FLIN FLON

HudBay Minerals reported drill results at its 100% owned Lalor deposit in the Flin Flon Greenstone Belt, Manitoba, Canada. Significants results came from hole DUB 230 grading 23.11 g/t gold, 91.28 g/t silver, 0.81% zinc, 1.15% copper over 8.75 meters and from hole DUB234 grading 10.28 g/t gold, 45.08 g/t silver, 1.12% zinc, 1.09% copper over 13.00 meters.

Ore processed decreased marginally as compared to the same period in 2007. Zinc head grade was 1% lower and copper head grade was 3% lower. The gold grade was 22% lower, and the silver head grade was marginally lower. Recovery of zinc to concentrate was 1% higher, while recovery of copper to concentrate was slightly higher; recoveries were consistent with the head grades seen this quarter. Operating cost per ore tonne processed increased by 7%, related to higher costs for consumables and grinding media.

Ore processed decreased by 2% compared to the same period in 2006. Zinc head grade was 34% higher and copper head grade was 6% lower due to changes in ore received from the Trout Lake and 777 mines. Recoveries of zinc to concentrate were 4% higher, consistent with the higher grade of ore processed. Recoveries of copper to concentrate were down slightly. Operating cost per ore tonne processed increased by 9%, primarily related to higher maintenance costs. In 2006, processed ore tonnage was similar to tonnage processed in 2005. Copper head grade increased by 21% and zinc head grade decreased by 4% compared to 2005. Operating costs increased 9% yearon- year due principally to increases in commodity prices as noted above. Both copper and zinc recovery increased in 2006 compared to 2005 while gold and silver recovery reduced to historical levels of 70.7% and 63.5% respectively. A total of 2,258,146 tonnes of ore were processed. Grades were 2.58% Cu, 4.36% Zn, 1.99g/t Au, 20.99g/t Ag. Total copper produced was 218,177 tonnes. Zinc produced amounted 161,554 tonnes. Operating costs reached 8.61$/tonne. For the fourth quarter of 2006, the Flin Flon concentrator throughput increased slightly, compared to the same period in 2005. Copper head grade increased by 23% while zinc head grade decreased 14% as a result of changes in the Trout Lake mine ore grades. Recoveries of copper and zinc fluctuated marginally with a 2% increase in zinc recovery and a 1% decrease in copper recovery. Gold and silver recoveries were affected by the reduced recovery of copper during the quarter. Unit cost of ore throughput increased by 11% due to increases in reagent and grinding media costs, associated with price increases for these commodities. During the first half of 2006, approximately 24,870 m of diamond drilling from surface, in 78 drill holes, was completed. The program continued to focus on mineral deposit targets, structural targets and geophysical anomaly targets. At the Watts river taget, 4,366 m were drilled in ten drill holes. Nine drill holes intersected mineralization. Highlights include: 2.53% Cu, 3.09% Zn over 7.74 m in drill hole WRS007; 1.42% Cu, 0.09% Zn over 4.41 m in drill hole WRS008; 1.66% Cu, 2.29% Zn over 9.46 m in drill hole WRS009. The Company expects to drill 3 holes adjacent to higher grade copper mineralization in 2007. At Bur target, 2,524 m in seven complete parent drill holes and nine wedge cuts were drilled. Mineralization was intersected in all drill holes. Highlights include: 3.19% Cu, 6.89% Zn over 2.95 m in drill hole BZS011; 1.98% Cu, 5.78% Zn over 1.85 m in drill hole BZS012, 2.76% Cu, 7.24% Zn over 1.97 m in drill hole BZS013. Diamond drilling tested the Trout Mine stratigraphy with three drill holes located 500, 1,500 and 2,500 m northwest of the mine site. These drill holes tested the mine stratigraphy at depths ranging between 550 and 740 m. Each drill hole intersected the volcanic sequence of rocks, including the mine rhyolite that hosts the Trout Mine ore lenses. Total drilling completed in the Trout Lake area totaled 4,258 m in five drill holes. Highlights include: 2.82% Cu, 0.48% Zn over 0.35 meters in drill hole TS0601. At the previously mined Chisel property, 1,271 m were drilled in one parent drill hole and one wedge was cut off the parent drill hole to test an off-hole borehole electromagnetic anomaly detected in an older drill hole. Massive sulphide mineralization was intersected in both drill holes. 0.14% Cu, 19.92% Zn over 3.49 m in drill hole CH0601; 0.18% Cu, 14.36% Zn over 4.99 m in drill hole CH0601W1. The Fon deposit is a steeply dipping, multi-lens, coarse grained massive sulphide deposit with extensive associated disseminated and stringer type sulphide mineralization Drilling consisted of 1,207 m in two drill holes and one drill hole deepening. The diamond drilling tested a previous geological interpretation, which indicated the sulphide horizons were displaced by barren intrusive bodies, however, mineralization was intersected in all of the drill holes. Notable intersections include: 7.23% Zn over 0.15 meters in deepening drill hole Fon448; and 3.36% Cu, 5.79% Zn over 0.37 m in drill hole Fon457.