Mr. Ron Hochstein reports

LUNDIN GOLD REPORTS FOURTH QUARTER AND FULL YEAR RESULTS

Lundin Gold Inc. has released results for the fourth quarter and year ended Dec. 31, 2023. Lundin Gold's year is highlighted by its production of 481,274 ounces of gold at an all-in sustaining cost of $860 per oz sold, meeting upwardly revised production guidance of 450,000 to 485,000 oz and AISC guidance of $820 to $870 per oz sold. Cash from operating activities of $519-million was generated for the year resulting in free cash flow of $263-million, which is net of a one-time interest and finance charge payment of $129-million from the full repayment of the gold prepay facility. All amounts are in U.S. dollars unless otherwise indicated.

Ron Hochstein, president and chief executive officer, commented: "Lundin Gold continues its strong track record by meeting its upgraded production and improved cost guidance for 2023 and, in doing so, generating significant cash flow. Looking ahead to 2024, we are focused on operational excellence and delivering the process plant expansion project to achieve increased throughput and recovery improvements. Furthermore, we continue to make significant headway on our exciting exploration programs: Two thousand twenty-four will be the largest drilling program ever conducted in the district that hosts Fruta del Norte. We expect continued generation of free cash flow, which will enable the company to continue to pursue debt reduction, [mergers and acquisitions], and potential increase in returns to shareholders through increased dividends."

Operating and financial results summary

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

Fourth quarter and full year highlights

Financial results -- cash flow story intact:

• Fourth quarter gold sales of 98,005 ounces, consisting of 65,223 oz of concentrate and 32,782 oz of dore, at an average realized gold price of $2,021 per oz for total gross revenues from gold sales of $198-million. For 2023, sales totalled 481,274 oz gold, and total revenues from gold sales amounted to $929-million.
• Net of treatment and refining charges, revenues in the fourth quarter and 2023 were $191-million and $903-million, respectively.
• Cash operating costs and AISC for the quarter were $832 and $1,062 per oz of gold sold, respectively. Both metrics were impacted by a decrease in oz sold compared with previous quarters. In particular, AISC was impacted by the timing of sustaining capital expenditures incurred to complete the fourth raise of the tailings dam plus other projects, including the underground maintenance facility. For 2023, cash operating costs and AISC were $697 and $860 per oz of gold sold, respectively, which are in line with the company's improved 2023 guidance.
• Cash provided by operating activities was $92.6-million in the fourth quarter, and the company generated free cash flow of $62.3-million from operations, or 26 cents per share. For 2023, cash from mining operations was $519-million, and the company generated free cash flow of $263-million, or $1.11 per share. At the end of 2023, the company had a cash balance of $268-million.
• Earnings before interest, taxes, depreciation, and amortization and adjusted EBITDA during the fourth quarter were $67.3-million and $95.9-million, respectively, with the difference resulting from derivative losses recognized during the year. For the year, EBITDA and adjusted EBITDA were $494-million and $526-million, respectively.
• In the fourth quarter, net income was $11.1-million, including a derivative loss of $28.6-million, net of corporate, exploration, finance costs and associated taxes. Adjusted earnings, which exclude the derivative loss, were $33.2-million. In 2023, net income and adjusted earnings were $179-million and $204-million, respectively, or 86 cents per share.

Production results -- another strong quarter, room to improve:

• Gold production during the fourth quarter totalled 98,310 oz, composed of 65,298 oz in concentrate and 34,012 oz as dore. Gold production for 2023 was 481,274 oz, achieving the upper end of upgraded production guidance.
• During the fourth quarter, 405,705 tonnes of ore were mined while the mill processed 427,743 tonnes of ore at an average throughput of 4,649 tonnes per day. In 2023, a total of 1,635,550 and 1,654,520 tonnes of ore were mined and processed, respectively. Ore inventory management is the primary reason for the difference between ore mined and processed. Both the fourth quarter and annual processing tonnages are records for FDN.
• The average ore grade milled in the fourth quarter was 8.2 grams per tonne, with average recovery at 88.1 per cent. For 2023, the average grade of ore milled was 10.2 g/t with average recovery at 88.4 per cent. The lower ore grade experienced during the quarter was expected based on the current mine plan while recoveries were affected by processing of ore from sectors that contain higher levels of finely disseminated sulphide minerals, which impacted flotation recovery.

Outlook:

• Gold production at FDN in 2024 is projected to be between 450,000 and 500,000 oz based on an average throughput rate of 4,500 tpd, average recoveries of 89 per cent and average head grade of 9.9 g/t.
• Completion by the end of the year of the $36-million process plant expansion project to increase plant throughput to 5,000 tpd and improve metallurgical recoveries by approximately 3 per cent is expected.
• Two thousand twenty-four cash operating costs are estimated to average between $680 and $740 per oz of gold sold, and AISC is expected to average between $820 and $890 per oz of gold sold. Both cash operating costs and AISC will vary throughout the year.
• Total sustaining capital in 2024 is expected to range between $35-million and $45-million, and will include conversion drilling, preliminary works for future TSF expansion, implementation of a mine dispatch system and upgrade of camp facilities.
• The company intends to release updated estimates of mineral reserves and resources for FDN near the end of the first quarter of 2024 based on the results of its 2023 conversion drilling program.
• Expansion of the near-mine and regional exploration programs is expected with a planned 56,000 metres of drilling in 2024 and a budget of $42-million, the largest program in the history of FDN since its discovery in 2006.
• The company has a continued focus on deleveraging the balance sheet, including assessing options related to the potential buyback of the stream facility, which has a 50-per-cent buyback option for $150-million in June, 2024, and a further 50-per-cent buyback option for $225-million in June, 2026.
• The company anticipates continuing to declare quarterly dividends of at least 10 cents per share, which are equivalent to approximately $100-million annually.

Corporate

The company paid quarterly dividends of 10 cents per share for a total of $94.9-million during the year. With the release of its year-end 2023 results, the company has declared a cash dividend of 10 cents per share, which is payable on March 25, 2024 (March 28, 2024, for shares trading on Nasdaq Stockholm), to shareholders of record on March 8, 2024.

The company's second Task Force on Climate-related Financial Disclosures-aligned climate change report and seventh annual sustainability report were published in May. Based on publicly available data from 152 gold mines that reported their Scope 1 and 2 greenhouse gas emissions in 2021 and on Lundin Gold's 2022 emission performance, the emission intensity of Fruta del Norte was among the lowest in the industry. The company has set a target to be carbon neutral by 2030 with respect to its Scope 1 and 2 emissions based on its current life-of-mine plan.

A number of changes to the company's directors took place in 2023. At the company's annual shareholders meeting on May 15, 2023, Angelina Mehta was elected as a director, replacing Chantal Gosselin, who did not stand for re-election. Furthermore, upon the acquisition of the company's largest shareholder, Newcrest Mining Ltd., by Newmont Corp. on Nov. 6, 2023, the company appointed two new directors to the board as Newmont nominees: Melissa Harmon and Scott Langley. Craig Jones and Jill Terry, the former Newcrest nominees, resigned from the board on the same day.

The company also announced several changes to the company's officers during the year, including the appointment of Christopher Kololian as chief financial officer, shortly after the retirement of Alessandro Bitelli, and Terry Smith as chief operating officer. With the departure of Nathan Monash, vice-president, sustainability, Sheila Colman took on the role of vice-president, legal and sustainability, and corporate secretary, while Iliana Rodriguez, vice-president, human resources, departed the company early in the first quarter.

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 Friday, Feb. 23, at 7 a.m. Pacific Time, 10 a.m. Eastern Time or 4 p.m. Central European Time.

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:  0200-899-189

Conference ID:  Lundin Gold/89101592

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 its completion until Feb. 28, 2024.

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

International replay number:  1-416-764-8677

Replay passcode:  101592 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.

We seek Safe Harbor.