3. Caution Regarding Forward-Looking Information and Statements
All statements, other than statements of historical fact, made and information contained in this
presentation and responses to questions constitute “forward-looking information” or “forward-
looking statements” as those terms are defined under Canadian securities laws (“forward-
looking statements”). Forward-looking statements may be identified by terminology such
“believes”, “anticipates”, “expects”, “is expected”, “scheduled”, “estimates”, “pending”,
“intends”, “plans”, “forecasts”, “targets”, or “hopes”, or variations of such words and phrases or
statements that certain actions, events or results “may”, “could”, “would”, “will”, “should”
“might”, “will be taken”, or “occur” and similar expressions).
By their nature, forward-looking statements involve assumptions, inherent risks and
uncertainties, many of which are difficult to predict, and are usually beyond the control of
management, that could cause actual results to be materially different from those expressed
by these forward-looking. Lundin Gold believes that the expectations reflected in these
forward-looking statements are reasonable as of the date made, but no assurance can be
given that these expectations will prove to be correct. In particular, this presentation
contains forward-looking statements pertaining to: the feasibility of increasing mine and mill
throughput and the timing of implementation, the Company’s 2020 production outlook,
including estimates of gold production, grades and recoveries and its expectations regarding
all-in-sustaining costs and future cash flows, the expected timing of completion of capital
projects such as the SVR and the Company’s bridge over the Zamora River and the
Company’s plans to reactivate exploration activities and the potential of its resource
expansion drilling.
There can be no assurance that such statements will prove to be accurate, as Lundin Gold's
actual results and future events could differ materially from those anticipated as a result of
the factors discussed in the "Risk Factors" section Lundin Gold’s Annual Information Form
dated March 24, 2020 and its short form prospectus dated June 8, 2020, which are available
on SEDAR at www.sedar.com. Forward-looking information should not be unduly relied
upon.
The technical information contained in this presentation relating to the Fruta Del Norte
Project is based on a Technical Report prepared for the Company entitled “Fruta del Norte
Project, Ecuador, NI 43-101 Technical Report on Feasibility Study” dated June 15, 2016 with
an effective date of April 30, 2016 (the "Technical Report"). Information of a scientific and
technical nature in this presentation was reviewed and approved by Ron Hochstein, P.Eng.,
Lundin Gold’s President and Chief Executive Officer, who is a Qualified Persons within the
meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI
43-101”).
Unless otherwise indicated, all dollar values herein are in US dollars.
Important Information for US Investors
This presentation may use the terms “measured", “indicated“, “inferred" and “historical”
mineral resources. U.S. investors are advised that, while such terms are recognized and
required by Canadian regulations, the Securities and Exchange Commission does not
recognize them. “Inferred mineral resources" and “historical estimates” have a great
amount of uncertainty as to their existence and great uncertainty as to their economic
feasibility. It cannot be assumed that all or any part of an inferred mineral resource or a
historical estimate will ever be upgraded to a higher category. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of feasibility or other
economic studies. Further, historical estimates are not recognized under Canada’s NI 43-
101. U.S. investors are cautioned not to assume that all or any part of measured or indicated
mineral resources will ever be converted to mineral reserves.
This presentation is not an offer of securities for sale in the United States or in any other
jurisdiction. The Company’s securities have not been and will not be registered under the
United States Securities Act of 1933, as amended, and may not be offered or sold within the
United States absent registration or an application exemption from registration.
3
4. Q3 2020 Operating Highlights
4
Mined 265,298 tonnes of ore
Average mining rate of 3,750 tpd in
September
Continue to encounter better than
expected ground conditions
Underground mine development in line
with current plan
5. Work Continues on the South
Ventilation Raise
Pilot hole is being re-drilled but encountering
voids
• Requires pulling of the steel and grouting
• SVR delayed by approximately a month but is
not impacting current mine production or early
2021 production plans
5
6. Q3 2020 Operating Highlights
6
Processed 324,000 tonnes of ore at an
average daily rate of 3,340 tpd
Average head grade of 10.4 g/t
Produced 94,250 oz of gold in Q3 and
145,570 oz of gold in FY 2020
Average gold recovery was 86.8%
7. Putting Health and Safety First
• Strict COVID-19 protocols in place
• Only 34 COVID-19 cases identified at site to
date
• No known active cases currently at site
• Total Recordable Incident Rate for the first nine
months of the year was 0.51 per 200,000 hours
worked
7
8. Maintaining Our Social License
In October, a public bridge over the Zamora River
collapsed, with no reported injuries
• Lundin Gold reaffirmed its commitment to fund the
replacement of the public bridge, estimated at $3.0 million
• Following the collapse of the bridge, a group of local
residents erected a blockade on the public road used to
access Fruta del Norte
• Resolution was reached through the efforts of Lundin Gold
and the national government and the blockade was
removed
• Maintained operations at Fruta del Norte throughout the
blockade
8
10. Q3 2020 Cash Cost and All-In Sustaining Cost1
10
Cash Cost
Third Quarter 2020
Operating Expenses $32,381
Royalty Expenses $6,884
Cash Operating Costs $39,265
Gold oz sold 62,160
Cash operating cost per oz sold $632
All In Sustaining Costs
Third Quarter 2020
Cash operating cost $39,265
Corporate social responsibility $195
Treatment and refining charges $5,968
Accretion of restoration provision $9
Sustaining capital $1,264
Less: silver revenues ($1,435)
Total all-in sustaining cost $45,266
Gold oz sold 62,160
All-in sustaining cost per oz sold $728
1. Refer to “Non-IFRS Measures” in the Company’s MD&A for the third quarter of 2020
11. Q3 2020 Financial Highlights
11
$119 million of net revenues
62,160 oz of gold sold
$1,986 average realized gold
price per oz1
1. Refer to “Non-IFRS Measures” in the Company’s MD&A for the third quarter of 2020
12. Q3 2020 Income Statement
12
Revenues $118,904
Cost of goods sold
Operating Expenses $32,381
Royalty Expenses $6,884
Depletion and amortization $16,888
$56,153
Income from mining operations $62,751
Other expenses (income)
Corporate administration $2,006
Exploration $476
Finance expense (income) $14,262
Other expense (income) $157
Derivative loss $18,010
$34,971
Net income for the period $27,780
Effectively every oz of gold sold contributed approximately $1,000 towards our bottom line
13. Adjusted Net Earnings and
Operating Cash Flow1
131. Refer to “Non-IFRS Measures” in the Company’s MD&A for the third quarter of 2020
$45.8 million in adjusted net earnings
$0.20 adjusted net earnings on
a per share basis
$23.4 million generated as cash flow
from operations
$0.10 operating cash flow per share
14. Q3 2020 Cash Position1
Strong financial position after only three
months of production
• $68.8 million in cash
• $31.2 million of working capital
• Quarterly payments under senior debt and gold
prepay facility start in December 2020
• Expect to generate cash flow from operations
well in excess of long-term debt obligations
based on forecasted future production and
gold prices
141. As at September 30, 2020
16. Blue Sky Exploration Potential at High
Priority Barbasco Target
Similar structural location and orientation
within the Basin to Fruta del Norte
• Received permit and 6,000 m drill program expected
to start in early 2021
• Surface indications comparable to Fruta del Norte
include:
• Soil and rock samples anomalous in the epithermal
pathfinder elements As and Sb
• Illite and marcasite alteration
16
Barbasco
Fruta del Norte
Suarez Pull Apart
Basin - 16 km
strike length
17. Expecting to start 10,000 m underground drill program this month
Fruta del Norte Resource Expansion Drilling Program
17
South
North
Height300m
Grade of Ore Blocks
3-5 – 5.0 g/t in Au
5.0 – 10.0 g/t Au
> 10.0 g/t Au
Fruta del Norte deposit not
fully defined to the south
(Inferred Resource)
Probable Reserves
represent 67% of
Indicated Resources
1. See Annual Information Form dated March 24, 2020.
18. Remaining Construction Projects
Paste Plant Commissioning Complete
• Plant has been handed over to operations
• Operating time ramp up is ongoing
• Full production planned for Q4 2020
Zamora River Bridge
• Re-start of construction expected to start in
coming weeks
• Anticipated to be completed in early Q2 2021
South Ventilation Raise
18
Have asked for a recent pic of the paste
plant to replace current photo
19. Throughput Expansion Study
Internal study has confirmed the technical
feasibility of increasing process plant
throughput from 3,500 tpd to 4,200 tpd
• Preliminary engineering underway
• Process plant test work program underway
• Minimal impact to mining operations
• Completion by the end of 2021
• No interruption to planned production
• Low risk expansion opportunity
19
20. Maintaining Second Half 2020 Outlook
20
2H 2020 gold production
150,000 – 170,000 oz gold
Average mill production
3,200 tpd
Average head grade
10 g/t gold
Average gold recovery
85%
AISC per oz sold
$770 – $850
FY 2020 gold production
200,000 – 220,000 oz gold
