Lundin Gold Reports Further High-Grade Results at FDNS including 108.61 g/t Au over 11.75 Metres; Development Begins Toward FDN East Following Record Drill Result of 236.62 g/t Au over 3.95 Metres

Lundin Gold Inc. (LUG) reported additional high-grade drill intercepts from its FDNS and FDN East epithermal gold vein systems at the Fruta del Norte (FDN) mine. The company highlighted a new record at FDN East, which returned 236.62 g/t Au over 3.95m, including 933 g/t over 1.00m.

At FDNS, conversion holes returned up to 199.90 g/t over 6.90m, while exploration hole UGE-S-26-478 hit 108.61 g/t Au over 11.75m, including 2,030 g/t over 0.40m.

The company also announced that underground development has commenced toward FDN East from the main FDN mine, alongside ongoing development at FDNS, where first reserves are declared in early 2026. The release frames the drilling as supporting reserve and resource growth, noting that FDNS now has five underground rigs operating and FDN East has two underground rigs plus one surface rig.

Lundin Gold Inc. (LUG), an established producer with a reserve base of approximately 5.85 million ounces and annual production of roughly 500,000 ounces, announced the commencement of underground development toward FDN East. This move converts a conceptual target into a tangible mining project, committing capital and signaling confidence in bringing the deposit into the mine plan. The 0.42 million ounce inferred resource is being advanced toward a pre-production stage, which is expected to extend mine life and potentially serve as a significant net asset value catalyst.

Additionally, development at FDNS is already underway, reinforced by exceptional conversion holes. The 0.54 million ounce reserve is now being accessed, with high-grade intercepts outside the current resource envelope suggesting potential reserve growth.

These developments strengthen the thesis of a multi-deposit mining complex around FDN, a narrative the market had previously discounted as the stock declined from approximately CAD 114 to the mid-70s. While the drill numbers themselves were not a surprise, as the market has seen record intercepts regularly, the start of development represents a concrete step that reduces risk for the company’s satellite deposits.

Lundin Gold Inc. (LUG) owns and operates the Fruta del Norte (FDN) gold mine in Ecuador, a large-scale epithermal gold-silver deposit. The company is debt-free and generated US$349 million in free cash flow in Q1 2026, while paying a substantial dividend consisting of a fixed US$0.30 per quarter plus a variable component.

Lundin Gold controls approximately 60,000 hectares of exploration concessions in the region, including the FDNS and FDN East epithermal deposits and a growing porphyry copper-gold district featuring assets such as Sandia and Trancaloma. Current annual production guidance stands at 475,000 to 525,000 ounces of gold at an all-in sustaining cost (AISC) of US$1,110 to US$1,170 per ounce.