Hudbay Completes Offering of US$170,000,000 Senior Unsecured Notes

TORONTO, ONTARIO--(Marketwired - Aug. 6, 2014) - HudBay Minerals Inc. ("Hudbay" or the "company") (TSX:HBM) (NYSE:HBM) today announced that it has completed its previously announced offering of US$170 million aggregate principal amount of its 9.50% senior unsecured notes due October 1, 2020 (the "Notes"). The Notes are in addition to the US$750 million aggregate principal amount of 9.50% senior unsecured notes that Hudbay issued in September 2012, June 2013 and December 2013 (the "Existing Notes"). The Notes were priced at 107% of the aggregate principal amount, providing the company with gross proceeds of US$181.9 million and will yield 8.03% to maturity. Hudbay plans to use the net proceeds from the offering for the repayment of existing debt of its new approximately 96%-owned subsidiary, Augusta Resource Corporation ("Augusta"), and for general corporate purposes.

The Notes have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any other jurisdiction. The Notes have not been qualified by a prospectus in Canada. Unless they are registered or qualified by a prospectus, the Notes may be offered only in transactions that are exempt from registration under the Securities Act, prospectus qualification under Canadian securities laws or the securities laws of any other jurisdiction. In the United States, the Notes will be offered only to "qualified institutional buyers" (as defined in Rule 144A under the Securities Act) and outside the United States to non-U.S. persons in compliance with Regulation S under the Securities Act. In connection with the offering of the Notes, Hudbay has entered into a registration rights agreement pursuant to which it has agreed to offer to exchange the Notes for identical new notes registered under the Securities Act or, under certain circumstances, to cause a shelf registration statement providing for the resale of the notes to become effective.

The Notes will constitute a part of the same series of notes as the Existing Notes for all purposes of the indenture and once exchanged pursuant to the exchange offer are expected to be fungible and have the same CUSIP number as the Existing Notes.

This news release is neither an offer to sell nor the solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale is unlawful.