Lundin Gold Hits Record Reserves, Expands Fruta del Norte's Future

VANCOUVER, BC – February 17, 2026 – Lundin Gold has announced a new record for its gold reserves at the high-grade Fruta del Norte (FDN) mine in Ecuador, significantly bolstering the long-term outlook for one of the world's most profitable gold operations. In a landmark update, the company revealed that its Proven and Probable Mineral Reserves have swelled to 5.85 million ounces, more than replacing the gold mined in 2025 and setting a new benchmark for the deposit.

The announcement was further amplified by the successful expansion of the FDN district, with an inaugural reserve declared for the nearby Fruta del Norte South (FDNS) deposit and a new resource identified at FDN East. This trifecta of positive developments underscores the company's successful exploration strategy and operational prowess, cementing Fruta del Norte’s status as a world-class, multi-generational asset.

A New Highwater Mark

Lundin Gold's year-end 2025 report paints a picture of robust health and significant growth. The total Proven and Probable Mineral Reserves reached 5.85 million ounces of gold, a net increase of 6% compared to the previous year. This growth is particularly impressive as it comes after accounting for the depletion of 530,000 ounces from mining activities in 2025, demonstrating that the company is discovering gold far faster than it is processing it.

"Today's update marks a new highwater mark for Fruta del Norte," commented Jamie Beck, President and CEO, in the company's official press release. "We've grown Proven and Probable Mineral Reserves to 5.85 Moz, more than offsetting 2025 depletion, and, importantly, delivered FDNS's inaugural reserve roughly 18 months after discovery."

This continuous replacement and expansion of reserves is the lifeblood of any mining operation, and Lundin Gold's performance significantly de-risks the mine's future, promising a sustained production profile for years to come. The total Measured and Indicated Resources, a broader category that includes reserves, also climbed by 6% to 7.48 million ounces, indicating a strong pipeline for future conversion to reserves.

The Dual Engines of Growth: Discovery and Efficiency

The record-setting update is not merely a result of finding more gold-rich rock; it is a testament to a dual-pronged strategy of aggressive exploration and smart, efficient operations. The exploration success is most evident at FDNS, a satellite deposit first intersected in mid-2024. In an exceptionally rapid 18-month turnaround, Lundin Gold has already established an inaugural Probable Mineral Reserve of 540,000 ounces at FDNS, a pace of conversion that highlights both the quality of the deposit and the company's technical expertise.

Furthermore, exploration drilling has formally established a third near-mine deposit, FDN East, with an inaugural Inferred Mineral Resource of 420,000 ounces of gold. This opens up a new front for exploration and provides future optionality for development, leveraging the existing infrastructure of the main FDN mine.

Equally important has been the company's operational finesse. Lundin Gold strategically lowered the cut-off grade at the main FDN orebody from 3.7 grams per tonne (g/t) to 3.2 g/t. This technical adjustment, made possible by a combination of a higher gold price assumption and disciplined cost controls that kept operating costs flat year-over-year, allows the company to economically mine and process rock that was previously considered waste. This seemingly small change played a significant role in expanding the mineable inventory and adding 300,000 ounces to FDN's reserves before depletion.

Market Enthusiasm and Analyst Caution

Investors have rewarded Lundin Gold's consistent delivery and growth story. The company’s stock has been on a remarkable run, climbing an astonishing 915% over the last five years and 193% in the past 12 months alone. Recent announcements of exploration success have triggered fresh waves of buying, suggesting strong market confidence in the expanding potential of the Fruta del Norte district.

Despite the bullish market sentiment, financial analysts maintain a more measured perspective. The consensus rating hovers between "Hold" and "Reduce," with many analysts believing the company's soaring stock price already reflects the positive news. Average 12-month price targets show a wide range of opinions, from C$90 to as high as C$141, indicating debate about how much future growth is already priced in. This cautious stance suggests that while the operational performance is undeniable, investors are weighing the company's high valuation against the inherent risks of the mining sector.

Thriving in Ecuador's Evolving Landscape

Operating successfully in Ecuador requires navigating a complex and evolving regulatory and social environment. The Ecuadorian government under President Daniel Noboa has taken steps to strengthen the mining sector, including modifying royalty calculations and introducing new fees in late 2025 to fund regulatory oversight and combat pervasive illegal mining. While these changes aim to bring stability, they also add new layers of compliance for operators like Lundin Gold.

The company appears to be managing these challenges proactively. It maintains a strong focus on its social license to operate, fostering relationships with local Indigenous communities, including the Shuar and Saraguro peoples, through employment and economic development programs. Lundin Gold is a major employer in the Zamora Chinchipe province and has actively supported local supplier networks.

On the environmental and operational front, the company has partnered with Ecuadorian universities on responsible mining initiatives and has adapted to a national energy crisis by self-generating over half of its daily power needs. This commitment to ESG principles and operational resilience is crucial for long-term sustainability and insulating the project from regional risks.

Looking ahead, Lundin Gold shows no signs of slowing down. The company has allocated a massive $85 million budget for its 2026 exploration campaign, its largest ever, signaling a firm belief that more discoveries await. Key decisions on the development of FDNS and a potential expansion of the mine and mill's capacity are expected later this year, promising to write the next chapter in the remarkable story of Fruta del Norte.