Name: Aguablanca mine.

Location: The Aguablanca nickel/copper sulphide deposit is located in the province of Badajoz, 80 km by road to Seville and 140 km from a major seaport at Huelva, in Spain.

Controlling company: Lundin Mining Corporation (100%).

Brief History: Exploration for nickel and copper mineralisation has been conducted in the Aguablanca area since the mid 1980s. The Aguablanca deposit was discovered in 1993/4, following stream sediment sampling and subsequent diamond drilling by State-owned mining company Presur /Rio Tinto Minera joint venture. Rio Narcea acquired the Aguablanca project from the owner at the time, Presur/Atlantic Copper. Construction of the Aguablanca mine started in November 2003, with first commercial production starting in January 2005 and the first shipment of concentrate in May of the same year. With the start of the openpit mine, a 2.7-km-long underground decline was developed to allow for the exploration of the mineralisation beneath the planned openpit. Lundin Mining acquired the Aguablanca mine in July 2007, through its purchase of Rio Narcea.

Brief Description: The mining rights for Aguablanca are covered under a Reserva Definitiva a Favor del Estado, which consists of 95 contiguous claims covering 2 862 ha. The Reserva Definitiva is valid for 30 years from June 2003 and is extendable for a further 30 years. Mining royalties of 2% of net smelter return are payable to the Spanish state.

Products: Nickel and copper.

Mining Method: Openpit.
Major Infrastructure and Equipment: Mining operations are a conventional drill-and-blast, and truck-and-shovel fleet. The pit is mined with 8 m benches and the final slopes are designed with a double bench configuration. Waste rock is stacked to the immediate north of the openpit and the waste dumps form the downstream wall of the tailings impoundment. Run-of-mine ore is stockpiled, blended and then primary crushed. The crushed ore is conveyor fed to a conventional grinding and flotation circuit to produce a bulk nickel/copper concentrate. The concentrate is thickened and filtered to produce a filter cake suitable for onward transport. The concentrate is truck hauled about 125 km to Huelva port from where it is shipped to customer smelter facilities.

Tailings from the process plant are pumped to a fully lined tailings impoundment to the north of the plant site area. Decant water from the tailings dam is returned to the process plant.

Geology/Mineralogy: The Aguablanca nickel/copper deposit is underlain by mafic and ultramafic rocks of the Aguablanca Stock (AS), which has intruded carbonate rocks of Hercynian age. The AS is a small gabbroic intrusion of about 2.3 km2, located along the northern contact of the much larger Santa Olalla Pluton (SOP). The northern and southern limits of the SOP are marked by major fault zones. A well-developed contact metamorphic aureole surrounds the AS and SOP exemplified by skarn mineralisation.

Aguablanca represents a somewhat unique example of a magmatic sulphide breccia hosted by gabbro and gabbro-norites.

There are two mineralised bodies at Aguablanca. The larger South or Main zone is about 400 m long on strike and dips steeply to the north. It has widths of up to 100 m and a known depth of more than 600 m. The
steeply dipping North zone is also 125 m long, up to 50 m thick and has a known depth of 300 m.

Three main types of sulphide mineralisation have been recognized and are currently mined separately before blending from stockpiles.

Reserves: Total proven and probable reserves as at December 31, 2012, were 5.99-million tonnes, grading at 0.5% nickel and 0.6% copper.

Resources: Total measured resources as at December 31, 2012, were 7.47-million tonnes, grading at 0.5% nickel and 0.7% copper. Total indicated resources were 368 000 t, grading at 0.2% nickel and 0.4 % copper. Total inferred resources were 10 000 t, grading at 0.2% nickel and 0.6% copper.

Prospects: In December 2010, a significant slope failure occurred that affected the main access ramp to the openpit, which led to a suspension of mine and mill operations. Full operations restarted in August 2012.

The remaining mineral reserves at the mine represent about five years of production.

Contact Person: Investor relations, Robert Eriksson.

Contact details:
Lundin Mining Corporation
+46 8 545 015 50
Email info@lundinmining.com
Website www.lundinmining.com