Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) is pleased to announce the early repayment in full of its gold prepay credit facility. All amounts are in U.S. dollars unless otherwise indicated.

Pursuant to the terms of the agreement, Lundin Gold elected to prepay in full the ten remaining quarterly instalments of its Gold Prepay Facility based on the price of gold near the end of December, through the payment of $207.5 million, inclusive of applicable taxes. The Gold Prepay Facility was part of the original project financing package provided by Orion Mine Finance Group and Blackstone Tactical Opportunities in 2017 to finance the construction of Lundin Gold’s Fruta del Norte gold mine in Ecuador. It was acquired by Newcrest Mining Limited, through one of its subsidiaries, in April 2020.

Ron Hochstein, President and CEO, commented, “We believe that, combined with the strong financial performance of our operations, the early repayment of the Gold Prepay Facility gives Lundin Gold the flexibility to pursue operational and strategic opportunities for the benefit of the Company and our shareholders. This is a first step in the Company’s debt consolidation strategy, made possible by our strong treasury position and operating cash flows from the first two and a half years of operations at FDN. Going forward, it will result in increased net cash flows and will allow Lundin Gold to benefit from forecast high gold prices. We believe Lundin Gold is well positioned for a strong year ahead.”

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.