Lundin GOLD Achieves Completion Milestone Under Its Project Finance Debt
NEWS RELEASE
Vancouver, December 22, 2021
Lundin Gold Inc. 885 West Georgia Street, Suite 2000 Phone: +1 604 689 7842 lundingold.com
Vancouver, BC, V6C 3E8 Fax: +1 604 689 4250 Email: [email protected]
LUNDIN GOLD ACHIEVES COMPLETION MILESTONE UNDER ITS PROJECT FINANCE
DEBT
Lundin Gold Inc. (TSX: LUG ; Nasdaq Stockholm: LUG) ("Lundin Gold" or the "Company") is pleased to
announce that it has achieved Project Completion, as defined under its senior debt facilities, at the Fruta del
Norte gold mine in Ecuador. Under these facilities, Lundin Gold’s operating subsidiary, Aurelian Ecuador S.A.,
was required, among other things, to effectively complete construction at Fruta del Norte, operate the mine
and plant for a 90-day period at specified optimal levels, and maintain a predetermined quality of concentrate
for sale under its offtake contracts.
Ron Hochstein, President and CEO commented, “Reaching completion represents a key operational
accomplishment, and is a testament to the excellence of our team . Starting in 2022, it will allow us to
accelerate the scheduled repayment of the senior debt through the Cash Sweep mechanism. By achieving this
milestone we can now pursue a variety of opportunities, including future growth, further debt reduction, and
shareholders’ distributions as we continue to generate strong free cash flow at forecast production levels and
current gold prices.”
Qualified Persons
The technical information relating to Fruta del Norte contained in this News Release has been reviewed and
approved by Ron Hochstein P. Eng, Lundin Gold's President and CEO who is a Qualified Person under National
Instrument 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 in mine operations 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 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 citizens of Ecuador.
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 22, 2021 at 2:30 p.m. Pacific
Time through the contact persons set out below.
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For more information, please contact
Ron F. Hochstein Finlay Heppenstall
President and CEO Director, Investor Relations
Tel (Ecuador): +593 2-299-6400 Tel: +1 604 806 3089
Tel (Canada): +1-604-806-3589 [email protected]
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", "anticipates",
"expects", "is expected", "scheduled", "estimates", "pending", "intends", "plans", "forecasts", "targets", or "hopes", or var iations 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, suc h as in statements relating to its 202 2 production
outlook and free cash flow. 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 2, 2021, which is available at www.lundingold.com
or on SEDAR.
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:
risks relating to the impacts of a pandemic virus outbreak, political and economic instability in Ecuador, production estimates, mining
operations, the Company's community relationships, ability to maintain obligations or comply with debt, financing requirement s,
volatility in the pri ce of gold, shortages of critical supplies, compliance with environmental laws and liability for environmental
contamination, lack of availability of infrastructure, the Company's reliance on one mine, deficient or vulnerable title to c oncessions,
easements and surface rights, uncertainty with the tax regime in Ecuador, the Company’s workforce and its labour relations, inherent
safety hazards and risks to the health and safety of the Company’s employees and contractors, the Company’s ability to obtain ,
maintain or renew regulatory approvals, permits and licenses, the imprecision of mineral reserve and resource estimates, key tale nt
recruitment and retention of key personnel, volatility in the market price of the shares, the potential influence of the Company's largest
shareholders, measures to protect endangered species and critical habitats, the reliance of the Company on its information sy stems
and the risk of cyber-attacks on those systems, the cost of non-compliance and compliance costs, exploration and development risks,
risks related to illegal mining, the adequacy of the Company’s insurance, uncertainty as to reclamation and decommissioning, the
ability of Lundin Gold to ensure compliance with anti -bribery and anti - corruption laws, the uncertainty rega rding risks posed by
climate change, the potential for litigation, limits of disclosure and internal controls, security risks to the Company, its assets and its
personnel, conflicts of interest, risks that the Company will not declare dividends and social media and reputation.