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HudBay Announces 2007 Production and 2008 Outlook

Posted on: Friday, 15 February 2008, 09:00 CST

HudBay Minerals Inc. (TSX: HBM) (HudBay or the Company) today announced its 2007 production results and outlook for 2008.

"In 2007, we increased our total metal production with growth in zinc, copper, silver and gold," said Allen Palmiere, President and CEO. "Our expectation for 2008 is for another solid year of production."

 2007 PRODUCTION(1) ---------------------------------------------------------------------------                                     Three months ended  Twelve months ended                                                Dec. 31              Dec. 31 --------------------------------------------------------------------------- Production(2)                             2007    2006      2007       2006 --------------------------------------------------------------------------- Zinc                      tonnes        31,383  31,959   126,269    123,253 --------------------------------------------------------------------------- Copper                    tonnes        23,194  23,194    89,995     88,225 --------------------------------------------------------------------------- Gold                     troy oz.       26,222  28,143   102,587     97,952 --------------------------------------------------------------------------- Silver                   troy oz.      385,698 342,963 1,446,738  1,344,927 --------------------------------------------------------------------------- 2008 OUTLOOK ---------------------------------------------------------------------------                                         2008 Production Forecast ---------------------------------------------------------------------------                                        Total(2)         From HudBay Sources --------------------------------------------------------------------------- Zinc         (000's tonnes)         120 -- 150                    120 - 150 --------------------------------------------------------------------------- Copper       (000's tonnes)           70 -- 80                      50 - 60 --------------------------------------------------------------------------- Gold             (000's oz)          90 -- 100                    90 -- 100 --------------------------------------------------------------------------- Silver           (000's oz)     1,100 -- 1,400                 900 -- 1,100 --------------------------------------------------------------------------- 

In 2008, HudBay expects growth in zinc metal production with gold and silver production forecast to be similar to 2007. In addition to its own concentrates, HudBay processes concentrates purchased from others. In 2008, the Company expects to process less purchased copper concentrates. This change is in response to HudBay's consideration of the Government of Canada's 2008 air release targets. No further changes to the new annual air release targets are expected until 2015. The Company does not expect the lower production from purchased concentrates to have a significant impact on 2008 earnings.

(1) See 2007 Production Summary table below for further details on 2007 production.

(2) Includes metal produced from HudBay's own concentrates and metal produced from concentrates purchased from others.

 2007 PRODUCTION SUMMARY ----------------------------------------------------------------------------                                  Three Months Ended              Year Ended                                 --------------------------------------------                                   Dec 31     Dec 31     Dec 31       Dec 31                                     2007       2006       2007         2006 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Metal Produced(1) Metal from HBMS  Concentrates  Zinc                     tonnes    24,866     27,419     99,803    113,637  Copper                   tonnes    13,638     15,317     54,301     56,698  Gold                    troy oz.   25,577     27,563    100,255     95,980  Silver                  troy oz.  253,713    245,328    943,429    962,743 Metal from HBMS   Purchased  Concentrates  Zinc                     tonnes     1,638      3,569     10,717      4,329  Copper                   tonnes     9,556      7,877     35,694     31,527  Gold                    troy oz.      645        580      2,332      1,972  Silver                  troy oz.  131,985     97,635    503,309    382,184                                 -------------------------------------------- Total HBMS Metal   Produced  Zinc                     tonnes    26,504     30,988    110,520    117,966  Copper                   tonnes    23,194     23,194     89,995     88,225  Gold                    troy oz.   26,222     28,143    102,587     97,952  Silver                  troy oz.  385,698    342,963  1,446,738  1,344,927 Balmat(2)  Zinc metal in    concentrate      for sale                tonnes     6,486      4,003     22,068      9,037  Metal in equivalent   concentrate   purchased by    HudBay(3)               tonnes    (1,607)    (3,032)    (6,319)    (3,750)                                 -------------------------------------------- Total Produced(4)  Zinc                     tonnes    31,383     31,959    126,269    123,253  Copper                   tonnes    23,194     23,194     89,995     88,225  Gold                    troy oz.   26,222     28,143    102,587     97,952  Silver                  troy oz.  385,698    342,963  1,446,738  1,344,927 Zinc Oxide  Zinc from HBMS           tonnes     7,560      6,834     29,134     32,469  Zinc from others         tonnes        11      1,255         11      1,448  Zinc oxide produced      tonnes.    9,280      9,861     35,583     41,378 ---------------------------------------------------------------------------- 

(1) Metal from concentrates and purchased concentrates include copper, gold and silver returned to the copper smelter for re-processing as part of the normal production process. Metal reported in concentrate is prior to refining losses or deductions associated with smelter terms.

(2) Not in commercial production in 2006.

(3) Includes tonnes from metal in Balmat equivalent purchased concentrates, purchased from Xstrata. Through an arrangement to decrease costs, HudBay sells all concentrates from its Balmat zinc mine to Xstrata and elects annually to purchase up to 50% of Balmat's zinc concentrate production sold to Xstrata.

(4) Includes production of metal and metal in concentrate.

2007 FINANCIAL RESULTS

HudBay expects to announce its 2007 financial results together with complete details of its production and operating performance on March 17, 2008.

About HudBay Minerals Inc.

HudBay Minerals Inc. is an integrated mining company operating mines, concentrators and a metal production facility in northern Manitoba and Saskatchewan. HudBay also owns a zinc oxide production facility in Ontario, the White Pine copper refinery in Michigan and the Balmat zinc mine operations in New York state. HudBay is a member of the S&P/TSX Composite Index and the S&P/TSX Global Mining Index.

Forward-Looking Information

This news release contains "forward-looking information", within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to HudBay's estimated future production and outlook and earnings for 2008. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "seeks", "expects", "budget" or variations of such words or state that certain actions, events or results "may", "could", "will", "will be", "would be" or "is expected to be". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of HudBay to be materially different from those expressed or implied by such forward-looking information, including risks associated with the mining industry such as economic factors, government regulation and approvals, environmental risks, actual results of exploration activities, future commodity prices, capital expenditures, possible variations in ore reserves, resources, grade or recovery rates, requirements for additional capital, changes in project parameters as plans continue to be refined, conclusions of economic evaluations as well as those factors discussed in the section entitled "Risk Factors" in HudBay's Annual Information Form for the year ended December 31, 2006, available on www.sedar.com. Although HudBay has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. HudBay does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

(HBM-G)

 Contacts: HudBay Minerals Inc. Brad Woods Director Investor Relations (204) 949-4272 Email: brad.woods@hbms.ca Website: www.hudbayminerals.com

SOURCE: HudBay Minerals Inc.

Source: MARKET WIRE

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