Eagle East

LUNDIN MINING ANNOUNCES EAGLE EAST FEASIBILITY STUDY RESULTS AND PROVIDES A PROJECT UPDATE

Toronto, April 10, 2017 (TSX: LUN; OMX: LUMI) Lundin Mining Corporation (“Lundin Mining” or the “Company”) is pleased to announce the results of a Feasibility Study, including an updated Mineral Resource estimate and a maiden Mineral Reserve estimate, on the high grade Eagle East nickel/copper mineralization, as well as provide an update on the project progress.

(This news release contains forward-looking information about expected future events and financial and operating performance of the Company. We refer to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on page 5. All currency figures are in US$ unless otherwise stated.)

Highlights

  • The Feasibility Study demonstrates the viability of mining Eagle East as an extension of the current Eagle Mine with an incremental estimated post-tax net present value (“NPV”) of $205 million at an 8% discount rate and an estimated internal rate of return (“IRR”) of 47%. The estimated pre-production capital cost is $102 million.
  • Given the robust results of the Feasibility Study, the Company has approved the full development of Eagle East subject to the successful receipt of amendments to the mining permit.
  • An updated Mineral Resource estimate comprising 1.29 million tonnes classified as Indicated grading 5.2% Ni and 4.2% Cu and an additional 0.29 million tonnes of Inferred grading 1.7 % Ni and 1.4% Cu.
  • The Feasibility Study indicates that these Mineral Resources can be mined with no significant changes to the current mine, ore transport, mill, and tailings infrastructure.
  • Similar mining methods to Eagle are proposed and a maiden Probable Mineral Reserve of 1.54 Mt at 3.7% Ni and 3.0% Cu has been estimated. Mining of this Mineral Reserve will significantly increase nickel and copper production from 2020 and extend estimated mine life to at least 2023.
  • The Michigan Department of Environmental Quality has approved the initial Eagle East access ramp development within the existing Eagle mine boundary. An application for a modification to the existing Part 632 mining permit to allow the mining of Eagle East, with a supporting Environmental Impact Assessment, was submitted in late March 2017 and a decision is expected prior to the end of 2017.
  • Eagle East exploration/access ramp development has progressed well since commencement in July 2016. At the end of Q1 2017, a total of 938 metres of centreline advance had been completed together with the purchase of additional mobile mining equipment and installation of mining infrastructure. Ongoing drilling has enabled a Probable Reserve classification, a mine plan update and improved forecast return on investment.

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