Hudbay Reaches Major Milestone Towards Achieving its 2030 Greenhouse Gas Reduction Targets with the Signing of a Renewable Power Supply Agreement for its Constancia Mine in Peru

• Hudbay's Scope 1 and Scope 2 greenhouse gas emissions are expected to decline by 40% from its 2021 baseline as a result of the new Constancia renewable energy supply agreement.
  
• Energy supply contract with a new provider, ENGIE Energía Perú, to come into effect in January 2026 with a 10-year term.
• New contract includes a guaranteed supply of renewable energy to satisfy Constancia's anticipated future energy requirements.
  

TORONTO, April 27, 2023 -- Hudbay Minerals Inc. ("Hudbay" or the "company") (TSX, NYSE: HBM) is pleased to announce the signing of a new 10-year power purchase agreement with ENGIE Energía Perú for access to a 100% renewable energy supply to Hudbay's Constancia operations in Peru.

"Last December, Hudbay committed to reducing its 2030 greenhouse gas emissions by 50% and achieving net zero by 2050. The signing of this 10-year power purchase agreement marks a major milestone for achieving Hudbay's greenhouse gas reduction goals," said Peter Kukielski, Hudbay's President and Chief Executive Officer. "We are proud of this achievement as it places Hudbay firmly in reach of achieving a 50% emissions reduction by 2030 and on track for net zero by 2050. Additionally, Hudbay's low carbon footprint production will continue to produce the metals needed for the global transition to a low-carbon future."

Guaranteed Supply of Renewable Energy

Following the end of the current power supply agreement in Peru, energy will be supplied by ENGIE Energía Perú starting on January 1, 2026, with a 10-year term. The new agreement ensures a consistent and guaranteed supply of renewable energy sufficient for Hudbay's Constancia operation. The new contract provides improved flexibility in power supply levels and lower contracted costs as compared to the existing power supply contract. The contract functions on a consumption basis, ensuring the company's costs are variable based on actual usage, with no minimum spend or penalty for usage below the contracted rate.

In alignment with Hudbay's greenhouse gas ("GHG") emissions reduction initiatives, the new contract includes the granting of Renewable Energy Certificates ("RECs") to Hudbay as an assurance of the supply of renewable energy dedicated to Constancia's electricity consumption. These RECs will be applied to Hudbay's energy consumption to enable the company to have a 100% carbon-neutral energy supply at its Constancia operations. As a result of the application of these RECs, total Scope 1 and Scope 2 GHG emissions company-wide at Hudbay's current operations are expected to decline by 40% during the life of the contract, positioning the company well to achieve its 2030 climate change target of a 50% reduction in Scope 1 and Scope 2 GHG emissions.

About ENGIE

ENGIE Energía Perú, is one of the country's largest energy power generation and energy infrastructure companies with over 25 years of experience in Peruvian markets. This supplier has a strong track record working with mining, industrial and commercial sectors within the country. ENGIE has a local total annual capacity of 2,496 megawatts and a diversified range of energy generation, including thermal, hydro, solar and wind energy from 8 plants distributed in 4 regions of Peru. ENGIE Energía Perú is part of the ENGIE Group, present in 70 countries globally. ENGIE is listed on the Paris and Brussels stock exchanges (ENGI).

Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. Forward-looking information includes, but is not limited to, Hudbay's expectations regarding its ability to meet its GHG emissions reduction targets, the expected benefits of the new renewable power supply agreement for Constancia, including the expected utility of the RECs that will be granted under it, and Constancia's anticipated power requirements. 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 ability to obtain renewable energy from Engie for the duration of the contract, the utility of the RECs that are granted under the contract and no significant changes to Constancia's anticipated power requirements or the regulatory regime for power in Peru.

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), 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.

About Hudbay

Hudbay (TSX, NYSE: HBM) is a diversified mining company with long-life assets in North and South America. The company's Constancia operations in Cusco (Peru) produce copper with gold, silver and molybdenum by-products. Its Snow Lake operations in Manitoba (Canada) produce gold with copper, zinc and silver by-products. Hudbay has an organic pipeline that includes the Copper World project in Arizona and the Mason project in Nevada (United States), and its growth strategy is focused on the exploration, development, operation, and optimization of properties it already controls, as well as other mineral assets it may acquire that fit its strategic criteria. Hudbay's mission is to create sustainable value through the acquisition, development and operation of high-quality, long-life deposits with exploration potential in jurisdictions that support responsible mining, and to see the regions and communities in which the company operates benefit from its presence. Further information about Hudbay can be found on www.hudbay.com.

For investor and media inquiries, please contact:

Candace Bru?le?
Vice President, Investor Relations
(416) 814-4387
candace.brule@hudbay.com