Mr. Jamie Beck reports

LUNDIN GOLD RECEIVES NOTICE OF ASSESSMENT REGARDING SOVEREIGN ADJUSTMENT

Lundin Gold Inc. has received a notice of assessment from Ecuador's tax authority, the Servicio de Rentas Internas (SRI), in respect of sovereign adjustment for the 2023 fiscal year. The assessment for the 2023 fiscal year indicates a proposed amount payable of $73-million plus potential fines and penalties of $81-million for a total amount of $154-million, excluding interest.

Lundin Gold believes the assessment is not consistent with the sovereign adjustment calculation as set out in the exploitation agreement with the government of Ecuador, which, in combination with the investment protection agreement, establishes the applicable fiscal, legal, tax and dispute resolution framework for the Fruta del Norte (FDN) operation.

FDN continues to operate normally, and the assessment does not affect current operations, previously issued guidance, exploration and expansion plans, or the company's capital return strategy. The company will provide further updates as appropriate as the matter progresses.

Jamie Beck, president and chief executive officer, stated: "Lundin Gold has a positive and constructive relationship with the government of Ecuador and we intend to work through the appropriate channels to resolve this matter. Based on our review, we believe the assessment results from a misinterpretation of the calculation methodology set out in our exploitation agreement. We remain confident in our interpretation and will take the appropriate steps to escalate this issue to protect our rights under our agreements."

Summary of agreements -- exploitation agreement and investment protection agreement

Lundin Gold's Fruta del Norte operation is governed by an exploitation agreement and an investment protection agreement with the government of Ecuador, which it entered into prior to the development of FDN and establish a stable fiscal, legal, tax and dispute resolution framework for the life of the mine. Under this framework, the company pays:

• Corporate income tax at a rate of 22 per cent;
• A 5-per-cent net smelter return royalty, net of advance royalty payments;
• State profit sharing of 12 per cent of taxable profits;
• Payroll and withholding taxes, recoverable value-added tax and other statutory charges.

The exploitation agreement also provides that the government of Ecuador's share of cumulative benefits derived from FDN will not be less than 50 per cent. To the extent that the government of Ecuador's cumulative benefit falls below 50 per cent, the company will be required to pay an annual sovereign adjustment. Each year, the benefits to the company will be calculated as the net present value of the actual cumulative free cash flows of FDN since its inception. The government of Ecuador's benefit will be calculated as the present value of cumulative sum of taxes paid, including corporate income taxes, royalties, labour profit sharing paid to the state, non-recoverable VAT (value-added tax) and any previous sovereign adjustment payments.

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 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 through operational excellence and growth while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace and minimizing the environmental impact. Furthermore, Lundin Gold is focused on continued exploration on its extensive and highly prospective land package to identify and develop new resource opportunities to ensure long-term sustainability and growth for the company and its stakeholders.

We seek Safe Harbor.