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Lundin Mining Q4 and Full Year 2012 Production Results

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TORONTO, ONTARIO -- (Marketwire) -- 01/22/13 -- Lundin Mining Corporation (TSX: LUN)(OMX: LUMI) ("Lundin Mining" or the "Company") reports the following production results for the fourth quarter and full year 2012:

----------------------------------------------------------------------------Metal Production FY Q4(contained tonnes) 2012 2012---------------------------------------------------------------------------- Copper, wholly-owned operations 63,878 14,224 Tenke attributable (24%) 38,172 10,669 --------------------------------------------------------------------------Total Copper 102,050 24,893Zinc 122,204 29,161Lead 38,464 8,353Nickel 2,398 1,705----------------------------------------------------------------------------



Paul Conibear, President and CEO commented, "We are pleased to achieve the high-end of our production guidance targets for 2012 at each of our operations. Zinkgruvan had a particularly successful year with new records set for production of zinc, lead and copper. Tenke also set new copper production records as Phase II expanded facilities came on line. All of our assets are very well positioned to deliver a solid performance again this year."

Segmented production and guidance is as follows:

---------------------------------------------------------------------------- 2013 Guidance ------------------------- Production Production C1 Cost(contained tonnes) Results Guidance Production (b,c)----------------------------------------------------------------------------Copper Neves- Corvo 58,559 55,000-60,000 50,000-55,000 $1.80/lb Zinkgruvan 3,059 3,000-4,000 2,500-3,500 Aguablanca 2,260 1,500-2,000 4,500-5,000 ------------------------------------------------------------------ Wholly-owned 63,878 59,500-66,000 57,000-63,500 Tenke (@24%) 38,172 36,200 44,650(a) $1.03/lb ------------------------------------------------------------------ Total attributable 102,050 95,700-102,200 101,650-108,150Zinc Neves-Corvo 30,006 25,000-30,000 45,000-50,000 Zinkgruvan 83,209 77,000-83,000 73,000-78,000 $0.20/lb Galmoy (in ore) 8,989 8,500-9,000 nil ------------------------------------------------------------------ Total 122,204 110,500-122,000 118,000-128,000Lead Neves-Corvo 87 nil nil Zinkgruvan 37,246 34,000-39,000 33,000-36,000 Galmoy (in ore) 1,131 1,000-1,100 nil ------------------------------------------------------------------ Total 38,464 35,000-40,100 33,000-36,000Nickel Aguablanca 2,398 1,500-2,000 5,000-5,500 $5.00/lb----------------------------------------------------------------------------a. Freeport has provided 2013 sales guidance which has been assumed toapproximate Tenke's production.b. Cash costs remain dependent upon exchange rates (EUR/USD: 1.30, USD/SEK:6.75) and metal prices (Cu: $3.50, Zn: $0.95, Ni: $8.00, Co: $12.00).c. Cash cost is a non-GAAP measure reflecting the sum of direct costs lessby-product credits.



Operational Commentary

-- Neves-Corvo: Total copper production exceeded the original guidance for the year, however overall grade of copper ore was lower than planned due to an exceptional quantity of lower grade but profitable "Out of Reserve" ore that was encountered and mined but was not part of the original mineral reserve estimate. Approximately 42% of the copper ore mined in 2012 was Out of Reserve. In the new copper mining zone of Lombador, 57% of the material mined was Out of Reserve. Overall for 2012, Out of Reserve material graded an average of 1.75% copper as compared to the Reserve material mined which graded 3.28% copper. Net benefits of mining and processing this Out of Reserve material include an extended mine life and overall long term higher aggregate revenues. Underground drilling will be increased significantly for 2013 to better define the extent of mineralization not currently in the reserve estimates and mine plans. Despite the lower than planned feed grades, Neves-Corvo copper plant performance was excellent with 88.2% recovery achieved. Ramp-up of the zinc plant continued in the quarter, with throughput approximately 75% higher than the prior quarter and record quarterly, and annual, zinc metal production was generated.-- Zinkgruvan: As expected, lower zinc and lead grades were realized in the fourth quarter, though the impact on metal production was partially mitigated by higher volumes processed than the prior two quarters and continued high recovery performance in the process plant. Zinc, copper and lead grades and plant recoveries met and in some cases were better than originally anticipated. Zinkgruvan finished the year with record production of zinc, lead and copper metal in concentrate.-- Aguablanca: Processing operations re-commenced in August, with full production achieved earlier than planned in the fourth quarter of 2012, resulting in higher than expected nickel and copper metal in concentrate production. Grades mined and plant recoveries achieved for both nickel and copper were slightly better than expected.-- Galmoy: Mining production from remnant ores exceeded expectations for the year. Mining ceased in the fourth quarter of 2012, though processing of stockpiled ore, by a third party processing facility, will continue into 2013. The mine closure plan has been approved by regulating authorities.-- Tenke: During 2012, Tenke achieved record mining and production rates facilitated by the staged commissioning of Phase II expansion facilities. The Phase II expansion is substantially complete, on schedule and on budget. By year end, the expanded facilities were operating near full Phase II design capacity and as reported by Freeport as Operator, overall fourth quarter production of 44,452 tonnes of copper cathode was 91% of the expanded annual design capacity of 195,000 tpa copper cathode. Freeport has provided 2013 metal sales guidance of 186,000 tonnes of copper cathode and 13,600 tonnes of cobalt (contained in cobalt hydroxide product).



Details of operating statistics by mine, by quarter and for the year follow in the attached table:

2012 Operating Statistics---------------------------------------------------------------------------- Total Q4 Q3 Q2 Q1----------------------------------------------------------------------------Neves-Corvo----------------------------------------------------------------------------Ore mined, copper (000 tonnes) 2,507 648 577 638 644Ore mined, zinc (000 tonnes) 530 178 107 132 113Ore milled, copper (000 tonnes) 2,512 648 597 634 633Ore milled, zinc (000 tonnes) 543 181 104 135 123----------------------------------------------------------------------------Grade per tonne Copper (%) 2.6 2.2 2.7 2.8 2.9 Zinc (%) 7.3 7.1 7.2 7.2 7.6----------------------------------------------------------------------------Recovery Copper (%) 88.2 85.6 86.0 90.0 91.1 Zinc (%) 71.0 70.5 71.2 72.8 69.6----------------------------------------------------------------------------Concentrate grade Copper (%) 23.9 23.6 24.2 23.9 24.0 Zinc (%) 47.3 47.0 46.6 48.1 47.3----------------------------------------------------------------------------Production (contained metal) Copper (tonnes) 58,559 11,988 14,012 15,950 16,609 Zinc (tonnes) 30,006 9,533 5,834 7,619 7,020 Lead (tonnes) 87 39 48 - -Zinkgruvan----------------------------------------------------------------------------Ore mined, zinc (000 tonnes) 954 251 189 251 263Ore mined, copper (000 tonnes) 157 40 46 44 27Ore milled, zinc (000 tonnes) 998 254 216 241 287Ore milled, copper (000 tonnes) 145 29 48 49 19----------------------------------------------------------------------------Grade per tonne Zinc (%) 9.1 8.2 10.1 10.7 7.7 Lead (%) 4.4 3.8 4.7 4.8 4.3 Copper (%) 2.3 2.5 2.0 2.2 3.0----------------------------------------------------------------------------Recovery Zinc (%) 91.7 89.2 91.9 93.5 91.8 Lead (%) 85.4 84.8 88.0 85.3 83.8 Copper (%) 91.8 92.6 90.6 91.6 93.4----------------------------------------------------------------------------Concentrate grade Zinc (%) 54.1 54.5 54.6 54.5 53.0 Lead (%) 74.7 73.4 74.0 76.2 74.9 Copper (%) 25.1 24.7 24.3 25.9 25.7----------------------------------------------------------------------------Production (contained metal) Zinc (tonnes) 83,209 18,703 20,053 24,022 20,431 Lead (tonnes) 37,246 8,198 8,953 9,747 10,348 Copper (tonnes) 3,059 673 864 986 536Galmoy----------------------------------------------------------------------------Ore mined (000 tonnes) 142 15 43 5 79Ore milled (000 tonnes) 188 19 61 69 39----------------------------------------------------------------------------Production (contained metal) Zinc (tonnes) 8,989 925 2,565 331 5,168 Lead (tonnes) 1,131 116 364 33 618----------------------------------------------------------------------------Operating Statistics---------------------------------------------------------------------------- Total Q4 Q3 Q2 Q1----------------------------------------------------------------------------Aguablanca----------------------------------------------------------------------------Ore mined (000 tonnes) 755 368 198 148 41Ore milled (000 tonnes) 577 368 209 - -----------------------------------------------------------------------------Grade per tonne Nickel (%) 0.5 0.5 0.4 - - Copper (%) 0.4 0.5 0.4 - -----------------------------------------------------------------------------Recovery Nickel (%) 81.3 82.8 78.1 - - Copper (%) 91.4 92.9 87.7 - -----------------------------------------------------------------------------Concentrate grade Nickel (%) 6.8 6.8 6.7 - - Copper (%) 6.4 6.3 6.8 - -----------------------------------------------------------------------------Production (contained metal) Nickel (tonnes) 2,398 1,705 693 - - Copper (tonnes) 2,260 1,563 697 - -



About Lundin Mining

Lundin Mining Corporation is a diversified base metals mining company with operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo.

On Behalf of the Board,

Paul Conibear, President and CEO

Forward Looking Statements

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, industrial accidents, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; the potential for and effects of labour disputes or other unanticipated difficulties with or shortages of labour or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations; uncertain political and economic environments; changes in laws or policies, foreign taxation, delays or the inability to obtain necessary governmental permits; and other risks and uncertainties, including those described under Risk Factors Relating to the Company's Business in the Company's Annual Information Form and in each management discussion and analysis. Forward-looking information is in addition based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper, nickel, lead and zinc; that the Company can access financing, appropriate equipment and sufficient labour and that the political environment where the Company operates will continue to support the development and operation of mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.



Contacts:
Lundin Mining Corporation
Sophia Shane
Investor Relations North America
+1-604-689-7842

Lundin Mining Corporation
John Miniotis
Senior Business Analyst
+1-416-342-5565

Lundin Mining Corporation
Robert Eriksson
Investor Relations Sweden
+46 8 545 015 50



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