Lundin Mining Corporation

2017 Capital Expenditure Guidance

Capital expenditures, excluding capitalized interest, are expected to be $390 million, (prior guidance $405 million) as outlined below.

The Los Diques tailings project remains on schedule and the project’s capital cost forecast remains unchanged although the expected timing of certain payments have resulted in $15 million of expenditures expected in 2017 that will now be paid in 2018. In particular, due to extended mine life and ongoing exploration success, other sustaining capital expenditures at Candelaria are currently under review. It is expected that capital spending related to large mine mobile equipment and other sustaining capital investment will be increased as part of a rejuvenation program to reinstate capital investments that were deferred under cost constraint programs in 2015 and 2016. A further update will be provided with the second quarter results. Exploration spend remains unchanged at $65 million.

2017 Guidance $millions
Capitalized Stripping
Los Diques Tailings Dam
Other Sustaining
105
120
25
Candelaria (100% basis)
Eagle
Neves-Corvo
Zinkgruvan
250
10
50
40
Total Sustaining Capital
Eagle East
Zinkgruvan Expansion (1350)
350
35
5
Total Expansionary Capital 40
Total Capital Expenditures 390

Exploration

Candelaria Mine, Chile (Copper, Gold)

Nine rigs drilled 26,956 metres within the three existing underground mines and around the Candelaria open pit mine in an effort to rapidly expand Mineral Reserve and Mineral Resource estimates and to determine the potential extension of known ore bodies. Geophysics commenced in the south district in the first quarter to assist in the development of drilling targets for the remainder of the year.

Eagle Resource Exploration, USA (Nickel, Copper)

Eagle exploration continued into 2017 with four surface rigs. Drilling is focused on tracing the Eagle East conduit. A total of 4,079 surface metres were drilled in the first quarter of 2017, with drilling expected to continue throughout the year. In addition, a geophysical program is also being planned for the 2017 field season.

European Operations

Exploration planning sessions were held at both Zinkgruvan and Neves‐Corvo aimed at strategically expanding exploration efforts for both zinc and copper mineralization extensions. A significant ramp up in exploration activity is expected starting in the second quarter and continuing for the balance of the year and throughout 2018.

Peru (Copper)

Field work commenced on a copper/gold exploration project acquired in late 2016. Initial work includes geophysical surveys, geological mapping and surface rock and soil sampling, which is aimed at outlining potential drill targets.

Eastern Europe (Copper, Gold)

Project evaluation work is continuing on new copper and zinc‐lead opportunities in Eastern Europe. Prospecting permits for polymetallic mineralization were obtained in Romania in an area with a long history of mining activities. It is expected that field work will commence on several projects during the year.