HudBay Minerals: Lalor Project Update October 08, 2009

Strength to Build the Future

2 October 2009

Forward Looking StatementsAll monetary amounts in Canadian dollars unless otherwise noted.

Certain statements made at this meeting and in this presentation contain “forward-looking information”, within the meaning of applicable Canadian securities legislation. Forward- looking information includes, but is not limited to, HudBay's ability to execute its strategy, the ability to secure financing, information with respect to HudBay’s exploration expenditures and activities and the possible success of such exploration activities, including at its Lalor deposit, the estimation of mineral reserves and resources, the realization of mineral estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits and the ability to recommence suspended operations, mineral pricing, reclamation costs, the economic outlook, currency fluctuations, government regulation of mining operations, environmental risks, mine life projections, plans to close HudBay’s copper smelter, the availability of third party concentrate, business and acquisition strategies, and the ability to meet safety and environmental targets. Often, but not always, forward-looking information can be identified by the use of forward-looking words like “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “understands”, “anticipates”, or “does not anticipate”, or “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”. Forward-looking information is based on the opinions and estimates of management as of the date such information is provided and 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 (including future commodity prices, currency fluctuations and energy prices), failure of plant, equipment, processes and transportation services to operate as anticipated, dependence on key personnel and employee relations, environmental risks, government regulation, actual results of current exploration activities, possible variations in ore grade or recovery rates, permitting timelines, capital expenditures, reclamation activities, land titles, and social and political developments and other risks of the mining industry as well as those risk factors discussed or referred to in HudBay’s Annual Information Form for the year ended December 31, 2008 under the heading “Risk Factors”. 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 forward- looking 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 as required by applicable securities laws, or to comment on analyses, expectations or statements made by third parties in respect of HudBay, its financial or operating results or its securities.

CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCESThis presentation uses the terms “Measured”, “Indicated” and “Inferred” resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.

PETER JONES, P. Eng.

Chief Executive Officer PETER JONES, P. Eng.

Chief Executive Officer

4 October 2009

Snow LakeSnow Lake

MANITOBAMANITOBA

SASKATCHEWANSASKATCHEWAN

U N I T E D S T A T E SU N I T E D S T A T E S

ONTARIOONTARIO

Winnipeg Lake

Winnipeg Lake

Manitoba Lake

Manitoba Lake

WinnipegWinnipeg

Flin FlonFlin FlonLalor DepositLalor Deposit

Hudson Bay

Hudson Bay

5 October 2009

Lalor Project Summary

• Located in our Snow Lake mining camp

• Near existing infrastructure & mine operations

• Initially a zinc-rich base metals discovery

• A separate and contact gold zone later discovered

• Recently discovered a new copper/gold zone

• Potential for further exploration upside

HUDBAY’S NEXT BIG MINE

6 October 2009

Chronology

SeptemberSeptember JanuaryJanuary SeptemberSeptember

2 0 0 72 0 0 7 2 0 0 92 0 0 9

Base Metal resource estimate

Base Metal resource estimate

Gold zone identified

Gold zone identified

Copper-gold zone

identified

Copper-gold zone

identified

Initial Lalor drill hole/

announcement

Initial Lalor drill hole/

announcement

VALUE & TONNAGE INCREASED WITH EACH UPDATE

MarchMarch

2 0 0 82 0 0 8

7 October 2009

Discoveries vs. drilling

1950 1958 1966 1974 1982 1990 1998 20070

10

20

30

40

50

60

70

80

90

100 North Star,Birch, Flexar,Coronation

Osborne, Chisel,Ghost, Stall

White,Anderson,Dickstone

Centennial,Westarm, Lost

Callinan

Namew

Chisel North

777

LalorPhoto,Konuto

Won PDAC Bill Dennis Award 000s Metres Drilled

8 October 2009

Lalor Deposit InfrastructureLalor Deposit Infrastructure

Snow Lake Snow Lake

Ander

son

Lake

Ander

son

Lake

Wekusko Lake

Wekusko Lake

3 km3 km

Lalor DepositLalor Deposit

Photo Lake Mine

Photo Lake Mine

Chisel North Mine

Chisel North Mine

Chisel Pit Mine

Chisel Pit Mine

1 km1 km

Chisel Lake Mine

Chisel Lake Mine

precambrianprecambrian volcanicsvolcanics

Snow Lake Concentrator Snow Lake

Concentrator

volcanicsvolcanics

OreOre

power line

power line

Town of Snow Lake

Town of Snow Lake

9.8 million tonnes mined to date9.8 million tonnes mined to date

Hwy #395 Hwy #395

NN

Hwy #393 Hwy #393

Hwy #392 Hwy #392

9 October 2009

Work to Date

Forecast to YE2009:

Diamond Drilling 150,000 metres

Parent Holes 103

Wedge Holes 72

Drilling Investment $40 M to dateEstimate $50 M by 2010

10 October 2009

Focus to Date

Improve definition of zinc-rich base metals zone• Indicated resource upgrade from 3.4 M to 12.3 M tonnes

Base Metal Zone

Delineate boundaries• Open to the northeast

Gold Zone

Extend the zones• Determine aerial extent of zone with step-out holes

New Copper-Gold Zone

Assessing alternatives• Ramp from Chisel North mine with shaft from surface best option

Lalor Lake Access

CASHEL MEAGHER, P. Geo.

Director, Technical Services and Exploration

CASHEL MEAGHER, P. Geo.

Director, Technical Services and Exploration

12 October 2009

Historical Context

The mineral resource estimate for Lalor is made up of 12.3 million tonnes of indicated resources and 5 million tonnes of inferred mineral resources.

Initial resourceAdded resource

0 5 10 15 20 25 30

62.5

Lalor Lake (base metal zone only)

⁄⁄

Tonnes (millions)

Growth of mineral deposits: Discoveries in the Greenstone Belt

MandyNorth StarBirch Lake

FlexarCuprus

Ghost & LostPhoto

RodDickstone

White LakeCoronation

Chisel PitWestarm

CentennialSchist Lae

SpruceKonuto

AndersonOsborne

ChiselCallinan

Chisel U/GStall Lake

Lalor Lake777

Trout LakeFlin Flon

13 October 2009

BASE METALS ZONE: INFERRED RESOURCE

BASE METALS ZONE: INDICATED RESOURCE

ZONE Tonnes (millions)

Au (g/t)

Ag (g/t)

Cu (%)

Zn (%)

10 4.7 0.9 17.0 0.48 10.49

20 5.0 2.4 30.2 1.03 8.60

30 2.6 1.0 25.5 0.28 5.62

Total 12.3 1.6 24.2 0.66 8.70

ZONE Tonnes (millions)

Au (g/t)

Ag (g/t)

Cu (%)

Zn (%)

10 1.5 1.3 19.0 0.51 9.52

11 0.4 0.2 23.1 0.20 11.91

20 1.4 1.7 22.1 0.93 9.36

30 0.1 1.0 19.1 0.30 5.32

31 0.5 0.8 22.3 0.27 5.85

40 1.1 2.0 41.0 0.50 10.31

Total 5.0 1.4 25.5 0.57 9.39

14 October 2009

ZONE Tonnes (millions)

Au (g/t)

Ag (g/t)

Cu (%)

Zn (%)

21 3.5 - 3.9 4.8 – 6.0 34 - 39 0.5 - 0.7 0.4 - 0.5

24 0.2 – 0.4 4.1 – 4.6 26 – 32 0.2 – 0.4 1.1 – 1.4

25 4.6 – 5.0 4.0 - 5.0 33 – 35 0.2 – 0.4 0.2 – 0.4

26 0.8 – 1.0 3.5 – 4.0 24 – 28 0.4 - 0.5 0.3 - 0.5

27 1.5 – 1.7 4.4 – 4.8 12 – 16 0.8 – 0.9 0.1 – 0.2

Total 10.6 – 12.0 4.3 – 5.2 30 – 33 0.4 – 0.6 0.3 – 0.4

POTENTIAL MINERAL DEPOSITS (REPORTED AS RANGES)GOLD ZONES

15 October 2009

25

21

26

27

24

1000m

500m

40

10

11

203031

750m

1250m0m 250m

Classic VMS Mineralization Trend

Zinc Rich

Gold Rich

Copper-Gold Rich

Looking N70oW

Base Metal Resource

Gold Potential Mineralization

Lalor is demonstrating classic VMS trend from zinc to gold to copper-gold

16 October 2009

Lalor 3D Views: Looking N70oW

Base Metal Resource

Gold Potential Mineralization

17 October 2009

Lalor 3D Views: Looking Down Plunge N20oE

Base Metal Resource

Gold Potential Mineralization

MICHAEL WINSHIP, P. Eng.

President and Chief Operating Officer MICHAEL WINSHIP, P. Eng.

President and Chief Operating Officer

19 October 2009

Feasibility studies

• “Base case” completion by end of 2009

• Trade-off studies complete Q2, 2010

Pre-feasibility Study

• Completion in 2010

Feasibility Study

20 October 2009

Access Methodology: Ramp + Shaft

• Early production (1,200 tonnes per day starting in 2012)

• Early access to underground drilling and bulk sampling (to upgrade gold zone to a resource classification)

• Ability to begin underground development prior to shaft completion

• More operational flexibility with access for mobile equipment

Ramp Benefits

SIGNIFICANT EXPERIENCE DRIVING RAMPS

21 October 2009

Access methodology: Project details

Preliminary Capital Cost Order of magnitude $450 M, including $85 M for Phase I

Construction – Phase I Start DateReach First Ore (estimate)

ASAP30 months

Phase II Site clearing, collaring the shaft, order long-lead equipment

Phase IIISink shaft, construct & complete

mine development, refurbish concentrator, construct gold ore process mill

22 October 2009

• Snow Lake – Production estimate - 3,500 tonnes/day base metals ore– Concentrator capacity - 3,500 tonnes/day

• Expect to mine minimum 1,200 tonnes/day gold ore – Process through new gold concentrator or new circuit at

Snow Lake concentrator

Project Considerations (Excludes new Cu-Au zone)

23 October 2009

Project Considerations: Cu-Au zone

• If Significant– Possible expansion of

production capacity of mine & concentrate facilities

• If Moderate– Deepen shaft & drive

a haulage drift to deposit

24 October 2009

25

21

26

27

24

Gold Exploration Platform

1000m

500m

40

10

11

2030

31

750m

1250m

Early Production

Cu-Au zone

Looking N70oW0m 250m

Ramp from Chisel

Base Metal Resource

Gold Potential Mineralization

Proposed Development

Zn Rich

Au Rich

Cu-Au Rich

Vent Raises

Production Shaft

25 October 2009

DEVELOPMENT:

Ramp

Shaft

Tentative Project Timeline

20102010Q3Q3 Q4Q4Q2Q2Q3Q3 Q1Q1

20112011 20122012

PRODUCTION:

Ramp

Shaft

20092009 20132013Q4Q4 Q3Q3 Q4Q4Q2Q2Q1Q1 Q3Q3 Q4Q4Q2Q2Q1Q1 Q3Q3 Q4Q4Q2Q2Q1Q1

20142014Q3Q3 Q4Q4Q2Q2Q1Q1

20152015Q3Q3Q2Q2Q1Q1

PETER JONES, P. Eng.

Chief Executive Officer PETER JONES, P. Eng.

Chief Executive Officer

27 October 2009

Next Steps

• Initiate ramp to Lalor deposit

• Consider restart of Chisel North

• Aggressively pursue exploration

LALOR IS OUR TOP PRIORITY

28 October 2009

Positive Implications of Lalor for HudBay

• Significant zinc, gold & silver production growth• Zinc concentrate to more than fill the zinc plant with 777 and Lalor• Potential annual production of more than 200,000 ounces of gold

between 777 and Lalor• Management and the Board are open to consideration and

examination of alternatives to maximize the return on the gold potential at Lalor

29 October 2009

Lalor Project Summary

• Located in our Snow Lake mining camp

• Near existing infrastructure & mine operations

• Initially a zinc-rich base metals discovery

• A separate and contact gold zone later discovered

• Recently discovered a new copper/gold zone

• Potential for further exploration upside

HUDBAY’S NEXT BIG MINE

HudBay Minerals: Lalor Project Update October 07, 2009

Strength to Build the Future

31 October 2009

Flin FlonFlin Flon

Lalor Deposit Lalor

DepositSnow Lake Snow Lake

Clearwater Lake

Clearwater Lake

North Moose Lake

North Moose Lake

Amisk Lake

Amisk Lake

Flin Flon Greenstone BeltFlin Flon Greenstone Belt

NN

25 km25 km

Hwy #39 Hwy #39

Hwy #10 Hwy #10

777 Mine777 Mine

Chisel North MineChisel North Mine

Trout Lake MineTrout Lake Mine

GeologyVolcanicsPrecambrianCarbonate

Reed Lake Deposit

Reed Lake Deposit

ReedLake

ReedLake

Snow LakeSnow Lake

MANITOBAMANITOBA

SASK

ATC

HEW

AN

SASK

ATC

HEW

AN

U N I T E D S T A T E SU N I T E D S T A T E S

ONTARIOONTARIO

Winnipeg Lake

Winnipeg Lake

Manitoba Lake

Manitoba Lake

WinnipegWinnipeg

Flin FlonFlin FlonLalor DepositLalor Deposit

Hudson Bay

Hudson Bay

32 October 2009

Lalor Deposit InfrastructureLalor Deposit Infrastructure

Snow Lake Snow Lake

Ander

son

Lake

Ander

son

Lake

Wekusko Lake

Wekusko Lake

3 km3 km

Lalor DepositLalor Deposit

Photo Lake Mine

Photo Lake Mine

Chisel North Mine

Chisel North Mine

Chisel Pit Mine

Chisel Pit Mine

1 km1 km

Chisel Lake Mine

Chisel Lake Mine

precambrianprecambrian volcanicsvolcanics

Snow Lake Concentrator Snow Lake

Concentrator

volcanicsvolcanics

OreOre

power line

power line

Town of Snow Lake

Town of Snow Lake

9.8 million tonnes mined to date9.8 million tonnes mined to date

Hwy #395 Hwy #395

NN

Hwy #393 Hwy #393

Hwy #392 Hwy #392

Snow LakeSnow Lake

MANITOBAMANITOBA

SASK

ATC

HEW

AN

SASK

ATC

HEW

AN

U N I T E D S T A T E SU N I T E D S T A T E S

ONTARIOONTARIO

Winnipeg Lake

Winnipeg Lake

Manitoba Lake

Manitoba Lake

WinnipegWinnipeg

Flin FlonFlin FlonLalor DepositLalor Deposit

Hudson Bay

Hudson Bay