ACQUISITION: HudBay sets sights on Norsemont

TORONTO - HudBay Minerals has set its sights on acquiring Norsemont Mining in a cash and share deal worth $520 million. The deal will bring Norsemont's Constancia copper development project in Peru into the HudBay portfolio. Its addition will boost HudBay's copper production numbers 145% from 2011 levels when it starts up in 2016.

HudBay has offered 0.2617 HudBay share and $0.001 in cash, or $4.50 cash, for each Norsemont share. This represents a premium of 33% over the trading prices of Norsemont and HudBay in the 20 trading days leading up to Jan. 7, 2011. HudBay is offering to purchase all outstanding Norsemont common shares.

The Constancia copper project has proven and probable reserves of 277.4 million tonnes grading 0.45% Cu, 0.012% Mo, 3.69 g/t Ag and 0.05 g/t Au. An open pit and conventional flotation mill are planned. The mill throughput will vary from 47,000 to 75,000 t/d depending on the type of ore being treated (hypogene, supergene or skarn). It is expected to produce 172.0 million lb of copper and 2.0 million lb of molybdenum annually.

Complete information about HudBay's offer is available at www.HudBayMinerals.com. Norsemont's website is at www.Norsemont.com.