Announcement • Jul 28

Lundin Gold Reports Further High-Grade Results At FDNS And Begins Development Toward FDN East Following Record Drill Result

Lundin Gold Inc. reported strong results from its ongoing conversion and near-mine exploration drilling programs at the Fruta del Norte gold mine in southeast Ecuador. The drilling programs continue to deliver positive results at FDN, FDN South (FDNS), and FDN East. With four gold-silver epithermal deposits identified to date, the Company has a significant pipeline to continue growing Mineral Resources and Mineral Reserves. FDNS exploration: High-grade intercepts at depth continue to extend mineralization beyond the current Mineral Resource envelope, highlighting the potential for further resource growth. FDNS conversion: Conversion drilling demonstrates continuity and grade in support of potential resource and reserve growth. FDNS development: Development is advancing through the deposit, with development crosscuts successfully intersecting modelled mineralization and providing initial development ore. FDN East: The highest-grade interval ever recorded at FDN East, together with continued success expanding high-grade mineralization to the east, reinforces confidence in the deposit's growth and conversion potential. Underground development toward FDN East is underway to accelerate drilling and support potential future production. FDN: Results extend the upper portion of the main FDN mineralized envelope close to existing underground infrastructure, highlighting additional near-mine resource growth opportunities. At FDNS, drilling continues to intercept exceptional grades over mineable widths, including several high-grade intercepts beyond the current Mineral Resource envelope. These results reinforce confidence that FDNS will continue to grow as the deposit advances toward future production. Development to the south has successfully intersected mineralized veins building confidence in the geological model. At FDN East, the highest-grade interval ever recorded at the deposit, combined with expanding mineralization to the east, further increases confidence in the deposit's growth and conversion potential. Underground development toward FDN East from FDN has commenced. This development is expected to provide improved access for exploration and conversion drilling while also establishing the initial infrastructure required to support potential future production. The advancement of FDNS, the growth of FDN East and ongoing success at FDN demonstrate the strength of the known epithermal exploration pipeline and provide multiple opportunities to create long-term value from the broader Fruta del Norte mineralized system. Conversion Drilling Program Highlights (not true widths): FDNS: Drill hole FDN-C26-443 intersected 199.90 grams per tonne (g/t) of gold (Au) over 6.90m from 66.60m, including 762.84 g/t Au over 1.80m. Drill hole FDN-C26-481 intersected 196.79 g/t Au over 4.50m from 161.35m, including 929.00 g/t Au over 0.90m. Drill hole FDN-C26-459 intersected 90.91 g/t Au over 6.80m from 137.40m, including 214.40 g/t Au over 2.45m. Drill hole FDN-C26-453 intersected 53.01 g/t Au over 8.40m from 31.30m, including 220.08 g/t Au over 1.85m. Exploration Drilling Program Highlights (not true widths): FDNS: Drill hole UGE-S-26-478 intersected 108.61 g/t Au over 11.75m from 177.80m, including 2,030.00 g/t Au over 0.40m. Drill hole UGE-S-26-497 intersected 67.19 g/t Au over 5.80m from 37.50m, including 552.00 g/t Au over 0.40m. Drill hole UGE-S-26-505 intersected 19.33 g/t Au over 5.35 from 56.95m, including 49.44 g/t Au over 2.00m. FDN East: Drill hole UGE-E-26-487 intersected 236.62 g/t Au over 3.95 m from 280.75m including 933.00 g/t Au over 1.00m. Drill hole FDNE-2026-466-D2 intersected 23.16 g/t Au over 6.25m from 429.05m, including 39.01 g/t Au over 3.00m. FDN: Drill hole UGE-26-520 intersected 9.32 g/t Au over 20.90 m from 50.90m including 18.85 g/t Au over 6.50m. Drill hole UGE-26-523 intersected 15.05 g/t Au over 8.05m from 45.60m, including 25.35 g/t Au over 2.45m. FDNS: Underground drilling programs continue to advance at FDNS, located directly south of the FDN deposit. In 2026, the Company declared an inaugural Mineral Reserve of 0.54 Moz (2.50 Mt at 6.66 g/t Au) approximately 18 months after the deposit's discovery. Following the declaration of the inaugural Mineral Reserve, the Company commenced underground development from the South Portal toward FDNS, taking the first round in April. Approximately 116 metres of development has been completed from the South Portal and 252 metres from existing access points on the 1170 level. Development crosscuts from these levels have successfully intersected mineralized veins, building confidence in the geologic model. The current conversion drilling program aims to upgrade Inferred Resources to the Indicated category and support further Mineral Reserve additions. Since January, approximately 12,678 metres of drilling has been completed across 110 holes and outstanding intercepts continue to be recorded along the entire extension of the FDNS deposit. Notably, holes FDN-C26-443, FDN-C25-459, and FDN-C26-481 have defined distinct higher-grade mineralized zones, providing areas for further drilling. The exploration drilling program continues to successfully intercept the continuity of the FDNS deposit beyond the current Mineral Resource. Holes UGE-S-26-478, UGE-S-26-497, and UGE-S-26-505 returned high-grade mineralized intercepts at depth, highlighting areas for further expansion. Five underground rigs are currently operating at FDNS. FDN East: FDN East is a buried epithermal system composed of multiple subparallel north-south trending veins located less than 100 metres from the main FDN mine infrastructure. FDN East has initially been defined over a 500-metre strike length, and the Company published an inaugural Mineral Resource estimate in 2026 of 0.42 Moz Au (2.17 Mt at 6.01 g/t Au). The FDN East deposit remains open in all directions and drilling has successfully expanded the mineralized footprint along strike to the north and to the south as well as toward the east. In the central portion of the deposit, hole UGE-E-26-487 returned the highest-grade intercept ever recorded at FDN East, highlighting the potential for the area to host high-grade mineralized zones. Surface hole FDNE-2026-466-D2 confirmed the continuity of the recently discovered high-grade veins in the eastern portion of the deposit and suggests further exploration potential to the east of the known limits of mineralization. Currently, two underground rigs and one surface rig are operating at FDN East.

Lundin Gold Inc. Stock Price

LUG Share Price Performance

LUG Community Narratives

Rising Gold Prices Will Shape Mixed Fortunes For Ecuador Mining Ahead

Secular Trends And Exploration Will Transform Fruta Del Norte

Gold Price Normalization And Rising Costs Will Hurt Profitability

Secular Trends And Exploration Will Transform Fruta Del Norte

Gold Price Normalization And Rising Costs Will Hurt Profitability

Rising Gold Prices Will Shape Mixed Fortunes For Ecuador Mining Ahead

Trending Discussion

Recently Updated Narratives

LUG: Future Upside Will Rely On High Margin Cash Flow Durability

LUG: Margin Pressures And High Cash Generation Will Shape Future Upside Potential

LUG: High Margin Cash Flows And LunR Dividend Will Support Upside

Snowflake Analysis

Lundin Gold Inc. Key Details

About LUG

Recent LUG News & Updates

Lundin Gold Reports Further High-Grade Results At FDNS And Begins Development Toward FDN East Following Record Drill Result

Price target decreased by 7.3% to CA$98.56

LUG: Future Upside Will Rely On High Margin Cash Flow Durability

Recent updates

Lundin Gold Inc. Competitors

Barrick Mining

Wheaton Precious Metals

Franco-Nevada

Nutrien