constancia mine site visit presentation sept 2014 final1030 v001 o569aq

ACCORDING TO PLAN

CONSTANCIA MINE SITE VISIT

September 2014

CONSTANCIA PRESENTATION l 2

Cautionary Information

Forward Looking Information

This presentation contains “forward-looking statements” and “forward-looking information” (collectively, “forward-looking information”) within the meaning of applicable

Canadian and United States securities legislation. All information contained in this presentation, other than statements of current and historical fact, is forward-looking

information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “budget”, “guidance”, “scheduled”,

“estimates”, “forecasts”, “strategy”, “target”, “intends”, “objective”, “goal”, “understands”, “anticipates” and “believes” (and variations of these or similar words) and

statements that certain actions, events or results “may”, “could”, “would”, “should”, “might” “occur” or “be achieved” or “will be taken” (and variations of these or similar

expressions). All of the forward-looking information in this presentation is qualified by this cautionary note.

Forward looking information includes, but is not limited to, statements with respect to the anticipated timing, mechanics, completion of the subsequent acquisition

transaction to acquire the remaining shares of Augusta Resource Corporation (“Augusta”) the permitting, development and financing of Augusta’s Rosemont copper

project (the “Rosemont project”), Hudbay’s objectives, strategies, intentions, expectations and guidance and future financial and operating performance and prospects,

production at Hudbay’s 777, Lalor and Reed mines and initial production from the Constancia project, continued processing at Hudbay’s Flin Flon concentrator, Snow

Lake concentrator and Flin Flon zinc plant, Hudbay’s ability to complete the development of Hudbay’s Lalor and Constancia projects and the anticipated scope and cost

of any development plans for these projects, anticipated timing of Hudbay’s projects and events that may affect the company’s projects, including the anticipated issue

of required licenses and permits, Hudbay’s expectation that it will receive the remaining deposit amount under its amended precious metals stream transaction with

Silver Wheaton Corp. (“Silver Wheaton”) and that additional funding will be available if needed under Hudbay’s standby credit facility for Constancia, the anticipated

effect of external factors on revenue, such as commodity prices, anticipated exploration and development expenditures and activities and the possible success of such

activities, estimation of mineral reserves and resources, mine life projections, timing and amount of estimated future production, reclamation costs, economic outlook,

government regulation of mining operations, and business and acquisition strategies.

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 us 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 success of mining, processing, exploration and development activities; the accuracy of geological, mining

and metallurgical estimates; the costs of production; the supply and demand for metals Hudbay produces; no significant and continuing adverse changes in financial

markets, including commodity prices and foreign exchange rates; the supply and availability of reagents for Hudbay’s concentrators; the supply and availability of

concentrate for Hudbay’s processing facilities for the company’s concentrate; the supply and the availability of third party processing facilities for Hudbay’s concentrate;

the supply and availability of all forms of energy and fuels at reasonable prices; the availability of transportation services at reasonable prices; no significant

unanticipated operational or technical difficulties; the execution of Hudbay’s business and growth strategies, including the success of Hudbay’s strategic investments

and initiatives; the availability of financing for Hudbay’s exploration and development projects and activities; the ability to complete project targets on time and on

budget and other events that may affect Hudbay’s ability to develop Hudbay’s projects; the timing and receipt of various regulatory and governmental approvals; the

availability of personnel for Hudbay’s exploration, development and operational projects and ongoing employee relations; Hudbay’s ability to secure required land rights

to complete its Constancia project; maintaining good relations with the communities in which Hudbay operates, including the communities surrounding the Constancia

project and First Nations communities surrounding the Lalor project and Reed mine; no significant unanticipated challenges with stakeholders at Hudbay’s various

projects, including the company’s newly acquired Rosemont project; no significant unanticipated events or changes relating to regulatory, environmental, health and

safety matters; no contests over title to Hudbay’s properties, including as a result of rights or claimed rights of aboriginal peoples; the timing and possible outcome of

pending litigation and no significant unanticipated litigation; certain tax matters, including, but not limited to current tax laws and regulations and the refund of certain

value added taxes from the Canadian and Peruvian governments; no significant and continuing adverse changes in general economic conditions or conditions in the

financial markets; and the timing and completion of a subsequent acquisition transaction in connection with Hudbay’s acquisition of Augusta.


Cautionary Information (continued)

Forward Looking Information (continued)

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, the development of the Rosemont project not occurring as planned, the

exercising of dissent and appraisal rights by Augusta shareholders should a subsequent acquisition transaction be undertaken in connection

with Hudbay’s acquisition of Augusta, Augusta continuing as a majority-owned subsidiary of Hudbay should a subsequent acquisition

transaction not be completed, the inaccuracy of Augusta’s public disclosure and representations in the support agreement upon which Hudbay’s

offer to acquire Augusta was predicated, the failure to obtain required approvals or clearances from government authorities on a timely basis,

risks generally associated with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy

prices and general cost escalation), uncertainties related to the development and operation of Hudbay’s projects (including the impact on

project cost and schedule of construction delays and unforeseen risks and other factors beyond the company’s control), depletion of Hudbay’s

reserves, risks related to political or social unrest or change and those in respect of aboriginal and community relations, rights and title claims,

operational risks and hazards, including unanticipated environmental, industrial and geological events and developments and the inability to

insure against all risks, failure of plant, equipment, processes, transportation and other infrastructure to operate as anticipated, compliance with

government and environmental regulations, including permitting requirements and anti-bribery legislation, dependence on key personnel and

employee relations, volatile financial markets that may affect Hudbay’s ability to obtain financing on acceptable terms, uncertainties related to

the geology, continuity, grade and estimates of mineral reserves and resources and the potential for variations in grade and recovery rates,

uncertain costs of reclamation activities, Hudbay’s ability to comply with its pension and other post-retirement obligations, the company’s ability

to abide by the covenants in Hudbay’s debt instruments or other material contracts, tax refunds, hedging transactions, as well as the risks

discussed under the heading “Risk Factors” in this presentation and 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

presentation or to explain any material difference between subsequent actual events and any forward-looking information, except as required by

applicable law.


Cautionary Information (continued)

The scientific and technical information in respect of Hudbay contained in this presentation related to the Constancia project has been prepared by or under the supervision of Cashel Meagher, P.Geo., Hudbay’s Vice President, South America Business Unit. The scientific and technical information related to all other sites and projects of Hudbay contained in this presentation has been prepared by or under the supervision of Robert Carter, P.Eng., Hudbay’s Director, Technical Services. Messrs. Meagher and Carter are Qualified Persons for the purposes of NI 43-101 – Standards of Disclosure for Mineral Projects. (“NI 43-101”). The mineral reserve and resource estimates included in or underlying assumptions referenced in this presentation were prepared in accordance with NI 43-101 and the Canadian Institute on Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves: Definitions and Guidelines. Mineral resources that are not mineral reserves do not have demonstrated economic viability. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, please see the Technical Reports for each of Hudbay’s properties as filed on SEDAR at www.sedar.com.

The disclosure in this presentation uses mineral resource classification terms and mineral resource estimates that comply with NI 43-101. NI 43-101 establishes standards for all public disclosure a Canadian issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all reserve and resource estimates contained herein have been prepared in accordance with NI 43-101. These standards differ significantly from the mineral reserve disclosure requirements of the SEC set forth in Industry Guide 7. Consequently, reserve and resource information contained herein is not comparable to similar information that would generally be disclosed by U.S. companies in accordance with the rules of the SEC.

In particular, the SEC’s Industry Guide 7 applies different standards in order to classify mineralization as a reserve. As a result, the definitions of proven and probable reserves used in NI 43-101 differ from the definitions in SEC Industry Guide 7. Under SEC standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Among other things, all necessary permits would be required to be in hand or their issuance imminent in order to classify mineralized material as reserves under the SEC standards. Accordingly, mineral reserve estimates referred to herein may not qualify as “reserves” under SEC standards.

In addition, the terms “measured mineral resources,” “indicated mineral resources” and “inferred mineral resources” are used to comply with the reporting standards in Canada. The SEC’s Industry Guide 7 does not recognize mineral resources and U.S. companies are generally not permitted to disclose resources in documents they file with the SEC. Investors are specifically cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into SEC defined mineral reserves. Further, “inferred resources” have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, investors are also cautioned not to assume that all or any part of an inferred resource exists. It cannot be assumed that all or any part of “measured mineral resources,” “indicated mineral resources,” or “inferred mineral resources” will ever be upgraded to a higher category. Investors are cautioned not to assume that any part of the reported “measured mineral resources,” “indicated mineral resources,” or “inferred mineral resources” contained herein is economically or legally mineable. For the above reasons, information contained herein containing descriptions of mineral reserve and resource estimates is not comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC.

1. Project Overview

2. Project Management

3. Mine Operations

4. Human Resources Staffing & Training

5. Corporate Affairs & Social Responsibility

6. Exploration

Appendix

Table of Contents


1 Project Overview



Project Timeline & History

2010 2011 2012 2013 2014 2015

ESIA permit

received

Nov 2010

Note: All timelines are estimates

US$116mm

Constancia pre-

construction

program begins

Mar 2011

Initial resource

announced at

higher grade

Pampacancha

deposit

Apr 2012

Neighbouring

community

agreements

reached

H1 2012

Beneficiation

concession

permit received

Jun 2012

Updated capital

cost estimate

indicates

increase of

~10%

Aug 2013

ESIA Modification

1 approved

Sep 2013

Hudbay’s board

approves

construction of

Constancia

Aug 2012

All critical

path families

resettled

Apr 2014

Pre-stripping

commences

Mar 2014

Powerline

energized

Aug 2014

Hudbay acquires

Constancia

Jul 2011

Expected first

ore production

Q4 2014

Expected

commercial

production

Q2 2015


Construction Progress

Lima

PERU

Constancia

2013

Over 16 million man-

hours without lost time

accident recently

achieved

Project ~85% complete

as at June 30, 2014

On track for first

production in Q4 2014,

commercial production

in Q2 2015

2014

Location & Infrastructure

Infrastructure & power expected to be available to meet Constancia project schedule


83km access road from Yauri

> Upgraded for concentrate haulage post

commissioning

Tintaya power substation 70km away

> Construction of power transmission line from Tintaya

complete and was energized in August 2014

> Socabaya to Tintaya 220kV transmission line

upgrade is complete and was energized in April 2014

Rail-head at Imata 150km away

> Pursuing bi-modal transportation solution

~475km from Matarani Port by road

Port access and power supply secured under

10-year contracts


Key Project Metrics

Ownership 100%

Mine life 22 years

Daily ore throughput 80k tpd

Mine and mill unit cost1,2 US$7.48/tonne

Years 1-51 Years 6-221 Life of Mine1

Avg. annual Cu production3 116k tonnes 71k tonnes 82k tonnes

Cash cost per Cu lb4 US$0.98/lb US$1.37/lb US$1.25/lb

Avg. annual sustaining capital US$80 million US$38 million US$47 million

Source: Hudbay company disclosure

1. LOM as per NI 43-101 Technical Report on the Constancia Project dated October 15, 2012 and subsequent updates to project estimates in public disclosure

2. Combined mine and mill unit operating costs per tonne of ore processed

3. Production is contained metal in concentrate

4. Net of by-products. Includes impact of silver and gold streams. Assumed metal prices per the Silver Wheaton stream agreement are as follows: Gold US$400/oz, Silver US$5.90/oz. Other metal price assumptions

include: Molybdenum 2014-US$12/lb, 2015-US$13/lb, 2016-US$13/lb, LT-US$13.50/lb; Gold 2014-US$1,350/oz, 2015-US$1,325/oz, 2016-US$1,300/oz, 2017-US$1,275/oz, LT-US$1,250/oz. Excludes profit sharing

> The March 2014 reserve update incorporated an expected tailings facility

expansion allowing for the conversion of a portion of the mineral resources into

reserves, resulting in a mine life extension to 22 years (from 16 years)


Flow Sheet

2 Project Management


Safety Share

Constancia project has over 30 M man-hours worked with only 13 LTI´s

and has completed over 16 million man-hours since the last LTI


Lightning Protection at Constancia

Richard Kithil, President, National

Lightning Safety Institute (NLSI)

LIGHTNING PROTECTION

FOR FACILITIES, OPERATIONS &

PERSONNEL

> NLSI Lightning Protection Defenses Template

> Grounding, Bonding & Surge Protection

> Air Terminals, other forms of protection

> Safe Shelter Details

> Alert methods & protocol

Project Summary

Lima

PERU

Constancia

Lima

PERU

Constancia


Project has US$1.4 billion incurred

and has committed an additional

US$0.2 billion as of June 30, 2014

Highlights:

> Project approximately 85% complete as

at June 30, 2014

> Structures in place for water capture,

2015 dry season

> Mine pre-stripping started in March 2014

> All 4 mills in place with drives; alignment

in progress

> Flotation cells in place, concentrate

filters placed, thickener under

construction

> Power transmission line energized in

August 2014

Orientation from Site Visit

AREA 4

TEMASEK PRESENTATION l 15

1

2

3

4


External Partners


Stratcon GyM – Mining Contractor and Major Earth Works

> Established labour force and operating team

> Experience operating in Peru (Toromocho, El Brocal, Marcona, La Arena)

> Constancia earth works responsibilities include: bog dam, TMF East and West,

WRF and ponds, main sediment pond, haul road, construction roads, access

roads, diversion channels, Cunahuiri reservoir

Ausenco – Plant Construction

> Constructed and delivered similar plants in remote locations (Lumwana, Phu

Kham, Cadia East)

> Assembled sizable team in Latin America

Knight Piesold – Engineering

> Detailed engineering design

> Permit modification assistance (environmental compliance)


Heavy Civil Works

and Mining


Heavy Civil Works and Mining Milestones


> Tailing liner well under way and toe dam in progress

> Water capture initiated Dec 2013 in main sediment pond

> Mine pre stripping started in Mar 2014, on schedule for Q4 start-up

Main sediment pond Pre-stripping activities

Pre-Stripping Progress


> Approximately 19 million tonnes of

material moved to-date

> Approximately 400k tonnes of ore on

the ROM pad

Month Waste (tons) Ore (tons) Total (tons)

March 531,976 531,976

April 2,357,194 2,357,194

May 3,479,965 3,479,965

June 4,305,408 4,305,408

July 3,848,495 434,205 4,282,700

August 3,779,699 3,779,699

18,302,737 434,205 18,736,942

Total Pre-Strip Requirement 26 Million

Current ore stockpile at ROM pad

Heavy Civil Scope of Work


Facilities List • Bog Dam • TMF East • TMF West • WRF and Ponds • Main Sediment Pond • Topsoil Stockpile • Haul Road • Access Roads • Diversion Channels • Landfill Area


Site Water Management




Process Plant

Engineering,

Procurement and

Construction

Management


Process Plant Construction - Current Status


Ma

n-h

ou

rs

Time


> Engineering is substantially complete and procurement is at 93% complete

> In the primary crusher area, crusher and the modules of the reclaim conveyors to

the grinding area are being completed

> SAG and ball mill shells and heads are 100% assembled, including trunnion

installation, pinion and girth gears, currently under alignment

> In the flotation area, all rougher cells are assembled as well as all cleaning cells

and internal equipment installation


Offsite Infrastructure

& Services


Power



Power Transmission Line

> Engineering and procurement are 100% complete, tie in to high voltage side of

substation was completed in April, tower construction is 100% complete

> Successful negotiations with Glencore Tintaya for ROW agreement

> System was energized in August 2014

Power Supply

> Signed 10-year power purchase contract, with 5 year extension right

> Costs are in-line with expectations

Concentrate Transport



> Route from Constancia to Matarani is

460 kms total

> Proposals have been received and

reviewed 4 transport companies –

trucking firms have lowest rate

> Final contract negotiations underway

and contract expected to be awarded

in Q3 2014

> Service start date of Dec 2014

> Potential for bimodal transportation in

long-term

• Rail head located 150km away at

Imata

Port Services



TISUR – Port Operator

Under concession from the State

Facilities & Expansion plans

TISUR Grain Warehouse A5

> Enclose for concentrate service to

capacity of 25,000 wmt

Expansion Options

> Discussions with Ares warehouse

for addition capacity


Plant

Commissioning


Commissioning Stages


Responsibility

Construction Team

C0

Verification of Plant

and Equipment

Verification by the construction team that

the installation of an individual item of

plant or equipment meets the design

intent.




Responsibility

Construction Team

C0


and Equipment

Inspection and no-load energisation of an

item of plant or equipment by the

commissioning team to verify

conformance with design.

C1

Dry Commissioning

C0

Checksheets

+ Punch lists




Responsibility

Construction Team

C0


and Equipment

Testing of an individual or group of

integrated items of plant or equipment

under benign load (air or water) ultimately

demonstrating stable operation of a

process commissioning module under this

load.

C1

Dry Commissioning

C2

Wet Commissioning

C0

Checksheets

+ Punch lists

C1

Checksheets

+ Punch lists



Responsibility

Construction Team

Commissioning Team

C0


and Equipment

Initial introduction of ore and process

fluids and testing of an individual or group

of integrated process commissioning

modules to demonstrate stable operation

at pre-determined operation parameters.

C1

Dry Commissioning

C2

Wet Commissioning

C3

Ore Commissioning

C0

Checksheets

+ Punch lists

C1

Checksheets

+ Punch lists

C2 Checksheets +

Practical Completion

Certificate



Responsibility

Construction Team

Commissioning Team

Client Operation Team

C0


and Equipment

Completion of all commissioning

activities including preparation of

a Commissioning Closeout

Report and handover of agreed

commissioning documentation

deliverables to the Client

C1

Dry Commissioning

C2

Wet Commissioning

C3

Ore Commissioning

C4

Performance

Verification

C5

Area Acceptance

C6

Commissioning

Closeout

C0

Checksheets

+ Punch lists

C1

Checksheets

+ Punch lists

C2 Checksheets +

Practical Completion

Certificate


Projected Ramp-up vs. Antapaccay

> The near-by Antapaccay mine recently commenced production and has similar

size and flowsheet to Constancia (direct comparable)

> Projected 9-month ramp-up at Constancia is more conservative than actual ramp-

up achieved at Antapaccay


100

929292

7979

66

66

45

0

90

104104

63

8692

85

48

24

00

20

40

60

80

100

120

(% D

esig

n)

Month

Ore Grinding Ramp-up

CONSTANCIA

ANTAPACCAY

Project Closure Planning – De-mobilization


> Effective and efficient handover of documentation – data > information >

knowledge

> Closeout of punch lists – defects, warranty issues, early life failures and incomplete

work

> Commissioning and operational ramp-up – roles and responsibilities

> Multiple systems in commissioning, early operations complexity – steep learning

curve

> Post contract support

> Integration with Hudbay’s IT systems and ERP

> Progressive closeout

> Asset protection – security assessment and implementation

> Post closeout reviews

3 Mine Operations


Annual Tonnage Movement

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

Annual Total Movement

Crusher Waste Dump Rehandle


To

nn

ag

e

Constancia Project - General Flowsheet of Haulage Network

Hi Zn SP

Constancia Pit

Pampacancha Pit

MG SPHG SP

WRF PAG/NAG

NAG SP

Legend

Direct Movement

Rehandle Movement

Aternative: Pampacancha as Backfill

Process Plant

Copper Concentrate

Molybdenum Concentrate PORT

4.4 Km2.9 Km

2.5 Km 2.5 Km 2.5 Km

7.0 Km6.6 Km

4.5 Km

5.0 Km

5.6Km

9.3 Km

6.7Km

3.3 Km

2.4 Km2.4 Km

2.4 Km

Haulage Network


Mine Equipment

0

10

20

30

40

50

60

70

80

90

0

5

10

15

20

25

30

35

40

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

Mine Equipment Requirement

Truck - CAT 793F Drill Rig - Pit Viper 271 - RCS Shovel, Hirachi EX5600 - 6 Loader - CAT 994H P13DEC, Tonnage Movement, Mt

T

o

n

n

a

g

e

x

m

i

l

l

o

n

U

n

i

t

s

o

f

E

q

u

i

p

m

e

n

t


1. Mine Planning – MTP (2014-2015)


Mine Operation – Drilling & Blasting

• Burden (m): 8

• Spacing (m): 9

• Stemming (m): 8.5

• Blasting projects to date: 14

• Blasted holes to date: 1,614

• Tonnage blasted to date: 4,474,852 t

• Types of blast holes: Production ,buffer and pre-splitting

• Explosives used: HA28, HA37, HA46, HA64 (depending on

the presence of water and the strength of the rock)

• Powder factor(explosive kg/break tonnage): 0.14

Pit Viper 271

• Average blast

hole length (m):

15.8

• Blast hole

diameter (inch): 9

7/8

• Instant Drilling

Speed (m/h): 81

• Average Drilling

Speed (m/h): 55

• Mechanical

Availability (%):

95

• Utilization (%): 86


Mine Operation - Loading

Hitachi EX-5600

• Bucket capacity (m3): 27

• Equipment performance (tph):

3,364

• Mechanical Availability (%): 94


CAT 994 H

• Bucket Capacity (m3): 19


1,764




Mine Operation - Hauling

CAT 793 F

• Max gradient (%): 10

• Rolling Resistance (%): 2-4

• Payload (t): 227


510




Mine Geology: Ore Control Routine – Sampling &

Logging BH

Blasthole Sampling Blasthole logging

Pit Face Mapping Database Validation


Weekly Plan – Polygons by Destination

(Bench 4335- 4350)

MATPS: Pre-Stripping Material

4335

4350


Mine Maintenance Reconciliation

MIÉ JUE VIE SÁB DOM LUN MAR

20 21 22 23 24 25 26

EQUIPOS DE OPERACIÓN

1 PE-C0001 250 12 Horas 8 Horas2 PE-C0002 125 1 Horas 1.5 Horas6 CF-C0001 125 1 Horas 0 Horas7 PH-C0001 125 6 Horas 10 Horas8 PH-C0002 125 2 Horas 2.5 Horas

12 CM-C0001 125 1 Horas 1 Horas13 CM-C0002 125 1 Horas 0 Horas14 CM-C0003 250 8 Horas 0 Horas15 CM-C0004 2000 24 Horas 19.7 Horask CM-C0005 125 1 Horas 1 Horas

18 CM-C0007 125 1 Horas 1 Horas CM-C0008 125 1 Horas 0 Horas

22 CM-C0011 250 12 Horas 16.7 Horas23 CM-C0012 2000 24 Horas 24.5 Horas24 CM-C0013 500 8 Horas 11.5 Horas25 CM-C0014 500 10 Horas 19 Horas26 CM-C0015 125 1 Horas 1 Horas28 CM-C0017 125 1 Horas 0 Horas29 CM-C0018 125 1 Horas 0 Horas35 TO-C0001 125 1 Horas 1.6 Horas36 TO-C0002 125 1 Horas 1 Horas37 TR-C0001 125 1 Horas 0 Horas38 MO-C0001 125 1 Horas 0 Horas

MO-C0002 250 5 Horas 8.5 Horas

3 2 1 1 2 2 3 125 Horas 128.5 Horas 103% TIEMPO (Hrs)

3 3 3 3 4 4 4 24 16 67% CANT. (PMs Ejecutados)

21.0 26.0 33.0 13.0 2.0 2.0 2.0 125 Horas

HORAS DE

INTERVENCIONHORAS REALES

OK

OKse aprovecha euna parada correctiva

Se reprograma por horas de trabajoDemora en la prueba de hermeticidad

OKDemora en la evaluacion de parametros

Equipo en stand by por produccion se re-Se aprovecha el stand by del equipo

OK

DETALLE DE LAS DESVIACIONES

Se reprograma el cambio de parabrisas OK

TODOS

ItemCODIGO EQUIPO

AMT

OKSe reprograma por horas de trabajo

Inoperativo por recarga del sistema contra

Demoras en las pruebas de OK

Se reprograma por horas de trabajoInoperativo por recarga del sistema contra

Se reprograma por horas de trabajoSe aprovecha el stand by del equipo

OKOK

Se reprograma por horas de trabajo


Mine Maintenance KPI´s


3. G&H: Geotechnical Work

A

Section A–A:

View of

achieved angles

versus design

angles. The

achieved angles

are 60°.

PIT OPERATIONAL WORK NAG OPERATIONAL WORK

The current discharge

on the WRF – NAG is

been developed to

form the final lifts 4140

and 4160, and to form

the lift 4180.

Panoramic view of bench 4425 – 4410, Constancia Pit.


Water Management Plan

Panoramic View Actual - WRF


4 Human Resources Staffing & Training


Operations Management

Operations DirectorEric Caba

23 yrs / Metallurgical Engineer

Process Plant Manager

Hugo Granados35 yrs/ Metallurgical

Engineer

Mine Manager

John Gutierrez40 yrs / Mining

Technical Services ManagerJavier Toro

17 yrs/ Mining Engineer

Health & SafetyManager

Felix Galvez12 yrs / Work

Relations

Logistics &Admin Manager

John Cederberg24 yrs / Public

Accountant

HR Superintendent

Jose Bandini19 yrs / Bussiness

Administration

EnvironmentalManager

Julio Roncal21 yrs / Civil Engineer

Total HC 269

Operations

Management

Technical

Services

Process

Plant Mine HSE

Logistics &

Administration

Other

Functional

Support

Finance HR

Operations 2 26 149 3 17 37 16 10 9


Production Superintendent

Oscar Alvarez27 yrs/ Chemical Engineer

Electrical/Instrumental Superintendent

Carlos Herrera32 yrs / Mechanical &

Electrical Engineer

Metallurgical SuperintendentMarcial Medina

13 yrs / Metallurgical

Engineer

Mechanical Maintenance SuperintendentManuel Sanchez

30 yrs / Mechanical Eng

Process Plant Manager

Hugo Granados35 yrs/ Metallurgical

Engineer

Administrative Assistant

Vacant

OperationsDirectorEric Caba

23 yrs / Metallurgical Engineer

TailingSuperintendent

Vacant

Process Plant

Total HC 149

Admin

Ope

Maintenance Metallurgical Electrical /

Instrumental

Production

Tailing

Operations 2 41 16 32 42 16


“The objective is to have the right person for the right

job at the right time, and well trained”

TRAINING • Train the Trainers:

train staff in safety,

technical and

leadership

competences.

• Training for Engineers,

Technicians

• Training for Workers &

Workers from

Communities

STAFFING FOR

SAP • Recruit 6

colleagues for SAP

Maintenance

• Interaction with

Ausenco-Rylson in

SAP maintenance

STAFFING FOR

COMMISSIONING • Recruit 27 colleagues to

support the pre-

commissioning and

commissioning phase.

• A total of 33 colleagues are

involved in Commissioning.

READY TO START • 100% of positions

duly fit

• 100% of positions

duly trained.

JAN

2014

NOV 2014

Master Plan for Staffing & Training

STAFFING FOR

OPERATIONS Recruit colleagues for

Operations phase,

based on recruitment

and training planning.


28 28 28 28 28 28 28 28 28

0

59 70 76

89 91 93 105 109

134

195 250

11 6

13 2 2

12 4

25

61

27

19

98 104

117 119 121

133 137

162

223

250

269

0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

Jan '14 P0

Feb '14 P0a

Mar '14 P1

Apr '14 P2

May '14 P3

Jun '14 P4

Jul '14 P5

Aug '14 P6

Sep '14 P7

Oct '14 P8 y P8-C

Nov '14 P9

HeadCount Planning Forecast September 2014

Current HC Lima Current HC Campsite # of HC to Recruit Total HC

Workforce Planning Forecast



Manpower will significantly decline over the coming months as

contractors are being demobilized

Total Site Staffing 2014 - Including Contractors

-

1,000

2,000

3,000

4,000

5,000

6,000

Total Site Staffing

Recruitment Schedule 2014

(*) Priority P8-C: 17 positions that will be filled by communities’ members, whom were trained by CETEMIN.

Area / Positions Priority

Start

Recruitment

Process

Effective Hire

Month

# of

Colleagues to

Recruit

Technical Services & Commissioning P0 Nov-13 Jan-14 11

Superintendent / Commissioning P0a Dec-13 Feb-14 6

SAP & Commissioning P1 Dec-13 Mar-14 13

Supervisors P2 Jan-14 Apr-14 2

Superintendent / Supervisor P3 Jan-14 May-14 2

Supervisors / Senior / Auxiliary / Commissioning P4 Feb-14 Jun-14 12

Managers / Technicians P5 Mar-14 Jul-14 4

Supervisors / Senior / Technicians / Auxiliaries P6 Mar-14 Aug-14 25

Supervisors / Operators P7 Apr-14 Sep-14 61

Superintendent / Seniors / Operators P8 y P8-C (*) Apr-14 Oct-14 27

Administratives P9 Jun-14 Nov-14 19

182

Current Positions for Operations - Support Areas 87

269Total HC

Total to Recruit

75


Ensure the successful of the start up of the plant process, training our

colleagues since the beginning, using our own resources, their knowledge, and

giving the opportunity to develop our people, and creating our own Hudbay

mind-set

> Focus in safety, technical & leadership skills:

• Safety DS 055-2010 (ISEM / IGH / IPEN)

• Filters/ Couriers/ Thickeners / Cells (OUTOTEC)

• Crusher & Mills / Leadership Competencies/ Train of Trainers Simulator

(TECSUP)

• Simulator (ANDRITZ / TECSUP)

• DCS (SIEMENS)

• Mill & Crusher (FLSMIDTH)

> Tools

• Training presentation

• Manuals

• Simulator

• On the job training in the commissioning phase

Training Strategy


Jan - May June July Aug Sep Oct Nov Training for

Commissioning Siemens Electrical /

Instrumental Lima

Training for Workers & Community Workers

Sep '14

Process Plant Construction Completed

Hire for Commissioning

Phase (2)


& SAP Maintenance

Phase (3)

Training for Engineers & Technicians

Aug - Sep'14


& SAP Maintenance

Phase (13)


Phase (14)

CETEMIN Training Nov ‘13 – May ’14

To fill 17 positions:

2 Mechanical Workshop

6 Samplers operators

6 Tailing Dump Operator 3 Crusher Conveyor Operator

Training Schedule

Start the hiring for Operations (115), based on the schedule

Training for Commissioning Siemens

Electrical / Instrumental Site

Aug – Sep ‘14

Tecsup Supervisors

Arequipa Jul – Aug ‘14

Mills & Primary Crusher FLSmidth

Supervisors / Engineers Arequipa

Simulator - Tecsup Supervisors / Ctrl Room Ope

Site

Train the Trainers

Jul - Aug ‘14

Training under Scope of Work of the PO

Outotec Supervisors

Lima Sep – Oct ‘14

Done

Training in Gold Fields La Cima

Aug - Sep ‘14


5 Corporate Affairs & Social

Responsibility


Permitting (1/2)

CONSTRUCTION

• PERMITS FOR CONSTRUCTION ARE IN PLACE:

• Earthmoving activities, process plant and ancillary facilities, TMF, camps,

MSP, WRF and collection and retention ponds, NAG stockpile, topsoil

stockpiles, sediment ponds, haul and access roads and Cunahuiri

reservoir.

• Other permits obtained: authorizations to use and collect water, discharge

permits, fuel permits, water treatment plant permits, permits for power

generation and environmental certifications.

OPERATIONS

• PERMITS TO START PRE-STRIPPING AND CONSTANCIA

DEPOSIT EXPLOITATION ARE IN PLACE

• Mine permit and its amendment, certificate of mine operator, authorization

to use explosives and permanent magazines and warehouses.

• PENDING CRITICAL PERMITS FOR OPERATING

PROCESS PLANT

• Underground Water License Stage 4 / FD: Late Sept-2014

• Surface Water License Stage 4 / FD: Oct-2014

• Operation license for TMF 4050 and Process Plant line 2 / FD: Nov-2014

• Operation license for Process Plant line 1 & moly plant / FD: Jan-2015


76%

10%

10%

4%

Obtained

Pending (not required for operation)

Pending (required for operations - not critical)

Pending (required for operations - critical)

Permitting (2/2)

RISK DESCRIPTION / ACTIONS

CUNAHUIRI

CONTINGENCY

PLAN

• DUE TO LACK OF ACCESS TO ICHUNI VALLEY, A CONTINGENCY PLAN (CP) WAS DEVELOPED IN ORDER TO MITIGATE the lack of the Cunahuiri reservoir and the possibility to capture water therein for operations and compensation.

• CP poses a risk because it changes compensation commitment and water balance reflected in other permits.

• In order to address this change, Hudbay is exploring the possibility to prepare a second environmental

technical report or to include the CP during the round of observations of the ESIA´s second amendment.

• Likewise, in order to allow construction of infrastructure comprised in the CP (specially NC4 channel), Hudbay has included the CP within the surface water license (Stages 2 and 3). It was approved on April, 2014.

CRITICAL

PERMITS TIED TO

CONSTRUCTION

SCHEDULE

• SOME PERMITS REQUIRE INSPECTIONS TO BE GRANTED. This means that the corresponding facility must be completed and ready to operate in order to be inspected by the authority.

• This poses a risk in the case of the Surface water license stage 4 and the Process plant operation licenses.

• ANY DELAY IN CONSTRUCTION ALSO DELAYS THESE PERMITS.


Resettlement: Ichuni

NEGOTIATION

PROCESS

# of

families

Public deed signed 34

In negotiation 2

Total: 36

HOUSING STATUS # of

houses

Delivered-To-Owner 32

Pending Delivery 0

Total: 32


Local Employment and Procurement


LABOR FORCE

˃ 727 workers from direct & indirect area of Influence

CONTRACT OF RENTAL

EQUIPMENT BY COMMUNITIES

˃ Chiloroya: 223

˃ Uchucarco: 164

FOOD SUPPLIERS IN OPERATION CONTRACT SERVICE

˃ 9 from Uchucarco

˃ 4 from Chilloroya

2013 Business Invoicing to Project

Chilloroya Uchuccarcco

S/. 30,703,201

S/. 10,022,381

S/. 2,988,900 S/. 2,443,488

Rent a Car Food Services

Rent a Car- Equipment and Heavy Equipment


2014 Business Invoicing to Project (1/2)

S/. 0

S/. 1,000,000

S/. 2,000,000

S/. 3,000,000

S/. 4,000,000

S/. 5,000,000

S/. 6,000,000

Jan Feb Mar Apr

Rent a Car- Equipment and Heavy Equipment



2014 Business Invoicing to Project (2/2)

S/. 0

S/. 50,000

S/. 100,000

S/. 150,000

S/. 200,000

S/. 250,000

S/. 300,000

S/. 350,000

S/. 400,000

S/. 450,000

Jan Feb Mar Apr May Jun

Food Services



Demobilization

637 local workers have been

demobilized (January – August 2014)

Owned RentedUn-

registeredExternal TOTAL

Heavy

equipment9 16 7 77 109

Light

equipment22 10 7 34 73

Machinery-

yellow line5 4 4 25 38

EQUIPMENT AND MACHINERY DEMOBILIZED


Grievance Process


Closed case

92%

Closed/ Permanent monitoring

3%

Processing

5%

Grievance Management Count of status (percentage)

Grand Total: 337

76

52 209

Risk of Harm Number of complaints and grievances

With Cusco Regional Government and Provincial Municipality of Chumbivilcas

To finance the new Hospital of Chumbivilcas’ feasibility studies

With District of Chamaca

To finance three projects approved as a conclusion of the Dialogue &

Development Roundtable

With District of Velille

To support the project “Sierra Productiva” (agricultural sector)

With District of Livitaca

To co - finance the improvement and expansion of the service of basic sanitation,

together with the district municipality and the community of Chilloroya, as well as

to equip the Technologic Institute of Livitaca

Agreements: Local & Regional Governments


Ministry of Development & Social Inclusion, and Cusco Regional Government

To fully finance the “Development of Competences for Young People in Chumbivilcas” project, to support

them to improve their capacities in the transition stage between secondary education and insertion into

the productive world

Ministry of Energy & Mines

To support the delivery of kitchens that use liquefied petroleum gas, and to support the distribution and

installation of photovoltaic systems -solar panels- in our area of influence

Ministry of Labor

To cooperate in training, bonding and employability of the vulnerable population in our area of influence, in

order to extend the coverage of the State on employment, employability and entrepreneurship

Ministry of Agriculture

To develop the program of agricultural development in Chumbivilcas, seeking sustainable development

promoting and boosting the economy of its inhabitants through the use of modernized irrigation systems,

cultivation of pastures, breeding of livestock (cattle and sheep), and implementation of dairy plants

Agreements with National Government


Asociación Vida Peru

To manage donations of medicines, medical equipment, educational materials and other goods, and

to finance all the logistics that is necessary for the distribution of these goods among the poorest

health centers and communities of our area of influence

Universidad Nacional San Antonio Abad del Cusco (UNSAAC)

To jointly develop projects for education and training in cultural and productive research in the area

of influence of Constancia, and implement the Hudbay scholarship, the “classroom Hudbay", and

the International Centre for the mining production and regional development

Universidad Nacional San Agustín de Arequipa” (UNSA)

To develop joint education and training projects with the participation and resources that both

institutions have to promote professional development, infrastructure improvement, and knowledge

exchange, and implement the Hudbay scholarship and the “classroom Hudbay"

Others

In addition to the above mentioned agreements, periodically we carry out medical campaigns and

solid waste collection campaigns for the benefit of the population of adjacent districts and

communities

Agreements with Other Institutions


6 Exploration


Prolific Belt Provides Opportunities


Aeromagnetic Survey Map

• Total Cost: $ 582,194

• Time: 26 days

• Area-Km2: 3,197.50

• Line-Km: 7,219.20


Appendix


Current Schedule

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Permitting

Front End Engineering Design

Construction Camp

Procurement

Community Agreements

Board Approval

Power Line

TMF and WRF

Plant

Commissioning and Ramp Up

2011 2012 2013 2014 2015

Mine Permit

Commercial

Production Q2 2015


Access Road Map


Hudbay access road

Las Bambas access road

Peru Reserves Overview

Constancia Mineral Reserves

Category Ore (M tonnes) Cu (%) Mo (g/t) Au (g/t) Ag (g/t)

Proven 483 0.32 93 0.040 3.04

Probable 94 0.22 61 0.036 2.77

Pampacancha Mineral Reserves


Proven 23 0.52 142 0.298 4.28

Probable 20 0.44 159 0.252 3.74

As at January 1, 2014

Total Mineral Reserves


Total Proven 506 0.33 95 0.052 3.09

Total Probable 114 0.26 78 0.074 2.94

Total Reserves 620 0.32 92 0.056 3.07

Note: totals may not add up correctly due to rounding


Peru Resources Overview

Constancia Mineral Resources

Category M (tonnes) Cu (%) Mo (g/t) Au (g/t) Ag (g/t)

Measured 68 0.22 59 0.036 2.17

Indicated 293 0.20 58 0.033 1.96

Inferred 200 0.19 51 0.031 1.86

Pampacancha Mineral Resources


Measured 5 0.41 69 0.243 5.46

Indicated 6 0.34 98 0.211 4.68

Total Mineral Resources


Measured + Indicated 372 0.20 59 0.039 2.09

Inferred 200 0.19 51 0.031 1.86

As at September 30, 2013

Note: totals may not add up correctly due to rounding


Peru Reserves and Resources Information

For additional details relating to the estimates of mineral reserves and resources at the Constancia project, including data verification and

quality assurance/quality control processes refer to “The Constancia Project, National Instrument 43-101 Technical Report” as filed on

SEDAR by Hudbay on November 6, 2012.

The Constancia and Pampacancha mineral reserves are based on a Peruvian Sole: US Dollar exchange rate of 2.85:1 and the following long

term metals prices: copper price of US$3.00 per pound; silver price of US$25.00 per ounce; gold price of US$1,250.00 per ounce; and

molybdenum price of US$13.50 per pound.

The Constancia and Pampacancha mineral resources correspond to a resources pit shell. A pit optimization to delimit the portion of the block

model having reasonable prospects for economic extraction was performed.

The Constancia resource pit consists of a non-operational pit of Measured, Indicated and Inferred resources diluted to a 10x10x15m full

block size using a 0.12% copper cut-off based on a copper price of US$2.88 per pound and a molybdenum price of US$16.00 per pound,

copper recovery of 89%, molybdenum recovery of 60%, processing costs of US$5.50 per tonne and mining costs of US$1.30 per tonne.

The Pampacancha resource pit consists of a non-operational pit of Measured, Indicated and Inferred resources diluted to a 10x10x15m full

block size using a 0.1% copper cut-off based on a copper price of US$3.00 per pound, a molybdenum price of US$13.50 per pound, silver

price of US$25.00 per ounce, gold price of US$1,250 per ounce, copper recovery of 85%, molybdenum recovery of 40%, gold and silver

recovery of 65%; processing costs of US$4.72 per tonne and mining costs of US$1.90 per tonne.

The primary consideration to accommodate the increased Constancia mineral reserve in the Constancia life of mine plan (“LOM”) was the

confirmation through pre-feasibility investigation to increase the tailings dam height to accommodate this extra tonnage and the waste rock

facility configuration. The resulting LOM has increased to 22 years from 16 years. In this process some of the major cost components have

been updated to reflect some known actual costs such as energy, fuel, concentrate transport and port charges. The resulting change is an

average cost of US$0.72 per pound of copper produced net of by product credits from a previously disclosed US$0.66 per pound of copper

in the first full five years of production. Contained copper metal in concentrate is expected to average 116,000 tonnes per year over the first

five full years versus 118,000 tonnes as previously disclosed. Over the remaining years, the cost per pound of copper net of by product

credits has increased to US$1.14 per pound from US$1.11 per pound; and the contained copper metal in concentrate is expected to average

67,000 tonnes per year versus 77,000 tonnes per year as previously disclosed. The cost per pound of copper net of by product credits does

not include the impact of the precious metals streaming transactions.

Measured and indicated mineral resources were estimated in house. The process includes determination of the integrity and validation of the

data collected, including confirmation of specific gravity, assay results and methods of data recording. The process also includes determining

the appropriate geological model, selection of data and the application of statistical models including probability plots to establish continuity

and model validation.


Precious Metals Stream Overview

US$750 million in upfront deposit payments from Silver Wheaton for delivery of:

100% of payable gold and silver from 777 mine until the end of 2016;

and 50% of payable gold and 100% of payable silver thereafter for the remainder of

life of mine

100% of payable silver from Constancia project

Along with upfront payments, Hudbay will receive US$400 per ounce for gold and

US$5.90 per ounce of silver1

Additional US$135 million deposit payment from Silver Wheaton against

delivery of:

50% of payable gold from the Constancia project

In addition to the deposit payment, Hudbay will receive the lesser of the market

price and US$400 per ounce for gold delivered to Silver Wheaton2

Precious metals stream transaction preserves precious metals upside potential

for Hudbay shareholders

Precious metals production from Lalor excluded

Excludes land package outside of Constancia and Pampacancha, including

Chilloroya

1Subject to 1% annual escalation starting 2015 2 Subject to 1% annual escalation starting 2016


ACCORDING TO PLAN

CONSTANCIA MINE SITE VISIT

September 2014

constancia mine site visit presentation sept 2014 final1030 v001 o569aq

Documents

forwardlooking information

cautionary information

forwardlooking statements

development of hudbays

hudbays objectives

hudbays ability

hudbays expectation

constancia projects