Lundin GOLD Reports Local Community Unrest
885 West Georgia Street T +1 604 689 7842
Suite 2000 F +1 604 689 4250
Vancouver, BC [email protected]
Canada V6C 3E8 lundingold.com
NEWS RELEASE
LUNDIN GOLD REPORTS LOCAL COMMUNITY UNREST
October 20, 2020 (Vancouver, Canada) Lundin Gold Inc. ("Lundin Gold" or the "Company")
(TSX: LUG) (Nasdaq Stockholm: LUG) reports local community unrest following the collapse of
the bridge over the Zamora River to the town of Los Encuentros on the weekend.
On October 17, 2020, the public bridge in Los Encuentros , which is a town approximately 20
kilometres away from the Company’s Fruta del Norte gold mine (“Fruta del Norte”) in Ecuador,
collapsed into the river. There were no injuries. The construction of a new bridge in this location
was previous ly agreed in 2018 to be f unded between the Company and local and national
stakeholders. As such, t he Company publicly reconfirmed its prior commitment to funding the
construction of this new bridge . This construction was and remains the responsibility of the
provincial government.
Despite Lundin Gold’s immediate show of support following the incident , a group of local
community members has erected a road blockade on the public road into Fruta del Norte .
Protesters are expressing frustration over the lack of progress to date with respect to the
construction of the new bridge and the condition of the older bridge and its failure. They are
making a variety of demand s, including some directed to the Company . This block ade is
preventing the Company from moving personnel and goods, including concentrate, to and from
Fruta del Norte.
While operations are currently uninterrupted and continuing at site, the Company is monitoring
the impact that the blockade is having on the transportation of its goods, personnel and
concentrate and is engaging with all levels of government and with community members to
resolve the matter in a cooperative and constructive manner and in a timely fashion.
About Lundin Gold
Lundin Gold , headquartered in Vancouver, Canada , own s the Fruta del Norte gold mine in
southeast Ecuador. Fruta del Norte is among the largest and highest -grade gold projects in the
world currently in production.
The Company's board and management team have extensive expertise in mine operations and
are dedicated to advancing 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 October 20, 2020
at 5:00 a.m. Pacific Time through the contact persons set out below.
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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
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 thos e 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 con tains forward -looking information in a number of places, such as in statements
relating to the impact of the community unrest and the Company’s efforts to resolve the same . 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 24,
2020 and its short form prospectus dated June 8, 2020, which are 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; risks associated with the Company's community relationships; risks related to financing
requirements; failure by the Company to maintain its obligations under its credit facilities; operating risks;
risks associated with the ramp up of mining operations; risks related to political and economic instability in
Ecuador; risks related to production estimates; risks related to Lundin Gold’s compliance with environmental
laws and liability for environmental contamination; volatility in the price of gold; shortages of critical supplies;
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lack of availability of infrastructure; deficient or vulnerable title to mining concessions; easements and
surface rights; risks related to the Company’s workforce and its labour relations; inherent safety hazards
and risk to the health and safety of the Company’s employees and contractors; risks related to the
Company’s ability to obtain, maintain or renew regulatory approvals, permits and licenses; the imprecision
of mineral reserve and resource estimates; key talent recruitment and retention of key personnel; volatility
in the market price of the Company’s shares; the potential influence of the Company's largest shareholders;
uncertainty with the tax regime in Ecuador; measures to protect endangered species and critical habitats;
the cost of non -compliance and compliance costs; exploration and developmen t risks; the Company's
reliance on one project; risks related to illegal mining; the reliance of the Company on its information
systems and the risk of cyber -attacks on those systems; the adequacy of the Company’s insurance;
uncertainty as to reclamation a nd decommissioning; the ability of Lundin Gold to ensure compliance with
anti-bribery and anti-corruption laws; the uncertainty regarding risks posed by climate change; the potential
for litigation; limits of disclosure and internal controls; security risk s to the Company; its assets and its
personnel; conflicts of interest; the risk that the Company will not declare dividends; and social media and
the Company’s reputation.