• Hudbay’s Scope 1 and Scope 2 greenhouse gas emissions are expected to decrease by 40% from its 2021 baseline as a result of the new Constantia Renewable Energy Supply Agreement.
• Energy supply contract with new operator ENGIE Energía Perú, effective January 2026 for a 10-year term.
• The new contract includes a guaranteed supply of renewable energy to meet Constantia’s anticipated future energy requirements.

TORONTO, April 27, 2023 (GLOBE NEWSWIRE) — Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, New York Stock Exchange: HBM) is pleased to announce the signing of a new 10-year Power Purchase Agreement with ENGIE Energía Perú for access to 100% renewable energy supply to Hadbay’s Constantia operations in Peru.

“Last December, Hudbay committed to reduce its greenhouse gas emissions by 50% in 2030 and reach net zero by 2050. This is a major milestone in achieving our effective gas reduction targets,” said Peter Kukielski. President and Chief Executive Officer of Hudbay. “We are proud of this achievement as we have achieved a 50% emission reduction by 2030 and are on track to net zero by 2050. Production will continue to produce the metals needed for the global transition to a low-carbon future.”

Guaranteed supply of renewable energy

Energy will be supplied by ENGIE Energía Perú for a period of 10 years from January 1, 2026, following the termination of the current power supply contract in Peru. The new contract will ensure a consistent and guaranteed supply of sufficient renewable energy for Hudbay’s Constantia operations. The new contract will provide greater flexibility in power supply levels and lower contract costs compared to existing power supply contracts. The contract works on a consumption basis, ensuring that the company’s costs fluctuate based on actual usage, with no minimum spend or penalties for usage below the contract rate.

In line with Hudbay’s greenhouse gas (“GHG”) emissions reduction initiative, the new contract includes a renewable energy certificate (” REC”) grants. These RECs will apply to Hudbay’s energy consumption and enable the company to have a 100% carbon neutral energy supply for its Constantia operations. As a result of the application of these RECs, Hudbay’s total corporate scope 1 and scope 2 GHG emissions from its current operations are expected to decrease by 40% over the life of the contract, meeting its 2030 climate change goals You can position your company appropriately to Reduce Scope 1 and Scope 2 GHG emissions by 50%.

About Engie

ENGIE Energía Perú is one of the country’s largest energy generation and energy infrastructure companies with over 25 years of experience in the Peruvian market. This supplier has a strong track record of working with the domestic mining, industrial and commercial sectors. ENGIE has a total regional annual capacity of 2,496 MW and a diverse range of energy generation, including thermal, hydro, solar and wind energy from eight power plants distributed in his four regions in Peru. ENGIE Energía Perú is part of the ENGIE Group, which is present in 70 countries around the world. 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 US securities laws. Forward-looking information includes Hudbay’s expectations regarding its ability to meet its GHG emission reduction targets, the expected benefits of Constancia’s new renewable power supply contract, and the expected utility of the REC granted under it. but not limited to: That, and Constantia’s expected power requirements. Forward-looking information is not and cannot be a guarantee of future results or events. Forward-looking information is based, among other things, on opinions, assumptions, estimates and analyzes that we believe to be reasonable at the time the forward-looking information is provided, but is inherently subject to material risks. , uncertainties, contingencies and other factors. Factors that could cause actual results or events to differ materially from those expressed or implied by the forward-looking information.

Significant factors or assumptions identified by Hudbay and applied by the company in forming its conclusions or in making the projections or forecasts contained in the forward-looking information include the agreements, RECs granted under the agreements; and no significant changes to Constantia’s anticipated power requirements or Peru’s power regulatory regime.

Risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by forward-looking information include, but are not limited to, the mining industry, including economic factors. Generally associated risks, which may include, but are not limited to, future commodity prices, currency fluctuations, energy prices and general cost increases, and Hudbay’s most recent year Risks discussed under the heading “Risk Factors” on the following information form.

In the event that one or more risks, uncertainties, unforeseen circumstances or other factors occur or that any factor or assumption proves to be incorrect, actual results will be expressed in forward-looking statements. or may differ materially from what is implied. Therefore, undue reliance should not be placed on forward-looking information. Hudbay undertakes no obligation to update or revise any forward-looking information after the date of this news release or to materially differ between actual events and the forward-looking information after the date of this news release, except as required by applicable law. shall not be obliged to explain

About Hadbay

Hudbay (TSX, NYSE: HBM) is a diversified mining company with long-lived assets in North and South America. The company’s Constantia operations in Cusco (Peru) produce copper and by-products of gold, silver and molybdenum. The Snow Lakes operation in Manitoba, Canada produces gold, including by-products of copper, zinc and silver. Hudbay has an organic pipeline that includes the Copper World project in Arizona and the Mason project in Nevada (USA), and its growth strategy focuses on exploring, developing, operating and optimizing the properties it already manages. focus on transformation. We may acquire mineral assets that meet our strategic criteria. Hudbay’s mission is to create sustainable value through the acquisition, development and operation of high-quality, long-lived mineral deposits with exploration potential in jurisdictions that support responsible mining, and to protect the communities and communities in which it operates. To allow the community to benefit from its existence. For more information on Hudbay, please visit: http://www.hudbay.com/ www.hudbay.com.

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