Hudbay Minerals Inc.

1.10 Mining Methods

The Copper World Project will employ conventional open-pit, truck-and-shovel mining methods across four primary pits: East, Broadtop, West, and Peach-Elgin. The overall mine plan integrates essential supporting infrastructure, including waste rock facilities (WRFs), grade-segregated ore stockpiles, a tailings storage facility (TSF), and IPCC system (refer to Figure 1-2). Mining operations are scheduled to run continuously, 24 hours per day, 365 days per year.

Under the Base Case mine plan, total production encompasses 390 million tonnes of ore and approximately 589 million tonnes of waste, yielding a life-of-mine (LOM) strip ratio of 1.5:1 (waste-to-ore), inclusive of pre-production stripping. The Base Case establishes a 15-year LOM, in addition to a two-year pre-stripping period. Economic material will be delivered to a conventional flotation plant for processing.

Mill throughput is designed to ramp up to 60 kstpd over the initial seven months of Year 1, followed by a planned expansion to 90 kstpd in Year 5. The production schedule prioritizes the extraction and processing of higher-margin material early in the LOM. Lower-grade material is routed to grade-segregated stockpiles and reclaimed opportunistically to optimize mill feed grades and satisfy blending parameters.

A combined pit optimization process was completed for the four deposits to evaluate overarching economic potential and establish an indicative mining sequence that explicitly incorporates spatial constraints. For the Base Case, the ultimate pit limits were selected to maximize resource extraction based on baseline economic assumptions, while remaining strictly confined within the exterior boundary of the currently permitted footprints for mining, WRFs, and the TSF.

Open pit design parameters are predicated on the selected mining equipment, operating strategy, and geotechnical slope stability criteria. To ensure achievable production schedules and constrain pushback sequencing, the vertical advance rate is capped at 10 benches per year. Haul road dimensions are designed to minimize overall strip ratios while maintaining strict safety standards to accommodate both staffed and Autonomous Haulage System (AHS) fleet operations.

The Base Case mining schedule encompasses 13 distinct pushback phases. This sequence targets high-grade, low-strip-ratio mineralization early in the LOM while smoothing the waste-stripping profile to ensure continuous ore exposure.