LUNDIN MINING RECOMMENCES PRODUCTION AT AGUABLANCA

8/28/2012 2:00 AM EST

Lundin Mining Corporation
Company Announcement

LUNDIN MINING RECOMMENCES PRODUCTION AT AGUABLANCA

Toronto, August 27, 2012 (TSX: LUN; OMX: LUMI) Lundin Mining Corporation
(“Lundin” or the “Company”) is pleased to announce that production at the
wholly owned Aguablanca nickel/copper mine in Spain has  restarted ahead of the
previously announced schedule.  While full production ramp-up is expected to be
achieved in Q4/2012, the mill is treating a substantial stockpile of ore at
good throughput rates and first concentrate shipments have started to arrive at
the port warehouse. 

Mr. Paul Conibear, President and CEO of the Company stated “We are very pleased
with the successful execution of our re-start plan and are being able to
commence concentrate production slightly ahead of schedule.  The operation
provides nickel and additional copper production for the Company, and is
expected to generate good positive cash flows at current metal prices.” 

Consistent with the company’s recently increased production guidance,
Aguablanca is forecasted to produce between 1,000 – 1,500 tonnes of nickel and
a similar volume of copper in 2012. Also as previously guided, the operation is
expected to produce between 5,000 – 7,000 tonnes of both nickel and copper in
2013 and between 6,000 – 7,000 of both nickel and copper in 2014.  Cash cost
guidance will be confirmed prior to year end, once full design rates have been
achieved in the plant. 



About Lundin Mining

Lundin Mining Corporation is a diversified Canadian base metals mining company
with operations in Portugal, Sweden, Spain and Ireland, producing copper, zinc,
lead and nickel. In addition, Lundin Mining holds a development project
pipeline which includes a potential expansion project at the Neves-Corvo mine
along with its equity stake in the world class Tenke Fungurume copper/cobalt
mine in the Democratic Republic of Congo. 

On Behalf of the Board,

Paul Conibear

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. 




         For further information, please contact:
         Sophia Shane, Investor Relations North America:  +1-604-689-7842
         John Miniotis, Senior Business Analyst:  +1-416-342-5565
         Robert Eriksson, Investor Relations Sweden:  +46 8 545 015 50