Mr. Jack Lundin reports

LUNDIN MINING FOURTH QUARTER AND FULL YEAR 2023 RESULTS

Lundin Mining Corp. has released its fourth quarter and full-year 2023 financial results. Unless stated otherwise, results are presented on a 100-per-cent basis, and Caserones results are from July 13, 2023.

Jack Lundin, president and chief executive officer, commented: "Two thousand twenty-three was a milestone year for the company. We finished the year, generating a record $3.4-billion in revenues and achieved our best ever quarterly and full-year copper production, which we forecast to further increase by over 15 per cent in 2024. Our 2023 financial performance was strong with $1.4-billion in adjusted [earnings before interest, taxes, depreciation and amortization], $345-million in free cash flow from operations, and we returned $206-million to our shareholders in dividends.

"The company's record copper production was driven by our strategic acquisition of a majority interest in Chile's Caserones copper mine, as well as organically through our expansion project at Neves-Corvo, which also contributed to record fourth quarter zinc production for the company. Going forward, we will be disciplined in our growth plans and capital allocation as we continue to optimize assets and operational efficiencies to drive down costs.

"At Josemaria, we're derisking the project via optimization and trade-off studies that aim to enhance the overall value of the project. We are concurrently continuing to explore potential partnership opportunities and actively working towards establishing stability agreements in Argentina."

Fourth quarter highlights:

• Copper production: consolidated production of 103,337 tonnes of copper in the fourth quarter, a quarterly record for the company and an increase of over 80 per cent on the same quarter in the previous year;
• Other production: during the quarter, a total of 50,719 tonnes of zinc, 3,729 tonnes of nickel and approximately 44,000 ounces of gold were produced; the zinc expansion project at Neves-Corvo contributed to record quarterly zinc volumes being produced;
• Revenue: $1.06-billion in the fourth quarter;
• Adjusted EBITDA: $419.7-million generated during the quarter;
• Adjusted earnings: net earnings attributable to shareholders of the company were $38.8-million (five cents per share) in the fourth quarter with adjusted earnings of $79.7-million (10 cents per share);
• Cash generation: cash provided by operating activities was $306.1-million, and free cash flow from operations was $116.8-million, which included a working capital build of $56.0-million.

Full-year 2023 highlights:

• Copper production: record copper production of 314,798 tonnes of copper for the full year, which is above the midpoint of originally published 2023 annual copper production guidance;
• Revenue: $3,392.1-million for the full year;
• Adjusted EBITDA: $1,363.5-million generated during the full year;
• Adjusted earnings: net earnings attributable to shareholders of the company were $241.6-million (31 cents per share) in 2023 and adjusted earnings of $336.2-million (44 cents per share);
• Cash generation: during the year, cash provided by operating activities was $1,016.6-million, and free cash flow from operations amounted to $345.1-million, which included a working capital build of $7.6-million;
• Balance sheet: to finance the Caserones acquisition, the company obtained a term loan in July, 2023, of a principal amount of $800.0-million with an additional $400.0-million accordion option, maturing July, 2026; as at Dec. 31, 2023, the company had a net debt balance of $946.2-million, excluding lease liabilities;
• Growth: the company acquired a 51-per-cent interest in the Caserones copper mine on July 13, 2023, which added an additional 120,000 to 130,000 tonnes of copper to the company's production profile on a 100-per-cent basis; the acquisition adds another long-life asset in a Tier 1 jurisdiction, which is strategically located in the Vicuna district;
• Leadership: Jack Lundin assumed the role of chief executive officer in the fourth quarter of 2023; during the year, several senior leadership changes took place to add financial, technical and operational capacity to the team as the company's head office relocated to Vancouver.

Outlook

Production, cash cost, capital expenditure and exploration investment guidance for 2024 remains unchanged from the most recently reported guidance as outlined in the news release "Lundin Mining Provides 2024 Guidance & Announces 2023 Production Results" dated Jan. 15, 2024.

2024 exploration investment guidance

Total exploration expenditure guidance for 2024 is $48.0-million.

Exploration: Exploration drilling campaigns are under way at Caserones, Josemaria, Chapada and Zinkgruvan. Drilling at Caserones is targeting the Angelica target and Caserones sulphide deep target with three rigs. Initial holes are under way at Josemaria's Cumbre Verde target, and additional roads are being developed to gain access to higher-priority areas. At Chapada, drilling is focused on higher-grade corridors within known areas of mineralization that could contribute higher grades to the mine plan. At Zinkgruvan, drilling with six rigs is focused on extending multiple deposits, with the priority on the high-grade Borta Barkom area.

Senior leadership appointments

The company would also like to announce the executive appointments of Patrick Merrin as executive vice-president, technical services, and Joel Adams as vice-president, commercial.

Mr. Merrin

Mr. Merrin was appointed executive vice-president, technical services, and brings over 25 years of international experience in mining and metals, including 10 years in executive and senior technical, project and operating roles. Mr. Merrin was appointed chief executive officer of Copper Mountain Mining prior to its acquisition in 2024. He has also worked as senior vice-president, Canadian operations, with Newcrest Mining, chief operating officer of mining with the Washington companies and senior vice-president of Canadian operations with Goldcorp. Earlier in his career, he also held positions with Hudbay Minerals, Xstrata and Anglo American.

Mr. Merrin holds a bachelor of chemical engineering from McGill University and a master of business administration from the Rotman School of Business at the University of Toronto, and is a registered professional engineer (Ontario).

Mr. Adams

Mr. Adams was appointed vice-president, commercial, and will lead Lundin Mining's commercial strategy. He has more than 15 years of experience as a base metal trader and in logistics management.

Prior to joining Lundin Mining, he was a portfolio manager with Balyasny Asset Management, where he was focused on commodity trading. In addition, Mr. Adams was a senior base metal trader at Trafigura and, prior to that, held diverse roles within Glencore's base metal business from 2010 to 2020 as a senior member of the copper division in Switzerland.

He holds a bachelor's degree in international business from the University of Colorado.

About Lundin Mining Corp.

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

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 and has been reviewed by Arman Barha, PEng, 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.

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