Lundin Mining Corporation

Reserves & Resources



Notes on Mineral Resource and Mineral Reserve Table

Mineral Resources and Mineral Reserve estimates 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 are prepared as at June 30, 2017.

Estimates for all 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.

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$8.00/lb nickel, US$1,000/oz gold and exchange rates of EUR/US$ 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 0.6% copper, respectively. Underground Mineral Reserves for the Ojos del Salado property (Santos and Alcaparrosa mines) are reported at cut-off grades of 0.63% and 0.66% copper, respectively. Mineral Resources and Mineral Reserves for Candelaria and Ojos del Salado were estimated by mine technical staff at Candelaria and Ojos, respectively. Patricio Calderón, Superintendent Resource Estimation, Yerko Peralta, Open Pit Mine Engineer and Cristian Erazo, Underground Mine Engineer, each of whom is a Registered Member, Chilean Mining Commission, employed by the Candelaria mining complex and a Qualified Person as defined under NI 43-101, supervised the preparation of the Mineral Resource, open pit Mineral Reserve and underground Mineral Reserve estimates respectively, and the scientific and technical information on Candelaria contained in this news release.

For further information, refer to the Technical Report entitled Technical Report for the Candelaria Copper Mining Complex, Atacama Province, Region III, Chile dated January 17, 2017.

Neves-Corvo and Semblana

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 5.5% is used. Mineral Reserves and Mineral Resources for Neves-Corvo were estimated by the mine geology and mine engineering departments at Neves-Corvo under the guidance of David Nicholls, Technical Services Manager, Nelson Pacheco, Chief Geologist, and Fernando Cartaxo, Chief Mine Planning Engineer, each of whom is employed by the Neves-Corvo mine. Nelson Pacheco EurGeol, prepared the Neves Corvo Mineral Resource estimate and Antonio Salvador, CEng MIMMM, Group Mining Engineer, Lundin Mining, reviewed and approved the Mineral Reserve estimate, and the scientific and technical information for Neves-Corvo contained in this news release. Both are Qualified Persons as defined under NI 43-101.

The Mineral Resources at Semblana are reported above a cut-off grade of 1.0% copper. The Mineral Resource estimate contained in this news release was prepared by Graham Greenway, Pr.Sci.Nat., Group Resource Geologist, Lundin Mining, who is a Qualified Person as defined under NI 43-101.

For further information, refer to the Technical Report entitled NI 43-101 Technical Report for the Neves-Corvo Mine, Portugal dated June 23, 2017.

Zinkgruvan

The zinc Mineral Resources and Mineral Reserves are reported above a site average cut-off grade of 3.7% 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 Mineral Reserve estimates are prepared by the mine's geology and mine engineering department under the guidance of Anja Hagerud, Resource Manager, and Jan Kläre, Mine Manager, both employed by Zinkgruvan mine. Graham Greenway, Pr.Sci.Nat., Group Resource Geologist, Lundin Mining and David Allison, CEng MIMMM, Group Mining Engineer, Lundin Mining, each of whom is a Qualified Person as defined under NI 43-101, reviewed and approved the Mineral Reserves and Mineral Resource estimates and the scientific and technical information for Zinkgruvan contained in this news release.

For further information, refer to the Technical Report entitled NI 43-101 Technical Report for the Zinkgruvan Mine, Central Sweden dated January 18, 2013.

Eagle and Eagle East

The Eagle Mineral Resources and Mineral Reserves are reported above a fixed NSR cut-off of US$116/t. The Eagle East Mineral Resources and Reserves are reported above a fixed NSR cut-offs of US$142/t and US$160/t respectively. 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 Mineral Reserve estimates are prepared by the mine's geology and mine engineering department under the guidance of Robert Mahin, CPG, Chief Geologist and Josh Lam, Senior Mine Engineer, both of whom are employees of the Eagle mine. The Eagle East Mineral Resource estimate was prepared by Graham Greenway, Pr.Sci.Nat., Group Resource Geologist, Lundin Mining. Robert Mahin prepared the Eagle Mineral Resource estimate and reviewed and approved the Eagle East Mineral Resource estimate and David Allison, CEng MIMMM, Group Mining Engineer, Lundin Mining, reviewed and approved the Eagle and Eagle East Mineral Reserve estimates and the scientific and technical information on Eagle and Eagle East contained in this news release. Both are Qualified Person as defined under NI 43-101.

For further information, refer to the Technical Report entitled Technical Report on the Eagle Mine, Michigan, U.S.A. dated April 26, 2017.