HudBay Minerals Inc.
TSX : HBM

HudBay Minerals Inc.

March 07, 2007 13:30 ET

HudBay Responds to Callinan Claim

WINNIPEG, MANITOBA--(CCNMatthews - March 7, 2007) - HudBay Minerals Inc. (TSX:HBM) (HudBay) today announced that its wholly-owned subsidiary Hudson Bay Mining and Smelting Co., Limited (HBMS) received a statement of claim from Callinan Mines Limited ("Callinan") respecting the Net Profits Interest and Royalty Agreement (the "NPI"). Details on the NPI are available in the notes to HudBay's 2005 financial statements.

Callinan is seeking declaratory relief, an accounting and an undisclosed amount of damages alleged to be owing pursuant to the NPI. HBMS believes it has made all appropriate payments to Callinan and that it has a good defence to the claim.

HBMS intends to vigorously defend the claim, which is being reviewed by legal counsel. HudBay does not expect the claim will have any significant adverse impact on the company. HudBay will not be providing any further statements in this matter at this time.

About HudBay Minerals Inc.

HudBay Minerals Inc. is an integrated mining company that operates mines, concentrators and a metal production complex 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 in New York state.

HudBay is a member of the S&P/TSX Composite Index.

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