Hudbay Minerals Inc.

Table 1-7: Base Case - Unit Operating Cost Summary

1.14.2 Extension Case Capital and Operating Costs

In the Extension Case, total life of mine capital costs of $4,657M consist of $2,070M initial growth, $1,105M expansionary growth, $878M sustaining and $604M capitalized stripping costs. Costs are presented in 2026 dollars, unless otherwise stated, and are reflected net of equipment financing.

Growth capital costs are comparable to the Base Case, and also include expanded filtered tailings growth capital of $395M starting in Year 10 of operations.

Sustaining capital of $878M is primarily mining-related costs of the waste rock facility, tailings facility, major repairs and overhauls and haul roads, as well as sustaining costs related to plant and general administrative facilities, and reflects the extension of mine life to 37 years. Capitalized stripping of $604M is composed of capitalized mine operating costs for stripping applicable to the portion of the annual strip ratio in excess of the life of mine strip ratio.

The unit operating costs for the Extension Case are summarized in Table 1-8. Mining cost is presented on a total cost basis over tonnes of material moved and on an operating cost basis excluding capitalized stripping. Processing cost and Onsite G&A are presented on a per tonne of feed milled basis.