Lundin Mining Releases 2009 Third Quarter Results

TORONTO, ONTARIO, Oct 29 (MARKET WIRE) --
Lundin Mining Corporation (TSX: LUN)(OMX: LUMI) ("Lundin Mining" or the
"Company") today reported unaudited net income for the quarter of $3.7
million, or $0.01 per share. Operating earnings were $91.8 million, up
from $68.9 million in the third quarter of 2008. Cash flow from
operations during the quarter was $40.0 million, compared to $46.8
million in the third quarter of 2008.

--------------------------------------------------------------------------
Three months ended Nine months ended
US $ millions, except earnings per September 30 September 30
share 2009 2008 2009 2008
--------------------------------------------------------------------------
Sales 171.1 191.9 489.3 791.8
Operating earnings(1) 91.8 68.9 221.0 389.1
Income (loss) from continuing
operations 3.7 (190.2) 33.0 (12.3)
Net income (loss) 3.7 (199.0) 38.6 (228.6)

Basic and diluted earnings (loss)
per share:
From continuing operations 0.01 (0.49) 0.06 (0.03)
From discontinued operations - (0.02) 0.01 (0.55)
--------------------------------------------------------------------------
Basic and diluted income (loss) per
share 0.01 (0.51) 0.07 (0.59)
--------------------------------------------------------------------------
Cash flow from operations 40.0 46.8 40.4 168.6
--------------------------------------------------------------------------

Commenting on the quarter, Mr. Phil Wright, President and CEO said,
"Our European operations remain on-track to achieve full year production
guidance and our costs continue to be well in-line with expectations.

"Adjusting for the loss on sale of investments and unrealized losses on
our copper derivatives, we achieved income from continuing operations of
$35.9 million this quarter compared to $50.2 last quarter.

"The result was a little below our own expectations owing to lower than
expected sales volume and production. The lower sales volume relates
mainly to an in-transit shipment at quarter end and this will correct
next quarter. The lower production arose from events that, while not
unexpected from time to time, were unpredicted and caused disruption to
planned mining sequences.

"Tenke's ramp-up continues to accord with top-quartile performance and we
fully expect it will start to perform above nameplate copper production
capacity in the near-term," Mr. Wright said.

Highlights

- Operating earnings(1) increased by $22.9 million from $68.9 million in
the third quarter of 2008 to $91.8 million in 2009. Lower sales volumes
($36 million operating earnings effect) and lower metal prices ($22
million operating earnings effect) were more than offset by the
difference in price-adjustments between the quarters. Comparing metal
prices in Q3 2009 to the same period last year, copper prices are still
significantly lower.

- Sales for the quarter were $171.1 million compared to sales of $191.9
million in the third quarter of 2008. Lower volume from continuing
operations and the closures of Galmoy and Storliden were more than offset
by the change in higher realized metal prices.

- Cash inflow from operations was $40.0 million, compared to a cash
inflow of $46.8 million in the third quarter of 2008. The current
quarter's operating cash flow is after making mine closure and severance
payments of $8.0 million at Galmoy.

- Net income of $3.7 million compares to a net loss of $199.0 million in
the third quarter of 2008. The current quarter income includes an
unrealized mark-to-market adjustment of $18.5 million and a realized loss
of $6.4 million on the Company's copper derivatives, as well as a loss on
disposal of the Ozernoe project in the amount of $18.7 million (a
combined after-tax effect of $37.0). The loss in the previous year
includes an after-tax, non-cash impairment charge of $201.1 million.

- The Company continued to invest in near-mine exploration for copper at
its Neves-Corvo mine with encouraging results.

- Construction activities on Phase 1 of Tenke copper/cobalt project are
now substantially complete. During the quarter, Tenke produced
approximately 24,000 tonnes of copper bringing the total to approximately
41,000 tonnes of copper cathode since start-up. Cash payments to fund
Tenke Project activities during the quarter were $24.3 million.

- During the quarter the Company paid down debt of $63.9 million.

Outlook

European operations continue to perform in-line with expectations and the
outlook is largely unchanged except that prices in the fourth quarter are
likely to be higher than previously expected. Production guidance remains
unchanged:

-------------------------------------------
(contained tonnes) Full Year 2009 Outlook
-------------------------------------------
Copper 91,000
Zinc 100,000
Lead 40,000
Nickel 7,200
-------------------------------------------

The Company remains cautious in the short-term and will continue to
focus on tight expenditure controls. In the medium to longer term, supply
constraints are expected to emerge with the potential for base metal
prices to move significantly higher.

Updated cost guidance(2), dependent on exchange rates, is as follows:

- Neves-Corvo: around $1.10 (Q2 guidance: $1.05) per pound of copper;

- Zinkgruvan: unchanged at around $0.30 per pound of zinc; and

- Aguablanca: around $5.00 (Q2 guidance: $4.80) per pound of nickel.

Cash costs remain dependent upon exchange rates. Cash cost of nickel is
highly leveraged to metal price owing to the price participation formula
in the smelter terms.

Capital expenditures for the year are expected to be around $170 million
which includes: $65 million of sustaining capital; $45 million of new
investment in existing operations (Zinkgruvan copper project; Neves-Corvo
new copper circuit, paste project, zinc expansion and the pre-feasibility
study for the Lombador zinc deposits) and $60 million for Tenke (covering
pro rata working capital, exploration drilling, expansion studies,
sustaining capital and other related costs). The increase of $10 million
from last quarter's guidance largely reflects the stronger Euro affecting
the cost when viewed in US$.

All of the Company's operations are expected to be free cash flow
positive(3).

Third Quarter 2009 Results
Financial and Operational Highlights

Three months ended Sept 30 Nine months ended Sept 30
(USD millions, except -------------------------- -------------------------
per share amounts) 2009 2008 2009 2008
------ ------ ------ ------
Sales 171.1 191.9 489.3 791.8
Operating earnings(4) 91.8 68.9 221.0 389.1
Depletion,
depreciation
& amortization (46.5) (54.3) (128.6) (162.3)
General exploration
and project investigation (6.5) (7.8) (15.9) (26.6)
Interest expense and
bank charges (3.0) (2.9) (11.3) (10.1)
Foreign exchange gain
(loss) 2.8 8.2 9.0 (0.4)
(Loss) gain on
derivative contracts (24.9) (1.8) (34.1) 0.7
Loss from equity
investment in Tenke (1.0) - (5.3) -
Other income and
expenses 1.0 1.7 3.8 4.1
Loss on sale of
investment (18.7) - (18.7) (1.3)
Impairment charges - (220.1) - (220.1)
------ ------ ------ ------
(Loss) income from
continuing operations
before income
taxes (5.1) (208.2) 19.8 (26.9)
Income tax recovery 8.8 18.0 13.2 14.6
------ ------ ------ ------
Income (loss) from
continuing operations 3.7 (190.2) 33.0 (12.3)
(Loss) gain from
discontinued
operations - (8.8) 5.6 (216.3)
------ ------ ------ ------
Net income (loss) 3.7 (199.0) 38.6 (228.6)
------ ------ ------ ------
------ ------ ------ ------
Shareholders' Equity 2,913.1 3,150.6
Cash flow from
operations 40.0 46.8 40.4 168.6
Capital expenditures
(excl. Investment in
Tenke) 30.4 54.1 92.4 214.8
Net debt(5) 132.2 194.8

Three months ended Sept 30 Nine months ended Sept 30
-------------------------- -------------------------
Key Financial Data 2009 2008 2009 2008
------ ------ ------ ------
Shareholders' equity
per share(6) 5.03 8.07
Basic and diluted
(loss) income per
share 0.01 (0.51) 0.07 (0.59)
Basic and diluted
(loss) income per
share from
continuing operations 0.01 (0.49) 0.06
(0.03)Dividends - - -
-
Equity ratio(7) 0.78 0.73
Shares outstanding:
Basic weighted
average 579,510,141 390,427,090 540,030,936 390,553,391
Diluted weighted
average 579,645,695 390,578,818 540,057,884 390,843,701
End of period 579,574,131 390,436,279

Three months Nine months
Production Summary ended September 30 ended September 30
(excluding Aljustrel) 2009 2008 Change 2009 2008 Change
-------------------------------------------- -----------------------
Copper (tonnes) 21,351 24,433 -12.6% 69,583 72,851 -4.5%
Zinc (tonnes) 16,651 37,067 -55.1% 82,890 118,751 -30.2%
Lead (tonnes) 8,961 9,908 -9.6% 34,309 34,882 -1.6%
Nickel (tonnes) 1,784 2,155 -17.2% 5,705 5,957 -4.2%

The 2009 third quarter financial statements, management's discussion
and analysis and notes to the financial statements are available on SEDAR
(www.sedar.com) or the Company's website (www.lundinmining.com).

About Lundin Mining

Lundin Mining Corporation ("Lundin", "Lundin Mining" or the "Company") is
a diversified base metals mining company with operations in Portugal,
Spain and Sweden, producing copper, nickel, lead and zinc. In addition,
Lundin Mining holds a development project pipeline which includes
expansion projects at its Zinkgruvan and Neves-Corvo mines along with its
equity stake in the world class Tenke Fungurume copper/cobalt project in
the Democratic Republic of Congo. The Company also holds an extensive
exploration portfolio and interests in international mining and
exploration ventures.

On Behalf of the Board,

Phil Wright, 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 or "forward-looking statements" within the meaning of
Section 21E of the Securities Exchange Act of 1934 of the United States.
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.

Cautionary Notes to Investors - Reserve and Resource Estimates

In accordance with applicable Canadian securities regulatory
requirements, all mineral reserve and mineral resource estimates of the
Company disclosed or incorporated by reference in this Annual Information
Form have been prepared in accordance with Canadian National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"),
classified in accordance with Canadian Institute of Mining Metallurgy and
Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions
and Guidelines" (the "CIM Guidelines"). The definitions of mineral
reserves and mineral resources are set out in our disclosure of our
mineral reserve and mineral resource estimates that are disclosed or
incorporated by reference in this Annual Information Form.

The Company uses the terms "mineral resources", "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources". While those terms are recognized by Canadian securities
regulatory authorities, they are not recognized by the United States
Securities and Exchange Commission (the "SEC") and the SEC does not
permit U.S. companies to disclose resources in their filings with the SEC.

Pursuant to the CIM Guidelines, mineral resources have a higher degree of
uncertainty than mineral reserves as to their existence as well as their
economic and legal feasibility. Inferred mineral resources, when compared
with measured or indicated mineral resources, have the least certainty as
to their existence, and it cannot be assumed that all or any part of an
inferred mineral resource will be upgraded to an indicated or measured
mineral resource as a result of continued exploration. Pursuant to NI
43-101, inferred mineral resources may not form the basis of any economic
analysis, including any feasibility study. Accordingly, readers are
cautioned not to assume that all or any part of a mineral resource
exists, will ever be converted into a mineral reserve, or is or will ever
be economically or legally mineable or recovered.

(1) Operating earnings is a Non-GAAP measure defined as sales, less
operating costs, accretion of asset retirement obligation ("ARO") and
other provisions, selling, general and administration costs and
stock-based compensation.

(2) C1 cash costs, net of by-product credits based on Euro/US$1.40

(3) Free cash flow is defined as cash flows from operations less
sustaining capital expenditures.

(4) Operating earnings is a Non-GAAP measure defined as sales, less
operating costs, accretion of asset retirement obligation ("ARO") and
other provisions, selling, general and administration costs and
stock-based compensation.

(5) Net debt is a Non-GAAP measure defined as available unrestricted cash
less financial debt, including capital leases and other debt-related
obligations.

(6) Shareholders' equity per share is a Non-GAAP measure defined as
shareholders' equity divided by total number of shares outstanding at end
of period.

(7) Equity ratio is a Non-GAAP measure defined as shareholders' equity
divided by total assets at the end of period.

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

Lundin Mining Corporation
Josh Crumb
Director of Corporate Development Toronto
+1-416-342-5565
+1-415-348-0303 (FAX)

Lundin Mining Corporation
Robert Eriksson
Investor Relations Sweden
+46 8 545 015 50
www.lundinmining.com

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