Slide 1: Scotiabank Mining Conference
TSX: LUN OMX: LUMI Scotiabank Mining Conference December 5, 2017 Neves-Corvo, Portugal 1
Slide 2: Cautionary Statements
Cautionary Statements Caution Regarding Forward-Looking Information and Non-GAAP Performance Measures All statements, other than statements of historical fact, made and information contained or incorporated by reference in or made in giving this presentation and responses to questions is "forward-lo
Slide 3: Lundin Mining
Lundin Mining High Quality Meaningful Scale Financial Strength Competitive Mines Growth Oriented - strong margins at all - exploration upside and - proven track record for operations high value expansion rigorous investment projects at all operations approach, focused on - demonstrated operational v
Slide 4: Geographically Diversified
Geographically Diversified Freeport Cobalt1 Cobalt Refinery Zinkgruvan (Finland) Zinc-Lead-Copper (Sweden) Eagle Nickel-Copper-PGMs (USA) Neves-Corvo Copper-Zinc (Portugal) Candelaria2 Copper-Gold-Silver (Chile) 1. Lundin Mining holds an indirect 24% equity stake in the Freeport Cobalt Oy business w
Slide 5: Operating Highlights – YTD 2017
Operating Highlights – YTD 2017 Continued Excellent Performance at Candelaria and Eagle All Projects Advancing on Schedule and on Budget Candelaria delivered strong copper production on higher head grades and remains on target to meet full-year production and cash cost guidance Neves-Corvo copper pr
Slide 6: Revenue Breakdown – YTD 2017
Revenue Breakdown – YTD 2017 Sales of $1.54B Lead Other 3% 3% Gold 6% Zinkgruvan 10% Nickel Eagle 6% 14% Zinc 14% Neves-Corvo Copper Candelaria 68% 16% 60% By Operation By Metal 6
Slide 7: 2018 Production and Cash Cost Guidance
2018 Production and Cash Cost Guidance Attributable Production1 and C1 Cash Cost2 (t and $/lb, net of by-products) Copper Candelaria (80%) 104,000 – 109,000 $1.70/lb Eagle 15,000 – 18,000 Neves-Corvo 39,000 – 44,000 $1.30/lb Zinkgruvan 1,000 – 2,000 Total Attributable 159,000 – 173,000 Nickel Eagle
Slide 8: Production Outlook
Production Outlook1 2018 2019 2020 Copper Candelaria (80%) 104,000 – 109,000 116,000 – 121,000 132,000 – 137,000 Eagle 15,000 – 18,000 12,000 – 15,000 12,000 – 15,000 Neves-Corvo 39,000 – 44,000 40,000 – 45,000 41,000 – 46,000 Zinkgruvan 1,000 – 2,000 1,000 – 2,000 2,000 – 3,000 Total Attributable 1
Slide 9: 2018 Capital Expenditure Guidance
2018 Capital Expenditure Guidance Capital Expenditures1 (US$M) Total Capitalized Stripping2 200 Candelaria Los Diques Facility 60 – optimized new life-of-mine (LOM) plan New Mine Fleet Investment 75 – re-phasing of pit and capitalized stripping increased Mill Optimization Investment 50 to align with
Slide 10: Balance Sheet Strength and Flexibility
Balance Sheet Strength and Flexibility Cash balance at October 25, 2017 of approximately $2.2B and net cash of approximately $1.2B Subsequently redeemed $550M principal of 7.50% Senior Secured 2020 Notes in November 2017 Cash and Cash Equivalents Approximate Liquidity Position (End of Quarter) (Nove
Slide 11: Capital Allocation Strategy Focus on Disciplined Growth
Capital Allocation Strategy Focus on Disciplined Growth Invest in high-return brownfield expansion projects and exploration Service regular dividend Prudent and accretive management of bond debt and cash positions Keep flexible balance sheet to move quickly on compelling growth opportunities – parti
Slide 12: Operations & Projects
Operations & Projects Candelaria – Copper / Gold / Silver – Region III, Chile 12
Slide 13: Responsible Mining
Responsible Mining Safety Performance Environmental Performance TRIF per 200,000 person hours worked - excellent track record and improving performance each year 5.6 - increased reporting and disclosure practices International Green Apple Award for Environmental Best Practice for Galmoy 3.5 Wetlands
Slide 14: Candelaria
Candelaria YTD copper production of 141.2 kt (100% basis) and cash costs of $1.17/lb copper – on target to meet full-year production and cash cost guidance1 Copper Production & Cash Cost (100% basis; kt & $/lb Cu, net of by-product credits) Two-year Mill Optimization initiative to increase throughpu
Slide 15: Candelaria – LOM 2017
Candelaria – LOM 2017 Life of mine plan production improved significantly from LOM 2016. > 20% copper added in 10 year plan – 2018 and 2019 production impacted to address short-term south east pit wall issues v v v v 15
Slide 16: Candelaria – Los Diques Tailings Project
Candelaria – Los Diques Tailings Project Phase 0 completed. Phase 1, 2 and 3 advancing Water being placed behind dam First tailings placement forecast in Q1/18 Total forecast capital unchanged at $295M Forecast 2018 $45M to complete Additional $15M in 2018 on advancing Phases 2 & 3 for overall LOM c
Slide 17: Candelaria Exploration Extension Potential
Candelaria Exploration Extension Potential1 SW NE Candelaria Pit Candelaria Norte Alcaparrosa Surface Topography 3rd Party Property Section Location Drillhole Trace Alcaparrosa Interpreted Prospective Horizons Santos > 0.4 % Cu Drillhole Samples Candelaria $35M exploration program advancing with pos
Slide 18: Eagle
Eagle Nickel / Copper / PGMs – Michigan, U.S.A. 18
Slide 19: Eagle
Eagle YTD production of 17.8 kt nickel and 17.2 kt copper, and cash costs of $0.87/lb nickel Nickel, Copper Production & Cash Cost (kt & $/lb Ni, net of by-product credits) Further 2017 cash cost guidance improvement1 – improved to $1.10/lb nickel on strong metal production to date and higher copper
Slide 20: Eagle East Project
Eagle East Project Existing Access Ramp Eagle Mine Advancing both declines Eagle East Deposit 1,000 m 1620
Slide 21: Neves-Corvo
Neves-Corvo Copper / Zinc – Portugal 21
Slide 22: Neves-Corvo
Neves-Corvo YTD production of 26.2 kt copper and 55.5 kt zinc, and Copper, Zinc Production & Cash Cost cash costs of $0.95/lb copper (kt & $/lb Cu, net of by-product credits) – mine sequencing and complex copper ore metallurgy impacting throughput and recovery Last Five Quarters – full-year copper a
Slide 23: Neves-Corvo Overview
Neves-Corvo Overview Zinc Plant Expansion New Conveyor Ramp 23
Slide 24: Zinkgruvan
Zinkgruvan 24 Zinc / Lead / Copper – Sweden
Slide 25: Zinkgruvan
Zinkgruvan YTD production of 56.5 kt zinc and 21.4 kt lead, and cash costs of $0.34/lb zinc – full-year cash cost guidance improved to $0.35/lb on Zinc, Lead Production & Cash Cost (kt & $/lb Zn, net of by-product credits) YTD performance – full-year zinc production guidance lowered on lower Last Fi
Slide 26: Exploration areas
Zinkgruvan SO Reta EERO Zinc - Lead ore —~{ __ gy Orebro. 1B Mined out area { 5: © Peloration areas
Slide 27: Lundin Mining
Lundin Mining High Quality Competitive Mines – strong margins at all operations Meaningful Production Scale & Growth – internal growth projects and exploration upside at all operations Financial Strength – from profitable assets run with disciplined capital allocation 27
Slide 28: Appendices
TSX: LUN OMX: LUMI Appendices 28
Slide 29: 2017 Production and Cash Cost Guidance
2017 Production and Cash Cost Guidance C1 cash cost guidance improved for Eagle and Zinkgruvan. Production guidance at Neves-Corvo lowered in part allowing for impact of recent and potential for further labour action. Attributable Production1 and C1 Cash Cost2 (t and $/lb, net of by-products) Copper
Slide 30: 2017 Capital Expenditure and Exploration Guidance
2017 Capital Expenditure and Exploration Guidance Capital Expenditures1 (US$M) Los Diques estimated cost unchanged at $295M Total Capitalized Stripping2 120 – on time and on budget for use in early 2018 Los Diques Facility 135 Other Candelaria Sustaining 80 Candelaria Total Candelaria (100% basis) 3
Slide 31: Candelaria – Life of Mine 2017 Plan
Candelaria – Life of Mine 2017 Plan1 Significant increase in Mineral Reserves estimates extending LOM to 2035 Open pit re-phased to improve LOM production profile and to reflect forecast impact in 2018 of October 31, 2017 localized slide in Phase 9 Copper production forecast increased over 10-year a
Slide 32: Candelaria – Phase 9 Localized Wall Slide
Candelaria – Phase 9 Localized Wall Slide Localized slide in waste rock of 600 to 700kt slumped down to pit floor, covering part of remaining Phase 9 ore Resulted in revised pit planning to advance into Phase 10 Forecast 2018 copper metal down by 20% from re-phasing and Phase 9 slide. Currently mini
Slide 33: Candelaria – Mine Fleet Investment
Candelaria – Mine Fleet Investment Most open pit equipment dates from mid-1990s Candelaria Mine life estimate now to 2035 New mine equipment will increase haulage capacity and efficiency Change to hydraulic shovels in backhoe configuration - Cat 6060 excavators 38 new latest generation Cat 793F truc
Slide 34: Candelaria – Underground Expansion
Candelaria – Underground Expansion1 Candelaria Norte 1. For 34more information please refer to the Company’s Technical Report for the Candelaria Copper Mining Complex, November 30, 2017
Slide 35: Candelaria – Underground Mine Expansion
Candelaria – Underground Mine Expansion1 Looking west Significant underground exploration success since acquisition 2017 LOM Candelaria underground P&P Mineral Reserve Final Open Pit estimate now 65.7Mt at 0.89% copper Environmental permits approved to expand Candelaria underground from 6ktpd to 14k
Slide 36: Candelaria – Plant Optimization
Candelaria – Plant Optimization1 Primary Crusher Upgrade Ball Mill Repower Cyclones & Feed Pumps Opportunities identified during mill expansion Feasibility Study – primary crusher motor upgrade – ball mill re-powering – cyclone and feed pump upgrades – flotation circuit upgrades 32 34 P l M – pebble
Slide 37: Candelaria Complex – Mineral Resources and Mineral Reserves
Candelaria Complex – Mineral Resources and Mineral Reserves1 Ownership 80% Location Region III, Chile Mine life +15 years 2017 exploration budget ~$32M P&P Copper Mineral Reserves 2,785 kt contained (497,484 kt @ 0.6%) M&I Copper Mineral Resources 5,153 kt contained (740,895 kt @ 0.7%) Inferred Copp
Slide 38: Eagle Mine and Eagle East – Mineral Resources and Mineral Reserves
Eagle Mine and Eagle East – Mineral Resources and Mineral Reserves1 Ownership 100% Location Michigan, USA Mine life 7 years 2017 exploration budget ~$18M P&P Nickel Mineral Reserves 130 kt contained (4,734 kt @ 2.7%) M&I Nickel Mineral Resources 158 kt contained (4,449 kt @ 3.6%) P&P Copper Mineral
Slide 39: Eagle East – Meaningful Addition to Production Profile
Eagle East – Meaningful Addition to Production Profile Nickel Production Profile1 Copper Production Profile1 (kt) (kt) 25 25 20 20 15 15 10 10 5 5 0 0 2016A 2017 2018 2019 2020 2021 2022 2023 2016A 2017 2018 2019 2020 2021 2022 2023 Eagle Eagle East Eagle Eagle East 1. Refer to the April 10, 2017 ne
Slide 40: Neves-Corvo – Mineral Resources and Mineral Reserves
Neves-Corvo – Mineral Resources and Mineral Reserves1 Ownership 100% Location Alentejo region, Portugal Mine life +10 years 2017 exploration budget ~$4M P&P Zinc Mineral Reserves 2,337 kt contained (30,409 kt @ 7.7%) M&I Zinc Mineral Resources 6,458 kt contained (106,511 kt @ 6.1%) Inferred Zinc Min
Slide 41: Zinc Expansion Project Neves-Corvo
Zinc Expansion Project Neves-Corvo1 – average annual zinc production of approximately 150,000 tpa post Neves-Corvo with ZEP, and Base Case (BC) without ZEP expansion – estimated life of mine C1 cash cost of $0.28/lb copper net of by-product credits, or alternatively, $0.29/lb zinc net of by-product
Slide 42: Zinkgruvan - Mineral Resources and Mineral Reserves
Zinkgruvan - Mineral Resources and Mineral Reserves1 Ownership 100% Location Askersund, Sweden Mine life +10 years 2017 exploration budget ~$10M P&P Zinc Mineral Reserves 855 kt contained (11,901 kt @ 7.2%) M&I Zinc Mineral Resources 1,458 kt contained (15,668 kt @ 9.3%) Inferred Zinc Mineral Resour
Slide 43: NI 43-101 Compliance
NI 43-101 Compliance Unless otherwise indicated, Lundin Mining Corporation (the “Company”) has prepared the technical information in this presentation including Mineral Reserve and Mineral Resource estimates (“Technical Information”) based on information contained in the technical reports and news r
Slide 44: TSX: LUN OMX: LUMI
TSX: LUN OMX: LUMI 44