Lundin Mining Q4 and Full Year 2012 Production Results

TORONTO, ONTARIO–(Marketwire - Jan. 22, 2013) - Lundin Mining Corporation (TSX:LUN)(OMX:LUMI) (“Lundin Mining” or the “Company”) reports the following production results for the fourth quarter and full year 2012:

Paul Conibear, President and CEO commented, “We are pleased to achieve the high-end of our production guidance targets for 2012 at each of our operations. Zinkgruvan had a particularly successful year with new records set for production of zinc, lead and copper. Tenke also set new copper production records as Phase II expanded facilities came on line. All of our assets are very well positioned to deliver a solid performance again this year.”

Segmented production and guidance is as follows:

Operational Commentary

• Neves-Corvo: Total copper production exceeded the original guidance for the year, however overall grade of copper ore was lower than planned due to an exceptional quantity of lower grade but profitable “Out of Reserve” ore that was encountered and mined but was not part of the original mineral reserve estimate. Approximately 42% of the copper ore mined in 2012 was Out of Reserve. In the new copper mining zone of Lombador, 57% of the material mined was Out of Reserve. Overall for 2012, Out of Reserve material graded an average of 1.75% copper as compared to the Reserve material mined which graded 3.28% copper. Net benefits of mining and processing this Out of Reserve material include an extended mine life and overall long term higher aggregate revenues. Underground drilling will be increased significantly for 2013 to better define the extent of mineralization not currently in the reserve estimates and mine plans.
  
  Despite the lower than planned feed grades, Neves-Corvo copper plant performance was excellent with 88.2% recovery achieved. Ramp-up of the zinc plant continued in the quarter, with throughput approximately 75% higher than the prior quarter and record quarterly, and annual, zinc metal production was generated.

• Zinkgruvan: As expected, lower zinc and lead grades were realized in the fourth quarter, though the impact on metal production was partially mitigated by higher volumes processed than the prior two quarters and continued high recovery performance in the process plant. Zinc, copper and lead grades and plant recoveries met and in some cases were better than originally anticipated. Zinkgruvan finished the year with record production of zinc, lead and copper metal in concentrate.

• Aguablanca: Processing operations re-commenced in August, with full production achieved earlier than planned in the fourth quarter of 2012, resulting in higher than expected nickel and copper metal in concentrate production. Grades mined and plant recoveries achieved for both nickel and copper were slightly better than expected.

• Galmoy: Mining production from remnant ores exceeded expectations for the year. Mining ceased in the fourth quarter of 2012, though processing of stockpiled ore, by a third party processing facility, will continue into 2013. The mine closure plan has been approved by regulating authorities.

• Tenke: During 2012, Tenke achieved record mining and production rates facilitated by the staged commissioning of Phase II expansion facilities. The Phase II expansion is substantially complete, on schedule and on budget. By year end, the expanded facilities were operating near full Phase II design capacity and as reported by Freeport as Operator, overall fourth quarter production of 44,452 tonnes of copper cathode was 91% of the expanded annual design capacity of 195,000 tpa copper cathode. Freeport has provided 2013 metal sales guidance of 186,000 tonnes of copper cathode and 13,600 tonnes of cobalt (contained in cobalt hydroxide product).

Details of operating statistics by mine, by quarter and for the year follow in the attached table:

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 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo.

On Behalf of the Board,

Paul Conibear, 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.

FOR FURTHER INFORMATION PLEASE CONTACT:

Lundin Mining Corporation
Sophia Shane
Investor Relations North America
+1-604-689-7842

Lundin Mining Corporation
John Miniotis
Senior Business Analyst
+1-416-342-5565

Lundin Mining Corporation
Robert Eriksson
Investor Relations Sweden
+46 8 545 015 50