KONUTO LAKE MINE

The mine produced 177,048 tonnes ore, at average grades of 4.33% copper, 1.53% zinc, 1.78 g/t gold and 8.89 g/t silver. The mine produces approximately 300,000 ore tonnes per annum from near vertical multiple lenses between 40m and 465m depths. The mine was expected to be closed in late 2005 because of depletion.(Dec/04) In 2001 a parallel, wide lens was discovered and was currently being mined.

HudBay Minerals Inc has provided full year 2004 production results for its wholly owned subsidiary, Hudson Bay Mining and Smelting Co Ltd (HBMS), as well as ore reserves as at January 1, 2005. HudBay completed the purchase of HBMS from Anglo American PLC on December 21, 2004. Total production for the year ended December 31, 2004 for the 777 mine, Trout Lake, Konuto and Chisel North mines near Flin Flon, Manitoba, Canada was 108,400 tonnes of zinc metal and 43,700 tonnes of copper. In the same period in 2003 zinc metal production was 93,100 tonnes and copper production was 42,100 tonnes from the same four mines. Total proven and probable reserves to January 1, 2005 for the newly acquired mines was estimated to be 21,600,000 tonnes grading 2.2% Cu, 4.8% Zn, 1.9 g/t Au and 25.3 g/t Ag.

The first phase of underground development was underway. The Konuto Lake ore body was discovered by an airborne geophysical survey in 1994 with follow-up diamond drilling taking place the same year. The Konuto project capital development and construction started in 1997 and production began in 1999.