OSC Requires Shareholder Approval For Highly Dilutive, Share For Share Acquisition Involving Public Companies

On January 23, 2009, the Ontario Securities Commission (the "OSC") released its decision in which it set aside a decision of the Toronto Stock Exchange ( the "TSX") approving the listing of additional common shares of HudBay Minerals Inc. ("HudBay") to be issued in connection with the acquisition by HudBay of all of the common shares (the "Transaction") of Lundin Mining Corporation ("Lundin") without requiring that the Transaction be approved by HudBay shareholders. The OSC decision sets out the approach taken by the OSC, however full reasons for the decision were not released and are expected to follow in due course.

This decision arises from an application made on January 6, 2009 by Jaguar Financial Corporation ("Jaguar"), a HudBay shareholder, to the OSC seeking an order of the OSC setting aside the decision of the TSX and requiring, as a condition of the TSX's approval of the listing of the additional HudBay common shares, that HudBay obtain shareholder approval