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Silver Wheaton Closes Acquisition Of Precious Metals Streams From HudBay's 777 Mine And Constancia Project

VANCOUVER, September 28, 2012 /PRNewswire/ --

TSX: SLW NYSE: SLW

Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX: SLW) (NYSE: SLW) is pleased to announce that it has closed the previously announced purchase from HudBay Minerals Inc. ("Hudbay") (TSX: HBM) (NYSE: HBM) of 100% of the life of mine silver production from its currently producing 777 Mine ("777"), 100% of the life of mine silver production from its Constancia Project ("Constancia"), as well as 100% of gold production from the 777 Mine until Constancia satisfies a completion test, or the end of 2016, whichever is later. At that point, Silver Wheaton's share of gold production from 777 will be reduced to 50% for the remainder of the mine life.

Silver Wheaton will pay Hudbay total cash consideration of US$750 million, of which US$500 million was paid upon today's closing, with two further payments of US$125 million each to be made upon the satisfaction of minimum capital expenditures having been incurred at Constancia. In addition, Silver Wheaton will make ongoing payments of the lesser of US$5.90 per ounce of silver and US$400 per ounce of gold (both subject to an inflationary adjustment) or the prevailing market price per ounce of silver and gold delivered.

Silver Wheaton made the initial upfront cash payment of US$500 million using cash on hand. Subsequent upfront cash payments totaling US$250 million are also expected to be financed with the remaining cash on hand and continued strong operating cash flows.

ABOUT 777 MINE

Hudbay's flagship 777 mine is located in the prolific Flin Flon Greenstone Belt, Manitoba, Canada, where Hudbay has been mining for nearly 85 years. A low-cost producer of zinc, copper, gold and silver, 777 is an underground mining operation, with an ore concentrator and zinc production facility located immediately adjacent to the mine. 777 commenced commercial production in 2004 and has reserves extending the mine life until 2020. The mine has had good exploration success with drilling in recent years shifting resources to reserve definition. Over 21,000 metres of exploration drilling in 2011 will be followed up with a similar sized program in 2012, with a focus on targeting additional resources. In addition, completion of the 777 North expansion, which is well underway, will provide access to mineral resources in the north and east zones, and will also provide an underground exploration platform to enable the evaluation of additional exploration opportunities near the 777 mine.

ABOUT CONSTANCIA PROJECT

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