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2018-01-10

Lundin Gold Inc.: LUNDIN GOLD UNDERGROUND MINE DEVELOPMENT INTO HARD ROCK AT FRUTA DEL NORTE

Vancouver, Jan. 10, 2018 (GLOBE NEWSWIRE) --

January 10, 2018 (Vancouver, Canada) Lundin Gold Inc. ("Lundin Gold" or the
"Company") (TSX: LUG, Nasdaq Stockholm: LUG) is pleased to announce that
soft tunneling was completed in December 2017 and mine development is now
into hard rock at its Fruta del Norte gold project (“Fruta del Norte” or
the “Project”) in Ecuador.

Further Highlights

* Award of all major process plant equipment packages
* Mobile equipment packages, including underground mine scoop trams and
haul trucks, have been awarded
* Process plant excavation is progressing ahead of schedule
* 1,000-person construction camp is nearing completion
* Approval of powerline Environmental Impact Assessment (“EIA”)

“Tunneling through soft clay was a significant risk factor to underground
mine development due to the potential for ground failure.  We were able to
get through this challenging task, and the mine development is now
advancing at a quicker pace,” said Ron Hochstein, President and CEO of
Lundin Gold.  “We are also ramping up other major projects, including the
process plant and powerline.”

Mine Development

The Company transitioned from soft tunneling to hard rock tunneling in
December 2017, working through 77 metres of saprolite (soft clay) in the
first decline and 69 metres in the second.  Drilling and blasting in hard
rock commenced on December 7th in the first decline and December 17th in
the second, and currently the advance in hard rock reached 100 metres and
78 metres, in the first and second declines, respectively.

Process Plant Equipment Procurement

In October 2017, Lundin Gold awarded the long-lead time grinding equipment
packages, including the SAG and ball mills (complete with motors) and the
flotation and filtration packages to Outotec Chile S.A.

The gravity mill, CIL and detox tanks, and ADR plant and gold room packages
were recently awarded to FLSmidth USA Inc. TelSmith Inc. will provide the
crushing packages for both the process plant and aggregate quarry
crushers.  ABB Inc. has been awarded switchgear and substation equipment
and transformers packages. 

Mobile Equipment

Most of the mobile mine equipment orders have been placed.  Importadora
Industrial Agricola S.A./Caterpillar will provide the underground mine
scoop trams and trucks, as well as the surface earthworks and quarry
equipment.  Orders for the mine jumbos and bolters are expected to be
awarded this quarter.

Powerline

The EIA for the powerline received final approval at the end of 2017. 
Easement agreements have been reached with 91% of affected landholders, and
the Company expects the remaining easements to be obtained this quarter. 
Detailed engineering and procurement is well underway, and the engineering,
procurement and construction contractor is on track to begin building the
powerline this quarter.

Major Earthworks

Regardless of difficult ground conditions, site earthworks are on schedule.
Earthworks on the process plant is 13% complete with concrete mill
foundations planned to start this quarter.

The North Access Road is progressing well, and 32% of the road has been
built.  A second earthworks contractor was mobilized at El Pindal, where
the North Access Road will link to the national highway system. 
Approximately six kilometres needs to be built to connect the North Access
Road from either side.

Construction Camp

All other construction disciplines are actively working on the 1,000-person
construction camp which is nearing completion, with over 60% of the units
currently available for occupancy.  Combined with the existing camp, there
are more than 1,200 beds available.  During the last month, approximately
800 people were at site, including contractors.

About Lundin Gold

Lundin Gold, headquartered in Vancouver, Canada, is developing its
wholly-owned Fruta del Norte gold project in southeast Ecuador.  Fruta del
Norte is one of the highest-grade and largest gold projects currently under
construction.  The Company’s board and management team have extensive
expertise in mine construction and operations, and are dedicated to
advancing this project through to first gold production in 2019.

The Company operates with transparency and in accordance with international
best practices.  Lundin Gold is committed to delivering value to its
shareholders, while simultaneously providing economic and social benefits
to impacted communities, fostering a healthy and safe workplace and
minimizing the environmental impact.  The Company believes that the value
created through the development of Fruta del Norte will benefit its
shareholders, the Government and the people of Ecuador.

This press release has been reviewed and approved by Ron Hochstein, P.
Eng., a metallurgical engineer and the Company's President and CEO, who is
a Qualified Person under Canadian National Instrument 43-101.

Additional Information

The information in this release is subject to the disclosure requirements
of Lundin Gold under the EU Market Abuse Regulation and the Swedish
Securities Markets Act. This information was publicly communicated at 5:00
am Pacific Time on January 10, 2018.

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Caution Regarding Forward-Looking Information and Statements

Certain of the 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
referred to as “forward-looking statements”).  Any statements that express
or involve discussions with respect to predictions, expectations, beliefs,
plans, projections, objectives, assumptions or future events or performance
(often, but not always, identified by words or phrases such as “believes”,
“anticipates”, “expects”, “is expected”, “scheduled”, “estimates”,
“pending”, “intends”, “plans”, “forecasts”, “targets”, or “hopes”, or
variations of such words and phrases or statements that certain actions,
events or results “may”, “could”, “would”, “will”, “should” “might”, “will
be taken”, or “occur” and similar expressions) are not statements of
historical fact and may be forward-looking statements.

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 the control of management, that could
cause actual results to be materially different from those expressed by
these forward-looking 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.  Forward-looking information should not be unduly
relied upon.  This information speaks only as of the date of this press
release, and the Company will not necessarily update this information,
unless required to do so by securities laws. 

This press release contains forward-looking information in a number of
places, such as in statements pertaining to the timing of first gold
production, the timing and progress of the development, construction and
operation of FDN, the timing and progress of the development and
construction the powerline, the timing and success of permitting and
regulatory approvals and the award of certain purchase orders and contracts
and the acquisition of easements.   Lundin Gold’s actual results could
differ materially from those anticipated.  Management has identified the
following risk factors which could have a material impact on the Company or
the trading price of its  shares: the ability to arrange financing and the
risk to shareholders of dilution from future equity financings; risks
related to carrying on business in an emerging market such as possible
government instability and civil turmoil and economic instability;
volatility in the price of gold; the timely receipt of regulatory
approvals, permits and licenses; risks associated with the performance of
the Company’s contractors; risks inherent in the development of an
underground mine; deficient or vulnerable title to mining concessions and
surface rights; shortages of resources, such as labour, and the dependence
on key personnel; risks associated with the Company’s community
relationships; unreliable infrastructure and local opposition to mining;
volatility in the market price of the Company’s shares; uncertainty with
the tax regime in Ecuador; measures required to protect endangered species;
difficulty complying with changing government regulations and policies,
including without limitation, compliance with environment, health and
safety regulations, and the cost of compliance or failure to comply with
applicable laws; exploration and development risks; the accuracy of the
Mineral Reserve and Resource estimates for FDN and the Company’s reliance
on one project; the Company’s lack of operating history in Ecuador; illegal
mining; uncertainty as to reclamation and decommissioning; adverse global
economic conditions; risks associated with the Company’s information
systems; the inadequacy of insurance; risks of bribery or corruption; the
potential for litigation; limits of disclosure and internal controls; and
the potential influence of the Company’s largest shareholders.  

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 "Risk Factors" section in Lundin Gold's Annual
Information Form for the financial year ended December 2016 and the
Prospectus dated December 21, 2017, both of which are available on SEDAR at
www.sedar.com.   

http://prlibrary-eu.nasdaq.com/Resource/Download/1681f9f4-e791-435a-aaa0...

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