HudBay Minerals Inc.
TSX : HBM

HudBay Minerals Inc.

January 31, 2007 16:01 ET

HudBay Announces January 01, 2007 Mineral Reserves and Mineral Resources

WINNIPEG, MANITOBA--(CCNMatthews - Jan. 31, 2007) - HudBay Minerals Inc. (TSX:HBM) today announced its January 1, 2007 mineral reserves and mineral resources estimated in accordance with National Instrument 43-101 ("NI 43-101"). Mineral reserves aggregate 22,785,000 tonnes. Separately, inferred mineral resources aggregate 3,244,000 tonnes.

"Both our mineral reserves and inferred mineral resources are contained in operating mines and these have historically grown substantially as they are mined," said Peter Jones, President and CEO. "This trend continues and I am delighted to report that our aggregate mineral reserves at January 1, 2007 increased compared to those at January 1, 2006, after taking into account 2006 ore production."

"Beyond our estimated mineral reserves and mineral resources announced today, we have one of the most aggressive exploration programs in Canada underway in 2007 with a budget of $37 million," added Mr. Jones. "Additionally, we are investing $8.5 million to advance our Bur deposit, near our Snow Lake concentrator, through the feasibility study stage, which includes a decline to extract a 10,000 tonne mineral sample. Both of these initiatives, as well as the scoping study underway on our Tom and our optioned Jason deposits in the Yukon, have the potential to further add to our mineral reserve and mineral resource position."

For a comparison of HudBay mineral reserve and mineral resource statements for 2005 and 2006 please see HudBay's 2005 Annual Information Form dated March 29, 2005 and its 2006 Annual Information Form dated March 21, 2006 respectively, which are available at www.sedar.com.



Estimated Mineral Reserves - January 1, 2007

Mine Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%)
777
Proven 5,041,000 2.3 27.5 2.8 4.5
Probable 11,813,000 2.1 26.9 2.3 4.5

Trout Lake
Proven 1,301,000 1.6 18.1 2.2 4.7
Probable 896,000 1.8 19.1 3.0 4.1

Chisel North
Proven 605,000 - - - 8.2
Probable 1,054,000 - - - 8.0

Balmat
Proven 912,000 - - - 10.1
Probable 1,163,000 - - - 11.4

---------------------------------------------------------------------------
Total Proven 7,859,000
Total Probable 14,926,000

Total Reserves 22,785,000


To estimate mineral reserves, measured and indicated mineral resources were first estimated by a 12-step process, which 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 and restrictive kriging to establish continuity and model validation. The resultant estimates of measured and indicated mineral resources are then converted to proven and probable mineral reserves by the application of mining dilution and recovery, as well as the determination of economic viability using historical operating costs. Other factors such as depletion from production are applied as appropriate. Long term metal prices, including premiums, used to determine economic viability of the 2007 mineral reserves were US $450 oz. gold, US $7.00 oz. silver, US $1.10 lb. copper and US $0.60 lb. zinc.



Estimated Inferred Mineral Resources(1) - January 1, 2007

Mine Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%)

777 1,145,000 2.0 26.5 1.4 4.3

Trout Lake 403,000 1.3 22.7 1.4 5.1

Chisel North 248,000 - - - 7.9

Balmat 1,448,000 - - - 12.8

---------------------------------------------------------------------------

Total Resources 3,244,000


Estimated inferred mineral resources within HudBay mines were estimated by a similar 12-step process, used to estimate measured and indicted resources. The inferred mineral resources tabulated above and contained in HudBay mines are compliant with the requirements of NI 43-101 and additionally have had dilution and recovery applied and have been economically tested using the same historical costs and long term metal prices as those used for the estimation of mineral reserves.

The 2007 estimated measured and indicated mineral resource and the estimated inferred mineral resource were prepared under the supervision of Kimberley Lau, B.Sc., P.Geo, who is employed by Hudson Bay Mining and Smelting Co., Limited (HBMS), a wholly-owned subsidiary of HudBay, as Superintendent, Mining Technical Services and who is a Qualified Person under NI 43-101. The 2007 estimated mineral reserve and the estimated diluted, recovered and economically tested inferred mineral resources have been prepared under the supervision of Gerald Beauchamp, B.Sc., P.Eng., who is employed by HBMS as Senior Mines Analyst and who is a Qualified Person under NI 43-101.

About HudBay Minerals Inc.

HudBay Minerals Inc. is an integrated mining company that operates mines, concentrators and a metal production facility in northern Manitoba and Saskatchewan. The Company 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.

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, statements with respect to HudBay's January 1, 2007 mineral reserves and resources as well as certain exploration programs. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "seeks" "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, success of exploration activities, future commodity prices, capital expenditures, possible variations in ore reserves, grade, or recovery rates, 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, 2005, 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 statements 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.

(1) Diluted, recovered and economically tested

Contact Information