Lundin Mining Announces Intention to Make All Cash Offer to Acquire Nevsun Resources Ltd. - Seite 2

Potential for Downward Share Price Impact if Offer is Not Accepted. The Offer represents a significant premium to the market price of Nevsun Shares prior to both our first offer to Nevsun and following the public announcement of Lundin Mining’s prior proposal to acquire Nevsun. If the Offer is not successful and no competing transaction is made, Lundin Mining believes it is likely the trading price of Nevsun Shares will decline to significantly lower levels.

Intention to Make an Offer

Lundin Mining intends to commence a formal take-over bid circular in accordance with applicable Canadian securities laws on or about July 27, 2018.

Readers are cautioned that Lundin Mining may determine not to make the Offer if Nevsun implements or attempts to implement defensive tactics in relation to the Offer, or if Lundin Mining uncovers or otherwise identifies information suggesting that the business, affairs, prospects or assets of Nevsun have been materially impaired or if Nevsun determines to engage with Lundin Mining to negotiate the terms of a combination transaction and Nevsun and Lundin Mining determine to undertake that transaction utilizing a structure other than a take-over bid such as a plan of arrangement. Accordingly, there can be no assurance that the Offer will be made or that the final terms of the Offer will be as set out in this news release.

The Offer will be undertaken in accordance with National Instrument 62-104 – Take-Over Bids and Issuer Bids and will be subject to a number of customary conditions, including: (i) there being deposited under the Offer, and not withdrawn, at least 66 2/3% of the outstanding Shares (calculated on a fully diluted basis), excluding Shares held by Lundin Mining, if any; (ii) receipt of all governmental, regulatory and third party approvals that Lundin Mining considers necessary or desirable in connection with the Offer; (iii) no material adverse change having occurred in the business, affairs, prospects or assets of Nevsun; and (iv) the statutory minimum tender condition of 50% (which cannot be waived).

TD Securities Inc. and GMP Securities Inc. are acting as financial advisors to Lundin Mining and Cassels Brock & Blackwell LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP are acting as Lundin Mining’s legal advisors in connection with the Offer.

About Lundin Mining

Lundin Mining is a diversified Canadian base metals mining company with operations in Chile, the United States of America, Portugal, and Sweden, primarily producing copper, nickel and zinc. In addition, Lundin Mining holds an indirect 24% equity stake in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland.