Strong Quarterly Earnings and Continued Significant Shareholder Returns

Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) announced its financial and operational results for the second quarter ended June 30, 2026. All amounts are in U.S. dollars unless otherwise indicated. The Company delivered a strong second quarter, generating adjusted earnings¹ of $202 million, supported by consistent operating performance and strong margins at Fruta del Norte.

Gold production totaled 118,994 oz in the quarter, with gold sales of 110,385 oz at an average realized gold price¹ of $4,359 per oz, resulting in revenues of $478 million. Cash operating costs¹ and all‑in sustaining costs¹ were $1,016 per oz and $1,176 per oz sold, respectively, reflecting lower gold sales and higher sustaining capital expenditures¹ relative to the previous quarter.

The Company ended the quarter with a robust balance sheet, including cash and cash equivalents of $507 million. During the quarter, the Company generated free cash flow¹ of $96 million, returned $293 million to shareholders through dividends, and made annual government profit-sharing and income tax payments of $221 million.

Additionally, the Company completed the previously announced silver stream-for-equity transaction with LunR Royalties Corp. distributing 50,505,051 shares of LunR to shareholders as a dividend-in-kind with a value on distribution of $747 million. The Company has declared cash dividends of $1.08 per share payable in the third quarter of 2026.

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 and at FDN East, the mine-to-mill expansion study, and the largest exploration program in the Company’s history.

Jamie Beck, President and CEO, commented, “We delivered another solid quarter generating strong margins and substantial shareholder returns while continuing to advance our growth strategy. The quality of FDN and the strength of our operating teams were reflected in another quarter of disciplined cost performance and robust profitability.

Our exploration programs consistently demonstrate the quality and size potential at FDN. Subsequent to quarter end, we announced the discovery of two new porphyry centres, bringing the total to seven and reported further exceptional drill results across FDNS, FDN East and FDN. In parallel, we advanced development at FDNS and commenced development towards FDN East, positioning both deposits for continued resource growth, conversion and potential future production. These successes reinforce our confidence that we have multiple avenues for long-term value creation across the broader Fruta del Norte mineralized system. While still early days, advancing Sandia towards a maiden mineral resource by early next year represents a key milestone as we progress towards demonstrating the true potential of what is emerging as a world-class gold and copper mineral district.

During the quarter, we returned significant value to shareholders through both cash dividends and the distribution of LunR shares as a dividend-in-kind. Looking ahead, we intend to use our cash resources to enhance shareholder returns by commencing purchases under our normal course issuer bid in the near term, reflecting our confidence in the long-term value of the business.”

OPERATING AND FINANCIAL RESULTS SUMMARY

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

SECOND QUARTER HIGHLIGHTS

Financial Results

• Gold sales totaled 110,385 oz, consisting of 79,444 oz in concentrate and 30,941 oz as doré, resulting in gross revenues of $481 million at an average realized gold price of $4,359 per oz. Average realized gold price¹ was negatively impacted by declining gold prices on provisionally priced gold sales which were below fair value estimates as at March 31, 2026. Net of treatment and refining charges, revenues for the quarter were $478 million.
• Average realized gold price^[3] includes $4,525 per oz of gross price received and a negative impact of $166 per ounce from adjustments to provisionally priced sales.
• Cash operating costs¹ and AISC¹ were $1,016 and $1,176 per oz of gold sold, respectively. These figures reflect lower gold oz sold, as production was weighted toward the latter part of the quarter, together with higher sustaining capital expenditures compared to the previous quarter in the case of AISC¹.
• The Company generated cash from operating activities of $125 million and free cash flow¹ of $96 million, or $0.40 per share, resulting in a cash balance of $507 million at June 30, 2026.  The decrease relative to the second quarter of 2025 primarily reflects the $221 million annual payment of statutory profit sharing and income taxes.  The 2026 payment, based on 2025 taxable income, was substantially greater than the 2025 payment of $95 million which was based on 2024 results.  Notwithstanding this, during the 2026 Period, cash generated from operating activities increased to $495 million compared to $449 million during the 2025 Period.
• Earnings before interest, taxes, depreciation, and amortization¹ (“EBITDA”) and adjusted EBITDA¹ were $399 million and $347 million, respectively with the difference resulting from a fair value loss recognized upon distribution of shares of LunR as a dividend-in kind offset by derivative gains recognized in the quarter.
• Net income was $220 million including the fair value loss noted above, a derivative gain of $127 million, and net of corporate, exploration, finance costs, and associated taxes on earnings.  Adjusted earnings¹, which exclude the fair value loss, derivative gain, and related taxes, were $202 million, or $0.84 per share.

Operational Results

• The mine produced 485,296 tonnes of ore during the quarter, with mill throughput supported by the planned use of stockpiled material to optimize processing rates and overall performance.
• The mill processed 500,143 tonnes of ore at an average throughput rate of 5,496 tpd and average mill head grade of 8.3 g/t. Gold recoveries averaged 89.1% due to variability in ore characteristics and plant operating conditions.
• Gold production was 118,994 oz which was comprised of 79,208 oz in concentrate and 39,786 oz as doré.

Outlook

The Company remains on track to meet its 2026 production guidance of 475,000 to 525,000 oz and AISC^[4] guidance of $1,110 to $1,170 per oz sold, with first half production of 238,736 oz representing approximately 48% of the guidance midpoint. Consistent with the Company’s expectations of a back-end weighted year, production and sales are anticipated to be stronger in the second half of 2026 as mining advances into higher grade areas of the deposit. The improved access to higher grade stopes achieved late in the second quarter is expected to support continued strong operating performance into the second half of the year. 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.

At FDNS, the Company is advancing underground development concurrent with finalizing the integrated mine plan and mill expansion. Having largely frozen the scope of the process plant expansion during the quarter, work is now focused on developing a detailed project schedule and cost estimate. The Company plans to combine the mine and plant expansions into a single, integrated investment decision later in 2026, which will consider optimized mining rates at both FDN and FDNS as well as enhanced processing capacity. Further details on spending towards the integrated expansion will be provided as the opportunity is advanced and finalized.

2026 is set to be a landmark year for Lundin Gold, featuring 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 is expected to target high-grade epithermal gold deposits and advance exploration of the promising copper-gold porphyry corridor, building on the strong results achieved to date. Primary among this investment is the Sandia copper-gold porphyry for which the Company is targeting a maiden Mineral Resource estimate  in early 2027.

In addition to near-mine efforts, the regional program focuses 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 anticipated in 2026 to support the updating of Mineral Reserve and Resource estimates. The total investment in the 2026 exploration program is estimated at $85 million, underscoring the Company’s commitment to 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 June 30, 2026 the Company is in a strong financial position.

As at June 30, 2026, the Company had cash and cash equivalents of $507 million and a working capital balance of $445 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 2026 Period was primarily due to cash generated from operating activities of $495 million offset by dividends paid of $571 million and capital expenditures of $46.2 million.

Capital Expenditures

Sustaining Capital Expenditures¹

• Sustaining capital expenditures¹ during the second quarter of 2026 totaled $13.6 million.
• Capital spending during the quarter was primarily focused on completion of the fifth tailings dam raise and process plant improvement projects.
• Other projects that were completed or advanced included infrastructure enhancements such as the services building as well as mobile equipment overhauls and replacements.

Non-Sustaining Capital Expenditures¹

• Non-sustaining capital expenditures¹ during the second quarter of 2026 totaled $15.5 million.
• Following the declaration of inaugural Mineral Reserves at FDNS in the first quarter, the Company commenced underground development from the South Portal towards FDNS, taking the first round in April. Approximately 116 metres of development was completed advancing from the South Portal and another 252 metres from existing access on the 1170 Level from FDN for infrastructure, additional exploration platforms and on-vein development for geological mapping.
• During the quarter, the scope of the process plant expansion was largely frozen, with work now focused on developing a detailed project schedule and cost estimate. Mine planning also advanced, integrating FDNS into the life-of-mine plan. The Company continues to expect to bring the mine planning and mill expansion together into a single, integrated investment decision later in 2026.
• The conversion drilling program continues to focus on FDNS where approximately 8,287 metres across 70 holes were completed with four rigs currently turning.
  • A complete table of the conversion drilling results received to date can be found in Lundin Gold’s press release dated July 27, 2026.

Health and Safety

During the second quarter there were no Lost Time Incidents and two Medical Aid Incidents. The Total Recordable Incident Rate across the Company was 0.19 per 200,000 hours worked for the quarter and 0.29 for the first six months of 2026.

Community

In the second quarter of 2026, Lundin Gold’s sponsored community projects continued to advance. The second phase of the Company’s community mental health and well-being program progressed as planned and is expected to continue until December 2026, with nearly 6,000 psychological consultations provided to local residents since the phase began in August 2025. The program’s sports academy component also continued to perform well, with youth participation growing across a range of extracurricular activities, including dance, basketball, soccer, boxing, English, music, and newer offerings such as culture, practical STEM (science, technology, engineering, and mathematics) games, and art.

The School Meals program at the local Los Encuentros school continued to operate at full capacity, providing nutritious meals to students throughout the school year, with food supplies integrated from local farmers.

The Company continued to collaborate with local governments on community infrastructure and well-being initiatives, including road maintenance and asphalting, electrification and public lighting, school maintenance, urban renewal in the Los Encuentros parish, a livestock fairground, and solid waste management. Ten community infrastructure projects remained ongoing by quarter-end, with local government counterparts contributing an average of 45% in co-financing — reflecting substantial shared investment in these initiatives.

Lundin Gold also continued to foster engagement with local communities through participatory dialogue roundtables held during the quarter, covering a range of topics. Key outcomes included commitments to provide training on bidding and tender processes, reinforce the use of formal recruitment channels for local employment opportunities, and fund the expansion of the Los Encuentros sewer system, among others.

During the quarter, the former Grievance Mechanism was relaunched as the “Your Voice Matters” community dialogue mechanism through a participatory update process guided by the UN Guiding Principles on Business and Human Rights, aimed at strengthening its accessibility and effectiveness. Information sessions were held in Ring 1 communities to promote awareness of and engagement with the updated mechanism.

In partnership with the Lundin Foundation, the Company continued to support local businesses, including those participating in the Foundation’s supplier development program, which provide products and services to FDN while advancing their own growth strategies. A new initiative to develop a local industrial laundry provider for FDN’s bed and bath linens began during the quarter, and the Lundin Foundation continued to support small-scale farmers and Shuar economic opportunities through the Somos Semilla program.

The Company also continued to engage with local and Indigenous communities in the areas near its exploration programs (Near Mine and Regional) through field visits, informational meetings, social events, and follow-up on specific community investments.

EXPLORATION

Near-Mine Exploration Program

During the second quarter of 2026, the Company completed a total of 28,789 metres across 75 holes from surface and underground.

The underground near-mine drilling program focused on the FDNS deposit, which remains open for expansion in the main extensions and where one underground rig is currently turning. At FDN the exploration program has been targeting the upper extension of the deposit. The underground drilling program also continues to advance at FDN East where two rigs are currently exploring extension at depth. As at the date of this press release, three underground rigs are active in the near-mine drilling program.

The surface near-mine drilling program advanced on the copper-gold porphyry corridor, which primarily focused on the expansion and delineation of the Sandia deposit while also exploring the Sandia Northeast target. Furthermore, surface drilling also advanced at the Bonza Sur gold epithermal deposit and tested distinct targets within the near-mine concession. As at the date of this press release, 11 surface rigs are drilling with four at Sandia, one at Sandia Northeast, three at Bonza Sur, and three targeting new opportunities.

Near-mine exploration results received to date can be found in Lundin Gold’s press releases dated July 21, 2026 and July 27, 2026.

Regional Exploration Program

The Company advanced its multi-year regional exploration program during the second 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.

Activity during the quarter focused on two districts. At the Gamora District, located approximately 20 kilometres north of FDN, one surface rig has been mobilized ahead of the regional drilling program’s planned commencement during the third quarter, with approximately 8,000 metres of drilling planned for 2026. To the south, at the Guacamayo District, located 17 kilometres south of FDN, geological mapping followed by soil and rock sampling progressed across distinct parts of the district.

CORPORATE

• On May 28, 2026, the Company closed the silver stream‑for‑equity transaction with LunR, pursuant to which LunR acquired a life‑of‑mine silver stream on Fruta del Norte in exchange for 50,505,051 common shares of LunR, all of which were subsequently distributed by Lundin Gold to shareholders as a special dividend‑in‑kind paid on June 11, 2026, leaving the Company with no ownership interest in LunR.
• The Company paid a quarterly dividend of $1.21 per share, comprised of the fixed dividend of $0.30 per share and variable dividend of $0.91 per share, on June 25, 2026 (June 30, 2026 for shares trading on Nasdaq Stockholm) for a total of $293 million.
• With the release of its second quarter 2026 results, the Company has declared cash dividends totaling $1.08 per share, comprised of the fixed dividend of $0.30 per share and variable dividend of $0.78 per share, payable on September 25, 2026 (September 30, 2026 for shares trading on Nasdaq Stockholm) to shareholders of record at the close of business on September 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 second quarter of 2026, after deducting the fixed dividend paid, which exceeds the policy’s minimum threshold of 50%.
• At the Company’s annual shareholders’ meeting on May 8, 2026, Ms. Erin Workman, a nominee of Newmont Corporation, was elected as a director. Ms. Angelina Mehta did not stand for re-election, and the size of the Board remained at nine directors.

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.