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Lundin GOLD Draws US$40 Million Under GOLD Prepay Facility as IT Continues to Advance Fruta Del Norte

Financings Debt & Credit Facilities

NEWS RELEASE

LUNDIN GOLD DRAWS US$40 MILLION UNDER GOLD PREPAY

FACILITY AS IT CONTINUES TO ADVANCE FRUTA DEL NORTE

December 6, 2017 (Vancouver, Canada) Lundin Gold Inc. ("Lundin Gold" or the "Company")

(TSX: LUG, Nasdaq Stockholm: LUG) is pleased to announce that is has drawn an additional

US$40 million under the gold prepay credit facility with the Orion Mine Finance Group and

Blackstone Tactical Opportunities. The funds will be used to support the ongoing development

of the Fruta del Norte gold project in Ecuador.

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 highest -grade and

largest gold projects currently under construction. The Company’s board and management

team have extensive expertise in mine construction and operations, and ar e 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 simultaneo usly

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 sh areholders, the

Government and the people of Ecuador.

Additional Information

The information in this release is subject to the disclosure requirements of Lundin Gold under

the EU Market Abuse Regulation and the Swedish Securities Markets Act. This information

was publicly communicated at 3:45 pm Pacific Time on December 6, 2017.

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.

Sabina Srubiski

Manager, Investor Relations

+1-604-806-3089

[email protected]

www.lundingold.com

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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, 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 b e

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 , including the use of funds drawn under the

facility. Lundin Gold’s actual results could differ materially 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 shares: 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 and economic instability; 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 deve lopment of an underground mine; deficient or

vulnerable title to mining concessions and surface rights; shortages of resources, such as labour, and

the dependence on key personnel; risks associated with the Company’s community relationships;

unreliable infrastructure and local opposition to mining; volatility in the market price of the Company’s

shares; uncertainty with the tax regime in Ecuador; measures required to protect endangered species;

difficulty complying with changing government regulations and p olicies, 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 est imates for FDN and the Company’s reliance on one project; the Company’s lack of

operating history in Ecuador; illegal mining; uncertainty as to reclamation and decommissioning; adverse

global economic conditions; risks associated with the Company’s informa tion systems; the inadequacy

of 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

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 for the financial year ended December 2016, which is available on SEDAR at www.sedar.com.