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Lundin Mining Provides Operational Outlook & Update

TORONTO, ONTARIO--(Marketwired - Nov. 29, 2017) - Lundin Mining Corporation ("Lundin Mining" or the "Company") (TSX:LUN)(OMX:LUMI) provides the following production guidance for the three-year period beginning in 2018, cash costs, capital and exploration expenditure guidance for 2018, as well as ten-year guidance for our Candelaria operation. Key highlights are as follows:

Paul Conibear, President and CEO commented, "We are significantly expanding investment in our own assets including a number of low-risk, positive return initiatives, further positioning all of our operations for sustained reliability of production and lower operating costs, taking a long-term view.

"The life-of-mine copper production profile of Candelaria has once again been improved as we reinvest in the mine fleet, advance a mill optimization project, and expand underground production.

"The Zinc Expansion Project at Neves-Corvo and development of Eagle East remain on budget and schedule with first production from both growth projects anticipated in the second half of 2019, and early 2020, respectively."

Attributable Production Outlook (tonnes of metal) 2018 - 2020(1)

  2018   2019   2020
  Candelaria (80%) 104,000 - 109,000   116,000 - 121,000   132,000 - 137,000
  Eagle 15,000 - 18,000   12,000 - 15,000   12,000 - 15,000
  Neves-Corvo 39,000 - 44,000   40,000 - 45,000   41,000 - 46,000
  Zinkgruvan 1,000 - 2,000   1,000 - 2,000   2,000 - 3,000
Total Attributable Copper 159,000 - 173,000   169,000 - 183,000   187,000 - 201,000
  Neves-Corvo 68,000 - 73,000   88,000 - 93,000   155,000 - 160,000
  Zinkgruvan 76,000 - 81,000   78,000 - 83,000   79,000 - 84,000
Total Zinc 144,000 - 154,000   166,000 - 176,000   234,000 - 244,000
  Eagle 14,000 - 17,000   10,000 - 13,000   13,000 - 16,000
Total Nickel 14,000 - 17,000   10,000 - 13,000   13,000 - 16,000

(1) Production Guidance is based on certain estimates and assumptions, including but not limited to; mineral resources and mineral reserves, geological formations, grade and continuity of deposits and metallurgical characteristics.

2018 Cash Cost Guidance(2)

C1 Cash Cost(2) 2018
  Candelaria (80%) $1.70/lb(3)
  Neves-Corvo $1.30/lb
  Zinkgruvan $0.45/lb
  Eagle $1.35/lb

(2) C1 cash costs are based on various assumptions and estimates, including, but not limited to; production volumes, as noted above, commodity prices (2018 - Cu: $2.75/lb, Zn: $1.30/lb, Pb: $1.00/lb, Ni: $5.00/lb) foreign currency exchange rates (2018 - EUR/USD:1.20, USD/SEK:8.00, CLP/USD:625) and operating costs. All figures in are in US$ unless otherwise noted.

(3) 68% of Candelaria's total gold and silver production are subject to a streaming agreement and as such C1 cash costs are calculated based on receipt of $404/oz and $4/oz, respectively, on gold and silver sales in the year. No consideration has been made for the upfront payment received in the calculation of C1 cash costs.

2018 Capital Expenditure Guidance

Capital Expenditures ($ millions)(4) 2018
Candelaria (100% basis):  
  Capitalized Stripping 200
  Los Diques Tailings 60
  New Mine Fleet Investment 75
  Mill Optimization Investment 50
  Candelaria Sur Development 20
  Other Sustaining 105
Candelaria Sustaining 510
Eagle Sustaining 25
Neves-Corvo Sustaining 55
Zinkgruvan Sustaining 40
Total Sustaining Capital 630
Eagle East 30
Zinc Expansion (Neves-Corvo) 190
Total Expansionary Capital 220
Total Capital Expenditures 850

(4) Forecast capital expenditures have been reported on a cash basis. Discrepancies may exist with other external reports which have been reported on an accrual basis, most notably for the Los Diques Tailings Project in 2018.

2018 Exploration Investment Guidance

Exploration expenditures are planned to be $83 million in 2018. This is a 12% increase over estimated 2017 expenditures reflecting a results-driven commitment to aggressive exploration programs. Approximately $70 million will be spent on in-mine and near-mine targets ($34 million at Candelaria, $18 million at Eagle, $13 million at Zinkgruvan and $5 million at Neves-Corvo), with the remainder to advance exploration activities for new South American and Eastern European exploration projects.

About Lundin Mining

Lundin Mining is a diversified Canadian base metals mining company with operations in Chile, the United States of America, Portugal, and Sweden, primarily producing copper, nickel and zinc. In addition, Lundin Mining holds an indirect 24% equity stake in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland.

This is information that Lundin Mining Corporation is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on November 29, 2017 at 5:00 p.m. Eastern Time.

Cautionary Statement in Forward-Looking Information

Certain of the statements made and information contained herein or incorporated by reference is "forward-looking information" within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts in this news release constitute forward-looking information based on current expectations, estimates, forecasts and projections as well as beliefs and assumptions made by the Company's management. Such forward-looking statements include but are not limited to those regarding the Company's outlook and guidance on estimated metal production and production profile, costs, and exploration and capital expenditures; the Zinc Expansion Project at Neves-Corvo and the Eagle East project ; Mineral Reserves, Mineral Resources, life-of-mine (or mine life); all of which are estimates (and the parameters, expectations and assumptions underlying, and realization of, such estimates including, but not limited to metal price assumptions, and permitting and development expectations. Words such "aim", "anticipate", "assumption", "believe", "budget", "commitment", "estimate, "expansionary", "expect", "exploration", "flexibility", "focus", "forecast", "foreseeable", "forward", "future", "growth", "guidance", "initiative", "on-track", "outlook", "plan", "positioning", "potential", "priority", "profile", "project", "ramp-up", "risk", "schedule", "study", "target" or "view", or variations of or similar such terms, or statements that certain actions, events or results could, may, might or will be taken or occur or be achieved,, or variations of these terms or similar terminology or statements that certain actions, events or results could, may, might or will be taken or occur or be achieved are intended to identify such forward-looking information. These estimates, expectations and other forward-looking statements are based on a number of assumptions and are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements.
Such risks and uncertainties include, without limitation, risks and uncertainties inherent in and/or relating to: estimates of future production and operations, cash and all-in sustaining costs; metal and commodity price fluctuations; foreign currency fluctuations; mining operations including but not limited to environmental hazards, industrial accidents, ground control problems and flooding; geology including, but not limited to, unusual or unexpected geological formations, estimation and modelling of grade, tonnes, metallurgy continuity of mineral deposits, dilution, and Mineral Resources and Mineral Reserves, and actual ore mined and/or metal recoveries varying from such estimates; mine plans, and life of mine estimates; the possibility that future exploration, development or mining results will not be consistent with expectations; the expected strike by union workers (and potential further such strikes) at Neves-Corvo, and the potential for and effects of other labour disputes or shortages, or other unanticipated difficulties with or interruptions in production; potential for unexpected costs and expenses including, without limitation, for mine closure and reclamation at current and historical operations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental approvals and/or permits, including but not limited to the Alcaparrosa underground mine operating license, the Punta Padrones process operating license and the Ojos del Salado mill tailings line permit at Candelaria which are required by the end of the year; regulatory investigations, enforcement, sanctions and/or related or other litigation; and other risks and uncertainties, including but not limited to those described in the "Managing Risks" section of the Company's Management's Discussion and Analysis for the financial period ending December 31, 2016 and completed financial quarters in 2017, and the "Risks and Uncertainties" section of our most recently filed Annual Information Form.
In addition, forward-looking information is based on various assumptions including, without limitation, the expectations and beliefs of management; assumed prices of copper, nickel, zinc and other metals; that the Company can access financing, appropriate equipment and sufficient labour; and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, there can be no assurance that forward-looking information will prove to be accurate, and readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise forward-looking statements or to explain any material difference between such and subsequent actual events, except as required by applicable law.

Appendix A - Candelaria Ten-Year Outlook

Candelaria (100% basis) 2018   2019   2020   2021   2022   2023   2024   2025   2026   2027
Copper Production(1) (tonnes) 130,000 - 136,250   145,000 - 151,250   165,000 - 171,250   171,000 - 178,000   182,000 - 189,000   182,000 - 189,000   150,000 - 156,000   159,000 - 165,000   153,000 - 159,000   168,000 - 174,000
C1 Cash Cost(3) $1.70/lb   $1.60/lb   $1.60/lb   $1.55/lb   $1.45/lb   $1.15/lb   $1.50/lb   $1.25/lb   $1.25/lb   $1.10/lb
Capital Expenditures ($ millions)(4)                                      
  Capitalized Stripping 200   170   135   140   115   120   85   55   65   70
  Los Diques Tailings (All Phases) 60   5   10   30   45   50   25   30   30   -
  New Mine Fleet Investment 75   100   35   10   25   20   -   10   5   -
  Mill Optimization Investment 50   25   -   -   -   -   -   -   -   -
  Candelaria Sur 20   25   10   15   10   5   -   -   -   -
  Other Sustaining Capex 105   50   45   25   25   25   25   10   5   5
Total Candelaria Capital Expenditures 510   375   235   220   220   220   135   105   105   75

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