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Quarterly Operations Update

2017 Second Quarter Report

Six months ended June 30, 2017.
(Expressed in U.S. Dollars, unless otherwise noted.)

Highlights
Fruta del Norte Project

  • The mine development contractor mobilized to the Fruta del Norte Project and construction of mine portals commenced in May 2017.
  • Construction of the mine development support facilities commenced during the second quarter of 2017 in preparation for the development of the twin mine declines in the fourth quarter.
  • On May 30, 2017, the Company announced the completion of a project update for the Fruta del Norte Project. The update was based on advancing the design and estimates from the Technical Report entitled "Fruta del Norte - NI 43-101 Technical Report on Feasibility Study" filed by the Company in June 2016. The updated results include a revised mine plan, updated capital and operating costs and a new execution plan based on a self-perform approach.

Financing

  • On January 16, 2017, the Company obtained a $35 million short-term unsecured credit facility from an insider of the Company (the "Facility"). The outstanding balance of $28.6 million at June 30, 2017 was repaid in full on July 14, 2017.
  • On May 30, 2017, the Company secured a project finance package of $400 to $450 million (the "Financing") with the Orion Mine Finance Group and Blackstone Tactical Opportunities (the "Lenders").

Exploration

  • Exploration activities have focused on advancing targets to the drill testing stage. The Puma, Barbasco and Fruta del Norte SW epithermal gold-silver targets within the Suarez pull-apart basin have been better defined; while outside of the basin, the Gata Salvaje, Las Nubes and El Quimi targets have been advanced.
Lundin Gold Inc.
Suite 2000, 885 West Georgia Street
Vancouver, BC
Canada V6C 3E8

T: 604 689 7842
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