Lundin Mining Corporation

Reserves & Resources



Notes on Mineral Resource and Reserve Table

Mineral Resources and Reserves are shown on a 100 percent basis for each mine. The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Mineral Reserves. All estimates, with the exception of Tenke Fungurume, are prepared as at June 30, 2016. The Tenke Fungurume estimate is dated December 31, 2015.

Estimates for all majority owned operations are prepared by or under the supervision of a Qualified Person as defined in National Instrument 43-101, or have been audited by independent Qualified Persons on behalf of Lundin Mining. Tenke Proven and Probable Mineral Reserves are estimated by the operator Freeport-McMoRan Copper & Gold Inc. ("Freeport"), and are prepared to SEC standards and are reviewed by Lundin Mining's independent Qualified Persons.

Except as noted below, Mineral Reserves have been calculated using metal prices of US$2.75/lb copper, US$1.00/lb zinc, US$1.00/lb lead, US$8.50/lb nickel, US1,000/oz gold and exchange rates of EUR/US$ 1.25, US$/SEK 7.00 and Chilean Peso/US$ 550.

Candelaria and Ojos

Open pit Mineral Resources are reported within a conceptual pit shell based on metal prices of US$3.16/lb copper and US$1,000/oz gold and are reported at a cut-off grade of 0.2% copper. Underground Mineral Resources are reported at a cut-off grade of 0.6% copper. Mineral Reserves for the open pit and underground for the Candelaria property are reported at cut-off grades of 0.28% and 0.64% copper, respectively. Underground Mineral Reserves for the Ojos del Salado property (Santos and Alcaparrosa mines) are reported at cut-off grades of 0.73% and 0.66% copper, respectively. Mineral Resources and Reserves for Candelaria and Ojos del Salado were estimated by mine technical staff supervised by Qualified Persons Patricio Calderón, Superintendent Resource Estimation, and Erick Lagos, Manager Technical Services.

Neves-Corvo

The Mineral Resources are reported above cut-off grades of 1.0% for copper and 3.0% for zinc. The copper and zinc Mineral Reserves have been calculated using variable Net Smelter Return (NSR) values based on area and mining method. The NSR is calculated on a recovered payable basis taking in to account copper, lead, zinc and silver grades, metallurgical recoveries, prices and realization costs. The copper Mineral Reserves are reported above a site average cut‐off grade equivalent to 1.3%. For zinc Mineral Reserves an average cut‐off grade equivalent to 5.2% is used. Mineral Reserves and Resources for Neves-Corvo were estimated by the mine's geology and mine engineering departments under the guidance of Nelson Pacheco, Chief Geologist and Fernando Cartaxo, Chief Mine Planning Engineer. Qualified Persons are Nelson Pacheco and Antonio Salvador, Group Mining Engineer, Lundin Mining.

Semblana

The Mineral Resources are reported above a cut-off grade of 1.0% copper. The Mineral Resource estimate was prepared by Graham Greenway, Group Resource Geologist, Lundin Mining.

Zinkgruvan

The zinc Mineral Resources and Reserves are reported above a site average cut-off grade of 3.9% zinc equivalent. The copper Mineral Resources and Reserves are reported above cut-off grades of 1.0% and 1.5% respectively. The zinc Mineral Reserves have been calculated using variable NSR values based on area and mining method. The NSR is calculated on a recovered payable basis taking in to account copper, lead, zinc and silver grades, metallurgical recoveries, prices and realization costs. The Zinkgruvan Mineral Resource and Reserve estimates are prepared by the mine's geology and mine engineering department under the guidance of Anja Hagerud, Resource Manager, employed by Zinkgruvan mine. Qualified Persons are Graham Greenway and Antonio Salvador.

Eagle and Eagle East

The Eagle and Eagle East Mineral Resources and Reserves are reported above a fixed NSR cut-off of US$142/t. The NSR is calculated on a recovered payable basis taking in to account nickel, copper, cobalt, gold and PGM grades, metallurgical recoveries, prices and realization costs. The Eagle Mineral Resource and Reserve estimates are prepared by the mine's geology and mine engineering department under the guidance of Robert Mahin, Chief Geologist and Colin Connors, Eagle East Project Mining Lead, respectively, both of whom are employees of Eagle mine. The Eagle East Mineral Resource estimate was prepared by Graham Greenway, Group Resource Geologist, Lundin Mining. The Eagle and Eagle East Mineral Resource and the Eagle Mineral Reserve estimates were audited by Roscoe Postle Associates Inc. Qualified Persons are David Rennie, P.Eng., Associate Principal Geologist and Normand Lecuyer, P.Eng., Principal Mining Engineer, respectively, both of Roscoe Postle Associates Inc.

Tenke Fungurume

The Mineral Resources are reported above a cut-off of 1.3% copper equivalent and a cobalt to copper factor of 4.0 without assigning economic probability. The 2015 Mineral Reserves are based on smoothed pit designs for Measured and Indicated Mineral Resources using metal prices of US$2.00/lb copper and US$10.00/lb cobalt which result in a cut-off grade of approximately 1.37% copper equivalent. The Mineral Resource (not reported by Tenke operator Freeport) and Reserve estimates (reported under United States SEC guidelines) for Tenke have been prepared by Freeport staff and reviewed by independent consultants and Qualified Persons John Nilsson, P.Eng. of Nilsson Mine Services Ltd and Ron Simpson P.Geo. of GeoSim Services Inc., on behalf of Lundin Mining.