Lundin Gold Agreement With Government Of Ecuador

VANCOUVER, BC - Lundin Gold Inc. has successfully completed the negotiation of the definitive form of the Exploitation Agreement for the Fruta del Norte Project, its flagship gold project in Ecuador.

Lundin Gold has been negotiating the terms and conditions of the Exploitation Agreement for the Fruta del Norte Project with the Government of Ecuador over the past six months. The Exploitation Agreement, combined with existing laws and regulations, establishes the fiscal terms and conditions for the development of the Fruta del Norte Project and its completion marks a key milestone in the Project plan. The definitive form of the Exploitation Agreement has received the approval of the Government of Ecuador.

Lundin Gold's President and Chief Executive Officer, Ron Hochstein, said "The completion of the definitive form of the Exploitation Agreement represents a major accomplishment for the Company and for the Government of Ecuador. The parties have crafted an agreement in which the fiscal terms are significantly better than those previously considered for the Fruta del Norte Project and which ensures that the people of Ecuador will benefit from the Project's future development. Lundin Gold has been pleased with the level of support and cooperation, which we have received from the Government of Ecuador and local governments and communities, and we look forward to building on these fruitful relationships. With the terms of our key mining agreement settled, we can now proceed with the finalization of the feasibility study and project financing."