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The
Company will restate and refile its financial statements for the year ended
December 31, 2006, primarily to reflect amendments to the original allocation
of the purchase price for the acquisition of EuroZinc Mining Corporation. The
effect on net earnings for the year ended December 31, 2006 is not expected
to be significant. The Company will also restate and refile its financial
statements for each of the interim periods in 2007 to reflect changes
primarily relating to the incorrect tax rate having been used. The Company
anticipates an aggregate reduction in net earnings for the nine months ended
September 30, 2007 of approximately US$55 million including, among other
items, an increase in current tax expenses of approximately US$16 million,
and a reversal of future income tax recovery of approximately US$46 million.
The original future income tax recovery of US$46 million was initially
recognized in the third quarter of 2007.
The Company's financial statements, as previously published and filed in
respect of the periods noted above, should no longer be relied upon. The
above financial information represents management's best estimates of the
effects of the restatement. The Company expects to file the restated
financial statements, together with restated management's discussion and
analysis for each period, and any other required documents, prior to the
issuance of the Company's year end results.
On behalf of the Board,
Lukas H. Lundin
Chairman
About Lundin Mining
Lundin Mining Corporation is a rapidly growing, diversified base metals
mining company with operations in Portugal, Spain, Sweden and Ireland. The
Company currently has six large-scale, long life mines in operation producing
copper, nickel, lead and zinc. In addition, Lundin Mining holds a development
project pipeline which includes the world class Tenke Fungurume copper/cobalt
project in the Democratic Republic of Congo and the Ozernoe zinc project in
Russia. As well, the Company holds an extensive exploration portfolio and
interests in international mining and exploration ventures.
For further information, please contact:
Anders Haker, CFO: +46-70-810-8559
Catarina Ihre, Manager, Investor Relations: +46-70-607-9263
Sophia Shane, Investor Relations, North America: 1-604-689-7842
Certain of the statements made and information contained herein is
"forward-looking information" within the meaning of the Ontario
Securities Act or "forward-looking statements" within the meaning
of Section 21E of the Securities Exchange Act of 1934 of the United States.
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 companies' 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 and zinc; that the
companies can access financing, appropriate equipment and sufficient labour
and that the political environment where the Companies operate 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.
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