- Increase of 7.4% in Hudbay's copper equivalent reserves over the past year due to increased reserves at the Constancia project - Increase of 8.9% in Hudbay's precious metal equivalent reserves over the past year - Development projects remain on track to reach production goals for 2014 - Constancia construction advancing well as critical path relocation agreements reached and pre-stripping commenced

TORONTO, ONTARIO--(Marketwired - Mar 26, 2014) - HudBay Minerals Inc. ("Hudbay" or the "company") (HBM.TO)(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.

Constancia

At Hudbay's 100% owned Constancia copper project in Peru, the project was over 67% complete on a proportion spent basis at the end of February 2014. Of the total project capital budget of US$1.7 billion, Hudbay has incurred approximately US$1.15 billion in costs to February 28, 2014 and has entered into an additional US$250 million in commitments. Construction activities, which remain on track for first production in late 2014 and commercial production in the second quarter of 2015, include the following:

• Agreements to secure all critical path relocations of families have now been completed and negotiations to secure surface rights over the Pampacancha deposit are expected to commence in the near future.
• Power transmission line construction is approximately 70% complete as at the end of February 2014 and is forecast to be complete by July 2014, in time for Constancia commissioning activities.
• Significant progress in construction of the concentrator, including completion of structural steel fabrication, and advancement of tailings pipeline and water reclaim piping construction.
• Dam construction on the east tailings embankment is well underway and on schedule, and water retention in the east tailings impoundment area will commence shortly. Water capture to build operations water inventory began in December 2013.
• All mining equipment for pre-stripping operations has been commissioned and pre-stripping activities commenced on schedule in early March.

Lalor

Of the total mine construction budget of $441 million, Hudbay has invested approximately $386 million at its 100% owned Lalor project in Manitoba to February 28, 2014 and has entered into an additional $36 million in commitments. The underground mine remains on schedule and on budget. Hudbay is continuing underground project development and has completed the excavation of the production shaft to the 985 metre level. Hudbay has completed the steel guide installation to the 955 metre level and expects to complete the installation in the second quarter of 2014. The commissioning of the production shaft and doubling of the production rate at the mine and concentrator to 2,700 tonnes per day remain on schedule for July 2014. Hudbay recently received its Environment Act licence for Lalor, which will enable full production via the main shaft.

Reed

Of Hudbay's $72 million estimated capital construction budget, the company has invested approximately $64.9 million on its Reed mine project to February 28, 2014. As of that date, project development had advanced 2,927 metres with the mine producing 82,062 tonnes of ore from a combination of drift development in ore and longhole stope mining. The project is on budget and on schedule and is expected to reach commercial production by the second quarter of 2014.

Detailed Mineral Reserve and Resource Disclosure

Note: totals may not add up correctly due to rounding.

Note: totals may not add up correctly due to rounding.

Note: totals may not add up correctly due to rounding.

Note: totals may not add up correctly due to rounding.

Additional Information

The reserve and resource estimates included in this news release were prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute on Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves: Definitions and Guidelines.

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.

Manitoba

• To estimate mineral reserves, measured and indicated mineral resources were first estimated in a 12-step process, which includes determination of the integrity and validation of the data collected, including confirmation of specific gravity, assay results and methods of data recording. The process also includes determining the appropriate geological model, selection of data and the application of statistical models including probability plots and restrictive kriging to establish continuity and model validation. The resultant estimates of measured and indicated mineral resources are then converted to proven and probable mineral reserves by the application of mining dilution and recovery, as well as the determination of economic viability using full cost analysis. Other factors such as depletion from production are applied as appropriate.

• Estimated inferred mineral resources within our mines were estimated by a similar 12-step process, used to estimate measured and indicated resources.

• The zinc price used for mineral reserve and resource estimations for the Manitoba mines was US$1.06 per pound (includes premium), the copper price was US$3.00 per pound, the gold price was US$1,250.00 per ounce and the silver price was US$25.00 per ounce using an exchange of 1.05 C$/US$.

• For additional details relating to the estimates of mineral reserves and resources at the 777 mine, including data verification and quality assurance/quality control processes refer to the "Technical Report 777 Mine, Flin Flon, Manitoba, Canada" dated October 15, 2012 on SEDAR.

• For additional details relating to the estimates of mineral reserves and resources at the Lalor project, including data verification and quality assurance/quality control processes refer to the "Pre-Feasibility Study Technical Report, on the Lalor Deposit" dated March 29, 2012 on SEDAR.

• For additional details relating to the estimates of mineral reserves and resources at the Reed project, including data verification and quality assurance/quality control processes refer to the "Pre-Feasibility Study Technical Report on the Reed Copper Deposit, Central Manitoba, Canada" as filed on SEDAR by VMS Ventures Inc. on May 14, 2012.

Peru

• For additional details relating to the estimates of mineral reserves and resources at the Constancia project, including data verification and quality assurance/quality control processes refer to "The Constancia Project, National Instrument 43-101 Technical Report" as filed on SEDAR by Hudbay on November 6, 2012.

• The Constancia and Pampacancha mineral reserves are based on a Peruvian Sole: US Dollar exchange rate of 2.85:1 and the following long term metals prices: copper price of US$3.00 per pound; silver price of US$25.00 per ounce; gold price of US$1,250.00 per ounce; and molybdenum price of US$13.50 per pound.

• The Constancia and Pampacancha mineral resources correspond to a resources pit shell. A pit optimization to delimit the portion of the block model having reasonable prospects for economic extraction was performed.

• The Constancia resource pit consists of a non-operational pit of Measured, Indicated and Inferred resources diluted to a 10x10x15m full block size using a 0.12% copper cut-off based on a copper price of US$2.88 per pound and a molybdenum price of US$16.00 per pound, copper recovery of 89%, molybdenum recovery of 60%, processing costs of US$5.50 per tonne and mining costs of US$1.30 per tonne.

• The Pampacancha resource pit consists of a non-operational pit of Measured, Indicated and Inferred resources diluted to a 10x10x15m full block size using a 0.1% copper cut-off based on a copper price of US$3.00 per pound, a molybdenum price of US$13.50 per pound, silver price of US$25.00 per ounce, gold price of US$1,250 per ounce, copper recovery of 85%, molybdenum recovery of 40%, gold and silver recovery of 65%; processing costs of US$4.72 per tonne and mining costs of US$1.90 per tonne.

• The primary consideration to accommodate the increased Constancia mineral reserve in the Constancia life of mine plan ("LOM") was the confirmation through pre-feasibility investigation to increase the tailings dam height to accommodate this extra tonnage and the waste rock facility configuration. The resulting LOM has increased to 22 years from 16 years. In this process some of the major cost components have been updated to reflect some known actual costs such as energy, fuel, concentrate transport and port charges. The resulting change is an average cost of US$0.72 per pound of copper produced net of by product credits from a previously disclosed US$0.66 per pound of copper in the first full five years of production. Contained copper metal in concentrate is expected to average 116,000 tonnes per year over the first five full years versus 118,000 tonnes as previously disclosed. Over the remaining years, the cost per pound of copper net of by product credits has increased to US$1.14 per pound from US$1.11 per pound; and the contained copper metal in concentrate is expected to average 67,000 tonnes per year versus 77,000 tonnes per year as previously disclosed. The cost per pound of copper net of by product credits does not include the impact of the precious metals streaming transactions.

• Measured and indicated mineral resources were estimated in house. The process includes determination of the integrity and validation of the data collected, including confirmation of specific gravity, assay results and methods of data recording. The process also includes determining the appropriate geological model, selection of data and the application of statistical models including probability plots to establish continuity and model validation.

Other Properties

• Tom and Jason mineral resources calculated using a zinc price of US$0.57 per pound, a lead price of US$0.35 per pound and a silver price of US$7.00 per ounce; and a gross dollar value cut-off of US$50 per tonne. Silver values were capped at 550 grams per tonne. For additional detail relating to the Tom/Jason mineral resource estimates see "Technical Report on the Tom and Jason Deposits, Yukon territory, Canada" as filed on SEDAR by Hudbay on May 24, 2007.

Qualified Person

The technical and scientific information in this news release related to the Constancia project has been approved by Cashel Meagher, P. Geo, Hudbay's Vice-President, South America. The technical and scientific information related to all other sites and projects contained in this news release has been approved by Robert Carter, P. Eng, Hudbay's Director, Technical Services. Messrs. Meagher and Carter are qualified persons pursuant to NI 43-101.

Forward-Looking Information

This news release contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable Canadian and United States securities legislation. All information contained in this news release, other than statements of current and historical fact, is forward-looking information.

Forward-looking information includes information that relates to, among other things, our objectives, strategies, and intentions and future financial and operating performance and prospects. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "budget", "guidance", "scheduled", "estimates", "forecasts", "strategy", "target", "intends", "objective", "goal", "understands", "anticipates" and "believes" (and variations of these or similar words) and statements that certain actions, events or results "may", "could", "would", "should" or "might" "occur" or "be achieved" or "will be taken" (and variations of these or similar expressions).

Forward-looking information includes, but is not limited to, the production, cost and capital and exploration guidance contained in this news release, continued production at Hudbay's 777, Lalor and Reed mines, continued processing at the company's Flin Flon concentrator, Snow Lake concentrator and Flin Flon zinc plant, Hudbay's ability to develop its Lalor, Constancia and Reed projects and the anticipated scope and cost of and development plans for, these projects, including expected production from the main production shaft at Lalor, refurbishment of the Snow Lake concentrator and deferral of construction of the new Lalor concentrator, expected initial and commercial production from the Constancia project and expected commercial production at the Reed mine, anticipated timing of Hudbay's projects and events that may affect the company's projects, Hudbay's expectation that it will receive the remaining deposit payments under the amended precious metals stream transaction with Silver Wheaton Corp. and funding under Hudbay's equipment financing transaction with Cat Financial, the anticipated effect of external factors on revenue, such as commodity prices, anticipated exploration and development expenditures and activities and the possible success of such activities, estimation of mineral reserves and resources, mine life projections, timing and amount of estimated future production, reclamation costs, economic outlook, government regulation of mining operations, and business and acquisition strategies.

Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by the company at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that Hudbay identified and were applied by the company in drawing conclusions or making forecasts or projections set out in the forward looking information include, but are not limited to:

• the success of mining, processing, exploration and development activities;
• the accuracy of geological, mining and metallurgical estimates;
• the costs of production;
• the supply and demand for metals Hudbay produces;
• no significant and continuing adverse changes in financial markets, including commodity prices and foreign exchange rates;
• the supply and availability of concentrate for Hudbay's processing facilities;
• the supply and availability of reagents for Hudbay's concentrators;
• the availability of third party processing facilities for Hudbay's concentrate;
• the supply and availability of all forms of energy and fuels at reasonable prices;
• the availability of transportation services at reasonable prices;
• no significant unanticipated operational or technical difficulties;
• the availability of financing for Hudbay's exploration and development projects and activities;
• the ability to complete project targets on time and on budget and other events that may affect Hudbay's ability to develop its projects;
• the timing and receipt of various regulatory and governmental approvals;
• the availability of personnel for Hudbay's exploration, development and operational projects and ongoing employee relations;
• the company's ability to secure required land rights to complete the Constancia project;
• maintaining good relations with the communities in which Hudbay operates, including the communities surrounding the company's Constancia project and First Nations communities surrounding the company's Lalor and Reed projects;
• no significant unanticipated challenges with stakeholders at Hudbay's various projects;
• no significant unanticipated events relating to regulatory, environmental, health and safety matters;
• no contests over title to Hudbay's properties, including as a result of rights or claimed rights of aboriginal peoples;
• the timing and possible outcome of pending litigation and no significant unanticipated litigation;
• certain tax matters, including, but not limited to current tax laws and regulations and the refund of certain value added taxes from the Canadian and Peruvian governments; and
• no significant and continuing adverse changes in general economic conditions or conditions in the financial markets.

The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, risks generally associated with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy prices and general cost escalation), uncertainties related to the development and operation of the company's projects (including the impact on project cost and schedule of construction delays and unforeseen risks and other factors beyond our control), depletion of its reserves, risks related to political or social unrest or change and those in respect of aboriginal and community relations and title claims, operational risks and hazards, including unanticipated environmental, industrial and geological events and developments and the inability to insure against all risks, failure of plant, equipment, processes, transportation and other infrastructure to operate as anticipated, compliance with government and environmental regulations, including permitting requirements and anti-bribery legislation, dependence on key personnel and employee relations, volatile financial markets that may affect Hudbay's ability to obtain financing on acceptable terms, uncertainties related to the geology, continuity, grade and estimates of mineral reserves and resources and the potential for variations in grade and recovery rates, uncertain costs of reclamation activities, Hudbay's ability to comply with the company's pension and other post-retirement obligations, Hudbay's ability to abide by the covenants in the company's debt instruments, as well as the risks discussed under the heading "Risk Factors" in Hudbay's most recent Annual Information Form.

Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, you should not place undue reliance on forward-looking information. Hudbay does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law. All of the forward-looking information in this news release is qualified by this cautionary statement.

Note to United States Investors

Information concerning Hudbay's mineral properties has been prepared in accordance with the requirements of Canadian securities laws, which differ in material respects from the requirements of the Securities and Exchange Commission ("SEC") Industry Guide 7. Under SEC Industry Guide 7, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time of the reserve determination, and the SEC does not recognize the reporting of mineral deposits which do not meet the United States Industry Guide 7 definition of "Reserve". In accordance with NI 43-101 of the Canadian Securities Administrators, the terms "mineral reserve", "proven mineral reserve", "probable mineral reserve", "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are defined in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Definition Standards for Mineral Resources and Mineral Reserves adopted by the CIM Council on December 11, 2005. While the terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are recognized and required by NI 43-101, the SEC does not recognize them. You are cautioned that, except for that portion of mineral resources classified as mineral reserves, mineral resources do not have demonstrated economic value. Inferred mineral resources have a high degree of uncertainty as to their existence and as to whether they can be economically or legally mined. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Therefore, you are cautioned not to assume that all or any part of an inferred mineral resource exists, that it can be economically or legally mined, or that it will ever be upgraded to a higher category. Likewise, you are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be upgraded into mineral reserves. You should consider closely the disclosure on the technical terms in Schedule A "Glossary of Mining Terms" of Hudbay's annual information form for the fiscal year ended December 31, 2012, available on SEDAR at www.sedar.com and incorporated by reference as Exhibit 99.1 in Hudbay's Form 40-F dated March 28, 2013 (File No. 001-34244).

About Hudbay

Hudbay (HBM.TO)(HBM) is a Canadian integrated mining company with assets in North and South America principally focused on the discovery, production and marketing of base and precious metals. Hudbay's objective is to maximize shareholder value through efficient operations, organic growth and accretive acquisitions, while maintaining its financial strength. A member of the S&P/TSX Composite Index and the S&P/TSX Global Mining Index, Hudbay is committed to high standards of corporate governance and sustainability. Further information about Hudbay can be found on www.hudbayminerals.com.

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