TORONTO, ONTARIO–(Marketwire - April 29, 2010) - A correction from source is issued with respect to the release issued earlier today at 9:30 ET. Various changes have been applied, and the corrected version follows.

Lundin Mining Corporation (“Lundin” or the “Company”) (TSX:LUN)(OMX:LUMI) today reported an unaudited net income of $38.0 million ($0.07 per share) for the first quarter of 2010, up from a loss of $8.6 million (loss of $0.02 per share) in the first quarter of 2009.

Mr. Phil Wright, President and CEO commented, “Net income improved markedly from the loss this time last year thanks to the doubling of metal prices and the inclusion of $17.2 million income from Tenke.

“As foreshadowed earlier this year, production for the quarter from our European business was below trend and consequently lower sales volumes and higher unit costs partially offset the gain from stronger metal prices. Measures have been taken to reduce the effect on the full year’s results of this quarter’s lower production and, with the exception of Neves-Corvo where industrial action makes it difficult to forecast, we expect to meet our 2010 production and cost targets.

“I remain very pleased with the performance of the European operations and, in particular, the way in which the operational teams have addressed the various challenges during the quarter,” Mr. Wright said.

Tenke produced at nameplate capacity for the quarter despite the rainy season, which hampers mining and milling operations, and earnings were ahead of expectations owing to the stronger metal prices.

At quarter-end, cash on hand was $98.0 million and net cash(1), after deducting all outstanding debt, was $10.2 million.

Highlights

• As expected, production for the quarter was below trend owing to a number of factors including: industrial action at Neves-Corvo; abnormal weather conditions in Europe hampering ore processing; and restrictions at Zinkgruvan owing to a blocked orepass.

Industrial action at Neves-Corvo is estimated to have reduced production by approximately 7,000 tonnes of copper in the quarter. Mitigating actions taken, or planned, should allow some or all of this lower production in the first quarter to be recovered. However, as notice has been received of further possible action in May 2010, and the impossibility of predicting future events, annual production guidance for Neves-Corvo has been lowered by 5,000 tonnes of copper in total.

Zinkgruvan was affected by a blocked orepass and weather related milling issues. Zinc production was down by approximately 3,000 tonnes as a result. It is expected that this will be recovered in the remaining three quarters of the year.

Aguablanca’s production of nickel was in-line with original expectations despite record high rainfall resulting in repeated flooding of the open pit restricting access to high-grade ore.

Production Summary

• Sales for the quarter were $141.7 million compared to sales of $123.4 million in the first quarter of 2009. Lower volume from continuing operations ($43.6 million) and the closure of Galmoy ($9.1 million) were offset by metal price improvements and price adjustments related to previous quarters’ sales ($70.2 million). Average prices in the first quarter of 2010 were around 100% higher than the same quarter in 2009. As foreshadowed in the guidance given for this quarter, closing inventories were higher than December 31, 2009 levels. The closing levels are considered ‘normal’.
• On February 16, 2010, underground mining employees at Neves-Corvo commenced a program of two-hour strikes at the beginning of each shift accounting for approximately 40% – 45% of effective production time, once transit times and meal breaks are taken into account. This action terminated on April 1, 2010 with a full return to work.

This issue remains unresolved despite the return to work. Subsequent to quarter end the Company has received notice of possible further industrial action (see news release dated April 20, 2010).

• Cash inflow from operations for the current quarter was $84.9 million, compared to outflows of $63.3 million for the corresponding period in 2009. This increase relates primarily to higher operating earnings in the current quarter; in addition, cash outflows in the first quarter of 2009 included payments to customers of $68.1 million for settlement of provisional sales.
•  The Tenke Fungurume mine produced approximately 28,800 tonnes of copper. The operation is continuing to address start-up and quality issues in the cobalt circuit and sustained targeted cobalt production rates are expected to be reached during 2010.

The principal balance resulting from the Excess Over-run Costs facility related to the Company’s proportionate share of Phase I development at March 31, 2010 was $215.7 million.

Financial Position and Financing

• Net cash(2) at March 31, 2010 was $10.2 million compared to a net debt position of $49.3 million at December 31, 2009. The increase in liquidity during the quarter was attributable to net cashflow from operations; $12 million sales proceeds from sale of investments; offset by a contribution to Tenke of $7.6 million.

Outlook

Measures have been taken in all operations to reduce the annual effect of below trend production in the first quarter. These measures have included, amongst others: bringing forward annual shutdowns for maintenance to the first quarter; treating out-of-sequence lower-grade material, while restrictions prevail, with the ability to access higher-grade sources for the remainder of the year; and increasing short-term capacity during the remainder of the year to make-up the first quarter’s shortfalls.

At this stage, production guidance is reaffirmed with the following exceptions or caveats:

• The cash cost per pound of copper at Neves-Corvo is expected to increase as a result of lower metal output and measures to increase production for the remainder of the year. Zinc recovery from the new RC circuit is exceeding expectations and guidance has increased by 3,000 tonnes.
• Nickel guidance at Aguablanca has been increased 5% to 7,900. The cash cost per pound of nickel is expected to increase as a result of the higher nickel price (treatment and refining charges will be higher due to smelter price participation payments) and allowance for additional waste removal to cover partial shortfall of waste from 2009.
• Alternatives are still being examined for the treatment of Galmoy residual ores once the remaining 23,000 tonnes of ore still due under a preliminary contract with an adjacent mine are delivered.
• An allowance for future industrial action has been made in the Neves-Corvo production outlook. It is an estimate only and will be refined as more clarity on the course of events at Neves-Corvo becomes available.

Revised guidance for 2010 is as follows:

1. Cash costs are dependent upon exchange rates, assumed as follows: revised guidance- €/US$: 1.40, previous guidance- €/US$: 1.42. Cash cost of nickel assumes the following nickel prices: revised guidance- $7.75/lb, previous guidance- $6.50/lb.
2. Studies continue on the feasibility of developing the Lombador zinc/copper deposit adjacent to the Neves-Corvo mine with work to date indicating that Lombador is likely to be developed. An internal assessment is presently being carried out on the accuracy of operating and capital cost estimates as well as conclusions of the study in order to assess what work remains to be done prior to final investment consideration. Broad details will be released once this assessment is complete. A preliminary target of 2013 has been set for commencement of full-scale operations from Lombador.
3. The Zinkgruvan copper project is on schedule and budget with initial production expected to commence during the second quarter of 2010.
4. Capital expenditure outlook for the year is unchanged with final expenditure expected to be between $190 and $250 million. This includes:
   • Sustaining capital in European operations of $90 million
   • New investment in European operations of $60 million
   • Investment in Tenke of $100 million. The Company estimates this could vary between $40 million and $100 million depending on development plans. Final decisions on capital investment levels are made by the operator.
5. Expenditure on exploration and resource acquisition is still expected to be around $20 million of which approximately $10.0 million will be spent on exploration drilling to delineate further resources at Neves-Corvo.
6. Inherent risks in the world economy remain large and unpredictable. In our view volatility will remain high in 2010 with an improving outlook thereafter.

Selected Quarterly Financial Information

(1) Operating earnings is a Non-GAAP measure defined as sales, less operating costs, accretion of asset retirement obligation (“ARO”) and other provisions, selling, general and administration costs and stock-based compensation.

(2) Net cash/debt is a Non-GAAP measure defined as available unrestricted cash less financial debt, including capital leases and other debt-related obligations. 

(3) Shareholders’ equity per share is a Non-GAAP measure defined as shareholders’ equity divided by total number of shares outstanding at end of period. 

(4) Equity ratio is a Non-GAAP measure defined as shareholders’ equity divided by total assets at the end of period. 

(5) Includes impairment from discontinued operations.

(6) Income (loss) per share is determined for each quarter. As a result of using different weighted average number of shares outstanding, the sum of the quarterly amounts may differ from the year-to-date amount.

The 2010 first quarter consolidated interim financial statements and management’s discussion and analysis are available on SEDAR (www.sedar.com) or the Company’s website (www.lundinmining.com).

About Lundin Mining

Lundin Mining Corporation is a diversified base metals mining company with operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a development project pipeline which includes expansion projects at its Zinkgruvan and Neves‐Corvo mines along with its equity stake in the world class Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo.

On Behalf of the Board,

Phil Wright, President and CEO

Forward Looking Statements

Certain of the statements made and information contained herein is “forward-looking information” within the meaning of the Ontario Securities Act. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company’s Business in the Company’s Annual Information Form and in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper, nickel, lead and zinc; that the Company can access financing, appropriate equipment and sufficient labour and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.

(1) Net cash is a Non-GAAP measure defined as available unrestricted cash less financial debt, including capital leases and other debt-related obligations.

(2) Net cash/debt is a Non-GAAP measure defined as available unrestricted cash less financial debt, including capital leases and other debt-related obligations.