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LUG.TO ·

Lundin GOLD Announces Approval and Registration of Swedish Prospectus FOR US$400 Million Private Placement

Financings

NEWS RELEASE

LUNDIN GOLD ANNOUNCES APPROVAL AND REGISTRATION OF

SWEDISH PROSPECTUS FOR US$400 MILLION

PRIVATE PLACEMENT

March 19, 2018 (Vancouver, Canada) Lundin Gold Inc. ("Lundin Gold" or the "C ompany")

(TSX: “LUG” , Nasdaq Stockholm: “LUG”) is pleased to announce that it has obtained the

approval of and registration with the Swedish Financial Supervisory Authority (the "FSA") of a

listing prospectus (the "Swedish Prospectus") for 93,497,140 common shares under the

private placement announced on February 25, 2018 (the "Private Placement”). The Swedish

Prospectus has been prepared for the admission to trading of up to 93,497,140 common

shares on Nasdaq Stockholm and has been published on the Company's website

at www.lundingold.com and can be obtained from the Company upon request. The FSA's

approval and registration of the Swedish Prospectus and its subsequent publication on the

Company's website satisfies one of the closing conditions for the Private Placement.

The closing of the Private Placement and the listing on the Toronto Stock Exchange of common

shares issuable under the Private Placement is expected to occur on or about March 26, 2018.

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 submitted for publication on March 19,

2018 at 11:00 am PT through the contact persons set out below.

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 largest, highest -grade

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 belie ves that the value

created through the development of Fruta del Norte will benefit its shareholders, the

Government and the people of Ecuador.

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For more information, please contact

Lundin Gold Inc.

Ron F. Hochstein

President and CEO

+593 2-299-6400

+604-806-3589

Lundin Gold Inc.

Sabina Srubiski

Manager, Investor Relations

+1-604-806-3089

[email protected]

www.lundingold.com

Follow Lundin Gold on Twitter

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, inhe rent 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 infor mation 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 closing of the Private Placement, the expect ed timing of trading of the

common shares, and first gold production. Lundin Gold’s actual results could differ materially from those

anticipated. Management has identifi ed 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; the ability to maintain its obligat ions under the

Financing and other debt; risks related to carrying on business in Ecuador; 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 critical resources, labour and key

executive personnel, such as input commodities, equipment and skilled labour, and the dependence on

key personnel; risks associated with the Company’s community relationships; unreliable infrastructure;

volatility in the market price of the Company’s shares; uncertainty with the tax regime in Ecuador;

measures required to protect endangered species; 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; r isks related to

artisanal and illegal mining; uncertainty as to reclamation and decommissioning; risks associated with

the Company’s information systems; competition in the mining industry; the ability to obtain adequate

insurance; risks of bribery or cor ruption; the potential for litigation; limits of disclosure and internal

controls; and the potential influence of the Company’s largest shareholders.

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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 Lundin Gold's Management

Discussion & Analysis for the financial year ended Dec ember 2017, which is available on SEDAR at

www.sedar.com.