Fruta Del Norte Gold Project Acquisition

VANCOUVER - Lundin Gold Inc. reported the closing of the acquisition of a 100% interest in the Fruta del Norte gold project (FDN) in Ecuador from Kinross Gold Corporation.

Total consideration paid at closing was US$240 million comprising US$150 million in cash and 26,156,250 common shares of the Company (the "Share Consideration"). The Share Consideration totaled US$90 million based on an issue price of C$4.00 per common share and the noon rate published by the Bank of Canada on December 16, 2014. Kinross has agreed to lock-up 50% of the Share Consideration for a period expiring May 17, 2015 and the remaining 50% for a period expiring December 17, 2015.

The brokered financing to fund the acquisition and development of FDN comprised the issuance of 50,128,250 subscription receipts of the Company at a price of C$4.00 per subscription receipt for aggregate gross proceeds of approximately C$200 million. Escrow release conditions having been satisfied, the funds were released to the Company to complete the acquisition and the subscription receipts have now been converted to common shares of the Company.