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Hudbay Minerals Inc. Completes Private Placement Financing; Agrees to Establish Credit Facility

June 23, 2005

TORONTO, ONTARIO--(CCNMatthews - June 23, 2005) - Not for distribution to United States newswire services or for dissemination in the United States.

HudBay Minerals Inc. (TSX:HBM) today announced it has completed its previously announced private placement of flow-through common shares for aggregate gross proceeds to HudBay of $7,500,060.

HudBay issued 2,193,000 flow-through common shares at a price of $3.42 per share pursuant to the brokered private placement through a syndicate of investment dealers led by GMP Securities Ltd.

Proceeds from the offering will be used for exploration and development on HudBay's extensive exploration lands in the Flin Flon Greenstone Belt. The private placement was the second stage in the financing of a planned annual exploration program of up to $10 million.

Operating Credit Facility

HudBay also announced its operating subsidiary, Hudson Bay Mining and Smelting Co., Limited (HBMS), has received a commitment from Scotia Capital to establish an operating credit facility of $25 million which, conditionally, may be increased to $50 million. The facility, which will be guaranteed by HudBay, is secured by HBMS receivables and inventory and is subject to customary conditions.

"We are pleased to partner with Scotia Capital in this arrangement, which provides additional financial strength and flexibility to HudBay," said Peter Jones, President and CEO of HudBay.

About HudBay Minerals Inc.

HudBay Minerals Inc. is an integrated mining and metal producing company that operates mines and concentrators in northern Manitoba and Saskatchewan and a metal processing complex in Flin Flon, Manitoba. The Company also operates a zinc oxide production facility in Brampton, Ontario and the former producing mines of Balmat in New York State and Gays River in Nova Scotia that are being evaluated for re-opening.

This press release is not an offer of securities for sale in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities that may be made in the United States will be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the company and management, as well as financial statements.


HudBay Minerals Inc.
Tom Goodman
Vice-President, Human Resources and Technical Services

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