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CONSTANCIA PRESENTATION HBM

Constancia Mine Site Visit September 2015

CONSTANCIA PRESENTATION

Cautionary Information

2

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, production, cost and capital and exploration expenditure guidance, anticipated production and costs at Constancia and events that may affect Constancia’s operations, including logistical and infrastructure issues, the anticipated effect of external factors on revenue, such as commodity prices, estimation of mineral reserves and resources, mine life projections, 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 that Hudbay produces; no significant and continuing adverse changes in financial markets, including commodity prices and foreign exchange rates; the supply and 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; the ability to successfully resolve logistical issues with respect to the transportation and shipping of concentrates; no significant unanticipated operational or technical difficulties; the availability of additional financing, if needed; 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 mine the Pampacancha deposit in Peru; maintaining good relations with the communities in which Hudbay operates, including the communities surrounding its Constancia mine; no significant unanticipated challenges with stakeholders; 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 Peruvian government; and no significant and continuing adverse changes in general economic conditions or conditions in the financial markets.

CONSTANCIA PRESENTATION 3

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), uncertainties related to the operation of Constancia and development of Pampacancha, dependence on key personnel and employee and union relations, risks related to political or social unrest or change, risks 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, planned infrastructure improvements in Peru (including the expansion of the port in Matarani) not being completed on schedule, compliance with government and environmental regulations, including permitting requirements and anti-bribery legislation, depletion of the company’s reserves, volatile financial markets that may affect Hudbay’s ability to obtain financing on acceptable terms, the failure to obtain required approvals or clearances from government authorities on a timely basis, 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, the company’s ability to comply with its pension and other post-retirement obligations, Hudbay’s ability to abide by the covenants in its debt instruments and other material contracts, tax refunds, hedging transactions, as well as the risks discussed under the heading “Risk Factors” in the company’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 technical and scientific information in this presentation related to the Constancia project has been approved by Cashel Meagher, P. Geo, Hudbay’s Vice President, South America Business Unit. Mr. Meagher is a qualified person pursuant to NI 43-101. 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 of scientific and technical information may be affected by any known environmental, permitting, legal title, taxation, sociopolitical, marketing or other relevant factors, please see the Technical Report for the Constancia Project as filed by us on SEDAR at www.sedar.com. This presentation has been prepared in accordance with the requirements of the securities laws in effect in Canada, which may differ materially from the requirements of United States securities laws applicable to U.S. issuers. Information concerning Hudbay’s mineral properties has been prepared in accordance with the requirements of Canadian securities laws, which differ in material respects from the requirements of the Securities and Exchange Commission (the “SEC”) set forth in Industry Guide 7. Under the SEC's Industry Guide 7, 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 of the reserve determination, and the SEC does not recognize the reporting of mineral deposits which do not meet the SEC Industry Guide 7 definition of “Reserve”. In accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) of the Canadian Securities Administrators, the terms “mineral reserve”, “proven mineral reserve”, “probable mineral reserve”, “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Definition Standards for Mineral Resources and Mineral Reserves adopted by the CIM Council on December 11, 2005. While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are recognized and required by NI 43-101, the SEC does not recognize them. You are cautioned that, except for that portion of mineral resources classified as mineral reserves, mineral resources do not have demonstrated economic value. Inferred mineral resources have a high degree of uncertainty as to their existence and as to whether they can be economically or legally mined. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Therefore, you are cautioned not to assume that all or any part of an inferred mineral resource exists, that it can be economically or legally mined, or that it will ever be upgraded to a higher category. Likewise, you are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be upgraded into mineral reserves.

Cautionary Information (continued)


1. Mine Overview

2. Mine Management

3. Mine Operations

4. Human Resources Staffing and Training

5. Corporate Affairs and Social Responsibility

6. Exploration

7. Risks

8. Appendix

Table of Contents

5


Mine Overview 1 6


4 7 8

9

11

Refuge stations for emergency and lightning events

Primary Crusher

Ore Stock Pile

6 5 1

2

3

10

12

Safety Share

7


August 2015 INC FREQ FA FREQ MA FREQ RWC FREQ LTA DAYS FREQ SEV MANHRS Hudbay Peru 4 10.2 2 5.1 1 2.5 0 0 0 0 0 0 78,532

Hudbay Peru Contractors 10 2.5 6 1.5 2 0.5 0 0 0 0 0 0 814,825

Total Hudbay Peru and Contractors 14 3.1 8 1.8 3 0.7 0 0 0 0 0 0 893,357

Year to Date

INC FREQ FA FREQ MA FREQ RWC FREQ LTA DAYS FREQ SEV MANHRS Hudbay Peru 60 21.6 16 5.7 11 4 1 0.4 1 5 0.4 2 556,705

Hudbay Peru Contractors 61 2.1 16 0.5 6 0.2 0 0 4 88 0.1 3 5,834,832

Total Hudbay Peru and Contractors 121 3.8 32 1 17 0.5 1 0 5 93 0.2 3 6,391,537

Safety Indicators

Note: INC – incident FA – incident requiring first aid MA – incident requiring medical attention RWC – restricted work case LTA – lost time accident SEV – severity


Solid waste storage area

1 2

3 4 5

1. Metal transfer station

2. Wood storage

3. Storage of volatiles 4. Dangerous goods

5. Non-dangerous waste 6. Office and change room

Environmental – New Waste Transfer Site


AREA 4

TEMASEK PRESENTATION l 10

1

2

3

4

10

Orientation for Site Visit


2010 2011 2012 2013 2014 2015

ESIA permit received

Nov 2010

Note: All timelines are estimates

US$116 mm 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

~15%

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

First concentrate production

Dec 2014

Commercial production achieved

Apr 2015

11

Constancia Timeline & History


Infrastructure and power are performing as expected

12

• 83 km access road from Yauri Upgraded for concentrate haulage post commissioning

• Tintaya power substation 70 km away No material interruptions to power to date

• Rail-head at Imata 150 km away Pursuing bi-modal transportation for long term solution

• ~470 km from Matarani Port by road

• Port access and power supply secured under 10-year contracts

Location & Infrastructure


Mine Management 2 13


Operations Management

Total Operations Head Count: 342

Operations Management

Technical Services

Process Plant HS Environmental Security Logistics &

Administration Finance IT HR Other

Functional Support

Operations 8 45 158 8 11 3 41 19 4 11 34

Regional Management 0 0 0 0 0 0 0 2 0 0 7

Other 0 0 23 0 0 0 4 2 0 1 2

Intern 0 3 1 1 1 0 0 0 0 1 2


Mine Operations 3 15


Key Project Metrics

Ownership 100%

Mine life 22 years

Life of mine daily ore throughput1 80k tpd 2015 Mine and mill unit cost guidance 2,3 US$9.0 – 10.9

Years 1-51 Years 6-221 Life of Mine1

Avg. annual Cu production4 116k tonnes 71k tonnes 82k tonnes

Cash cost per lb Cu5 US$0.98/lb US$1.37/lb US$1.25/lb

Avg. annual sustaining capital6 US$80 million US$38 million US$47 million

Source: Hudbay company disclosure 1. 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. Reflects combined mine and mill costs per tonne of milled ore. Excludes mine and mill costs and tonnes associated with pre-commercial production mine output from Constancia in

2015 3. Combined mine and mill unit costs are presented in USD, include G&A costs and reflect the deduction of expected deferred stripping costs. 4. Production is contained metal in concentrate 5. 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

6. Excludes deferred stripping costs

16

• March 2014 reserve update incorporated an expected tailings facility expansion, allowing for conversion of a portion of the mineral resources into reserves, resulting in mine life extension to 22 years (from 16 years)


Production Profile

17

• Higher copper production in years 1-5 due to higher grades • Low cash cost profile maintained over mine life

Source: Hudbay company disclosure 1. NI 43-101 Technical Report on the Constancia Project dated October 15, 2012, and updated to reflect Constancia mineral reserves as at January 1, 2014, except for 2015 guidance, which is for payable copper production of 100-125 kt, and combined mine, mill and G&A costs per tonne of ore processed of US$9.0-10.9. 2. Cash cost per lb Cu is 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

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

0

50,000

100,000

150,000

200,000

250,000

300,000

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

Cas

h C

ost/l

b (n

et o

f by-

prod

uct c

redi

ts) (

US$

/lb)

Paya

ble

Cu

Prod

uctio

n (0

00 lb

s)

Constancia Payable Cu Production and Cash CostsPayable Cu Cash Costs / lb Cu (net of by-product credits)

2015

G

1

2


Flow Sheet

Currently under commissioning

To be installed in 2017

18



19

• Route from Constancia to Matarani is ~470 km

• Potential for bimodal transportation in long-term

Rail head located 150km away at Imata

Condorama

Concentrate Transport


Concentrate Inventory and Trucking Capacity

20

Concentrate Inventory (Sept. 19, 2015)

(000 tonnes) Inventory Designed Storage Capacity Normal Level

Mine 65 9 5-7

Port 15 25 15

Trucking Fleet Buildup

(~Month-End) Fleet Size Trucks per Day (30 t) Trucking Capacity (tpd)

July 130 41 1,230

August 133 41 1,620

September 174 54 1,770

October 205 63 2,040

November 250 77 2,310


Logistics – Copper Concentrate Trucking

21

CHALLENGES • Plant performance outpacing transportation of concentrate

Current concentrate stockpile at site ~65,000 tonnes

• Road closure Imata-Condorama Government is upgrading road from Imata to Condorama with asphalt

Current road work causes some of our fleet to increase trucking turn around time from 2 days to 3 days Road work will stop mid-October for rainy season

• Trained drivers for dangerous goods Lack of qualified drivers in Peru

• Competitive environment - Cerro Verde and Las Bambas Las Bambas – to begin trucking concentrate in January

Las Bambas – to convert to bimodal transport when port complete

Cerro Verde – to truck expansion concentrate until port is ready • El Niño

Weather phenomenon likely to interrupt road transportation through wet season


Mitigation of Concentrate Trucking

• Short term Adding extra trucks each week with different contractors

Negotiated longer window of travel with road work contractor to decrease turn around time Coordinating and monitoring training and recruitment programs of trucking contractors for more qualified drivers

Hired specialty consulting service to monitor and optimize contractor performance on route of travel

Adding community-owned fleet (25 trucks) Total of 211 trucks by mid-October

• Long term Reviewing feasibility of bi-modal transport (rail from Imata)

Testing lighter aluminum trailers with increased capacity Road work from Imata to Condorama to cease mid-October

Completion of Pier F at Matarani port will free up trucking resources as Las Bambas will go to rail

22


Access Road Map

Hudbay access road Las Bambas access road

23

• Process underway to change concentrate haulage route to Las Bambas road; 7 km connecting road required to be built


Port Services


24

• TISUR – port operator

• Under concession from state

• Pier C is current location of ship loader

• Hudbay current storage capacity Enclosed for concentrate service with capacity of 25,000 wmt

• Expansion update Pier F is location of new pier due March 2016

used by Hudbay)


Mine Fleet Maintenance

25

JAN FEB MAR APR MAY JUN JUL AUG YTD 2015 CAT 793F Utilization 69% 23% 46% 73% 88% 77% 69% 75% 65%

Availability 89% 95% 93% 90% 90% 91% 91% 90% 91% EX5600-6 Utilization 73% 21% 47% 57% 90% 84% 86% 85% 67%

Availability 90% 98% 96% 92% 92% 90% 90% 91% 92% CAT 994H Utilization 48% 45% 39% 34% 64% 65% 42% 70% 51%

Availability 97% 85% 84% 88% 74% 93% 95% 93% 89%

JAN FEB MAR APR MAY JUN JUL AUG YTD 2015 PV271 Utilization 18% 33% 68% 58% 57% 63% 64% 73% 54%

Availability 98% 96% 93% 92% 94% 94% 95% 91% 94% CAT 24M Utilization 74% 59% 57% 71% 87% 72% 39% 41% 64%

Availability 92% 88% 84% 85% 88% 88% 67% 63% 82% CAT D10T Utilization 77% 51% 58% 79% 86% 83% 77% 68% 73%

Availability 92% 75% 90% 92% 96% 95% 88% 92% 90% CAT 854K Utilization 76% 41% 47% 82% 92% 84% 81% 84% 73%

Availability 92% 84% 99% 90% 95% 92% 84% 91% 91%


Fleet Productivity

26

Productivities JAN FEB MAR APR MAY JUN JUL AUG YTD 2015

Shovel EX5600-6 (dmt/hr) 2,681 3,375 2,918 3,518 3,711 3,698 3,722 3,777 3,552

Loader CAT 994H (dmt/hr) 1,740 1,660 1,075 1,662 1,493 1,992 1,391 879 1,384

Truck CAT 793F (dmt/hr) 414 471 513 571 682 718 757 809 765

Drill PV 271 (m/hr) 59 59 51 60 63 58 55 56 58


Annual Tonnage Movement

27

1. NI 43-101 Technical Report on the Constancia Project dated October 15, 2012 and subsequent updates to project estimates in public disclosure. 2014 reflects actual tonnage moved, and 2015 reflects forecast tonnage movement


Total Tonnes Mined

28

Pre-commercial


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

29


Mine Equipment

30

1. NI 43-101 Technical Report on the Constancia Project dated October 15, 2012 and subsequent updates to project estimates in public disclosure. 2014 reflects actual tonnage moved, and 2015 reflects forecast tonnage movement


Unit Operating Cost and Mill Throughput

31

1. Unit mine, mill and G&A costs for each month calculated by dividing total mine, mill and G&A costs by the total tonnage milled. Combined unit mine, mill and G&A cost for year-to-date commercial production refers to the period May-July, 2015, and excludes capitalized costs and pre-commercial production tonnage

Pre-commercial


Projected Ramp-up vs. Mine “X”

32

1. Months 1 to 8 are actual, and month 9 is forecast mill throughput

• Mine “X” mine recently commenced production before Constancia and has similar size and flowsheet to Constancia (direct comparable)


Mill Head Grade

33

1. Budget numbers are approximately 3 months offset from ramp-up in mine sequencing. September month-to-date numbers are as of September 19, 2015 and are preliminary


Copper in Concentrate Production

34

1. Budget numbers are approximately 3 months offset from ramp-up in mine sequencing. September month-to-date actual as of September 19, 2015 and is preliminary.


Copper Recovery

35

1. Budget numbers are approximately 3 months offset from ramp-up in mine sequencing. September month-to-date actual as of September 19, 2015 and is preliminary.


Mechanical Availability

36

1. Budget numbers are approximately 3 months offset from ramp-up in mine sequencing

Pre-commercial


Plant Objectives

• Achieve ramp up in the shortest possible time Tonnes processed

Metallurgical recovery

• Decrease operating costs

• Increase tonnes processed, without capital investment in new equipment – pure optimization

37


• Grate openings 100% 25 mm - 80% of free area clogged

• Time to fix: 3 months

Return conveyor belt with pebbles overloaded due to clogging of grates forcing reduction in throughput

Grinding Optimization

• Increase in SAG mill throughput without capital investment

Return conveyor belt with correctly-sized clean pebbles avoids overloading of mills, allowing increase in throughput

• Grate openings 50% 25mm and 50% 50mm

Before After


Average throughput July 65,330 TMS. Due to scheduled downtime for plant maintenance

August 78,138 TMS. Due to downtime for maintenance to change damaged grates

September 85,967 TMS. Modification of grate opening clearly resulted in increase throughput

Grinding Optimization

Trend in Daily Throughput

Plant downtime July 23-26

Tonn

age

(tpd)

Actual Budget

• Increase in SAG mill throughput without capital investment

39


Sample 27/02/2015 Apex 6" diametre

Sample 21/01/2015 Apex 8" diametre

Pulp density (kg/l) 1.30 1.23

Number of cyclones in operation 8 8

Cyclone pressure (psi) 15 23

Average tonnage (tmh/h) 2,000 1,292

Percentage circulating load (%) 184 194

Value of P80 passing cyclones (µm) 133 109

• Apex size change: Gmax D-15 cyclones on the primary grinding circuit

Grinding


Grinding

• Change from steel liners to rubber-steel liners in ball mill

• 60% decrease in weight • Longer life:18-20 months (vs. 8-12 months) • Increase availability of mills • Improved grinding efficiency • Lower price: 30% less • Noise reduction in the area


Flotation

Reagents DFS New Reagents Collector Ester Xantato AP3302-$/kg=8.70 Ditionocarbamato D101-$/kg=3.95

Frother Poliglycoles AF65-$/kg=5.70 Alcohol Glicol Poliglycol RE100-$/kg=3.10

42


Costs

• Benefitted from: Diesel: ~$0.80/l vs. $1.04/l

Tires: $38,000 vs. $55,000 Peruvian Sol: Fx ~3.2 vs 2.8 (10-15% of operating costs)

Power consumption: 10% lower than budget at steady state • Energy costs actual YTD US$0.0766/kwh vs. US$0.0755/kwh

• Offset by:

Construction to raise tailings dam height

Higher camp administration costs

43


Future Opportunities

• Las Bambas Heavy Haul Road (HHR)

• Trunnions change out

• Bimodal transport

• Self-perform mining

• Revisit vendor and contractor pricing

44


Permitting Update

• All required permits in hand

• Planning negotiations to acquire Pampacancha surface rights

• Pursuing necessary permits and classifications to utilize HHR


Resettlement: Ichuni

Negotiation process Number of families

Public deed signed 34

In negotiation 2 Total 36

• Waste dump plan modified to accommodate ongoing status

46


Human Resources Staffing and Training 4 47


Local Employment and Procurement

LABOUR FORCE

• 555 workers from direct and indirect area of influence

• Food suppliers in operation Uchuccarco: 4

Chilloroya: 3

• Contract for rental equipment with communities

Chilloroya: 159

Uchuccarco: 140

48


Local Procurement – 2015 YTD Aug

0.8

3.8

8.4

4.1 4.7

11.3

16.6

7.4

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

2012 2013 2014 2015

Uchuccarco Chilloroya

US$

(mill

ions

)

49


Local Employment

413

550

438

138

418

513

412

181

0

100

200

300

400

500

600

2012 2013 2014 2015

Uchuccarco Chilloroya

Num

ber o

f Ful

l-Tim

e Em

ploy

ees

50

Local Employment


Corporate Affairs and Social Responsibility 5 51


Grievance Process – 2015 YTD

52


CSR Approach - Institutional Relations

• Facilitating local government access to more national government funds Our Technical Assistance Office helps local authorities to get currently available funds

• Engaging other companies to use Works for Taxes mechanism Regional government and municipalities of Cusco have US$2.3 billion available in 2015 to fund development projects under this mechanism (US$86.5 million in municipalities of Chumbivilcas, and US$93.1 million in municipalities of Espinar)

Telefónica agreed to finance feasibility studies and work by the health center of district of Chamaca (~US$4.7 million)

• Bringing in funds and technical assistance from international sources Federation of Canadian Municipalities (FCM) Colleges and Institutes of Canada (CiCan)

Global Indigenous Development Trust (GIDT)

53

Higher impact and efficiencies Lower Hudbay CSR expenditures


Challenges for Local Governments in Accessing Funds

• Directly affecting access to Canon or Works for Taxes Bureaucracy that must be navigated in accessing the funds

Lack of a stable civil service to manage application and utilization of funds New authorities delaying previous leadership initiatives and beginning new initiatives due to short term of leadership (two years in communities, and four years in local governments with no re-election allowed)

• Indirectly affecting the access to Canon or Works for Taxes Easier for local community leadership to seek aid directly from mining companies

Lack of long term development plans in communities shift the community focus to “marketable” short term initiatives Lack of local government capacity

54


Contribution to Business Sustainability

• Ongoing strategy on Institutional Relations and Communications seeks to consolidate the image of Hudbay with our stakeholders within the Peruvian Governmental entities, at Central, Regional, Provincial & District levels, as well as in Congress, and Ombudsman Office; working together with private organizations

• Our statement: “Hudbay is seeking to achieve within its operations in Peru the highest possible standards in environmental and social responsibility, which contributes to the development of Cusco and Peru”

• In this sense, our current activities and efforts are focused on articulating the different agendas of those stakeholders into one consolidated plan to work together effectively in the social development/inclusion of Cusco and Peru, to create a welcoming and sustainable social environment at our mining operations

• Sustainable Development Award from the National Society of Mining, Petroleum and Energy in 2013 for the contribution of the Multisectoral Committee for Development

• Business Creativity Award, awarded by the Peruvian University of Applied Sciences in 2014 for creation of the Technical Assistance Office, responsible for providing advice and training to officials of the towns, to provide better public investment projects for approval by the government 55


Exploration 6 56


Active in Staking Claims

• 40,337 Ha in total

• 22,566 Ha old claims (Norsemont)

• Constancia area: 26 New Claims, 16,571 Ha since 2014

• Kaval: 2 Claims 800 Ha

• Lucmo: 1 Claim 400 Ha

57

KAVAL

CONSTANCIA LUCMO


Constancia New Claims - 16,571 Ha

NEW CLAIM-STAKING AS A RESULT OF 2014 AEROMAG SURVEY • Constancia South: 5 Claims 2,900 Ha

• Constancia West: 6 Claims 5,371 Ha

• Coporaque: 15 Claims 8,300 Ha

58


Lucmo - Expanding Exploration into New Areas

CRETACEOUS PORPHYRY COPPER BELT IN SOUTHERN PERU • Ore deposits:

Zafranal (Teck-AQM JV)

Pecoy (Trafigura-Pembrook JV)

Ocaña (Indico Resources) Lara(Lara Exploration)

• Early stage projects (drilled) Huachinga (Vale)

Almacen (Milpo)

Yanak (Alianza Minerals) Los Pinos (Tamerlane)

59

LUCMO

LUCMO

HUACHINGA

ALMACEN

YANAK


Kaval - Exploring in New Areas

KAVAL

60

• Location Located ~430 km north of Lima, in Huaylas Province, Ancash Department

Two claims, 800 Ha

One community - friendly to mining activity, and private property land owners

• Regional Geology Lower cretaceous sediments of Chimu-Santa-Carhuaz Formations, Goyllarisquizga Group

Tertiary Volcanic-Sedimentary Huaylas-Calipuy Group

Intrusive rocks from Cordillera Blanca Batholith and Coast Batholith

• Projects Pashpap, Cu-Mo porphyry

El Aguila, Cu-Mo porphyry

Racaycocha, Cu-Mo porphyry

Antamina, Cu-Zn-Mo skarn porphyry

Pierina, Au-Ag epithermal


Risks 7 61


Risks

CURRENT MAJOR RISKS • Concentrate transportation

• Pending port congestion at Matarani

• Ramp up KPIs

• Upcoming elections

• Transport safety

• El Niño

62


Metallurgical Recovery Discussion

ISSUE: PLANT NOT ACHIEVING NI 43-101 RECOVERY Correlation between metallurgical recovery and copper soluble grade established

Greater proportion of oxide minerals present in mixed transition zone and supergene at the top of the sequence than anticipated in the NI43-101, which are not recoverable in copper flotation plant. Ore interpretation in geological modeling was conservative in NI43-101 due to the fan drilling and greater space between intersections. As such we are encountering more ore in the upper sequences of the mining than modelled and this ore has greater content of oxide than anticipated.

Greater proportion of fines encountered in the ore material than previously anticipated in the NI43-101.

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A A’

A

A’

Mts DDH IntervalosPor Minar 2,923 68 90

CodigoTipo

MineralNro

Intervalos3 Supegene 234 Mixed 55 Hypogene 408 Skarn 22

90Total

Feasibility Study Metallurgical Samples – To Mine

• Cross section shows vast majority of metallurgical samples evaluated for feasibility study lie below and outside of current mining envelope. It is for this reason we did not properly characterize the oxide effect we are currently having.

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Mitigation of Reduced Recovery

• To date, reconciliation of the mill head grade is 5% higher than the reserve block model

• Throughput (at steady state) achieved during mining of supergene and mixed transition zone is greater than planned by ~5-10%

• Actual tonnage mined comparison with block model reserve is positive to date, but we do not believe this will materially persist as we mine deeper

We believe this effect will diminish in the mine plan until mid-2017, by which time the mine will be out of the top layer containing >10% CuOX in the Cu total head grade, and will return to NI 43-101 recoveries. We do not believe this will have an adverse effect on copper produced.

65

5% increase in throughput

5% increase in

grade

Similar Product

Reduced recovery

Net result = No change in output Processed Cu Mill Recovery Cu Recovered

Tonnes Head Grade To Concentrate Tonnes

NI43-101 assumptions 100,000 1.00% 88% 880

Current biases encountered 105,000 1.05% 80% 882


Appendix 8 66


Appendix

67


Permitting Update

PERMIT APPROVAL

Underground Water License Stage 4 September 25th, 2014

Process Plant Operation License (“Concesión de Beneficio”) and Phases 1 & 2 (crusher and line 2) December 22nd, 2014

Surface Water License Stage 4 March 31st, 2015

EIA second amendment April 17th, 2015

Mine Closure Plan amendment June 24th, 2015

Permanent fuel station July 31st, 2015

Process Plant Phase 3 (line 1 and moly plant) September 1st, 2015

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PERMIT STATUS

Underground water license amendment Requested on July 23rd, 2015 Expect approval by September 30th, 2015

San Antonio temporal grifo additional 6 month permit extension Requested on August 31st, 2015 Expect approval by October 16th, 2015

Environmental Technical Report to include 3 mineral stockpiles, TMF west bog storage facility, quarries, 3 DM’s, 2 temporal NAG stockpiles

Requested on August 14th, 2015 Expect approval by October 30th, 2015

Mining Technical Report to update the TMF dam regrowth schedule and incorporate spigots in the tailings disposal system (To be submitted in October 2015)

In preparation To be requested by October 16th 2015

TMF Dam regrowth operation permit To be requested following the TMF dam regrowth sequence

Additional explosive magazine In preparation To be requested by September 25th 2015

Explosives permits for continuing operations

Requested on August 7th, 2015 Expect approval by September 30th, 2015

69

Permitting Update

• Additional permits required to incorporate changes at Constancia and continue operations


Permitting Update

70

• Pampacancha 12 permits are required to allow the development and exploitation of the Pampacancha deposit. 2 of these permits have already been obtained (i.e. ESIA second amendment and Mines Closure Plan) and other 2 are under evaluation (ie. 2 CIRAs). Evidence of surface rights over the Pampacancha land is required to continue with the evaluation of the remaining 8 permits

• Las Bambas Heavy Haul Road (HHR) and access road Since July, 2014, Hudbay has been driving the classification of HHR as a national road. The Regional Government of Cusco supports this reclassification. The classification request is now being evaluated by the National Ministry of Transport and PROVIAS (national infrastructure investment agency)

The permitting team is also supporting the Operations Direction with the identification and future construction of the access road to HHR. Permitting process is running parallel with design and community engagement to accelerate construction.


Precious Metals Stream Overview

71

1. Payments for production of silver and gold from 777 and silver from Constancia are subject to 1% annual escalation starting 2015; payments for production of gold from Constancia are subject to 1% annual escalation starting in 2016

Delivery from Hudbay to Silver Wheaton

Remaining Life of Mine

Silver 100% Gold 100%

Payments to Hudbay from Silver Wheaton

2016 Silver 100% Gold 50%

777

Remaining Life of Mine

Silver 100% Gold 50%

Constancia

Upfront payment US$885 million

Production payments 1

US$5.90/oz Silver US$400/oz Gold .

plus


Peru Mineral Reserves

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

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

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

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Peru Mineral Resources

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

Measured 5 0.41 69 0.243 5.46

Indicated 6 0.34 98 0.211 4.68

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

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

73


Additional Information

Peru

• 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.

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CONSTANCIA PRESENTATION HBM

For more information contact: Jacqueline Allison Director, Investor Relations Tel: 416.814.4387 Email: [email protected]

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