Mr. Trevor Tennant of Southern Hemisphere reports

LUNDIN MINING COMMITS TO NEXT US$10M PHASE OF LLAHUIN COPPER/GOLD JV AFTER COMPLETING INITIAL EARN-IN

Southern Hemisphere Mining Ltd.'s joint venture partner at the Llahuin copper/gold project in central Chile, Lundin Mining Corp., has now completed its initial expenditure commitments at the project and committed to the next phase of sole-financed exploration expenditure.

Lundin Mining has earned a 20-per-cent interest in the Chilean joint venture company, Minera Llahuin SCM, after completing its initial expenditure commitment of $3-million (U.S.).

This financing commitment forms part of an initial phase comprising $6-million (U.S.) of committed funds, which were jointly provided by Lundin Mining and Southern Hemisphere.

Lundin Mining has also advised that it has decided to continue with the next phase of investment and development of the Llahuin project, comprising $10-million (U.S.) of project expenses, which it will sole finance to earn an additional 31 per cent of the project by November, 2015. In total, Lundin Mining can earn up to 75 per cent of the Llahuin project in three phases by spending a total of $35-million (U.S.) (sole financed) by November, 2018.

Lundin Mining also said it "is very pleased with the quality, efficiency and results of the work conducted so far by Southern Hemisphere at Llahuin. We remain positive that the development of Llahuin would add significant value to both companies."

Southern Hemisphere's managing director, Trevor Tennant, noted the joint venture between the two companies was working extremely well, with the technical JV committee currently focusing on work required to complete an updated JORC-compliant mineral resource estimate. He said:

"This estimate will include the results of all of the drilling completed since the previous resource estimate in September last year.

"We have so far completed around 54,000 m of drilling, with the most recent drilling to be incorporated in an update to the current measured and indicated resource.

"We are looking forward to the completion of this resource upgrade, which will lay the foundations for the next phase of work for the joint venture in the second half of 2013."

Llahuin copper/gold project

The Llahuin project is located within the Coquimbo region of central Chile, approximately 250 kilometres north of Santiago and 17 kilometres south of the mining town of Combarbala. The Llahuin project is located at an altitude of 1,300 metres, situated on the coastal cordillera, and is approximately 56 kilometres from the Pacific Ocean.