Lundin Gold Inc. announced initial drill results from the 2022 near-mine exploration program at its 100% owned Fruta del Norte gold mine in southeast Ecuador. Results from the drill program identified new mineralized zones to the south and at depth of FDN's currently defined Mineral Resources. The near-mine exploration program was initiated in the third quarter of 2022, and focuses on expanding the FDN mineral resource envelope and testing several unexplored opportunities near the mine site.

To date approximately 8,600 metres have been drilled across 16 holes, from surface and underground. New Mineralized Zone Intercepted to the South of FDN's Mineral Resource Envelope To the south of the current FDN mineral resource envelope, a surface drilling program continues to explore sectors along the two main controlling structures of the FDN deposit, the East and West faults. Along the southern extension of the East fault a new mineralized zone has been intercepted.

Initial promising results suggest continuity of the epithermal system in this southern direction. This surface drilling program completed nine drill holes in 2022, most of them located between 200 and 900 metres south of the FDN mineral resource envelope boundary. Results for several drill holes are pending.

Most of the drill holes intercepted wide hydrothermal alteration zones of similar characteristics to those found at the FDN deposit. This zone remains open at depth, along strike to the north and to the south, where a gold and epithermal pathfinder elements soil anomaly remains untested. The 2023 program has already started, with one rig drilling on this new zone and a second rig to be added shortly.

In addition to the surface drilling, the near-mine program's underground drilling focuses on the continuity of the FDN deposit and west structure at depth. A total of seven drill holes were completed under the southern portion of the FDN mineral resource envelope. Initial results indicate new zones where the deposit remains open at depth.

Results for several drill holes are pending. Most of the results obtained from underground drilling exhibit the same mineral hydrothermal alteration to that related to mineralization in the southern extension of FDN's Mineral Resource and confirm the continuity of the deposit at depth, below the current resource. Underground drilling is being expanded in 2023 to continue to explore at depth.

The initial focus will be the north-central sector below the highest-grade portion of the mineral deposit, where the mine is currently operating. The 2023 near-mine program will include underground and surface drilling at or near FDN. Indications from drilling in 2022 suggest potential for the extension of FDN Mineral Resources at depth as well as to the East, West and South of the current mineral resource envelope.

The 2023 near-mine program is targeting at least 15,500 metres of drilling at an estimated cost of $9.4 million. REGIONAL EXPLORATION PROGRAM Investigation of the Suarez Basin Continues In 2022, Lundin Gold completed approximately 17,600 metres of drilling across several targets in the southern basin as part of its regional exploration program. The program has successfully advanced in the identification of important indicators that point toward the presence of buried epithermal deposits in the southern basin.

Through a detailed geological interpretation of exploration data and additional surface works, several targets of interest have been identified, tested, and resulted in locating new potentially mineralized structures. They include: Along the south western basin border, the Quebrada La Negra and Puente Princesa targets were investigated with a total 6,987 metres drilled across nine holes. At Quebrada La Negra, the drilling program identified a new structure associated to the west border, represented by wide hydrothermal alteration zones with breccias and/or veins and disseminated sulfides.

The program also drilled an arsenic soil anomaly, where drilling intercepted a major structure with quartz veins, hydrothermal carbonate-silica breccias and sulfides hosted in the Santiago formation, which is also the FDN hosting sequence. This hydrothermal alteration zone possibly represents the northern continuity of the Puente Princesa structure, defined in the second quarter. All results are pending.

Four drill holes were completed at Barbasco Norte for a total of 2,123 metres to test a continuous geochemical gold soil anomaly at the edge of the Suarez Basin. The drilling program intercepted low grade values of gold and epithermal pathfinder element arsenic in narrow hydrothermal alteration zones of similar composition to that found in epithermal systems like Fruta del Norte. The obtained geological data suggest an increase of the hydrothermal alteration toward the east, close to the basin border and where additional drilling is being planned in 2023.

At Barbasco, the program explored for several indicators of epithermal systems in distinct sectors of the target. Nine drill holes for a total of 6,351 metres were completed. The drilling only intercepted few and limited zones of hydrothermal alteration zones at depth, and the current interpretation suggests additional drilling is required to explore untested sectors located farther east.

Drilling under the regional program will focus on several exploration targets located in the 16 km long Suarez Basin, with the objective of identifying another FDN. The 2023 regional program is estimated to cost $11.7 million for planned drilling of 12,500 metres. This program is anticipated to begin within the next few weeks.