Hudbay Extends Offer for Augusta

TORONTO, ONTARIO--(Marketwired - May 27, 2014) - HudBay Minerals Inc. ("Hudbay") (TSX:HBN)(NYSE:HBM) announced today that it has extended its offer to acquire all of the outstanding common shares ("Augusta Shares") of Augusta Resource Corporation ("Augusta") not already owned by Hudbay for consideration per Augusta Share of 0.315 of a Hudbay common share (the "Offer") until 5:00 p.m. (Toronto time) on June 9, 2014.

Hudbay continues to evaluate the implications of ongoing developments with respect to Augusta's applications for permits required for the Rosemont project. On May 23, 2014, the U.S. Forest Service ("USFS") issued a news release disclosing that it was requesting the U.S. Fish and Wildlife Service re-initiate the formal consultation process on the Rosemont project. The USFS has stated that the Record of Decision for the Rosemont project will not be signed until the consultation process is complete and a new biological opinion is issued.

On March 14, 2014, Hudbay waived the condition that there shall have been validly deposited under the Offer and not withdrawn, at or prior to the expiration of the Offer, such number of Augusta Shares that, together with the Augusta Shares already owned by Hudbay and its affiliates, represents not less than 66 2/3% of the Augusta Shares (calculated on a fully diluted basis). Hudbay has not waived any other conditions of the Offer described in Section 4 of the Offer, "Conditions of the Offer", as amended.

How to Tender

Augusta shareholders that have already deposited to the Offer should not withdraw their shares as deposits are still valid for acceptance until 5:00 p.m. (Toronto time) on June 9, 2014. Hudbay encourages Augusta shareholders to read the full details of the Offer set forth in the take-over bid circular and accompanying offer documents, including the notices of variation, extension and change that have been, or will be, mailed to Augusta shareholders (collectively, the "Offer Documents"), which contain detailed instructions on how Augusta shareholders can tender their Augusta common shares to the Offer. For assistance in depositing Augusta common shares to the Offer, Augusta shareholders should contact the depositary for the Offer, Equity Financial Trust Company at 1-866-393-4891 (North American Toll Free) or 416-361-0930 ext. 205 (outside North America) or by email at [e-mail] or the Information Agent for the Offer, Kingsdale Shareholder Services at 1-866-229-8874 (North American Toll Free Number) or 1-416-867-2272 (outside North America) or by email at [e-mail].