Slide 1: Candelaria Mining Complex Site Visit
TSX: LUN Nasdaq Stockholm: LUMI Candelaria Mining Complex Site Visit September 12 & 13, 2018 1 Candelaria, Atacama Region, Chile
Slide 2: Punta Padrones Port Facilities and Desalination Plant
TSX: LUN Nasdaq Stockholm: LUMI Punta Padrones Port Facilities and Desalination Plant September 12, 2018 1 Candelaria, Atacama Region, Chile
Slide 3: 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, during the Se
Slide 4: Location & General Overview
Location & General Overview Punta Padrones Port Facilities - located at Caldera on Pacific Ocean seaboard - wholly-owned by Candelaria (80% LMC; 20% Sumitomo) - commenced operations in 1995 - ships all copper concentrates produced by Candelaria Mining Complex - concentrates trucked approximately 120
Slide 5: Punta Padrones Port Facilities
Punta Padrones Port Facilities Designed, Constructed, and Operated to High Environmental Standards - concentrate shipped in covered trucks - storage under negative-pressure to effectively eliminate fugitive dust emissions from concentrate stockpile - covered conveyor system, dust collectors througho
Slide 6: Desalination Plant
Desalination Plant - commissioned in January 2013 STARTED - water delivered via ~115 km of pipeline OPERATION and booster pump IN MAY 2013 station (Bodega Sector) - capacity to produce and convey 500 liters per second (l/s) of desalinated industrial water; current operational need 500 US$ 330 REVERS
Slide 7: Desalination Plant Flow Sheet
Desalination Plant Flow Sheet 6
Slide 8: Port and Desalination Plant Milestones
Port and Desalination Plant Milestones Environmental Impact First Shipment of Copper OHSAS 18.001 Certification EIA Approval EIA Approval Study (EIS) Punta Concentrate at Punta (Candelaria Mine and Port) Desalination Plant Project Candelaria 2030 Project Padrones Port Facilities Padrones Port Facili
Slide 9: TSX: LUN Nasdaq Stockholm: LUMI
TSX: LUN Nasdaq Stockholm: LUMI 8
Slide 10: Lundin Mining Corporate Update
TSX: LUN Nasdaq Stockholm: LUMI Lundin Mining Corporate Update September 12, 2018 1 Candelaria, Atacama Region, Chile
Slide 11: 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, during the Se
Slide 12: Lundin Mining – copper dominant – competitive cost position
Lundin Mining Our Strategy Our Operations Freeport Cobalt1 Operate, upgrade and grow a Cobalt Refinery (Finland) base metal portfolio that provides leading returns for our Eagle Zinkgruvan shareholders throughout the cycle Nickel-Copper-PGMs (USA) Zinc-Lead-Copper (Sweden) – copper dominant Neves-Co
Slide 13: Our Mission
Our Mission We responsibly mine base metals vital to society, creating meaningful value for our stakeholders.
Slide 14: Our Values
Our Values Safety Respect Integrity Excellence
Slide 15: Lundin Mining – operational performance, project execution, capital management
Lundin Mining Operational Excellent Project Disciplined Capital Performance On Track Execution Management – all operations well positioned – Los Diques tailings facility – actively pursuing strategic to achieve guidance fully operational; beat all growth opportunities performance targets – first-qua
Slide 16: Capital Allocation Priorities – Disciplined Growth
Capital Allocation Priorities – Disciplined Growth – invest in low-risk, high-return brownfield expansion projects and exploration $83M to be spent on 2018 exploration programs – maintain regular dividend – prudent and accretive management of debt and cash positions – keep a flexible balance sheet t
Slide 17: Three-Year Production Outlook
Three-Year Production Outlook1 (kt attributable) Copper Zinc Nickel Forecast increase primarily on improved Forecast ~60% increase primarily on Eagle East planned on-line in 2020 Candelaria mine plan Neves-Corvo Zinc Expansion Project 244 17 201 16 234 183 13 187 14 174 13 169 176 162 10 154 166 148
Slide 18: Zinc Expansion Project (ZEP)
Zinc Expansion Project (ZEP) Comprehensive Project Review Completed Q2/18 – ramp-up of production remains on-track for late 2019 – total capital costs expected to be €270M, approximately 5% higher than original estimate, accounting for earlier delays – 2018 capital guidance reduced to $130M (from $1
Slide 19: Grinding and Flotation Plant Foundation Surface Construction – August 2018
Grinding and Flotation Plant Foundation Surface Construction – August 2018 10
Slide 20: Eagle East – Ahead of Schedule and Under Budget
Eagle East – Ahead of Schedule and Under Budget1 Existing Access Ramp Eagle Mine Dual Declines Current Advance Eagle East Ore Body 1. For more information please refer to the Company’s “Technical Report on the Eagle Mine, Michigan U.S.A” dated April 26, 2017. See also slide 15. 11
Slide 21: Zinkgruvan – Exploration Focus
Zinkgruvan – Exploration Focus Exploration areas 12
Slide 22: Zinkgruvan – New Dalby Mineral Resource
Zinkgruvan – New Dalby Mineral Resource1 Plan View Long Section Surface Existing Mine Workings and Development Existing Mine Workings Mineralization Shell and Development Mineralization Shell Inferred Mineral Resource Surface Projection of Inferred Mineral Resource Estimate 1. For more information p
Slide 23: Candelaria Investments
Candelaria Investments Candelaria North Sector Candelaria Candelaria New Excavators on Order First of 38 New CAT 793F Haul Trucks Open Pit Candelaria South Sector Candelaria South Sector Portal Candelaria Mill Optimization Project 14
Slide 24: 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 25: TSX: LUN Nasdaq Stockholm: LUMI
TSX: LUN Nasdaq Stockholm: LUMI 16
Slide 26: Candelaria Mining Complex Operation Overview and R&R Update
TSX: LUN Nasdaq Stockholm: LUMI Candelaria Mining Complex Operation Overview and R&R Update September 12, 2018 1 Candelaria, Atacama Region, Chile
Slide 27: 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, during the Se
Slide 28: Operating Location & General Overview
Operating Location & General Overview Candelaria Copper Mining Complex – located in Atacama Region (Region III), an active and friendly mining district, at low elevation (650 m ASL) – majority of workforce from Copiapó located 20 km NW – connected to well-maintained roads – excellent supporting infr
Slide 29: Integrated Mining Complex
Integrated Mining Complex – large open pit mine, four underground mines, two processing plants, wholly-owned port facilities Mine at two main hubs: Ore is processed in the concentrator plants: • Candelaria: the open pit mine The desalination plant is located and Candelaria North Sector • Candelaria:
Slide 30: Our Mission & Values
Our Mission & Values To be a world-class mining operation contributing to the lives of our employees, communities, the Atacama Region and Chile Safety Respect Integrity Excellence We are committed to We ensure safety is at We respect our employees, We drive our business by operational excellence to
Slide 31: Candelaria Mining Complex Overview
Candelaria Mining Complex Overview1 Alcaparrosa Candelaria Mine Santos – 75,000 tpd capacity Candelaria Mine processing plant – large open pit with overall mining Route 5 Tierra rate of approximately 270,000 tpd Amarilla C-397 – Candelaria North Sector North Waste underground mine; ramping towards P
Slide 32: Candelaria Property & Deposits
Candelaria Property & Deposits Alcaparrosa Santos Candelaria La Española 7
Slide 33: Exploration Resulting in Expanded Resources and Reserves
Exploration Resulting in Expanded Resources and Reserves Significant Investment in Exploration – Lundin Mining has made significant investment in exploration since acquisition – over 420,000 m of drilling have been completed and ~$100M spent in exploration through Q2/18 – of which over 82,000 m were
Slide 34: Exploration Extension Potential
Exploration Extension Potential1 SW NE Alcaparrosa Candelaria Pit Surface Topography Candelaria Norte 3rd Party Property Section Location Drillhole Trace Alcaparrosa Interpreted Prospective Santos Horizons > 0.4 % Cu Drillhole Samples $34M 2018 exploration program Candelaria 1,000 m 1. For more info
Slide 35: La Española – New Open Pit Orebody
La Española – New Open Pit Orebody 371000E 370500E 369500E 370000E 370000E 370500E 371000E 369500E N CANDELARIA PIT 6953000N 6953000N Candelaria Mill 6952500N 6952500N La EXPLORATION Española AREA LED0113 LED0109 6952000N 6952000N Drillholes Perforados 12 Drillholes Geostast Drillholes in progress 2
Slide 36: La Española – New Open Pit Orebody
La Española – New Open Pit Orebody 371000E 370500E 369500E 370000E Maiden Mineral Resource and Mineral Reserve Estimate1 – 34,958 m drilled including 22,694 m in 82 holes to-date in 2018 6953000N – 39 platforms developed for exploration and 39 platforms developed for infill drill holes Contained Met
Slide 37: La Española – New Open Pit Orebody
La Española – New Open Pit Orebody Overall strip ratio: 2.62 : 1 Cut-off grade: 0.20% copper; cost & recovery Mineral Reserve Estimate: 31.7Mt at an average 0.42% total copper Potential to commence processing ore by 2024 Can complement Candelaria open pit and underground ore, displacing processing o
Slide 38: Candelaria Mineral Resource Estimate (June 30, 2018)
Candelaria Mineral Resource Estimate (June 30, 2018 )1 Contained Metal 000's Cu Au Ag Cu Au Ag Category Tonnes % g/t g/t 000 t 000 oz 000 oz Open Pit Measured 444,914 0.48 0.11 1.52 2,121 1,578 21,710 Measured (Stockpile) 84,460 0.33 0.09 1.38 278 243 3,751 Indicated 37,725 0.37 0.10 1.33 138 119 1,
Slide 39: Candelaria M&I Mineral Resource Estimate Increment
Candelaria M&I Mineral Resource Estimate Increment1 June 30, 2017 Mineral Resource Estimate to June 30, 2018 Mineral Resource Estimate (includes mining depletion) Contained Metal 000's Cu Au Ag Cu Au Ag Category Tonnes % g/t g/t 000 t 000 oz 000 oz June 30, 2017 Mineral Resource Estimate M&I 740,825
Slide 40: M&I Mineral Resource Growth
M&I Mineral Resource Growth1 (tonnes) Candelaria UG, Alcaparrosa & Candelaria UG & La Española Candelaria UG & Santos Growth Candelaria UG Alcaparrosa Growth & Open Pit At > 100% Purchase Growth 1. For more information please refer to the Company’s Technical Report for the Candelaria Copper Mining C
Slide 41: Candelaria Mineral Reserve Estimate (June 30, 2018)
Candelaria Mineral Reserve Estimate (June 30, 2018)1 Contained Metal 000's Cu Au Ag Cu Au Ag Category Tonnes % g/t g/t 000 t 000 oz 000 oz Open Pit Proven 357,302 0.49 0.11 1.58 1,760 1,309 18,188 Proven (Stockpile) 84,460 0.33 0.09 1.38 278 243 3,751 Probable 26,448 0.38 0.10 1.47 101 89 1,250 P&P
Slide 42: Candelaria Mineral Reserve Estimate Increment
Candelaria Mineral Reserve Estimate Increment1 June 30, 2017 Mineral Reserve Estimate to June 30, 2018 Mineral Reserve Estimate (includes mining depletion) Contained Metal 000's Cu Au Ag Cu Au Ag Category Tonnes % g/t g/t 000 t 000 oz 000 oz June 30, 2017 Mineral Reserve Estimate Total P&P 497,485 0
Slide 43: Mineral Reserves Growth
Mineral Reserves Growth1 (tonnes) Candelaria UG, Open Pit & La Española Growth Open Pit, Candelaria UG & Alcaparrosa Candelaria UG Growth Open Pit Growth Growth At Purchase > 60% Growth 1. For more information please refer to the Company’s Technical Report for the Candelaria Copper Mining Complex, N
Slide 44: Candelaria Copper Production Profile
Candelaria Copper Production Profile1 (kt; 100% basis) Target 2024 Production of Española ore and extended life of Alcaparrosa and Santos mines 189 189 184 178 174 172 167 165 156 159 152 147 137 137 127 115 103 94 66 57 2016A 2017A 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20
Slide 45: 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 46: TSX: LUN Nasdaq Stockholm: LUMI
TSX: LUN Nasdaq Stockholm: LUMI 21
Slide 47: Candelaria Social Performance and Community Investments
TSX: LUN Nasdaq Stockholm: LUMI Candelaria Social Performance and Community Investments September 12, 2018 1 Candelaria, Atacama Region, Chile
Slide 48: Social Performance & Community Investments
Social Performance & Community Investments 2
Slide 49: Social Investment – Copiapó Province
Social Investment – Copiapó Province Tierra Amarilla Caldera Collaboration Punta Frodden and Refurbishment of the Painting Potrerillo´s Square in Collaboration Agreement Fish Market Tierra Amarilla Refurbishment of Luis Uribe Tierra Agreement Productivity Program Swimming Pool Heritage Houses Amaril
Slide 50: Strategic Investments – Scholarships Minera Candelaria
Strategic Investments – Scholarships Minera Candelaria Scholarship program focused on breaking down barriers to higher education, particularly from the communities of Copiapo, Tierra Amarilla and Caldera that surround our mine. A total of 76 students (55% female) from the University of Atacama were
Slide 51: Strategic Investments in Caldera
Strategic Investments in Caldera Caldera Collaborative Agreement Signed agreement with the Municipality of Caldera which aims to promote the sustainable development of the community. Five-year term from 2018-2023 Supporting Sustainable Fishing Candelaria through the Lundin Foundation is supporting t
Slide 52: Strategic Investments in Tierra Amarilla
Strategic Investments in Tierra Amarilla Refurbishment of the Tierra Amarilla swimming pool The municipal pool of Tierra Amarilla was opened to the community in January 2018 after flood event in May 2017. Restoring Heritage Homes in Tierra Amarilla In partnership with ProCultura Foundation and the M
Slide 53: Strategic Investments – Incubating Innovation
Strategic Investments – Incubating Innovation At Candelaria we established Inventa Comunidad, a community based innovation program to develop solutions to pressing environment and social issues, particularly in the communities of Tierra Amarilla, Copiapó and Caldera. Entrepreneurs with strong potent
Slide 54: Disaster Response and Relief
Disaster Response and Relief Candelaria has provided flood relief on two occasions to our local communities. The first occurred in the early months of Lundin Mining’s new ownership. Following the March 25, 2015 catastrophe due to the flood in the Atacama Region, we provided immediate relief and aid
Slide 55: TSX: LUN Nasdaq Stockholm: LUMI
TSX: LUN Nasdaq Stockholm: LUMI 9
Slide 56: Candelaria Production and Capital Projects Update
TSX: LUN Nasdaq Stockholm: LUMI Candelaria Production and Capital Projects Update September 13, 2018 1 Candelaria, Atacama Region, Chile
Slide 57: 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, during the Se
Slide 58: Candelaria District Safety Performance
Candelaria District Safety Performance Candelaria District YTD - TRIF : 0.17 - REC Injuries: 6 Recordable injuries 350 9 - AIF: 1.09 - FAI: 33 Q1: 2 total (0 employee / 2 contractors) - Total Injuries: 39 Q2: 4 total (1 employee / 3 contractors) 8 300 293 285 - Target TRIF 2018: 0.3 - Target AIF 201
Slide 59: Candelaria Production
Candelaria Production On Track to Achieve Full-Year Guidance – H1/18 copper production of 66.2 kt (100% basis) Copper Production & Cash Cost Outlook at $1.71/lb cash cost (100% basis; kt & $/lb Cu, net of by-product credits) – copper head grade modestly exceeded plan for the first half, offset by mi
Slide 60: Candelaria 2017 Copper Production Profile
Candelaria 2017 Copper Production Profile1 (kt; 100% basis) Target 2024 Production of La Española ore and extended life of Alcaparrosa and Santos mines 189 189 184 178 174 172 167 165 156 159 152 147 137 137 127 115 103 94 66 57 2016A 2017A 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Slide 61: Candelaria 2017 LOM Processing Plan
Candelaria 2017 LOM Processing Plan Copper Production Profile by Ore Source1 (kt; 100% basis) 189 189 184 178 7 172 14 174 165 20 156 159 13 45 152 17 13 147 9 137 71 16 137 29 75 44 20 127 45 45 70 27 115 69 51 25 103 56 59 43 94 48 37 38 65 31 14 64 61 19 55 66 18 67 54 57 57 111 37 46 88 86 74 70
Slide 62: Mineral Reserve Open Pit Comparison
Mineral Reserve Open Pit Comparison1 CoG: 0.200% CoG: 0.197% CoG: 0.170% Phase 13 Phase 11 Phase 11 Phase 11 Phase 09 Phase 09 Phase 09 Phase 10 Phase 10 Phase 10 Phase 13 Phase 13 Phase Phase 12 Phase 12 12 June 2016 Mineral Reserve Estimate June 2017 Mineral Reserve Estimate June 2018 Mineral Rese
Slide 63: Setting Up for 2019 Production
Setting Up for 2019 Production 2017 LOM plan calls for more waste material to be moved in 2018, compared to the previous plan – to meet production requirements and flexibility for future years – 2017 LOM total open pit waste movement is targeted at 74Mt in 20181 – in H1/18, 28 Mt of total waste was
Slide 64: Underground Production Ramp-Up
Underground Production Ramp-Up1 Candelaria Underground North Sector Candelaria underground mines currently permit-limited at 14,000 tpd 2017 LOM Plan Candelaria Underground at 14,000 tpd until 2035 – 2019 at an average of 10,900 tpd 2,000 tpd Candelaria South Sector beginning late 2019 10,000 tpd Ca
Slide 65: Capital Projects Update
Capital Projects Update 10 Candelaria Mill – Copper / Gold / Silver – Atacama Region, Chile
Slide 66: Capital Investment Initiatives
Capital Investment Initiatives Forecast 2018-2021 Capital Expenditures 2018 2019 2020 2021 Capitalized Stripping Capitalized Stripping LosLos Diques Diques TSF(All TSF (AllPhases) Phases) MillOptimization Mill Optimization Investment Investment CandelariaSouth Candelaria SouthSector Sector UG NewMin
Slide 67: Los Diques Tailings Storage Facility
Los Diques Tailings Storage Facility 12
Slide 68: Los Diques Tailings Storage Facility
Los Diques Tailings Storage Facility Completed Ahead of Schedule and Under Budget – transitioned to operations team for commissioning May 31st – operational permit granted August 1st, 2018 – completed under budget at $296M, compared to original budget of $396M – recognized by SERNAGEOMIN with award
Slide 69: Candelaria Mill Optimization Project
Candelaria Mill Optimization Project Low-Risk Investments to Increase Metal Production, Reduce Costs and Improve Safety – primary crusher motor upgrade – ball mill re-powering; pebble circuit upgrade; cyclone and feed pump upgrades – flotation circuit upgrades – front-end desalination plant and pipe
Slide 70: Candelaria Mill Optimization Project
Candelaria Mill Optimization Project Primary Crusher Upgrade Ball Mill Repower Cyclones & Feed Pumps Flotation Cells Crushed Pebble Circuit Desal Plant Debottlenecking - Polyurea coating failures - Repair DAF Tank - Improve Lime Dosing - Replace Motor - 32 or 34 Pole Motor CV02 VDFs - New pinion 34
Slide 71: 1. For more information please also refer to the Company’s Technical Report for the
1 16 1. For more information please also refer to the Company’s Technical Report for the Candelaria Copper Mining Complex, November 30, 2017. See also slide 27.
Slide 72: Candelaria Mill Optimization
Candelaria Mill Optimization On Schedule and On Budget – on-track for completion end of 2019; 70% of equipment orders placed by end of Q2/18 – 2018 capex forecast reduced to $30M, from $50M, primarily on timing of spend – works conducted during maintenance activities to avert production loss or mill
Slide 73: Candelaria Underground Mine Expansions
Candelaria Underground Mine Expansions1 Candelaria Norte South Sector South Sector Ramp South Sector Portal 18 1. For more information please refer to the Company’s Technical Report for the Candelaria Copper Mining Complex dated November 30, 2017
Slide 74: Candelaria Underground Mine Expansions
Candelaria Underground Mine Expansions Significant Underground Exploration South Sector Success Under Lundin Mining Ownership Looking west – Candelaria North and South Sectors underground Mineral Reserve estimate now 101Mt at 0.85% copper – South Sector remains significantly under-drilled Increasing
Slide 75: South Sector Horizontal Development
South Sector Horizontal Development South Sector Development North Sector Existing Facilities Susana 10 Susana 10 (ore) Jul Actual Aug Plan Sept Plan Candelaria North Sector South Sector Ramp Candelaria South Sector Susana 10 N 20
Slide 76: South Sector Development Advancing On Track
South Sector Development Advancing On Track Development Advance Rates 350 12.0 300 10.0 Average meters per day 250 Total meters per month 8.0 200 6.0 150 4.0 100 2.0 50 0 - Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Actual Mts/ Month Budget Mts/ Month Actual Avg m/day Budget Avg m/day 2
Slide 77: Mine Fleet Reinvestment
Mine Fleet Reinvestment Significantly Increased Production Profile and Extended Mine Life on Exploration Success – 20-year LOM when the open pit began production in 1994; most open pit equipment dates back to when operation opened – Mineral Reserve estimates now support mine life beyond 2035 New Equ
Slide 78: Open Pit Fleet Upgrade
Open Pit Fleet Upgrade Fleet Upgrade B&C F New Haulage Fleet LOM Contributions km/hr km/hr difference – 38 CAT 793Fs Loaded Uphill 11 13 +18% Downhill 15 17 +13% – lower maintenance costs Horizontal 40 42 +5% Uphill 23 25 +9% – higher availability / added reliability Emtpy Downhill 35 37 +6% Horizon
Slide 79: New Pit Equipment Delivery Schedule
New Pit Equipment Delivery Schedule Truck 793F Hydraulic Hydraulic Loader 994 Drill PV351 Bulldozer Motograder Wheel dozer Water Truck Roller CS79 Excavator 390 Excavator 6020 Excavator 6060 (D10-D11) (24M -16M) (834K) 777 Year Quarter 2018 2018 1Q 2Q 1 3Q 5 1 1 5 2 4 3 4Q 10 2 2 2019 2019 1Q 13 4 2
Slide 80: Candelaria Underground Fleet Investment Plan
Candelaria Underground Fleet Investment Plan Average annual production achieved – loading and 2016 – 7,000 tpd transport with contractors Transition to owner-operator and new underground equipment approved in Q2/17 2017 – 7,200 tpd Development of Candelaria South Sector approved in Q4/17 AD60 Underg
Slide 81: Candelaria Highlights
Candelaria Highlights Strong Operational Excellent Project Production Growth Performance Execution within a Long-Life Asset – on target to achieve – Los Diques tailings facility – continued focus on low- annual guidance fully operational; beat all risk, high-return brownfield performance targets pro
Slide 82: 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 Candelaria technical reports
Slide 83: TSX: LUN Nasdaq Stockholm: LUMI
TSX: LUN Nasdaq Stockholm: LUMI 28