Lundin Gold Inc.

“Exploration success continued at the Company’s highly prospective land package following completion of the largest annual drill program to date in the district since FDN’s discovery, with 80,057 metres drilled across the conversion, near-mine, and regional programs.  Results of the conversion program and exploration of the southern limit of the FDN deposit (FDNS) were incorporated in the geological and the mineral resource model and the updated estimate of Mineral Resources and Reserves for Fruta del Norte was announced on February 18, 2025.”

Annual report 2024A · The company itself

“The Company has the rights to mineral concessions targeted for exploration in Ecuador, outside of Fruta del Norte. The exploration for, and development of, new mineral deposits involves significant risks which, even with a combination of careful evaluation, experience and knowledge, may not be eliminated. Few exploration properties are ultimately developed into producing mines.”

Annual report 2024A · The company itself

“The Company’s operations can be subject to risks and hazards that are inherent in the mining industry, including, but not limited to, unanticipated variations in grade and other geological problems, underground conditions, backfill quality or availability, metallurgy, variability of ore types and other processing issues, critical equipment or process failure, the lack of availability of input materials and equipment, disruption to power supply, geotechnical incidents such as falls of ground underground, subsidence or landslides, accidents, labour force disruptions, supply chain/logistics disruptions, force majeure events, unanticipated transportation disruptions or costs, consumable prices or availability and weather conditions, any of which can materially and adversely affect, among other things, the safety of personnel, production quantities and rates, costs and expenditures, and contractual obligations.”

Annual report 2024A · The company itself

“The process plant expansion project is complete, and we anticipate increased throughput and recovery in 2025, with a target of 5,000 tonnes per day (“tpd”) increasing to 5,500 tpd in 2026.”

Annual report 2024A · The company itself

“The Company is also subject to credit risk associated with its trade receivables. The Company manages this risk by only selling to a small group of reputable customers with strong financial statements.”

Annual report 2024A · The company itself

“Our commitment to sustainability remains unwavering. Last year, we published our 2023 Sustainability Report, integrating our climate report, and continue to prioritize responsible mining practices and community development.”

Annual report 2024A · The company itself

“The local companies that participate in the Lundin Foundation’s local supplier development program continued to provide products and services to FDN, while also advancing growth strategies. The Lundin Foundation’s Soy Emprendedora program, which supports women led businesses in the Province of Zamora Chinchipe, continued to show positive impacts and results.”

Annual report 2024A · The company itself

“Due to the power shortages in Ecuador, mining and milling activities were modified in order to allocate available power from the national grid and self-generation to ensure process plant availability.  The average ore grade milled was 11.3 grams per tonne with average recovery at 87.1%, both improvements from the third quarter of 2024.  The Company sold a total of 131,175 oz of gold, consisting of 88,650 oz in concentrate and 42,525 oz as doré at an average realized gold price of $2,664 per oz sold for total revenues from gold sales of $349 million.”

Annual report 2024A · The company itself

“Following increased rainfall in Ecuador since the start of 2025, power supply from the national grid has normalized. Notwithstanding this, the Company expects to complete the commissioning of four additional diesel generators purchased in 2024 by the end of the first quarter of 2025 which will allow the FDN process plant to run slightly below capacity in the event of recurrence of power disruption from the national grid.”

Annual report 2024A · The company itself

“Unit costs are anticipated to be higher compared to 2024 and are primarily attributable to increased royalties and employee profit sharing resulting from the increase in the assumed gold price from $1,900 per oz to $2,500 per oz, an increase in power tariffs, and an increase in sustaining capital expenditures.”

Annual report 2024A · The company itself

“The impacts of climate change may lead to changes in the price and availability of goods and services required for Fruta del Norte’s operations, which depend on the regular supply of electricity, consumables such as diesel, and other supplies to operate efficiently. The Company’s operations also depend on service providers to transport these consumables and other goods to Fruta del Norte and to transport doré and concentrate produced by the Company to refiners and smelters, respectively. The effects of extreme weather described above and changes in legislation and regulation on the Company’s suppliers and their industries may cause limited availability or higher price for these goods and services, which could result in higher costs or production disruptions.”

Annual report 2024A · The company itself

“The Company is subject to certain risks and possible political and economic instability specific to Ecuador, arising from change of government, political unrest, labour disputes, invalidation of government orders, permits or property rights, legal proceedings and referendums seeking to suspend mining activities, unsupportive local and regional governments, risk of corruption, military repression, war, civil disturbances, criminal and terrorist acts, hostage taking, changes in laws, expropriation, nationalization, renegotiation or nullification of existing concessions, agreements, licences or permits and changes to monetary or taxation policies. The occurrence of any of these risks may adversely affect the mining industry, mineral exploration and mining activities generally or the Company specifically and could result in the impairment or loss of mineral concessions or other mineral rights.”

Annual report 2024A · The company itself

“Ecuador is experiencing a period of political uncertainty. Ecuador’s presidential election on February 9, 2025 resulted in an inconclusive outcome leading to a run-off election scheduled for April 13, 2025. Candidates in the run-off election are the incumbent president Daniel Noboa, from the National Democratic Action party, and Luisa González, from the Citizen Revolution party. It is uncertain whether either candidate will bring political stability to the country given a variety of challenges including, but not limited to, lack of a clear majority in the National Assembly, the significant national debt, the security situation, the inadequacy of power supply, and the condition of the economy.”

Annual report 2024A · The company itself

“Recently, Ecuador has experienced periods of heightened security risk, due in part to the increase of organized crime and illegal mining in the country. Risks and uncertainties include, but are not limited to, terrorism, hostage taking, extortion, gang activities, military repression, labour unrest and war or civil unrest. Opposition to mining could arise and such opposition may be violent. Resistance or unrest in Ecuador could have a material adverse effect on the Company’s operations, including supply chains and logistics, and profitability.”

Annual report 2024A · The company itself

“The Company’s relationships with communities near where it operates and other stakeholders are critical to ensure the future success of Fruta del Norte and the exploration and development of the Company’s other concessions. The Company’s mineral concessions, including Fruta del Norte, are located near rural and communities of Indigenous Peoples, some of which contain groups that have been opposed to mining activities from time to time in the past, which may affect the operations at Fruta del Norte and its exploration and development activities on its other concessions in the short and long term.”

Annual report 2024A · The company itself

“Income from mining operations increased to $703 million during 2024 compared to $435 million in 2023. This increase is primarily attributable to an increase in average realized gold price from $1,958 to $2,464 per oz sold which increased revenues from $903 million to $1.19 billion, partially offset by a resulting increase in royalties.”

Annual report 2024A · The company itself

“The Company is subject to commodity price risk from fluctuations in the market prices of gold and silver. Commodity price risks are affected by many factors that are outside the Company’s control including global or regional consumption patterns, the supply of and demand for metals, speculative activities, the availability and costs of substitutes, inflation, and political and economic conditions.”

Annual report 2024A · The company itself

“We are committed to maintaining our low-cost producer status and expect to generate significant free cash flow in excess of $500 million in 2025, based on a gold price of $2,500 per ounce.”

Annual report 2024A · The company itself

“Revenues and related trade receivables for concentrate sales are initially recorded at provisional gold prices. Subsequent determination of final gold prices can range from one to four months after shipment depending on the customer.”

Annual report 2024A · The company itself

“Highlights of sustaining capital projects completed or substantially completed during 2024 include implementation of a mine dispatch system, the upgrade of the surface haul road, replacement of the concrete batch plant, primary crusher upgrade, camp refurbishment, and improvements to the sewage treatment plants.  Significant progress was made on preliminary works for future tailings storage facility (“TSF”) expansion.  Four additional diesel-powered generators were purchased, and the units are expected to be commissioned by the end of the first quarter of 2025.”

Annual report 2024A · The company itself

“Both metrics were impacted by higher gold prices resulting in higher royalties and profit sharing for which the portion attributable to employees is recorded in operating costs as well as higher diesel consumption due to the operation of our existing power generation units to reduce our power consumption from the national grid.  Income from mining operations was $215 million and the Company generated adjusted free cash flow of $164 million from operations, or $0.68 per share.  EBITDA and net income were $232 million and $129 million, respectively.”

Annual report 2024A · The company itself

“The impacts of climate change may lead to changes in the price and availability of goods and services required for Fruta del Norte’s operations, which depend on the regular supply of electricity, consumables such as diesel, and other supplies to operate efficiently. The Company’s operations also depend on service providers to transport these consumables and other goods to Fruta del Norte and to transport doré and concentrate produced by the Company to refiners and smelters, respectively. The effects of extreme weather described above and changes in legislation and regulation on the Company’s suppliers and their industries may cause limited availability or higher price for these goods and services, which could result in higher costs or production disruptions.”

Annual report 2024A · The company itself

“Our initiatives, such as the mental health and well-being program in our local communities and the support for local businesses, demonstrate our dedication to creating lasting positive impacts.”

Annual report 2024A · The company itself

“The Company is committed to upholding and respecting the United Nations (“UN”) Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, and to honouring our commitment as a signatory of the UN Global Compact. Notwithstanding the Company’s efforts to conduct its activities in a manner consistent with those principles, Lundin Gold may not be able to identify and assess all potential human rights impacts of its business. Any potential human right violations either internally or externally, such as through third party business relationships, corruption, unequal treatment of ethnic minorities, gender discrimination, use of child labour, land use rights, supply chain sourcing, could have a material adverse impact on the Company’s reputation, as well as present legal and financial risks arising from failing to respect and/or reinforce human rights.”

Annual report 2024A · The company itself

“Tables are expressed in thousands of U.S. dollars, except share and per share amounts) Key Talent Recruitment and Retention Recruiting and retaining qualified personnel is critical to Lundin Gold’s success. Lundin Gold is dependent on the services of key executives, including its President and Chief Executive Officer, and other highly skilled and experienced executives and personnel focused on managing Lundin Gold’s interests. The number of persons skilled in the financing, development, operations and management of mining properties is limited and competition for such persons is intense. The inability of Lundin Gold to successfully attract and retain highly skilled and experienced executives and personnel could have a material adverse effect on Lundin Gold’s business, financial condition and results of operations.”

Annual report 2024A · The company itself

“The TSF may be subject to ground movements, deteriorating ground conditions, or extraordinary weather events. Although the Company conducts extensive maintenance and monitoring, engages external consultants and incurs significant costs to maintain the TSF, unanticipated failures or damage as well as changes to laws and regulations may occur that could cause injuries, production loss, environmental damage which may affect nearby communities, a loss event in excess of insurance coverage, reputational damage, potential for a temporary shutdown of a portion or all of the operations at Fruta del Norte, or other materially adverse effects on the Company’s operations and financial condition resulting in significant monetary losses, restrictions on operations and/or legal liability.”

Annual report 2024A · The company itself

“Physical risks related to climate change may include more extreme temperatures, precipitation levels and other weather events. Extreme high or low temperatures could impact the operation of equipment and the safety of personnel at Fruta del Norte, which could result in damage to equipment, injury to personnel and production disruptions. Increases or decreases in precipitation levels or extreme weather events, such as severe storms or floods or drought, which may be more probable and more extreme due to climate change, may damage critical infrastructure such as public roads, bridges and ports, lead to a decline in power availability, negatively impact operations, disrupt production, lead to water management challenges, landslides or breach of containment facilities.”

Annual report 2024A · The company itself

“A significant milestone in 2024 was the complete repayment of our debt, including the buy out of the stream credit facility and offtake, further enhancing our financial flexibility and exposure to the strengthening gold price.”

Annual report 2024A · The company itself

“Company’s access to financing or its own cash balance may also be negatively impacted by liquidity crises. These factors may impact the Company’s ability to obtain equity or debt financing and, where available, to obtain such financing on terms favourable to the Company. Increased levels of volatility and market turmoil could have an adverse impact on the Company’s operations, planned growth, profitability and the trading price of the Company’s Shares.”

Annual report 2024A · The company itself

“Shortages of Critical Resources Disruptions in the supply of products or services required for the Company’s activities could adversely affect the Company’s operations, financial condition and results of operations. This may be the result of industry-wide shortages of certain goods or services, interruption in supplier operations or in transportation methods of certain goods, interruptions in international logistics, the risk of failure of certain long-lead items or the failure to obtain necessary permits for the supply of regulated goods. The Company’s costs may also be affected by the prices of commodities and other inputs it consumes or uses in its operations. The prices and availability of such commodities and inputs are influenced by supply and demand trends and logistics issues affecting the mining industry in general and other factors outside the Company’s control.”

Annual report 2024A · The company itself

“With no debt and increased exposure to rising gold prices following the buy out of the Stream Facility and Offtake, the Company expects to generate increased cash flow which will continue to support the exploration programs, planned capital expenditures, growth initiatives and regular dividend payments under the approved dividend policy.”

Annual report 2024A · The company itself

“Company’s access to financing or its own cash balance may also be negatively impacted by liquidity crises. These factors may impact the Company’s ability to obtain equity or debt financing and, where available, to obtain such financing on terms favourable to the Company. Increased levels of volatility and market turmoil could have an adverse impact on the Company’s operations, planned growth, profitability and the trading price of the Company’s Shares.”

Annual report 2024A · The company itself

“Unit costs are anticipated to be higher compared to 2024 and are primarily attributable to increased royalties and employee profit sharing resulting from the increase in the assumed gold price from $1,900 per oz to $2,500 per oz, an increase in power tariffs, and an increase in sustaining capital expenditures.”

Annual report 2024A · The company itself

“Increases in the price of materials consumed in the Company’s mining and production activities could materially adversely affect the Company’s results of operations and financial condition.”

Annual report 2024A · The company itself

“The Company depends upon information systems and other digital technologies for controlling operations, processing transactions and summarizing and reporting results of operations (“IT systems”). The secure processing, maintenance and transmission of information is critical to the Company’s operations. These IT systems or those of Lundin Gold’s suppliers could be subject to network disruptions caused by a variety of sources, including computer viruses, security breaches, defective software updates and cyber-attacks, as well as disruptions resulting from incidents such as cable cuts, damage to physical plants, natural disasters, terrorism, fire, power loss, vandalism and theft. operations also depend on the timely maintenance, upgrade and replacement of networks, equipment, IT systems and software, as well as pre-emptive expenses to mitigate the risks of failures.”

Annual report 2024A · The company itself

“Tables are expressed in thousands of U.S. dollars, except share and per share amounts) Exploration, development or operations may also be affected to varying degrees by government regulations with respect to, but not limited to, restrictions on future exploration, development and production, price controls, export controls, income taxes, labour and immigration, and by delays in obtaining or the inability to obtain necessary permits, opposition to mining from environmental and other non-governmental organizations, limitations on foreign ownership, expropriation of property, ownership of assets, environmental legislation, labour relations, limitations on repatriation of income and return of capital, high rates of inflation, increased financing costs and site safety. In addition, the legislative uncertainty regarding the consultation process for environmental licences may pose a risk for future permitting of exploration activity near protected forests and the need to carry out consultation with impacted communities and Indigenous Peoples prior to the start of any activities.”

Annual report 2024A · The company itself

“This increase is primarily attributable to an increase in average realized gold price from $1,958 to $2,464 per oz sold which increased revenues from $903 million to $1.19 billion, partially offset by a resulting increase in royalties.”

Annual report 2024A · The company itself

“Disruptions caused by pandemics, epidemics or infectious disease outbreaks in locations where Lundin Gold operates or globally could materially adversely affect the Company’s business, operations, financial results and forward-looking expectations. Possible impacts of pandemics, epidemics or infectious disease outbreaks may include mandated or voluntary closures of operations, illness among the Company’s workforce, restricted mobility of personnel, interruptions in the Company’s logistics and supply chain, delay at or closure of the Company’s refining and smelting service providers and global travel restrictions, all of which could disrupt the Company’s operations and negatively impact its financial performance of the value of its Shares.”

Annual report 2024A · The company itself

“The strength of our operations translated into record-high cash flow, with $662 million from operating activities and $540 million in adjusted free cash flow , or $2.26 per share.”

Annual report 2024A · The company itself