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LUNDINGOLD NEWS RELEASE Vancouver , August 11 , 2021 LUNDIN GOLD REPORTS SECOND QUARTER OF 2021 RESULTS Record operating cash flow supported by lowest quarterly cash operating costs to date Lundin Gold Inc. ( TSX : LUG ; Nasdaq Stockholm : LUG ) ( " Lundin Gold " or the " Company " ) today reports results for the second quarter and first half of 2021. All amounts are in U.S. dollars unless otherwise indicated . Second Quarter of 2021 Financial Overview • The Company sold a total of 125,412 oz of gold , consisting of 80,486 oz of concentrate and 44,926 oz of doré at an average realized gold price¹ of $ 1,773 per oz for total gross revenues from gold sales of $ 222.4 million . Net of treatment and refining charges , revenues were $ 216.1 million . Cash operating costs¹ and all - in sustaining cost ( " AISC " ) ¹ for the quarter were $ 596 and $ 720 per oz of gold sold , respectively . Cash operating costs were lower than previous quarters due to high production and sales , continued efficiencies in operations and increased recoveries . The lower cash operating costs also resulted in a lower AISC . • Income from mining operations was $ 110.6 million , and the Company generated cash flow of $ 142.0 million from operations , or $ 0.61 per share¹ and ended the quarter with a cash balance of $ 192.2 million . • Net income was $ 50.0 million after deducting derivative losses , corporate , exploration , finance costs , and associated taxes on earnings . Adjusted earnings for the quarter , which exclude derivative losses , were $ 74.8 million , or $ 0.32 per share . Second Quarter of 2021 Production Overview • Gold production was 108,799 ounces ( " oz ” ) , comprised of 66,721 oz of concentrate and 42,078 oz of doré . • Record quarterly mine operating performance was achieved with 397,640 tonnes mined . • Underground mine development also continued as planned with a total of 2,360 metres of development completed with development rates averaging 25.9 metres per day in the second quarter . • The mill processed 346,561 tonnes of ore at an average throughput of 3,808 tonnes per day . • The average grade of ore milled was 11.1 grams per tonne with average recovery at 88.2 % . Ron Hochstein , President and CEO commented , " Fruta del Norte continues to perform exceptionally well , and I am delighted with the team's continued efforts to further optimize and enhance operations . Once again , record production during this second quarter of 2021 underpins our strong financial performance . In the first half of the year we generated $ 217 million in operating cash flow and ended the quarter with a cash balance of $ 192.2 million , which supports debt repayments , exploration and planned capital expenditures , including 1 Refer to " Non - IFRS Measures " section . 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