Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) is pleased to announce initial drill results from the 2022 near-mine exploration program at its 100% owned Fruta del Norte gold mine in southeast Ecuador. Results from the drill program identified new mineralized zones to the south and at depth of FDN’s currently defined Mineral Resources. Highlights and detailed results are shown below (not true width).

Highlights from holes drilled to the south of FDN:

• Drillhole FDN2022-009 intersected 5.11 g/t Au over 30.3m from a depth of 267.7m, including;
  • 79 g/t Au over 14.0m from 284.0m
• Drillhole FDN2022-006 intersected 3.99 g/t Au over 4.8m from 181.7m, and 4.40 g/t Au over 8.1m from 213.9m

Highlights from holes drilled under the southern portion of the FDN mineral resource envelope:

• Drillhole UGE-DD-22-008 intersected 4.11 g/t Au over 23.0m from 197.7m, including;
  • 03 g/t Au over 10.0m from 202.7m
• Drillhole UGE-DD-22-005 intersected 3.53 g/t Au over 44.9m from 134.8m, including;
  • 25 g/t Au over 12.9m from 134.8m, and;
  • 32 g/t Au over 15.0m from 164.7m

Ron Hochstein, President and CEO, commented, “These early drill results highlight the significant potential of the largely unexplored area surrounding the FDN mineral resource envelope. Results demonstrate the significant potential of the epithermal system beyond the known limits of the FDN deposit and support our belief that the near-mine program will enable expansion of current Mineral Resources. To advance this objective, we are increasing our near-mine exploration efforts with a minimum of 15,500 metres of drilling in 2023 compared to 8,600 metres drilled in 2022”.

NEAR-MINE EXPLORATION PROGRAM

The near-mine exploration program was initiated in the third quarter of 2022, and focuses on expanding the FDN mineral resource envelope and testing several unexplored opportunities near the mine site. To date approximately 8,600 metres have been drilled across 16 holes, from surface and underground.

New Mineralized Zone Intercepted to the South of FDN’s Mineral Resource Envelope

To the south of the current FDN mineral resource envelope, a surface drilling program continues to explore sectors along the two main controlling structures of the FDN deposit, the East and West faults.

Along the southern extension of the East fault a new mineralized zone has been intercepted. Initial promising results suggest continuity of the epithermal system in this southern direction.

This surface drilling program completed nine drill holes in 2022 (see Figure 1), most of them located between 200 and 900 metres south of the FDN mineral resource envelope boundary. Assay results received to date are set out in Table 1. Results for several drill holes are pending.

Most of the drill holes intercepted wide hydrothermal alteration zones of similar characteristics to those found at the FDN deposit. This zone remains open at depth, along strike to the north and to the south, where a gold and epithermal pathfinder elements soil anomaly remains untested (see Figure 1). The 2023 program has already started, with one rig drilling on this new zone and a second rig to be added shortly.

Figure 1: Completed holes from the 2022 near-mine program and location of the new mineralized zone intercepted to the south of FDN

Drilling also Indicates that the Deposit is Open at Depth

In addition to the surface drilling, the near-mine program’s underground drilling focuses on the continuity of the FDN deposit and west structure at depth. A total of seven drill holes were completed under the southern portion of the FDN mineral resource envelope. Initial results indicate new zones where the deposit remains open at depth (see Figure 2). Assay results received to date are set out in Table 1. Results for several drill holes are pending.

Most of the results obtained from underground drilling exhibit the same mineral hydrothermal alteration to that related to mineralization in the southern extension of FDN’s Mineral Resource and confirm the continuity of the deposit at depth, below the current resource. Underground drilling is being expanded in 2023 to continue to explore at depth. The initial focus will be the north-central sector below the highest-grade portion of the mineral deposit, where the mine is currently operating (see Figure 2).

Figure 2: FDN longitudinal section showing drilling results at depth, under the southern extension

2023 Near-Mine Exploration Program

The 2023 near-mine program will include underground and surface drilling at or near FDN. Indications from drilling in 2022 suggest potential for the extension of FDN Mineral Resources at depth as well as to the East, West and South of the current mineral resource envelope. The 2023 near-mine program is targeting at least 15,500 metres of drilling at an estimated cost of $9.4 million.

REGIONAL EXPLORATION PROGRAM

Investigation of the Suarez Basin Continues

In 2022, Lundin Gold completed approximately 17,600 metres of drilling across several targets in the southern basin as part of its regional exploration program. The program has successfully advanced in the identification of important indicators that point toward the presence of buried epithermal deposits in the southern basin. Through a detailed geological interpretation of exploration data and additional surface works, several targets of interest have been identified, tested, and resulted in locating new potentially mineralized structures. They include:

• Along the south western basin border, the Quebrada La Negra and Puente Princesa targets were investigated with a total 6,987 metres drilled across nine holes. At Quebrada La Negra, the drilling program identified a new structure associated to the west border, represented by wide hydrothermal alteration zones with breccias and/or veins and disseminated sulfides. The program also drilled an arsenic soil anomaly, where drilling intercepted a major structure with quartz veins, hydrothermal carbonate-silica breccias and sulfides hosted in the Santiago formation, which is also the FDN hosting sequence. This hydrothermal alteration zone possibly represents the northern continuity of the Puente Princesa structure, defined in the second quarter. All results are pending.
• Four drill holes were completed at Barbasco Norte for a total of 2,123 metres to test a continuous geochemical gold soil anomaly at the edge of the Suarez Basin. The drilling program intercepted low grade values of gold and epithermal pathfinder element arsenic in narrow hydrothermal alteration zones of similar composition to that found in epithermal systems like Fruta del Norte. The obtained geological data suggest an increase of the hydrothermal alteration toward the east, close to the basin border and where additional drilling is being planned in 2023.
• At Barbasco, the program explored for several indicators of epithermal systems in distinct sectors of the target. Nine drill holes for a total of 6,351 metres were completed. The drilling only intercepted few and limited zones of hydrothermal alteration zones at depth, and the current interpretation suggests additional drilling is required to explore untested sectors located farther east.

2023 Regional Program

Drilling under the regional program will focus on several exploration targets located in the 16 km long Suarez Basin, with the objective of identifying another FDN. The 2023 regional program is estimated to cost $11.7 million for planned drilling of 12,500 metres. This program is anticipated to begin within the next few weeks.

Qualified Persons

The technical information contained in this News Release has been reviewed and approved by Andre Oliveira, P. Geo, Vice President, Exploration of the Company, who is a Qualified Person in accordance with the requirements of NI 43-101.

Samples consist of half HQ and NQ-size diamond core that are split by diamond saw on site, prepared at the ALS laboratory in Quito, and analysed by 50g fire assay and multi-element (ICP-AES/ICP-MS) at the ALS Laboratory in Lima, Peru. The quality assurance-quality control (QA-QC) program of Lundin Gold includes the insertion of certified standards of known gold content, blank and duplicate samples. The remaining half core is retained for verification and reference purposes. For further information on the assay, QAQC and data verification procedures, please see Lundin Gold’s Annual Information Form dated March 21, 2022, filed under the Company’s profile on SEDAR (www.sedar.com).

About Lundin Gold

Lundin Gold, headquartered in Vancouver, Canada, owns the Fruta del Norte gold mine in southeast Ecuador. Fruta del Norte is among the highest-grade operating gold mines in the world.

The Company’s board and management team have extensive expertise in mine operations and are dedicated to operating 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.

APPENDIX 1

Table 1: Drillhole assay results from the near-mine surface drilling program reported for intervals above 3.5 g/t and minimum lengths of 4 metres. Drill hole intercepts are reported in drill core lengths

Table 2: Collar locations of reported drill holes