LUNDIN GOLD THREE-YEAR OUTLOOK FORECASTS CONTINUED GROWTH IN GOLD PRODUCTION FROM FRUTA DEL NORTE | Daily News Byte

Production in 2023 is estimated between 425,000 and 475,000 ounces

VANCOUVER, BC, November 29, 2022 /CNV/ – Lundin Gold Inc. (TSX: LUG) (Nasdak Stockholm: LUG) (OTCKKS: LUGDF) (“Lundin Gold” or the “Company”) is pleased to announce its 2023 guidance and three-year outlook for gold production. All amounts are in US dollars unless otherwise noted. View the PDF

Most important:

• Production in 2023 is estimated at between 425,000 and 475,000 ounces (“oz”).

• Cash operating costs¹ and overall maintenance costs[1] (“AISC”) for 2023 is expected to range between 700 dollars and 760 dollars and 870 dollars and 940 dollars per oz of gold sold, respectively.

• The total sustainable capital in 2023 is estimated at $45 to the 55 million dollars.

• It is planned to drill 28,000 meters as part of the near-mine exploration and regional exploration program by 2023.

The company’s outlook for production, working capital and AISC for the next three years is given in the table below.

Ron Hochsteinpresident and CEO commented, “Now that the raising of the south vent is complete, the additional ventilation will allow us to increase the extraction rate to 4,400 tons per day, to match the expected mill throughput. At current gold prices and considering the low cost of this mine, despite inflationary pressure, we look forward to continuing to generate strong free cash flow for years to come with production forecast well in excess of 400,000 oz.“

Guidelines for 2023 and outlook for 2023-2025

Fruta del Norte’s 2023 gold production is estimated at between 425,000 and 475,000 oz based on an average flow rate of 4,400 tpd. It is estimated to drop to an average of 9.67 g/t, with fluctuations expected throughout the year as different parts of the ore body are exploited. The average recovery of the mill for the year is estimated at 90%.

The story continues

Cash operating costs are estimated to range between 700 dollars and 760 dollars per oz of gold sold in 2023, with variability expected over the year. AISC for 2023 is expected to range in between 870 dollars and 940 dollars per oz of gold sold, based on an assumed gold price of $1,650 / oz and silver price from $18.50 / oz. This reflects “steady” operations with higher unit costs compared to 2022 due to mining and milling of lower-grade ore, inflationary pressures resulting in increased consumables and transportation costs, and higher maintenance requirements as equipment ages.

The total sustainable capital in 2023 is estimated at $45 to the 55 million dollars and will include a fourth lift of the tailings dam, several items not completed in 2022, such as a new storage facility, as well as new projects such as a new wastewater treatment plant and several mine and plant efficiency improvement projects.

The predicted fluctuation in gold production over three years is mainly due to expected variations in the quality of mined and milled ore. Apart from variations in the price of gold and possible continued inflationary pressures affecting cash operating costs and AISC, another significant factor affecting AISC is capital maintenance which is expected to be higher in the years when tailings are planned (2023 and 2025). ).

Other activities in 2023

In accordance with the dividend policy approved in Q2 2022, the Company plans to continue paying dividends, moving to quarterly dividends of at least $0.10 per action starting from March 2023 after the publication of the annual results.

Lundin Gold it also expects to continue its exploration programs near the mine and the region and plans 28,000 meters of drilling using at least five rigs in 2023 compared to 22,500 meters in 2022.

The near-mine program will focus on underground and surface drilling at or near Fruta del Norte. Drilling indications in 2022 suggest significant potential to extend the Fruta del Norte resource at depth, as well as to the east, west and south of the current resource envelope. The near-mine program is estimated to cost 2023 9.4 million dollars and intends to drill 15,500 meters. Drilling is intended to confirm indications of both the potentially larger Fruta del Norte mineralized envelope and the existence of satellite deposits.

The regional program will focus on several research targets located in the 16 km long Suarez Basin, with the aim of identifying another Fruta del Norte. It is estimated that the regional program for 2023 will cost 11.7 million dollars and will drill 12,500 meters.

Non-GAAP financial measures

This announcement relates to certain financial measures, such as cash operating expenses and AISC, which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. These measures may differ from those made by other companies and accordingly may not be comparable to such measures published by other companies. These measures are calculated on a basis consistent with historical periods. Please see the Company’s MD&A filed on SEDAR under the Company’s profile at www.sedar.com, pages 13 through 16, for the third quarter of 2022 for an explanation of the non-IFRS measures used.

Qualified persons

The technical information related to Fruta del Norte contained in this Release has been reviewed and approved by Ron Hochstein P. Eng, Lundin Gold’s President and CEO who is a qualified person under National Instrument 43-101.

About Lundin Gold

Lundin Goldbased in Vancouver, Canadaowns the Fruta del Norte gold mine in the southeast Ecuador. Fruta del Norte is among the highest quality gold mines in the world.

The Company’s board and management team have extensive mining experience and are committed to the responsible management of Fruta del Norte. The company operates transparently and in accordance with the best international practices. Lundin Gold is committed to delivering value to its shareholders, while providing economic and social benefits to vulnerable communities, fostering a healthy and safe workplace and minimizing environmental impact. The company believes that the value created by the development of Fruta del Norte will benefit its shareholders, the Government and citizens Ecuador.

Additional information

The information in this release is subject to disclosure requirements Lundin Gold according to the EU Regulation on Market Abuse. This information was made public on November 29, 2022 at 2:00 PM Pacific Time through the contact persons listed below.

Caution Regarding Forward-Looking Information and Statements

Certain information and statements in this press release are considered “forward-looking information” or “forward-looking statements” as those terms are defined under Canadian securities laws (collectively, “forward-looking statements”). Any statements that express or include discussions regarding predictions, expectations, beliefs, plans, projections, goals, assumptions or future events or performance (often, but not always, identified by words or phrases such as “believes,” “anticipates,” “expects”, “expects”, “planned”, “estimates”, “pending”, “intends”, “plans”, “forecasts”, “goals” or “hopes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “will”, “should”, “could”, “will be undertaken” or “occur” and similar expressions) are not statements of historical fact and may be statements which refer to the future. By their nature, forward-looking statements and information involve assumptions, inherent risks and uncertainties, many of which are difficult to predict and are usually beyond management’s control, which could cause actual results to differ materially from those anticipated. these expressed -viewing statements and information. Lundin Gold believes that the expectations reflected in this forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct. You should not place undue reliance on forward-looking information. This information speaks only as of the date of this press release and the Company will not necessarily update this information, except as required by securities laws.

This press release contains forward-looking information in a number of places, such as statements regarding the outlook for gold production for 2023, including estimates of gold production, quality and recovery, and its expectations for AISC , cash operating expenses, free cash flow and capital expenditures, the benefits of increased mine ventilation, plans to declare and pay dividends and exploration plans, and the company’s success. There can be no assurance that such statements will prove to be accurate, as Lundin Gold’s actual results and future events could differ materially from those anticipated in this forward-looking information as a result of the factors discussed in the section “ Risk Factors” in Lundin Gold’s annual information form dated March 21, 2022which is available at www.lundingold.com or on SEDAR.

Lundin Gold’s actual results could differ materially from expectations. Factors that could cause actual results to differ materially from any forward-looking statement or that could have a material effect on the Company or the trading price of its shares include: risks associated with the Company’s community relations; risks related to political and economic instability in Ecuador; risks related to estimates of production, cash flows and costs; impacts of pandemic virus outbreaks; risks inherent in mining operations; failure of the Company to maintain its obligations based on its debts; shortages of critical supplies; control of the largest shareholders of the Company; risks related to Lundin Gold’s compliance with environmental laws and liability for environmental pollution; lack of infrastructure; the company’s reliance on a single mine; research and development risks; risks related to the Company’s ability to obtain, maintain or renew regulatory approvals, permits and licenses; uncertainty with the tax regime in Ecuador; risks related to the Company’s workforce and its working relationships; gold price volatility; the Company’s reliance on its information systems and the risk of cyber-attacks on those systems; deficient or vulnerable ownership rights to concessions, easements and surface rights; inherent safety hazards and risk to the health and safety of the Company’s employees and contractors; inaccuracy of estimates of mineral reserves and resources; recruiting key talent and retaining key personnel; volatility of the market price of the Company’s shares; measures to protect endangered species and critical habitats; social media and reputation; costs of non-compliance and costs of compliance; risks related to illegal mining; adequacy of the Company’s insurance; risks related to the declaration of dividends; uncertainty regarding reclamation and decommissioning; ability to Lundin Gold to ensure compliance with laws on the fight against bribery and corruption; uncertainty about the risks posed by climate change; disclosure limits and internal controls; security risks to the company, its assets and personnel; potential for litigation; and risks due to conflicts of interest.

SOURCE Lundin Gold Inc.

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