Canadian Warrants

The warraWarrant symbol:  HBM.WT
Warrant Cusip No.:  443628 12 8
Trading currency:  Canadian dollars
Designated market-maker:  GMP Securities LP
 
The warrants reflect the obligation of HudBay pursuant to a recently effected plan of arrangement involving Skye Resources Inc. and HudBay, details of which are contained elsewhere in today's Toronto Stock Exchange bulletins. Each warrant entitles the holder to purchase for $15.13, 0.61 of a HudBay share and receive 0.1 cent in cash, until 5 p.m. (Vancouver time) on Jan. 26, 2009. Certificates representing Skye common share purchase warrants will represent good delivery for trades made in the HudBay common share purchase warrants.

The warrants are governed by the terms of a warrant indenture dated Oct. 26, 2007, between Skye and CIBC Mellon Trust Co., and a supplemental warrant indenture dated Aug. 26, 2008, between Skye, HudBay and CIBC Mellon. The warrant indenture provides for appropriate adjustments to the rights of the holders of warrants in the event of stock dividends, subdivisions, consolidations and other forms of capital reorganization. See elsewhere in today's TSX bulletins regarding the delisting of the Skye common shares and common share purchase warrants.

HudBay Minerals to list on TSX on Dec. 24

2004-12-22 19:31 MT - New Listing
TSX bulletin 2004-1545
An application has been granted for the original listing in the mining category of 127,905,810 common shares, of which 77,448,200 shares are issued and outstanding and 50,457,610 shares are reserved for issuance.
An application has also been granted for the listing of 1,045,421,667 warrants all of which are issued and outstanding. The common shares and warrants will be listed and posted for trading at the open on Friday, Dec. 24, 2004.
Every 30 warrants entitle the holder to acquire one common share of the company at $3.15 per share until 5 p.m. (Toronto time) on Dec. 21, 2009.
The warrants are governed by the terms of the warrant indenture dated Dec. 21, 2004, between the company and Equity Transfer Services Inc., as warrant agent. The warrant indenture provides for appropriate adjustments to the rights of the holders of warrants in the event of stock dividends, subdivisions, consolidations or other forms of capital reorganization.
The company will be subject to the reporting requirements of Section 502 of the Toronto Stock Exchange company manual.
Common share symbol:  HBM
Common share Cusip No.:  443628 10 2
Warrant symbol:  HBM.WT
Warrant Cusip No.:  443628 11 0
Designated market-maker:  J. Curtis, GMP Securities Ltd.
Pursuant to articles of amendment effective Dec. 21, 2004, Ontzinc Corp. changed its name to HudBay Minerals Inc. and consolidated its common shares on a 1:30 basis. No fractional shares will be issued pursuant to the consolidation and no consideration will be issued therefore. It is understood that letters of transmittal were mailed to shareholders of Ontzinc Corp. on or about Nov. 10, 2004, requesting them to return the duly completed and executed letters of transmittal together with the certificates representing their common shares of Ontzinc Corp. to Equity Transfer Services in Toronto in order to receive certificates representing the appropriate number of common shares of the company to which they are entitled.
Other markets:  It is understood that the common shares of Ontzinc Corp. will be delisted from the TSX Venture Exchange at the close on Thursday, Dec. 23, 2004.
Listing statement No. 5497 is being prepared and the following constitutes information appearing in the statement.
Incorporation:  The company was formed by amalgamation of Pan American Resources Inc. and Marvas Developments Ltd. on Jan. 16, 1996, pursuant to the Business Corp. Act (Ontario). On March 12, 2002, the company acquired Ontzinc Corp., a private Ontario Corp., through a reverse takeover and changed its name to Ontzinc Corp.
Fiscal year-end:  Dec. 31
Nature of business:  The company is an integrated base metals mining and smelting company and is one of the 10 largest zinc producers in North America. It has: four operating mines in Manitoba and Saskatchewan; a metallurgical complex in Flin Flon, Man., comprising a zinc and copper concentrator, a zinc pressure leach, and electro-winning plant and a copper smelter; a zinc concentrator near Snow Lake, Man.; a zinc-oxide plant in Brampton, Ont.; and a 50-per-cent interest in an established marketing joint venture, Considar Metal Marketing Inc. The company also owns two development projects: the Balmat mine in New York state and the Gay's River mine in Nova Scotia; and two exploration projects: the Southwestern Ontario project in Ontario and the San Antonio project in Chile.
Transfer agent and registrar:  Equity Transfer Services Inc., Toronto, Ont.
Share capital
Authorized:  Unlimited common shares 1,045,421,667 warrants
Issued:  77,448,200 common shares and 1,045,421,667 warrants
Reserved:  34,847,388 common shares issuable pursuant to the exercise of the warrants at a price of $3.15 per share until Dec. 21, 2009; 7,744,020 common shares issuable pursuant to the company's stock option plan;
 3,835,020 common shares issuable pursuant to the exercise of broker warrants at $2.58 per share until Dec. 21, 2006; 3,697,849 common shares issuable pursuant to the exercise of common share purchase warrants: 128,628 are each exercisable for one unit that comprises one common share and one-half of one warrant at exercise prices ranging from $1.50 to $7.50 and 3,504,907 warrants exercisable for one common share at exercise prices ranging from $1.80 to $9.00; and 333,333 common shares issuable pursuant the conversion of debentures
Dividends: Payment of dividends in the future is dependent upon the earnings and financial condition of the issuer and other factors that the directors may deem appropriate at the time.