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Lundin GOLD Draws $150 Million Under Project Financing Package

Financings

NEWS RELEASE

LUNDIN GOLD DRAWS $150 MILLION UNDER PROJECT

FINANCING PACKAGE

June 13, 2017 (Vancouver, Canada)… Lundin Gold Inc. ("Lundin Gold" or the "Company") (TSX: “LUG”, Nasd aq

Stockholm: “LUG”) is pleased to announce that, foll owing receipt of an initial draw of $30 million on M ay 30,

2017, it has now received an additional $120 millio n under its previously announced project finance pa ckage

with the Orion Mine Finance Group and Blackstone Tactical Opportunities (the “Financing”). All dollar amounts

are quoted in U.S. dollars (“$”).

The Financing is comprised of a gold prepay credit fa cility for $150 million, a stream loan credit facil ity of $150

million, an offtake agreement, and committed participation of $100 to $150 million to future equity fin ancings.

The Company has now received $75 million from each of the gold prepay credit facility and the stream loan credit

facility. The remaining $75 million from each credit facility are 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.

About the Company

Lundin Gold Inc., headquartered in Vancouver, Canada, owns the Fruta del Norte (FDN) gold project in southeast

Ecuador, which is one of of the largest and highest grade undeveloped gold projects in the world. The Company

has an experienced board and management team with ex tensive expertise in construction and operations

dedicated to the advancement of this exceptional project.

The Company operates with transparency and in accor dance with international best practices in the area s of

sustainability, health and safety, environment and community relations. The Company is committed to

addressing the challenge of sustainability - deliveri ng value to its shareholders, while simultaneously providing

economic and social benefits to impacted communitie s and minimizing its environmental footprint. The

Company believes that the value created through the development of FDN will not only greatly benefit it s

shareholders, but also help the Government and people of Ecuador.

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

[email protected]

www.lundingold.com

Additional Information

The information in this release is subject to the d isclosure requirements of the Company under the EU Market

Abuse Regulation and the Swedish Securities Market Act. This information was publicly communicated on June

13, 2017 at 10:00 a.m. Pacific Time.

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 defi ned under Canadian securities laws (collectively re ferred

to as “forward-looking statements”). Any statements that express or involve discussions with respect t o

predictions, expectations, beliefs, plans, projecti ons, objectives, assumptions or future events or pe rformance

(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 exp ressions) are not statements of historical fact and may be

forward-looking statements.

By their nature, forward-looking statements and info rmation involve assumptions, inherent risks and

uncertainties, many of which are difficult to predi ct, 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 forwa rd-looking information in a number of places, such a s in

statements pertaining to the Financing and future sources of liquidity. Lundin Gold believes that the expectations

reflected in this forward-looking information are re asonable, but no assurance can be given that these

expectations will prove to be correct. Forward-loo king information should not be unduly relied upon. This

information speaks only as of the date of this pres s release, and the Company will not necessarily upd ate this

information, unless required to do so by securities laws.

Lundin Gold’s actual results could differ materiall y 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 sh ares:

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 a nd

economic instability; volatility in the price of gol d; the timely receipt of regulatory approvals, permi ts and

licenses; risks associated with the performance of the Company’s contractors; risks inherent in the development

of an underground mine; deficient or vulnerable titl e 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 relationshi ps; unreliable infrastructure and local opposition to

mining; volatility in the market price of the Compan y’s shares; uncertainty with the tax regime in Ecuad or;

measures required to protect endangered species; dif ficulty 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; il legal 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 resu lts 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.