Augusta Will Defend Shareholders' Ability to Vote on Rights Plan

Augusta Resource Corporation

("Augusta" or the "Company") notes the announcement by HudBay Minerals Inc. ("HudBay") that it has applied to the British Columbia Securities Commission to seek to cease trade Augusta's shareholder rights plan. This is a deliberate attempt by HudBay to deny Augusta's shareholders of their ability to make one of the most critical decisions in respect of their investment in Augusta. Augusta will vigorously defend the ability of its shareholders to vote on its rights plan at any hearing that may be called. "We are putting the ultimate power directly in the hands of shareholders by giving them the opportunity to make the decision on re-affirming the rights plan on May 2, three days before the expiry of HudBay's low-ball bid," said Augusta's President and CEO, Gil Clausen. "We are actively running a robust process to maximize value for shareholders and we are pleased with the progress so far as well as with the numerous high-quality participants involved. Further, HudBay's comments on the status of Rosemont's permitting and project financing are misleading and unfounded, as both have significantly advanced over the last several months. We are on track to complete the permitting process this quarter and project financing early next quarter, both of which represent substantial near-term value implications for our shareholders. We will argue our position forcefully before the B.C. Securities Commission in order to protect the rights of Augusta shareholders." As previously announced, Augusta's annual general and special meeting is set to be held on May 2, 2014 to re-affirm the continuance of its shareholder rights plan. The advancement of the shareholder meeting to a date prior to the expiry of the unsolicited offer for Augusta common shares by HudBay preserves the ability of Augusta's shareholders to decide whether they wish the rights plan to continue in order to prevent HudBay from gaining a minority blocking position in the shares of Augusta. While the rights plan remains in effect, HudBay, or any other party, can make a "permitted bid" under the rights plan without triggering the plan. A permitted bid would allow Augusta's shareholders to decide whether the bid is acceptable to them in a non-coercive manner, as the permitted bid must contain an irrevocable minimum tender condition of a majority of shares held by shareholders other than the bidder. The Company remains fully focused and committed to maximizing value for its shareholders by carefully considering all available alternatives to HudBay's offer. If shareholders, other than HudBay, approve the rights plan at the meeting, shareholders will be given the opportunity at each subsequent annual meeting to determine whether to continue the rights plan or require the Board to have it terminated. If shareholders, other than HudBay, do not approve the continuance of the rights plan at the shareholder meeting, the rights plan will be terminated prior to the expiry of HudBay's offer on May 5, 2014. Reject HudBay's Offer – No Action Required To REJECT the HudBay offer no action is required on the part of the shareholders. The Board of Directors' recommendation that Augusta shareholders REJECT HudBay's unsolicited offer and NOT TENDER their Augusta shares thereto, as well as a more detailed discussion of the reasons for rejecting HudBay's offer is set forth in the Directors' Circular issued by the Board of Directors that was mailed to Augusta's shareholders and filed with securities regulatory authorities. Shareholders are advised to read the Directors' Circular carefully and in its entirety, as it contains important information regarding Augusta, HudBay and the HudBay offer. The Directors' Circular is available on SEDAR at www.sedar.com and on Augusta's website at www.augustaresource.com. How to Withdraw If you have already tendered your Augusta shares to the HudBay offer, you can withdraw your shares by contacting your broker or Laurel Hill Advisory Group, the Information Agent retained by Augusta. Laurel Hill can be reached at 1-877-452-7184 (Toll Free within North America), or by bank and brokers and collect calls outside North America at 416-304-0211 or via email at assistance@laurelhill.com.