Reserves and Resources

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Notes on Mineral Resource and Mineral Reserve Table

Mineral Resources and Mineral Reserve estimates are shown on a 100% basis for each mine. The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Mineral Reserves. All estimates are prepared as at June 30, 2018.

Estimates for all operations are prepared by or under the supervision of a Qualified Person as defined in National Instrument 43-101, or have been audited by independent Qualified Persons on behalf of Lundin Mining.

Mineral Reserves have been calculated using metal prices of US$2.75/lb copper, US$1.00/lb zinc, US$1.00/lb lead, US$8.00/lb nickel, US$1,000/oz gold and exchange rates of EUR/US$ 1.25, US$/SEK 7.00 and Chilean Peso/US$ 550.

Candelaria and Ojos

Candelaria open pit Mineral Resource estimates are reported within a conceptual pit shell based on metal prices of US$3.16/lb copper and US$1,000/oz gold and are estimated at a cut-off grade of 0.15% copper. La Española open pit Mineral Resource estimates are reported within a conceptual pit shell based on metal prices of US$3.16/lb copper and US$1,000/oz gold and are estimated at a cut-off grade of 0.20% copper. Underground Mineral Resources are estimated at a cut-off grade of 0.55% copper.  Mineral Reserves for the Candelaria open pit, Española open pit and underground for the Candelaria property are estimated at cut-off grades of 0.17%, 0.21% and 0.57% copper, respectively. Underground Mineral Reserves for the Ojos del Salado property (Santos and Alcaparrosa mines) are estimated at cut-off grades of 0.59% and 0.64% copper, respectively. Patricio Calderón, Superintendent Resource Estimation, Patricio Vega, Open Pit Mine Engineer and Cristian Erazo, Underground Mine Engineer, each of whom is a Registered Member, Chilean Mining Commission, employed by the Candelaria mining complex and is a Qualified Person as defined under NI 43-101, supervised the preparation of and verified the Mineral Resource estimate, open pit Mineral Reserve and underground Mineral Reserve estimates respectively, and the scientific and technical information on Candelaria contained in this news release.

For further information, refer to the Technical Report entitled Technical Report for the Candelaria Copper Mining Complex, Atacama Province, Region III, Chile dated November 30, 2017.

Neves-Corvo and Semblana

The Mineral Resources are estimated above cut-off grades of 1.0% for copper and 3.0% for zinc. The copper and zinc Mineral Reserve estimates have been calculated using variable Net Smelter Return (NSR) values based on area and mining method.  The NSR is calculated on a recovered payable basis taking in to account copper, lead, zinc and silver grades, metallurgical recoveries, prices and realization costs. The copper Mineral Reserves are estimated above a site average cut‐off of EUR 39/t (grade equivalent to 1.3% copper). For zinc Mineral Reserve estimates a site average cut‐off of EUR 47/t (grade equivalent to 5.5% zinc) is used.  Mineral Reserves and Mineral Resources for Neves-Corvo were estimated by the mine geology and mine engineering departments at Neves-Corvo under the guidance of Nelson Pacheco, EurGeol, Chief Geologist, and Fernando Cartaxo, Chief Mine Planning Engineer, each of whom is employed by the Neves-Corvo mine. Nelson Pacheco EurGeol, prepared the Neves-Corvo Mineral Resource estimate and Antonio Salvador, CEng MIMMM, Group Mining Engineer, Lundin Mining, reviewed and verified the Mineral Reserve estimate and the scientific and technical information for Neves-Corvo contained in this news release. Both Messrs. Pacheco and Salvador are Qualified Persons as defined under NI 43-101.

The Mineral Resources at Semblana are estimated above a cut-off grade of 1.0% copper. The Mineral Resource estimate contained in this news release was prepared by Graham Greenway, Pr.Sci.Nat., Group Resource Geologist, Lundin Mining, who is a Qualified Person as defined under NI 43-101.

For further information, refer to the Technical Report entitled NI 43-101 Technical Report for the Neves-Corvo, Portugal dated June 23, 2017.

Zinkgruvan

The zinc Mineral Resources are estimates within geological volumes based at a nominal NSR cut-off of SEK335/t (equivalent to 3.7% zinc) and a minimum mining width of 5 m.  The copper Mineral Resource is estimated above a cut-off grades of 1.0% Cu. The zinc and copper Mineral Reserves are estimated above a site average NSR cut-off grade of SEK445/t (equivalent to 5.2% zinc and 1.4% copper respectively).  The NSR is calculated on a recovered payable basis taking in to account copper, lead, zinc and silver grades, metallurgical recoveries, prices and realization costs.  The Zinkgruvan Mineral Resource and Mineral Reserve estimates are prepared by the mine’s geology and mine engineering department under the supervision of Anja Hagerud, Resource Manager, and Angelique Bohm, Section Manager Mine Planning, both employed by Zinkgruvan mine.  The estimates were reviewed and verified by Graham Greenway, Pr.Sci.Nat., and David Allison, Group Mining Engineer, CEng MIMMM, Lundin Mining.  Both Messrs. Greenway and Allison are Qualified Persons as defined under NI 43-101.

For further information, refer to the Technical Report entitled NI 43-101 Technical Report for the Zinkgruvan Mine, Central Sweden dated November 30, 2017

Eagle and Eagle East

The Eagle Mineral Resources and Reserves are reported above a fixed NSR cut-off of US$116/t. The Eagle East Mineral Resources and Reserves are reported above a fixed NSR cut-offs of US$142/t and US$160/t respectively. The NSR is calculated on a recovered payable basis taking in to account nickel, copper, cobalt, gold and PGM grades, metallurgical recoveries, prices and realization costs. The Eagle Mineral Resource and Reserve estimates are prepared by the mine’s geology and mine engineering department under the guidance of Robert Mahin, Chief Geologist and Josh Lam, PEng, Senior Mine Engineer, both of whom are employees of Eagle Mine. The Eagle East Mineral Resource estimate was prepared by Graham Greenway, Pr.Sci.Nat., Group Resource Geologist, Lundin Mining. Robert Mahin, CPG, prepared the Eagle Mineral Resource estimate and reviewed and verified the Eagle East Mineral Resource estimate. Josh Lam, PEng, reviewed and verified the Eagle and Eagle East Mineral Reserve estimates and the scientific and technical information on Eagle and Eagle East contained in this news release. Messrs. Greenway, Mahin and Lam are Qualified Persons as defined under NI 43-101.

For further information, refer to the Technical Report entitled Technical Report on the Eagle Mine, Michigan, U.S.A. dated April 26, 2017.

Lundin Mining Corporation

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