Lundin Mining Corporation

Eagle Mine, U.S.A.

Eagle Mine

Summary Report

Nickel Copper Mine

The Eagle nickel and copper mine is located in the Upper Peninsula of Michigan, USA, in Michigamme Township, Marquette County. The property is on the watershed divide of the Yellow Dog River and Salmon Trout Rivers.

The closest community to the mine site is Big Bay, 24km from the property by road. Big Bay is an unincorporated community within Powell Township and has limited services. The closest full service community is Marquette, 53km by road from the property. Marquette provides a regional airport, rail and shipping facilities, and a full range of commercial services.

The Humboldt mill property, a former iron ore processing facility, occupying approximately 142 hectares, is located 61km west of Marquette, Michigan. The facility is located in the township of Humboldt, Marquette County, Michigan.

Road access to the mine property is by means of maintained loose surface and paved roads from the communities of Big Bay to the east, L'Anse to the west, and Marquette to the south. The Humboldt mill is located close to the main US Route 41. The route for trucking ore from the Eagle mine to the Humboldt mill is 105km long.

The Eagle deposit is a high-grade magmatic sulphide deposit containing nickel and copper mineralization and minor amounts of cobalt, precious and platinum group metals (PGMs). The economic minerals associated with this deposit are predominately pentlandite and chalcopyrite.

Three distinct types of sulphide mineralization occur at the Eagle deposit. They are described as disseminated, semi-massive and massive sulphide. Massive sulphide is generally over 90% pyrrhotite-pentlandite-chalcopyrite. Semi-massive, or matrix ore, is 30% or greater net textured sulphide. Disseminated mineralization is generally uneconomic. The semi-massive and massive sulphides occur in separate zones called the Massive Sulphide, Semi-massive East, and Semi-massive West zones.

Eagle is a relatively shallow underground mine with access gained via a surface ramp that serves as the route for waste, ore and backfill haulage. The mine employs transverse bench-and-fill stoping with mining in an up-dip primary secondary sequence. Backfilling is undertaken using cemented and uncemented rockfill. Two ventilation shafts are in place, with the downcast shaft also equipped for emergency egress. Ore from the mine is stored in a covered coarse ore stockpile facility prior to transport by road to the Humbodlt mill site.

From a further covered coarse ore storage facility, the ore is processed using a conventional crush, grind and differential flotation process to produce separate nickel and copper concentrates. Tailings from the plant are deposited sub-aqueously in the adjacent former Humboldt iron ore open pit.

Nickel and copper concentrates are stored in a covered concentrate building on site. A rail spur in to the site is used to transport the concentrate direct to smelter facilities within North America or to the ports of Quebec, Montreal or Vancouver for shipment to overseas smelters.

Current Mineral Reserves at Eagle are sufficient for a mine life of 8 years.

Both the mine and mill operate under a number of local, state and federal permits. First commercial concentrate production was achieved in the fourth quarter of 2014.

Please see Annual Information Form, Quarterly Operations Updates, Financial Statements and Technical Report for further information.

Quarterly Operations Update