage from the January 1, 2026 mineral resource estimate, despite significant resource-to-reserve conversion. Life-of-mine plan based on reserve estimates and represents a conservative view based on Hudbay’s historical high resource-to-reserve conversion rate of 90%iiiand ongoing exploration activities. 1901 exploration and development activities are progressing well, and the project is on track to achieve full production in late 2027. Stall hot tailings project is underway and is expected to be commissioned in early 2028, resulting in further increases in gold and silver recoveries. Longer-term production profile enhancement and reserve mine life extensions expected from continued conversion of mineral resources at Lalor, exploration at 1901 to unlock gold potential, reprocessing of Anderson tailings in Snow Lake, and additional exploration at existing satellite deposits in pursuit of a new anchor deposit. The Britannia Gold Project presents a new anchor deposit opportunity to meaningfully add gold production and significantly extend mine life well beyond current reserves.

“This enhanced Snow Lake mine plan unlocks roughly 60% more gold production over the mine life and maintains an average of 185,000 ounces over the next five years, demonstrating the incredible value that we have created through successful exploration and continuous improvement initiatives,” said Peter Kukielski, Hudbay’s Chief Executive Officer. “Transitioning this operation from a zinc-rich operation to a leading Canadian gold operation over the last five years has been transformative for Hudbay and we look forward to sustainable production in the decades ahead. The strong margins and steady gold production will ensure Snow Lake continues to be a meaningful free cash flow contributor and provide complementary gold exposure for Hudbay. This gold diversification becomes even more valuable as we continue to advance our attractive copper growth pipeline to deliver significant long-term value for our stakeholders.”

“I am very pleased with the Manitoba team’s execution of a focused exploration program and the advancement of many high-return, low-capital intensity growth initiatives in Snow Lake to deliver this robust mine plan,” said Robert Carter, Hudbay’s Chief Operating Officer. “We have delivered on the strategy of targeting more than 180,000 ounces of annual gold production and we are well-positioned to continue to deliver that profile well into the next decade. The Snow Lake Greenstone Belt continues to be a highly prospective region and provides significant upside potential. Future opportunities include unlocking additional reserves through continued conversion of the 1.5 million gold ounces in inferred resources, further extending the reserve mine life beyond 2043 and exploring for the next major anchor deposit in Snow Lake.”

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, several satellite deposits and the former producing New Britannia gold mine currently on care and maintenance (“the Britannia Gold Project”). The Lalor mine achieved commercial production in 2014 and reached a significant milestone in December 2024 with the recovery of its one millionth ounce of gold from the mine. In 2025, an exploration drift was successfully completed to reach the 1901 mineralized zone to conduct underground exploration activities and establish critical infrastructure ahead of full production, which is expected in late 2027.

Hudbay increased its Snow Lake land package by more than 250% in 2023 through the acquisition of Rockcliff Metals Corp. (“Rockcliff”), which included the addition of several known deposits within trucking distance of the Snow Lake processing infrastructure, including the Talbot copper-zinc-gold deposit and the Rail copper-gold deposit. Hudbay signed its first-ever exploration agreement with the Kiciwapa Cree Nation related to Rail in 2024, followed by an exploration agreement with the Mosakahiken Cree Nation related to Talbot in 2025. Hudbay advanced drilling campaigns to expand the resource base at the satellite properties and upgrade mineral resources to mineral reserves, resulting in the inclusion of the Talbot and Rail deposits as mineral reserves in the Snow Lake updated mine plan.

Recent near-mine exploration at Lalor and regional exploration at the satellite properties have extended mine life through increased mineral reserves, unlocked additional gold ounces and added mineral resources to support further long-term production growth.

Unlocking Additional Gold Ounces Through Increased Mineral Reserves and Extended Mine Life to 2043

Current mineral reserve estimates in Snow Lake as of September 1, 2026 total 27.0 million tonnes with approximately 2.0 million ounces of gold and a reserve mine life to 2043. This represents an increase in mineral reserves of 7.5 million tonnes, unlocking 124,000 ounces of additional gold, and further extends mine life by two additional years, in each case as compared to the prior mineral reserve estimates dated January 1, 2026. Together with the increase in mineral reserves and four year mine life extension announced early this year, the Company has added a total of 510,000 ounces of gold contained in reserves and six years of additional mine life in Snow Lake.

The increase in reserves and extension of mine life is due to reserve conversion at Lalor and 1901 and higher reserves at the WIM and 3 Zone satellite deposits, in addition to the first reserve estimate for the Talbot and Rail satellite deposits following the completion of infill and geotechnical drilling. Please refer to Figure 1 for a summary of the additions to mineral reserves. Hudbay expects to continue to achieve high-grade resource to reserve conversions and to further optimize the mine plan.

Further background on each of the deposits included in the Snow Lake reserve mine plan is below:

_Lalor_– A geophysical discovery by Hudbay in 2007; the development of Lalor was approved in 2012 at a time when Lalor had an initial mine life of 10 years. Successful exploration since inception has delineated an approximate 300% increase in gold reserves, replacing depletion, and after having been in operation for 12 years, Lalor continues to have a reserve mine life of 11 years today. _1901_– The 1901 deposit was discovered in 2019, and in 2020 and 2021 Hudbay conducted infill drilling, metallurgical testing and a pre-feasibility study. Underground drilling continues from an exploration drift to de-risk the pathway to full production at the end of 2027 and delineate additional gold reserves. 1901 is expected to increase the total mining rate from the Lalor shaft to 5,000 tonnes per day. _3 Zone_– Acquired by Hudbay in 2015 as part of the acquisition of New Britannia, this gold-rich deposit is located three kilometres from the New Britannia mill and is expected to come into production later this decade to supplement gold ore feed from Lalor. _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 3 Zone and contribute gold ore feed to the New Britannia mill after Lalor is depleted. _Talbot_– Consolidated 100% ownership of this copper-zinc-gold deposit through Hudbay’s acquisition of Rockcliff in 2023. A successful infill drilling program was completed during the second quarter of 2026 as well as geotechnical drilling required for pre-feasibility study activities, which upgraded 2.7 million tonnes of mineral resources to reserves with approximately 130,000 ounces of gold, 52,000 tonnes of copper and a 10 year mine life. _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 and the interpretation of historical drilling results were used to update the geological model and assess its economic potential. Rail has 1.5 million tonnes of reserves at 1.96% copper and 0.50 grams per tonne gold and is expected to provide feed for the Stall mill and come into production as 1901 is depleted.

Current mineral reserves for Lalor, 1901 and other Snow Lake satellite deposits as of September 1, 2026 are summarized in the following table.

| Snow Lake Mineral Reserve Estimates1,2,3,4,5,6 | 000 Tonnes | Au Grade (g/t) | Cu Grade (%) | Zn Grade (%) | Ag Grade (g/t) | | | Gold Zone Reserves | | | | | | | | Gold Zone Proven | | | | | | | | Lalor | | 4,667 | 3.78 | 0.43 | 0.70 | 21.8 | | Subtotal | | 4,667 | 3.78 | 0.43 | 0.70 | 21.8 | | Gold Zone Probable | | | | | | | | Lalor | | 5,901 | 3.20 | 0.87 | 0.27 | 14.6 | | 1901 | | 341 | 2.66 | 0.75 | 0.68 | 15.2 | | WIM | | 3,653 | 1.17 | 1.29 | 0.21 | 5.1 | | Subtotal | | 9,895 | 2.43 | 1.02 | 0.26 | 11.1 | | Total Proven and Probable - Gold | | 14,562 | 2.86 | 0.83 | 0.37 | 14.5 | | Base Metal Zone Reserves | | | | | | | | Base Metal Proven | | | | | | | | Lalor | | 4,977 | 2.02 | 0.32 | 4.15 | 25.7 | | 1901 | | 970 | 1.54 | 0.29 | 7.61 | 23.9 | | Subtotal | | 5,947 | 1.94 | 0.32 | 4.71 | 25.4 | | Base Metal Probable | | | | | | | | Lalor | | 822 | 1.39 | 0.38 | 3.97 | 23.0 | | 1901 | | 307 | 2.17 | 0.27 | 7.27 | 27.4 | | Talbot | | 2,710 | 1.46 | 1.92 | 1.14 | 26.5 | | Rail | | 1,510 | 0.53 | 1.96 | 0.55 | 5.6 | | Subtotal | | 5,349 | 1.23 | 1.60 | 1.76 | 20.1 | | Total Proven and Probable - Base Metal | | 11,296 | 1.60 | 0.92 | 3.32 | 22.9 | | Total Gold and Base Metal Reserves - Proven and Probable | | | | | | | | Lalor | | 16,367 | 2.92 | 0.55 | 1.76 | 20.5 | | 1901 | | 1,618 | 1.89 | 0.38 | 6.08 | 22.8 | | Talbot | | 2,710 | 1.46 | 1.92 | 1.14 | 26.5 | | WIM | | 3,653 | 1.17 | 1.29 | 0.21 | 5.1 | | Rail | | 1,510 | 0.53 | 1.96 | 0.55 | 5.6 | | Gold and Base Metal Proven and Probable | | 25,857 | 2.31 | 0.87 | 1.67 | 18.2 | | _Britannia Gold Project __– 3 Zone Probable_ | | 1,153 | 2.81 | - | - | - | | Total Proven and Probable – All Deposits | | 27,010 | 2.33 | - | - | - |

1Totals may not add up correctly due to rounding. 2The economic viability of the mineral reserve estimates was confirmed using metal prices of $1.25 per pound of zinc, $3,600 per ounce of gold, $5.00 per pound of copper, and $40.00 per ounce of silver with an exchange rate of 1.33 C$/US$. Lalor and 1901 mineral reserves were estimated using a minimum NSR cut-off for Stall mill ore material of C$160 longhaul and C$199 post pillar and a minimum NSR cut-off for New Britannia ore material of C$184 for longhaul and C$223 for post pillar. 33Zone, Talbot and Rail mineral reserves identified at an NSR cut-off value of C$150 per tonne. The NSR considers the metallurgical recoveries via processing at the Stall mill. WIM mineral reserves identified at an NSR cut-off value of C$125 per tonne. 4WIM mineral reserves are estimated assuming 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. 53 Zone mineral reserves are estimated assuming processing recoveries of 85% for gold based on processing through New Britannia’s leach circuit. 6Mineral reserves include internal and external dilution and mining recovery.

Snow Lake Updated Mine Plan Maintains 185,000 Ounce Annual Gold Production Profile to 2030 and Demonstrates a 60% Increaseiin Life-of-Mine Gold Production

Hudbay’s updated Snow Lake mine plan based solely on mineral reserve estimates reflects a 37% increase in gold production over the next five yearsiand a 60% increase in total gold production over the life-of-mine compared to the 2021 technical reporti, as outlined in Figure 2. Three-year average annual production from 2026 to 2028 of approximately 190,000 ounces of gold and 11,500 tonnes of copper is consistent with previously issued three-year production guidance. The updated Snow Lake mine plan maintains average production of 185,000 ounces of gold over the next five yearsireflecting several optimization initiatives including higher mill throughput at New Britannia and higher gold recoveries at the Stall mill to better utilize the combined 6,300 tonnes per day of processing capacity, as shown in Figure 3 and further described below.

_Higher Mining Rate __– _The updated Snow Lake mine plan reflects a mining ramp up to approximately 2.0 million tonnes per year and maintaining this profile over the next decade. The mine plan reflects Lalor operating at 4,000 to 4,500 tonnes per day, supplemented by contributions from the 1901 deposit and several additional satellites to supplement Lalor mill feed and increase total ore mined to approximately 5,000 tonnes per day. _Increased New Britannia Mill Throughput __– _The New Britannia mill has a nameplate design of 1,500 tonnes per day and a permitted capacity of 2,500 tonnes per day. Snow Lake’s mine plan has been optimized for higher mill throughput rates at New Britannia maximizing gold production and cash flows. The New Britannia mill currently operates at more than 2,000 tonnes per day, continuing to exceed expectations, and the updated mine plan reflects New Britannia ramping up to 2,300 tonnes per day starting in 2027. _Better Utilization of Available Processing Capacity at Stall __– _The Stall mill has a nameplate capacity of 3,800 tonnes per day but is currently operating at approximately 2,300 tonnes per day. The updated Snow Lake mine plan takes advantage of the spare capacity at Stall by adding 1901 zinc-rich reserves to the mine plan and maintains future optionality for other regional deposits. The updated mine plan reflects Stall throughput ramping up to 3,000 tonnes per day by 2030. _Stall Hot Tails Leaching Project __– _Stall has a history of continuous improvement projects increasing copper and precious metal recoveries, including the recovery improvement program that was completed in 2023 and increased gold recoveries from 58% in 2022 to more than 70% today. The Stall Hot Tails Leaching project continues this trend and aims to recover additional gold and silver through expansion of cyanide leaching and carbon infrastructure at New Britannia to accommodate material from Stall. Commissioning of this project is expected in early 2028 and it is anticipated to increase combined mill gold and silver recoveries as shown in Figure 4.

| Snow Lake Production Profile1 | 2026E | 2027E | 2028E | 2029E | 2030E | 2031-2035 (5Yr avg) | 2036-2040 (5Yr avg)4 | LOM Total1 | | | | Ore Mined | | | | | | | | | | | | Lalor and1901 | 000 tonnes | 1,512 | 1,702 | 1,742 | 1,749 | 1,748 | 1,570 | 1,318 | 18,938 | | | Regional deposits | 000 tonnes | - | - | - | - | 247 | 544 | 748 | 9,025 | | | Total Ore Mined | 000 tonnes | 1,512 | 1,702 | 1,742 | 1,749 | 1,996 | 2,114 | 1,275 | 27,963 | | | Gold grade | g/t Au | 4.67 | 3.97 | 3.59 | 3.53 | 3.03 | 2.07 | 1.58 | 2.41 | | | Copper grade | % Cu | 0.78 | 0.69 | 0.77 | 0.85 | 0.67 | 0.62 | 1.03 | 0.83 | | | Zinc grade | % Zn | 1.86 | 2.06 | 1.48 | 1.91 | 1.42 | 1.90 | 1.36 | 1.62 | | | Silver grade | g/t Ag | 26.7 | 22.6 | 20.9 | 22.4 | 17.0 | 16.6 | 16.1 | 17.7 | | | Ore Milled | | | | | | | | | | | | New Britannia | 000 tonnes | 758 | 872 | 874 | 874 | 879 | 871 | 872 | 15,301 | | | Stall | 000 tonnes | 771 | 830 | 868 | 875 | 1,117 | 1,243 | 1,0085 | 12,679 | | | Total Ore Milled | 000 tonnes | 1,529 | 1,702 | 1,742 | 1,749 | 1,996 | 2,114 | 1,275 | 27,980 | | | Combined Recovery – New Britannia and Stall | | | | | | | | | | | | Gold recovery | % | 88.3 | 85.5 | 91.2 | 91.1 | 90.5 | 89.4 | 86.4 | 88.9 | | | Copper recovery | % | 90.1 | 89.8 | 91.4 | 91.9 | 91.8 | 86.5 | 89.6 | 89.7 | | | Zinc recovery2 | % | 82.3 | 87.6 | 84.0 | 86.9 | 83.8 | 86.1 | 86.25 | 85.9 | | | Silver recovery | % | 74.6 | 73.4 | 79.5 | 79.1 | 77.1 | 76.5 | 81.7 | 77.6 | | | Production | | | | | | | | | | | | Gold | | 000 ounces | 201 | 186 | 183 | 181 | 176 | 126 | 57 | 1,931 | | Copper | | 000 tonnes | 11 | 11 | 12 | 14 | 12 | 11 | 12 | 209 | | Zinc | | 000 tonnes | 18 | 28 | 19 | 26 | 22 | 31 | 11 | 325 | | Silver | | 000 ounces | 967 | 909 | 931 | 998 | 840 | 865 | 522 | 12,380 | | Total AuEq3 | 000 ounces | 262 | 250 | 247 | 255 | 242 | 186 | 90 | 2,716 | | | Total CuEq3 | 000 tonnes | 87 | 82 | 82 | 82 | 75 | 61 | 29 | 883 | |

1LOM totals reflect the mine plan for full year 2026 to 2043 and may be slightly different than the mineral reserve estimates which are as of September 1, 2026. Totals may not add up correctly due to rounding. 2Zinc recoveries reflect zinc circuit at Stall mill only. 3Copper and gold equivalent production assumes the following commodity prices: $6.09 per pound of copper for 2026, $5.80 per pound of copper for 2027, $5.50 per pound of copper for 2028 to 2030 and $5.00 per pound of copper long-term; $4,472 per ounce of gold for 2026, $4,200 per ounce of gold for 2027, $4,000 per ounce of gold for 2028, $3,900 per ounce of gold for 2029, $3,750 per ounce of gold for 2030 and $3,600 per ounce of gold long-term; $70 per ounce of silver for 2026, $57.50 per ounce of silver for 2027, $55.00 per ounce of silver for 2028, $50 per ounce of silver for 2029, $45 per ounce of silver for 2030 and long-term; $1.59 per pound of zinc for 2026, $1.40 per pound of zinc for 2027, $1.35 per pound of zinc for 2028, $1.30 per pound of zinc for 2029 and 2030, and $1.25 per pound of zinc long-term. 4Individual mine and mill averages reflect their respective operating periods during 2036–2040 and therefore do not sum to the five-year total averages. 5Stall mill ends processing in 2037 - amounts represent ore milled and recoveries in 2036-2037.

Executing Low-Capital Intensity Brownfield Growth Projects to Deliver Strong Returns

The Snow Lake capital expenditures profile reflects several growth initiatives, including the completion of the development of the 1901 deposit, the implementation of the Stall Hot Tails Leaching project and the optionality maintained from developing the regional satellite deposits. Sustaining capital expenditures reflect underground capitalized development activities, equipment purchases and tailings dam capital required to maintain operations.

Hudbay expects to continue to significantly enhance this conservative mine plan based solely on mineral reserve estimates by prioritizing high grade resource to reserve conversions from the Lalor and 1901 deposits with lower associated capital expenditures.

Combined mining, milling and G&A unit operating costs on a tonne milled basis remains relatively unchanged over the mine life as the increase in mill throughput offsets higher mining costs as mining activities go deeper and haulage distances increase. Over the next five years, average gold cash costsiiof $821 per ounce and average sustaining cash costsiiof $1,379 per ounce benefit from continued strong gold production and by-product credits. Without any further exploration success, cash costs are expected to increase in the 2030s but maintain highly attractive margins when compared to other gold operations and long-term gold price estimates.