Acquisition of Norsemont MiningJanuary 2011

22

Forward Looking Information

This presentation contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information includes but is not limited to information concerning the company’s ability to complete its acquisition of Norsemont Mining Inc., and to develop, construct and operate the Constancia project and the combined company, the ability of management to execute on key strategic and operational objectives, the ability to meet production forecasts, the potential impact of changing economic conditions on HudBay’s financial results and the company’s strategies and future prospects. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", “understands” or "does not anticipate", or "believes" or variations of such words and phrases or statements that certain actions, events or results “will”, "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the views, opinions, intentions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated or projected in the forward-looking information (including the actions of other parties who have agreed to do certain things and the approval of certain regulatory bodies).

Many of these assumptions are based on factors and events that are not within the control of HudBay and there is no assurance they will prove to be correct. Factors that could cause actual results or events to vary materially from results or events anticipated by such forward-looking information include the ability to complete its acquisition of Norsemont and to develop and operate the Constancia project on an economic basis,, risks associated with the mining industry such as economic factors (including costs of construction materials, future commodity prices, currency fluctuations and energy prices), failure of plant, equipment, processes and transportation services to operate as anticipated, including new and upgraded facilities at Lalor, dependence on key personnel, employee relations and availability of equipment and skilled personnel, environmental risks, government regulation, actual results of current exploration activities, possible variations in ore grade, dilution or recovery rates, permitting timelines, capital expenditures, reclamation activities, land titles, and social and political developments and other risks of the mining industry, as well as those risk factors discussed in the company’s Annual Information Form dated March 30, 2010, which risks may cause actual results to differ materially from any forward-looking statement.

Although HudBay has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. HudBay undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws, or to comment on analyses, expectations or statements made by third parties in respect of HudBay, its financial or operating results or its securities. The reader is cautioned not to place undue reliance on forward-looking information.

33

Qualified Person

Technical and scientific information respecting the Constancia project has been taken from Norsemont’s NI 43-101 technical report entitled “Constancia Copper Project – Definitive Feasibility Study Technical Report NI 43-101,” dated September 28, 2009 available at www.sedar.com. Cashel Meagher P.Geo, VP Exploration for HudBay Minerals Inc. is a qualified person within the meaning of NI 43-101, and has reviewed and approved the scientific and technical information referred to in this presentation.

Note to U.S. Investors

Information concerning the mineral properties of the Company has been prepared in accordance with the requirements of Canadian securities laws, which differ in material respects from the requirements of SEC Industry Guide 7. Under SEC Industry Guide 7, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time of the reserve determination, and the SEC does not recognize the reporting of mineral deposits which do not meet the SEC Industry Guide 7 definition of “Reserve”. In accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) of the Canadian Securities Administrators, the terms “mineral reserve”, “proven mineral reserve”, “probable mineral reserve”, “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Definition Standards for Mineral Resources and Mineral Reserves adopted by the CIM Council on December 11, 2005. While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are recognized and required by NI 43-101, the SEC does not recognize them. You are cautioned that, except for that portion of mineral resources classified as mineral reserves, mineral resources do not have demonstrated economic value. Inferred mineral resources have a high degree of uncertainty as to their existence and as to whether they can be economically or legally mined. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of an economic analysis. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Therefore, you are cautioned not to assume that all or any part of an inferred mineral resource exists, that it can be economically or legally mined, or that it will ever be upgraded to a higher category. Likewise, you are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be upgraded into mineral reserves. You are urged to consider closely the disclosure on the technical terms in Schedule A “Glossary of Mining Terms” of our AIF for the fiscal year ended December 31, 2009, available on SEDAR at www.sedar.com and incorporated by reference as Exhibit 99.8 in our Form 40-F filed on October 19, 2010 (File No. 001- 34244).

All amounts listed are in Canadian dollars.

Forward Looking Information

4

Acquisition of Norsemont Mining

• HudBay to acquire all the outstanding shares of Norsemont via a take-over bid for approximately C$520 million in shares and cash

• Norsemont’s primary asset is the wholly-owned Constancia porphyry copper project located in southern Peru

• The Constancia project has a long mine life with significant exploration upside

• Key permits received with the approval of the Environmental Social Impact Assessment

• Offer has been approved by the Boards of Norsemont and HudBay and is being recommended by the Norsemont Board to Norsemont shareholders

• Lock-up agreements have been entered into by Norsemont directors, officers and other large shareholders in respect of shares that, together with shares owned by HudBay, represent 35.6% of Norsemont’s fully-diluted shares outstanding

4

55

Transaction Summary Terms

Structure • Take-over Bid

Consideration

• 0.2617 HudBay shares and C$0.001 cash per Norsemont share or C$4.50 cash per Norsemont share

• Subject to maximum cash consideration of C$130 million

Offer Value

• C$4.65 per Norsemont share based on HudBay’s 20-Day VWAP as of January 7, 2011

• 33%(1) premium to Norsemont’s 20-day VWAP as of January 7, 2011

• Total equity value of transaction of C$520 million(2)

Other Terms

• $21.6 million break-fee

• Right to match

• Lock-up agreements for 34.4% of Norsemont’s fully diluted shares outstanding, in addition to HudBay’s 1.1% stake

Transaction Approvals

• Over 50% of Norsemont’s shares being tendered to the offer

• Customary regulatory approvals

Next Steps• Circular to be mailed later in January

• Anticipated completion of offer later in first quarter of 2011

(1) Assuming maximum share election(2) Based on Norsemont fully diluted shares outstanding of 118.3 million shares, excluding 1.4 million shares already owned by HudBay, using HudBay’s

closing price of $16.76 as at January 7, 2011

6

Driving the Combined Company Forward

• Anticipated 145% increase in combined copper production over 2011

• 350% increase in copper reserves; 190% increase in copper equivalent reserves

• Enhances platform to support future growth

• Strong leverage to base metals with attractive gold exposure

• Attractive blend of producing assets and growth projects

• Aggressively enhancing growth through targeted exploration of prospective land package and future acquisitions

• Highly competent management team with operational and corporate development expertise

• Expanding capital markets profile through increased scale, dividend and NYSE listing

6

Current pipeline, including Constancia, expected to be funded by operating cash flow and available liquidity

7

Consistent with Acquisition Strategy

M&A Target Norsemont

Focus on Americas, mining favourable jurisdictions

VMS or porphyry deposits with exploration upside

Transaction size of ~20% of market capitalization

Add value through technical expertise and financial capacity

Accretive to in-situ metal value and net asset value per share

Key permits in place, low cash costs in a highly prospective region

8

Highly Beneficial to Norsemont Shareholders

• Attractive and immediate premium

– 33%(1) over 20 day VWAP as of January 7, 2011

• Embedded option in deal structure through cash/share election

• Realize Constancia’s full production potential through leveraging HudBay’s development and operational expertise

• Minimal dilution since HudBay can fund Constancia through existing financial resources

• Diversification benefits through HudBay’s portfolio of producing mines and development projects

• Participation in high growth mid-tier mining company

• Tax free roll-over option for Canadian shareholders

8

(1) Assuming maximum share election

9

Pro Forma Production Growth – 2011 to 2016

145% Growth

Cu Production

0

25

50

75

100

125

2011E 2016E

Au Eq. Production (1) Zn Production

130% Growth

0

50

100

150

200

250

2011E 2016E

60% Growth

0

25

50

75

100

125

150

2011E 2016E

(kt) (koz) (kt)

HudBay (2) Norsemont (3)(1) Silver converted to gold at a ratio of 60:1

(2) Based on midpoint of 2011 forecasted production released on December 13, 2010. Anticipated production for 2016 is based on existing mines together with Constancia, Lalor (including, for gold equivalent production, inferred resources and conceptual gold and copper-gold zones) and the 777 North expansion.

(3) Based on preliminary results of Constancia Feasibility Study Optimization announced by Norsemont on December 30, 2010

1010

Strategic Location in Investment Grade Country

2009 Copper Production by Country

1,225

1,209

1,054

995

844

702

699

486

452

5,460Chile

Peru

U.S.

China

Indonesia

Australia

Russia

Zambia

Canada

Kazakhstan

(000 tonnes)

• Major producer of base and precious metals

– 2nd largest copper producing country in the world

– Largest producer of gold in Latin America

• Highly prospective country

– 3rd largest exploration budget by country in the world

• Stable mining regulatory environment

• Most major mining companies active in Peru (BHP Billiton, Rio Tinto, Vale, Xstrata, Barrick, Teck, etc.)

Source: Brook Hunt

Moody’s Baa3; S&P BBB+

1111

Constancia Highlights

• Open pit mine, large scale bulk mining

• Low-cost mining with low strip ratio

• Feasibility study completed; optimization study near completion

• Key permits received

• Nominal concentrator capacity of 50,000 tpd

• Long mine life with significant exploration upside

(1) Based on preliminary results of Constancia Feasibility Study Optimization announced by Norsemont on December 30, 2010

Constancia Project (1)

Location Peru

Avg. Annual Prod. 78 kt Cu

By-Products Mo, Ag, Au

Capital Costs US$900M – US$950M

Cash Costs US$0.97 – US$0.99/lb Cu

Mine Life 15 years

P&P Reserves 277 Mt @ 0.43% Cu

12

Zn11%

Au Eq.15%

Cu67%

Mo7%

Zn33%

Au Eq.24%

Cu43%

12

• 350% increase in copper reserves

• 190% increase in copper equivalent reserves

Pro Forma In-Situ Reserve Value

(1) HudBay reserves as of January 1, 2010

(2) HudBay reserves as of January 1, 2010 plus Constancia reserves based on NI 43-101 technical report titled, “Constancia Copper Project – Definitive Feasibility Study”, dated September 28, 2009

(3) In-situ value calculated using commodity prices of US$900/oz Au, US$0.95/lb Zn, US$2.50/lb Cu and US$12.00/lb Mo; silver converted to gold at ratio of 60:1

Current (1)(3) Pro Forma

(2)(3)

755

3379

0

1,000

2,000

3,000

4,000

5,000

HudBay Pro FormaHudBay

(MM lb)

Copper Eq. Reserves

(2)(3)

1743

5065

350%

13

Large and Growing Gold Exposure

1 Silver converted to gold content at 60:1 ratio2 Includes Trout and 777 mineral reserve and resource as of January 1, 20103 Includes Lalor indicated and inferred resource and potential mineral deposit concept and estimate as disclosed in HudBay’s news release

titled, “HudBay Minerals Releases Second Quarter 2010 Results; Announces Production Decision at Lalor Project and Annual Dividend” August 4, 2010

4 Includes 65% of Back Forty resource as disclosed in HudBay’s news release titled, “HudBay Minerals Announces Resource Increase of Over 100% at Back Forty Project With One Million Ounces of Contained Gold” dated October 15, 2010

5 Includes Constancia mineral reserve and mineral resource statement from Norsemont’s NI 43-101 technical report titled, “Constancia Copper Project – Definitive Feasibility Study”, dated September 28, 2009

Reserves (Proven and Probable)2,5

Measured & Indicated Resources3,4

Inferred Resources2,3,4,5

Conceptual Estimates3

HudBayPro-Forma

Contained Au Equivalent (oz)1

2,140,000

1,600,000

1,590,000

1,120,000 – 1,600,000

HudBayContained Au Equivalent (oz)1

1,150,000

1,600,000

1,400,000

1,120,000 – 1,600,000

ConstanciaContained Au Equivalent (oz)1

990,000

-

190,000

-

14

Strategic Location

Selected Cu Projects in Peru Established Mining District

Toromocho

Marcona

Galeno

Rio Blanco

Lima

Haquira Constancia

Las Bambas

Tintaya

Antamina

Antapaccay

Operating Mine

Development Project

CuajoneToquepala

Cerro Verde

Cerro Corona

Close to roads, major power lines, a rail line and port

Southern Peru Copper Belt

Rail Road to Matarani

Main Powerlines

Xstrata - Las Bambas Mineral Pipeline

Roads

First Quantum – Haquira

570 Mt @ 0.64% Cu (M&I)

Pan Pacific – Quechua

680 Mt @ 0.38% Cu(Total Resources)

Xstrata – Las Bambas

1,150 Mt @ 0.65% Cu (M&I)

Xstrata – Antapaccay

623 Mt @ 0.56% Cu (M&I)

AREQUIPA DEPT.

CUSCO DEPT.

Cusco

15

Tailings Facility

Process Plant

Constancia Main

Mine Waste Dump

Pampacancha Skarn Target Cu-Au Sulphides

Chilloroya Skarn Target #1High Grade Gold Target

Chilloroya Porphyry Target #3Cu-Au Sulphides

15

Exploration Upside

• Excellent exploration targets

• Pampacancha

– Located 3 km south-east of Constancia

– Outcropping copper oxides in skarn bodies

• Chilloroya South

– Located 5 km south of Constancia

– Evidence of porphyry related Cu-Au-Mo mineralization

– Untested geophysical anomalies

1616

Americas Based Mining Company

777 (Manitoba)1

Lalor (Manitoba) 2

Constancia (Peru)3

Back Forty (Michigan)4

Fenix (Guatemala)5

1 2

4

5

3

Exploration Properties

Producing/Development Properties

1717

Enhanced Development Pipeline

Exploration Pre-Feasibility Feasibility Construction Production

Lalor

Constancia

Fenix

Back Forty

Reed

Cold / Lost

18

3239

54

8490

94 96

48

109

124

0

40

80

120

160

200

Taseko Capstone HudBay2009

PanAust Inmet Quadra-FNX Lundin Oz Equinox HudBay2016E

FirstQuantum

374

117

18

Production Comparison

(1) Quadra-FNX represents aggregate value of individual copper production reported within company filings

(2) Based on midpoint of 2011 forecasted production released on December 13, 2010. Anticipated production for 2016 is based on existing mines together with Constancia, Lalor (including, for gold equivalent production, inferred resources and conceptual gold and copper-gold zones) and the 777 North expansion.

(3) Based on preliminary results of Constancia Feasibility Study Optimization announced by Norsemont on December 30, 2010

2009 Cu Production (kt)

(1)

HudBay (2) Norsemont (3)Source: Company Filings

1919

Production Comparison

(1) Silver converted to gold at a ratio of 60:1

(2) Based on midpoint of 2011 forecasted production released on December 13, 2010. Anticipated production for 2016 is based on existing mines together

with Constancia, Lalor (including, for gold equivalent production, inferred resources and conceptual gold and copper-gold zones) and the 777 North

expansion.

(3) Based on preliminary results of Constancia Feasibility Study Optimization announced by Norsemont on December 30, 2010

42

56

87

101

168

7978

145

73

130

0

40

80

120

160

200

CBH

Agnico

Eag

le

Hecla

Inm

et

HudBay

200

9

Breakw

ater

Lund

in

HudBay

201

6E

Perily

a

Penole

s

2009 Zn Production (kt)

99

155 159

179

222

242

109

248

0

60

120

180

240

300

Mine

finde

rs

HudBay

200

9

Jagu

ar

Aurizo

n

Alamos

Gamm

on

Semaf

o

HudBay

201

6E

Golden

Sta

r

2009 Au Eq. Production (koz) (1)

410

HudBay (2) Norsemont (3)Source: Company Filings

2020

Pro Forma Financial Metrics

Current Share Price (Jan. 7, 2011) $16.76 $4.27 -

Fully Diluted Shares O/S (M) 154 120 177 – 185 (1)

Market Capitalization (fully diluted) $2,582 $511 +$3,000

Cash Balance $852 (2)

$31 (2)(3)

$799 - 929 (4)

Debt - - (5) -

Fully-Diluted Ownership 83 - 87% 13 - 17% 100%

Figures in C$ millions, unless otherwise indicated

(1) Excludes Norsemont shares owned by HudBay (1.4 million purchased in the market for total purchase price of C$4 million)(2) As at September 30, 2010(3) Includes C$12 million in short-term investments and C$12 million in proceeds from exercise of 6.3 million warrants on December 14, 2010(4) Reflects C$59 million in Norsemont option and warrant proceeds; C$13 million in estimated transaction costs; C$130 million in maximum cash consideration.

Does not include cash from the exercise of in-the-money HudBay options(5) Norsemont’s C$9.8mm convertible debt outstanding assumed converted to shares at the conversion price of C$1.70 per shareNote: Ranges represent values under maximum cash and maximum share consideration payable under the offer

Pro Forma

21

Driving the Combined Company Forward

• Anticipated 145% increase in combined copper production over 2011

• 350% increase in copper reserves; 190% increase in copper equivalent reserves

• Enhances platform to support future growth

• Strong leverage to base metals with attractive gold exposure

• Attractive blend of producing assets and growth projects

• Aggressively enhancing growth through targeted exploration of prospective land package and future acquisitions

• Highly competent management team with operational and corporate development expertise

• Expanding capital markets profile through increased scale, dividend and NYSE listing

21

Current pipeline, including Constancia, expected to be funded by operating cash flow and available liquidity

22

APPENDIX

2323

Constancia NI 43-101 Mineral Reserves

Grade ContainedMt Cu (%) Mo (%) Ag (g/t) Au (g/t) Cu (mlb) Mo (mlb) Ag (koz) Au (koz)

Reserves

Proven 161.8 0.45 0.012 3.68 0.05 1,605 43 19,143 260

Probable 115.6 0.40 0.011 3.70 0.05 1,019 28 13,752 186

Total 277.4 0.43 0.012 3.69 0.05 2,625 71 32,895 446

Source: NI 43-101 technical report titled, “Constancia Copper Project – Definitive Feasibility Study”, dated September 28, 2009

2424

Constancia NI 43-101 Mineral Resource

Grade ContainedMt Cu (%) Mo (%) Ag (g/t) Au (g/t) Cu (mlb) Mo (mlb) Ag (koz) Au (koz)

Resources (1)

Measured 138.3 0.44 0.013 3.54 0.04 1,342 40 15,740 178

Indicated 254.2 0.42 0.010 3.81 0.05 2,354 56 31,138 409

Total (M + I) 392.5 0.42 0.011 3.72 0.05 3,695 96 46,878 586

Inferred 48.8 0.35 0.008 3.82 0.06 377 9 5,993 94

(1) Mineral resource estimate at 0.20% copper cut-off grade

Source: NI 43-101 technical report titled, “Constancia Copper Project – Definitive Feasibility Study”, dated September 28, 2009

25

For more information contact:

John Vincic, VP of Investor Relations and Corporate CommunicationsTel: 416.362.0615Email: john.vincic@hudbayminerals.com