Lundin Gold Announces US$400 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 25, 2018) - Lundin Gold Inc. ("Lundin Gold" or the "Company") (TSX:LUG)(OMX:LUG) is pleased to announce a US$400 million equity private placement financing (the "Private Placement"). The Private Placement, coupled with the recent lenders' commitments for a senior debt facility, substantially completes the funding requirements, based on current estimates, for the Fruta del Norte gold project in Ecuador ("Fruta del Norte" or the "Project").

Subscribers to the Private Placement include Newcrest Mining Limited ("Newcrest"), Orion Mine Finance Group ("Orion"), and Zebra Holdings and Investments S.à.r.l. and Lorito Holdings S.à.r.l. (the "Lundin Family Trusts") at a weighted average subscription price of CAD$5.44 per common share. This is equivalent to a 13% premium to the February 23, 2018 closing price of CAD$4.81. The Company will be issuing an aggregate of 93,497,140 common shares pursuant to the Private Placement, which represents 78.1% of its current issued and outstanding shares.

Highlights

• Newcrest and the Lundin Family Trusts will invest US$250 and US$50 million, respectively, at a price of CAD$5.50 (US$4.33 at a CAD/USD foreign exchange of 1.27) per common share;
• Orion will invest US$100 million at a price of CAD$5.25 (US$4.13) per common share;
• Proceeds from the Private Placement will fund the development of Fruta del Norte;
• Newcrest will have the right to appoint two members and Orion will have the right to appoint one member to Lundin Gold's board of directors, subject to certain ownership thresholds being maintained;
• Upon closing of the Private Placement, Newcrest will own 27.1% of Lundin Gold's outstanding shares, the Lundin Family Trusts will own 22.3% and Orion will own 11.4%;
• Newcrest has been granted certain investment rights customary for a strategic investor, including anti-dilution rights allowing Newcrest to maintain their pro rata ownership and the right to assign three staff members to the Project so long as their investment does not fall below certain thresholds. Orion has also been granted certain anti-dilution rights to maintain their pro rata ownership; and
• Newcrest will be subject to certain standstill restrictions.

"Newcrest has extensive experience building gold mines and bringing them into production. As our strategic partner, their knowledge and expertise will be valuable as we develop Fruta del Norte into a large, high-grade gold mine," said Ron Hochstein, President and CEO of Lundin Gold. "With the support of Newcrest, Orion, the Lundin Family Trusts, and the recently announced senior debt facility, our team can now focus on driving the development of this Project to its goal of first production by the end of 2019, on schedule and on budget."