Common use of Exercise and Settlement Clause in Contracts

Exercise and Settlement. Unless Hudbay has issued an In-the-Money Settlement Notice (as defined below): ● holders of whole Warrants will be entitled to exercise those Warrants effective upon the Expiry Date by delivery of properly completed exercise documentation and payment of the requisite Exercise Price, and ● Hudbay will issue the requisite number of Hudbay Shares to such holders. Hudbay may, at its option, by written notice (an “In-the-Money Settlement Notice”) (which may be given by way of news release) at least 60 days before the then applicable Expiry Date elect to satisfy its obligations in respect of the Warrants exercised effective upon the Expiry Date by payment of their “in-the-money” value. If Hudbay has issued an In-the-Money-Notice, Hudbay may, at its option, satisfy its obligations in respect of each Warrant in respect of which the holder has delivered properly completed exercise documentation by delivering to the holder: ● Hudbay Shares, ● cash, or ● a combination of Hudbay Shares and cash with a value (if Hudbay Shares are delivered in satisfaction of this obligation, their value for this purpose will be equal to the Exercise Reference Price, as defined below) equal to the excess, if any, of (i) the volume weighted average price of one Hudbay Share on the TSX for the 20 consecutive trading days preceding the Expiry Date (the “Exercise Reference Price”) over (ii) the Exercise Price. Extension If Hudbay cannot issue sufficient Hudbay Shares to satisfy all of its obligations in respect of the Warrants it may, at its option and on a successive basis, by written notice (which may be given by way of news release) at least 60 days before the then applicable Expiry Date extend the then-applicable Expiry Date to the earlier of (i) January 1, 2021, and (ii) the date one year following the then current Expiry Date. ● ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇ ● ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ ● Gilmour ▇▇▇▇▇▇▇ ● W. ▇▇▇▇▇▇ ▇▇▇▇▇▇ ● ▇▇▇▇▇▇▇▇▇▇▇ ▇. ▇. ▇▇▇▇▇▇▇▇ ● ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ ● ▇▇▇▇▇▇ ▇. ▇▇▇▇▇ ● ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇ ● ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ● ▇▇▇▇▇▇ ▇. ▇▇▇▇ ● ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ ● ▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ ● ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ (▇▇▇▇) ● ▇▇▇▇▇▇ ▇▇▇▇ ● ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ ● ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ ● ▇▇▇▇▇ ▇▇▇▇▇▇ ● ▇▇▇▇ ▇. ▇▇▇▇▇▇▇ ● ▇▇▇▇ ▇. ▇▇▇▇▇ ● Diamond Hill Investment Corp. ● Front Street Capital ● Estate of ▇▇▇▇▇

Exercise and Settlement. Unless Hudbay has issued an In-the-Money Settlement Notice (as defined below): ● · holders of whole Warrants will be entitled to exercise those Warrants effective upon the Expiry Date by delivery of properly completed exercise documentation and payment of the requisite Exercise Price, and ● · Hudbay will issue the requisite number of Hudbay Shares to such holders. Hudbay may, at its option, by written notice (an “In-the-Money Settlement Notice”) (which may be given by way of news release) at least 60 days before the then applicable Expiry Date elect to satisfy its obligations in respect of the Warrants exercised effective upon the Expiry Date by payment of their “in-the-money” value. If Hudbay has issued an In-the-Money-Notice, Hudbay may, at its option, satisfy its obligations in respect of each Warrant in respect of which the holder has delivered properly completed exercise documentation by delivering to the holder: ● · Hudbay Shares, ● · cash, or ● · a combination of Hudbay Shares and cash with a value (if Hudbay Shares are delivered in satisfaction of this obligation, their value for this purpose will be equal to the Exercise Reference Price, as defined below) equal to the excess, if any, of (i) the volume weighted average price of one Hudbay Share on the TSX for the 20 consecutive trading days preceding the Expiry Date (the “Exercise Reference Price”) over (ii) the Exercise Price. Extension If Hudbay cannot issue sufficient Hudbay Shares to satisfy all of its obligations in respect of the Warrants it may, at its option and on a successive basis, by written notice (which may be given by way of news release) at least 60 days before the then applicable Expiry Date extend the then-applicable Expiry Date to the earlier of (i) January 1, 2021, and (ii) the date one year following the then current Expiry Date. ● · ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇ ● · ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ ● · Gilmour ▇▇▇▇▇▇▇ ● · W. ▇▇▇▇▇▇ ▇▇▇▇▇▇ ● · ▇▇▇▇▇▇▇▇▇▇▇ ▇. ▇. ▇▇▇▇▇▇▇▇ ● · ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ ● · ▇▇▇▇▇▇ ▇. ▇▇▇▇▇ ● · ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇ ● · ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ● · ▇▇▇▇▇▇ ▇. ▇▇▇▇ ● · ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ ● · ▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ ● · ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ (▇▇▇▇) ● · ▇▇▇▇▇▇ ▇▇▇▇ ● · ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ ● · ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ ● · ▇▇▇▇▇ ▇▇▇▇▇▇ ● · ▇▇▇▇ ▇. ▇▇▇▇▇▇▇ ● ▇▇▇▇ ▇. ▇▇▇▇▇ ● Diamond Hill Investment Corp. ● Front Street Capital ● Estate of ▇▇▇▇▇