Market Overview

HudBay Minerals Provides Update on CGN


TORONTO, ONTARIO--(Marketwire - Sept. 29, 2009) - HudBay Minerals Inc. ("HudBay") (TSX:HBM) today commented on recent events occurring in the vicinity of its Fenix project, owned by Compania Guatemalteca de Niquel ("CGN"), its subsidiary in Guatemala.

On Sunday, September 27, 2009 discussions were occurring between authorities and illegal occupiers of CGN land known as area 217 in an effort to persuade the occupiers to comply with their commitments under an agreement to relocate. A majority of local families have complied with the resettlement agreement but a few continue to illegally occupy CGN property at this location.

HudBay wants to emphasize that no evictions were carried out and none were threatened or intended. The discussions were consistent with HudBay's strategy of peacefully resolving illegal occupations through dialogue.

When negotiations ended without resolution, government vehicles departing from area 217 were attacked near the town of El Estor by a separate group of organized protestors.

Reports received by CGN indicate that the protestors also ransacked the local police station and stole weapons, including automatic firearms. Later in the day, they attacked a CGN-sponsored community hospital in El Estor, resulting in extensive damage to the facility and equipment recently donated by the Hope Alliance.

CGN has confirmed that several of its employees were injured during the attack on the hospital. Throughout the attacks, CGN personnel showed great restraint and acted only in self defense. There was no damage reported at the mine site or plant facilities owned by CGN.

It has also been reported that one of the protestors died as a result of gunshot wounds sustained during a confrontation among the protestors.

"We deeply regret the injuries and loss of life that occurred in the El Estor area during the attacks by an organized minority," said Peter R. Jones, HudBay's chief executive officer. "Our number one priority is to ensure the safety and security of all residents and employees in El Estor."

CGN is committed to working collaboratively with the local community through various outreach programs to support the development and enhancement of health, education and cultural centers and to increase environmental understanding in the region.

"The majority of residents in the area support our outreach efforts, investments in the local community and development of the Fenix project," added Mr. Jones. "We remain committed to working with local residents to reach a fair and equitable solution to land claims and resettlement."

CGN is committed to advancing the development of the Fenix project to reach full production when it is economically viable. Currently, CGN employs approximately 100 people in Guatemala.

CGN intends to cooperate fully with any investigation conducted by authorities in connection with the incidents.

HudBay Minerals Inc.: Strength to Build the Future

HudBay Minerals Inc. (TSX:HBM) is a Canadian integrated mining company with assets in North and Central America principally focused on the discovery, production and marketing of base metals. The company's objective is to maximize shareholder value through efficient operations, organic growth and accretive acquisitions, while maintaining its financial strength. A member of the S&P/TSX Composite Index and the S&P/TSX Global Mining Index, HudBay is committed to high standards of corporate governance and sustainability.

Forward Looking Information

This news release and its attachments contain "forward-looking information" within the meaning of applicable securities laws. Forward looking information includes but is not limited to information concerning the Fenix project in Guatemala. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "understands" or "does not anticipate", or "believes" or variations of such words and phrases or statements that certain actions, events or results "will", "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the views, opinions, intentions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated or projected in the forward-looking information (including the actions of other parties who have agreed to do certain things and the approval of certain regulatory bodies).

Many of these assumptions are based on factors and events that are not within the control of HudBay and there is no assurance they will prove to be correct. Factors that could cause actual results or events to vary materially from results or events anticipated by such forward-looking information include 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 in the company's Annual Information Form dated March 30, 2009, which risks may cause actual results to differ materially from any forward-looking statement.

Although HudBay has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be 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. HudBay undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change 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. The reader is cautioned not to place undue reliance on forward-looking information.

(HBM-G)

 

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