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Hudbay Minerals Inc. Completes Credit Facility

February 09, 2006

WINNIPEG, MANITOBA--(CCNMatthews - Feb. 9, 2006) - HudBay Minerals Inc. (TSX:HBM) (HudBay) announces that its subsidiary, Hudson Bay Mining and Smelting Co., Limited (HBMS), has completed its previously announced $25 million credit facility with The Bank of Nova Scotia (Scotia Capital). The facility, subject to customary conditions, is guaranteed by HudBay and its Hudson Bay Exploration and Development Company Limited subsidiary, and is secured by inventory and receivables. The Bank of Nova Scotia may consent to increasing the credit facility to $50 million if HBMS satisfies certain conditions.

HudBay also announces that HBMS has repurchased, through the open market, US$19 million of its 9 5/8% senior secured notes due January 5, 2012. Additionally, HudBay announces that it is in the process of converting the relationship with its joint venture marketing company to one of an agency arrangement, whereby HudBay will sell all its products directly. The debt reduction and conversion of its marketing arrangements should enhance the company's ability to increase the credit facility, if required, at a later date.

"Completing the $25 million credit facility enhances HudBay's financial strength as we look toward future growth," 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 owns a zinc oxide production facility in Brampton, Ontario and the Balmat zinc mine in New York State, which is being re-opened.

Forward Looking Information

Certain information regarding HudBay set forth in this document, including management's assessment of HudBay's future plans and operations, contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward looking statements are subject to numerous risks and uncertainties, some of which are beyond HudBay's and management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, acquisition risks, fluctuation of foreign exchange rates, imperfection of reserve estimates, environmental and financing risks, debt and cash requirements, industry competition and performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements and, accordingly, no assurance can be given that any of the events anticipated to occur or transpire from the forward-looking statements will provide any benefits to HudBay.


HudBay Minerals Inc.
Don Bain
Director, Investor Relations
(204) 949-4272
(204) 942-8177 (FAX)

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