TSX, NYSE – HBM 2026 No. 7 Hudbay Provides Annual Reserve and Resource Update with Mine Life Extensions and Improved Three-Year Production Outlook
TSX, NYSE – HBM
2026 No. 7
Hudbay Provides Annual Reserve and Resource Update with Mine Life Extensions
and Improved Three-Year Production Outlook
Toronto, Ontario, March 27, 2026 – 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 147,000 i tonnes per year over the next three
years, an increase of 24% from 2025 production. Consolidated copper production is expected to
average 159,000i tonnes 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 243,000i
ounces 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 90,000i tonnes 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 190,000i ounces 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 57,500i tonnes and 3 8,500i ounces, 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.
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2026 No. 7
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“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 87,500 i tonnes of copper and
18,500i ounces 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.
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2026 No. 7
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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.
1 Mineral 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.
5 Long-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.
6 There are no additional mineral resources left at Pampacancha where mining activities have been completed in 2025.
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2026 No. 7
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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 190,000 i ounces of gold and
11,500i tonnes 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.
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2026 No. 7
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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.
1 Mineral 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.
3 Individual stope gold grades at Lalor and 1901 were capped at 10 grams per tonne.
4 1901 mineral reserves and resources are estimated using a minimum NSR cut-off of C$199 per tonne.
5 Mineral resources do not include factors for mining recovery or dilution.
6 Base 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.
7 Long-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.
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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.
1 Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability.
2 WIM 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.
3 3 Zone mineral reserves assume processing recoveries of 85% for gold based on processing through New Britannia's leach circui t.
4 Long-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.
5 Mineral resources do not include factors for mining recovery or dilution.
6 Gold mineral resources are estimated based on the assumption that they would be processed at the New Britannia concentrator.
7 New 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 Britanni a).
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.
4 Watts 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 smal l
variations does not have any impact on the mineral resource estimates.
5 Watts 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.
6 Pen II mineral resources are estimated using a minimum NSR cut-off of C$75 per tonne.
7 The 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+.
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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, t he 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 increment al 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.
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• 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.
Talbot Initial Drill Results Confirm Resource Expansion Potential
Talbot is a copper -zinc-gold rich volcanogenic massive sulfide (“VMS”) deposit located within trucking distance of
existing processing infrastructure in Snow Lake. Successful drilling campaigns are expected to expand the resource
base and support a pre-feasibility study (“PFS”) aimed at upgrading mineral resources to mineral reserves and
extending the overall mine life of the Snow Lake operations. In April 2025, Hudbay announced the signing of an
exploration agreement with the Mosakahiken Cree Nation covering exploration activities within their traditional and
ancestral territory, including at Talbot.
In July 2025, Hudbay commenced an extensive summer drilling program at Talbot focused on expanding the known
mineralization at depth, testing geophysical targets and conducting an infill drill program in the upper portion of the
orebody to support the PFS, as seen in Figure 2. As part of the initial drilling program in 2025, Hudbay drilled five holes
to test the continuity of the Talbot deposit at depth, with all holes intersecting intervals of copper mineralization including
2.4% copper and 1.8 grams per tonne gold over 10.4 metres. In addition, another hole intersected copper mineralization
over an estimated length of 19.7 metres based on core logging, for which assay results are pending.
The 2026 drilling program will continue with an expanded fleet of eight drill rigs deployed to test additional targets and
expand the footprint of the deposit at depth. The efforts will determine the future scope of a PFS including shaft versus
ramp access and the best location for a future exploration shaft. Hudbay intends to update Rockcliff’s prior mineral
resource estimate for Talbot using Hudbay’s standard methods that have demonstrated high mineral reserve
conversion rates.
3) Exploring Large Land Package for New Anchor Deposit to Significantly Extend Mine Life
A majority of the land claims acquired as part of the Rockcliff acquisition in 2023 have been untested by modern deep
geophysics, which was the discovery method for the Lalor deposit. A large geophysics program is currently underway
consisting of surface electromagnetic surveys using cutting edge techniques that enable the team to detect targets at
depths of almost 1,000 metres below surface. The planned geophysics program includes 6 00 kilometres of ground
electromagnetic surveys and an extensive airborne g eophysics survey. Over the past two years , Hudbay has
progressed the geophysics program mapping, as seen in Figure 1, which will continue in 2026 with the outlined regions
of focus.
Expanded Flin Flon Exploration Partnership with Marubeni and JOGMEC
On January 22, 2026, the Company announced the signing of an amended and restated option agreement with Japan
Organization for Metals and Energy Security (“JOGMEC”) and Marubeni Corporation (“Marubeni”), where Hudbay
granted JOGMEC an option to acquire a 1 0% interest in three projects located within trucking distance of Hudbay’s
processing facilities in Flin Flon, Manitoba. In order to exercise its option, JOGMEC is required to fund at least C$6
million in exploration expenditures over a period of approximately three years, with Hudbay acting as the operator
carrying out the exploration activities. The agreement is an amendment and restatement of the option agreement with
Marubeni from March 2024, pursuant to which Marubeni’s wholly -owned Canadian subsidiary was granted an option
to acquire a 20% interest in the three projects, provided it, funds at least C$12 million in exploration expenditures over
the designated earn-in period, which is inclusive of past contributions made by Marubeni since March 2024.
The option agreement focuses on three projects in the Flin Flon region, namely Cuprus -White Lake, Westarm and
North Star, which were selected by Marubeni prior to the original March 2024 agreement and following a period of
detailed due diligence. All three properties hold past producing mines that generated meaningful production with