Lundin Mining Announces Declaration of Dividend and Intention to Dual List Directly on Nasdaq Stockholm

NEWS RELEASE

Lundin Mining Announces Declaration of Dividend and Intention

to Dual List Directly on Nasdaq Stockholm

Toronto, April 26, 2017 (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin

Mining” or the “Company”) is pleased to announce that the Board of Directors has declared a dividend

of CAD$0.03 per share to be payable on June 20, 2017. The Company also advises that it has submitted

applications to have its shares listed directly on Nasdaq Stockholm, replacing its current SDR structure.

Dividend

The dividend of CAD$0.03 per share is payable on June 20, 2017 to the shareholders of record at the

close of business on June 2, 2017. This dividend qualifies as an 'eligible dividend' for Canadian income

tax purposes. The declaration, timing, amount and payment of future dividends remain at the discretion

of the Board of Directors.

Notice to all Non-Canadian Resident Shareholders

In 2012, the Canada Revenue Agency (CRA) changed how the tax withholding rate applied to dividend

payments made to non -residents is determined. The CRA now requires a certification of residency from

each shareholder so that the preferred tax treaty rate ca n be applied where applicable to persons

resident in countries which have a tax treaty with Canada.

Form NR301 will be mailed to any new Registered non-resident shareholders as at the dividend record

date (June 2, 2017) , by Computershare Investor Service s Inc. In order to receive the preferred treaty

rate, you must complete and mail back the form as soon as possible. Failure to supply a completed

NR301 form will result in Computershare withholding the statutory 25% withholding tax rate on any

payments to Registered non -resident shareholders. You can also download the form at

https://cda.computershare.com/Content/4f677775-5e6c-4e64-a695-a5785771fec3. Instructions on how

to correctly complete the NR301 are on the back of the form. Shareholders who hold their shares

through a broker should contact their broker directly. They do not need to return a form to

Computershare. If you have already completed Form NR301, you do not need to complete a new form.

Notice to All Holders of Swedish Depository Receipts

The dividend declared above is payable to those holders of SDBs (ISIN SE0001134529) ("SDRs") who on

the record date for the dividend (June 2, 2017) are entered in the SDR register kept by Euroclear Sweden

as holders of SDRs or holders of rights. Dividends payable to SDR holders shall be paid in Swedish kronor

(SEK). The exchange from CAD to SEK will be executed by Pareto Securities AB at public market rate. The

estimated payment date is on or about June 26, 2017.

Corporate Office

150 King Street West, Suite 1500

P.O. Box 38

Toronto, ON M5H 1J9

Phone: +1 416 342 5560

Fax: +1 416 348 0303

To execute the payment of the dividend on the SDRs, a temporary administrative cross border transfer

closure will be applied from and including May 30, 2017 up to and including June 2, 2017, during which

period shares of the Company cannot be deposited with Pareto Securities AB and deposited shares of

the Company cannot be withdrawn.

Dividend payments on SDRs will be made net of 25% Canadian withholding tax and any other Canadian

and Swedish taxes deemed applicable under Canadian and Swedish law. SDR holders who are entitled to

reclaim Canadian and/or Swedish tax under applicable tax treaties should contact the CRA and the

Swedish Tax Agency, respectively, directly. SDR holders who hold their SDRs through a nom inee should

contact their nominee.

The change to direct share listing from SDRs, as described below, will not affect the payment of the

dividend to those holders of SDRs who on the record date for the dividend (June 2, 2017) are entered on

the SDR register kept by Euroclear Sweden as holders of SDRs or holders of rights, as set forth above.

Listing of Shares on Nasdaq Stockholm

The Company’s shares are currently traded on Nasdaq Stockholm indirectly through SDRs. The Company

has submitted applications to have its shares listed on Nasdaq S tockholm and obtain a dual listing of its

shares on TSX and on Nasdaq Stockholm.

In order to directly list the shares on Nasdaq Stockholm, the Company, Euroclear Sweden and Pareto

Securities AB (the “Custodian”) will seek to agree the termination of the respective arrangements

pursuant to which the shares are represented by SDRs. Once the termination has been agreed by all

parties, all SDRs will automatically be converted to the underlying shares. No action is required of

holders of SDRs to affect this ch ange. It is expected that a notice of termination of the SDRs will be

published in Svenska Dagbladet on or around May 2, 2017 and further that the record date on which the

Custodian shall cancel the SDRs and deliver the underlying shares to the holders of SDRs or holder of

rights registered on the record date, shall be on or around June 9, 2017.

The first day of trading of shares is expected to be June 8, 2017. The trading symbol of the Company’s

shares will be “LUN” (CA5503721063). All shares traded on Nasdaq Stockholm will be affiliated to

Euroclear Sweden. In conjunction with the above, the Company has also applied to de -list the SDRs from

Nasdaq Stockholm. The last day of trading of the SDRs is expected to be June 7, 2017.

To execute the above, an ad ministrative cross border transfer closure will be applied from and including

June 5, 2017 from which date shares of the Company cannot be deposited with Pareto Securities AB and

deposited shares of the Company cannot be withdrawn.

The Company’s application for the listing of its shares on Nasdaq is subject to customary conditions

which include the approval and registration, and subsequent publication, of a listing prospectus

prepared in accordance with Swedish laws and regulations.

As discussed above, it is expected that the conversion of the SDRs and listing of shares on Nasdaq

Stockholm will have been completed before the estimated June 20, 2017 dividend payment date.

Payment of the dividend will nonetheless be made to holders of SDRs who on th e dividend record date

(June 2, 2017) are entered on the SDR register maintained by Euroclear Sweden.

About Lundin Mining

Lundin Mining is a diversified Canadian base metals mining company with operations in Chile, the United

States of America, Portugal, and Sweden, primarily producing copper, nickel and zinc. In addition, Lundin

Mining holds an indirect 24% equity stake in the Freeport Cobalt Oy business, which includes a cobalt

refinery located in Kokkola, Finland.

The content contained here in is not tax advice. Do not use or otherwise rely upon any of the content

without first seeking independent tax advice.

Cautionary Statement in Forward-Looking Information

Certain of the statements made and information contained herein , other than state ments of historical

fact and historical information , is “forward -looking information” within the meaning of applicable

Canadian securities laws. Such statements include, but are not limited to, payment of the dividend,

listing of the common shares on Nasdaq Stockholm (including timing thereof), delisting of the SDRs from

the Nasdaq Stockholm (including timing thereof), future dividends, and the approval and registration of

a listing prospectus. Words such as “could” “estimate”, “expect”, “if”, and “schedule”, or variations of

these terms or similar terminology or statements that certain actions, events or results “ could” occur or

be achieved are intended to identify such forward -looking information. Although the Company believes

that the expectation s reflected in the forward -looking information contained herein are reasonable,

these statements by their nature involve risks and uncertainties, and are not guarantees of future

performance. Forward -looking information is based on a number of assumptions, and subject to a

variety of risks and uncertainties which could cause actual events or results to differ from those

reflected in the forward -looking statements. Such risks and uncertainties include, without limitation,

delays encountered with the Nasdaq S tockholm and other regulatory authorities in Sweden, changes in

laws or policies, foreign taxation, delays or the inability to obtain necessary governmental/regulatory

approvals (including the approval of the listing prospectus), as well as other risks and uncertainties

including but not limited to those described in the Risks and Uncertainties section of the Company’s

most recently filed Annual Information Form and in the Managing Risks section of each of the

Company’s management discussion and analysis. S hould one or more of these risks and uncertainties

materialize, or should underlying assumptions prove incorrect, actual results may vary materially from

those described in forward -looking statements. Accordingly, readers are advised not to place undue

reliance on forward-looking statements. The Company disclaims any intention or obligation to update or

revise any forward ‐looking statements or to explain any material difference between subsequent

actual events and such forward‐looking statements, except to the extent required by applicable law.

On Behalf of the Board,

Paul Conibear

President and CEO

This is information that Lundin Mining Corporation is obliged to make public pursuant to the EU Market

Abuse Regulation and the Swedish Securities Market Act. The information was submitted for

publication, through the agency of the contact persons set out above on April 26, 2017 at 5: 40 p.m.

Eastern Time.

For further information, please contact:

Mark Turner, Director, Business Valuations and Investor Relations: +1-416-342-5565

Sonia Tercas, Senior Associate, Investor Relations: +1-416-342-5583

Robert Eriksson, Investor Relations Sweden: +46 8 545 015 50