Mr. Jack Lundin reports

LUNDIN MINING PROVIDES 2024 GUIDANCE & ANNOUNCES 2023 PRODUCTION RESULTS

Lundin Mining Corp. has released production results for the year ended Dec. 31, 2023, and has provided production guidance for the three-year period of 2024 through 2026, as well as cash cost, capital and exploration expenditure forecasts for 2024.

Highlights:

• 2023 production results:
  • On a consolidated basis, the company achieved guidance (1). Production for all metals was at the midpoint or above for all guidance ranges.
  • On a 100-per-cent basis, consolidated copper production was a record for the company at 314,798 tonnes, and copper equivalent consolidated production was over 550,000 t (2).
  • Candelaria achieved guidance. Copper production was 152,012 t, and gold production was 89,700 ounces.
  • Caserones copper production was 65,210 t for the second half of the year, which exceeded original guidance (3), and on a full year basis was 139,520 t.
  • Chapada achieved guidance. Copper production was 45,719 t, and gold production was on the upper end of guidance at 59,268 oz for the year.
  • Consolidated zinc production was 185,161 t, which was at the midpoint of the guidance. Production at Neves-Corvo was on the upper end of zinc guidance while Zinkgruvan was slightly below zinc guidance.
  • Consolidated gold production was 148,968 oz, which was on the upper end of guidance.
  • Nickel production at Eagle was 16,429 t, and copper production was 13,600 t, both of which exceeded original guidance.
• Two thousand twenty-four guidance on a consolidated basis is largely in line with last year's production guidance:
  • Copper production guidance of 366,000 to 400,000 t;
  • Zinc production guidance of 195,000 to 215,000 t;
  • Gold production guidance of 155,000 to 170,000 t;
  • Nickel production guidance of 10,000 to 13,000 t.

(1) Guidance as most recently disclosed in the company's management's discussion and analysis for the three and nine months ended Sept. 30, 2023.

(2) Calculated based on the ratios of 2023 average metal prices of copper: $3.85 per pound, zinc: $1.20 per lb, nickel: $9.74 per lb, molybdenum: $24.19 per lb, lead: 97 cents per lb, silver: $23.50 per oz and gold: $1,941 per oz.

(3) Caserones guidance is for the second half of 2023. See "Lundin Mining Announces Closing of the Acquisition of Majority Interest in the Caserones Copper-Molybdenum Mine in Chile and Commitments for New $800-Million Term Loan" dated July 13, 2023.

Jack Lundin, president and chief executive officer, commented: "Two thousand twenty-three was a significant year for Lundin Mining, and we are well positioned for growth in 2024. The 51-per-cent acquisition of Caserones led to a record in annual copper production. We have initiated comprehensive value optimization efforts across our Latin American sites. We are beginning to execute on some of these initiatives at Chapada and Candelaria, and the kickoff of optimization work at Caserones will begin this quarter. An exciting exploration program has begun on both the Chilean and Argentine side of the Vicuna district. We will look to drive value from the drill bit as this has proven to be a key contributor to the overall value creation at Lundin Mining.

"Across our critical metals portfolio, the zinc expansion project at Neves Corvo, otherwise known as ZEP, is coming to fruition, leading to back-to-back quarterly record zinc production at this operation. At Zinkgruvan in 2023, improved recoveries from the sequential flotation project were achieved; however, a longer-than-anticipated ramp-up resulted in a slight miss on guidance. Our nickel operation, Eagle, continues to perform and hit the upper end of guidance.

"During the year, the cumulative result was over 550,000 tonnes of consolidated copper equivalent production. This year's guidance shows an increase of over 20 per cent for copper production and 10 per cent for zinc production over 2023. As we turn the page on a transformational year for the company, our focus remains on achieving operational excellence by consistently maintaining elevated safety standards, all while meeting production guidance at competitive costs."

Three-year production outlook 2024 to 2026:

• Two thousand twenty-four updated guidance outlook is in line with previously disclosed production ranges. Consolidated copper production in 2024 has stayed consistent with previous estimates, consolidated zinc production ranges have been slightly adjusted and consolidated gold production ranges have increased for 2024. In 2025, consolidated copper and gold ranges have increased while zinc guidance has stayed in line with previous disclosure.
• Copper production is forecast to be 366,000 to 400,000 t on a consolidated basis in 2024. Higher consolidated copper production is forecast for 2024, mainly due to mine sequencing and the mine plan copper grade profile at Candelaria. Caserones copper production guidance has been increased to 120,000 to 130,000 t on an annual basis to reflect higher planned throughput rates in the mill.
• Zinc production is forecast to increase to 195,000 to 215,000 t on a consolidated basis in 2024, increasing further over the three-year period to reach 220,000 to 240,000 t in 2025 and 2026.
• Consolidated gold production is forecast to be 155,000 to 170,000 oz in 2024 and then taper through the three-year outlook period. Higher consolidated gold production in 2024 is due mainly to mine sequencing and the planned gold grade profile at Candelaria.
• Nickel production is forecast to be 10,000 to 13,000 t in 2024 and then taper over the three-year period. The production profile is driven by the planned mine sequencing and nickel grade as the Eagle East and Upper Keel orebodies at Eagle are nearing the end of their mine life.

• Candelaria: Annual fluctuations in copper and gold production forecasts for the next three years are primarily due to sequencing of the Candelaria open pit. An increase in annual production this year is expected from higher copper and gold grades in the lower benches of phase 11. Initial ore from phase 12 will begin in 2024 and increase through 2026.
• Over the guidance period, total mill throughput is forecast to range between 27 million to 29 million tonnes per year. Debottlenecking initiatives of the Candelaria plant pebble crushing circuit were completed in 2023. Based on the planned mill feed blend and the ore hardness throughput model, annual throughput is expected to approximate 29 Mtpy commencing in 2025.
• Candelaria's 2024 copper and gold production is forecast to be weighted to the second half of the year, primarily owing to mine sequencing and the resultant grade profiles.
• Caserones: During 2024, ore to the concentrator will come from phases 5 and 6, which is expected to have a lower-grade profile compared with 2023. Annual ore throughput is projected to be approximately 34 to 36 Mtpy. Cathode production will range between 15,000 and 19,000 tpy. In 2025 and 2026, ore will be supplied from phases 6 and 7, which is projected to have similar grades to 2024.
• Chapada: Production guidance is based on the current throughput capacity of approximately 23.5 Mtpy over the three-year period with annual fluctuations primarily due to mine sequencing and the forecasted copper and gold grade profiles.
• Ore mining is planned from the North, Southwest, South and Baru pits through 2025 followed by South, Southwest and Baru.
• Eagle: Eagle will be producing ore at similar rates as in 2023 and will be primarily sourced from Eagle East. Metal production is modestly weighted to the first half of the year driven by the higher-grade zone on the lower levels of Eagle East. Development of the Upper Eagle East zone referred to as the Keel zone will progress to enable access to those zones in late 2024 with production ramp-up in 2025/2026. The remaining stopes in the upper zones at Eagle will remain productive through 2024 as supplemental ore meets the annual production plan.
• Neves-Corvo: Copper production guidance is consistent with prior expectations. Two thousand twenty-four copper production is forecast to be weighted to the second half of the year, owing to mine sequencing and the resultant grade profiles. Additional ground support in the mine will be required in the Lombador orebody to maintain mining rates.
• Zinkgruvan: Zinc metal production is forecasted to increase over the three-year period with increased production volume and refinement of operating plans. Zinc head grades are expected to be consistent over the period. Metal recovery rates and concentrate grades are anticipated to improve with further adjustments to the recently improved sequential flotation process. Zinkgruvan's 2024 zinc production is forecast to be modestly weighted to the first half of the year, primarily owing to higher zinc ore throughput. Development toward Dalby and Mellanby orebodies will open new production areas in later 2025.

2024 cash cost (9) guidance

• Candelaria: Cash cost is forecast to be $1.60 per lb to $1.80 per lb of copper, after byproduct credits. The cash cost is expected to benefit from a higher production profile and realized savings from synergies between Candelaria and Caserones. Byproduct credits have been adjusted for the terms of the gold streaming agreement.
• Caserones: Cash cost is forecast to be $2.60 per lb to $2.80 per lb of copper after byproduct credits. The forecasted increase in Caserones cash cost compared with 2023 reflects lower-grade, higher operating costs, as well as lower byproduct credits. Mill throughput is forecast to increase by two to three Mtpy compared with 2023 based on the expected plant utilization and improved availability of the mill.
• Chapada: Cash cost is forecast to be $1.95 per lb to $2.15 per lb of copper in 2024 after unencumbered gold byproduct credits. The forecasted decrease in Chapada's cash costs compared with 2023 reflects lower mine movement volumes and expected savings as the result of cost savings initiatives that were identified late last year as part of an operational optimization process. Effects of copper stream agreements are reflected in the realized copper revenue.
• Eagle: Cash cost is forecast to be $2.80 per lb to $3 per lb of nickel in 2024 after byproduct copper credits. The forecast increase compared with 2023 is primarily a reflection of planned lower production volumes and byproduct credits.
• Neves-Corvo: Cash cost is forecast to be $1.95 per lb to $2.15 per lb of copper in 2024 after zinc and lead byproduct credits. The cash cost is expected to improve compared with the previous year as zinc and lead production volumes increase.
• Zinkgruvan: Cash cost is forecast to be 45 cents per lb to 50 cents per lb of zinc after copper and lead byproduct credits, consistent with 2023 levels.

(9) This is a non-generally accepted accounting principle measure. Please see management's discussion and analysis for the year ended Dec. 31, 2022, and the nine months ended Sept. 30, 2023.

(10) Two thousand twenty-four cash costs are based on various assumptions and estimates, including, but not limited to: production volumes, commodity prices (2024: Cu: $3.75 per lb, Zn: $1.10 per lb, Mo: $20 per lb, Pb: 90 cents per lb, Au: $1,800 per oz and Ag: $23 per oz), foreign currency exchange rates (2024: euros per U.S. dollar: 1.05, U.S. dollar per Swedish krona: 10.50, Colombian pesos per U.S. dollar: 850 and U.S. dollars per Brazilian real: 5.00) and operating costs.

(11) Sixty-eight per cent of Candelaria's total gold and silver production is subject to a streaming agreement, and as such, cash costs are calculated based on receipt of $425 per oz and $4.25 per oz, respectively, on gold and silver sales in the year.

2024 capital expenditure guidance:

• Capital expenditures are forecast to total $1,065-million on a 100-per-cent basis, including expansionary capital expenditures (12), on the Josemaria project. The majority of sustaining capital expenditures is for open-pit waste stripping, underground mine development, tailings storage facility and water management works.

• Candelaria ($300-million): Capitalized waste stripping is forecast to be $170-million, and underground mine development, including ramp works, of approximately $16-million. Capital expenditure for mobile and mine equipment is forecast to be $40-million, and $22-million is estimated for the continued building of Los Diques tailings storage facility. Other sustaining capital requirements are estimated at $40-million.
• Caserones ($205-million): This includes approximately $80-million for capitalized waste stripping, $60-million for TSF and water management systems, and $12-million for mine and mobile equipment. Other sustaining capital requirements are estimated at $35-million.
• Chapada ($110-million): Capitalized waste stripping is estimated at approximately $40-million, $45-million for TSF and water management systems, and $22-million for mine and mobile equipment.
• Eagle ($25-million): Approximately $12-million is for mine development and growth projects, which includes the development of the Upper Keel zone, and $9-million for mobile and mine equipment.
• Neves-Corvo ($125-million): Approximately $55-million is forecast for underground mine development, including infill drilling, and $35-million for capital projects in the mill and mine. Capital expenditures include $10-million for mine and mobile equipment, and $20-million is forecast to be spent for TSF and water management.
• Zinkgruvan ($75-million): Approximately $32-million is for underground development, including development of the Dalby orebody. Expenditure on the sequential flotation project to improve concentrate grades and metal recovery rates is forecast to be $30-million. The rest of the sustaining capital expenditure is primarily for TSF works.
• Josemaria project ($225-million): The estimated capital expenditures in 2024 will continue to support advancing the project prior to a construction decision. An updated capital cost estimate and project schedule are pending completion that will incorporate results from project derisking initiatives and optimization studies. Capital expenditures primarily include continuation of hydrology work, delivery of long-lead mills and motors. Field activities will include road upgrades and geotechnical work, as well as permitting initiatives, mainly for the power line, access road and community relations programs.

(12) Expansionary capital expenditure is a non-generally accepted accounting principle measure, and sustaining capital expenditure is a supplementary financial measure. Please see management's discussion and analysis for the year ended Dec. 31, 2022, for a discussion of non-GAAP measures.

(13) Capital expenditures are based on various assumptions and estimates, including, but not limited to, foreign currency exchange rates (2024: euros per U.S. dollar: 1.05, U.S. dollars per Swedish krona: 10.50, Coloman pesos per U.S. dollar: 850, U.S. dollars per Brazilian real: 5.00).

2024 exploration investment guidance

Exploration expenditures are planned to be $48-million in 2024 primarily for in-mine and near-mine targets at its operations. The largest portion of the planned expenditure is to be at Caserones (12,900 metres) while, at Josemaria, early exploration drilling (5,200 metres) on additional new targets is planned. The focus at Caserones will be deeper in-pit drilling to better define higher-grade breccia zones and exploration drilling to test the sulphide mineral potential below the underlying Angelica oxide deposit. At Josemaria, the exploration priority will be to test the Cumbre Verde target. At Chapada, additional drilling at Sauva will continue to further define higher-grade resources. At Zinkgruvan, the exploration campaign (55,000 metres) will target mineral extensions demonstrating grades of 10 to 20 per cent zinc.

About Lundin Mining Corp.

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

Other information

The technical information in this press release has been prepared in accordance with National Instrument 43-101, and has been reviewed and approved by Arman Barha, PEng, vice-president, technical services, of the company, 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.

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