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2017-05-30

LUNDIN GOLD ANNOUNCES US$400 - $450 MILLION PROJECT FINANCING PACKAGE FOR FRUTA DEL NORTE

Lundin Gold Inc. Övrig information som ska lämnas enligt börsens regler
LUNDIN GOLD ANNOUNCES US$400 - $450 MILLION PROJECT FINANCING PACKAGE FOR
FRUTA DEL NORTE May 30, 2017 (Vancouver, Canada)… Lundin Gold Inc. ("Lundin
Gold" or the "Company") (TSX: “LUG”, Nasdaq Stockholm: “LUG”) is pleased to
announce a project finance package of $400 to $450 million (the
"Financing") with the Orion Mine Finance Group (“Orion”) and Blackstone
Tactical Opportunities ("Blackstone"). The Financing provides the
foundation for the development of the Company’s Fruta del Norte project and
shows the growing support for mining investment in Ecuador. The Financing
is comprised of a gold prepay credit facility for $150 million, a stream
loan credit facility of $150 million and committed participation of $100 to
$150 million to future equity financings required to fund the project. All
dollar amounts are quoted in U.S. dollars (“$”). "We are very pleased with
the financial commitments that Orion and Blackstone have made towards the
development of the Fruta del Norte project and Ecuador" said President and
CEO Ron Hochstein. "It confirms the strength of this project and gives us
the ability to move full speed ahead with construction." Loan Facilities --

Gold Prepay Credit Agreement:

--

Senior Secured Loan facility of $150 million entered into by the Company’s
operating subsidiary, Aurelian Ecuador S.A. (“Aurelian Ecuador”), which
holds the Fruta del Norte project;

--

$75 million will be advanced at or shortly after closing. The remaining $75
million is available to be drawn at the option of Lundin Gold, up to the
end of June 2018, subject to the perfection of all security and certain
other conditions;

--

Repayable in 19 fixed quarterly principal and interest instalments
equivalent to the value of 11,500 oz of delivered gold starting in December
2020 ; and

--

Lundin Gold has an option to defer the quarterly instalments for up to four
(4) quarters by increasing the gold equivalent deliveries by 1,000 oz for
each deferred quarter.

--

Stream Credit Agreement:

--

Senior Secured Loan facility of $150 million entered into by Aurelian
Ecuador;

--

$75 million will be advanced shortly after closing. The remaining $75
million is available to be drawn at the option of Lundin Gold up to the end
of June 2018 subject to the perfection of all security and certain other
conditions;

--

Repayable in variable monthly principal and interest instalments equivalent
to the delivery of 7.75% of gold production and 100% of the silver
production starting in December 2020, up to a maximum of 350,000 oz of gold
and six million oz of silver; and

--

Option for Lundin Gold to repay (i) 50% of the remaining stream loan on
June 30, 2024 for $150 million and / or (ii) the other 50% of the remaining
stream loan on June 30, 2026 for $225 million.

Equity Commitment Orion and Blackstone have committed to participate in
future equity financings of Lundin Gold, in an aggregate amount of not less
than $100 million and not more than $150 million, as and when initiated by
the Company and subject to minimum financing thresholds. Offtake Agreement
Orion and Blackstone have also been granted the right to purchase 50% of
Fruta del Norte gold production, up to a maximum of 2.5 million oz., at a
price determined based on monthly delivery dates and a defined quotational
period. Oskar Lewnowski, Chief Investment Officer of the Orion Mine Finance
Group, commented, "As one of the largest investors dedicated to the mining
industry, we are delighted to be a cornerstone participant of the project
financing for the Fruta del Norte project. We look forward to working with
the Lundin Gold management team on one of the most exciting development
gold assets in the Americas." “Blackstone is excited to partner with Lundin
Gold to develop Fruta del Norte, a world class gold deposit” said Jasvinder
Khaira, Senior Managing Director at Blackstone Tactical Opportunities. “The
Lundin Group are talented operators with a strong track record and our
partnership is consistent with providing flexible and innovative capital to
the natural resource sector.” Endeavour Financial has provided debt
financial advisory services and Norton Rose Fulbright Canada LLP has acted
as legal counsel to the Company with the support of the law firm of Lexim
Abogados in Ecuador. The Company also announces the extension of the
maturity date from May 31, 2017 to June 30, 2017, of the short-term credit
facility with Zebra Holdings and Investments S.à.r.l. (the “Lender”), a
company owned by a trust whose settlor was the late Adolf H. Lundin and an
insider of Lundin Gold. Conference Call and Webcast A conference call and
webcast will be held today, Tuesday, May 30, 2017 at 10:00 a.m. Toronto
time or 16:00 CET to discuss the Financing Package. Please call in 10
minutes before the conference call starts and stay on the line (an operator
will be available to assist you). Dial-In Numbers: Toll-Free North America:
+1-866-238-1645 North America: +1-213-660-0928 Sweden: +46-(0) 8-5661-9361
Conference ID: Lundin Gold To view the live webcast presentation, please
log on using this direct link: https://edge.media-server.com/m6/p/4boazvz6
The presentation slideshow will also be available in PDF format for
download from the Lundin Gold website www.lundingold.com before the
conference call. A replay of the webcast will be available via the above
link approximately two hours after the completion of the conference call
until May 30, 2018. Additional Information The information in this release
is subject to the disclosure requirements of the Company under the EU
Market Abuse Regulation and the Swedish Securities Market Act. This
information was publicly communicated on May 30, 2017 at 8:00 a.m. Eastern
Time. For more information, please contact Lundin Gold Inc. Ron F.
Hochstein President and CEO +593-2-299-6400 +1-604-806-3589 Lundin Gold
Inc. Sophia Shane Corporate Development +1-604-689-7842 info@lundingold.com
www.lundingold.com Forward-Looking 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. This press release contains forward-looking
information in a number of places, such as in statements pertaining to the
Financing, future sources of liquidity. 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. 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 input commodities, equipment and skilled
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 the Fruta
del Norte Project and the Company’s reliance on one project; the Company’s
lack of operating history; illegal mining; uncertainty as to reclamation
and decommissioning; adverse global economic conditions; risks associated
with the Company’s information systems; the ability to obtain adequate
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 under the
heading “Risk Factors” in the Company’s current annual information form
available at www.sedar.com.

Författare Nasdaq Stockholm

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