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LUN.TO ·

Lundin Mining Announces TSX Approval for a Normal Course Issuer Bid

Corporate Actions

Corporate Office

150 King Street West, Suite 2200

P.O. Box 38, Toronto, ON M5H 1J9

Phone: +1 416 342 5560

Fax: +1 416 348 0303

lundinmining.com

NEWS RELEASE

Lundin Mining Announces TSX Approval for a Normal Course Issuer Bid

Toronto, December 4, 2020 (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin

Mining” or the “Company”) announces that the Toronto Stock Exchange (the “TSX”) has accepted the notice of

Lundin Mining’s intention to renew its normal course issuer bid (the “NCIB”).

The Company intends to continue to utilize the NCIB at its discretion to make opportunistic purchases to create

shareholder value and manage the number of outstanding common shares of the Company (the “Common

Shares”).

This approval allows the Company to purchase up to 63,682,170 Common Shares, representing 10% of t he

734,303,819 issued and outstanding Common Shares as of November 30, 2020, minus those Common Shares

beneficially owned, or over which control or direction is exercised by the Company, the senior officers and

directors of the Company and every shareholde r who owns or exercises control or direction over more than

10% of the outstanding Common Shares, over a period of twelve months commencing on December 9, 2020.

The NCIB will expire no later than December 8, 2021.

All purchases made pursuant to the NCIB wi ll be made through the facilities of the TSX or other alternative

Canadian trading systems. In accordance with TSX rules, any daily purchases (other than pursuant to a block

purchase exemption) on the TSX under the NCIB are limited to a maximum of 524,753 Common Shares, which

represents 25% of the average daily trading volume of 2,099,014 Common Shares on the TSX for the six months

ended November 30, 2020. The price that Lundin Mining will pay for Common Shares in open market

transactions will be the market price at the time of purchase.

In connection with the NCIB renewal, Lundin Mining entered into an automatic repurchase plan with its

designated broker to allow for the repurchase of Common Shares at times when the Company ordinarily would

not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise

(any such period being an “Operating Period”). Before entering an Operating Period, the Company may, but is

not required to, instruct the designated broker to make purchases under the NCIB in accordance with the terms

of the plan. Purchases made pursuant to the plan, if any, will be made by the Company’s designated broker

based upon the parameters prescribed by the TSX, applicable Canadian securities laws and th e terms of the

written agreement entered between the Company and its designated broker. Outside of these Operating

Periods, Common Shares will be purchasable by Lundin Mining at its discretion under its NCIB.

The automatic repurchase plan will commence on the effective date of the NCIB and will terminate on the

earliest of the date on which: (i) the purchase limit under the NCIB has been reached; (ii) the NCIB expires; and

(iii) the Company terminates the automatic repurchase plan in accordance with its ter ms. The automatic

repurchase plan constitutes an “automatic plan” for purposes of applicable Canadian securities legislation and

the agreement governing the plan has been pre-cleared by the TSX.

The actual number of Common Shares that may be purchased and the timing of such purchases will be

determined by the Company. Decisions regarding purchases will be based on market conditions, share price,

best use of available cash, and other factors. Any Common Shares that are purchased under the NCIB will be

cancelled.

Under the Company’s current NCIB that commenced on December 9, 2019 and expires on December 8, 2020,

the Company previously sought and received approval from the TSX to purchase up to 63,797,653 Common

Shares. As of November 30, 2020, the Company has purchased 2,611,300 Common Shares under its current

NCIB through open market transactions at a weighted average price of approximately $6.81 per Common

Share.

About Lundin Mining

Lundin Mining is a diversified Canadian base metals mining company with operations in Brazil, Chile, Portugal,

Sweden and the United States of America, primarily producing copper, zinc, gold and nickel.

The information in this release is subject to the dis closure requirements of Lundin Mining under the EU Market

Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set

out below on December 4, 2020 at 18:30 Eastern Time.

For further information, please contact:

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

Brandon Throop, Manager, Investor Relations: +1 416 342 5583

Robert Eriksson, Investor Relations Sweden: +46 8 440 54 50

Cautionary Statement in Forward-Looking Information

Certain of the statements made and information contained herein, other than statements 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, statements with respect to Lundin Mining’s proposed

normal course issuer bid, the Company’s pre -defined plan with its broker to allow for the repurchase of Common Shares, and the number of Common Shares tha t

may be purchased under the normal course issuer bid. Words such as “if”, “will be”, “may” and “schedule”, or variations of t hese 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 expectations reflected in the forward -looking information contained herein are reasonable, these statements by their nature involve risks and

uncertainties, and are not g uarantees 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. Risks include but are not limited to the

market price of the Common Shares being too high to ensure that purchases benefit the Company and its shareholders, as well as additional risks disclosed in filings

made by the Company with Canadian securities regulatory authorities. There can be no assurance that the Common Shares will, from time to time, trade below their

value or that the Company will complete purchases of Common Shares pursuant to the NCIB. Should one or more of these risks an d uncertainties m aterialize, or

should underlying assumptions prove incorrect, actual results may vary materially from those described in forward -looking statements. Accordingly, readers should

not place undue reliance on forward -looking statements. The Company disclaims a ny 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.