VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 02/22/07 -- Lundin Mining Corporation (TSX: LUN)(AMEX: LMC)(SSE: LUMI) - (all amounts are in US Dollars unless otherwise stated)

Financial Summary

                      Three months Three months Twelve months Twelve months
Millions of US$,             ended        ended         ended         ended
 except per                 Dec 31,      Dec 31,       Dec 31,       Dec 31,
 share data                   2006         2005          2006          2005
---------------------------------------------------------------------------
Sales                        236.1         63.8         539.7         192.1
EBITDA (i)                   112.9         27.5         291.2          75.4
EBITDA, excl. one-off
 items (i),(ii)              151.5         27.5         329.8          75.4
Net income                    63.6         14.2         152.9          30.0
Basic earnings per
 share (iii)                  0.28         0.12          1.02          0.26
Diluted earnings per
 share (iii)                  0.27         0.12          1.01          0.26
Cash provided by
 operating activities        110.7         33.2         247.2          66.7

(i)   Non GAAP measure.

(ii)  As a consequence of the merger between Lundin Mining and EuroZinc
      Mining, the Neves-Corvo mine concentrate inventory as of October 31,
      2006 was recorded at fair value resulting in a non recurring item of
      $38.6 million recorded as cost of sales in November and December
      2006.

(iii) All figures related to shares and per share data are calculated as if
      the three-for-one stock split effective February 8, 2007 occurred at
      the beginning of the first period presented.

Company Comments

Colin K. Benner, Vice Chairman and CEO of the Company, said, "Lundin Mining had an extraordinary year in 2006 having had a successful merger with EuroZinc Mining, excellent results in mine development, and good progress in the ongoing efforts to improve performance at our operations. At the end of the year we have three major zinc projects underway; Ozernoe, Aljustrel and Neves-Corvo and we are actively seeking other opportunities in the base metal industry and were doing so throughout 2006. The financial results, excluding non-cash one-off items related to the merger, were the highest recorded in the history of the Company and the cash generated will provide for future growth and value creation for the Company's shareholders. We plan to continue with our strategy of aggressive growth and the adding of quality long life reserves to our present asset base."

Highlights

- Consolidated base metal producer EuroZinc Mining Corporation into Lundin Mining Corporation as of November 1, 2006. The main assets of EuroZinc Mining consisted of the Portuguese copper-zinc mine, Neves-Corvo, the Aljustrel project, a zinc-lead-silver mine which will be re-opened in 2007 and significant exploration properties in Portugal. Due to merger accounting rules the inventory at the Neves-Corvo mine was valued at fair value as of October 31, 2006. As a result, a non-recurring, non-cash item of $38.6 million has been recorded as a cost of sales in November and December 2006.

- Finalized the acquisition of a 49% interest in the Ozernoe zinc project in the Republic of Buryatia, Russia. The planning and work to construct an open pit zinc-lead-silver mine has begun and the preliminary estimate on mine production is for a 2009 startup.

- A 10% holding was acquired in the Canadian exploration company Mantle Resources Inc., the main asset of which is the Akie zinc-lead deposit in British Columbia, Canada.

- A 14% holding was acquired in Sanu Resources Ltd. which holds promising exploration properties in Eritrea, Burkina Faso and in Morocco.

- Achieved design levels for zinc production at Neves-Corvo in December 2006 just five months from the commissioning date. This was substantially ahead of the typical industry ramp-up time for similar base metals process plants.

Selected Financial Information
Thousands of USD

                  Three months  Three months  Twelve months  Twelve months
                         ended         ended          ended          ended
                  Dec 31, 2006  Dec 31, 2005   Dec 31, 2006   Dec 31, 2005
--------------------------------------------------------------------------
Sales            $     236,072        63,820        539,729        192,073
Cost of sales    $    (109,382)      (30,309)      (219,088)       (98,710)
Accretion of
 asset retirement
 obligations     $      (1,284)            -         (1,284)             -
Exploration
 expenses        $      (4,505)       (2,606)        (9,857)        (7,146)
Administration
 and other income
 (expenses)      $      (8,011)       (3,356)       (18,319)       (10,864)
                 ---------------------------------------------------------
EBITDA (i)       $     112,890        27,549        291,181         75,353

Depreciation of
 property, plant
 and equipment   $     (16,094)       (6,031)       (30,877)       (20,267)
Amortization of
 mining rights   $     (16,842)       (9,656)       (44,114)       (31,732)
                 ---------------------------------------------------------
EBIT (i)         $      79,954        11,862        216,190         23,354

Result on
 derivatives
 (ii)            $      15,284        (2,095)           420         (2,095)
Net interest and
 other financial
 items           $     (11,148)       10,096        (11,336)        22,806
                 ---------------------------------------------------------
EBT (i)          $      84,090        19,863        205,274         44,065

Tax and
 non-controlling
 interest        $     (20,500)       (5,642)       (52,325)       (14,102)
                 ---------------------------------------------------------
Net income for
 the period      $      63,590        14,221        152,949         29,963

Operating
 Cash Flow       $     110,721        33,197        247,221         66,665
Capital
 Expenditures    $    (131,569)       (8,763)      (151,349)       (17,957)

(i)  Non GAAP measures.

(ii) Includes realized and unrealized result on derivatives.


Key Financial Data(i)

                  Three months  Three months  Twelve months  Twelve months
                         ended         ended          ended          ended
                  Dec 31, 2006  Dec 31, 2005   Dec 31, 2006   Dec 31, 2005
                  --------------------------------------------------------

Shareholders'
 equity/share,
 USD(ii)          $       7.48          2.00           7.48           2.00
Basic earnings/
 share, USD       $       0.28          0.12           1.02           0.26
Diluted earnings/
 share, USD       $       0.27          0.12           1.01           0.26
Dividends                  Nil           Nil            Nil            Nil

Basic weighted
 average number
 of shares
 outstanding       229,890,861   121,886,583    149,439,546    115,249,458
Diluted weighted
 average number
 of shares
 outstanding       231,724,899   122,175,768    151,152,105    115,975,563

Number of shares
 outstanding at
 period end        284,800,065   122,081,493    284,800,065    122,081,493

(i)  All figures related to shares and per share data are calculated as if
     the three-for-one stock split effective February 8, 2007 occurred at
     the beginning of the first period presented.

(ii) Shareholders'equity/share is defined as shareholders'equity divided by
     total number of shares outstanding at period end.

MANAGEMENT'S COMMENTS ON RESULTS OF OPERATIONS AND FINANCIAL CONDITION

(all amounts in US Dollars unless otherwise stated)

Three months ended December 31, 2006

The following are Management's comments on the financial and operating results for the three months, ended December 31, 2006 and is dated February 21, 2007.

Recent Events

Lundin Mining and EuroZinc Mining finalized merger

On August 21, 2006, Lundin Mining and EuroZinc Mining announced that the two companies had entered into an agreement to merge through a Plan of Arrangement. Following approvals at Special Shareholders' Meetings held by each of the companies on October 19, 2006, and court approval on October 24, 2006, the transaction closed on October 31, 2006. As of November 1, 2006 EuroZinc Mining was amalgamated into Lundin Mining and on the same date Lundin Mining listed on the American Stock Exchange ("AMEX" symbol LMC) in addition to the Toronto Stock Exchange ("TSX" symbol LUN) and the Stockholm Stock Exchange ("SSE" symbol LUMI).

Lundin Mining now operates two mines in Sweden and a mine in each of Portugal and Ireland. In September 2007, a fifth mine is planned to start production in Portugal. Production for 2006, on a combined basis, amounted to 89,218 tonnes of copper metal contained in concentrate, 171,293 tonnes of zinc metal contained in concentrate, 45,106 tonnes of lead metal contained in concentrate and 2,538,225 ounces of silver contained in concentrate. The Company has approximately 1,500 employees following the merger.

For further information regarding the merger between Lundin Mining and EuroZinc Mining, see the October 31, 2006 news release issued by the Company.

Finalized acquisition of 49% interest in the Ozernoe zinc/lead project

The acquisition of a 49% interest in the Ozernoe project, a major zinc/lead deposit located in the Republic of Buryatia in the Russian Federation, was finalized in November 2006. Lundin Mining's consideration for its 49% interest was $125 million.

A joint venture company was formed which is held 49% by Lundin Mining and 51% by IFC Metropol ("Metropol"). The activities of the joint venture company are governed by a Shareholders' Agreement. Lundin Mining's $125 million consideration comprised of $2 million, paid to secure negotiation exclusivity on the project, and $113 million paid upon closing of the transaction, of which $10 million is for costs incurred after signing the Letter of Intent in May, 2006 for a bankable feasibility study. The remaining $10 million is payable after the project has gone into commercial production. The final purchase price is subject to an adjustment based on recoverable zinc metal from the JORC Code resources that are confirmed in the bankable feasibility study.

Lundin Mining has overall management responsibility for the project, including development, construction and operation of the mine once completed. The preliminary capital expenditure for the project is $400 million, as estimated in the pre-feasibility study. Lundin Mining is also responsible for arranging project financing in an amount equal to 60% of the cash required to put the project into commercial production, with the remaining 40% injected as equity by Lundin Mining and Metropol on a pro-rata basis.

For further information regarding the acquisition of Ozernoe, see the November 17, 2006 news release issued by the Company.

Investment in Mantle Resources

In November 2006, Lundin Mining entered into a financing arrangement with Mantle Resources Inc., a publicly traded mining company listed on the TSX Venture Exchange (TSX VENTURE: MTS), pursuant to which Lundin Mining subscribed for 3,685,000 units of Mantle by way of a non-brokered private placement at a price of C$0.78 per unit for an investment of C$2,874,300. Each unit consisted of one common share of Mantle and one common share purchase warrant. Each warrant is exercisable into one additional common share of Mantle at a price of C$0.78 for a period of two years from the closing of the private placement. Lundin Mining held just under 10% of the common shares of Mantle on December 31, 2006. The securities are subject to a four-month hold period from the date of closing.

Mantle is exploring the Akie zinc-lead property in northeastern British Columbia, Canada which comprises mineral claims of some 5,400 hectares, approximately 20 km to the southeast of the Cirque deposit (owned by Teck Cominco/Korea Zinc), with an historical resource estimate in excess of 40 million tonnes grading 7.8% zinc, 2.2% lead and 48 grams of silver per tonne. Pursuant to an option agreement with Ecstall Mining Corporation, a public junior exploration company, Mantle is earning a 65% interest in the Akie property. On February 12, 2007 Mantle reported that it had acquired control of Ecstall Mining Corporation. Mantle also recently acquired a 100% interest in certain mineral claims located in the Mt. Alcock area of northeastern British Columbia.

For further information regarding the investment in Mantle Resources Ltd., see the November 24, 2006 news release issued by the Company.

Subsequent Events

Serious accident at the Galmoy mine

It is with great regret that the Company has to report a fatality which occurred at the Galmoy mine. The deceased fell from a platform at the underground crusher and sustained head injuries. He passed away on February 18th, 2007. Management, in conjunction with the Irish Health and Safety Authorities, will thoroughly investigate the accident. Operations at the Galmoy mine will be at a stand-still until after the funeral.

Announcement of management changes

Effective March 31, 2007 Mr. Colin K. Benner, Vice Chairman and Chief Executive Officer of Lundin Mining will be stepping down as Chief Executive Officer, remaining as Vice-Chairman and a Director of the Company. Mr. Karl-Axel Waplan, currently President and Chief Operating Officer of the Company, will remain as President and replace Mr. Benner as Chief Executive Officer. In addition, Mr. Joao Carrelo, presently Executive Vice President and Chief Operating Officer of Spain and Portugal Operations will take on the role of Chief Operating Officer of Lundin Mining.

On February 9, 2007 Lundin Mining announced the appointment of Mikael Schauman to the position of Vice President Marketing effective immediately. Mr. Schauman will be based in Stockholm and report directly to the Chief Executive Officer of the Company.

Acquisition of 4 million units of Sanu Resources Ltd.

In January 2007 Lundin Mining completed the acquisition of 4,000,000 units of Sanu Resources Ltd. ("Sanu") at a price of C$0.65 per unit for a total investment of C$2.6 million. Each unit comprises one common share and one non-transferable common share purchase warrant, exercisable into one common share of Sanu at a price of C$0.90 per share over a period of 2 years. As a result of the acquisition, the Company owned approximately 14% of the issued and outstanding common shares of Sanu as at January 30, 2007 before giving effect to any shares that may be acquired by the Company on exercise of the share purchase warrants.

Sanu is a publicly-traded mining company listed on the TSX Venture Exchange (TSX VENTURE: SNU).

For further information regarding the investment in Sanu Resources Ltd., see the January 30, 2007 news release issued by the Company.

Negotiations with the unions at Galmoy

On January 12, 2007 the Company reported on the status of negotiations between management of the Galmoy mine and the unions representing its employees. Delays in the negotiations, which have been ongoing since June 2006, resulted in employees at the mine becoming distracted by the process and production was negatively impacted. On February 7, 2007 the Company reported that the production at Galmoy had returned to normal levels. The Company expects that negotiations, led by the Irish Labour Relations Commission, will resume shortly.

Stock split

On February 8, 2007 a stock split of three-for-one, was implemented. The stock split was approved by the shareholders of the Company at a special meeting of the shareholders held on October 19, 2006 and subsequently approved by the Board of Directors on December 14, 2006. Management believes there has been limited liquidity in the common shares of the Company and that the subdivision will create a larger public float and hence greater liquidity. Upon completion of the split, the Company had approximately 285 million shares outstanding.

Summary of Operations

Metal produced(i)

                                     Three      Three
                                    months     months     Twelve    Twelve
                                     ended      ended     months    months
                                    Dec 31,    Dec 31,    Dec 31,   Dec 31,
                                      2006       2005       2006      2005
--------------------------------------------------------------------------
Zinc (tonnes)    Neves-Corvo         4,486          -      7,505         -
                 Zinkgruvan         19,750     16,549     75,909    69,981
                 Storliden           5,728      7,259     27,824    32,024
                 Galmoy             13,473     21,211     60,055    74,321
                 ---------------------------------------------------------
                 Total              43,437     45,019    171,293   176,326

Copper (tonnes)  Neves-Corvo        18,625     22,309     78,576    88,354
                 Storliden           2,153      2,835     10,642    10,839
                 ---------------------------------------------------------
                 Total              20,778     25,144     89,218    99,193

Lead (tonnes)    Zinkgruvan          8,653      8,496     31,850    36,674
                 Galmoy              2,798      4,554     13,256    17,284
                 ---------------------------------------------------------
                 Total              11,451     13,050     45,106    53,958

Silver (ounces)  Neves-Corvo       155,895    184,503    645,521   764,828
                 Zinkgruvan        475,751    486,042  1,760,907 1,866,061
                 Galmoy             16,918     54,030    131,572   203,292
                 ---------------------------------------------------------
                 Total             648,564    724,575  2,538,000 2,834,181

--------------------------------------------------------------------------
(i) 100% of the production at Neves-Corvo and Galmoy is included for 2005
    and 2006. This does not, however, represent Lundin Mining's actual
    ownership during these periods. EuroZinc Mining (owner of Neves-Corvo)
    completed a merger with Lundin Mining in October 2006 and ARCON
    (owner of Galmoy) was aquired by Lundin Mining in April 2005.


Metal sold(i)
                                     Three      Three
                                    months     months     Twelve    Twelve
                                     ended      ended     months    months
                                    Dec 31,    Dec 31,    Dec 31,   Dec 31,
                                      2006       2005       2006      2005
--------------------------------------------------------------------------
Zinc (tonnes)    Neves-Corvo         4,285          -      6,063         -
                 Zinkgruvan         19,139     15,567     78,716    66,490
                 Storliden           5,737      7,259     27,824    32,012
                 Galmoy             14,258     21,668     59,197    73,057
                 ---------------------------------------------------------
                 Total              43,419     44,494    171,800   171,559

Copper (tonnes)  Neves-Corvo        21,235     21,822     79,249    92,409
                 Storliden           2,153      2,835     10,642    10,851
                 ---------------------------------------------------------
                 Total              23,388     24,657     89,891   103,260

Lead (tonnes)    Zinkgruvan          5,811      7,470     29,438    35,654
                 Galmoy              2,673      2,987     14,042    15,063
                 ---------------------------------------------------------
                 Total               8,484     10,457     43,480    50,717

Silver (ounces)  Neves-Corvo       114,641    114,474    412,784   508,273
                 Zinkgruvan        328,249    428,848  1,629,133 1,814,166
                 Galmoy             13,735     31,759    155,633   186,673

                 ---------------------------------------------------------
                 Total             456,625    575,081  2,197,550 2,509,112

--------------------------------------------------------------------------
(i) 100% of the sold metal at Neves-Corvo and Galmoy is included for 2005
    and 2006. This does not, however, represent Lundin Mining's actual
    ownership during these periods. EuroZinc Mining (owner of Neves-Corvo)
    completed a merger with Lundin Mining in October 2006 and ARCON
    (owner of Galmoy) was aquired by Lundin Mining in April 2005.


Selected quarterly information

Three
 months     Dec-06  Sep-06  Jun-06  Mar-06  Dec-05  Sep-05  Jun-05  Mar-05
 ended                                                                 (ii)
--------------------------------------------------------------------------
Sales US
 ($'000)   236,072  98,941 112,918  91,798  63,820  48,683  43,537  36,033

Net income
 (US$'000)  63,590  30,737  37,161  21,461  14,221   9,637   3,170   2,935

Net income
 per share,
 basic
 (US$) (i)    0.28    0.25    0.30    0.18    0.12    0.08    0.03    0.03

Net income
 per share,
 diluted
 (US$) (i)    0.27    0.25    0.30    0.17    0.12    0.08    0.03    0.03

(i)  The net income per share (basic and diluted) is determined separately
     for each quarter. Consequently, the sum of the quarterly amounts may
     differ from the year to date amount disclosed in the unaudited
     interim consolidated financial statements as a result of using
     different weighted average numbers of shares outstanding. All figures
     related to shares and per share data are calculated as if the
     three-for-one stock split effective February 8, 2007 occurred at the
     beginning of the first period presented.

(ii) Restated for the change in the reporting currency of the Company.

Results of Operations

Sales

The increase in total sales for the fourth quarter of 2006, as compared with the fourth quarter of 2005, was due primarily to the merger of Eurozinc Mining and Lundin Mining. The merger was completed on October 31, 2006 and EuroZinc Mining was consolidated as of November 1, 2006. Significantly higher metal prices also positively impacted sales throughout 2006 as compared with 2005.

Cost of Sales

The overall increase in cost of sales was due primarily to increased sales resulting from the merger with EuroZinc Mining as of November 1, 2006. The cost of sales at Galmoy increased by approximately $1.9 million, during the fourth quarter of 2006 as compared with the third quarter of 2006, and was a result of greater tonnes of ore production, provisions for reduction of staff and the impact of the new labour agreement. The cost of sales at Zinkgruvan during the fourth quarter, compared with the third quarter, were essentially the same. The increased production at Zinkgruvan during the quarter was offset by a temporary build up of concentrate inventory. Due to accounting rules, the inventory at Neves-Corvo was valued at fair value as of October 31, 2006 and as a result, a non-recurring item of $38.6 million has been recorded as cost of sales in November and December 2006.

Selling and General and Administrative costs

The Selling and General and Administrative costs increased during the fourth quarter of 2006, as compared to the third quarter 2006 and fourth quarter 2005. This increase was primarily due to the merger between EuroZinc Mining and Lundin Mining. The Company's head office is in Vancouver, Canada and an operational head office is in Stockholm, Sweden.

General Exploration

Exploration costs increased by approximately $2.8 million during the fourth quarter 2006, as compared with the third quarter 2006 and was due to the adding of EuroZinc Mining's costs and higher activity.

Results on Derivative Contracts

All the derivative contracts held by the Company are accounted for on a mark-to-market basis and the changes in fair value of the contracts are recognized in the statements of operations. Due to the decreased price of copper during the fourth quarter 2006 an accounting gain of $15.3 million was recorded in the quarter. The net result for the metal hedges during 2006 was a gain of $0.4 million.

Net Income

The increase in net income for the fourth quarter of 2006, as compared with the fourth quarter of 2005, was due to the inclusion of EuroZinc Mining and significantly higher metal prices.

Neves-Corvo Mine

                              Three months ended   Twelve months ended
                                Dec 31,   Dec 31,    Dec 31,    Dec 31,
(100% OF PRODUCTION)              2006      2005       2006       2005
----------------------------------------------------------------------
Ore milled (tonnes)            545,535   508,059  2,094,527  2,056,081
----------------------------------------------------------------------
Grades per tonne

Copper (%)                         4.5       5.0        4.6        5.0
Zinc (%)                           8.9         -        8.4          -
----------------------------------------------------------------------
Recoveries

Copper (%)                          87        88         88         88
Zinc (%)                            70         -         60          -
----------------------------------------------------------------------
Production (metal contained)

Copper (tonnes)                 18,625    22,309     78,576     89,483
Zinc (tonnes)                    4,486         -      7,505         -
Silver (oz)                    155,895   184,503    645,521    764,828
Sales                       $  130,897 $  97,542  $ 509,697 $  314,934

Copper Cash Production Cost
(US$/payable pound of
 copper)(i)                       0.69      0.73(ii)   0.78       0.75(ii)
----------------------------------------------------------------------
(i)  Copper Cash Production Cost is the sum of direct costs, indirect cash
     costs and by-product credits.

(ii) From EuroZinc Annual Report 2005.

Ownership

Lundin Mining and EuroZinc Mining (owner of the Neves-Corvo mine), completed a merger as of October 31, 2006. EuroZinc was consolidated into the financial statements of Lundin Mining effective November 1, 2006.

In order to provide comparable data, production figures and financial data are presented in the table above for all periods, including those periods that ended prior to the date the Company acquired the Neves-Corvo mine.

Production

A total of 545,535 tonnes of ore were milled in the fourth quarter of 2006, which equates to a 7% increase in tonnage as compared with the comparable period in 2005. Ore hoisted increased by 13% compared with the fourth quarter of 2005. The increased output was directly attributable to improved performance in mine development and production preparation work, and to the addition of zinc ore production in 2006. Copper production for the quarter was 17% below the comparable period in 2005 due to a planned drop in the head grade. The cutoff grade for mining operations was reduced with the higher copper price to ensure maximum exploitation of the resources and to extend the mine life. The head grade for the fourth quarter of 2006 was 4.5% copper per tonne as compared with 5.0% copper per tonne in the fourth quarter of 2005. The concentrate grade was consistent, quarter over quarter, at 24.6% copper per tonne. The copper recovery was 87% for the fourth quarter of 2006 as compared with 88% in the comparable period in 2005.

The cash production costs in the fourth quarter of 2006 decreased by $0.04/pound of payable copper as compared with the same period in 2005. The decrease in cash costs was primarily due to the by-product credits from the zinc production at the mine. This reduction in cash costs is expected to increase with the improved performance of the zinc plant and the increasing output of product.

Zinc production at the Neves-Corvo mine began in July of 2006 slightly earlier than planned and the zinc plant reached consistent performance at designed recovery and concentrate grade levels for the month of December.

The physical analysis work on the paste tailings deposition program was completed and the final reports are to be submitted to the government authorities in March 2007. This method would ensure tailings storage capacity beyond the end of mine life, which is currently estimated to be 2022.

Drilling crews completed approximately 13,600 metres of a definition-drilling program on the Western Edge of the Neves deposit and the Lombador deposit. The drill results led to the initiation of the engineering study with the view to significantly increasing the zinc output at the mine.

The company initiated two value enhancement campaigns aimed at improving labor productivity and optimizing capital productivity. EuroZinc's subsidiary Somincor, owner of Neves-Corvo, was elected "Best Company of the Year" by the Diario de Noticias national daily newspaper in Portugal. This award system recognizes operational excellence on the basis of an evaluation consisting of four quantitative aspects and five performance indicators.

Zinkgruvan Mine

                                  Three months ended   Twelve months ended
                                    Dec 31,   Dec 31,    Dec 31,    Dec 31,
(100% OF PRODUCTION)                  2006      2005       2006       2005
--------------------------------------------------------------------------
Ore milled (tonnes)                225,367   200,149    787,003    803,883
--------------------------------------------------------------------------
Grades per tonne

Zinc (%)                               9.3       9.0       10.3        9.4
Lead (%)                               4.3       4.8        4.6        5.1
Silver (g/t)                            88       100         93         95
--------------------------------------------------------------------------
Recoveries


Zinc (%)                                94        92         94         93
Lead (%)                                90        88         88         89
Silver (%)                              75        76         75         76
--------------------------------------------------------------------------
Production (metal contained)

Zinc (tonnes)                       19,750    16,549     75,909     69,981
Lead (tonnes)                        8,653     8,496     31,850     36,674
Silver (oz)                        475,751   486,042  1,760,907  1,866,061
Sales                           $   61,262 $  23,459 $  197,015 $   85,683

Zinc Cash Production Cost
(US$/payable pound of zinc)(i)        0.63      0.33       0.54       0.27
--------------------------------------------------------------------------
(i) Zinc Cash Production Cost is the sum of direct costs, indirect cash
    costs and by-product credits.

Production

Throughput in the mill for the fourth quarter of 2006 exceeded the fourth quarter of 2005 by 25,218 tonnes or 12.6%. Production performance in the mine during the quarter was at a higher level than the fourth quarter of 2005 with a 23% increase in ore hoisted.

The lower tonnes of ore milled in 2006, as compared with 2005, has been offset by higher zinc grades and recoveries and, as a result, the total production of zinc metal contained in concentrate for 2006 was 5,928 tonnes greater than 2005. The total production of lead contained in concentrate in 2006, was 4,824 tonnes less compared with 2005 and was primarily due to lower grade.

Development crews were employed during the final quarter of 2006 in preparation for the planned production increase for 2007.

The production cash cost for the fourth quarter of 2006 increased by $0.08 per pound of payable zinc as compared with the third quarter of 2006 and increased by $0.30 per pound of payable zinc as compared with the fourth quarter of 2005. The increase in the cash cost was due mainly to increased smelter price participation charges that were due to increased prices for zinc.

As a result of the higher metal prices, sales increased by 161% during the fourth quarter of 2006 compared with the fourth quarter of 2005 and 130% for the year 2006 as compared with 2005.

Storliden Mine

                                  Three months ended   Twelve months ended
                                    Dec 31,   Dec 31,    Dec 31,    Dec 31,
(100% OF PRODUCTION)                  2006      2005       2006       2005
--------------------------------------------------------------------------
Ore milled (tonnes)                 92,541    79,232    362,316    319,411
--------------------------------------------------------------------------
Grades per tonne

Copper (%)                             2.5       3.9        3.2        3.7
Zinc (%)                               6.8       9.9        8.5       10.9
--------------------------------------------------------------------------
Recoveries

Copper (%)                              92        93         91         92
Zinc (%)                                91        93         91         93
--------------------------------------------------------------------------
Production (metal contained)

Copper (tonnes)                      2,153     2,835     10,642     10,839
Zinc (tonnes)                        5,728     7,259     27,824     32,024
Sales                           $   27,301 $  18,330 $  114,323 $   58,959

Zinc Cash Production Cost
(US$/payable pound)(i)                0.08      less       less       less
                                              than 0     than 0     than 0
--------------------------------------------------------------------------
(i) Zinc Cash Production Cost is the sum of direct costs, indirect cash
    costs and by-product credits.

Ownership

As of December 31, 2004 Lundin Mining held 74% of the shares of North Atlantic Natural Resources ("NAN"), which is the owner of the Storliden Mine. During the first quarter of 2005 the Company acquired an additional 24% of the shares of NAN and initiated corporate procedures for the compulsory purchase of the remaining shares in NAN. As of June 30, 2006 Lundin Mining controlled 100% of the shares of NAN.

In order to provide comparable data, production figures are presented at the mine level for all periods, including those that ended prior to the date the Company acquired a 100% interest in the mine.

Production

Tonnes of ore milled during the fourth quarter of 2006 was 16.8% greater than in the fourth quarter of 2005. Tonnes of ore milled in 2006, was 362,316 tonnes and was well above the 319,411 tonnes of ore milled in 2005.

Zinc and copper mill head grades, during the fourth quarter of 2006, were lower than for the fourth quarter of 2005 as management elected to lower the cut-off grades to extend the life of the mine as a result of the higher metal prices. Grades for zinc and copper for the remaining life of mine production are expected to be at this lower level.

The zinc cash costs for Storliden during the fourth quarter of 2006 continued to be low due to the by-product credits from copper.

The closure of the mine is currently scheduled for the latter part of the third quarter 2007. Total costs for the closure of the operations are expected to be less than $400,000. The obligation has been provided for.

Galmoy Mine

                                  Three months ended   Twelve months ended
                                    Dec 31,   Dec 31,    Dec 31,    Dec 31,
(100% OF PRODUCTION)                  2006      2005       2006       2005
--------------------------------------------------------------------------
Ore milled (tonnes)                160,030   169,727    616,536    644,058
--------------------------------------------------------------------------
Grades per tonne

Zinc (%)                              10.3      14.8       11.8       13.7
Lead (%)                               2.5       3.7        3.2        4.0
--------------------------------------------------------------------------
Recoveries

Zinc (%)                                82        84         83         84
Lead (%)                                69        72         67         68
--------------------------------------------------------------------------
Production (metal contained)

Zinc (tonnes)                       13,473    21,211     60,055     74,321
Lead (tonnes)                        2,798     4,554     13,256     17,284
Sales                           $   37,264 $  22,321 $  119,223 $   68,289

Zinc Cash Production Cost
(US$/payable pound)(i)                1.24      0.47       0.90       0.46
--------------------------------------------------------------------------
(i) Zinc Cash Production Cost is the sum of direct costs, indirect cash
    costs and by-product credits.

Ownership

Lundin Mining and ARCON, the previous owner of the Galmoy mine, completed a merger during the second quarter of 2005 and ARCON was consolidated into the financial statements of Lundin Mining effective May 1, 2005.

In order to provide comparable data, production figures and sales are presented at the mine level for all periods, including those that ended prior to the Company acquiring the mine.

Production

Tonnes of ore milled during the fourth quarter of 2006, were 9,697 tonnes less than milled ore during the fourth quarter of 2005 primarily due to a lack of backfill resulting from the low mechanical availability of the backfill plant. The mechanical issues with the backfill plant were rectified in the quarter and the plant was returned to normal operations. Management also lowered the cutoff grade for mining, as a result of the higher prices and ore outside the average grade of the deposit was mined during the last quarter of 2006 to extend the economic mine life. Ore mined during the fourth quarter of 2005 was from areas of higher than the average grade of the deposit and thus distorted the quarterly comparison.

Zinc recovery in the plant, at 82%, was 2 percentage points below the comparable period in 2005. This drop in recovery was expected due to the mining program.

Froth washing of the zinc concentrate has been tested with positive results and produced a lower magnesium oxide (MgO) content in the concentrate. Other modifications to the zinc circuit will be tested during the first quarter of 2007.

Lead recovery in the plant was 69% during the quarter as compared to 72% for the same quarter in 2005. The lower recovery is attributable to the processing of lower than mine reserve grade ore; nonetheless the recovery was slightly above expectation. The expansion to the lead circuit was completed during the quarter and the quality/recovery improvements resulting from the circuit changes will be recognized in the first quarter of 2007.

The cash production costs at Galmoy, for the fourth quarter of 2006, increased to $1.24 per pound and was primarily due to the lower metal production and the increased smelter treatment charges. The increased smelter treatment charges were due to the price participation element of the smelter treatment charges and the higher zinc prices.

Project Highlights, Fourth Quarter 2006

Ozernoe

During the fourth quarter of 2006, the Company completed the Ozernoe transaction with IFC Metropol/East Siberian Metals and commenced managing the project. Key personnel were hired and put in place at the site and a Project Committee with project partners was also established during the quarter. Management solicited and received bids from engineering firms for the bankable feasibility study, which is planned to commence during the second quarter 2007. The final purchase price is subject to an adjustment based on recoverable zinc metal from the JORC Code resources confirmed in the bankable feasibility study.

Resource verification and ore definition drill program was completed in the fourth quarter of 2006 and the results broadly confirmed the Soviet-age resource data with no evidence of errors. Deviations from the historical results have been adequately explained by geological variability of the deposit. Final design of an Infill Drill Program of Ozernoe was completed in the fourth quarter and has begun.

At full production the plant in Ozernoe is planned according to the pre-feasibility study, to annually produce 300,000 - 350,000 tonnes of contained zinc and significant volumes of lead.

Aljustrel

During the fourth quarter of 2006, the definition drilling on the Moinho deposit was completed. The drill results have allowed for an upgrading of indicated resources to the measured category, providing a greater level of confidence for detailed production design. Driving of the access ramps continued during the quarter with satisfactory advance being made and preparations were made for the drilling of the slick and fuel lines into the mine. Additional mine development work was conducted in the Moinho zone and for conveyor gallery service accesses. Work was also initiated on the conveying systems and the production hoisting system. The development ramp to the Feitais deposit started in September advanced 379 metres in the fourth quarter.

In the plant, redundant equipment and infrastructure was removed and/or replaced and the new surface crushing plant and grinding mills were purchased. Work commenced on surface with the preparation of the area for the new 60kV substation. General office and staff accommodation, as well as camp areas for the workers, were well underway and general progress made was on schedule.

The project is on schedule for a startup in September 2007 and is planned to reach full production in September 2008. The mine will produce, on an annual basis, 80,000 tonnes of contained zinc, 17,000 tonnes of contained lead and 1.25 million ounces of silver.

Exploration Highlights, Fourth Quarter 2006

Sweden

Norrliden and Copperstone

Drilling of geophysical-geological targets in the Copperstone area resulted in the discovery of significant new copper mineralized alteration zones. These zones are in felsic volcanics that are interpreted as being proximal to feeder centres where massive sulphide accumulations, such as Storliden, are known to form. Unusually warm winter conditions and a lack of drill rigs delayed the drill-testing of the most prospective new targets, Lill Sandberget and Eliasro, where copper-zinc-bearing exhalative and feeder-related sulphide mineralization was intersected as previously reported.

A mining permit for the Norrliden deposit was obtained during the quarter and an internal feasibility study is underway. Results of the review are expected before the end of the second quarter 2007.

Bergslagen

Encouraging mineralization was intersected at the Bergslagen regional greenfields target of Lilla Krigstjarn in southern Sweden, north of the Zinkgruvan mine. A drill hole intersected 37 metres of low grade mineralization with the best interval grading 0.1% copper per tonne, 0.75% zinc per tonne, 1.2% lead per tonne and 15 ppm of silver per tonne over 8.7 metres. A Zinkgruvan-type Zn-Pb-Ag deposit is the target.

Ireland

Near-mine exploration Galmoy

A total of 5,679 metres in 37 holes were drilled in the Galmoy area in the fourth quarter of 2006. Of these, 35 holes totaling 4,625 metres, were drilled in the vicinity of the mine. The remaining 2 holes, totaling 1,054 metres, were drilled at the Rapla greenfields target located 5 km to the northeast.

Encouraging minor zinc-lead sulphide mineralization was intersected at the Galmoy Mine ore horizon in nine of the holes drilled in the area west of the K ore body and in two of the holes drilled in the area east of the CW ore body. Pyrite mineralization, which is commonly associated with the zinc-lead mineralization, was found within the basal host formation in eight of the holes drilled in the area north of the tailings impoundment area with minor zinc-lead mineralization intersected in one of these holes.

Greenfield exploration Galmoy

Drilling planned for the Keel project was delayed due to the lack of qualified drillers and drill rigs.

Portugal

During the fourth quarter of 2006, a total of 7,307 metres of exploration drilling was carried out in Portugal. Efforts focused on delineation of the Lombador deposit at Neves-Corvo. Drill result highlights include intercepts of 4 metres (1,079 to 1,083 metres in downhole depth) grading 2.62% copper per tonne and 45.7 metres (1,076 to 1,212 metres in downhole depth) grading 0.43% copper per tonne, 1.51% lead per tonne and 4.44% zinc per tonne.

At the Chanca prospect located on the Mertola concession near the Spanish border, two holes were successful in intersecting wide zones of intense pyrite and chalcopyrite stockwork veining. This drilling confirmed the presence of a very large and intense stockwork zone cross-cutting a thick sequence of volcanics.

Spain

Final preparation and permitting work was being carried out in the fourth quarter of 2006 at the Toral zinc-lead-silver project in northwest Spain. It is anticipated that the final demarcation of the license, awarded to Lundin Mining in the second quarter of 2006, will be completed in February 2007 with the start-up of exploration drilling shortly thereafter.

Metal prices and smelter treatment and refining charges

Compared with the fourth quarter of 2005, prices for zinc, copper and lead increased considerably. A reduction in inventory levels of zinc on the London Metal Exchange ("LME"), seen during 2005 and during the first three quarters of 2006, continued in the last quarter of 2006. As of February 21, 2007 the LME zinc inventory is reported to be 97,000 tonnes, or approximately three days of global consumption, compared to 393,550 tonnes at the end of 2005 or approximately two weeks of global consumption. Currently the price of zinc has decreased since the beginning of 2007 and the general opinion is that the decrease is due to a re-weighting of index funds and profit taking. Zinc is currently trading at about $3,305/tonne ($1.50/pound). The price of copper has exhibited the same pattern as zinc and increased significantly compared to 2005. However, over 2006 the LME copper inventory has increased due to slower demand. The LME inventory for copper at the end of the fourth quarter 2006 was 190,575 tonnes compared with 92,225 tonnes at the end of 2005. The price of copper as of February 21, 2007 is trading at approximately $5,680/tonne ($2.57/pound). The price of lead remained strong over the fourth quarter of 2006 and ended the quarter considerably higher than at the end of 2005. The LME inventory of lead closed at 41,050 tonnes at the end of the fourth quarter 2006 compared with 43,600 tonnes at the end of 2005. The price of lead also trended down since the beginning of 2007 and is currently trading at $1,870/tonne ($0.85/pound).

                         Fourth   Fourth             Year    Year
                        quarter  quarter  Change     ended   ended  Change
(Average LME / LBM)        2006     2005       %      2006    2005       %
--------------------------------------------------------------------------

Zinc        US$/pound      1.91     0.74     156      1.49    0.63     137
            US$/tonne     4,203    1,639     156     3,275   1,381     137

Lead        US$/pound      0.74     0.48      55      0.59    0.44      32
            US$/tonne     1,627    1,048      55     1,290     976      32

Copper      US$/pound      3.21     1.95      64      3.05    1.67      83
            US$/tonne     7,068    4,300      64     6,722   3,678      83

Silver      US$/oz        12.62     8.06      57     11.57    7.31      58
--------------------------------------------------------------------------

The spot treatment charges ("TC") for zinc concentrates gradually increased over the fourth quarter of 2006, but remain considerably lower than the annual TC agreed for 2006. However an improvement of the TC, which is in favour of the miners is expected. The Company expects an improvement in favour of the miners in the price sharing mechanism as compared to 2006.

The TC annual negotiations for copper concentrates are ongoing and the terms are improving for the miners. The combined annual treatment and refining charges for copper in 2006 were US$0.24/pound and for 2007 are expected to be approximately $0.155/pound. Furthermore, it is expected that the price participation mechanism will also improve in favour of the miners.

No change is expected in the TC for lead concentrate between 2006 and 2007.

Outlook

The outlook for metal prices for 2007 is mixed. The low LME inventory for zinc and lead, and the growth in demand for these metals, particularly from Asia, is expected to continue and the Company anticipates the zinc and lead prices to remain at high levels during 2007. The demand for copper has slowed and the LME inventory has increased. The Company expects that the fundamentals for copper will not be as strong as the fundamentals for zinc going forward in 2007. Nonetheless, the Company expects the price of copper to stay at historically high levels throughout the year.

The Company expects its operational performances in all of its mines to improve during 2007 compared with 2006. As well, overall production of contained zinc metal will increase with the addition of the Aljustrel zinc production in September and the increased output from Neves-Corvo and Zinkgruvan.

It should be noted that the price of silver for all silver production from Zinkgruvan going forward has been fixed by the 2004 silver sale transaction with Silver Wheaton whereby Zinkgruvan receives $3.90 per ounce or the market price if the market price of silver is less than $3.90 per ounce. The up-front cash payment received from Silver Wheaton in December 2004 has been deferred on the balance sheet and is realized on the statement of operations when the actual deliveries of silver occur.

Currencies

                      Fourth    Fourth               Year     Year
                     quarter   quarter  Change      ended    ended  Change
(Average)               2006      2005       %       2006     2005       %

--------------------------------------------------------------------------
SEK per US$             7.08      7.97     -11       7.38     7.47      -1

SEK per C$              6.22      6.79     - 8       6.50     6.17      +5

C$ per US$              1.14      1.17     - 3       1.13     1.21      -6

US$ per Euro            1.29      1.19     + 8       1.26     1.25      +1

Liquidity and capital resources

Working capital, including cash and short term financial debt

As at December 31, 2006, the Company had working capital of $302.3 million compared to working capital of $167.6 million as at September 30, 2006 and $63.8 million as at December 31, 2005. Cash was $402.2 million as at December 31, 2006 compared to $176.5 million as at September 30, 2006 and $74.4 million as at December 31, 2005. The increase in the working capital was primarily due to the working capital acquired from EuroZinc and the positive cash flow generated from operations. Increased short-term tax liabilities due to taxable income generated has partially offset the increase in working capital.

Accounts receivable

Accounts receivable was $96.4 million as at December 31, 2006 compared to $40.3 million as at September 30, 2006 and $20.2 million as at December 31, 2005. The increase over September 30, 2006 was due to the inclusion of accounts receivable from the Portuguese operations of $56.9 million. Higher metal prices also impacted the accounts receivables compared to December 31, 2005.

Current liabilities

Current liabilities increased to $224.1 million as at December 31, 2006 compared to $61.3 million at September 30, 2006 and $41.8 million at December 31, 2005. This increase was due primarily to $147.5 million of current liabilities assumed in the EuroZinc acquisition. Included in current liabilities is an income tax liability of $80.5 million, which increased by $67.1 million over the same period in 2005. This increase was due primarily to a $35.0 million income tax liability from the EuroZinc acquisition and higher taxable income for 2006 at the Neves-Corvo, Zinkgruvan and Storliden mines. The Company expects to pay $80.5 million of taxes during 2007 for income generated in 2006.

Long-term liabilities and provisions

Long-term liabilities and provisions consist of a long-term loan and capital lease obligations assumed in the EuroZinc acquisition, deferred revenue, asset retirement obligation and future income taxes. The future income tax liability increased to $250.7 million primarily as a result of the acquisitions of EuroZinc and the Ozernoe project. The asset retirement obligations have increased due to the inclusion of the Neves-Corvo mine.

Hedging of metal prices and currencies

Lundin Mining had entered into the following metal hedging contracts as at December 31, 2006:

--------------------------------------------------------------------------
Lead                             2007    2008    2009  2010/2011     Total
--------------------------------------------------------------------------
Zinkgruvan
 and Galmoy   Volume (tonnes)  14,400       -       -          -    14,400

Bought put    US$/pound          0.49                                 0.49
options       US$/tonne         1,082                                1,082

Sold call     US$/pound          0.57                                 0.57
options       US$/tonne         1,250                                1,250
--------------------------------------------------------------------------

--------------------------------------------------------------------------
Lead                             2007    2008     2009  2010/2111    Total
Aljustrel
--------------------------------------------------------------------------
Forward sales Volume (tonnes)   2,250   4,500         -         -    6,750

              US$/pound          0.54    0.54                         0.54
              US$/tonne         1,198   1,198                        1,198

--------------------------------------------------------------------------
Copper                           2007    2008     2009  2010/2111    Total
Neves Corvo
--------------------------------------------------------------------------
Bought put
options       Volume (tonnes)  52,704       -        -          -   52,704

              US$/pound          0.85                                 0.85
              US$/tonne         1,869                                1,869

Sold call
options       Volume (tonnes)   9,900       -        -          -    9,900

              US$/pound          4.00                                 4.00
              US$/tonne         8,818                                8,818

Forward sales Volume (tonnes)   8,400       -        -          -    8,400
              US$/pound          3.00                                 3.00
              US$/tonne         6,614                                6,614
--------------------------------------------------------------------------

--------------------------------------------------------------------------
Zinc                             2007    2008     2009  2010/2111    Total
Aljustrel
--------------------------------------------------------------------------
Forward sales Volume (tonnes)   1,200   2,400        -          -    3,600
              US$/pound          1.22    1.22                         1.22
              US$/tonne         2,701   2,701                        2,701
--------------------------------------------------------------------------

--------------------------------------------------------------------------
Silver                           2007    2008     2009  2010/2111    Total
Aljustrel
--------------------------------------------------------------------------
Forward sales Volume (ounces)  39,852  95,460  117,072    330,720  583,104
              $/oz              11.60   11.60    11.60      11.60    11.60
--------------------------------------------------------------------------

--------------------------------------------------------------------------
US Currency                      2007    2008     2009  2010/2111    Total
Neves Corvo
--------------------------------------------------------------------------
Forward sales Volume (000's)  192,000       -        -          -  192,000
              US$/Euro         1.2907                               1.2907
--------------------------------------------------------------------------

--------------------------------------------------------------------------
US Currency                      2007    2008     2009  2010/2111    Total
Neves Corvo
--------------------------------------------------------------------------
Structured    Volume (000's)
 contracts    Min              85,000       -        -          -   85,000
--------------------------------------------------------------------------
              Max             135,500                              135,500
              US$/Euro
              Min strike         1.18                                 1.18
              Max strike         1.30                                 1.30
--------------------------------------------------------------------------

The mark-to-market valuation of the outstanding contracts resulted in an unrealized loss for accounting purposes of $2.9 million as of December 31, 2006.

Major contractual obligations

The Company has agreed to deliver all future production of silver from Zinkgruvan to Silver Wheaton Corporation, with a delivery guarantee of a minimum of 40 million ounces of silver over a 25-year period. If at the end of the 25-year period, the Company has not delivered the minimum of 40 million ounces, it has agreed to pay to Silver Wheaton $1.00 per ounce of silver not delivered.

The Storliden mine was developed by, and is being operated pursuant to an agreement with, Boliden Mineral AB ("Boliden"). The Company's subsidiary, North Atlantic Natural Resources ("NAN"), is the operator of the mine and Boliden is the main contractor of the mine. Ore is processed at the Boliden Area Operations mill. After all costs of the operation are paid, the remaining cash flow is shared in the ratio two-thirds/one-third to NAN and Boliden respectively. The fee charged by Boliden for mining at Storliden is cost plus 15%. For one-fifth of the Storliden deposit, NAN pays a 1.5% annual royalty on the Net Smelter Return to Cogema SA.

During 2006, a major Swedish bank issued a bank guarantee of SEK 80 million (approx. $10.9 million) related to the future reclamation costs at Zinkgruvan. The beneficiary of the guarantee are the Swedish authorities. Lundin Mining agreed to indemnify the Swedish bank for the corresponding amount of the guarantee.

Related party transactions

The Company has transactions with related parties that are disclosed in Note 5 of the interim consolidated financial statements.

Outstanding share data

As at February 21, 2007, the Company had 285,493,989 common shares outstanding and 3,753,201 share options outstanding under its stock-based incentive plans.

Risks

The Company's properties/operations are subject to certain risks including, but not limited to, government regulations relating to mining, metal prices and currency rate fluctuations, competition, receipts of permits and approval from government authorities, operating hazards and other risks inherent to the exploration, development and operation of a mine. The Company's risk factors are more fully described in the Company's Annual Information Form.

Cautionary note regarding forward-looking statements

Certain statements contained in the foregoing Management's Discussion and Analysis and elsewhere constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made, and readers are advised to consider such forward-looking statements in light of the risks set out above.

Non-GAAP Performance Measures

Zinc and copper Cash Production Cost (US$/pound) are key performance measure that management uses to monitor performance. Management uses these statistics to assess how well the Company's producing mines are performing compared to plan and to assess overall efficiency and effectiveness of the mining operations. These performance measures have no meaning within Canadian Generally Accepted Accounting Principles ("GAAP") and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with Canadian GAAP.

The following table presents the calculation of Zinc and Copper Cash Production Costs (US$/pound) for each of the Company's operations for the periods indicated.

Reconciliation of unit cash costs of zinc and copper to consolidated statements of operations

Thousands of US dollars, except zinc and copper cash production cost
per pound

                        Three Months Ended             Twelve Months Ended
                              Dec 31, 2006                    Dec 31, 2006

            Zinkgruvan  Storliden   Galmoy  Zinkgruvan  Storliden   Galmoy
--------------------------------------------------------------------------
Operating
 expenses,
 excluding
 depreciation    8,378     13,859   15,333      39,132     53,153   54,376
Treatment
 charges
 for zinc       24,421      6,264   18,973      75,241     23,206   58,356
By-product
 credits        (9,907)   (12,149)  (2,523)    (36,578)   (59,455) (11,545)
Other items
 effecting
 cash
 production
 costs             421     (7,087)     192        (972)   (30,930)    (348)
--------------------------------------------------------------------------
Total           23,313        887   31,975      76,823    (14,026) 100,839

Zinc metal
 payable
 (tonnes)       16,791      4,855   11,715      64,522     23,639   51,061
Zinc metal
 payable
 (000's
 pounds)        37,008     10,700   25,819     142,207     52,100  112,538
--------------------------------------------------------------------------
Zinc cash
 production
 cost per
 pound (i)        0.63       0.08     1.24        0.54      (0.27)    0.90
--------------------------------------------------------------------------

(i) of which
 treatment
 charges
 for zinc
 comprise         0.66       0.59     0.73        0.53       0.45     0.52


                        Three Months Ended             Twelve Months Ended
                              Dec 31, 2005                    Dec 31, 2005

            Zinkgruvan  Storliden   Galmoy  Zinkgruvan  Storliden   Galmoy
--------------------------------------------------------------------------
Operating
 expenses,
 excluding
 depreciation    8,844      9,203   12,173      35,794     31,930   30,897
Operating
 expenses
 prior to
 merger
 with Lundin
 Mining                                                             14,395
Treatment
 charges
 for zinc        8,159      3,921   10,610      27,215     13,629   30,263
Bi-product
 credits        (7,822)   (10,743)  (2,559)    (33,115)   (33,470

Published Feb. 22, 2007 
 

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