Page 1

LUNDINGOLD NEWS RELEASE Vancouver , May 12 , 2021 LUNDIN GOLD REPORTS FIRST QUARTER OF 2021 RESULTS Record quarterly production underpins strong financial performance Lundin Gold Inc. ( TSX : LUG ; Nasdaq Stockholm : LUG ) ( " Lundin Gold " or the " Company " ) today reports results for the first quarter of 2021 , a quarter marking the first anniversary of the achievement of commercial production at Fruta del Norte . Highlights for the quarter include production of 104,137 ounces ( " oz " ) of gold and sales of 81,805 oz during the quarter , at an average all - in sustaining cost ( " AISC " ) ¹ of $ 830 per oz sold . From this , net revenues , adjusted earnings¹ , and cash flow from operations of $ 140.0 million , $ 37.4 million , and $ 75.1 million , respectively , were realized . All amounts are in U.S. dollars unless otherwise indicated . Ron Hochstein , President and CEO commented , " 2021 is off to a great start for Lundin Gold , with record quarterly production . Much of our very strong March production was sold during April . Had these sales occurred in the quarter , quarterly financial results such as net income , operating cash flow and AISC would have been even stronger . Since the restart of operations in the third quarter of 2020 , operating results have met or exceeded expectations , and these excellent results have continued into this year . Operational excellence is only one of our four pillars of value creation though , and as such , we continue to advance , on time and on budget , our throughput expansion program , the Fruta del Norte resource expansion program , and the recently commenced regional exploration program , with a drill now turning at the Barbasco target . I am excited for further developments and updates in 2021 and believe that the Company has positioned itself well to continue generating strong shareholder value in the future . " The Company is on track to meet its 2021 guidance of 380,000 to 420,000 oz of gold produced . AISC for the year is projected between $ 770 and $ 830 per oz of gold sold , calculated on a basis consistent with prior periods . First Quarter of 2021 Operating and Financial Highlights The following two tables provide an overview of key operating and financial results during the first quarter of 2021 . Tonnes mined ( tonnes ) Tonnes milled ( tonnes ) Average head grade ( g / t ) Average recovery ( % ) Average mill throughput ( tpd ) Gold ounces produced Gold ounces sold 1 Refer to " Non - IFRS Measures " section . 2 Three months ended March 31 , 2021 365,471 Three months ended March 31 , 2020² 198,000 244,000 324,591 11.4 7.9 87.8 % 82.8 % 3,607 3,056 104,137 51,320 81,805 59,317 The figures presented are for the three months ended March 31 , 2020 which include the two - month ramp up period before achievement of commercial production . Lundin Gold Inc. 885 West Georgia Street , Suite 2000 Vancouver , BC , V6C 3E8 Phone : +1 604 689 7842 Fax : +1 604 689 4250 lundingold.com Email : info@lundingold.com