Dividends

On May 3, 2022, the Company's Board of Directors approved a Dividend Policy. Under the Policy, the Company expects to pay two cash dividends per calendar year, following the release of second quarter and year end results.

Dividends for shares trading on the Toronto Stock Exchange (“TSX”) and OTCQX will be paid in Canadian dollars, based on the prevailing exchange rate at the dividend record date. Dividends for shares trading on Nasdaq Stockholm will be paid in Swedish kronor in accordance with Euroclear principles.

The Company anticipates declaring semi-annual cash dividends of approximately USD$0.20 per share (equivalent to approximately USD$100 million annually based on currently issued and outstanding shares), subject to dividends not exceeding 50% of operating cash flow, net of capital expenditures. This notwithstanding, the declaration and payment of dividends is at the discretion of the Board of Directors and will depend on the Company’s financial results, financial condition, capital requirements, strategic and business development considerations, the need to retain earnings to fund future growth of the business of the Company, the number of outstanding common shares and other factors deemed relevant by the Board.

Canadian Residents

Unless otherwise indicated, common share dividends paid by Lundin Gold will be designated as “eligible dividends” for Canadian income tax purposes. An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend credit.

Canadian beneficial shareholders who received dividends outside of an TFSA, RRSP, RRIF or DPSP should receive a T5 Supplementary slip from their brokerage firm or intermediary.

Canadian registered shareholders will receive a T5 Supplementary slip from Computershare Investor Services Inc.

The deadline for issuance of T5 Supplementary slips is on or before the last day of February following the calendar year to which the information applies.

Please refer questions regarding the T5 slips directly to your brokerage firm or Computershare Investor Services at 1-800-564-6253. If you have any questions regarding the taxation of eligible dividends, please contact your Canadian tax advisor or your local office of the Canada Revenue Agency.

Non-Canadian Resident Shareholders

Common share dividends paid by Lundin Gold will be subject to Canadian withholding tax at the rate of 25%, unless the rate is reduced under the provisions of a tax treaty between Canada and the non-resident shareholder’s jurisdiction of residence, and any other applicable country of residence tax.

All registered non-Canadian resident shareholders must complete and return Form NR301 to Computershare Investor Services Inc. in order to receive the applicable treaty rate. Failure to complete a Form NR301 form will result in Computershare withholding the statutory 25% tax rate on any payments to registered non-Canadian resident shareholders. Registered shareholders resident in the United States will also be required to complete and return a Form W-8 or W-9, as applicable.

Non-Canadian resident shareholders who hold their shares through a broker or a bank, should contact their institution directly to determine whether the withholding tax rate may be reduced pursuant to applicable tax treaties and steps required to qualify to a preferred treaty rate.

If you have any questions regarding the taxation of Canadian dividends in your local jurisdiction, please contact your local tax advisor.


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