Mr. Ron Hochstein reports

LUNDIN GOLD REPORTS SECOND QUARTER 2023 RESULTS AND UPDATES 2023 GUIDANCE

Lundin Gold Inc. has released results for the second quarter and first half of 2023, highlighted by Q2 production of 129,731 ounces of gold and sales of 128,958 ounces, at a cash operating cost (1) of $644 per oz sold and all-in sustaining cost (AISC) (1) of $802 per oz sold. For the first half of 2023, Lundin Gold produced 269,752 oz and sold 263,649 oz gold at an AISC of $765 per oz. Lundin Gold generated $132-million in free cash flow (1) over the three-month period, the highest quarterly free cash flow (1) achieved to date. All amounts are in U.S. dollars unless otherwise indicated.

Based on very strong performance during the first half of 2023, the company has increased its 2023 production guidance to 450,000 to 485,000 oz. In addition, the company has reduced its 2023 cash operating cost (1) guidance to $650 to $700 per oz sold and AISC (1) to $820 to $870 per oz sold. This is compared with previous production guidance of 425,000 to 475,000 oz, cash operating cost (1) guidance of $700 to $760 per oz sold and AISC (1) guidance of $870 to $940 per oz sold.

Ron Hochstein, president and chief executive officer, commented: "As a result of strong operating results in the first half of 2023 and confidence that our team can continue to deliver excellent performance, we are increasing production guidance and reducing cash operating cost (1) and AISC (1) guidance. Specifically, we are pleased that the bottom of our original cost guidance range is now the top of our revised cost guidance range. We've said that Lundin Gold is a cash flow story for some time now, and our free cash flow generated during the second quarter highlights that. This free cash flow enables us to fund future highly prospective exploration programs, pay down our debt, pay dividends and look at potential expansion opportunities. The company is in a strong position, and I am excited to take this momentum into the second half of the year."

(1) Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found on pages 13 to 16 of the company's management's discussion and analysis for the three and six months ended June 30, 2023, available on SEDAR+.

Operating and financial results summary

The attached two tables provide an overview of key operating and financial results.

Outlook -- guidance increased following strong first half

Achievements during the first half of 2023 provide the company with a positive outlook for the rest of the year, and as a result, production guidance is increased to 450,000 to 485,000 oz while cost guidance is decreased for both cash operating cost and AISC to $650 to $700 per oz sold and $820 to $870 per oz sold, respectively. Production for the second half of 2023 is expected to decrease relative to the first half of the year driven by a combination of lower grades and lower recoveries due to processing of ore from certain sectors of the mine with less favourable geology.

In addition, AISC (1) is expected to increase with continued ramp-up of sustaining capital activities and lower expected gold production levels. Sustaining capital is expected to increase substantially during the second half driven by construction of the fourth raise of the tailings dam, as well as several other capital projects. In addition, the conversion drilling program, aiming to convert inferred to indicated mineral resources, is planned to continue with results expected to be incorporated into the geological model and the new resource estimate in the first quarter of 2024.

The near-mine drilling program plans to continue to delineate the FDNS and Bonza Sur targets, where systems of epithermal veins/veinlets have been identified and remain open. Three rigs are dedicated to the detailing and expansion of the mineralized zones at depth and along strike. Another surface rig and underground rig continue to explore for major discoveries in the near-mine district targeting the extension of major controlling structures at FDN in new sectors. The near-mine program is expected to comprise a total of 23,000 metres of drilling for 2023.

The regional drilling program continues to focus on the southern Suarez basin, advancing along the eastern and western borders of the basin. A second rig is expected to be added to advance numerous target areas identified during the previous quarters. The regional drilling program continues to be expected to comprise a total of 12,500 metres for the year, with two rigs currently operating. The combined near-mine and regional exploration budget for 2023 remains at $24.6-million.

The company anticipates declaring quarterly dividends of 10 cents per share, equivalent to approximately $100-million annually, based on currently issued and outstanding shares.

(1) Certain additional disclosures for these specified financial measures have been incorporated by reference and can be found on pages 13 to 16 of the company's management's discussion and analysis for the three and six months ended June 30, 2023, available on SEDAR+.

Qualified persons

The technical information relating to FDN contained in this news release has been reviewed and approved by Ron Hochstein, PEng, Lundin Gold's president and chief executive officer, who is a qualified person under National Instrument 43-101. The disclosure of exploration information contained in this press release was prepared by Andre Oliveira, PGeo, Lundin Gold's vice-president, exploration, who is a qualified person in accordance with the requirements of NI 43-101.

Webcast and conference call

The company will host a conference call and webcast to discuss its results on Thursday, Aug. 10, at 7 a.m. PT, 10 a.m. ET or 4 p.m. CET.

Conference call dial-in numbers

Participant dial-in North America:  1-416-764-8659

Toll-free participant dial-in North America:  1-888-664-6392

Participant dial-in Sweden:  0200899189

Conference ID:  Lundin Gold/61558460

A link to the webcast will be available on the company's website.

A replay of the conference call will be available two hours after the completion of the call until Aug. 24, 2023.

Toll-free North America replay number:  1-888-390-0541

International replay number:  1-416-764-8677

Replay passcode:  558460 followed by the number sign

About Lundin Gold Inc.

Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeast Ecuador and a large exploration land package that hosts the Fruta del Norte deposit at its northern edge. Fruta del Norte is among the highest-grade operating gold mines in the world.

The company's board and management team have extensive expertise in mine operations and are dedicated to operating Fruta del Norte responsibly. The company operates with transparency and in accordance with international best practices. Lundin Gold is committed to delivering value to its shareholders while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace, and minimizing the environmental impact. The company believes that the value created through the development of Fruta del Norte will benefit its shareholders, the government and the citizens of Ecuador.

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