Hudbay has reached an agreement to sell its 51 percent interest in the Back Forty Project in Michigan’s Upper Peninsula to its joint venture partner Aquila Resources.  Upon completion of the transaction, Hudbay will receive common shares of Aquila, milestone payments tied to the development of the Back Forty Project and a net smelter return royalty on a portion of the Back Forty property.  Completion of the transaction is conditional upon the completion of a business combination transaction between Aquila and REBgold Corporation, and equity financing by REBgold and other customary conditions.

Hudbay may in the future increase or decrease its ownership of securities of Aquila from time to time depending upon the business and prospects of Aquila, future market conditions and Hudbay’s investment objectives.