Mr. Peter Kukielski reports

HUDBAY ANNOUNCES CLOSING OF $600 MILLION STRATEGIC INVESTMENT FROM MITSUBISHI CORPORATION FOR 30 per cent JOINT VENTURE INTEREST IN COPPER WORLD

Hudbay Minerals Inc. has closed the previously announced strategic investment from Mitsubishi Corp. for a 30-per-cent joint venture interest (the JV transaction) in Copper World LLC, which owns the fully permitted Copper World project in Arizona. On closing, Mitsubishi contributed approximately $420-million of cash to Copper World LLC, and it will contribute an additional $180-million in cash to complete its initial investment within 18 months in accordance with the terms of the definitive subscription agreement, as further described in Hudbay's Aug. 13, 2025, news release. Mitsubishi will also fund its pro-rata 30-per-cent share of future equity capital contributions required to construct Copper World. All dollar amounts are in United States dollars, unless otherwise noted.

"Closing of the JV transaction with Mitsubishi marks the beginning of a long-term strategic partnership, an exciting new chapter for Copper World and an important growth milestone for Hudbay," said Peter Kukielski, Hudbay's president and chief executive officer. "Thanks to the collaborative efforts between the Hudbay and Mitsubishi teams, we are pleased to welcome our new Copper World joint venture partner. This strategic partnership will leverage our organizations' complementary strengths to deliver this world-class project that will increase Hudbay's consolidated copper production by more than 50 per cent and create significant value for all of our stakeholders. We are ideally positioned to build one of the next major copper mines in the U.S. and produce 'made in America' copper for the U.S. critical minerals supply chain."

Hudbay continues to prudently advance Copper World toward a sanction decision in 2026

Realized accretive JV transaction -- The successful closing of the highly accretive $600-million JV transaction represents a significant derisking milestone in advancing Copper World and further validates the premium long-term value of this world-class asset. The $420-million of proceeds from Mitsubishi will be used to directly finance the remaining definitive feasibility study (DFS) costs and presanction costs in addition to the initial project development costs for Copper World. Mitsubishi will contribute an additional $180-million within 18 months to complete its initial investment and will also finance its pro-rata 30-per-cent share of future equity capital contributions. The JV Transaction increases the project IRR (internal rate of return) to Hudbay to approximately 90 per cent based on prefeasibility study (PFS) estimates.

Secured premier strategic joint venture partner -- Mitsubishi is one of the largest Japanese trading houses with a global mining presence and a significant U.S.-based business. Mitsubishi is the partner of choice with investments in a world-class portfolio of large and high-quality copper assets, including five of the top 20 copper mines globally by 2024 production. This partnership validates the attractive long-term value of Copper World as a world-class copper asset and endorses the strong technical capabilities of Hudbay. It also represents the beginning of a long-term strategic partnership, and the parties are identifying other opportunities for collaboration to advance their respective copper growth strategies.

Achieved key elements of Hudbay's three prerequisites (3-P) plan -- Hudbay has achieved the final key elements of its prudent 3-P financial strategy for the development of Copper World with the closing of the JV transaction and the achievement of stated balance sheet targets. Before accounting for proceeds from the JV transaction, Hudbay has already achieved more than $600-million in cash and cash equivalents and reduced its net debt to adjusted EBITDA ratio to 0.5 times as of Sept. 30, 2025, far exceeding the stated balance sheet targets. The Mitsubishi initial investment and its future pro-rata equity capital contributions, together with the Wheaton Precious Metals Corp. stream, provide significant financial flexibility by reducing Hudbay's estimated share of the remaining capital contributions to approximately $200-million based on PFS estimates and deferring Hudbay's first capital contribution to 2028 at the earliest.

Feasibility study and detailed engineering under way -- Feasibility activities for Copper World are well under way with expected completion of the DFS in mid-2026. Hudbay has continued to execute detailed engineering work and other derisking activities, in preparation for a Copper World sanction decision expected in 2026.

About Hudbay Minerals Inc.

Hudbay is a copper-focused critical minerals mining company with three long-life operations and a world-class pipeline of copper growth projects in Tier 1 mining jurisdictions of Canada, Peru and the United States.

Hudbay's operating portfolio includes the Constancia mine in Cusco (Peru), the Snow Lake operations in Manitoba (Canada) and the Copper Mountain mine in British Columbia (Canada). Copper is the primary metal produced by the company, which is complemented by meaningful gold production, and byproduct zinc, silver and molybdenum. Hudbay's growth pipeline includes the Copper World project in Arizona (United States), the Mason project in Nevada (United States), the Llaguen project in La Libertad (Peru), and several expansion and exploration opportunities near its existing operations.

The value Hudbay creates and the impact it has is embodied in its purpose statement: "We care about our people, our communities and our planet. Hudbay provides the metals the world needs. We work sustainably, transform lives and create better futures for communities." Hudbay's mission is to create sustainable value and strong returns by leveraging its core strengths in community relations, focused exploration, mine development and efficient operations.

We seek Safe Harbor.