Lundin Gold Reports Further High-Grade Results at FDNS including 108.61 g/t Au over 11.75 Metres; Development Begins Toward FDN East Following Record Drill Result of 236.62 g/t Au over 3.95 Metres

VANCOUVER, B.C., July 27, 2026 /CNW/ - Lundin Gold Inc. (TSX: LUG) (Nasdaq Stockholm: LUG) (OTCQX: LUGDF) (“Lundin Gold” or the “Company”) is pleased to report strong results from its ongoing conversion and near‑mine exploration drilling programs at the Fruta del Norte (“FDN”) gold mine in southeast Ecuador.

The drilling programs continue to deliver positive results at FDN, FDN South (“FDNS”), and FDN East. With four gold-silver epithermal deposits identified to date, the Company has a significant pipeline to continue growing Mineral Resources and Mineral Reserves.

Highlights

• FDNS exploration: High-grade intercepts at depth continue to extend mineralization beyond the current Mineral Resource envelope, highlighting the potential for further resource growth.
• FDNS conversion: Conversion drilling demonstrates continuity and grade in support of potential resource and reserve growth.
• FDNS development: Development is advancing through the deposit, with development crosscuts successfully intersecting modelled mineralization and providing initial development ore.
• FDN East: The highest-grade interval ever recorded at FDN East, together with continued success expanding high-grade mineralization to the east, reinforces confidence in the deposit’s growth and conversion potential. Underground development toward FDN East is underway to accelerate drilling and support potential future production.
• FDN: Results extend the upper portion of the main FDN mineralized envelope close to existing underground infrastructure, highlighting additional near-mine resource growth opportunities.

Jamie Beck, President and CEO, commented, “Our conversion and exploration programs continue to deliver exceptional results across our known epithermal gold deposits. Recent drilling results support the potential to expand these deposits and grow Mineral Reserves and Mineral Resources while also highlighting the consistently high-grade nature of the mineralized system at Fruta del Norte.

At FDNS, drilling continues to intercept exceptional grades over mineable widths, including several high-grade intercepts beyond the current Mineral Resource envelope. These results reinforce our confidence that FDNS will continue to grow as we advance the deposit toward future production. Development to the south has successfully intersected mineralized veins building confidence in the geological model.

At FDN East, the highest-grade interval ever recorded at the deposit, combined with expanding mineralization to the east, further increases our confidence in the deposit’s growth and conversion potential. As a result, we have commenced underground development toward FDN East from FDN. Similar to the approach successfully implemented at FDNS, this development is expected to provide improved access for exploration and conversion drilling while also establishing the initial infrastructure required to support potential future production.

Together, the advancement of FDNS, the growth of FDN East and ongoing success at FDN demonstrate the strength of our known epithermal exploration pipeline and provide multiple opportunities to create long-term value from the broader Fruta del Norte mineralized system.”

Conversion Drilling Program Highlights (not true widths)

FDNS

• Drill hole FDN-C26-443 intersected 199.90 grams per tonne (“g/t”) of gold (“Au”) over 6.90m from 66.60m, including:

• 762.84 g/t Au over 1.80m

• Drill hole FDN-C26-481 intersected 196.79 g/t Au over 4.50m from 161.35m, including:

• 929.00 g/t Au over 0.90m

• Drill hole FDN-C26-459 intersected 90.91 g/t Au over 6.80m from 137.40m, including:

• 214.40 g/t Au over 2.45m

• Drill hole FDN-C26-453 intersected 53.01 g/t Au over 8.40m from 31.30m, including:

• 220.08 g/t Au over 1.85m

Exploration Drilling Program Highlights (not true widths)

FDNS

• Drill hole UGE-S-26-478 intersected 108.61 g/t Au over 11.75m from 177.80m, including:
  • 2,030.00 g/t Au over 0.40m
• Drill hole UGE-S-26-497 intersected 67.19 g/t Au over 5.80m from 37.50m, including:
  • 552.00 g/t Au over 0.40m
• Drill hole UGE-S-26-505 intersected 19.33 g/t Au over 5.35 from 56.95m, including:
  • 49.44 g/t Au over 2.00m

FDN East

• Drill hole UGE–E-26-487 intersected 236.62 g/t Au over 3.95 m from 280.75m including:

• 933.00 g/t Au over 1.00m

• Drill hole FDNE-2026-466-D2 intersected 23.16 g/t Au over 6.25m from 429.05m, including:

• 39.01 g/t Au over 3.00m

FDN

• Drill hole UGE-26-520 intersected 9.32 g/t Au over 20.90 m from 50.90m including:

• 18.85 g/t Au over 6.50m

• Drill hole UGE-26-523 intersected 15.05 g/t Au over 8.05m from 45.60m, including:

• 25.35 g/t Au over 2.45m

FDNS

Underground drilling programs continue to advance at FDNS, located directly south of the FDN deposit. In 2026, the Company declared an inaugural Mineral Reserve of 0.54 Moz (2.50 Mt at 6.66 g/t Au) approximately 18 months after the deposit’s discovery.

Following the declaration of the inaugural Mineral Reserve, the Company commenced underground development from the South Portal toward FDNS, taking the first round in April. Approximately 116 metres of development has been completed from the South Portal and 252 metres from existing access points on the 1170 level. Development crosscuts from these levels have successfully intersected mineralized veins, building confidence in the geologic model.

The current conversion drilling program aims to upgrade Inferred Resources to the Indicated category and support further Mineral Reserve additions. Since January, approximately 12,678 metres of drilling has been completed across 110 holes and outstanding intercepts continue to be recorded along the entire extension of the FDNS deposit (Figure 2). Notably, holes FDN-C26-443, FDN‑C25‑459, and FDN‑C26‑481 have defined distinct higher-grade mineralized zones, providing areas for further drilling.

The exploration drilling program continues to successfully intercept the continuity of the FDNS deposit beyond the current Mineral Resource. Holes UGE-S-26-478, UGE-S-26-497, and UGE-S-26-505 returned high-grade mineralized intercepts at depth, highlighting areas for further expansion (Figure 3). Results received to date are summarized in Table 1. Five underground rigs are currently operating at FDNS.

FDN EAST

FDN East is a buried epithermal system composed of multiple subparallel north‑south trending veins located less than 100 metres from the main FDN mine infrastructure. FDN East has initially been defined over a 500‑metre strike length, and the Company published an inaugural Mineral Resource estimate in 2026 of 0.42 Moz Au (2.17 Mt at 6.01 g/t Au).

The FDN East deposit remains open in all directions and drilling has successfully expanded the mineralized footprint along strike to the north and to the south as well as toward the east. In the central portion of the deposit, hole UGE-E-26-487 returned the highest‑grade intercept ever recorded at FDN East, highlighting the potential for the area to host high-grade mineralized zones (Figure 4). Surface hole FDNE-2026-466-D2 confirmed the continuity of the recently discovered high-grade veins in the eastern portion of the deposit and suggests further exploration potential to the east of the known limits of mineralization. Currently, two underground rigs and one surface rig are operating at FDN East. Results received to date are presented in Table 2.

The Company has commenced underground development from FDN toward FDN East, which will provide improved angles and shorter hole lengths for conversion drilling, better access to test exploration extensions of the FDN East deposit and support potential future production (Figure 4).

FDN

At FDN, underground exploration drilling results confirm the upper extension of the deposit along the contact with the Suarez Conglomerate, close to existing underground infrastructure. Drillholes UGE‑26‑520 and UGE‑26‑523 both intercepted continuous mineralization on levels readily accessible from current mine development (Figure 5). Results received to date are summarized in Table 3.

Figure 1: Map showing FDN mineral footprint with the FDN, FDNS, FDN East, and Bonza Sur deposits

Figure 2: Long section showing FDN, FDNS, and FDN East deposits with selected FDNS conversion drilling

Figure 3: Long section showing FDN and FDNS deposits with selected FDNS Exploration drilling results

Figure 4: Map showing FDN, FDNS, and FDN East deposits with selected FDN East exploration drilling results

Figure 5: Long Section showing FDN, FDNS, and FDN East deposits with selected exploration drilling results along the FDN upper extension

Qualified Persons and Technical Notes

The technical information contained in this News Release has been reviewed and approved by Andre Oliveira, P. Geo, Vice President, Exploration of the Company, who is a Qualified Person in accordance with the requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Samples consist of half HQ and NQ-size diamond core that are split by diamond saw on site, prepared at the ALS laboratory in Quito, and analyzed by 50g fire assay and multi-element (ICP-AES/ICP-MS) at the ALS Laboratory in Lima, Peru.  The quality assurance-quality control (QA-QC) program of Lundin Gold includes the insertion of certified standards of known gold content, blank and duplicate samples.  The remaining half core is retained for verification and reference purposes. For further information on the assay, QA-QC, and data verification procedures, please see Lundin Gold’s most recent Annual Information Form.

Additional Information

The information in this release is subject to the disclosure requirements of Lundin Gold under the EU Market Abuse Regulation.  This information was publicly communicated on July 27, 2026 at 2:00 p.m. Pacific Time through the contact persons set out below.

Caution Regarding Forward-Looking Information and Statements

Certain of the information and statements in this press release are considered "forward-looking information" or "forward-looking statements" as those terms are defined under Canadian securities laws (collectively referred to as "forward-looking statements").  Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "believes", "anticipates", "expects", "is expected", "scheduled", "estimates", "pending", "intends", "plans", "forecasts", "targets", or "hopes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "will", "should" "might", "will be taken", or "occur" and similar expressions) are not statements of historical fact and may be forward-looking statements. By their nature, forward-looking statements and information involve assumptions, inherent risks, and uncertainties, many of which are difficult to predict, and are usually beyond the control of management, that could cause actual results to be materially different from those expressed by these forward-looking statements and information.  Lundin Gold believes that the expectations reflected in this forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct.  Forward-looking information should not be unduly relied upon.  This information speaks only as of the date of this press release, and the Company will not necessarily update this information, unless required to do so by securities laws.

This press release contains forward-looking information in a number of places, such as in statements relating to the Company’s exploration plans, activities and results and its plans to update its estimates of Mineral Reserves and Resources.  There can be no assurance that such statements will prove to be accurate, as Lundin Gold's actual results and future events could differ materially from those anticipated in this forward-looking information as a result of the factors discussed in the "Risk Factors" section in Lundin Gold's Annual Information Form dated March 20, 2026 available under the Company’s profile at www.sedarplus.ca.

Lundin Gold's actual results could differ materially from those anticipated.  Factors that could cause actual results to differ materially from any forward-looking statement or that could have a material impact on the Company or the trading price of its shares include: fiscal risk; community relations; mining operations; security situation; waste disposal and tailings; environmental compliance; illegal mining; infrastructure; forecasts relating to production and costs; land acquisition and surface rights; indigenous consultation requirements; Mineral Reserve and Mineral Resource estimates; regulatory compliance and government approvals; dependence on a single mine; climate change and extreme weather events; shortages of critical resources; exploration and development; control of Lundin Gold; information systems and cyber security; health and safety; human rights; measures to protect biodiversity, endangered species and critical habitats; global economic conditions; competition for new projects; availability of workforce and labour relations; key talent recruitment and retention; gold price; market price of the Company's shares; social media and reputation; insurance and uninsured risks; dividends; internal controls; conflicts of interest; violation of anti-bribery and corruption laws; claims and legal proceedings; reclamation obligations; expropriation and nationalization; and pandemics, epidemics or infectious disease outbreak.

APPENDIX 1

Table 1: Drillhole assay results from the FDNS drilling program reported for thickness versus grade intervals above 8.37 (m x g/t Au > 8.37). Drill hole intercepts are reported in drill core lengths and true widths.