Mr. Peter Rockandel reports

LUNDIN MINING FIRST QUARTER 2023 RESULTS

Lundin Mining Corp. had net earnings attributable to Lundin Mining shareholders of $146.6-million (19 cents per share) in the first quarter of 2023. The company also generated adjusted earnings1 of $125.7 million ($0.16 per share), adjusted EBITDA1 of $336.9 million, and adjusted cash flow from operations1 of $235.1 million ($0.30 per share).

"Our operations performed well in the first quarter of 2023, reflecting our continued focus on improving operational consistency and excellence. Copper production increased quarter-over-quarter with strong performance across our portfolio. Zinc production also increased meaningfully with the ongoing ramp-up of the Zinc Expansion Project at Neves-Corvo delivering a fourth quarter of sequential improvement and achieving record quarterly zinc production of nearly 27,800 tonnes. We remain on track to deliver our annual production guidance for all metals and cash costs," commented Peter Rockandel, CEO.

Mr. Rockandel added, "With healthy metal prices, we generated adjusted EBITDA1 of over $335 million and free cash flow from operations1 of over $70 million in the first quarter. We continue to be very constructive on the outlook for the metals we produce and look forward to immediately growing our business with the closing and integration of our acquisition of an initial 51 per cent interest in the Caserones copper-molybdenum mine early in the second half of this year."

Highlights

For the quarter ended March 31, 2023 the company generated revenue of $751.3 million (Q1 2022 - $991.1 million). Production costs were higher than the prior year quarter due to inflationary impacts, however cash cost1 continue on track with recent guidance. The company generated gross profit of $213.3 million (Q1 2022 - $478.8 million) and adjusted EBITDA of $336.9 million (Q1 2022 - $587.8 million).

Overall, our operations performed well during the first quarter of 2023 and the company remains on track to achieve production guidance.

Operational Performance

Candelaria (80 per cent owned): Candelaria produced 39,167 tonnes of copper, and approximately 24,000 ounces of gold in concentrate on a 100 per cent basis in the quarter. Copper production was lower than the comparable prior year quarter due to grades whereas gold production was higher than the prior year quarter due to throughput. Current quarter production costs and copper cash cost of $2.21/lb were higher than the prior year quarter largely owing to higher contractor and maintenance costs. Cash cost was further impacted by union bonus payments for the finalization of the remaining two union negotiations which were successfully completed during the first quarter 2023, and lower sales volumes.

Chapada (100 per cent owned): Chapada produced 9,864 tonnes of copper and approximately 12,000 ounces of gold in concentrate in the quarter. Copper production was lower than the prior year quarter primarily due to planned lower recoveries partially offset by higher throughput. Current quarter production for both metals was above expectations due to higher throughput. Production costs were lower due to lower sales volumes. Copper cash cost of $2.37/lb for the quarter was higher than the prior year quarter due to higher consumable costs and lower sales volumes.

Eagle (100 per cent owned): During the quarter Eagle produced 3,724 tonnes of nickel and 3,140 tonnes of copper which were lower than the prior year quarter due to planned lower grades and lower throughput. Production costs were higher than the comparable prior year quarter due to higher consumable costs. Nickel cash cost in the quarter of $2.43/lb was higher than the prior year quarter due primarily to lower by-product copper price and lower sales volumes.

Neves-Corvo (100 per cent owned): Neves-Corvo produced 7,574 tonnes of copper for the quarter and 27,793 tonnes of zinc. Copper production was lower than the prior year comparable quarter, due primarily to lower throughput and grades, while zinc production was higher primarily due to increased throughput driven by the ramp-up of the Zinc Expansion Project ("ZEP"). Production costs were higher than the prior year due to higher zinc volumes and copper cash cost of $1.69/lb for the quarter was comparable to the prior year quarter.

Zinkgruvan (100 per cent owned): Zinc production of 20,760 tonnes, lead production of 7,407 tonnes and copper production of 1,717 tonnes were higher than the prior year quarter. Zinc and lead production were higher due to higher grades, and better than expected throughput while copper production was higher due to grades. Production costs were lower than the prior year quarter due to favourable foreign exchange. Zinc cash cost of $0.54/lb was higher than the prior year quarter due to lower by-product credits.

Corporate Updates

• On February 8, 2023, the company reported its Mineral Resource and Mineral Reserve estimates as at December 31, 2022.
• On February 22, 2023, the company filed updated technical reports for Candelaria, Neves-Corvo and Eagle.
• On March 23, 2023, the company announced the appointment of Ms. Maria Olivia Recart to the company's Board of Directors.
• On March 27, 2023, the company announced it entered into a binding purchase agreement with JX Nippon Mining and Metals Corporation to acquire a majority interest in the Caserones copper-molybdenum mine ("Caserones") in Chile. The company will pay $800 million and in addition, $150 million in deferred cash consideration over a six year period following the closing date. The company will also have the right to acquire an additional 19 per cent interest in Caserones for $350 million over a five-year period commencing on the first anniversary of the date of closing. The transaction is expected to close in the third quarter of 2023.
• On April 11, 2023, the company announced the Annual Meeting of Shareholders will be held on Thursday, May 11, 2023.
• On April 26, 2023, the company executed a fifth amended and restated credit agreement that extended the term of its revolving credit facility ("the Credit Facility") to April 2028.

Financial Performance

• Gross profit for the quarter ended March 31, 2023 was $213.3 million, a decrease of $265.5 million in comparison to the prior year quarter due to higher operating costs impacted by inflationary impacts, lower metal prices net of price adjustments ($151.8 million) and lower sales volumes.
• For the three months ended March 31, 2023, net earnings of $165.3 million were $212.8 million lower than the prior year comparable period due to lower gross profit partially offset by lower income taxes.
• Adjusted earnings of $125.7 million for the quarter ended March 31, 2023, were lower than the prior year comparable quarter due to lower net attributable earnings.

Financial Position and Financing

During the quarter ended March 31, 2023, cash and cash equivalents decreased by $7.1 million. Cash flow from operations of $211.9 million was used to fund investing activities of $240.1 million. Cash from financing activities was $19.5 million which was comprised primarily of the proceeds from debt on a net basis and the settlement of foreign currency derivatives.

As at March 31, 2023, the company had a net debt balance of $34.6 million.

As at May 3, 2023, the company had cash and net debt balances of approximately $180 million and $90 million, respectively.

Outlook

The company remains in a strong financial position with its producing assets generating material free cash flow from operations which continues to be allocated towards growth projects, acquisitions and shareholder distributions.

All metal production continues to track against the most recently reported guidance ranges as outlined in the MD&A for the year ended December 31, 2022. Metal production is modestly weighted to the second half of the year for all sites except Neves-Corvo where copper is equally weighted and zinc production is expected to increase as initiatives to enable ZEP to consistently achieve nameplate capacity are executed and expected to result in improved overall throughput and metal recovery rates.

Forecast cash costs at all sites are trending within or better than guidance ranges due to lower than anticipated production cost at all sites except Eagle, where cash cost is trending higher due to anticipated lower sales volumes.

The company continues to experience continuing risks associated with global inflation as well as supply chain delivery. To date, there have been no significant impacts on our operations relating to supply chain availability. The company has implemented procurement strategies and foreign exchange and diesel hedging programs to mitigate the impact on costs and continues to monitor these risks.

Cash based capital expenditures, are tracking well to the most recent guidance of $1,100.0 million, inclusive of capitalized costs for the Josemaria Project. Similarly, total exploration expenditures are on target of $45.0 million for 2023.

About Lundin Mining

Lundin Mining is a diversified Canadian base metals mining company with projects and operations in Argentina, Brazil, Chile, Portugal, Sweden and the United States of America, primarily producing copper, zinc, gold and nickel.

The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on May 3, 2023 at 18:00 Eastern Time.

Technical Information

The scientific and technical information in this press release has been prepared in accordance with the disclosure standards of National Instrument 43-101 ("NI 43-101") and has been reviewed by Arman Barha, P.Eng., Vice President, Technical Services, a "Qualified Person" under NI 43-101. Mr. Barha has verified the data disclosed in this release and no limitations were imposed on his verification process.

We seek Safe Harbor.