LUNDIN MINING ANNOUNCES 2014 PRODUCTION RESULTS

Toronto, January 21, 2015 (TSX: LUN; Nasdaq Stockholm: LUMI) Lundin Mining Corporation (“Lundin Mining” or the “Company”) today announced production results for the three and twelve months ended December 31, 2014.

2014 Highlights:

• Exceeded the high-end of our annual production guidance for zinc and nickel while meeting our overall targets for copper and lead.
• Eagle ramp-up performed ahead of schedule, with production exceeding annual guidance for both nickel and copper.
• Ended 2014 with a net debt balance of $829.5 million.  The Company does not have any amounts drawn on its $350 million revolving credit facility.

A summary of the Company's production results compared against guidance is shown below:

^1.  Guidance as presented in the Company’s Management Discussion and Analysis as at September 30, 2014.

^2.  Production results for Tenke have not yet been released by operator Freeport-McMoRan Inc.

^3.  Candelaria production results are for the period from November 3, 2014 to December 31, 2014.

Paul Conibear, President and CEO commented, “We are very pleased to have met and in a number of cases excelled on production compared to annual production guidance.  We are particularly proud of the continued ramp-up at the Eagle mine which had a very successful year in 2014, and is expected to generate significant cash flow for the Company going forward.  For 2015, we anticipate another year of strong execution as we focus on cash generation and profit optimization at each of our operations. Of special note, I extend congratulations to our operating teams for achieving a new Company safety record performance, with improvements recorded across all operations. "

Operational Commentary

• Operations safety performance: was a company record during 2014, with a Total Recordable Injury Frequency Rate (“TRIFR”) achieved of 1.6 (measured per 200,000 man hours worked). This was an improvement of 20% over 2013’s achievement of a TRIFR of 2.0. Improvements in safety performance at all operations were accomplished over the course of the year.

• Environmental performance: met expectations with no Level 3 incidents experienced (2013 had one level 3 incident).

• Neves-Corvo: Fourth quarter copper production achieved the highest quarterly rate of the year. Total annual copper production was in-line with expectations as high throughput levels largely offset lower than expected recovery rates.

Zinc production achieved an annual record as a result of an increased proportion of zinc ore being derived from the Lombador deposit. Over 50% of the zinc ore is now being sourced from this area as well as from other high grade zinc areas in the mine.

• Zinkgruvan: Zinc, lead and copper production were all in line with annual production targets.  Zinkgruvan again this year achieved a historic new milestone with record tonnage of ore mined and milled.

• Aguablanca:  The operation had another strong performance with nickel and copper production both higher than guidance, which itself was increased earlier in the year.  Refined mine planning has enabled open pit mining to be extended well into the first quarter of 2015, 3 months longer than expected.  Underground mining development is advancing as planned and is expected to ramp up in the second quarter of 2015.

• Eagle: As previously announced, ramp up continued through the fourth quarter with commercial production being declared on November 24th, 2014.   For the year, nickel and copper production exceeded guidance as throughput, grades and recoveries were all higher than expected.

• Candelaria: The acquisition of Candelaria closed on November 3, 2014.  For the period from November 3, 2014 to December 31, 2014, the Candelaria and Pedro Aguirre Cerde processing plants collectively produced, on a 100% basis, 28,590 tonnes of copper, 317,996 ounces of silver, and 16,247 ounces of gold in concentrates. 

2014 Operating Statistics

Details of operating statistics by mine, by quarter and for the year follow in the attached table:

1. Lundin Mining ownership effective as of November 3, 2014, therefore Candelaria results prior to this date have not been disclosed.

Financial Results and 2015 Guidance

2015 production and cash operating cost guidance remains as per the press release issued 4 December 2014. Given current metal price declines, capital and exploration spending in selected areas is being reviewed and any resulting restraint measures will be reported along with the Company’s 2014 financial results on Wednesday February 18th after market close, followed by a conference call and webcast on Thursday February 19th at 8:00 am Eastern Time.  Conference call details are provided below:

Please call in 10 to 15 minutes before the conference starts and stay on the line (an operator will be available to assist you).

Call-in number for the conference call (North America): +1 416 340 2216
Call-in number for the conference call (North America Toll Free): +1 866 225 2055
Call-in number for the conference call (Europe Toll Free): +00 800 9559 6849

To take part in the interactive presentation, please log on using this direct link:
http://www.investorcalendar.com/IC/CEPage.asp?ID=173539

The presentation slideshow will also be available in PDF format for download from the Lundin Mining website www.lundinmining.com before the conference call.

A replay of the telephone conference will be available approximately one hour after the completion of the conference call until February 26, 2015.

Replay numbers:
North America: +1 905 694 9451
The pass code for the replay is: 5286647

Webcast:  http://www.investorcalendar.com/IC/CEPage.asp?ID=173539

About Lundin Mining

Lundin Mining Corporation is a diversified base metals mining company with operations in Chile, Portugal, Sweden, Spain and the United States, producing copper, zinc, lead and nickel. In addition, Lundin Mining holds a 24% equity stake in the world-class Tenke Fungurume copper/cobalt mine in the Democratic Republic of Congo and in the Freeport Cobalt Oy business, which includes a cobalt refinery located in Kokkola, Finland.

On Behalf of the Board,

Paul Conibear

President and CEO

Qualified Person

Mr. Steve Gatley, B.Sc (Eng.), C.Eng., is the Qualified Person as defined by National Instrument 43-101. Mr. Gatley is Vice President, Technical Services for the Company and has reviewed and approved the technical information contained in this news release.

Forward Looking Statements

Certain of the statements made and information contained herein is "forward-looking information" within the meaning of the Ontario Securities Act. This release includes, but is not limited to, forward looking statements with respect to the Company’s estimated full year metal production and C1 cash costs, as noted in the Segmented Guidance section and elsewhere in this document. These estimates and other forward-looking statements are based on a number of assumptions and 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 the estimated cash costs, the timing and amount of production from the Eagle Project, the cost estimates for the Eagle Project, 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’s discussion and analysis. Forward-looking information may also be based on other various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of copper, zinc, lead and nickel; 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 Manager Corp Development & Investor Relations: +1-416-342-5565
         Robert Eriksson, Investor Relations Sweden: +46 8 545 015 50