FOR:  LUNDIN MINING CORPORATION

TSX SYMBOL:  LUN

DECEMBER 8, 2004 - 16:39 ET

Lundin Mining Closes Previously Announced Agreement to
Sell Zinkgruvan Silver Production to Silver Wheaton

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 8, 2004) - Lundin
Mining Corporation (TSX:LUN) (O-LIST STOCKHOLMBORSEN:LUMI) ("Lundin
Mining" or "the Company") is pleased to announce that it has closed its
previously announced agreement with Chap Mercantile Inc. (to be re-named
"Silver Wheaton") whereby Lundin Mining has agreed to sell all of its
silver production from the Zinkgruvan mine in Sweden to Silver Wheaton
in consideration for an upfront cash payment of US$50 million, 30
million Silver Wheaton shares, and 30 million whole share purchase
warrants, plus a per ounce payment at a price equal to the lesser of (a)
US$3.90 (subject to a consumer price adjustment after three years) and
(b) the then prevailing market price per ounce of silver. Each warrant
is exercisable at C$0.80 into one Silver Wheaton common share and
expires on August 5, 2009.

Lundin Mining has agreed to deliver a minimum of 40 million ounces of
silver to Silver Wheaton over a 25-year period. The Zinkgruvan zinc,
lead and silver mine is expected to produce approximately 2 million
ounces of silver per year in addition to 130 million pounds (59,000
metric tonnes) of zinc and 70 million pounds (32,000 metric tonnes) of
lead annually at low cash costs. If at the end of the 25-year period,
Lundin Mining has not delivered the agreed 40 million ounces, then it
has agreed to pay to Silver Wheaton US$1.00 per ounce of silver not
delivered.

Macquarie acted as financial advisor to Lundin Mining in connection with
this transaction.

Lundin Mining is a Canadian mining and exploration company with a
primary focus in Scandinavia. The main asset of the company is the
Zinkgruvan mine, located about 200 kilometers southwest of Stockholm,
Sweden. The mine has been producing zinc, lead and silver on a
continuous basis since 1857. Zinkgruvan has consistently ranked in the
lowest cost quartile among zinc mines in the world. Lundin Mining holds
approximately 37 percent of the shares of NAN, a mining and exploration
company listed on the Stockholm Stock Exchange under the ticker symbol
NAN. NAN's primary asset is the Storliden copper and zinc mine in the
Skellefte District of northern Sweden, which has been in production
since 2001. Lundin Mining also holds a large copper/gold exploration
project in the prolific Norrbotten Mining District in northern Sweden.

ON BEHALF OF THE BOARD

Edward F. Posey, President

This News Release contains forward looking statements which are subject
to a variety of risks and uncertainties which could cause actual events
or results to differ materially from those reflected in the forward
looking statements. The Company does not intend to update this
information and disclaims any legal liability to the contrary.

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