Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) is pleased to announce results from the near-mine and conversion drilling programs at its 100% owned Fruta del Norte gold mine in southeast Ecuador. Of note, the near-mine drill program has discovered three new targets of interest, Fruta del Norte South, Bonza Sur and Castillo, located to the south of FDN (see Figure 1). Highlights are outlined below and detailed results at the end of the release.

Highlights from near-mine exploration holes drilled (not true widths):

• Drill hole FDNS-2023-019 intersected 5.16 g/t gold over 41.8 m from a depth of 397.3 m, including:
  • 8.56 g/t Au over 18.0 m from 421.3 m (at FDNS)
• Drillhole BLP-2022-016 intersected 8.27 g/t Au over 39.0 m from a depth of 58 m, including:
  • 277.0 g/t Au over 1.0 m from 70.0 m (at Bonza Sur)
• Drillhole BLP-2023-022 intersected 46.98 g/t Au over 3.5 m from a depth of 126.6 m, including:
  • 87.58 g/t Au over 1.8 m from 128.3 m (at Bonza Sur)

Ron Hochstein, President and CEO, commented, “I am pleased to announce exciting drill results from Lundin Gold’s near-mine drilling program. These results demonstrate the significant exploration potential of our land package that we have just started to test. The discovery of FDNS, which shows similar characteristics to FDN, and high-grade intercepts drilled at other targets of interest along trend, are evidence of the potential significant gold mineralization in multiple targets surrounding the FDN deposit. Based on these results, we want to accelerate the delineation of these new exploration opportunities and are therefore planning to increase our near-mine drilling program for 2023 from 15,500 to 23,000 metres while maintaining our regional exploration program at 12,500 metres.”

NEAR-MINE EXPLORATION PROGRAM

The near-mine program focuses on exploring sectors located along trend of the FDN deposit and within extensions of its major controlling structures. Initial drill results published in January (see news release published on January 26^th, 2023) identified potential areas of interest. Based on further drilling conducted at the start of 2023, these areas are now better understood and have enabled the delineation of a new mineralized zone, FDNS, and the discovery of Bonza Sur and Castillo (see Figure 1 and 2). As of mid-April, a total of 4,110 metres across eight holes, from surface and underground, have been completed and all available assay results received to date are set out in Table 1 and Table 3 at the end of this release. Results are still pending for a number of the reported drill holes.

FDN South

At FDNS, the current drill program aims to delineate new buried epithermal mineralization located to the west of the East Fault. Three drill holes recently completed intercepted wide hydrothermal alteration zones of a similar composition to that found at FDN. Results from hole FDNS-2023-019 indicate there is significant potential to continue exploring along strike, to the north and south, as well as along the downdip continuity, below the Suarez Basin cover. Two rigs are currently turning at FDNS.

Bonza Sur

Drilling to test a geochemical soil anomaly along the south extension of the East Fault intercepted a new mineralized zone, Bonza Sur, that is located one kilometre south of FDN. Drill hole BLP-2022-016 intercepted high grade gold mineralization hosted in a wide hydrothermal alteration zone. Additional drilling has confirmed that mineralization continues along strike to the south and at depth. The geochemical soil anomaly at Bonza Sur extends over 1.2 kilometres, and one rig is currently turning here (see Figure 1 and 2).

Castillo

At Castillo, the first drill hole completed, BLPW-2022-017, returned positive results. This target of interest, which is located underneath the Suarez Basin to the west of the East Fault and south of FDNS, is in a similar geological setting to FDN and FDNS. This target area is planned to be further explored during 2023, where additional drilling will target wider mineralized zones at depth.

West Structure

Along the west structure, underground exploration drill holes intercepted a mineralized zone to the west of the West Fault. The new zone is hosted in an unexplored geological setting that will be further investigated.

Drilling Program Expansion

The near-mine exploration program results continue to demonstrate the significant untapped exploration potential near the current FDN deposit. Most of the near-mine drilling to date has intercepted wide and consistent hydrothermal alteration zones related to epithermal systems, and several early-stage discoveries, such as FDNS and Bonza Sur, have already been made. As a result of the recent advances and to accelerate delineation of these targets and continue to explore other sectors along FDN’s major structures, the Company plans to increase the near-mine drilling program to a minimum of 23,000 metres in 2023, compared to 15,500 metres originally planned. This will result in an estimated increase of $3.5 million, which combined with the regional program, results in an estimated program cost of $24.6 million on near-mine and regional exploration for the year.

Figure 1: Near-mine program showing FDN, targets, drilling program completed and main results

Figure 2: FDN-Bonza Sur long section (looking East) showing targets and main results

CONVERSION PROGRAM

The Company’s conversion program aims to convert Mineral Resources to Mineral Reserves. The 2023 program, which entails approximately 7,600 metres of drilling, is underway. Highlights from the 2023 conversion program include (not true widths):

• Drill hole FDN-C23-002 intersected 10.18 g/t Au over 26.65 m from 112.3 m, including:
  • 19.41 g/t Au over 8.9 m from 123.3 m
• Drill hole FDN-C23-003 intersected 7.84 g/t Au over 45.6 m from 101.2 m, including:
  • 13.67 g/t Au over 5.8 m from 107.4 m, and;
  • 12.67 g/t Au over 12.4 m from 132.2 m
• Drill hole FDN-C23-010 intersected 8.02 g/t Au over 24.6 m from 27.0 m, including 58.34 g/t over 2.7 m, and 12.12 g/t Au over 40.9 m from 81.6 m

Since January, a total of 1,706 metres across 10 drill holes have been completed with all initial results confirming the continuity, grades, and width of the drilled areas (see Tables 2 and 3) beyond the FDN Mineral Reserve boundary. In the north-central sector of FDN, high grade drilling intercepts from along the downdip extension of the deposit were returned. In the southern extension, all drill holes intercepted wide zones of hydrothermal alteration and confirmed the continuity of the deposit in this sector with significant assay results (see Figure 3).

Figure 3: Fruta del Norte long section showing main conversion drilling results

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, QA-QC and data verification procedures, please see Lundin Gold’s Annual Information Form dated March 31, 2023, 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 thickness versus grade above 14 (m x g/t Au >14). Drill hole intercepts are reported in drill core lengths

Table 2: Drillhole assay results from the underground conversion drilling program reported for intervals thickness versus grade above 14 (m x g/t Au >14). Drill hole intercepts are reported in drill core lengths

Table 3: Collar locations of reported drill holes

Figure 1: Near-mine program showing FDN, targets, drilling program completed and main results (CNW Group/Lundin Gold Inc.)

Figure 2: FDN-Bonza Sur long section (looking East) showing targets and main results (CNW Group/Lundin Gold Inc.)

Figure 3: Fruta del Norte long section showing main conversion drilling results (CNW Group/Lundin Gold Inc.)