Lundin Mining Reports Second Quarter 2026 Results; Strong Operational Performance Generated Near-Record Revenue and Free Cash Flow

VANCOUVER, BC, Aug. 5, 2026 /CNW/ -- (TSX: LUN) (Nasdaq Stockholm: LUMI) Lundin Mining Corporation ("Lundin Mining" or the "Company") today reported its second quarter 2026 financial results. Unless otherwise stated, results are from continuing operations and presented in US dollars on a 100% basis.

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Jack Lundin, President and CEO commented, "We delivered another quarter of strong operational and financial performance, producing approximately 77,000 tonnes of copper and 33,000 ounces of gold while generating near-record revenue of $1.2 billion and adjusted EBITDA of $658 million. Our operations continued to perform well, with strong contributions from Caserones and improved recoveries at Chapada, while Candelaria was impacted by planned mine sequencing adjustments.

"While higher diesel prices increased costs during the quarter and recent severe winter weather has temporarily disrupted operations at Caserones, we remain well positioned to achieve our annual copper production guidance of 310,000 to 335,000 tonnes and expect cash costs to finish within our guided range of $1.90 - $2.10/lb.

"We also continued to advance our growth strategy, progressing with approval for the construction of an additional ball mill at Chapada which is key to unlocking the Saúva project. Another important milestone at Vicuña Corp. was reached with the approval of RIGI PEELP status in Argentina, supporting our objective of reaching a Stage 1 sanction decision by year-end. Lastly, in the second quarter, we strengthened our ownership in the Vicuña district through the acquisition of an additional 5% interest in Caserones and a 30.9% interest in Los Helados, while maintaining a net cash position and continuing to return capital to shareholders through our share repurchase program.

"Looking ahead, our priorities remain clear: operating safely, delivering consistent performance, advancing our organic growth opportunities and progressing Vicuña toward sanctioning. Supported by a portfolio of long-life, high-margin assets and one of the industry's strongest copper growth pipelines, Lundin Mining is well positioned to deliver long-term value for shareholders."

Second Quarter Operational and Financial Highlights

Continued consistent operational performance, supported by elevated metal prices, drove strong cash flow generation during the quarter, enabling the Company to end the period with a net cash position of $79.0 million after completing the $215 million acquisition of an additional 5% interest in Caserones and a 30.9% interest in Los Helados. The Company continued to execute on its growth strategy with the approval of the additional ball mill at Chapada as part of the Saúva project in Brazil and the approval by the Argentinian government of the Incentive Regime for Large Investments ("RIGI") for the Vicuña Project. The Company also returned capital to shareholders through the repurchase of approximately 2.2 million shares under its normal course issuer bid.

• Copper Production: 76,877 tonnes at a consolidated cash cost¹ of $2.11 /lb.
• Gold Production: 33,427 ounces of gold was produced.
• Revenue: $1,212.7 million with a realized copper price¹ of $6.51 /lb and a realized gold price¹ of $4,385 /oz.
• Net Earnings and Adjusted Earnings¹: Net earnings attributable to shareholders of the Company was $278.4 million ($0.33 per share) and adjusted earnings was $256.7 million ($0.30 per share).
• Adjusted EBITDA¹: $658.0 million for the quarter.
• Capital Expenditures¹: Sustaining capital expenditures² were $110.7 million and expansionary capital expenditures¹ were $83.1 million.
• Cash Generation: Cash provided by operating activities in the quarter was $458.8 million, adjusted free cash flow from operations¹ was $395.9 million.
• Shareholder Returns: Under its normal course issuer bid, the Company repurchased 2,202,900 common shares for aggregate purchases of approximately $56.2 million and declared a dividend of C$0.0275 per share during the quarter. The Board has also approved an increase of up to $100 million to the share repurchase program for the remainder of 2026. 
• Growth: The Company is continuing to advance its growth initiatives and completed several significant milestones in the quarter to achieve its long term goal of becoming a top ten copper producer:
  • On April 7, 2026, the Company completed the acquisition from JX Advanced Metals Corporation and affiliates ("JX") of an additional 5% interest in the Caserones mine, along with a 30.9% interest in the Los Helados Project and a 0.62% smelter return royalty on Los Helados for total consideration of $215 million. Upon closing of the transaction, the Company's ownership interest in Caserones mine increased to 75%.
  • During the quarter, Vicuña Corp. achieved a major milestone and received approval for the inclusion of the Josemaria and Filo del Sol deposits (collectively, the "Vicuña Project" or the "Project") to the RIGI under the Long-Term Strategic Export Projects designation ("PEELP") in Argentina. Vicuña is the first copper mining project in Argentina to be granted the more favourable RIGI PEELP status. The approval provides long-term fiscal stability and investment certainty, supporting progress toward a Stage 1 investment decision as early as year-end.
  • Subsequent to the quarter, Vicuña secured a long-term royalty agreement and infrastructure trust (the "Provincial Agreement") with the Government of San Juan Province, Argentina (the "Province"), which will provide further economic stability for the project. An advanced infrastructure trust contribution of $250 million (Lundin Mining's attributable share: $125 million) is expected to be made in Q4 2026 providing upfront funding for provincial infrastructure and community initiatives, while granting the project a five-year payment holiday from first production from required infrastructure trust contributions.
  • On June 17, 2026, the Company hosted a Capital Markets Day, which outlined medium-term, low-cost brownfield expansion opportunities alongside the Vicuña Project which offers transformational long-term growth potential. The Company also provided a financial outlook for the next five and ten years that outlined a clear investment thesis and the ability to fund future growth plans.
  • As part of the Company's near-term growth strategy, it has approved the construction of an additional ball mill at Chapada to achieve higher recoveries as part of the Saúva growth project. Construction is expected to commence by year-end, with commissioning targeted for late 2027.
• Net Cash¹: As at June 30, the net cash position of the Company was $79.0 million. As at August 5, net cash was approximately $75 million.
• Outlook: Notwithstanding the impact of the severe winter storm, the Company anticipates 2026 consolidated production and cash cost to fall within the annual guidance ranges. Cash cost guidance at Chapada has been reduced to $0.75 - $0.95 /lb copper. The consolidated cash cost guidance remains unchanged from $1.90 - $2.10 /lb copper. Annual expansionary capital expenditure guidance has been updated from $50 million to $85 million to reflect the sanctioning of the ball mill construction at Chapada.

Summary Financial Results

Production Overview

Sales Volumes

Caserones (Chile)

Operating Statistics

Q2 2026 Performance

During the quarter, mining activities were primarily focused on Phase 6, with some contribution from Phase 7. Copper concentrate production continued to benefit from high grades in Phase 6 and strong throughput as a result of initiatives under the Full Potential program, which focuses on achieving sustainable operational efficiencies and financial savings. Additional irrigated area in the dump leach continues to benefit copper cathode production.

Molybdenum production in the quarter was impacted by lower recoveries as a result of ore characteristics in the current mine sequence of the open pit.

YTD 2026 Compared to 2026 Guidance

Copper production is in line with annual production guidance, reflecting the planned first-half weighting of the 2026 production profile supported by higher realized grades from Phase 6. Once Caserones is fully operational following the temporary suspension resulting from the severe winter storm in July, consistent copper cathode production and throughput are expected to continue for the remainder of the year.

Growth Projects

The Caserones cathode plant capacity is approximately 35,000 tonnes of copper cathode production per year, representing an opportunity to increase production from current levels through higher utilization rates. Additional oxide material placed on the dump leach and improved leaching practices led to stronger cathode production in 2025 and through the first half of 2026. An additional project to further increase cathode production is being executed in two phases. Phase 1 is focused on operational and leaching improvements, including increasing tonnage placed on the dump leach, expanding irrigation areas, and increasing irrigation acidity, which are expected to support production reaching the plant's current capacity of 35,000 tonnes per year. Phase 2 is expected to further increase cathode production capacity to 40,000 tonnes per year through the repowering of the existing rectifiers.

Exploration Update

At Caserones, four rigs drilled 7,610 metres (eight completed holes, three in-progress) during the quarter, targeting high-grade copper breccias at Angelica, Centauro, and Caserones SW. The road to Cordillera is nearing completion, with two drill pads completed. Results from these drilling campaigns are pending.

Candelaria (Chile)

Operating Statistics

Q2 2026 Performance

Open pit mining continued at Phase 11 during the quarter but due to temporary equipment unavailability, mining was accelerated at Phase 12 which resulted in slightly higher average grade compared to Q1.

Cash cost during the quarter was impacted by increased mining at Phase 12 which has a higher strip ratio, therefore leading to increased costs of waste movement. Cash cost was also impacted by elevated diesel costs. 

YTD 2026 Compared to 2026 Guidance

Production remains in line with annual guidance. Candelaria's production profile is weighted towards the second half of the year due to increased availability of higher-grade Phase 12 ore, combined with increased underground mining rates as the underground insourcing initiative nears completion.

Cash cost continued to benefit from strong gold and silver prices. In H2 2026, cash cost is expected to decrease due to anticipated higher average grades with forecast full year cash cost anticipated to stabilize within the annual guidance range.

Growth Projects

The Candelaria underground expansion project is expected to increase underground throughput capacity to approximately 22,000 tonnes per day from current production levels, targeting a medium-term increase in annual copper production of 10% or approximately 14,000 tonnes of copper. The opportunity includes phased insourcing of the Company's underground mining contract and an increase in the number of active mining stopes. This opportunity is not included in Candelaria's three-year guidance figures. Candelaria's first half 2026 results reflected lower underground mining rates as the Company insources the underground mining contract. Insourcing is nearing completion and mining rates are expected to increase in H2 2026 before stabilizing at 14,000 tonnes per day by the end of 2027. Planning is underway to support a gradual increase in underground mining rates, reaching approximately 22,000 tonnes per day by 2030.

Projects are also ongoing to support the mine life extension under the 2040 Environmental Impact Assessment ("EIA").

Exploration Update

At Candelaria, a total of 3,290 metres were drilled underground in the Mariana sector of Candelaria Sur (six completed, one in-progress) to follow the extension of known vein/breccia mineralization, and on surface at Española (one in progress), testing continuity of the known mineralized system.

Chapada (Brazil)

Operating Statistics

Q2 2026 Performance

Mining during the quarter remained focused on the South pit. Mill throughput continued to benefit from high operational availability from efficiencies achieved through the Full Potential program and a softer ore blend during the period.

YTD 2026 Compared to 2026 Guidance

Production remains in line with annual guidance. Average copper grades are expected to modestly increase during the second half of the year and throughput is expected to continue to benefit from operational efficiencies.

Growth Projects

The Saúva deposit is approximately 15 kilometres from the Chapada mine and represents a near mine opportunity to add approximately 15,000 tonnes of annual copper production and approximately 45,000 ounces of annual gold production. The project will include the installation of an additional ball mill at Chapada to process higher grade ore from Saúva, replacing lower grade material currently being mined at the Chapada open pit. As part of this project, the construction of an additional ball mill has been approved and is expected to increase copper and gold recoveries by approximately 5% with earthworks having begun in July 2026 and commissioning of the ball mill expected in late 2027.

Further design and engineering work on this project will continue along with Saúva permitting. An updated technical report for the Chapada mine and Saúva Project is in progress and expected to be completed in Q4 2026.

Exploration Update

At Chapada, one drill completed five holes totaling 2,720 metres targeting a potential high-grade down-dip extension at Saúva.

Vicuña Project (Argentina and Chile)

The development of the Vicuña district is envisioned in a staged approach. Stage 1 encompasses a sulphide mill and the Josemaria deposit, establishing an initial open pit mine and concentrator designed for future expansion to accelerate first production and early cash flow. Stage 2 builds on this foundation by developing the Filo del Sol leachable oxides and a corresponding solvent extraction and electrowinning (SX/EW) plant for copper, gold and silver recovery. Stage 3 represents the long-term maturation of the district through expansion of the concentrator and development of the Filo del Sol sulphide deposit, enabling peak, sustained production, positioning the Vicuña Project as a long-life, globally significant copper operation. Stage 3 also integrates key district infrastructure, including a desalination plant and associated pipeline, concentrate slurry pipeline and concentrate treatment facility, to support expansion of the district.

RIGI Approval

In June 2026, Vicuña received approval for the inclusion of the Vicuña Project to RIGI under the PEELP designation. Argentina's RIGI regime is designed to attract and accelerate large-scale investment through long-term fiscal stability and transparent regulatory conditions. Vicuña is the first copper mining project in Argentina to be granted the more favourable RIGI PEELP status. RIGI offers regulatory stability, including lower corporate and dividend withholding tax rates, removal of export duties, value added tax offsets and repatriation of revenues. RIGI PEELP is designed to support large scale, long-term investments into Argentina and provides longer benefit periods (40 years vs 30 years) and accelerated timelines to repatriate revenues and export duty exemptions, as compared to the regular RIGI regime.

Provincial Agreements

Subsequent to the quarter, Vicuña secured a Provincial Agreement with the Government of San Juan Province, Argentina to provide further economic stability for the project. Vicuña and the Province have agreed to:

• Consolidate all financial contributions for public works and infrastructure required under the Vicuña Project's Declaration of Environmental Impact (mining permit) into a single 1.5% gross revenue infrastructure trust for the life of mine which simplifies the funding of the infrastructure contributions between the two deposits;
• An advanced infrastructure trust contribution of $250 million (Lundin Mining's attributable share: $125 million). The $250 million advanced contribution will provide Vicuña with a 5-year payment holiday from first production from infrastructure trust contributions, while providing upfront funds to the Province for infrastructure and community initiatives; and
• A cap to the provincial mining royalty of 3% gross revenue for the life of mine.

The Provincial Agreement remains subject to approval by the San Juan Legislature prior to being passed into law, and the advanced payment is expected to be completed in Q4 2026.

Project Development

During the quarter, the Company spent $74.4 million in capital expenditures compared to $32.2 million in Q2 2025, reflecting increased project readiness activities as the project advances towards a sanction decision. During the quarter, activities were focused on detailed design and engineering, execution planning, and the ramp up of Stage 1 early earthworks. A 24-truck fleet was mobilized during the quarter to initiate early earthworks with 1.1 million tonnes moved in the quarter.

Drilling activities, including geotechnical drilling at Josemaria and Filo del Sol and exploration drilling at Filo del Sol, advanced with approximately 14,350 metres of exploration drilling completed during the quarter (29,150 metres year-to-date), progressing towards the drill target of 50,000 metres for 2026.

On a year-to-date basis, the Company spent $126.6 million in capital expenditures compared to $74.9 million in year-to-date 2025. Capital expenditures increased due to expanded engineering and execution planning activities as the project advances towards a sanction decision.

Subsequent to the quarter, Vicuña received approval from the National Gas and Electricity Regulatory Entity (ENRGE) to build the high voltage powerline and electrical infrastructure for the Vicuña Project along with securing capacity to meet the power demands of the operation.

Upcoming Project Development Milestones

The Company intends to continue to work with its partner, BHP, and the Vicuña Project team to advance the Vicuña Project to a sanctioning decision. Key upcoming activities and milestones include:

• Engineering and mine design optimization activities for Stage 1.
• Advancement of financing structure to fund construction.
• Completion of Stage 1 capital cost estimate and construction schedule.
• Trade off studies and optimization of Stages 2 & 3.

Detailed design and engineering on the Vicuña Project is ongoing. The technical team is focused on advancing all aspects of the project to target a sanctioning decision as early as the end of 2026.

Technical Report Results

The results of the Vicuña Project integrated study, including an updated Mineral Resource estimate for the Vicuña Project (the "Updated Vicuña Mineral Resource"), were published on February 16, 2026 and highlighted a development project with the potential to rank among the top five copper, gold, and silver mines globally.

Highlights¹:

• Potential to be a top five copper, gold, and silver mine: Average annual production of 400,000 tonnes copper, 700,000 oz gold and 22 Moz silver over the first 25 full years of operation.
• Peak production of +500 ktpa copper: Average production over a ten-year period of over 500,000 tonnes copper, 800,000 oz gold and 20 Moz silver or 800,000 tonnes CuEq².
• Multi-generational asset: Initial +70-year LOM, producing approximately 22.3 Mt of copper, 37.2 Moz of gold and 763 Moz of silver.
• Significant free cash flow: Average annual free cash flow of $2.2 billion per year (after expansionary capital) during the first 25 years.
• Leveraged to copper and gold: LOM revenue contribution of 60% copper, 32% gold and 8% silver.
• Capital intensity below $30,000/tonne CuEq: Stage 1 capital of $7.1 billion with an after-tax payback period of 8.4³ years and an after-tax IRR of 14.8%.
• Resource growth: The Updated Vicuña Mineral Resource grew significantly compared to the previous estimate⁴.
• Base-case scenario: NPV_8% of $9.5 billion after-tax at $4.60/lb copper, $3,300/oz gold and $40/oz silver.
• Value accretion at higher metal prices: $6.00/lb copper, $5,000/oz gold & $80/oz silver increases the NPV_8% to $28.8 billion and the IRR to 25.5% with a payback of 5.4 years.

The results of the integrated study were subsequently filed in a technical report ("Vicuña Technical Report") entitled "Vicuña Project, Argentina and Chile NI 43-101 Technical Report on Preliminary Economic Assessment", available on SEDAR+ at www.sedarplus.ca. The Vicuña Project integrated study is preliminary in nature and provides only an initial, high-level review of the Vicuña Project's potential and design options; there is no certainty that the results of the Vicuña Project integrated study will be realized. It includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

About Vicuña

On January 15, 2025, the Company and BHP completed the acquisition of Filo Corp. through a plan of arrangement and concurrently formed a 50/50 independently managed joint arrangement, Vicuña, holding the Josemaria deposit in Argentina and the Filo del Sol deposit in Argentina and Chile. The Company accounts for Vicuña as a joint operation and accordingly records its 50% share of the assets, liabilities, revenue, expenses and cash flows.

Los Helados Project (Chile)

On April 7, 2026, the Company acquired from JX a 30.9% interest in the Los Helados Project, a large copper-gold deposit, located in Chile's Atacama Region, approximately 17 kilometres to the south of Caserones and approximately 10 kilometres to the north of the Vicuña Project. Los Helados strengthens the Company's Mineral Resource base, increasing measured and indicated copper Mineral Resources by 15% and gold Mineral Resources by 11%, on an attributable basis⁵. NGEx Minerals Ltd. holds the remaining 69.1% interest in the Los Helados Project and is the operator.

Los Helados provides compelling long-term growth optionality including potential synergies with the Caserones operation. Potential scenarios include throughput expansion, a stand alone operation, or transportation of mineralization from Los Helados to Caserones, accelerating higher grade material.

A total of 96,448 metres of drilling has been completed on the Los Helados Project in 110 holes with a Mineral Resource estimate updated in 2023 which highlighted a significant inventory of contained copper, gold and silver.

Revenue Analysis

The revenue increase during the quarter was primarily due to an increase in realized copper prices, partially offset by lower copper sales volumes.

The year-to-date increase in revenue was primarily due to an increase in realized copper and gold prices, partially offset by lower copper and gold sales volumes.

Capital Expenditures¹ 

Sustaining capital expenditures during both periods were primarily related to open pit waste stripping, underground mine development, tailings storage facility upgrades, and investments in new mining equipment. A portion of capital expenditures at Candelaria and Caserones was deferred to the second half of 2026, with no change to 2026 capital expenditure guidance.

2026 Outlook

Subsequent to quarter-end, the Atacama region of Chile experienced severe winter storms, resulting in regional flooding and significant snowfall. Operations at Caserones were temporarily suspended due to heavy snowfall, which restricted site access and disrupted power supply for 13 days. Power has been restored at site and the restart of operations at Caserones is currently underway. As a result, the Company is now anticipating annual production for Caserones to be at the lower half of the annual production guidance range of 130,000 to 140,000 tonnes. Mining operations at Candelaria were briefly impacted by heavy rainfall; however, the mill continued to operate using existing ore stockpiles with no impact to annual production guidance.

Notwithstanding the impact of the severe winter storm, the Company anticipates 2026 consolidated copper and gold production to be within the annual consolidated production guidance range.

In light of increased realized prices on by-product gold sales, cash cost guidance at Chapada has been reduced (see news release dated June 17, 2026). Cash cost guidance for the other assets and consolidated cash cost guidance remains unchanged from that announced on January 21, 2026.

Consistent with the June 17 news release, expansionary capital expenditure guidance has been increased by $35.0 million to fund the first stages of the ball mill construction as part of the Saúva project in Brazil.

The Company continues to assess the impact of the current macroeconomic environment and its subsequent effect on key input costs including diesel, sulphuric acid, and ocean freight. While these input costs have increased, the increases are not expected to have a material impact on the overall cost base of the Company at this time. We continue to actively monitor the situation for changes that could impact the Company's financial results.

See below for current 2026 Guidance:

2026 Production and Consolidated Cash Cost¹ Guidance

2026 Production and Cash Cost¹ Guidance by Operation

2026 Capital Expenditure Guidance¹

Annual expansionary capital guidance has been updated to reflect the sanctioning of an additional ball mill to be constructed at Chapada to achieve higher recoveries as part of the Saúva project (see news release dated June 17, 2026).

2026 Exploration Investment Guidance

Total exploration expenditure guidance for 2026 is $53 million.

2026 Revised Guidance Key Assumptions

Revised cash cost guidance is based on various assumptions and estimates, including but not limited to: production volumes, commodity prices (Au: $4,000 /oz, Ag: $70.00 /oz), foreign exchange rates (USD/CLP: 900, USD/BRL: 5.00) and operating costs.

Candelaria is subject to a streaming agreement which currently streams 68% of the total gold and silver production. Candelaria's cash cost is calculated based on receipt of approximately $437 /oz gold and $4.36 /oz silver on streamed ounces. Chapada's cash cost is calculated on a by-product basis and does not include the effects of its copper stream agreements which are reflected in copper revenue.

Capital expenditure guidance is based on various assumptions and estimates, including, but not limited to foreign currency exchange rates (USD/CLP: 900, USD/BRL: 5.00).

About Lundin Mining

Lundin Mining is a Canadian mining company headquartered in Vancouver, Canada with three operating mines in Brazil and Chile. We produce metals that underpin global development, supporting infrastructure, electrification, technological innovation, and economic resilience. Our strategic vision is to become a top ten global copper producer. To get there, we are executing a clear growth strategy, which includes advancing one of the world's largest copper, gold, and silver projects in the Vicuña District on the border of Argentina and Chile, where we hold a 50% interest. We also hold a 31% interest in the Los Helados project, located adjacent to our operating Caserones mine, providing longer term growth optionality. Lundin Mining has a proven track record of value creation through resource growth, operational excellence, and responsible development. The Company's shares trade on the Toronto Stock Exchange (LUN) and Nasdaq Stockholm (LUMI). Learn more at www.lundinmining.com.

The information in this release is subject to the disclosure requirements of Lundin Mining under the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below on August 5, 2026 at 4:00 Vancouver Time.

Technical Information

The Vicuña Technical Report summarizing the results of the integrated study, including the Updated Vicuña Mineral Resource was prepared in accordance with National Instrument 43-101 - Standards for Disclosure for Mineral Projects ("NI 43-101") and may be found under the Company's profile on SEDAR+ at www.sedarplus.ca in accordance with applicable securities rules. The Qualified Persons (as defined by NI 43-101) named below have reviewed and verified the scientific and technical information in respect of the Vicuña Technical Report and approve the written disclosure of such information. Each of the Qualified Persons named below, other than Dustin Smiley, is independent of Lundin Mining.

The Qualified Persons are:

Mr. Luke Evans, P.Eng., SLR Consulting (Canada) Ltd.
Mr. Paul Daigle, P.Geo., AGP Mining Consultants Inc.
Mr. Sean Horan, P.Geo., Resource Modelling Solutions Ltd.
Mr. Jeffery Austin, P.Eng., International Metallurgical and Environmental Inc.
Mr. Rod Clary, P.E., Design, Fluor Enterprises Inc.
Mr. Kirk Hanson, P.E., KH Mining LLC
Mr. Dustin Smiley, P.Eng., Vicuña Corp.
Mr. Daniel Ruane, P.Eng., Knight Piesold Ltd.

For further information related to the Vicuña Technical Report, see the Company's news release dated March 30, 2026.

The reader is advised that the Vicuña integrated study summarized herein is only a conceptual study of the potential viability of the Vicuña Project, and the economic and technical viability of the Vicuña Project and its estimated Mineral Resources has not been demonstrated. The Vicuña integrated study is preliminary in nature and provides only an initial, high-level review of the Vicuña Project's potential and design options; there is no certainty that the results of the Vicuña integrated study will be realized. The Vicuña integrated study conceptual mine plan and economic model include numerous assumptions and Mineral Resource estimates including Inferred Mineral Resource estimates. Inferred Mineral Resource estimates are considered to be too speculative geologically to have any economic considerations applied to such estimates. There is no guarantee that Inferred Mineral Resource estimates will be converted to Indicated or Measured Mineral Resources, or that Indicated or Measured Mineral Resources can be converted to Mineral Reserves.  Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability, and as such there is no guarantee the Vicuña Project economics described herein will be achieved. Mineral Resource estimates may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant risks, uncertainties and other factors, as more particularly described herein and in the Vicuña Technical Report.

The scientific and technical information in this news release other than that pertaining to the Vicuña Technical Report has been reviewed and approved in accordance with NI 43-101 by Eduardo Cortés, Registered Member (Comisión Calificadora de Competencias en Recursos y Reservas Mineras (Chilean Mining Commission)), Vice President, Mining & Resources at Lundin Mining, a "Qualified Person" under NI 43-101.

Mr. Cortés has verified the scientific and technical information pertaining to the Los Helados Project by reviewing public disclosure of NGEx Minerals Ltd. pertaining to the project; however, he has not had access to any underlying data or other information beyond what is publicly disclosed by NGEx Minerals Ltd. Mr. Cortés has verified all scientific and technical information disclosed in this document other than with respect to the Vicuña Technical Report and no limitations were imposed on his verification process, other than as described for the Los Helados Project.

Abbreviations

Reconciliation of Non-GAAP Measures 

The Company uses certain performance measures in its analysis. These performance measures have no standardized meaning within generally accepted accounting principles under International Financial Reporting Standards and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. For additional details please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the three and six months ended June 30, 2026 which is available on SEDAR+ at www.sedarplus.ca.

Cash Cost per Pound and AISC per Pound

Cash Cost per Pound, Consolidated Cash Cost per Pound, and AISC per Pound can be reconciled to Production costs on the Company's condensed interim consolidated Statements of Earnings as follows:

Adjusted EBITDA

Adjusted EBITDA can be reconciled to Net earnings (loss) from continuing operations on the Company's condensed interim consolidated Statements of Earnings as follows:

Adjusted Earnings and Adjusted EPS

Adjusted earnings and Adjusted EPS can be reconciled to Net earnings (loss) from continuing operations attributable to Lundin Mining Shareholders on the Company's condensed interim consolidated Statements of Earnings as follows:

Sustaining and Expansionary Capital Expenditures

Capital Expenditures can be reconciled to Investment in mineral properties, plant and equipment, a component of Cash used in investing activities, on the Company's condensed interim consolidated Statements of Cash Flows as follows:

Free Cash Flow from Operations and Adjusted Free Cash Flow from Operations

Free Cash Flow from Operations and Adjusted Free Cash Flow from Operations can be reconciled to Cash provided by operating activities on the Company's condensed interim consolidated Statements of Cash Flows as follows: