Lundin Gold Inc.: LUNDIN GOLD DRAWS US$40 MILLION UNDER GOLD PREPAY FACILITY AS IT CONTINUES TO ADVANCE FRUTA DEL NORTE

December 6, 2017 (Vancouver, Canada) Lundin Gold Inc. ("Lundin Gold" or the
"Company") (TSX: LUG, Nasdaq Stockholm: LUG) is pleased to announce that is has
drawn an additional US$40 million under the gold prepay credit facility with
the Orion Mine Finance Group and Blackstone Tactical Opportunities.  The funds
will be used to support the ongoing development of the Fruta del Norte gold
project in Ecuador. 

About Lundin Gold

Lundin Gold, headquartered in Vancouver, Canada, is developing its wholly-owned
Fruta del Norte gold project in southeast Ecuador.  Fruta del Norte is one of
the highest-grade and largest gold projects currently under construction.  The
Company's board and management team have extensive expertise in mine
construction and operations, and are dedicated to advancing this project
through to first gold production in 2019. 

The Company operates with transparency and in accordance with international
best practices.  Lundin Gold is committed to delivering value to its
shareholders, while simultaneously providing economic and social benefits to
impacted communities, fostering a healthy and safe workplace and minimizing the
environmental impact.  The Company believes that the value created through the
development of Fruta del Norte will benefit its shareholders, the Government
and the people of Ecuador. 

Additional Information

The information in this release is subject to the disclosure requirements of
Lundin Gold under the EU Market Abuse Regulation and the Swedish Securities
Markets Act. This information was publicly communicated at 3:45 pm Pacific Time
on December 6, 2017. 

For more information, please contact:

Lundin Gold Inc.

Ron F. Hochstein

President and CEO

[phone]

[phone]

Lundin Gold Inc.

Sabina Srubiski

Manager, Investor Relations

[phone]

[e-mail]

www.lundingold.com

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, including the use of
funds drawn under the facility.  Lundin Gold's actual results could differ
materially from those anticipated.  Management has identified the following
risk factors which could have a material impact on the Company or the trading
price of its  shares: the ability to arrange financing and the risk to
shareholders of dilution from future equity financings; risks related to
carrying on business in an emerging market such as possible government
instability and civil turmoil and economic instability; volatility in the price
of gold; the timely receipt of regulatory approvals, permits and licenses;
risks associated with the performance of the Company's contractors; risks
inherent in the development of an underground mine; deficient or vulnerable
title to mining concessions and surface rights; shortages of resources, such as
labour, and the dependence on key personnel; risks associated with the
Company's community relationships; unreliable infrastructure and local
opposition to mining; volatility in the market price of the Company's shares;
uncertainty with the tax regime in Ecuador; measures required to protect
endangered species; difficulty complying with changing government regulations
and policies, including without limitation, compliance with environment, health
and safety regulations, and the cost of compliance or failure to comply with
applicable laws; exploration and development risks; the accuracy of the Mineral
Reserve and Resource estimates for FDN and the Company's reliance on one
project; the Company's lack of operating history in Ecuador; illegal mining;
uncertainty as to reclamation and decommissioning; adverse global economic
conditions; risks associated with the Company's information systems; the
inadequacy of insurance; risks of bribery or corruption; the potential for
litigation; limits of disclosure and internal controls; and the potential
influence of the Company's largest shareholders. 

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 for the financial year ended December 2016, which is available
on SEDAR at www.sedar.com.

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