Mr. Ron Hochstein reports

LUNDIN GOLD TO BUY OUT 100% OF STREAM FACILITY TO BECOME DEBT FREE

Lundin Gold Inc. has entered into an agreement with Newmont Corp. to buy out 100 per cent of the balance of the stream credit facility and offtake agreement for its 100-per-cent-owned Fruta del Norte gold mine in Ecuador for total consideration of $330-million. All amounts are in United States dollars, unless otherwise indicated.

Ron Hochstein, president and chief executive officer, commented: "I'm very pleased to announce the buyout of the stream facility and offtake. With this milestone complete, Lundin Gold will have repaid in full all of its project finance debt only four years after achieving commercial production at Fruta del Norte. Upon closing, the company will be debt-free and have increased exposure to rising gold prices, resulting in increased amounts of free cash flow to support capital allocation initiatives, including further growth and shareholder returns."

The stream facility and offtake were established in 2017 as part of a project financing package to finance the development and construction of Fruta del Norte. The stream facility was repayable in variable monthly instalments equivalent to the value of 7.75 per cent of gold production less $408 per ounce and 100 per cent of the silver production less $4.08 per ounce up to a maximum of 350,000 ounces of gold and six million ounces of silver. The offtake provided Newmont the option to purchase 50 per cent of Fruta del Norte's gold production up to a maximum of 2.5 million ounces at a price based on a defined quotational period. Under the terms of the stream facility agreement, Lundin Gold had the option to buy back: (i) 50 per cent of the remaining stream facility on June 30, 2024, for $150-million; and/or (ii) buy back the other 50 per cent of the stream facility on June 30, 2026, for $225-million.

The negotiated purchase price for the stream facility and the offtake of $330-million is payable in cash, with the first tranche of $180-million due on closing of the transaction, which is targeted on June 28, 2024. Payments and deliveries will continue in accordance with the terms of the stream facility and offtake until and including the effective date. The final tranche of the purchase price of $150-million is due on or before the end of the third quarter of 2024.

About Lundin Gold Inc.

Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeastern Ecuador. 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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