FOR:  LUNDIN MINING CORPORATION

TSX SYMBOL:  LUN

SEPTEMBER 1, 2004 - 13:10 ET

Lundin Mining: Nan Initiates new Exploration Drill
Program in Skellefte District

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 1, 2004) - (LUN
- TSX, LUMI - Nya Marknaden) Lundin Mining Corporation ("Lundin
Mining") reports that North Atlantic Natural Resources AB ("NAN")
announced today that exploration drilling has commenced in the
Skellefte district of northern Sweden. Lundin Mining owns 37% of
the outstanding shares of NAN, a Swedish public company trading
on the "O-List" of the Stockholm Stock Exchange.

Three high priority targets have been chosen for testing in the
coming months, including the Lappvattnet copper-nickel PGM
prospect, the Svartliden copper prospect, and zinc-copper targets
located near NANs' producing Storliden Mine.

The Lappvattnet prospect is a copper-nickel deposit located
within a mineralized trend known as the "Nickel Belt" located
south of the Skellefte district in Vasterbotten, northern Sweden
(see enclosed map). Several similar nickel-copper prospects exist
along this trend where past drilling by Swedish government
authorities has confirmed mineralization of grades which are
considered potentially economic at current nickel and copper
prices. The Lappvattnet deposit has an Indicated Resource of 1.1
million tonnes grading 1.0% nickel (see NAN news release dated
April 11, 2003).

The results of geologic compilation and geophysical surveys in
the Lappvattnet area by NAN in recent months have identified
drill targets similar to the Lappvattnet deposit with potential
for increasing the existing resource base extending along the
same trend for more than 10 km. Mineralization consists sulfides
of nickel and copper in narrow, sub-vertical veins hosted in
basic volcanics and metamorphosed sediments. Drilling is expected
to commence immediately with the first drill holes designed to
investigate the extension to depth of the known mineralization in
the vicintiy of the Lappvattent deposit.

The Svartliden copper prospect is located in the northern part of
the Skellefte district and consists of three separate copper
prospects where historical reports indicate copper mineralization
grading from 1% to 2% copper exists in disseminated volcanic
rocks distributed sporadically over an area of approximately 3
square kilometers (see NAN annual report 1998). Geophysical
surveying by NAN has identified a number of drill targets
indicative of copper sulphide mineralization. The current drill
program is designed to test the nature and extent of the source
of the geophysical anomalies and determine if economic quantities
of copper mineralization exist.

In the Storliden Mine area NAN has identified several nearby
target areas which are considered favorable for hosting another
zinc-copper massive sulfide deposit. Among several targets within
the surrounding Storliden area, two of current interest are
located directly to the northwest of the Storliden Mine and to
the southeast of the Storliden Mine.

To the northwest of the Storliden Mine the best drill hole to
date (see NAN annual report 2003) encountered 5.2 meters of 3.3%
zinc and 0.8% copper. To the southeast, a single drill hole
located 500 meters from the Storliden deposit intercepted 5
meters grading 1.62% zinc at a depth of 228.5 meters. A
systematic drill program is anticipated which will utilize the
added exploration capability NAN has recently acquired consisting
of surveying each drill hole with a down-hole electromagnetic
prospecting system. This new system is designed to search for
conductive Storliden-type mineralization for a horizontal radius
of 100 meters from the drill hole as it penetrates vertically
into the earth. Drilling will commence as soon as the current
drill contracting company can provide NAN with a drill machine
capable of penetrating depths in excess of 300 meters - expected
within the next 30 days.

The professional geologist in charge of exploration for NAN in
the Skellefte district is Mr. Alain Chevalier who is a Qualified
Person under the auspices of the Swedish Mining Association. Mr.
Chevalier has reviewed and approved the technical contents of
this news release.

Lundin Mining is a Canadian mining and exploration company with a
primary focus in Scandinavia. The company recently completed a
change of name - from South Atlantic Ventures Ltd. to Lundin
Mining Corporation. The main asset of the company is the
Zinkgruvan mine, located about 200 kilometres southwest of
Stockholm, Sweden. The mine has been producing zinc, lead and
silver on a continuous basis since 1857. Current production
amounts to about 64,000 tonnes of zinc, 32,000 tonnes of lead and
1.8 million ounces of silver per year. Lundin Mining holds
approximately 37 percent of the shares of North Atlantic Natural
Resources AB (NAN), a mining and exploration company listed on
the Stockholm Stock Exchange under the ticker symbol NAN. North
Atlantic'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

To the view the map for Lundin Mining please follow the link
below:

http://www2.cdn-news.com/database/fax/2000/lundin1.pdf

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