Lundin Gold Unlocks Deeper Value with Record Drill Hits at Fruta del Norte

VANCOUVER, BC – July 27, 2026

In the world of mining, where volatility is the only constant, the true mark of a winner is the ability to not only weather storms but to build enduring value from a position of strength. Lundin Gold Inc. provided a masterclass in this principle today, announcing a series of exceptionally high-grade drill results from its world-class Fruta del Norte (FDN) mine in Ecuador that do more than just add ounces—they reinforce a strategy of disciplined, compounding growth.

The headline numbers are staggering. At the FDN South (FDNS) deposit, exploration drilling intercepted 108.61 grams per tonne (g/t) of gold over a substantial 11.75 metres. Not to be outdone, drilling at FDN East returned the highest-grade interval ever recorded there: an eye-watering 236.62 g/t of gold over 3.95 metres. These aren't just isolated hits; they are part of a systematic program that continues to confirm and expand a mineralized system of remarkable quality and scale, prompting the company to immediately begin underground development toward the FDN East target.

From High-Grade to Higher-Grade: A System Unfolding

Fruta del Norte is already celebrated as one of the highest-grade operating gold mines globally, a fact that makes today's results all the more significant. The latest drilling campaign was twofold, targeting both "conversion"—upgrading known but less-defined resources into bankable reserves—and "exploration" to extend the boundaries of the deposits. On both fronts, the results were exceptional.

Conversion drilling at FDNS delivered intercepts like 199.90 g/t gold over 6.90 metres, confirming the continuity of high-grade zones within the deposit. This is a critical step in de-risking future production and methodically growing the mine's official reserve base. Exploration drilling, meanwhile, pushed into new territory at depth, demonstrating that the deposit extends well beyond its current defined limits.

The results from FDN East, a deposit located less than 100 metres from existing mine infrastructure, were a game-changer. The record intercept there has galvanized the company's confidence, leading to the strategic decision to drive a new underground tunnel from the main FDN mine. This move will dramatically accelerate further drilling and paves the way for future production.

Jamie Beck, President and CEO, articulated the strategic success: "Our conversion and exploration programs continue to deliver exceptional results across our known epithermal gold deposits. These results reinforce our confidence that FDNS will continue to grow... At FDN East, the highest-grade interval ever recorded... increases our confidence in the deposit's growth and conversion potential. As a result, we have commenced underground development toward FDN East from FDN."

The Blueprint for Permanence: Strategy Over Serendipity

What appears as a sudden bonanza is, in reality, the product of a well-executed, long-term strategy focused on performance and permanence. Rather than chasing risky greenfield projects, Lundin Gold is leveraging its existing operational base and deep understanding of the local geology to unlock value in its own backyard. This near-mine exploration is a capital-efficient approach that maximizes the value of established infrastructure.

The company's commitment is underscored by its record $100 million exploration program for 2026—the largest single-year exploration investment in Ecuador's history. This is not a speculative bet but a calculated deployment of capital to systematically expand a known, high-quality asset. Since achieving commercial production in 2020, the company has consistently replaced and grown its Mineral Reserves year after year, even after accounting for mining depletion. This track record is the hallmark of a resilient, long-life operation that generates value through the drill bit.

The decision to begin development at FDN East is particularly telling. It moves the deposit from a promising exploration target to a tangible development project, shrinking the timeline to potential production and demonstrating management's conviction. This proactive approach to building out the mine's future production pipeline is a core element of establishing permanence in an industry often defined by finite resources.

A Financial Fortress and Future Optionality

This aggressive and successful exploration is powered by a balance sheet that can only be described as a fortress. With a reported $704 million in cash and no debt at the end of the first quarter of 2026, Lundin Gold is in the enviable position of funding its growth organically from its robust free cash flow. This financial discipline ensures that the company controls its own destiny, independent of fickle capital markets.

For investors, the implications are profound. The ongoing exploration success points toward a significantly extended mine life and potential production increases, with a mill expansion study already underway to assess throughput beyond the current 5,500 tonnes per day. This creates a clear path to sustained, long-term cash flow and shareholder returns.

Perhaps most intriguing is the emerging potential of the broader Fruta del Norte district. Beyond the high-grade epithermal gold veins, Lundin Gold's exploration program has identified a series of large-scale copper-gold porphyry systems, including the recently announced Sandia discoveries. While early stage, this introduces a powerful new dimension to the company's story. The potential for a district-scale copper-gold camp offers tremendous future optionality. As one industry analyst noted, if further drilling confirms the scale of these porphyry systems, it could fundamentally re-rate the asset and potentially support a doubling of production levels within the next five years, diversifying the company's metal exposure into copper—a key commodity for the global energy transition.

The Foundation of Value: A License to Operate

Ultimately, the long-term success of any mining operation rests not just on its geology and finances, but on its social license to operate. Here too, Lundin Gold has demonstrated a commitment to permanence. The Fruta del Norte mine is a cornerstone of the regional economy in southeast Ecuador, and the company has cultivated strong relationships with the government and local communities, including the Shuar and Saraguro Indigenous peoples.

Through targeted programs supporting local businesses, prioritizing local employment, and adhering to strict environmental standards, the company has built a foundation of trust. Its formal Exploitation Agreement with the Ecuadorian government provides fiscal stability and a clear framework for sharing the benefits of the mine. This holistic approach, which integrates operational excellence with social and environmental responsibility, is what transforms a rich deposit into an enduring, world-class enterprise. The latest drill results are not an end point, but another chapter in a story of building resilient, permanent value.