FULLTEXT DEL 2 AV 2

Kvartalsrapport Q4 2023

Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements for the year ended December 31, 2023. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter How our audit addressed the key audit matter
Fair value of the stream credit facility and
offtake derivative liability
Refer to note 3 – Summary of material accounting
policies, note 9 – Long-term debt and note 20 –
Financial instruments and risk management to the
consolidated financial statements.
The Company has a stream credit facility and an
offtake derivative liability (together, fair value
financial liabilities), which management measured
as financial liabilities at fair value through profit or
loss. As at December 31, 2023, these fair value
financial liabilities were valued at $276 million and
$29 million, respectively, and management
recorded a combined change in fair values of these
liabilities of $32 million and $3 million during the
year in net income and other comprehensive
income, respectively.
Management used Monte Carlo simulation
valuation models to determine the fair values of
these fair value financial liabilities.
The significant assumptions used in the Monte
Carlo simulation valuation models include: the gold
forward prices, gold price volatility the risk-free rate
of return, risk-adjusted discount rates and the
projected life of mine production schedule. In
addition, in valuing the stream credit facility, the
silver forward prices, silver price volatility, and the
gold/silver price correlation were also used as
significant assumptions by management. The
Monte Carlo simulation valuation models were
prepared by an independent valuation specialist
and the projected life of mine production schedule
Our approach to addressing the matter included the
following procedures, among others:
 With the assistance of professionals with
specialized skill and knowledge in the field of
financial instrument valuation, developed an
independent point estimate of the fair values of
the stream credit facility and offtake derivative
liability, which included:
– Independently developing expectations
related to the gold forward prices, gold
price volatility, the risk-free rate of return,
the risk-adjusted discount rates, the silver
forward prices, silver price volatility and the
gold/silver price correlation based on
external market and industry data.
– Comparing the independent point
estimates to management’s estimates to
evaluate the reasonableness of
management’s estimates.
 Developing the independent point estimates
also involved assessing the reasonableness of
the projected life of mine production schedule,
which involved:
– Comparing gold and silver production
volumes used to determine repayments of
the stream credit facility up to
December 31, 2023 to actual production
volumes.
– Comparing the future production volumes
included in the projected life of mine
production schedule on a total basis to the
available quantities of recoverable reserves

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was based on information compiled and reviewed
by qualified persons (together, management’s
experts).
We considered this a key audit matter due to (i) the
significant judgments made by management,
including the use of management’s experts, when
developing the key assumptions used in the
valuation of the fair value financial liabilities; (ii) a
high degree of auditor judgment, subjectivity and
effort in performing procedures related to the
significant assumptions; and (iii) the audit effort
involved the use of professionals with specialized
skill and knowledge.
and resources. The work of qualified
persons was used in performing the
procedures to evaluate the reasonableness
of the available quantity of recoverable
reserves and resources included in the
projected life of mine production schedule.
As a basis for using this work, the
competence, capabilities and objectivity of
the qualified persons were evaluated, the
work performed was understood and the
appropriateness of the work as audit
evidence was evaluated. The procedures
performed also included evaluation of the
methods and assumptions used by the
qualified persons, tests of the data used by
the qualified persons and an evaluation of
their findings.
 Tested the disclosures, including the sensitivity
analysis, made in the consolidated financial
statements with regards to the estimate of the
fair value financial liabilities.
Other information
Management is responsible for the other information. The other information comprises the Management’s
Discussion and Analysis.
Our opinion on the consolidated financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is materially
inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of management and those charged with governance for the
consolidated financial statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with IFRS Accounting Standards, and for such internal control as management

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determines is necessary to enable the preparation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to liquidate
the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting
process.
Auditor’s responsibilities for the audit of theconsolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:
 Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report
to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Company to
cease to continue as a going concern.

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 Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
 Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group audit. We
remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current period and
are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is Eric Talbot.
/s/PricewaterhouseCoopers LLP
Chartered Professional Accountants
Vancouver, British Columbia
February 22, 2024

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LUNDIN GOLD INC.
Consolidated Statements of Financial Position
(Expressed in thousands of U.S. Dollars)

The accompanying notes are an integral part of these consolidated financial statements.

December 31, December 31,
Note 2023 2022

ASSETS

Current assets
Cash and cash equivalents 9, 18 $ 268,025 $ 363,400
Trade receivables and other current assets 4 163,456 169,134
Inventories 5 89,406 89,787
Advance royalty 13,000 13,000
533,887 635,321
Non-current assets
VAT recoverable 4 51,904 52,244
Advance royalty 3,494 16,494
Property, plant and equipment 6 718,896 781,299
Mineral properties 7 160,028 183,507

$ 1,468,209 $ 1,668,865

LIABILITIES

Current liabilities
Accounts payable and accrued liabilities 8 $ 74,824 $ 71,434
Income taxes payable 17 48,488 21,445
Other current liabilities 12 - 2,264
Current portion of long-term debt 9 63,716 345,374
187,028 440,517

Non-current liabilities
Long-term debt 9 241,931 322,592
Reclamation provisions 10 8,722 7,049
Deferred income tax liabilities 17 74,722 46,626

512,403 816,784

EQUITY
Share capital 11 1,008,932 989,772
Equity-settled share-based payment reserve 12 14,535 13,856
Accumulated other comprehensive income 1,955 2,612
Deficit (69,616) (154,159)
955,806 852,081
$ 1,468,209 $ 1,668,865

Commitments (Note 22)

Approved by the Board of Directors

/s/ Ron F. Hochstein /s/ Ian W. Gibbs
Ron F. Hochstein Ian W. Gibbs

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LUNDIN GOLD INC.
Consolidated Statements of Income and Comprehensive Income
(Expressed in thousands of U.S. Dollars, except share and per share amounts)

The accompanying notes are an integral part of these consolidated financial statements.

Years Ended December 31,
Note 2023 2022

Revenues 13 $ 902,518 $ 815,666

Cost of goods sold
Operating expenses 278,802 268,816
Royalty expenses 51,934 46,458
Depletion and depreciation 136,602 130,638

467,338 445,912

Income from mining operations 435,180 369,754

Other expenses
Corporate administration 14 21,032 19,405
Exploration 23,720 15,450
Finance expense 15 85,269 240,799
Finance income (12,964) (5,088)
Other expense (income) 1,016 (1,769)
Derivative loss (gain) 20(b) 32,069 (76,317)

150,142 192,480

Net income before tax 285,038 177,274

Income tax expense
Current income tax expense 17 76,934 26,717
Deferred income tax expense 17 28,647 76,999
105,581 103,716

Net income for the year $ 179,457 $ 73,558

OTHER COMPREHENSIVE INCOME

Items that may be reclassified to net income
Currency translation adjustment 1,299 (6,436)
Items that will not be reclassified to net income
Derivative gain (loss) related to the Company’s own credit risk 20(b) (3,241) 2,352
Deferred income tax recovery (expense) on accumulated
other comprehensive income

552

(737)
Other 733 582

Comprehensive income for the year $ 178,800 $ 69,319

Income per common share
Basic $ 0.76 $ 0.31
Diluted 0.75 0.31

Weighted-average number of common shares outstanding
Basic 237,026,367 234,815,536
Diluted 239,151,461 236,704,760

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LUNDIN GOLD INC.
Consolidated Statements of Changes in Equity
(Expressed in thousands of U.S. Dollars, except number of common shares)

The accompanying notes are an integral part of these consolidated financial statements.

Equity-settled
Number of share-based
common Share payment Other
Note shares capital reserve reserves Deficit Total

Balance, January 1, 2022 233,361,883 974,740 13,570 6,851 (180,684) 814,477

Exercise of stock options 12 1,355,393 8,263 (2,819) - - 5,444
Vesting of share units 11 41,000 406 (406) - - -
Exercise of anti-dilution rights 11 477,260 3,918 - - - 3,918
Exercise of warrants 11 411,441 2,445 (511) - - 1,934
Stock-based compensation 12 - - 4,022 - - 4,022
Other comprehensive loss - - - (4,239) - (4,239)
Net income for the year - - - - 73,558 73,558
Dividends paid - - - - (47,033) (47,033)

Balance, December 31, 2022 235,646,977 $ 989,772 $ 13,856 $ 2,612 $ (154,159) $ 852,081

Exercise of stock options 12 1,156,552 6,930 (2,394) - - 4,536
Vesting of share units 11 255,679 2,613 (1,406) - - 1,207
Exercise of anti-dilution rights 11 800,840 9,617 - - - 9,617
Stock-based compensation 12 - - 4,479 - - 4,479
Other comprehensive loss - - - (657) - (657)
Net income for the year - - - - 179,457 179,457
Dividends paid - - - - (94,914) (94,914)

Balance, December 31, 2023 237,860,048 $ 1,008,932 $ 14,535 $ 1,955 $ (69,616) $ 955,806

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LUNDIN GOLD INC.
Consolidated Statements of Cash Flows
(Expressed in thousands of U.S. Dollars)

The accompanying notes are an integral part of these consolidated financial statements.

` Years Ended December 31,
Note 2023 2022

OPERATING ACTIVITIES

Net income for the year $ 179,457 $ 73,558
Items not affecting cash:
Depletion and depreciation 136,633 130,675
Stock-based compensation 12 4,468 5,008
Derivative loss (gain) 20(b) 32,069 (76,317)
Other expense (income) 2,080 (940)
Finance expense 72,119 233,660
Deferred income tax expense 28,647 76,999

455,473 442,643
Changes in non-cash working capital items:
Trade receivables and other current assets 9,391 2,630
Inventories 133 (7,253)
Advance royalty 13,000 13,000
Accounts payable and accrued liabilities 2,436 3,439
Income taxes payable 27,043 (33,402)
Other non-current liabilities (1,045) -
Interest received 12,964 5,088

Net cash provided by operating activities 519,395 426,145

FINANCING ACTIVITIES

Repayments of long-term debt 9 (278,030) (131,720)
Interest paid 9 (19,843) (27,875)
Finance charge paid 9 (182,596) (68,767)
Proceeds from exercise of stock options 4,536 5,444
Proceeds from exercise of anti-dilution rights 11 9,617 3,918
Proceeds from exercise of warrants - 1,934
Dividends paid (94,914) (47,033)

Net cash used for financing activities (561,230) (264,099)

INVESTING ACTIVITIES

Acquisition and development of property, plant and equipment 6 (48,235) (54,020)
VAT paid on investing activities (5,248) (6,048)

Net cash used for investing activities (53,483) (60,068)

Effect of foreign exchange rate differences on cash (57) (1,186)

Net increase (decrease) in cash and cash equivalents (93,375) 100,792

Cash and cash equivalents, beginning of year 363,400 262,608

Cash and cash equivalents, end of year $ 268,025 $ 363,400

Supplemental cash information (Note 18)

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LUNDIN GOLD INC.
Notes to the consolidated financial statements as at December 31, 2023
(All dollar amounts are stated in U.S. dollars unless otherwise indicated. Tables are expressed in thousands of U.S.
dollars, except share and per share amounts)

1. Nature of operations

Lundin Gold Inc. together with its subsidiaries (collectively referred to as “Lundin Gold” or the “Company”) is
focused on its Fruta del Norte gold operation and developing its portfolio of mineral concessions in Ecuador.

The common shares of the Company are listed for trading on the Toronto Stock Exchange (the “TSX”) and Nasdaq
Stockholm under the symbol “LUG” and the OTCQX Best Market under the symbol “LUGDF”. The Company was
originally incorporated in British Columbia and continued under the Canada Business Corporations Act in 2002.

The Company’s head office is located at Suite 2000, 885 W. Georgia Street, Vancouver, BC, and it has a corporate
office in Quito, Ecuador.

2. Basis of preparation

These consolidated financial statements , including comparatives, have been prepared using accounting policies
consistent with International Financial Reporting Standards as issued by the International Accounting Standards
Board (“IFRS Accounting Standards ”). The principal accounting policies applied in the preparation of these
consolidated financial statements are set out below and have been consistently applied to all the periods
presented.

These consolidated financial statements were approved for issue by the Board of Directors on February 22, 2024.

The following entities are included in these consolidated financial statements:

Ordinary shares held
Country of December 31, December 31,
incorporation 2023 2022

Aurelian Resources Inc. Canada 100% 100%
Aurelian Resources Corporation Ltd. Canada 100% 100%
Aurelian Exploration Inc. Canada 100% 100%
Aurelian Menor Inc. Canada 100% 100%
Condor Finance Corp. Canada 100% 100%
Aurelian Ecuador S.A. Ecuador 100% 100%
AurelianEcuador Holding S.A. Ecuador 100% 100%
Ecoaurelian Agricola S.A. Ecuador 100% 100%
Aurelianmenor S.A. Ecuador 100% 100%
SurNorte Ventures Pte. Ltd. Singapore 100% 100%
SurNorte Holdings I Pte. Ltd. Singapore 100% 100%
SurNorte Holdings II Pte. Ltd. Singapore 100% 100%
SurNorte S.A. Ecuador 100% 100%

The proportion of the voting rights held directly by the parent company does not differ from the proportion of
ordinary shares held.

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3. Summary of material accounting policies

The Company’s principal accounting policies are outlined below:

(a) Basis of consolidation

These consolidated financial statements incorporate the financial statements of the Company and the entities
controlled by the Company. Control exists when the Company has the power, directly or indirectly, to govern
the financial and operating policies of an entity so as to obtain benefits from its activities. The financial
statements of subsidiaries are included in the consolidated financial statements from the date that control
commences until the date that control ceases. All significant intercompany transactions and balances have
been eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the Company.

(b) Foreign currency translation

Transactions and balances

In preparing the financial statements of the individual entities, transactions in currencies other than the entity’s
functional currency (foreign currencies) are recorded at the rates of exchange prevailing at the dates of the
transactions. At each statement of financial position date, monetary assets and liabilities are translated using
the period end foreign exchange rate. Non-monetary assets and liabilities are translated using the historical
rate on the date of the transaction. All gains and losses on translation of these foreign currency transactions
are included in the statement of income.

Group companies

The functional currency of the significant subsidiary of the Company, Aurelian Ecuador S.A., and certain other
entities is U.S. dollars. Other entities which have a functional currency different from the presentation
currency, including Lundin Gold Inc. whose functional currency is Canadian dollars (“CAD”), are translated
into the presentation currency as follows:

i. Assets and liabilities for each statement of financial position presented are translated at the closing
rate at the date of that statement of financial position.
ii. Income and expenses for each statement of income are translated at average exchange rates
(unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing
on the transaction dates, in which case income and expenses are translated at the rate on the dates
of the transactions).
iii. All resulting exchange differences are recognized in other comprehensive loss as cumulative
translation adjustments.

The preparation of consolidated financial statements requires management to make judgments, estimates
and assumptions that affect the application of policies and reported amounts of assets and liabilities, and
expenses. The estimates and associated assumptions are based on historical experience and various other
factors that are believed to be reasonable under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised if the revision affects only that period
or in the period of the revision and further periods if the review affects both current and future periods.

Significant assumptions about the future and other sources of estimation uncertainty that management has
made at the end of the reporting period that have a significant risk of resulting in a material adjustment to the
carrying amounts of assets and liabilities in the event that the actual results differ from assumptions made,
relate to, but are not limited to, the following:

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3. Summary of material accounting policies (continued)

Mineral reserves and resources – The Company estimates its mineral reserves and resources based on
information compiled and reviewed by qualified persons as defined in accordance with NI 43- 101
requirements. The estimation of mineral reserves and resources requires judgment to interpret geological
data and metallurgical testing, design of appropriate mining methods, recovery methods and establishment of
a life of mine production schedule. The estimation of recoverable reserves is also based on assumptions
such as capital costs, operating costs and metal pric ing. New geological data or changes in the above
assumptions may change the economic viability of reserves and may, ultimately, result in the reserves being
revised. Changes in the reserve or resource estimates may impact the fair value of financial instruments, the
valuation of property, plant and equipment and mineral properties, the depletion and depreciation of property,
plant and equipment and mineral properties, utilization of tax losses and decommissioning and site restoration
provisions.

Fair value of financial instruments – The fair value of financial instruments that are not traded in an active
market are determined using valuation techniques. The Company uses its judgment to select a variety of
methods and makes significant assumptions that are mainly based on market conditions existing at initial
recognition and at the end of each reporting period. Refer to Note 20 for further details on the methods and
significant assumptions used.

Assessment of impairment indicators – Management applies significant judgement in assessing whether
indicators of impairment exist for a cash generating unit which would necessitate impairment testing. Internal
and external factors such as significant changes in the use of the asset, commodity prices, foreign exchange
rates, capital and production forecasts, mineral reserve and resource quantities, and discount rates are used
by management in determining whether there are any indicators. As at December 31, 2023, management did
not identify any impairment indicators on the Company’s mineral properties, property, plant, and equipment.

Deferred taxes – Deferred tax provisions are calculated by the Company while the actual amounts of income
tax expense are not final until tax returns are filed and accepted by the relevant authorities. Judgment is
required in assessing whether deferred tax assets and certain deferred tax liabilities are recognized on the
balance sheet, in interpreting applicable tax laws, and what tax rate is expected to be applied in the year when
the related temporary differences reverse. Deferred tax liabilities arising from temporary differences are
recognized unless the reversal of the temporary differences is not expected to occur in the foreseeable future
and can be controlled. Assumptions about the generation of future taxable profits and repatriation of retained
earnings depend on management’s estimates of future production and sales volumes, gold prices, reserves
and resources, operating costs, decommissioning and restoration costs, capital expenditures, dividends and
other capital management transactions. These estimates and judgments are subject to risk and uncertainty
and could result in an adjustment to the deferred tax provision and a corresponding credit or charge to profit.

Decommissioning and site restoration provisions – The Company has obligations for site restoration and
decommissioning related to Fruta del Norte. The future obligations for decommissioning and site restoration
activities are estimated by the Company using mine closure plans or other similar studies w hich outline the
requirements that will be carried out to meet the obligations. The provision for d ecommissioning and site
restoration is remeasured at the end of each reporting period for changes in estimates or circumstances.
Changes in estimates or circumstances include changes in legal or regulatory requirements, increased
obligations arising from additional mining and exploration activities, changes to cost estimates , and changes
to inflation and discount rates.

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3. Summary of material accounting policies (continued)

(d) Financial instruments

Financial assets and liabilities are recognized when the Company becomes a party to the contractual
provisions of the instrument.

Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets
or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities measured at fair value through profit or loss are recognized
immediately in the statement of income.

Financial assets

The Company classifies its financial assets according to the following measurement categories:

i. Amortized cost

Assets that are held for collection of contractual cash flows where those cash flows represent solely
payments of principal and interest are measured at amortized cost.

ii. Fair value through other comprehensive loss (“FVOCI”)

Assets that are held for both collection of contractual cash flows and future potential sale, where the
assets’ cash flows represent solely payments of principal and interest, are measured at fair value
through other comprehensive loss.

iii. Fair value through profit or loss (“FVPL”)

Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through
profit or loss.

Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired
or have been transferred and the Company has transferred substantially all the risks and rewards of
ownership.

Impairment of financial assets

The Company assesses the expected credit losses associated with its financial assets carried at amortized
cost and FVOCI. The impairment methodology applied depends on whether there has been a significant
increase in credit risk.

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3. Summary of material accounting policies (continued)

Financial liabilities

The Company classifies its financial liabilities according to the following measurement categories:

i. FVPL

Liabilities that are (i) held for trading or (ii) designated as FVPL, are measured at FVPL.

A financial liability is classified as held for trading if:

• It has been incurred principally for the purpose of repurchasing it in the near term; or
• On initial recognition it is part of a portfolio of identified financial instruments that the
Company may manage together and has a recent actual pattern of short-term profit-taking;
or
• It is a derivative, except for a derivative that is a financial guarantee contract or a designated
and effective hedging instrument.

A financial liability that is not a financial liability held for trading may be designated as FVPL upon
initial recognition if:

• Such designation eliminates or significantly reduces a measurement or recognition
inconsistency that would otherwise arise; or
• The financial liability forms part of a group of financial assets or liabilities or both, which is
managed and its performance is evaluated on a fair value basis; or
• It forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits
the entire combined contract to be designated as FVPL.

The amount of change in the fair value of the financial liability that is attributable to changes in the
credit risk of that liability is recognised in other comprehensive income. The remaining amount of
change in the fair value of liability is recognised in the statement of income. Changes in fair value
attributable to a financial liability’s credit risk that are recognised in other comprehensive income are
not subsequently reclassified to the statement of income; instead, they are transferred to retained
earnings upon derecognition of the financial liability.

ii. Amortized cost

Liabilities not measured at FVPL are measured subsequently at amortized cost using the effective
interest method.

Financial liabilities are derecognized when, and only when, the Company’s obligations are discharged,
cancelled or have expired.

(e) Cash and cash equivalents

Cash and cash equivalents include cash on hand and deposits held with banks, which are readily convertible
into known amounts of cash or mature within 90 days from the original dates of acquisition.

(f) Inventories

Ore stockpiles, in-circuit and finished metal inventory are valued at the lower of weighted average production
cost and net realizable value. Production costs include the cost of raw materials, direct labour, mine- site
overhead expenses and applicable depreciation and depletion of mineral properties, plant and equipment.
Net realizable value is calculated as the estimated price at the time of sale based on prevailing and long-term
metal prices less estimated future production costs to convert the inventories into saleable form and estimated
costs to sell.

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3. Summary of material accounting policies (continued)

Ore stockpile inventory represents ore on the surface that has been extracted from the mine and is available
for further processing. In-circuit inventory represents material in the mill circuit that is in the process of being
converted into a saleable form. Finished metal inventory represents doré and concentrate located at the mine,
in transit to and at port, and doré at refineries.

Materials and supplies inventories are valued at the lower of weighted average cost and net realizable value
with a provision recorded for obsolete or slow -moving inventory. Replacement costs of materials and spare
parts are generally used as the best estimate of net realizable value.

Any write -downs of inventory to net realizable value are recorded within cost of sales in the statement of
income. If there is a subsequent increase in the value of inventory, the previous write-downs to net realizable
value are reversed up to cost to the extent that the related inventory has not been sold.

(g) Property, plant and equipment

Property, plant and equipment are carried at cost less accumulated depreciation and impairment losses. The
cost of an asset consists of its purchase price, any directly attributable costs of bringing the asset to its present
working condition and location for its intended use and an initial estimate of the costs of dismantling and
removing the item and restoring the site on which it is located.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Company and the cost of the item can be measured reliably.

Depreciation of a majority of asset classes is calculated using the straight-line method to allocate its cost less
its residual value over its estimated useful life. Mine and plant facilities are depleted using a unit of production
method over the total recoverable reserves. The estimated useful lives of property, plant and equipment are
as follows:

Buildings 15 to 20 years
Machinery and equipment 5 to 10 years
Vehicles 5 years
Furniture and office equipment 3 to 10 years
Mine and plant facilities based on total recoverable reserves on a unit of production basis

Depreciation methods and estimated useful lives and residual values are reviewed annually and when facts
and circumstances require a re-estimate.

The Company reviews the estimated total recoverable reserves annually and when events and circumstances
indicate that such a review should be made. Changes to estimated total recoverable reserves are accounted
for prospectively.

Expenditures on major maintenance or repairs , including the cost of the replacement of parts of assets and
overhaul costs or w here an asset or part of an asset is replaced, the expenditure is capitalized and the
remaining carrying amount of the item repaired, overhauled or replaced is derecognized when it is probable
that future economic benefits associated with the item will be available to the Company . All other costs are
expensed as incurred.

An item of plant and equipment is derecognized upon disposal or when no future economic benefits are
expected to arise from the continued use of the asset. Any related gain or loss is determined as the difference
between the net disposal proceeds or residual value, as applicable, and the carrying amount of the asset, and
is recognized in the statement of income.

===== SIDA 61 =====

3. Summary of material accounting policies (continued)

(h) Exploration and evaluation (“E&E”) expenditures and mineral properties

Exploration and evaluation expenditures are those costs required to find a mineral property and determine
commercial viability. E&E costs include costs to establish an initial mineral resource and determine whether
Inferred mineral resources can be upgraded to Measured and Indicated mineral resources and whether
Measured and Indicated mineral resources can be converted to Proven and Probable reserves.

E&E costs consist of, but are not limited to:

• gathering exploration data through topographical and geological studies;
• exploratory drilling, trenching and sampling;
• determining the volume and grade of the resource;
• test work on geology, metallurgy, mining, geotechnical and environmental; and
• conducting engineering, marketing and financial studies.

Project costs in relation to these activities are expensed as incurred until such time that the project
demonstrates technical feasibility and commercial viability. Technical feasibility and commercial viability
generally coincides with the establishment of Proven and Probable mineral reserves. Upon demonstrating
technical feasibility and commercial viability, and subject to an impairment analysis, any such future costs,
including costs incurred to increase Proven and Probable reserves, are capitalized as development costs
within mineral properties.

After initial recognition, mineral properties are valued at cost less accumulated depletion and any impairment
losses. Costs associated with acquiring a mineral property are capitalized as incurred. Upon commencement
of commercial production, mineral properties are depleted based on total recoverable reserves on a unit of
production basis.

(i) Impairment of non-financial assets

Assets that are subject to amortiz ation are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recorded
immediately if the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the
higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating
units).

Fair value is the price that would be received from selling an asset or cash generating unit in an orderly
transaction between market participants at the measurement date. Costs to sell are incremental costs directly
attributable to the disposal of an asset or cash generating unit. Fair value less costs to sell is measured by
estimating future after tax cash flows using estimated future prices, mineral reserves and resources and
operating and capital costs. All inputs used are those that an independent market participant would consider
appropriate.

Value in use is determined as the present value of the future cash flows expected to be derived from continuing
use of an asset or cash generating unit in its present form. These estimated future cash flows are discounted
to their present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset or cash generating unit for which estimates of fut ure cash flows
have not been adjusted.

Non-financial assets that have been impaired in prior periods are reviewed for possible reversal of the
impairment at each reporting date. When identified, a reversal of an impairment loss is recognized in the
statement of income immediately.

===== SIDA 62 =====

3. Summary of material accounting policies (continued)

(j) Provisions

Asset retirement obligations

The Company recognizes a liability for an asset retirement obligation on long-lived assets when a present
legal or constructive obligation exists, as a result of past events , and the amount of the liability is reasonably
determinable. Asset retirement obligations are initially recognized and recorded as a liability based on
estimated future cash flows discounted at a risk-free rate. This is adjusted at each reporting period for changes
to factors including the expected amount of cash flows required to dis charge the liability, the timing of such
cash flows and the risk-free discount rate. Corresponding amounts and adjustments are added to the carrying
value of the related long-lived asset and depleted to operations over the life of the related asset.

(k) Current and deferred income tax

Tax is recognized in profit or loss , except to the extent that it relates to items recognized in other
comprehensive income or directly in equity. In this case the tax is also recognized in other comprehensive
income or directly in equity, respectively.

i. Current tax

The current income tax charge is calculated on the basis of the tax laws enacted or substantively
enacted on the statement of financial position date in the countries where the Company’s subsidiaries
operate and generate taxable income. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax regulation is subject to interpretation. It
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.

ii. Deferred tax

Deferred income tax is recognized on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the consolidated financial statements. However, the
deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a
transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws)
that have been enacted or substantively enacted by the statement of financial position date and are
expected to apply when the related deferred income tax asset is realized or the deferred income tax
liability is settled.

Deferred income tax assets are recognized only to the extent that it is probable that future taxable
profit will be available against which the temporary differences can be utilized.

Deferred income tax is provided on temporary differences arising on investments in subsidiaries,
except where the timing of the reversal of the temporary difference is controlled by the Company and
it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets against current tax liabilities and when the deferred income taxes assets and
liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or
different taxable entities where there is an intention to settle the balances on a net basis.

(l) Share capital

Common shares are classified as equity.

Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction from the
proceeds.

===== SIDA 63 =====

3. Summary of material accounting policies (continued)

(m) Stock-based compensation

The Company has a stock -based compensation plan, under which the entity receives services from
employees and non-employees as consideration for equity instruments (options and share units ) of the
Company.

Stock options and share units granted to employees are measured on the grant date. Stock options granted
to non-employees are measured on the date that the goods or services are received.

The fair value of the employee and non-employee services received in exchange for the grant of the options
and share units are recognized as an expense. The total amount to be expensed is determined by reference
to the fair value of the stock options and share units granted and the vesting periods. The total expense is
recognized over the vesting period, which is the period over which all of the specified vesting conditions are
to be satisfied.

The cash subscribed for the shares issued when the options are exercised is credited to share capital, net of
any directly attributable transaction costs.

(n) Earnings per share

Basic earnings per share is computed by dividing the net income available to common shareholders by the
weighted average number of shares outstanding during the reporting period. Diluted earnings per share is
computed similar to basic earnings per share except that the weighted average shares outstanding are
increased to include additional shares for the assumed exercise of stock options, if dilutive. The number of
additional shares is calculated by assuming that outstanding stock options were exercised and that the
proceeds from such exercises were used to acquire c ommon stock at the average market price during the
reporting periods.

(o) Comprehensive income

Comprehensive income is the change in the Company’s net assets that results from transactions, events and
circumstances from sources other than the Company’s shareholders and includes items that would not
normally be included in net profit such as derivative gains (losses) related to the Company’s own credit risk
on designated financial liabilities measured at fair value through profit or loss. The Company’s comprehensive
income, components of other comprehensive income ( loss) and cumulative translation adjustments are
presented in the consolidated statements of income and comprehensive income and the statements of
changes in equity.

(p) Revenue recognition

Revenues are recognized when all of the following criteria are met:
• Control has been transferred to the customer;
• Neither continuing managerial involvement to the degree usually associated with ownership, nor
effective control over the goods sold, has been retained;
• The amount of revenue can be reliably measured;
• It is probable that the economic benefits associated with the sale will flow to the Company; and
• The costs incurred or to be incurred in respect of the sale can be reliably measured.

These conditions are generally satisfied when title passes to the customer.

Doré sales

Revenues are recorded at the time of physical delivery, which is also the date that title of the gold and silver
passes to the customer. For gold, the sales price is determined in accordance with the terms of the offtake
commitment (Note 9). For silver, the sales price is fixed on the date of sale based on the silver spot price.

===== SIDA 64 =====

3. Summary of material accounting policies (continued)

Concentrate sales

Based on the terms of concentrate sales contracts with independent smelting companies, revenues are
recorded when the concentrate is loaded on vessels for shipment to the customers, which is also the date that
title passes to the customer. Sales prices are provisionally set at that time based on the then market prices.
Subsequent determination of final gold prices can range from one to four months after shipment depending
on the customer. For sales that are provisionally priced at year end, an estimate of the adjustment to revenues
and trade receivables is calculated based on the expected month when the final gold price is forecast to be
determined and the related forward price of gold at the end of the reporting period.

(q) IFRS pronouncements

Amendment to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting Policies

The International Accounting Standards Board (“IASB”) amended IAS 1 Presentation of Financial Statements
to require entities to disclose their material rather than their significant accounting policies. The amendments
define what is material accounting policy information and explain how to identify when acco unting policy
information is material. They further clarify that immaterial accounting policy information does not need to be
disclosed. If it is disclosed, it should not obscure material accounting information. To support this amendment,
the IASB also amended IFRS Practice Statement 2 Making Materiality Judgements to provide guidance on
how to apply the concept of materiality to accounting policy disclosures.

These amendments are effective for annual periods beginning on or after January 1, 2023. The Company
has modified certain disclosures to reflect this new IFRS pronouncement.

Amendments to IAS 12 - Deferred Tax related to Assets and Liabilities arising from a Single Transaction

The amendments to IAS 12 Income Taxes require companies to recognize deferred tax on transactions that,
on initial recognition, give rise to equal amounts of taxable and deductible temporary differences, and will
require the recognition of additional deferred tax assets and liabilities.

The amendment should be applied to transactions that occur on or after the beginning of the earliest
comparative period presented. In addition, entities should recogni ze deferred tax assets (to the extent that it
is probable that they can be utilised) and deferred tax liabilities at the beginning of the earliest comparative
period for all deductible and taxable temporary differences associated with:
• right-of-use assets and lease liabilities, and
• decommissioning, restoration and similar liabilities, and the corresponding amounts recognized as
part of the cost of the related assets.

The cumulative effect of recogni zing these adjustments is recognised in the opening balance of retained
earnings, or another component of equity, as appropriate.

This amendment is effective for annual periods beginning on or after January 1, 2023. As the Company has
recognized deferred taxes associated with its restoration provision, there was no impact by the adoption of
this new standard.

===== SIDA 65 =====

3. Summary of material accounting policies (continued)

Amendments to IAS 12 - International Tax Reform – OECD Pillar Two Model Rules

In May 2023, the IASB issued amendments to IAS 12 Income Taxes to clarify the application of IAS 12 to
income taxes arising from tax law enacted or substantively enacted related to the Pillar Two model rules
published by the Organization for Economic Co-operation and Development ( “OECD”). The amendments
require a mandatory temporary exception which prohibits the accounting for deferred taxes arising from tax
law that implements the Pillar Two model rules. This amendment was effective immediately upon its release.
The amendments also require disclosures that explain an entity's exposure to Pillar Two income taxes. These
disclosure requirements are effective for annual reporting periods beginning on or after January 1, 2023, but
are not required for interim periods before December 31, 2023. The Company has not included additional
disclosures arising from this amendment in these financial statements for the year ended December 31, 2023
because the impact was not material.

In August 2023, Finance Canada released, for public consultation, the draft legislation to implement the
OECD's Pillar Two global minimum tax regime. As at December 31, 2023, there was no tax legislation enacted
or substantively enacted related to the Pillar Two model in the jurisdictions the Company operates.

4. Trade receivables and other current assets

December 31, December 31,
2023 2022

Trade receivables (a) $ 93,036 $ 86,431
VAT recoverable (b) 23,409 61,883
Prepaid expenses and others (c) 47,011 20,820

$ 163,456 $ 169,134

(a) Trade receivables represent the value of concentrate and doré sold as at period end for which the funds
are not yet received. Consistent with industry standards, concentrate sales generally have relatively long
payment terms and are not settled until two to five months after export.

Concentrate sales are first recorded based on provisional prices. For sales that are provisionally priced as
at December 31, 2023, an adjustment is estimated and recorded using the forward gold price at year end
for the future month when the final gold price for each individual sale is expected to be determined. This
adjustment resulted in an increase of $7.8 million in trade receivables as of December 31, 2023 (December
31, 2022 - $6.1 million).

(b) Subject to submission of monthly claims and their acceptance by the applicable tax authorities, VAT paid in
Ecuador by the Company after January 1, 2018 are being refunded or applied as a credit against other
taxes payable, based on the level of export sales in any given month. Therefore, a portion of the VAT
recoverable has been reclassified as current assets.

(c) Prepaid expenses and other includes credit notes issued by the tax authorities in Ecuador relating to
approved VAT claims. These credit notes can be used to offset taxes payable including statutory tax
withholdings from payments to vendors.

===== SIDA 66 =====

5. Inventories

December 31, December 31,
2023 2022

Ore stockpile $ 6,922 $ 11,545
Gold in circuit 7,849 5,833
Doré and concentrate 17,868 16,709
Materials and supplies 56,767 55,700

$ 89,406 $ 89,787

As at December 31, 2023, the Company maintained a provision of $7.0 million (December 31, 2022 - $5.0 million)
associated with obsolete or slow -moving material s & supplies inventory generally accumulated during the
construction of Fruta del Norte.

6. Property, plant and equipment

Cost
Construction-
in-progress
Mine and
plant
facilities
Machinery
and
equipment Vehicles
Furniture
and office
equipment Total

Balance, January 1,
2022 $ 27,536 $ 874,098 $ 54,865 $ 23,078 $ 2,685 $ 983,262

Additions 18,569 29,715 2,202 2,311 1,350 54,147
Disposals and other - (1,953) (3,154) (795) (612) (6,514)
Reclassifications (46,105) 46,105 - - - -
Cumulative translation
adjustment - (841) - - (5) (846)

Balance, December
31, 2022 - 947,124 54,913 24,594 3,418 1,030,049

Additions 7,009 39,320 649 1,076 1,110 49,164
Disposals and other - - (5,971) (1,230) (1,995) (9,196)
Cumulative translation
adjustment - 297 - - 10 307

Balance, December
31, 2023 $ 7,009 $ 986,741 $ 49,591 $ 24,440 $ 2,543 $ 1,070,324

===== SIDA 67 =====

6. Property, plant and equipment (continued)

Accumulated
depletion and
depreciation
Construction-
in-progress
Mine and
plant
facilities
Machinery
and
equipment Vehicles
Furniture
and office
equipment Total

Balance, January 1,
2022 $ - $ 114,469 $ 18,493 $ 13,189 $ 2,037 $ 148,188

Depletion and
depreciation - 92,689 6,640 4,426 264 104,019
Disposals and other - (410) (1,513) (748) (612) (3,283)
Cumulative translation
adjustment - (169) - - (5) (174)

Balance, December
31, 2022 - 206,579 23,620 16,867 1,684 248,750

Depletion and
depreciation - 100,225 6,481 3,946 589 111,241
Disposals and other - - (5,432) (1,230) (1,995) (8,657)
Cumulative translation
adjustment - 92 - - 2 94

Balance, December
31, 2023 $ - $ 306,896 $ 24,669 $ 19,583 $ 280 $ 351,428

Net book value

As at December 31,
2022 $ - $ 740,545 $ 31,293 $ 7,727 $ 1,734 $ 781,299

As at December 31,
2023 $ 7,009 $ 679,845 $ 24,922 $ 4,857 $ 2,263 $ 718,896

7. Mineral properties

Cost Fruta del Norte

Balance, January 1, 2022 $ 207,146

Adjustments to restoration asset -
Depletion (23,639)

Balance, December 31, 2022 183,507

Adjustments to restoration asset 1,004
Depletion (24,483)

Balance, December 31, 2023 $ 160,028

===== SIDA 68 =====

8. Accounts payable and accrued liabilities

December 31, December 31,
2023 2022

Accounts payable $ 16,750 $ 14,259
Accrued liabilities 58,074 57,175

$ 74,824 $ 71,434

9. Long-term debt

December 31, December 31,
2023 2022

Gold prepay credit facility (a) $ - $ 207,446
Stream credit facility (b) 276,183 259,226
Offtake derivative liability (c) 29,464 28,440
Senior debt facility (d) - 172,854

$ 305,647 $ 667,966

Less: current portion
Gold prepay credit facility - 207,446
Stream credit facility 59,568 49,223
Offtake derivative liability 4,148 4,112
Senior debt facility - 84,593

Long-term portion $ 241,931 $ 322,592

The stream credit facility (the “Stream Facility ”) and the offtake derivative liability are accounted for as financial
liabilities at fair value through profit or loss and are comprised of the following as at December 31, 2023.

Stream loan
credit facility
Offtake
derivative
liability Total

Principal $ 101,105 $ - $ 101,105
Transaction costs (1,859) - (1,859)
Derivative fair value adjustments 176,937 29,464 206,401

Total $ 276,183 $ 29,464 $ 305,647

Derivative fair value adjustments reflect the revaluation of the financial instruments at fair value as at December
31, 2023. The derivative gain or loss related to the Company’s own credit risk recorded in other comprehensive
income includes the impact of the difference between the Company’s own credit risk at the time of entering into
the long-term debt and the statement of financial position date (see also Note 20).

===== SIDA 69 =====

9. Long-term debt (continued)

(a) Gold prepay credit facility (the “Gold Prepay Facility”)

In late December, as provided under the Gold Prepay Facility, the Company exercised its right to repay in full
the Gold Prepay Facility by delivering an irrevocable notice of early repayment of its remaining outstanding
obligations effective January 5, 2023. On that day, a payment of $207.5 million was made to extinguish the
Gold Prepay Facility, inclusive of interest of $0.1 million accrued between January 1 to January 5, 2023.
Repayment was based on a gold price fixed near the end of December 2022 and a negotiated amount of
equivalent ounces per quarter for the last ten remaining quarters at that time. As at December 31, 2022, the
fair value of the Gold Prepay Facility at was determined to be $207.4 million, comprised of the remaining
unamortized principal balance and an accrued Finance Charge of $128.5 million, and was classified as part
of the current portion of long-term debt.

(b) Stream Facility

The Stream Facility is a secured loan facility with a stated interest rate of 7.5% per annum with interest
accruing based upon the outstanding balance.

The Stream Facility is repayable in variable monthly instalments equivalent to the value of 7.75% of gold
production less $404 per oz. (the “Gold Base Price”) and 100% of the silver production less $4.04 per oz. (the
“Silver Base Price”) up to a maximum of 350,000 oz. of gold and six million oz. of silver. The Gold Base Price
and Silver Base Price will increase by 1% in February of each year . The excess of the monthly repayments
over the principal due monthly and the balance of interest accrued to that date, if any, is a variable additional
charge (the “Finance Charge”).

The Company has elected to measure the Stream Facility as a financial liability at fair value through profit or
loss. During the year ended December 31, 2023 , the Company made payments under the Stream Facility
totaling $79.9 million (2022 – $56.0 million) of which $17.5 million (2022 – $13.9 million) was paid on account
of principal; $8.3 million (2022 – $9.5 million) for accrued interest; and $54.1 million (2022 – $32.6 million) for
the Finance Charge (see Note 20). As at December 31, 2023, based on the projected life of mine production
and other significant assumptions (see Note 20), the estimated fair value equivalent to 235,91 2 oz. of gold
and 4,523,029 oz. of silver remains outstanding under the Stream Facility.

The Company has the option to repay (i) 50% of the remaining Stream Facility on June 30, 2024 for $150
million and / or (ii) the other 50% of the remaining Stream Facility on June 30, 2026 for $225 million.

The lender of the Stream Facility has been granted the right to purchase 50% of Fruta del Norte gold
production, up to a maximum of 2.5 million oz., at a price determined based on monthly delivery dates and a
defined quotational period. This obligation is satisfied first through the sale of doré and then, if required,
financial settlement.

The Company has determined that the Offtake represents a derivative financial liability. Accordingly, the
Offtake, which is primarily a function of the gold price option feature, is measured at fair value at each
statement of financial position date, with changes in the derivative fair value being recorded in profit or loss.
As at December 31, 2023, based on the projected life of mine production and other significant assumptions
(see Note 20), the estimated fair value equivalent of 1, 733,865 oz of gold remains outstanding under the
Offtake.

(d) Senior debt facility (the “Senior Facility”)

During the year ended December 31, 2023, the Company paid $181.5 million of principal (2022 – $86.2 million)
and $11.5 million (2022 – $10.8 million) of interest relating to the Senior Facility which includes the election to
fully repay the Senior Facility on November 14, 2023. Following the full repayment of the Senior Facility, the
remaining balance of deferred transaction costs were recognized within finance expense. The full repayment
was completed in accordance with the terms of the Senior Facility without any fees or penalties due to the
senior lenders.

===== SIDA 70 =====

9. Long-term debt (continued)

Under the long-term debt, the Company, together with its subsidiaries related to Fruta del Norte (collectively, the
“FDN Subsidiaries”), remain subject to a number of covenants. In addition, the long-term debt is secured by a
charge over the FDN Subsidiaries’ assets, pledges of the shares of the FDN Subsidiaries and guarantees of the
Company and the FDN Subsidiaries.

10. Reclamation provision

The Company’s reclamation provision relates to the rehabilitation of Fruta del Norte. The reclamation provision
has been calculated based on total estimated rehabilitation costs and discounted back to its present value. The
pre-tax discount rate and inflation rate are adjusted annually and reflect current market assessments.

At December 31, 2023, the Company applied a pre-tax discount rate of 9.4% (2022 – 9.5%) and an inflation rate
of 1.4% (20 22 – 1.5%). The estimated total future liability for reclamation and remediation costs on an
undiscounted basis and adjusted for an estimate of future inflation is approximately $30.2 million (2022 – $29.1
million).

December 31, December 31,
2023 2022

Balance, beginning of year $ 7,049 $ 6,438

Change in discount rate, amount, and timing of cash flows 1,004 -
Accretion of liability component of obligations 669 611

Balance, end of year $ 8,722 $ 7,049

11. Share capital

Authorized:
• Unlimited number of common shares without par value
• Unlimited number of preference shares without par value

During the year ended December 31, 202 3, the Company issued 800,840 common shares to Newmont
Corporation (“Newmont”) , indirectly through its subsidiary Newcrest Canada Inc. (“Newcrest”), at a weighted
average price of CAD$ 16.37 per share for total proceeds of $9.6 million. During the year ended December 31,
2022, 477,260 common shares were issued to Newcrest at a weighted average price of CAD$10.50 per share for
total proceeds of $3.9 million. These issuances were completed in accordance with anti-dilution rights granted from
an initial investment into the Company by Newcrest, which was recently acquired by Newmont.

12. Stock-based compensation

Under an omnibus incentive plan (the “Omnibus Plan”) that allows for the reservation of a maximum 6 % of the
common shares issued and outstanding for issuance at any given time , the Company may grant stock options,
restricted share units and deferred share units (collectively, the “Awards”). Subject to specific provisions under
the Omnibus Plan, the eligibility, vesting period, term, and number of Awards are granted at the disc retion of the
Company’s board of directors.

Recipients of share units granted and outstanding on a dividend record date are entitled to receive an award of
additional share units equal to the cash dividends declared and paid on the Company’s common shares (“Dividend
Equivalent”). Dividend Equivalents are calculated in accordance with the Omnibus Plan based on the number of
share units held, the dividend per share and the weighted average trading price of the Company’s shares on the
TSX for the five days preceding the date the dividend was paid. The se additional share units are subject to the
same terms and conditions as the underlying share units.

===== SIDA 71 =====

12. Stock-based compensation (continued)

i. Stock options

Stock options granted and outstanding under the Omnibus Plan and a pre-existing stock option plan (the
“Option Plan”) have an expiry date of five years and vest over a period of three or four years from date of
grant. No additional stock options can be granted under the Option Plan.

During the year ended December 31, 2023, 530,600 stock options were granted under the Omnibus Plan.

Stock options are exercisable into one common share of the Company at the price specified in the terms of
the option agreement.

A continuity summary of the stock options granted and outstanding under the Omnibus Plan and Option Plan
is presented below:

Year ended Year ended
December 31, 2023 December 31, 2022
Weighted
average
Weighted
average
Number of exercise price Number of exercise price
stock options (CAD) stock options (CAD)

Balance, beginning of period 4,237,923 $ 8.35 4,863,400 $ 7.26

Granted 530,600 14.13 772,800 9.86
Forfeited (17,002) 10.00 (42,884) 10.23
Exercised(1) (1,156,552) 5.28 (1,355,393) 5.23

Balance outstanding, end of period 3,594,969 $ 10.18 4,237,923 $ 8.35

Balance exercisable, end of period 2,299,121 $ 9.30 2,693,070 $ 7.10
(1) The weighted average share price on the exercise date for the stock options exercised during the year ended December
31, 2023 was CAD$16.11 (2022 - CAD$11.62).

The following table summarizes information concerning outstanding and exercisable options at December 31,
2023:

Outstanding options Exercisable options

Range of
exercise
prices
(CAD)
Number of
options
outstanding
Weighted
average
remaining
contractual
life (years)
Weighted
average
exercise
price
(CAD)
Number of
options
outstanding
Weighted
average
remaining
contractual
life (years)
Weighted
average
exercise
price (CAD)

$ 5.22 to 5.40 801,300 0.16 $ 5.36 801,300 0.16 $ 5.36
$ 5.41 to 11.00 1,433,069 2.66 10.13 714,417 2.50 10.23
$ 11.01 to 16.12 1,360,600 2.49 13.08 783,404 1.29 12.48

3,594,969 2.04 $ 10.18 2,299,121 1.27 $ 9.30

===== SIDA 72 =====

12. Stock-based compensation (continued)

The fair value based method of accounting was applied to stock options granted to employees, including
directors, and non-employees on the date of grant using the Black -Scholes option pricing model with the
following weighted-average assumptions:

December 31, 2023 December 31, 2022

Risk-free interest rate 3.17% 1.62%
Expected stock price volatility 38.43% 36.51%
Expected life 5 years 5 years
Expected dividends (CAD) $0.26 -

Weighted-average fair value per option granted (CAD) $4.57 $3.40

The equity-settled share-based payment reserve includes the fair value of employee options as measured at
grant date and amortized over the period during which the employees become unconditionally entitled to the
options.

During the year ended December 31, 2023, the Company recorded stock -based compensation expense of
$1.8 million (2022 – $2.1 million).

ii. Share units

Under the Omnibus Plan, the Company has granted restricted share units and deferred share units to eligible
employees and non-employee directors as presented below.

Restricted share units with
performance criteria

Restricted share units

Settled in
cash or shares
Settled in
shares

Settled in
cash
Settled in
shares Deferred
share units

Balance at January 1, 2022 148,000 187,300 24,600 110,800 23,308

Granted - 196,500 - 86,800 10,509
Granted – Dividend Equivalent 4,052 10,506 670 4,271 861
Cancelled - (17,054) - - -
Settled - - - (41,000) -

Balance at December 31, 2022 152,052 377,252 25,270 160,871 34,678

Granted - 167,300 - 134,884 9,007
Granted - Dividend Equivalent - 18,300 - 5,744 607
Cancelled - - (5,752) (24,652) -
Settled (152,052) - (19,518) (101,646) (30,825)

Balance at December 31, 2023 - 562,852 - 175,201 13,467

Restricted share units with performance criteria (“PSUs”)

During the year ended December 31, 2023, the Company granted 167,300 PSUs that are settled in shares
(“Share PSUs”). In addition, in connection with dividends paid during the year ended December 31, 2023,
18,300 Share PSUs were granted as Dividend Equivalents. During the year ended December 31, 2022, the
Company granted 196,500 Share PSUs. In addition, in connection with the Company’s inaugural dividend
paid in 2022, 10,506 Share PSUs and 4,052 PSUs that are settled in cash or common shares, at the recipient’s
option, (“Cash PSUs”) were granted as Dividend Equivalents.

===== SIDA 73 =====

12. Stock-based compensation (continued)

All Cash PSUs were settled through a combination of payment of cash or issuance of shares during the year
ended December 31, 2023. Share PSUs are granted to eligible employees and vest three years from date of
grant subject to continued employment and certain performance conditions being met. The number of Share
PSUs that vest will be adjusted using a multiplier that is based on total shareholder return by the Company’s
shares over the three -year period relative to a peer group as defined by the Company’s board of directors.
Each vested Share PSU entitles the recipient to a payment of one common share.

Using Monte Carlo simulation, the fair value of Share PSUs was measured on the date of grant while the fair
value of Cash PSUs was measured as at December 31, 2022 with the following weighted-average
assumptions:

December 31,
2023
December 31, 2022
Share PSUs Share PSUs Cash PSUs

Risk-free interest rate 4.22% 2.20% N/A
Average expected volatility of the Company
and its peer group

45.64%

50.54%

N/A
Expected life 3 years 3 years 0.15 years
Expected dividends (CAD) $0.26 - $0.26

Weighted-average fair value per unit (CAD) $12.38 $9.33 $13.23

The fair value of Share PSUs measured at grant date are being amortized over the period during which the
employees become unconditionally entitled to the Share PSUs. During the year ended December 31, 2023,
the Company recorded stock -based compensation expense of $1. 4 million (2022 – $0.9 million) relating to
Share PSUs.

Restricted share units without performance criteria (“RSUs”)

During the year ended December 31, 2023, the Company granted 134,884 RSUs that are settled in shares
(“Share RSUs”). In addition, in connection with dividends paid during year ended December 31, 2023, 5,744
Share RSUs were granted as Dividend Equivalents. During the year ended December 31, 2022, the Company
granted 86,800 Share RSUs. In addition, in connection with the Company’s inaugural dividend paid in 2022,
4,271 Share R SUs and 670 RSUs that are settled in cash (“Cash RSUs”) were granted as Dividend
Equivalents.

All Cash RSUs were settled in cash during the year ended December 31, 2023. Share RSUs are granted to
eligible employees and vest one to three years from date of grant subject to continued employment. Each
vested Share RSU entitles the recipient to a payment of one common share.

Using the Black-Scholes option pricing model, the fair value of the Share RSUs was measured on the date of
grant while the fair value of the Cash RSUs was measured as at December 31, 202 2 with the following
weighted-average assumptions:

December 31,
2023
December 31, 2022
Share RSUs Share RSUs Cash RSUs

Risk-free interest rate 3.88% 1.22% 3.86%
Expected stock price volatility 39.36% 44.54% 39.27%
Expected life 1.96 years 1.99 years 0.15 years
Expected dividends (CAD) $0.26 - $0.26

Weighted-average fair value per unit (CAD) $17.33 $12.42 $13.86

===== SIDA 74 =====

12. Stock-based compensation (continued)

The fair value of Share RSUs measured at grant date are being amortized over the period during which the
employees become unconditionally entitled to the Share RSUs. During the year ended December 31, 2023,
the Company recorded stock -based compensation expense of $1.1 million (2022 – $0.9 million) relating to
Share RSUs.

Deferred share units (“DSUs”)

During the year ended December 31, 2023 and year ended December 31, 2022, the Company granted 9,007
DSUs and 10,509 DSUs, respectively, to non- employee directors. In addition, in connection with dividends
paid by the Company during the year ended December 31 , 2023, 607 DSUs were granted as Dividend
Equivalents (2022 - 861 DSUs). The DSUs do not vest until the end of service as a director of the Company.
Each vested DSU entitles the recipient to a payment in shares.

During the year ended December 31, 2023, the Company recorded stock -based compensation expense of
$0.2 million (2022 – $0.1 million) relating to DSUs.

13. Revenues

December 31,
2023
December 31,
2022

Doré sales $ 324,792 $ 283,083
Concentrate sales 576,026 526,483
Gain on provisionally priced trade receivables 1,700 6,100

$ 902,518 $ 815,666

14. Administration

December 31,
2023
December 31,
2022

Corporate social responsibility $ 2,260 $ 1,727
Investor relations 386 380
Office and general 3,243 3,035
Professional fees 2,130 2,049
Regulatory and transfer agent 433 398
Salaries and benefits 7,409 6,354
Stock-based compensation 4,468 5,008
Travel 703 454

$ 21,032 $ 19,405

===== SIDA 75 =====

15. Finance expense

December 31,
2023
December 31,
2022

Interest expense $ 17,746 $ 29,972
Finance charge (Note 9(a)) 54,097 197,266
Other finance costs 2,429 5,778
Accretion of transaction costs (Note 9(d)) 10,997 7,783

$ 85,269 $ 240,799

16. Related party transactions

Key management compensation

Key management includes executive officers and directors of the Company. The compensation paid or payable
to key management for employee services and directors is shown below.

December 31, December 31,
2023 2022

Salaries, bonuses and benefits $ 6,611 $ 5,606
Stock-based compensation 3,471 3,991

$ 10,082 $ 9,597

17. Income taxes

(a) Income tax expense

Current income tax expense is generated from net income for tax purposes in Ecuador relating to operations
at Fruta del Norte. In addition to corporate income taxes in Ecuador which are levied at a rate of 22% and
dividend withholding taxes levied at a ra te of 5% related to the anticipated portion of net income distributed
from Ecuador, included in current income tax expense is the portion of profit sharing payable to the
Government of Ecuador which is calculated at a rate of 12% of net income for tax purposes. The employee
portion of profit sharing, calculated at a rate of 3% of net income for tax purposes, is considered an
employment benefit and included in operating costs.

The rates used in Ecuador differ from the amount that would result from applying the Canadian federal and
provincial income tax rates to net income before tax. These differences result from the following items:

===== SIDA 76 =====

17. Income taxes (continued)

December 31,
2023 2022

Net income before tax $ 285,038 $ 177,274

Canadian federal and provincial income tax rates 27.00% 27.00%

Expected income tax expense based on the above rates 76,960 47,864

Increase (decrease) due to:
Differences in foreign tax rates 12,954 9,327
Non-deductible costs 5,889 9,655
Losses and temporary differences for which an income tax asset has
not been recognized

4,087

313
Non-taxable portion of capital gains (235) 1,195
Withholding taxes (current and deferred) 5,926 11,270
Recognition and de-recognition of deferred tax assets (1) - 24,092

Income tax expense $ 105,581 $ 103,716

(1) The de-recognition of deferred tax assets of $24.1 million was a one-time adjustment relating to a revised
judgment of the application of certain tax laws in Ecuador in 2022.

(b) Deferred income taxes

Deferred tax liabilities have been recognized on the statement of financial position as follows:

December 31,
2023 2022

Inventories $ 2,383 $ 2,899
Mineral properties and property, plant and equipment 115,599 84,162
Long-term debt (45,408) (37,640)
Trade receivables and other current assets (3,209) (4,332)
Accounts payable and accrued liabilities (3,143) (4,463)
Other 8,500 6,000

$ 74,722 $ 46,626

Deductible temporary differences for which no deferred taxes assets have been recognized are as follows:

December 31,
2023 2022

Non-capital losses - Canada $ 28,864 $ 26,648
Net-capital losses - Canada 7,910 5,212
Mineral properties and property, plant and equipment 55,617 45,592
Share issuance costs 207 637
Other 8,722 7,049

$ 101,320 $ 85,138

===== SIDA 77 =====

17. Income taxes (continued)

As at December 31, 2023, the Company has the following tax losses which may be used to reduce future taxable
income:

Year of expiry Canada

2024 $ -
2025 -
2026 -
2027 -
2028 and onwards 28,864

Total $ 28,864

18. Supplemental cash information

Cash and cash equivalents are comprised of the following:

December 31, December 31,
2023 2022

Cash $ 70,670 $ 283,596
Short-term investments 197,355 79,804

$ 268,025 $ 363,400

Other supplemental cash information:

December 31,
2023 2022

Income taxes paid (1) $ 46,017 $ 54,376

Change in accounts payable and accrued
liabilities related to:

Acquisition of property, plant and equipment 929 127

(1) Income taxes paid includes $25 million voluntary advance income tax payment to the Government of Ecuador
which will reduce the Company’s corporate income tax payment due in April 2024. Effective January 1, 2024, the
Company is subject to monthly income tax instalment payments in Ecuador using a rate published by the tax
authorities in Ecuador based on the previous year’s tax return.

===== SIDA 78 =====

18. Supplemental cash information (continued)

The following table sets forth the changes in liabilities arising from financing activities for the year ended December
31, 2023.

Gold
prepay
credit
facility

Stream
loan credit
facility
Offtake
derivative
liability

Senior
debt
facility Total

Balance, January 1, 2022 $ 197,780 $ 263,614 $ 27,038 $ 251,545 $ 739,977

Cash outflows (39,071) (23,478) - (86,209) (148,758)
Change in derivative fair values (89,404) 9,333 1,402 - (78,669)
Finance charge accrued 128,499 - - - 128,499
Other changes (1) 9,642 9,757 - 7,518 26,917

Balance, December 31, 2022 $ 207,446 $ 259,226 $ 28,440 $ 172,854 $ 667,966

Cash outflows (207,512) (25,821) - (181,541) (414,874)
Change in derivative fair values - 34,285 1,024 - 35,309
Finance charge accrued - - - - -
Other changes (1) 66 8,493 - 8,687 17,246

Balance, December 31, 2023 $ - $ 276,183 $ 29,464 $ - $ 305,647
(1) Other changes include non-cash movements and accrual of interest and finance charge.

19. Segmented information

Operating segments are components of an entity that engage in business activities from which they incur expenses
and whose operating results are regularly reviewed by a chief operating decision maker to make resource
allocation decisions and to assess perf ormance. The Chief Executive Officer is responsible for allocating
resources and reviewing operating results of each operating segment on a periodic basis.

The Company’s primary business activity is the Fruta del Norte operating mine in Ecuador. Materially all of the
Company’s non-current assets and non- current liabilities relate to Fruta del Norte. In addition, the Company
conducts exploration activities and maintains a number of concessions in Ecuador outside of Fruta del Norte.

===== SIDA 79 =====

19. Segmented information (continued)

The following are summaries of the Company’s current and non-current assets, current and non-current liabilities,
and net income (loss) by segment:

Fruta del
Norte
Exploration
activities
Corporate
and other Total

As at December 31, 2023

Current assets $ 477,929 $ 941 $ 55,017 $ 533,887
Non-current assets 933,830 102 390 934,322

Total assets 1,411,759 1,043 55,407 1,468,209

Current liabilities 184,802 1,476 750 187,028
Non-current liabilities 316,875 - 8,500 325,375

Total liabilities 501,677 1,476 9,250 512,403

For the year ended December 31, 2023

Revenues 902,518 - - 902,518

Income from mining operations 435,180 - - 435,180
Corporate administration (5,041) (145) (15,846) (21,032)
Exploration expenditures - (23,720) - (23,720)
Finance income (expense) (76,095) - 3,790 (72,305)
Other expense (327) - (689) (1,016)
Derivative loss (32,069) - - (32,069)
Income tax expense (99,656) - (5,925) (105,581)

Net income (loss) for the year 221,992 (23,865) (18,670) 179,457

===== SIDA 80 =====

19. Segmented information (continued)

Fruta del
Norte
Exploration
activities
Corporate
and other Total

As at December 31, 2022

Current assets $ 544,121 $ 7,978 $ 83,222 $ 635,321
Non-current assets 1,033,544 - - 1,033,544

Total assets 1,577,665 7,978 83,222 1,668,865

Current liabilities 430,945 1,229 8,343 440,517
Non-current liabilities 370,267 - 6,000 376,267

Total liabilities 801,212 1,229 14,343 816,784

For the year ended December 31, 2022

Revenues 815,666 - - 815,666

Income from mining operations 369,754 - - 369,754
Corporate administration (4,702) (66) (14,637) (19,405)
Exploration expenditures - (15,450) - (15,450)
Finance income (expense) (236,889) - 1,178 (235,711)
Other income (expense) (3,304) - 5,073 1,769
Derivative gain 76,317 - - 76,317
Income tax expense (92,446) - (11,270) (103,716)

Net income (loss) for the year 108,730 (15,516) (19,656) 73,558

20. Financial instruments and risk management

The Company’s financial instruments include cash, cash equivalents and certain receivables, which are
categorized as financial assets at amortized cost, and accounts payable and accrued liabilities, which are
categorized as financial liabilities at amortized cost. The fair value of these financial instruments approximates
their carrying values due to the short-term nature of these instruments. In addition, the Stream Facility and offtake
commitment have been classified as financial liabilities measured at fair value. Further, provisionally priced trade
receivables of $93.0 million (2022 - $86.4 million) are measured at fair value using quoted forward market prices
(level 2).

(a) Fair value measurements and hierarchy

IFRS Accounting Standards establish a fair value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities and the lower priority to unobservable inputs. The three levels of the
fair value hierarchy are as follows:

Level 1: Quoted prices in active markets for identical assets or liabilities that the reporting entity has
the ability to access at the measurement date.

Level 2: Inputs that are observable, either directly or indirectly, for substantially the full term of the
asset or liability.

Level 3: Inputs that are both significant to the fair value measurement and unobservable.

===== SIDA 81 =====

20. Financial instruments and risk management (continued)

(b) Fair value measurements using significant unobservable inputs (Level 3)

The following table sets forth the Company’s financial liabilities measured at fair value on a recurring basis by
level within the fair value hierarchy for the years ended December 31, 202 3 and December 31, 2022. Each
of these financial instruments are classified as Level 3 as their valuation includes significant unobservable
inputs.

Stream loan
credit
facility
Offtake
derivative
liability Total

Balance, January 1, 2022 $ 263,614 $ 27,038 $ 290,652

Principal paid (13,933) - (13,933)
Interest paid (9,545) - (9,545)
Interest accrued at stated rate of 7.5% 9,545 - 9,545
Accretion of transaction costs 212 - 212

Derivative fair value adjustments recognized in:
Net income 20,608 1,402 22,010
Other comprehensive income (11,275) - (11,275)
Change in derivative fair values 9,333 1,402 10,735

Balance, December 31, 2022 $ 259,226 $ 28,440 $ 287,666

Principal paid (17,541) - (17,541)
Interest paid (8,280) - (8,280)
Interest accrued at stated rate of 7.5% 8,280 - 8,280
Accretion of transaction costs 212 - 212

Derivative fair value adjustments recognized in:
Net income 31,045 1,024 32,069
Other comprehensive income 3,241 - 3,241
Change in derivative fair values 34,286 1,024 35,310

Balance, December 31, 2023 $ 276,183 $ 29,464 $ 305,647

The Stream Facility and the Offtake above were valued using Monte Carlo simulation valuation models. The
significant assumptions used in the Monte Carlo valuation models include: the gold and silver forward prices,
gold and silver price volatility, the risk-free rate of return, risk-adjusted discount rates, and the projected life of
mine production schedule.

As the gold price and silver price volatilities and risk -adjusted discount rates are unobservable inputs, the
Stream Facility and the Offtake are classified within Level 3 of the fair value hierarchy. The following table
summarizes the quantitative information about the significant unobservable inputs used in Level 3 fair value
measurements.

===== SIDA 82 =====

20. Financial instruments and risk management (continued)

Fair value at
December
31, 2023
Unobservable
inputs
Range of
inputs
Relationship of unobservable
inputs to fair value

Stream Facility
and Offtake
$ 305,674 Gold price and
silver price
volatilities
13% to 29% An increase or decrease in the
expected volatilities of 5% would
increase or decrease the fair value
of long-term debt and derivative loss
by $7.1 million or $7.9 million,
respectively
Risk-adjusted
discount rates
12% to 13% An increase or decrease in risk-
adjusted discount rates of 1% would
decrease or increase the fair value of
long-term debt and comprehensive
income by $4.7 million or $4.8 million,
respectively

(d) Valuation processes

The valuation of financial instruments classified as Level 3 of the fair value hierarchy were prepared by an
independent valuation specialist under the direct oversight of the Senior Vice President, Finance of the
Company. Discussions of valuation processes and results are reported to the audit committee at least once
every three months, in line with the Company’s quarterly reporting periods.

(e) Financial risk management

The Company’s financial instruments are exposed to a variety of financial risks by virtue of its activities or by
their nature.

Currency risk

Lundin Gold is a Canadian company, with foreign operations in Ecuador. Revenues generated and
expenditures incurred in Ecuador are primarily denominated in U.S. dollars, as are its loan facilities. However,
equity capital, if needed, is typically raised in Canadian dollars. As such, the Company is subject to risk due
to fluctuations in the exchange rates of foreign currencies. Although the Company does not enter into
derivative financial instruments to manage its exposure, the Company tries to manage this risk by maintaining
most of its cash in U.S. dollars. Based on this exposure, a 2% change in the U.S. dollar exchange rate would
give rise to an increase or decrease of approximately $1.1 million in net income for the year.

Credit risk

Credit risk is the risk of a financial loss to the Company if a counterparty to a financial instrument fails to meet
its contractual obligations. The majority of the Company’s cash is held in large financial institutions with a
high investment grade rating. The Company is also subject to credit risk associated with its trade receivables.
The Company manages this risk by only selling to a small group of reputable customers with strong financial
statements.

===== SIDA 83 =====

20. Financial instruments and risk management (continued)

Concentration of credit risk

Cash and cash equivalents are held with high quality financial institutions. Substantially all of the Company’s
cash and cash equivalents held with financial institutions exceed government -insured limits. The Company
has established a treasury policy that seek to minimize its credit risk by entering into transactions with
investment grade credit wort hy and reputable financial institutions and by monitoring the credit standing of
those financial institutions. The Company seeks to limit the amount of exposure with any one counterparty in
accordance with its established treasury policy.

Interest rate risk

The Company is subject to interest rate risk with respect to the fair value of long-term debt which are accounted
for at fair value through profit or loss. Refer to Note 20(c) for the impact of changes in interest rates on the
fair value of the Company’s long-term debt.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its obligations as they become due. Cash
flow forecasting is performed regularly to monitor the Company’s liquidity requirements to ensure it has
sufficient cash to meet its operational needs at all times. In addition, management is actively involved in the
review, planning and approval of significant expenditures and commitments.

The Company’s accounts payable and accrued liabilities are due within twelve months. For the Company’s
long-term debt, terms of repayment are described in Note 9.

Commodity price risk

The Company is subject to commodity price risk from fluctuations in the market prices of gold and silver.
Commodity price risks are affected by many factors that are outside the Company’s control including global
or regional consumption patterns, the supply of and demand for metals, speculative activities, the availability
and costs of substitutes, inflation and political and economic conditions. The Company has not hedged the
price of any commodity at this time.

The fair value of a portion of the Company’s trade receivables as well as long-term debt accounted for at fair
value through profit or loss are impacted by fluctuations of commodity prices. Based on this exposure, an
increase or decrease of 5% in gold and silver prices would increase or decrease the fair value of the
Company’s trade receivables by $5 million and the long-term debt by $14 million.

21. Capital risk management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going
concern and operate Fruta del Norte and to maintain a flexible capital structure which optimizes the cost of capital
at an acceptable risk.

In the management of capital, the Company considers items included in shareholders’ equity and long-term debt.
The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions
and the risk characteristics of the Company’s assets. In order to maintain or adjust the capital structure, the
Company may choose to repay its debt facilities and/or attempt to issue new shares or debt instruments, acquire
or dispose of assets, or to bring in joint venture partners.

In order to facilitate the management of its capital requirements, the Company prepares annual budgets that are
updated as necessary depending on various factors, including successful capital deployment and general industry
conditions. The annual and updated budgets are approved by the Board of Directors.

===== SIDA 84 =====

22. Commitments

Significant capital expenditures contracted as at December 31, 2023 but not recognized as liabilities are as follows:

Capital
expenditures

2024 $ 15,016
2025 1,096
2026 -

Total $ 16,112

The Company’s sales are subject to a 5% net smelter royalty payable to the Government of Ecuador and a 1% net
revenue royalty payable to third parties.

===== SIDA 85 =====

Corporate Information

BOARD OF DIRECTORS
Jack Lundin, Chairman
Vancouver, Canada
Carmel Daniele
London, United Kingdom
Gillian Davidson
Edinburgh, United Kingdom
Ian Gibbs
Vancouver, Canada
Ashley Heppenstall
London, United Kingdom
Melissa Harmon
Denver, USA
Ron F. Hochstein
Vancouver, Canada
Scott Langley
Toronto, Canada
Angelina Mehta
Montreal, Canada

OFFICERS
Ron F. Hochstein
President & Chief Executive Officer
Christopher Kololian
Chief Financial Officer
Terry Smith
Chief Operating Officer
Chester See
Senior Vice President, Finance
Sheila Colman
Vice President, Legal and
Sustainability & Corporate Secretary
Andre Oliveira
Vice President, Exploration

OFFICES
CORPORATE HEAD OFFICE
Lundin Gold Inc.
885 West Georgia Street, Suite 2000
Vancouver, BC V6C 3E8
Telephone: 604-689-7842
Toll Free: 1-888-689-7842
Facsimile: 604-689-4250

REGIONAL HEAD OFFICE
Aurelian Ecuador S.A.,
a subsidiary of Lundin Gold Inc.
Av. Amazonas N37-29 y UNP Edificio
Eurocenter, Piso 5
Quito, Pichincha
Ecuador
Telephone: 593-2-299-6400

COMMUNITY OFFICE
Calle 1ro de Mayo y 12 de Febrero,
esquina
Los Encuentros, Zamora-Chinchipe,
Ecuador

STOCK EXCHANGE
LISTINGS
The Toronto Stock Exchange
Trading Symbol: LUG
Nasdaq Stockholm
Trading Symbol: LUG

SHARE REGISTRAR AND
TRANSFER AGENT
Computershare Investor Services Inc.
510 Burrard Street, 3rd Floor
Vancouver, BC V6C 3B9
Telephone: 1-800-564-6253

AUDITOR
PricewaterhouseCoopers LLP
250 Howe St, Suite700
Vancouver, BC V6C 3S7
Telephone: 604-806-7000

ADDITIONAL INFORMATION
Further information about Lundin Gold
is available by contacting:
Finlay Heppenstall
Director, Investor Relations
and Corporate
Development
Telephone: 604-806-3089
Toll Free: 1-888-689-7842
info@lundingold.com

Lundin Gold Ecuador

===== SIDA 86 =====

885 West Georgia Street, Suite 2000
Vancouver, British Columbia, V6C 3E8
Canada
Av. Amazonas N37-29 y UNP Edificio
Eurocenter, Piso 5
Quito, Pichincha, Ecuador

Telephone: 604-689-7842
Toll Free: 1-888-689-7842
Telephone: 593-2-299-6400

info@lundingold.com www.lundingold.com

@LundinGold @LundinGoldEC Lundin Gold

Lundin Gold

Lundin Gold Ecuador