LUNDIN GOLD PROVIDES 2026 GUIDANCE AND STRATEGIC THREE-YEAR OUTLOOK HIGHLIGHTING CONTINUED GROWTH AND EXPLORATION Company expects continued dividend payments and evaluates expansion beyond 5,500 tpd supported by largest-ever drill program
NEWS RELEASE
Vancouver, December 8, 2025
Lundin Gold Inc. Suite 2800, Four Bentall Centre Phone: +1 604 689 7842 lundingold.com
1055 Dunsmuir Street Fax: +1 604 689 4250 Email: [email protected]
Vancouver, BC, Canada, V7X 1L2
LUNDIN GOLD PROVIDES 2026 GUIDANCE AND STRATEGIC THREE-YEAR OUTLOOK
HIGHLIGHTING CONTINUED GROWTH AND EXPLORATION
Company expects continued dividend payments and evaluates expansion beyond 5,500 tpd
supported by largest-ever drill program
Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) ("Lundin Gold" or the "Company")
is pleased to announce its 2026 guidance and three-year outlook for its 100% owned Fruta del Norte ("FDN")
gold mine in southeast Ecuador. All amounts are in U.S. dollars unless otherwise indicated.
Jamie Beck, President and CEO commented, “2026 marks an important step forward for Lundin Gold as we
continue to unlock the full potential of Fruta del Norte and its extensions. With increased throughput to 5,500
tonnes per day, sustained free cash flow generation, and the largest exploration program in our history, we
are positioning the Company for long -term growth. Our investments in exploration to date are deliver ing
tangible results, and these successes are driving future expansion opportunities , including a d evelopment
decision on Fruta del Norte South ("FDNS") expected in H1 2026 and a mine to mill throughput expansion
decision in H2 2026 . At the same time, we remain committed to delivering strong returns to shareholders
through our dividend policy. Our strategy combines operational excellence with an ambitious exploration ,
expansion, and development program, ensuring that Lundin Gold continues to create value well into the
future."
2026 Guidance Highlights:
• Targeting between 475,000 to 525,000 ounces (“oz”) of gold production.
• Maintaining competitive cost structure with cash operating costs 1 projected at $900 to $960 per oz and
all-in sustaining cost (“ AISC”)1 at $1,110 to $1,170 per oz of gold sold2 respectively, at an assumed gold
price of $4,000 an oz.
• Investing $75 to $90 million in sustaining capital1 to support long-term operational excellence.
• Investment decision expected in H1 2026 on the development of FDNS.
• Evaluating opportunities to expand the mine and mill capacity beyond 5,500 tonnes per day (“tpd”) with
an investment decision expected in H2 2026.
• Launching an $85 million exploration campaign, the largest in Lundin Gold’s history, with 133,000 metres
of drilling planned to unlock new growth potential.
• Continuing to deliver shareholder returns through fixed quarterly dividends of $0.30 per share and a
variable dividend based on at least 50% of the Company's normalized free cash flow, after deducting the
fixed quarterly dividend paid.
1 See Non-GAAP Financial Measures section.
2 Gold/silver price per oz assumptions for the three years are $4,000/$44.00, respectively.
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The Company’s guidance for the year 2026 is provided in the table below:
2026
Gold Production (oz) 475,000 – 525,000
Mill Throughput (tpd) 5,500
Mill Head Grade (g/t Au) 8.3
Average Mill Recovery (%) 91%
Sustaining Capital1 ($ million) 75 – 90
Cash operating cost1 ($/oz sold)2 900 – 960
AISC1 ($/oz sold)2 1,110 – 1,170
Exploration Program ($ million) 85
2026 Guidance
Gold production at FDN for 2026 is estimated to be between 475,000 to 525,000 oz based on an average
throughput rate of 5,500 tpd. Head grade is estimated to average 8.3 g/t, with fluctuations expected during
the year as different sections of the ore body are mined. Average mill recovery for the year is estimated at
91%.
Cash operating costs1 are estimated to range between $900 and $960 per oz of gold sold2 in 2026. AISC1 for
2026 is expected to range between $1,110 and $1,170 per oz of gold sold2 and to fluctuate quarterly based
on sustaining capital activities. Unit costs are anticipated to be higher compared to 2025 and are primarily
attributable to increased royalties and statutory employee profit sharing resulting from the higher assumed
gold price of $4,000 per oz. This assumption adds approximately $150 per oz to unit costs compared to our
2025 guidance which was based on a gold price of $2,500 per oz.
Gold production and sales are expected to be back-end weighted in 2026 as mill head grade is expected to
improve as the year progresses due to mine sequencing. This translates to lower anticipated unit costs in the
second half of the year relative to the first half.
Total sustaining capital1 for 2026 is projected to range between $75 million and $90 million. This investment
will fund several key initiatives that support the long -term performance of the operation. A major
component of this capital is the completion of the fifth raise of the tailings storage facility, which began in
2025, and commencement of the sixth raise including development of a new quarry . These raises are
designed to provide additional storage capacity to accommodate higher throughput and extended mine life.
Guidance also includes expenditures for infrastructure enhancements and mobile equipment overhauls or
replacements.
Consistent with previous years, the Company expects its free cash flow 1 during the second quarter of 202 6
to be lower than other quarters due to the payment of annual statutory profit sharing to the government
and employees, along with remaining income taxes owed. This variation is expected to be more pronounced
in 2026 due to the Company’s strong operating and financial performance achieved to date in 2025.
FDNS Development and Mine to Mill Expansion Study
With the anticipated inclusion of the FDNS deposit into the long term mine plan , a development decision is
expected in the first half of 2026. Combined with strong near-mine exploration success achieved to date, the
operation is positioned to potentially increase its processing capacity beyond the current 5,500 t pd. To
support this opportunity, a mine to mill expansion study is underway to evaluate the technical and economic
parameters of increasing throughput beyond 5,500 tpd. The results of this study will inform a n investment
decision, which is expected to be made in the second half of 2026.
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Details on non-sustaining capital for both the potential development of FDNS and the plant expansion will
be provided once these potential opportunities are further studied and finalized.
2026 Exploration Programs
Next year is set to be a landmark year for Lundin Gold, featuring the largest exploration program in the
Company’s history with 133,000 metres of drilling planned. The near-mine exploration program will account
for approximately 100,000 metres, combining surface and underground drilling aimed at extending the mine
life of FDN. This investment will target high-grade epithermal gold deposits and advance exploration of the
promising porphyry corridor, building on the strong results achieved to date.
In addition to near -mine efforts, the regional program will focus on Lundin Gold’s extensive and highly
prospective land package surrounding FDN. Following reconnaissance work completed in 2025, drilling of
8,000 metres is planned on advanced targets identified within this underexplored district, marking an
important step in unlocking new growth opportunities.
Separately, 25,000 metres of resource conversion drilling is anticipated in 202 6 to support updated Mineral
Reserve and Resource estimates. The total investment in our 2026 exploration program is estimated at $85
million, underscoring Lundin Gold’s commitment to growth through exploration.
2026 – 2028 Outlook
The Company’s outlook for production, sustaining capital 1 and AISC1 for the next three years is provided in
the table below:
2026 2027 2028
Gold Production (oz) 475,000 - 525,000 475,000 - 525,000 475,000 - 525,000
Sustaining Capital1 ($ million) 75 - 90 80 - 95 50 - 85
Cash operating cost ($/oz sold)1, 2 900 - 960 900 - 960 905 - 965
AISC ($/oz sold)1, 2 1,110 - 1,170 1,110 - 1,180 1,060 - 1,170
The Company’s outlook reflects its current growth strategy, including the potential mine to mill e xpansion
beyond 5,500 tpd. Production levels for 2028 may vary depending on the outcome of the expansion study
and its investment decision.
Dividend
Consistent with the Company’s dividend policy and subject to the approval of the Board of Directors, Lundin
Gold anticipates continuing to pay a fixed quarterly dividend of $0. 30 per share and a variable quarterly
dividend based on at least 50% of the Company's normalized free cash flow, after deducting the fixed
quarterly dividend paid during the preceding quarter.
Non-GAAP Financial Measures
This news release refers to certain financial measures, such as cash operating costs, AISC, sustaining capital,
non-sustaining capital, and free cash flow, which are not measures recognized under IFRS and do not have a
1 See Non-GAAP Financial Measures section.
2 Gold/silver price per oz assumptions for the three years are $4,000/$44.00, respectively.
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standardized meaning prescribed by IFRS. These measures may differ from those made by other companies
and accordingly may not be comparable to such measures as reported by other companies. These measures
have been calculated on a basis consistent with historical periods. Please refer to the Company's MD&A filed
on SEDAR+ under the Company’s profile at www.sedarplus.ca, pages 13 to 16, for the third quarter of 202 5
for an explanation of non-IFRS measures used.
Qualified Persons
The technical information relating to FDN contained in this News Release has been reviewed and approved
by Terry Smith P. Eng, Lundin Gold's COO, who is a Qualified Person in accordance with the requirements of
National Instrument 43-101 – Standards of Disclosure for Mineral Project s (“NI 43-101”). The disclosure of
exploration information contained in this press release was prepared by Andre Oliveira, P.Geo, Lundin
Gold's V.P. Exploration, who is a Qualified Person in accordance with the requirements of NI 43-101.
About Lundin Gold
Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeast
Ecuador. Fruta del Norte is among the highest-grade operating gold mines in the world.
The Company's board and management team have extensive expertise and are dedicated to operating Fruta
del Norte responsibly. The Company operates with transparency and in accordance with international best
practices. Lundin Gold is committed to deliverin g value to its shareholders through operational excellence
and growth, while simultaneously providing economic and social benefits to impacted communities, fostering
a healthy and safe workplace and minimizing the environmental impact. Furthermore, Lundin Gold is
focused on continued exploration on its extensive and highly prospective land package to identify and
develop new resource opportunities to ensure long -term sustainability and growth for the Company and its
stakeholders.
Additional Information
The information in this release is subject to the disclosure requirements of Lundin Gold under the EU Market
Abuse Regulation. This information was publicly communicated on December 8, 2025 at 2:30 p.m. Pacific
Time through the contact persons set out below.
For more information, please contact
Brendan Creaney
Vice President, Corporate Development and Investor Relations
Tel: +1-604-376-4595
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, object ives,
assumptions or future events or performance (often, but not always, identified by words or phrases such as "believes", "a nticipates",
"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
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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 several places, such as in statements relating to the Company’s 2026 guidance
and 2026-2028 outlook, including estimates of gold production, grades, recoveries and its expectations regarding ASIC, cash operating
costs, sustaining costs, free cash flow and capital costs, plans to declare and pay dividends, FDNS development and mine to mill expansion
updates to Mineral Reserve and Resource estimates , and the Company’s exploration plans and 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 "Risk Factors" section in Lundin Gold's Annual Information
Form dated March 17, 2025, which is available at www.lundingold.com or www.sedarplus.ca. Lundin Gold's actual results could differ
materially from those anticipated. Factors that could cause actual results to differ materially from any forward-looking statement or that
could have a material impact on the Company or the trading price of its shares include: instability in Ecuador; community relations;
reliability of power supply; tax changes in Ecuador; security; availability of workforce and labour relations; mining operations; waste
disposal and tailings; environmental compliance; illegal mining; Mineral Reserve and Mineral Resource estimates; infrast ructure;
regulatory risk; government or regulatory approvals; forecasts relating to production and costs; gold price; dependence on a single mine;
shortages of critical resources; climate change; exploration and development; control of Lundin Gold; dividends; information systems and
cyber security; title matters and surface rights and access; health and safety; human rights; employee misconduct; measures t o protect
biodiversity, endangered species and critical habitats; global economic conditions; competiti on for new projects; key talent recruitment
and retention; market price of the Company's shares; social media and reputation; insurance and uninsured risks; pandemics, e pidemics
or infectious disease outbreak; conflicts of interest; violation of anti -bribery and corruption laws; internal controls; claims and legal
proceedings; and reclamation obligations.