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Hudbay Reports Fourth Quarter and Annual 2007 Results

March 17, 2008

Record Annual Revenues and Continuing Solid Cash Flows

WINNIPEG, MANITOBA, Mar 17, 2008 (Marketwire via COMTEX News Network) -- 2007 Highlights

- Revenues grow 12% to a record $1,269.8 million

- Operating cash flow(1) of $477.9 million increases cash position to $757.6 million at year end

- Net earnings of $227.1 million or $1.79 per share

- Cash cost per pound of zinc sold, net of by-product credits "negative" US$0.16

- Record-setting 2007 zinc and copper metal production

- Lalor Lake zinc discovery - conceptual estimate of a potential of 18-20 million tonnes at 7.7% to 8.8% zinc(2)

- Share buy back program launched to repurchase up to 9.9 million common shares

- Shareholder's equity increases to $1.2 billion

HudBay Minerals Inc. (TSX:HBM) (HudBay or the Company) today released its fourth quarter and annual 2007 financial results highlighted by record annual revenues of more than $1.2 billion and annual operating cash flow of $477.9 million. Net earnings in 2007 were $227.1 million compared with $564.0 million in 2006. Increased production and higher realized US dollar metal prices in 2007 were more than offset by the effect of the significant appreciation in the Canadian dollar versus the U.S. dollar, increased operating costs, asset impairment charges and higher year over year tax expense, all of which contributed to lower year over year net earnings.

FINANCIAL HIGHLIGHTS

----------------------------------------------------------------------------
                                 Three months ended     Twelve months ended
($000's except per                      Dec. 31                 Dec. 31
 share amounts)               ----------------------------------------------
                                    2007        2006        2007        2006
----------------------------------------------------------------------------
Revenue                          242,596     313,110   1,269,841   1,129,003
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Earnings before tax               31,722     134,636     365,456     442,451
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Net Earnings                      28,459     165,788     227,139     563,991
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Basic EPS(3)                        0.22        1.32        1.79        5.32
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EBITDA(4)                         72,014     153,558     483,066     513,428
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Operating cash flow(1)            83,809     148,508     477,890     490,797
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Cash and cash equivalents(5)     757,574     385,864     757,574     385,864
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Total Assets(5)                1,551,627   1,318,515   1,551,627   1,318,515
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(1) Operating cash flow excluding changes in non-cash working capital.
(2) The estimate of potential tonnes and grade of the Lalor Lake potential
    mineral deposit are conceptual in nature.  There has been insufficient
    exploration to define a mineral resource and it is uncertain if further
    exploration will result in the Lalor Lake deposit being delineated as a
    mineral resource. Further details are available in HudBay's news release
    dated October 23, 2007.
(3) Earnings per share
(4) Earnings before interest, taxes, depreciation and amortization,
    loss/gain on derivative instruments, interest and other income,
    exploration, asset impairment losses and other.
(5) At December 31st.
"Our operations delivered solid financial and operating performance again in 2007," said Allen Palmiere, President & CEO. "HudBay has tremendous assets that include mines, exploration properties and people. We are well positioned to leverage these strengths to take advantage of strong metal prices and generate incremental long term value going forward."

OPERATING HIGHLIGHTS

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                              Three months ended       Twelve months ended
                                   Dec. 31                     Dec. 31
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Production                    2007           2006         2007         2006
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Zinc(6)          tonnes     31,383         31,959      126,269      123,253
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Copper           tonnes     23,194         23,194       89,995       88,225
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Gold           troy oz.     26,222         28,143      102,587       97,952
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Silver         troy oz.    385,698        342,963    1,446,738    1,344,927
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Metal Sold(7)
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Zinc(8)          tonnes     34,313         32,386      132,994      114,646
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Copper           tonnes     18,558         19,901       87,003       79,395
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Gold           troy oz.     18,680         22,112       96,847       82,921
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Silver         troy oz.    247,077        295,545    1,270,791    1,195,142
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Financial and Operating Results

The bracketed values that follow denote the comparative figures for the respective periods in 2006.

Earnings

Net earnings were $28.5 million in the fourth quarter, or $0.22 per share ($165.8 million, or $1.32 per share). The lower net earnings are primarily attributable to:

- a negative effect from the appreciating Canadian dollar, estimated at $43.1 million;

- higher tax expense, which increased by $34.4 million largely due to future tax expense recognized as the Company draws down its future tax asset;

- lower revenues due to a lower average realized US$ zinc price, net of changes in prices and volumes of HudBay's other metals;

- asset impairment charges of $20.2 million;

- higher depreciation and amortization expense, which increased by $8.4 million;

- the addition of Balmat operating costs estimated at $7.8 million;

- higher exploration expense, which increased by $2.9 million; and

- lower profit sharing expenses, which decreased operating expenses by $4.9 million.

For all of 2007 net earnings were $227.1 million or $1.79 per share ($564.0 million or $5.32 per share). The lower net earnings are primarily attributable to:

- higher tax expense, which increased by $259.9 million largely due to future tax expense recognized as the Company draws down its future tax asset;

- a negative effect from the appreciating Canadian dollar, estimated at $77.5 million;

- the addition of Balmat operating costs estimated at $35.9 million and increased mining and processing costs at other operations of $19.4 million;

- higher depreciation and amortization expense, which increased by $29.8 million;

- higher exploration expense, which increased by $20.8 million; and

- asset impairment charges of $20.2 million.

Partly offsetting these negative impacts were higher revenues from increased year over year sales volumes and metal prices.

(6) Production includes Balmat payable metal in concentrate shipped, including pre-commercial production in 2006.

(7) 2006 excludes inventory changes prior to the contractual change with Considar Metal Marketing Inc.

(8) Zinc sales include sales to Zochem and the Balmat payable metal in concentrate shipped (including to HBMS).

Revenue

Total revenue for Q4 2007 was $242.6 million ($313.1 million). Lower revenues in the fourth quarter of 2007 reflect: a lower average realized zinc price of $1.29 US$/lb in Q4 2007 compared with $1.93 US$/lb in Q4 2006; the impact from the appreciation in the Canadian dollar versus the US dollar estimated at negative $41.8 million; and lower copper, gold and silver sales volumes. During the fourth quarter of 2007, finished metal inventories of zinc decreased by 2,800 tonnes and copper inventory increased by 3,500 tonnes. These negative impacts on revenue were partly offset by higher zinc sales volumes and higher realized US dollar prices for copper, gold and silver.

Total revenue for 2007 was $1,269.8 million ($1,129.0 million). Revenues were higher in 2007 due to higher sales volumes for all metals produced by HudBay, together with higher average US$ realized prices for each of the metals HudBay produces. These increases were partly offset by the impact from the appreciation of the Canadian dollar versus the US dollar estimated at negative $63.7 million.

Realized Metal Prices(1) and Exchange Rate

----------------------------------------------------------------------------
                                        HudBay
                                       Realized                  HudBay
                                       Prices(1)                Realized
                                     Three Months               Prices(1)
                                         Ended                 Year Ended
                                    ----------------         ---------------
                            Q4 2007 ----------------    2007 ---------------
                            Average   Dec 31 Dec 31  Average  Dec 31 Dec 31
                           Prices(2)    2007   2006 Prices(2)   2007   2006
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Prices in US$
 Zinc              US$/lb.     1.19     1.29   1.93     1.47    1.56   1.53
 Copper            US$/lb.     3.26     3.23   3.16     3.23    3.27   3.15
 Gold         US$/troy oz.      788      758    603      697     682    603
 Silver       US$/troy oz.    14.22    13.84  11.59    13.39   13.39  11.13
Prices in C$
 Zinc               C$/lb.     1.16     1.26   2.20     1.58    1.68   1.73
 Copper             C$/lb.     3.17     3.12   3.60     3.47    3.51   3.58
 Gold          C$/troy oz.      766      739    687      749     733    684
 Silver        C$/troy oz.    13.82    13.53  13.21    14.41   14.42  12.62
----------------------------------------------------------------------------
C$/US$ exchange rate           0.97     0.97   1.14     1.08    1.08   1.13
----------------------------------------------------------------------------

(1) Realized prices are before refining and treatment charges and only on
    the sale of finished metal.

(2) London Metals Exchange ("LME") average for zinc, copper and gold prices,
    London Spot US equivalent for silver prices. HudBay's copper sales
    contracts are primarily based on Comex copper prices.

Expenses

Operating expenses -- for Q4 2007 were $160.1 million ($163.7 million) representing a decrease of approximately 2% compared with Q4 2006. The Q4 2007 operating expenses include higher production at the Balmat operation and higher year over year costs associated with net profits interest agreement, reclamation initiatives and consumable and contractor costs. These increases were more than offset by the effect of the appreciation of the Canadian dollar versus the US dollar, which favourably affected US dollar denominated operating costs, and as well by lower year over year profit sharing expense.

Operating expenses for 2007 were $730.7 million ($598.1 million). Higher operating expenses in 2007 are primarily attributable to significant increases in sales volumes and higher costs of production. Sales of zinc metal were 16.0% higher and sales of copper metal were 10.0% higher. Increased costs of production are from higher volumes for purchased copper and zinc concentrates, commercial production at Balmat and generally higher costs for mining and processing operations. Costs associated with net profits interest agreements and reclamation initiatives were also higher in 2007 compared with 2006. Partly offsetting these increases was the effect of the appreciation of the Canadian dollar versus the US dollar, which favourably affected HudBay's US dollar denominated operating costs, as well as lower year over year profit sharing expense.

HudBay's Q4 2007 cash cost per pound of zinc sold, net of by-product credits, was US$0.17 (negative US$0.21) and for 2007 was negative US$0.16 (negative US$0.43). A reconciliation of this non-GAAP measure is provided in the Company's 2007 MD&A.

Depreciation and amortization -- in Q4 2007 was $25.6 million and $94.7 million for all of 2007 ($17.2 million and $64.9 million). The year over year increases reflect the addition of the Balmat operation, which reached commercial production on January 1, 2007, increases in the Trout Lake mine amortization rate, higher production tonnage at the 777 mine, and higher smelter depreciation.

Foreign exchange losses -- The Canadian dollar value of the Company's US dollar denominated operating accounts, which include certain cash, accounts receivable, accounts payable and derivatives, declined during the fourth quarter due to appreciation of the Canadian dollar relative to the US dollar. For the fourth quarter ended December 31, 2007, movement in foreign exchange rates resulted in a loss of $2.6 million. ($12.9 million gain). For 2007, the appreciation of the Canadian dollar resulted in a foreign exchange loss of $22.6 million ($11.1 million gain).

Exploration Expense

Total exploration expenditures for 2007 including both expense and capital totaled $41.3 million, up significantly from 2006 as HudBay continued to advance its aggressive exploration program in support of new discoveries and mine extensions. Exploration expense in Q4 2007 was $6.2 million ($3.3 million). For all of 2007, exploration expense was $33.1 million ($12.3 million). Through these expenditures, the Company successfully expanded its in-mine reserves and resources, discovered the Lalor Lake potential zinc deposit and completed additional exploration work in support of ongoing exploration in future years.

Asset Impairment Losses

HudBay's Balmat operation achieved commercial production on January 1, 2007 and during the year produced 22,068 tonnes of zinc metal in concentrate. Balmat's performance in 2007 did not meet HudBay's feasibility study expectations. As such, and in accordance with accounting policies, the Company completed an asset impairment test, resulting in a Q4 2007 non-cash charge to reduce the carrying value of the Balmat assets by $15.1 million. The Company is currently in the process of optimizing the Balmat operation. An impairment loss of $5.1 million was also recognized associated with investments in listed shares.

Tax Expense

Tax expense for all of 2007 was $138.3 million compared with a net tax benefit of $121.5 million in 2006. The 2007 tax expense is comprised of $104.5 million of income tax expense ($122.3 million benefit) and $33.8 million of mining tax expense ($0.8 million). Importantly, the income tax portion for 2007 was largely a non-cash expense due to the draw-down of the Company's tax asset, which was recognized primarily in 2006.

CORPORATE HIGHLIGHTS

HudBay Continues to Advance Growth Strategy

2008 Exploration Budget set at $42.8 Million - In 2008, for the second year in a row, HudBay is advancing one of the most aggressive exploration programs in Canada with a budget of $43 million. The program follows HudBay's 2007 $41.3 million exploration program that discovered the Lalor Lake deposit. Exploration objectives for 2008 include seeking to identify new deposits, increase the Company's in-mine reserves and resources and, advance the Lalor Lake deposit.

Updated Reserves and Resources Announced - On February 12, 2008, HudBay announced its January 1, 2008 reserves and resources. The Company's updated in-mine reserves and resources, which included 21.4 million tonnes of reserves and 3.5 million tonnes of resources, largely replaced the ore mined by the Company through 2007. In addition, HudBay's predevelopment properties include 7.5 million tonnes of indicated resources and 31.5 million tonnes of inferred resources.

Positive Results at Lalor Lake - On March 3, 2008 HudBay announced additional results from its diamond drill program at the Lalor Lake mineral property in the Flin Flon Greenstone Belt. As previously announced, Lalor Lake indicates a conceptual estimate of a potential of 18 to 20 million tonnes at 7.7% to 8.8% zinc(9). The assays announced on March 3, 2008 indicate the potential for significant precious metals in the deposit. In addition, certain of the drill hole results have some higher grades of copper. HudBay plans to continue drilling at Lalor Lake with five rigs to define the extent and to improve confidence in the interpretation to produce a National Instrument 43-101 (NI 43-101) compliant resource estimate, which is expected to be completed near the end of the first half of 2008.

(9) The estimate of potential tonnes and grade of the Lalor Lake potential mineral deposit are conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the Lalor Lake deposit being delineated as a mineral resource. Further details are available in HudBay's news release dated October 23, 2007.

Solid Production Outlook for 2008

In 2007, HudBay delivered increased total metal production with growth in zinc, copper, silver and gold. For 2008 the Company expects growth in zinc metal production, with gold and silver production forecast to be similar to 2007. Copper metal production from HudBay's own mines is also expected to be similar to 2007 levels, with somewhat lower copper metal production from purchased copper concentrates.

Normal Course Issuer Bid Launched

In December 2007, HudBay launched a normal course issuer bid through the facilities of the Toronto Stock Exchange (the "TSX") to purchase, through December 16, 2008, up to 9,946,093 of its common shares, representing approximately 9.5% of its public float as of December 11, 2007. HudBay believes the share buy back program reflects an effective means to return a portion of the Company's cash to shareholders and that the purchase of common shares will contribute to enhancing shareholder value. A total of 941,300 shares were purchased to January 14, 2008 for approximately $17.2 million.

HudBay Celebrates 80 Years of Mining Success

On January 21, 2008, HudBay marked 80 years of success in Manitoba by announcing a $1 million contribution to the Canadian Museum for Human Rights. The contribution was made in recognition of the Company's employees - past and present - who have been vital to HudBay's success. The Museum is poised to be Canada's first federal museum devoted to human rights, and the first national museum outside the national capital area. Located in Winnipeg, it is envisioned to be the largest human rights centre in the world, with a special focus on equipping and educating young people to become human rights leaders and advocates.

Health, Safety, Environment and Product Quality

HudBay's operations, including contractors, recorded a Lost Time Accident (LTA) frequency rate, per 200,000 hours worked, of 1.4 for Q4 2007, compared to 0.8 from the same quarter in 2006. The full year 2007 LTA frequency rate was unchanged from 2006 at 1.0. All operations now have management systems certified to both OHSAS 18001 for occupational health and safety and ISO 14001 for the environment. The White Pine Copper Refinery received certification on schedule in October of 2007. In addition, the production and supply of HBMS' final products are registered to the ISO 9001 quality standard. There were no significant environmental non-compliances during the year.

For further information, please see attached hereto selected financial information for the periods ended December 31, 2007 and 2006. Please also see HudBay's consolidated financial statements together with Management's Discussion and Analysis of Operations and Financial Condition for the year ended December 31, 2007. A copy of HudBay's consolidated financial statements for the years ended December 31, 2007 and December 31, 2006 as well as its MD&A for the year ended December 31, 2007 are available under the profile of HudBay on SEDAR at www.sedar.com and on the HudBay website at www.hudbayminerals.com.

About HudBay Minerals Inc.

HudBay Minerals Inc. is an integrated mining company operating mines, concentrators and a metal production facility in northern Manitoba and Saskatchewan. HudBay also owns a zinc oxide production facility in Ontario, the White Pine Copper Refinery in Michigan and the Balmat zinc mine operations in New York State. HudBay is a member of the S&P/TSX Composite Index and the S&P/TSX Global Mining Index.

Forward-Looking Information

This news release contains "forward-looking information", within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to HudBay's future production, Balmat operations, the share buyback program and its possible impact on shareholder value, exploration program and planned expenditures, possible results with respect to Lalor Lake as well as HudBay's future prospects. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "seeks", "expects", "budget" or variations of such words or state that certain actions, events or results "may", "could", "will", "will be", "would be" or "is expected to be". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of HudBay to be materially different from those expressed or implied by such forward-looking information, including risks associated with the mining industry such as economic factors, government regulation and approvals, environmental risks, actual results of exploration activities, future commodity prices, capital expenditures, possible variations in ore reserves, resources, grade or recovery rates, requirements for additional capital, factors affecting stock market performance, changes in project parameters as plans continue to be refined, conclusions of economic evaluations as well as those factors discussed in the section entitled "Risk Factors" in HudBay's Annual Information Form for the year ended December 31, 2007, available on www.sedar.com. Although HudBay has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. HudBay does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

(HBM-F)

To view the Management's Discussion and Analysis, please click the following link:

http://media3.marketwire.com/docs/hbmmdaQ407.pdf

To view the Financial Statements, please click the following link:

http://media3.marketwire.com/docs/hbmifsQ407.pdf

HudBay Minerals Inc. Consolidated Statements of Earnings Unaudited (In thousands of Canadian dollars, except share and per share amounts) Three months ended Year ended December 31 December 31 -------------------------------------------------------------------------- 2007 2006 2007 2006 -------------------------------------------------------------------------- Revenue $ 242,596 $ 313,110 $1,269,841 $ 1,129,003 -------------------------------------------------------------------------- Expenses: Operating 160,079 163,691 730,748 598,053 Depreciation and amortization 25,610 17,185 94,697 64,928 General and administrative 5,041 7,153 18,188 19,756 Stock-based compensation 1,969 906 11,979 6,201 Accretion of asset retirement obligations 915 737 3,282 2,692 Foreign exchange loss 2,578 (12,935) 22,578 (11,127) -------------------------------------------------------------------------- 196,192 176,737 881,472 680,503 -------------------------------------------------------------------------- Operating earnings 46,404 136,373 388,369 448,500 Exploration (6,223) (3,345) (33,067) (12,311) Interest and other income 8,867 8,413 35,238 17,450 Gain (loss) on derivative instruments 3,120 4,269 (3,515) 22,558 Interest expense (274) (1,259) (1,378) (10,971) Asset impairment losses (20,172) - (20,172) - Other - (9,815) (19) (22,775) -------------------------------------------------------------------------- Earnings before tax 31,722 134,636 365,456 442,451 Tax expense (benefit) 3,263 (31,152) 138,317 (121,540) -------------------------------------------------------------------------- Net earnings for the period $ 28,459 $ 165,788 $ 227,139 $ 563,991 -------------------------------------------------------------------------- Earnings per share: Basic $ 0.22 $ 1.32 $ 1.79 $ 5.32 Diluted $ 0.22 $ 1.29 $ 1.77 $ 4.69 Weighted average number of common shares outstanding Basic 127,310,761 125,243,369 126,847,106 105,979,721 Diluted 128,627,914 128,054,512 128,507,554 120,334,201
HUDBAY MINERALS INC. Consolidated Balance Sheets (In thousands of Canadian dollars) Unaudited Years ended December 31, 2007 and 2006 --------------------------------------------------------------------------- 2007 2006 --------------------------------------------------------------------------- Assets: Current assets: Cash and cash equivalents $ 757,574 $ 385,864 Accounts receivable 71,511 132,275 Inventories 183,739 163,842 Prepaid expenses 7,646 7,288 Current portion of fair value of derivatives 7,635 2,579 Future income and mining tax assets 43,809 154,063 --------------------------------------------------------------------------- 1,071,914 845,911 Property, plant and equipment 450,334 444,044 Other assets 29,379 28,560 --------------------------------------------------------------------------- $1,551,627 $ 1,318,515 --------------------------------------------------------------------------- Liabilities and Shareholders' Equity: Current liabilities: Accounts payable and accrued liabilities $ 142,994 $ 139,922 Taxes payable 6,409 30,217 Current portion of other liabilities 41,605 28,087 --------------------------------------------------------------------------- 191,008 198,226 Long-term debt 3,208 10,214 Pension obligations 38,846 41,675 Other employee future benefits 70,153 65,083 Asset retirement obligations 35,046 33,548 Obligations under capital leases 1,611 4,979 Future income tax liabilities 718 582 Fair value of derivatives 19,804 - --------------------------------------------------------------------------- $ 360,394 $ 354,307 --------------------------------------------------------------------------- Shareholders' equity: Share capital: Common shares 311,143 308,441 Warrants 1 3 Contributed surplus 16,633 13,098 Cumulative translation adjustment - (57) Retained earnings 868,857 642,723 Accumulated other comprehensive income (loss) (5,401) - --------------------------------------------------------------------------- 1,191,233 964,208 --------------------------------------------------------------------------- $1,551,627 $ 1,318,515 ---------------------------------------------------------------------------


HudBay Minerals Inc. Consolidated Statements of Cash Flows Unaudited (In thousands of Canadian dollars) Three months ended Year ended December 31 December 31 --------------------------------------------------------------------------- 2007 2006 2007 2006 --------------------------------------------------------------------------- Cash provided by (used in): Operating activities: Net earnings for the period $ 28,459 $ 165,788 $ 227,139 $ 563,991 Items not affecting cash: Depreciation and amortization 25,610 17,185 94,697 64,928 Stock-based compensation 1,969 906 11,979 6,201 Accretion expense on asset retirement obligations 915 737 3,282 2,692 Foreign exchange (gain) loss (6,906) (6,460) 1,528 (5,393) Change in fair value of derivatives 13,155 4,789 16,643 3,114 Asset impairment losses 20,172 - 20,172 - Future tax expense (benefit) (275) (41,561) 106,140 (151,588) Other 710 7,124 (3,690) 6,852 --------------------------------------------------------------------------- 83,809 148,508 477,890 490,797 Change in non-cash working capital 9,156 (4,083) 20,283 (66,871) --------------------------------------------------------------------------- 92,965 144,425 498,173 423,926 --------------------------------------------------------------------------- Financing activities: Repayment of senior secured notes - (48,496) - (173,142) Repayment of loans payable - - (4,000) (4,000) Repayment of obligations under capital leases (1,042) (976) (4,030) (3,825) Repurchase of common shares (6,184) - (6,184) - Issuance of common shares, net of cost (10) 133 (10) 16,771 Proceeds on exercise of warrants - 1,640 10 111,368 Proceeds on exercise of stock options 331 3,481 7,690 8,306 --------------------------------------------------------------------------- (6,905) (44,218) (6,524) (44,522) --------------------------------------------------------------------------- Investing activities: Additions to property, plant and equipment (37,856) (26,367) (116,938) (119,250) Purchase of investments (488) (6,823) (888) (6,823) Additions to environmental deposits - (46) - 16 Sale of ScoZinc - - - 7,412 Acquisition of White Pine Copper Refinery, Inc., net of cash acquired - - - (17,041) --------------------------------------------------------------------------- (38,344) (33,236) (117,826) (135,686) --------------------------------------------------------------------------- --------------------------------------------------------------------------- Effect of exchange rate changes on cash and cash equivalents 6,975 7,882 (2,113) 486 --------------------------------------------------------------------------- Change in cash and cash equivalents 54,691 74,853 371,710 244,204 Cash and cash equivalents, beginning of period 702,883 311,011 385,864 141,660 --------------------------------------------------------------------------- Cash and cash equivalents, end of period $757,574 $385,864 $757,574 $385,864 --------------------------------------------------------------------------- HudBay Minerals Inc. Consolidated Statements of Retained Earnings Unaudited (In thousands of Canadian dollars) Three months ended Year ended December 31 December 31 --------------------------------------------------------------------------- 2007 2006 2007 2006 --------------------------------------------------------------------------- Retained earnings, beginning of period $ 840,398 $ 476,935 $ 642,723 $ 78,732 Net earnings for the period 28,459 165,788 227,139 563,991 Transition adjustment - financial instruments - - (1,005) - --------------------------------------------------------------------------- Retained earnings, end of period $ 868,857 $ 642,723 $ 868,857 $ 642,723 --------------------------------------------------------------------------- Consolidated Statements of Comprehensive Income Unaudited (In thousands of Canadian dollars) Three months ended Year ended December 31 December 31 2007 2006 2007 2006 --------------------------------------------------------------------------- Net earnings for the period $ 28,459 $ 165,788 $ 227,139 $ 563,991 Other comprehensive income (loss), net of tax 17,313 - (5,812) - --------------------------------------------------------------------------- Comprehensive income, end of period $ 45,772 $ 165,788 $ 221,327 $ 563,991 ---------------------------------------------------------------------------

SOURCE: HudBay Minerals Inc.

HudBay Minerals Inc.
Brad Woods
Director Investor Relations
(204) 949-4272
Email: brad.woods@hbms.ca
Website: www.hudbayminerals.com

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