Record Quarterly Earnings and Free Cash Flow Generation 

Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) announced its financial and operational results for the first quarter ended March 31, 2026. The Company delivered a strong start to the year, generating record free cash flow¹ of $349 million and net income of $273 million, supported by consistent operating and cost performance at Fruta del Norte, and record realized gold prices.

Gold production totaled 119,742 oz in the quarter, with gold sales of 115,308 oz at an average realized gold price¹ of $4,951 per oz, resulting in revenues of $567 million.  Cash operating costs¹ and all‑in sustaining costs¹ were $987 per oz and $1,114 per oz sold, respectively, reflecting higher royalties and statutory profit sharing associated with higher gold prices.

The Company ended the quarter with a robust balance sheet, including cash and cash equivalents of $704 million and no debt, while returning $278 million to shareholders through dividends. The Company has declared cash dividends of $1.21 per share payable in the second quarter of 2026 and, subject to completion of the previously announced silver stream-for-equity transaction with LunR Royalties Corp. anticipates distributing LunR shares to its shareholders as a dividend in kind during the second quarter.

Lundin Gold remains on track to meet its 2026 production and cost guidance and continues to advance its growth pipeline through early‑stage development at FDNS, the mine-to-mill expansion study, and the largest exploration program in the Company’s history.  All amounts are in U.S. dollars unless otherwise indicated.

Jamie Beck, President and CEO, commented, “We delivered an excellent start to 2026, generating record free cash flow while executing on our long‑term growth strategy. FDN’s consistent operational performance, combined with a strong gold price environment, further strengthened our financial position and supports substantial returns to shareholders.  During the quarter, we also made meaningful progress at FDNS and on the mine‑to‑mill expansion study, while our exploration programs continued to demonstrate the quality and scale of the Fruta del Norte district, reinforcing the depth of our pipeline and the long‑term optionality of the business.”

OPERATING AND FINANCIAL RESULTS SUMMARY

The following two tables provide an overview of key operating and financial results.

FIRST QUARTER HIGHLIGHTS

Financial Results

• Gold sales totaled 115,308 oz, consisting of 69,066 oz in concentrate and 46,242 oz as doré, resulting in gross revenues of $571 million at an average realized gold price¹ of $4,951 per oz.  Average realized gold price¹ was positively impacted by rising gold prices on provisionally priced gold sales which exceeded fair value estimates as at December 31, 2025. Net of treatment and refining charges, revenues for the quarter were $567 million.
• Average realized gold price¹ includes $4,797 per oz of gross price received and a favourable impact of $154 per ounce from adjustments to provisionally priced sales.
• Cash operating costs and AISC were $987 and $1,114 per oz of gold sold, respectively.  These figures reflect higher accrued royalties and statutory profit sharing payable to employees which were driven by record-high average realized gold prices¹.
• The Company generated cash from operating activities of $370 million and free cash flow¹ of $349 million, or $1.44 per share, resulting in a cash balance of $704 million at March 31, 2026.
• EBITDA¹ totaled $424 million while income from mining operations was $421 million which, after deducting corporate costs, exploration expenditures, and taxes, resulted in net income of $273 million, or $1.13 per share, for the quarter.

Operational Results

• The mine produced 480,240 tonnes of ore at an average grade of 9.1 g/t during the quarter, with mill throughput supported by the planned use of stockpiled material to optimize processing rates and overall performance.
• The mill processed 496,798 tonnes of ore at an average throughput rate of 5,520 tpd and an average grade of 8.4 g/t.  Gold recoveries averaged 89.2%, below full‑year guidance, reflecting variability in ore characteristics and plant operating conditions.
• Gold production was 119,742 oz which was comprised of 79,451 oz in concentrate and 40,291 oz as doré.

Outlook

• Following strong performance during the first quarter of 2026, the Company is on track to meet its production guidance of 475,000 to 525,000 oz and AISC¹ guidance of $1,110 to $1,170 per oz sold.  The Company continues to expect gold production and sales to be back-end weighted in 2026 as mill head grade is expected to decline in Q2 due to mine resequencing, while throughput is expected to decrease during the quarter as a result of planned plant maintenance. Head grades and throughput are expected to improve as the year progresses following completion of maintenance and as mining advances to higher-grade areas.  Sustaining capital expenditures¹ are expected to increase over the remaining quarters of 2026 in line with the commencement of the sixth tailings dam raise and development of a new quarry.
• Following the declaration of inaugural Mineral Reserves at FDNS, the Company has begun advancing staged development activities to support the potential integration of FDNS into the Fruta del Norte mine plan.  Early works completed to date have focused on underground access, technical studies, and engineering, intended to further de‑risk FDNS.  The Company intends to continue early-stage development activities at FDNS concurrent with a single, integrated investment decision in 2026 which will consider optimized mining rates at both FDN and FDNS, as well as opportunities to enhance processing capacity.  Further details on future spending towards the integrated expansion will be provided as this opportunity is further advanced and finalized.
• For exploration, early results and drilling activity completed in the first quarter have reinforced the prospectivity of the targets and support planned activity for the remainder of the year.  The Company is well advanced to complete the largest exploration program in the Company’s history with 133,000 metres of drilling planned.  The near-mine exploration program is expected to account for approximately 100,000 metres, combining surface and underground drilling aimed at extending the mine life of FDN.  This investment will target high-grade epithermal gold deposits and advance exploration of the emerging copper-gold porphyry corridor, building on the strong results achieved to date.
• In addition to near-mine efforts, the regional program will focus on the Company’s extensive and highly prospective land package surrounding FDN and beyond.  Following reconnaissance work completed in 2025, 8,000 metres of drilling is planned on advanced targets identified within this underexplored district, marking an important step in unlocking new growth opportunities.
• Separately, 25,000 metres of resource conversion drilling is planned in 2026 to support updates to Mineral Reserve and Resource estimates.  The total investment in the 2026 exploration program is estimated at $85 million, underscoring the Company’s commitment to disciplined organic growth through exploration.
• Under its dividend policy, the Company anticipates continuing to declare quarterly minimum dividends of $0.30 per share, equivalent to approximately $300 million annually based on currently issued and outstanding shares, plus a variable dividend equal to an amount based on at least 50% of the Company’s normalized free cash flow, after the deduction of the fixed dividend.

Liquidity and Capital Resources

At the end of March 31, 2026 the Company is in a strong financial position.

As at March 31, 2026, the Company had cash and cash equivalents of $704 million and a working capital balance of $572 million compared to cash and cash equivalents of $630 million and a working capital balance of $595 million at December 31, 2025.

The change in cash during the first quarter of 2026 was primarily due to cash generated from operating activities of $370 million and proceeds from the exercise of stock options of $3.0 million.  This is offset by dividends paid of $278 million and capital expenditures of $21.5 million.

Capital Expenditures

Sustaining Capital Expenditures¹

• Sustaining capital expenditures¹ during the first quarter of 2026 totaled $10.5 million.
• Capital spending was primarily focused on the fifth tailings dam raise which was substantially completed during the quarter.
• Other projects that were completed or advanced included infrastructure enhancements such as the administration and services buildings as well as mobile equipment overhauls and replacements.

Non-Sustaining Capital Expenditures¹

• Non-sustaining capital expenditures¹ of $8.9 million primarily reflect growth-oriented investments, including current early-stage development activities at FDNS, located in the southern portion of the FDN deposit, and study costs associated with the mine to mill expansion initiative.
• During the quarter, following the declaration of inaugural Mineral Reserves at FDNS, the Company advanced early-stage technical and engineering work, including preparatory underground access development, to support the initial development of FDNS.
• During the quarter, engineering and technical studies advanced in support of the mine to mill expansion study, examining the integration of FDNS into the broader mine plan and associated processing capacity options to increase beyond 5,500 tpd. The Company continues to expect to make a single, integrated investment decision in the second half of 2026.
• In addition, the conversion drilling program completed approximately 4,391 metres at FDNS across 40 holes with four rigs currently turning, supporting ongoing resource definition and potential Reserve growth.
  • The completed holes confirmed continuity of mineralization and identified higher‑grade zones within the vein system, with some conversion drill holes also intersecting mineralization outside the existing geological model.
  • A complete table of conversion drilling results received to date can be found in Lundin Gold’s press release dated May 5, 2026.

Health and Safety

During the first quarter there was one Lost Time Incident and three Medical Aid Incidents.  The Total Recordable Incident Rate across the Company was 0.39 per 200,000 hours worked for the quarter.

Community

Lundin Gold sponsored community projects continued to advance in the first quarter of 2026.  The implementation of the second phase of the Company’s local community mental health and well-being program advanced according to plan in the quarter and is expected to run until December 2026.  Since the inception of the second phase of the program in August 2025, approximately 3,990 counselling sessions were provided to local community residents by quarter end.  In addition, the sports academy component of the program continues with strong performance, with more than 550 youth registered by quarter end in extra-curricular activities, including basketball, soccer, dance, music, and boxing.

The School Meals program at the local school in Los Encuentros launched prior to year end and was in full operation during the quarter.  Through this program, nutritious meals are provided to over 1,200 students during the school day, integrating food supplies from local farmers.  This program is planned to run until July 2028.

Engagement with numerous local governments continues to support rural road maintenance, community wellbeing, and the Company’s regional exploration activities. During the quarter, the Company committed to several significant projects focused on electrification and public street lighting and paving works.

Lundin Gold continued to participate in the community dialogue roundtable process. Six separate roundtables were held in February. Approximately 250 individuals participated in these sessions, including local vendors, local authorities, and Lundin Gold personnel.

Local businesses received ongoing support from the Company, in partnership with the Lundin Foundation. Companies participating in the Lundin Foundation’s supplier development program continued to provide products and services to FDN, while also advancing growth strategies. Lundin Gold, the Lundin Foundation and the Shuar Federation of Zamora Chinchipe, kicked off Tsentsak, a new Shuar tire distribution business to supply FDN.  The first supply of tires to FDN’s operations from this Indigenous-led business occurred in the quarter, marking an important milestone for this initiative.

EXPLORATION

Near-Mine Exploration Program

During the first quarter of 2026, the Company completed a total of 25,367 metres of drilling across 63 holes from surface and underground.

The underground near-mine drilling program continues to focus on resource growth and definition around Fruta del Norte.  At FDNS, one underground rig is drilling the main extensions of the deposit, which remains open for expansion.  At FDN, one rig is targeting the upper extension of the deposit, while at FDN East, one rig continues to explore the northern extension.  As at the date of this MD&A, three underground rigs are active in the near-mine drilling program.

The surface near-mine drilling program continued to advance copper-gold mineralization across multiple targets, including Trancaloma, Sandia, and Castillo.  Surface drilling also progressed within distinct sectors along the southern extension of the Suarez Basin.  As at the date of this MD&A, 11 surface rigs are drilling with four at Sandia, one at Trancaloma, one at Castillo, and five targeting new discoveries.

• At Sandia, located two kilometres from FDN, drilling results identified additional mineralized porphyry centres located to the east and southeast of the main deposit.  Step-out drilling also helped to further define the western and eastern limits of the Sandia deposit.
• At Trancaloma, located four kilometres from FDN, drilling results confirmed the eastern and vertical continuity of copper-gold porphyry mineralization.
• At Castillo, drilling confirmed the continuity of high-grade copper-gold mineralization to the north and identified potential new areas for further drilling under the Suarez Basin cover.
• At FDN East, the surface drilling program advanced in conjunction with the underground program and identified areas of mineralization with potential for expansion to the east.

In addition, an exploratory drilling program is underway to define additional exploration targets beneath the Suarez Basin cover.  Drilling is systematically testing the presence of hydrothermal alteration horizons and epithermal deposits pathfinder elements hosted in the Suarez Basin sediments, which could indicate the presence of gold epithermal systems at depth.

The near-mine exploration program also continues to advance in previously unexplored areas close to FDN.  A systematic exploration program employing geochemical and geophysical surveys and geological mapping continues to support the identification of new drill targets.

A table of first quarter 2026 near-mine results for the FDNS, FDN East, and FDN deposits received to date can be found in Lundin Gold’s press release dated May 5, 2026.  Several drill results for Sandia, Trancaloma, and Castillo are pending and expected to be announced during the second quarter.

Regional Exploration Program

The Company advanced its multi-year regional exploration program during the first quarter of 2026.  The program is expected to cover approximately 54,000 hectares on 23 of the Company’s concessions along the Zamora Copper Gold Belt, a high potential geological setting which hosts the Fruta del Norte mine and several large copper-gold projects.  2026 is the first year of drilling to test targets with 8,000 metres planned.  During the first quarter, the exploration program advanced in the Guacamayo District, located 17 kilometres south of FDN.  Geological mapping, followed by soil and rock sampling, was completed in distinct parts of this district.

CORPORATE

• On February 22, 2026, the Company announced a silver stream‑for‑equity transaction with LunR, pursuant to which LunR will acquire a life‑of‑mine silver stream on Fruta del Norte in exchange for the issuance of approximately 50.5 million LunR common shares, with an implied value of approximately $670 million at time of announcement.  On April 2, 2026, the Company entered into a definitive agreement with LunR on terms substantially consistent with those previously disclosed. Subject to receipt of regulatory approvals and satisfaction of customary closing conditions, the transaction is expected to close in the second quarter of 2026.  Following closing, the Company intends to distribute the LunR shares to its shareholders as a dividend in kind and will not retain any ownership interest in LunR.
• The Company paid a quarterly dividend of $1.15 per share, comprised of the fixed dividend of $0.30 per share and variable dividend of $0.85 per share, on March 26, 2026 (March 31, 2026 for shares trading on Nasdaq Stockholm) for a total of $278 million.
• With the release of its first quarter 2026 results, the Company has declared cash dividends totaling $1.21 per share, comprised of the fixed dividend of $0.30 per share and variable dividend of $0.91 per share, payable on June 25, 2026 (June 30, 2026 for shares trading on Nasdaq Stockholm) to shareholders of record at the close of business on June 10, 2026.  Pursuant to the Company’s dividend policy, the variable dividend was calculated based on 100% of the Company’s normalized free cash flow during the first quarter of 2026, after deducting the fixed dividend paid, which exceeds the policy’s minimum threshold of 50%.
• On February 26, 2026, the Company renewed its normal course issuer bid (“NCIB”) program, pursuant to which it may repurchase for cancellation up to 12,086,020 common shares over a twelve‑month period.

Qualified Persons

The technical information relating to Fruta del Norte contained in this press release has been reviewed and approved by Terry Smith P.  Eng, Lundin Gold’s COO, who is a Qualified Person in accordance with the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.  The disclosure of exploration information contained in this press release was prepared 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.

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 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 through operational excellence and growth, while simultaneously providing economic and social benefits to impacted communities, fostering a healthy and safe workplace and minimizing the environmental impact.  Furthermore, Lundin Gold is focused on continued exploration on its extensive and highly prospective land package to identify and develop new resource opportunities to ensure long-term sustainability and growth for the Company and its stakeholders.