Lundin Mining : February - 2022 2021 Year End Results

Fourth Quarter and Full Year 2021 Results

February 18, 2022

TSX: LUN Nasdaq Stockholm: LUMI

Candelaria, Atacama Region, Chile

Cautionary Statements

Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of applicable Canadian securities laws. All statements other than statements of historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company's plans, prospects and business strategies; the Company's guidance on the timing and amount of future production and its expectations regarding the results of operations; expected costs; permitting requirements and timelines; timing and possible outcome of pending litigation; the results of any Preliminary Economic Assessment, Feasibility Study, or Mineral Resource and Mineral Reserve estimations, life of mine estimates, and mine and mine closure plans; anticipated market prices of metals, currency exchange rates, and interest rates; the development and implementation of the Company's Responsible Mining Management System; the Company's ability to comply with contractual and permitting or other regulatory requirements; anticipated exploration and development activities at the Company's projects; the Company's integration of acquisitions and any anticipated benefits thereof, including but not limited to expectations regarding whether the proposed transaction (the "Transaction") with Josemaria Resources Inc. ("Josemaria Resources") will be consummated, including whether conditions to the Transaction will be satisfied, or the timing for completing the Transaction, expectations regarding the potential benefits and synergies of the Transaction and the ability of the combined company to successfully achieve business objectives, including integrating the companies or the effects of unexpected costs, liabilities or delays, expectations regarding additions to mineral resources, mineral reserves and future production, expectations regarding financial strength, free cash flow generation, trading liquidity, and capital markets profile, expectations regarding future exploration and development, growth potential for Lundin Mining's and Josemaria Resources' operations; and expectations for other economic, business, and/or competitive factors. Words such as "believe", "expect", "anticipate", "contemplate", "target", "plan", "goal", "aim", "intend", "continue", "budget", "estimate", "may", "will", "can", "could", "should", "schedule" and similar expressions identify forward-looking statements. Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including that the Company can access financing, appropriate equipment and sufficient labor; assumed and future price of copper, nickel, zinc, gold and other metals; anticipated costs; ability to achieve goals; the prompt and effective integration of acquisitions; that the political environment in which the Company operates will continue to support the development and operation of mining projects; and assumptions related to the factors set forth below. While these factors and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management's experience and perception of current conditions and expected developments, these statements are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: risks inherent in mining including but not limited to risks to the environment, industrial accidents, catastrophic equipment failures, unusual or unexpected geological formations or unstable ground conditions, and natural phenomena such as earthquakes, flooding or unusually severe weather; uninsurable risks; global financial conditions and inflation; changes in the Company's share price, and volatility in the equity markets in general; volatility and fluctuations in metal and commodity prices; the threat associated with outbreaks of viruses and infectious diseases, including the COVID-19 virus; changing taxation regimes; reliance on a single asset; delays or the inability to obtain, retain or comply with permits; risks related to negative publicity with respect to the Company or the mining industry in general; health and safety risks; exploration, development or mining results not being consistent with the Company's expectations; unavailable or inaccessible infrastructure and risks related to ageing infrastructure; actual ore mined and/or metal recoveries varying from Mineral Resource and Mineral Reserve estimates, estimates of grade, tonnage, dilution, mine plans and metallurgical and other characteristics; risks associated with the estimation of Mineral Resources and Mineral Reserves and the geology, grade and continuity of mineral deposits including but not limited to models relating thereto; ore processing efficiency; community and stakeholder opposition; information technology and cybersecurity risks; potential for the allegation of fraud and corruption involving the Company, its customers, suppliers or employees, or the allegation of improper or discriminatory employment practices, or human rights violations; regulatory investigations, enforcement, sanctions and/or related or other litigation; uncertain political and economic environments, including in Brazil and Chile; risks associated with the structural stability of waste rock dumps or tailings storage facilities; estimates of future production and operations; estimates of operating, cash and all-in sustaining cost estimates; civil disruption in Chile; the potential for and effects of labor disputes or other unanticipated difficulties with or shortages of labor or interruptions in production; risks related to the environmental regulation and environmental impact of the Company's operations and products and management thereof; exchange rate fluctuations; reliance on third parties and consultants in foreign jurisdictions; climate change; risks relating to attracting and retaining of highly skilled employees; compliance with environmental, health and safety laws; counterparty and credit risks and customer concentration; litigation; risks inherent in and/or associated with operating in foreign countries and emerging markets; risks related to mine closure activities and closed and historical sites; changes in laws, regulations or policies including but not limited to those related to mining regimes, permitting and approvals, environmental and tailings management, labor, trade relations, and transportation; internal controls; challenges or defects in title; the estimation of asset carrying values; historical environmental liabilities and ongoing reclamation obligations; the price and availability of key operating supplies or services; competition; indebtedness; compliance with foreign laws; existence of significant shareholders; liquidity risks and limited financial resources; funding requirements and availability of financing; enforcing legal rights in foreign jurisdictions; dilution; risks relating to dividends; risks associated with acquisitions and related integration efforts, including the ability to achieve anticipated benefits, unanticipated difficulties or expenditures relating to integration and diversion of management time on integration; activist shareholders and proxy solicitation matters; the ability to consummate the Transaction; the ability to obtain requisite court, regulatory and shareholder approvals and the satisfaction of other conditions to the consummation of the Transaction on the proposed terms and schedule; the ability of Lundin Mining and Josemaria Resources to successfully integrate their respective operations and employees and realize synergies and cost savings at the times, and to the extent, anticipated; the potential impact on exploration activities; the potential impact of the announcement or consummation of the Transaction on relationships, including with regulatory bodies, employees, suppliers, customers and competitors and other risks and uncertainties, including but not limited to those described in the "Risk and Uncertainties" section of the Annual Information Form and the "Managing Risks" section of the Company's MD&A for the year ended December 31, 2021, which are available on SEDAR at www.sedar.com under the Company's profile. All of the forward-looking statements made in this document are qualified by these cautionary statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, forecast or intended and readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. 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 information. Accordingly, there can be no assurance that forward-looking information will prove to be accurate and forward-looking information is not a guarantee of future performance. Readers are advised not to place undue reliance on forward-looking information. The forward-looking information contained herein speaks only as of the date of this document. The Company disclaims any intention or obligation to update or revise forward‐looking information or to explain any material difference between such and subsequent actual events, except as required by applicable law.

Non-IFRS Measures

Lundin Mining has included certain non-IFRS measures in this document such as adjusted earnings, adjusted EBITDA, adjusted operating cash flow, free cash flow, net cash (debt), cash cost, and expansionary capital expenditures. Please see the Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2021, for discussion of non-GAAP measures and reconciliations, which information is incorporated by reference herein and which is available under the Company's profile on SEDAR at www.sedar.com. Lundin Mining believes that these measures, in addition to conventional measures prepared in accordance with International Financial Reporting Standards ("IFRS"), provide investors an improved ability to evaluate the underlying performance of Lundin Mining and Josemaria Resources and the proposed transaction. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

Note: All dollar amounts are in US dollars unless otherwise denoted.

2

Participants

Peter Rockandel

President, CEO & Director

Jinhee Magie

SVP & CFO

Peter Richardson

SVP & COO

Ciara Talbot

VP, Exploration

Five professionals from Candelaria selected among the more than 1,300 nominations to the 100 Inspiring Women of Chilean Mining - January 2022

Karina Briño, General Manager, Administration

Evelyn Walter, Radar Operator and President of the Candelaria Workers' Union

Pamela Bordones, Operations Geologist and President of the Candelaria Supervisors Union

Maricel Dorador, Head of Security for the Industrial Protection Sub-Management

Jessica Zuleta, Reliability Engineer in the Mine Maintenance Department

3

2021 Highlights

High Quality

Competitive Mines

• best-everTotal Recordable Injury Frequency (TRIF) rate of 0.54
• met or exceeded most recent production guidance for all metals
• cash costs1 in line or better than guidance at each operation
• generated record net earnings attributable to shareholders of $780M, adjusted earnings1 of $821M, adjusted EBITDA1 of $1.9B and free cash flow1 of over $1.0B

Advanced Internal

Growth Initiatives

• Neves-CorvoZinc Expansion Project (ZEP) construction substantially complete
• advanced Chapada expansion study work and discovered the high-gradecopper-gold Saúva prospect
• progressed internal feasibility study on Candelaria underground expansion (CUGEP)
• completed internal technical and economic studies on Eagle East Keel zone

Remain Focused on

Value Creation

• declared C$0.39/sh in dividends in 2021; nearly 145% increase to dividends declared in 2020
• purchased 4.5M shares under normal course issuer bid
• announced acquisition of Josemaria Resources2 which is expected to significantly increase copper and gold growth and scale

1.	Cash cost, adjusted earnings, adjusted EBITDA and free cash flow are non-GAAP and other performance measures. Please see Lundin Mining's MD&A for the three and twelve months ended December 31, 2021 for discussion on non-GAAP measures and other performance measures.	4
2.	Announced acquisition remains subject to completion. The completion of the acquisition of Josemaria by Lundin Mining remains subject to satisfaction of conditions, including the approval by shareholders of Josemaria Resources. See Cautionary Statements. Refer to news release "Lundin Mining to
	Acquire Josemaria Resources, Meaningfully Increasing Copper and Gold Growth Profile" dated December 20, 2021.

2021 Summary Results

Production	Payable Sales
262,884 t of copper	250,282 t of copper
143,797 t of zinc	117,678 t of zinc
167,000 oz of gold	157,000 oz of gold
18,353 t of nickel	15,012 t of nickel
27,602 t of lead	24,135 t of lead

Record $3.3B in Sales

Gold	Other
6%
7%
Nickel
8%
Zinc	Copper
9%	70%

Sweden

7%

USA 14%

Chile

Portugal48%

14%

Brazil

17%

By Metal

By Jurisdiction

https://newsroom.porsche.com/en/2022/products/porsche-taycan-4s-cross-turismo-guinness-world-record-greatest-altitude-change-26981.html

5