FULLTEXT DEL 2 AV 2

Kvartalsrapport Q4 2024

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.
 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.
 Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the Company as a basis for forming an opinion on
the consolidated financial statements. We are responsible for the direction, supervision and review of
the audit work performed for purposes 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.

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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 20, 2025

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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 2024 2023

ASSETS

Current assets
Cash and cash equivalents 20 $ 349,200 $ 268,025
Trade receivables and other current assets 4 233,555 163,456
Inventories 5 88,210 89,406
Advance royalty 3,494 13,000
674,459 533,887
Non-current assets
VAT recoverable 4 24,287 51,904
Advance royalty - 3,494
Property, plant and equipment 6 695,703 718,896
Mineral properties 7 133,032 160,028

$ 1,527,481 $ 1,468,209
LIABILITIES

Current liabilities
Accounts payable and accrued liabilities 8 $ 109,947 $ 74,824
Income taxes payable 19 96,843 48,488
Other current liabilities 12 8,725 -
Current portion of long-term debt 9 - 63,716
215,515 187,028

Non-current liabilities
Other non-current liabilities 12 3,457 -
Long-term debt 9 - 241,931
Reclamation provisions 10 7,866 8,722
Deferred income tax liabilities 19 84,344 74,722

311,182 512,403

EQUITY
Share capital 11 1,035,399 1,008,932
Equity-settled share-based payment reserve 12 9,059 14,535
Accumulated other comprehensive income (loss) (40,747) 1,955
Retained earnings (deficit) 212,588 (69,616)
1,216,299 955,806
$ 1,527,481 $ 1,468,209

Commitments (Note 24)

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 2024 2023

Revenues 13 $ 1,193,050 $ 902,518

Cost of goods sold
Operating expenses 14 283,527 278,802
Royalty expenses 69,158 51,934
Depletion and depreciation 136,979 136,602

489,664 467,338

Income from mining operations 703,386 435,180

Other expenses
Exploration 15 41,168 23,720
Corporate administration 16 34,531 21,032
Finance expense 17 266,542 85,269
Finance income (16,289) (12,964)
Other expense (income) (12,946) 1,016
Derivative loss (gain) 9 (243,737) 32,069

69,269 150,142

Net income before tax 634,117 285,038

Income tax expense
Current income tax expense 19 192,107 76,934
Deferred income tax expense 19 15,960 28,647
208,067 105,581

Net income for the year $ 426,050 $ 179,457

OTHER COMPREHENSIVE INCOME (LOSS)

Items that will not be reclassified to net income
Currency translation adjustment (11,984) 1,299
Derivative loss related to the Company’s own credit risk 9 (37,332) (3,241)
Deferred income tax on accumulated other comprehensive
income

6,339

552
Other 275 733

Comprehensive income for the year $ 383,348 $ 178,800

Income per common share
Basic 11 $ 1.78 $ 0.76
Diluted 11 1.76 0.75

Weighted-average number of common shares outstanding
Basic 239,312,029 237,026,367
Diluted 241,426,325 239,151,461

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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 Retained
common Share payment Other earnings
Note shares capital reserve reserves (deficit) Total

Balance, January 1, 2023 235,646,977 989,772 13,856 2,612 (154,159) 852,081

Exercise of stock options 1,156,552 6,930 (2,394) - - 4,536
Vesting of share units 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

Exercise of stock options 1,454,753 12,424 (3,425) - - 8,999
Vesting of share units 75,757 901 (3,025) - - (2,124)
Exercise of anti-dilution rights 11 804,340 13,142 - - - 13,142
Stock-based compensation 12 - - 4,280 - - 4,280
Reclassification of share units 12 - - (3,306) - - (3,306)
Other comprehensive loss - - - (42,702) - (42,702)
Net income for the year - - - - 426,050 426,050
Dividends paid - - - - (143,846) (143,846)

Balance, December 31, 2024 240,194,898 $ 1,035,399 $ 9,059 $ (40,747) $ 212,588 $ 1,216,299

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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 2024 2023

OPERATING ACTIVITIES

Net income for the year $ 426,050 $ 179,457
Items not affecting cash:
Depletion and depreciation 137,003 136,633
Stock-based compensation 12 15,734 4,468
Derivative loss (gain) (243,737) 32,069
Other expense (income) (10,917) 2,080
Finance expense 250,253 72,119
Deferred income tax expense 15,960 28,647

590,346 455,473
Changes in non-cash working capital items:
Trade receivables and other current assets (32,059) 9,391
Inventories 2,419 133
Advance royalty 13,000 13,000
Accounts payable and accrued liabilities 27,999 2,436
Income taxes payable 48,355 27,043
Other non-current liabilities - (1,045)
Interest received 16,289 12,964
Share units settled in cash 12 (3,959) -

Net cash provided by operating activities 662,390 519,395

FINANCING ACTIVITIES

Repayments of long-term debt 9 (101,106) (278,030)
Interest paid 9 (3,688) (19,843)
Finance charge paid 9 (260,990) (182,596)
Proceeds from exercise of stock options 8,999 4,536
Proceeds from exercise of anti-dilution rights 11 13,142 9,617
Dividends paid (143,846) (94,914)

Net cash used for financing activities (487,489) (561,230)

INVESTING ACTIVITIES

Acquisition and development of property, plant and equipment (82,398) (48,235)
VAT paid on investing activities (11,106) (5,248)

Net cash used for investing activities (93,504) (53,483)

Effect of foreign exchange rate differences on cash (222) (57)

Net increase (decrease) in cash and cash equivalents 81,175 (95,375)

Cash and cash equivalents, beginning of year 268,025 363,400

Cash and cash equivalents, end of year $ 349,200 $ 268,025

Supplemental cash information (Note 20)

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LUNDIN GOLD INC.
Notes to the consolidated financial statements as at December 31, 2024
(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 2800, 1055 Dunsmuir Street, Vancouver, BC, and it has an office
in Quito, Ecuador.

2. Basis of preparation

These consolidated financial statements, including comparatives, have been prepared in accordance 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 20, 2025.

The following entities are included in these consolidated financial statements:

Ordinary shares held
Country of December 31, December 31,
incorporation 2024 2023

Aurelian Resources Inc. Canada 100% 100%
Aurelian Resources Corporation Ltd. Canada 100% 100%
Aurelian Exploration Inc. Canada 100% 100%
Aurelian Menor Inc. Canada - 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%
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. During the year ended December 31, 2024, the Company simplified its corporate structure
resulting in the wind-up of Aurelian Menor Inc. and SurNorte Holdings II Pte. Ltd.

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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 is exposed, or has rights, to variable returns
from its involvement with the investee and has the ability to affect those returns through its power over the
investee. The financial information of subsidiaries is 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.

Effective January 1, 2025, the functional currency of Lundin Gold Inc. and certain other entities was changed
from CAD to U.S. dollars in order to reflect its financing structure. The change in functional currency of these
entities are not expected to have a material impact on the consolidated financial statements.

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.

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3. Summary of material accounting policies (continued)

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:

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 pricing. 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.

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, 2024, 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 which outline the
requirements that will be carried out to meet the obligations. The provision for decommissioning 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 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 where 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.

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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 amortization 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 future 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.

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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 discharge 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 62 =====

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 and non-employees are measured on the grant date.
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 common 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 presented based on the location where the sale originated and 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. The sales price is fixed on the date of sale based on the spot price.

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

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

Amendments to IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial
Instruments

In May 2024, the IASB issued targeted amendments to IFRS 9 and IFRS 7 to respond to recent questions
arising in practice, and to include new requirements not only for financial institutions but also for corporate
entities. These amendments:
 clarify the date of recognition and derecognition of some financial assets and liabilities, with a new
exception for some financial liabilities settled through an electronic cash transfer system;
 clarify and add further guidance for assessing whether a financial asset meets the solely payments
of principal and interest (SPPI) criterion;
 add new disclosures for certain instruments with contractual terms that can change cash flows (such
as some financial instruments with features linked to the achievement of environment, social and
governance targets); and
 update the disclosures for equity instruments designated at FVOCI.

The amendments are effective for annual periods beginning on or after January 1, 2026 with early application
permitted. The Company is currently assessing the effect of these amendments on our financial statements.

IFRS 18 – Presentation and Disclosure in Financial Statements

In April 2024, the IASB issued IFRS 18, Presentation and Disclosure of Financial Statements (IFRS 18), which
replaces IAS 1, Presentation of Financial Statements. IFRS 18 introduces a specified structure for the income
statement by requiring income and expenses to be presented into the three defined categories of operating,
investing and financing, and by specifying certain defined totals and subtotals. Where company-specific
measures related to the income statement are provided, IFRS 18 requires companies to disclose explanations
around these measures, which are referred to as management-defined performance measures. IFRS 18 also
provides additional guidance on principles of aggregation and disaggregation which apply to the primary
financial statements and the notes. IFRS 18 will not affect the recognition and measurement of items in the
financial statements, nor will it affect which items are classified in other comprehensive income and how these
items are classified.

The standard is effective for reporting periods beginning on or after January 1, 2027, including for interim
financial statements. Retrospective application is required and early application is permitted. The Company
is currently assessing the effect of this new standard on our financial statements.

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

4. Trade receivables and other current assets

December 31, December 31,
2024 2023

Trade receivables (a) $ 155,948 $ 93,036
VAT recoverable (b) 58,028 23,409
Prepaid expenses and others (c) 19,579 47,011

$ 233,555 $ 163,456

(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 in full 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, 2024, 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 $5.1 million in trade receivables as of December 31, 2024 (December
31, 2023 - $7.8 million).

(b) Subject to submission of VAT claims and their acceptance by the applicable tax authorities, VAT paid in
Ecuador by the Company is being refunded or applied as a credit against 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 based on the Company’s assessment of the estimated time for processing VAT claims during
the next twelve months.

(c) As at December 31, 2023, prepaid expenses and other included $27.4 million of credit notes issued by the
tax authorities in Ecuador relating to approved VAT claims. During the year ended December 31, 2024,
these credit notes were fully utilized to offset taxes payable including statutory tax withholdings from
payments to vendors and the newly instituted monthly income tax instalment payments in Ecuador.

5. Inventories

December 31, December 31,
2024 2023

Ore stockpile $ 8,254 $ 6,922
Gold in circuit 8,546 7,849
Doré and concentrate 18,687 17,868
Materials and supplies 52,723 56,767

$ 88,210 $ 89,406

As at December 31, 2024, the Company maintained a provision of $4.0 million (December 31, 2023 - $7.0 million)
associated with obsolete or slow-moving materials & supplies inventory.

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

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,
2023 $ - $ 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

Additions 38,363 47,629 1,086 423 2,730 90,231
Disposals and other - - (1,465) (1,561) - (3,026)
Reclassifications (6,128) 6,128 - - - -
Cumulative translation
adjustment - (1,057) - - (12) (1,069)

Balance, December
31, 2024 $ 39,244 $ 1,039,441 $ 49,212 $ 23,302 $ 5,261 $ 1,156,460

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

Balance, January 1,
2023 $ - $ 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

Depletion and
depreciation - 102,883 6,530 1,884 831 112,128
Disposals and other - - (866) (1,561) - (2,427)
Cumulative translation
adjustment - (371) - - (1) (372)

Balance, December
31, 2024 $ - $ 409,408 $ 30,333 $ 19,906 $ 1,110 $ 460,757

Net book value

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

As at December 31,
2024 $ 39,244 $ 630,033 $ 18,879 $ 3,396 $ 4,151 $ 695,703

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

7. Mineral properties

Cost Fruta del Norte

Balance, January 1, 2023 $ 183,507

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

Balance, December 31, 2023 160,028

Adjustments to restoration asset (1,677)
Depletion (25,319)

Balance, December 31, 2024 $ 133,032

8. Accounts payable and accrued liabilities

December 31, December 31,
2024 2023

Accounts payable $ 18,261 $ 16,750
Accrued liabilities 52,051 38,792
Accrued profit sharing to employees and royalties 39,635 19,282

$ 109,947 $ 74,824

9. Long-term debt

December 31, December 31,
2024 2023

Stream loan credit facility $ - $ 276,183
Offtake derivative liability - 29,464

$ - $ 305,647

Less: current portion
Stream loan credit facility - 59,568
Offtake derivative liability - 4,148

Long-term portion $ - $ 241,931

The stream loan credit facility (the “Stream Facility”) and the offtake derivative liability (the “Offtake”) were
accounted for as financial liabilities at fair value through profit or loss until the closing of their buy out on June 27,
2024 (the “Closing Date”). The total buy out price of $330 million was comprised of the remaining unamortized
principal balance of $94.4 million and finance expense of $235.6 million. The derivative adjustments in the
Company’s 2024 consolidated statements of income and comprehensive income reflect the reversal of
accumulated derivative adjustments recorded on the Stream Facility since its inception in 2017.

Until the Closing Date, the Company made scheduled monthly payments under the Stream Facility totaling $35.8
million (2023 – $79.9 million) of which $6.7 million (2024 – $17.5 million) was paid on account of principal; $3.7
million (2023 – $8.3 million) for accrued interest; and the remaining $25.4 million (2024 – $54.1 million) as a
finance expense. Following the buy out of the Stream Facility, the remaining balance of deferred transaction
costs were recognized within finance expense.

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

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, 2024, the Company applied a pre-tax discount rate of 9.7% (2023 – 9.4%) and an inflation rate
of 1.3% (2023 – 1.4%). The estimated total future liability for reclamation and remediation costs on an
undiscounted basis and adjusted for an estimate of future inflation is approximately $30.7 million (2023 – $30.2
million).

December 31, December 31,
2024 2023

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

Change in discount rate, amount, and timing of cash flows (1,677) 1,004
Accretion of liability component of obligations 821 669

Balance, end of year $ 7,866 $ 8,722

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, 2024, the Company issued 804,340 common shares to Newmont
Corporation (“Newmont”), indirectly through its subsidiary Newcrest Canada Inc. (“Newcrest”), at a weighted
average price of CAD$22.40 per share for total proceeds of $13.1 million. During the year ended December 31,
2023, 800,840 common shares were issued to Newcrest at a weighted average price of CAD$16.37 per share for
total proceeds of $9.6 million. These issuances were completed in accordance with anti-dilution rights granted
from an initial investment into the Company by Newcrest, which was subsequently acquired by Newmont.

Income per common share

December 31, December 31,
2024 2023

Net income $ 426,050 $ 179,457

Basic weighted average number of common shares outstanding 239,312,029 237,026,367
Dilutive stock options 1,414,639 1,461,520
Dilutive share units 699,657 663,574
Diluted weighted average number of common shares outstanding 241,426,325 239,151,461

Income per common share:
Basic $ 1.78 $ 0.76
Diluted 1.76 0.75

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

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 discretion 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. These additional share units are subject to the
same terms and conditions as the underlying share units.

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, 2024, 350,900 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, 2024 December 31, 2023
Weighted
average
Weighted
average
Number of exercise price Number of exercise price
stock options (CAD) stock options (CAD)

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

Granted 350,900 16.07 530,600 14.13
Forfeited (112,167) 16.02 (17,002) 10.00
Exercised(1) (1,454,753) 8.40 (1,156,552) 5.28

Balance outstanding, end of period 2,378,949 $ 11.87 3,594,969 $ 10.18
Balance exercisable, end of period 1,523,442 $ 10.99 2,299,121 $ 9.30
(1) The weighted average share price on the exercise date for the stock options exercised during the year ended December
31, 2024 was CAD$19.65 (2023 - CAD$16.11).
(2) No stock options granted under the Option Plan were outstanding as at December 31, 2024 (2023 – 801,300 stock
options).

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

12. Stock-based compensation (continued)

The following table summarizes information concerning outstanding options at December 31, 2024:

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

$ 9.79 to 10.72 1,254,889 1.68 $ 10.08
$ 10.73 to 13.87 459,160 0.77 12.43
$ 13.88 to 29.54 664,900 3.60 14.86

2,378,949 2.04 $ 11.87

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, 2024 December 31, 2023

Risk-free interest rate 3.16% 3.17%
Expected stock price volatility 33.29% 38.43%
Expected life 3.7 years 5 years
Expected dividends (CAD) $0.55 $0.26

Weighted-average fair value per option granted (CAD) $3.77 $4.57

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, 2024, the Company recorded stock-based compensation expense of
$1.2 million (2023 – $1.8 million) related to options.

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

12. Stock-based compensation (continued)

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

Settlement at
Unitholder’s
Option
Settlement at
Board’s Option

Settlement at
Unitholder’s
Option
Settlement at
Board’s Option Deferred
share units

Balance at January 1, 2023 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
Forfeited - - (5,752) (24,652) -
Settled (152,052) - (19,518) (101,646) (30,825)

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

Granted - 240,871 - 132,180 30,934
Granted – Dividend Equivalent - 16,564 - 6,126 1,194
Forfeited - (56,876) - (15,823) -
Settled - (266,949) - (122,704) -

Balance at December 31, 2024 - 496,462 - 174,980 45,595

Restricted share units with performance criteria (“PSUs”)

During the year ended December 31, 2024, the Company granted 240,871 PSUs that are settled in shares.
In addition, in connection with dividends paid during the year ended December 31, 2024, 16,564 PSUs were
granted as Dividend Equivalents. During the year ended December 31, 2023, the Company granted 167,300
PSUs as well as 18,300 PSUs as Dividend Equivalents.

All PSUs that are settled in cash or common shares, at the unitholder’s option, were settled through a
combination of payment of cash or issuance of shares during the year ended December 31, 2023. PSUs that
are settled in shares that vested during the year ended December 31, 2024 were settled in cash as determined
by the Company’s board of directors resulting in additional stock-based compensation of $1.6 million.

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 PSUs that vest are 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 PSU entitles the
recipient to a payment of one common share or cash at the discretion of the Company’s board of directors.

In accordance with the Omnibus Plan and subject to the continued discretion of the Company’s board of
directors, PSUs are expected to generally settle in cash in future periods. As a result, outstanding PSUs have
been reclassified as financial liabilities measured at fair value as at December 31, 2024.

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

12. Stock-based compensation (continued)

Using Monte Carlo simulation, the fair value of PSUs was measured as at the December 31, 2024 and on the
date of grant during the year ended December 31, 2023 with the following weighted-average assumptions:

December 31,
2024
December 31,
2023

Risk-free interest rate 2.75% 4.22%
Average expected volatility of the Company
and its peer group

37.66%

45.64%
Expected life 1 year 3 years
Expected dividends (CAD) $1.13 $0.26I

Weighted-average fair value per unit (CAD) $32.09 $12.38

The fair value of PSUs measured at grant date are being amortized over the period during which the
employees become unconditionally entitled to the PSUs. During the year ended December 31, 2024,
excluding PSUs that were settled in cash, the Company recorded stock-based compensation expense of
$10.1 million (2023 – $1.4 million) relating to PSUs.

Restricted share units without performance criteria (“RSUs”)

During the year ended December 31, 2024, the Company granted 132,180 RSUs that are settled in shares.
In addition, in connection with dividends paid during year ended December 31, 2024, 6,126 RSUs were
granted as Dividend Equivalents. During the year ended December 31, 2023, the Company granted 134,884
RSUs as well as 5,744 RSUs as Dividend Equivalents.

All RSUs that are settled in cash or common shares, at the unitholder’s option, were settled through a payment
of cash during the year ended December 31, 2023. RSUs that vested during the year ended December 31,
2024 were settled through a combination of payment of cash or issuance of shares as determined by the
Company’s board of directors. This resulted in additional stock-based compensation of $0.2 million.

RSUs are granted to eligible employees and vest one to three years from date of grant subject to continued
employment. Each vested RSU entitles the recipient to a payment of one common share or cash at the
discretion of the Company’s board of directors.

In accordance with the Omnibus Plan and subject to the continued discretion of the Company’s board of
directors, RSUs issued to employees are expected to generally settle in cash in future periods. As a result,
these RSUs have been reclassified as financial liabilities measured at fair value as at December 31, 2024.

The fair value of RSUs was measured using the 5-day volume weighted average share price as at December
31, 2024 and using the Black-Scholes option pricing model on the date of grant during the year ended
December 31, 2023 with the following weighted-average assumptions:

December 31,
2024
December 31,
2023

Risk-free interest rate 2.91% 3.88%
Expected stock price volatility 41.60% 39.36%
Expected life 2 years 2 years
Expected dividends (CAD) $1.13 $0.26

Weighted-average fair value per unit (CAD) $31.09 $17.33

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

12. Stock-based compensation (continued)

The fair value of RSUs measured at grant date are being amortized over the period during which the
employees become unconditionally entitled to the RSUs. During the year ended December 31, 2024,
excluding RSUs that were settled in cash, the Company recorded stock-based compensation expense of $2.1
million (2023 – $1.1 million) relating to RSUs.

Deferred share units (“DSUs”)

During the year ended December 31, 2024 and year ended December 31, 2023, the Company granted 30,934
DSUs and 9,007 DSUs, respectively, to non-employee directors. In addition, in connection with dividends
paid by the Company during the year ended December 31, 2024, 1,194 DSUs were granted as Dividend
Equivalents (2023 - 607 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, 2024, the Company recorded stock-based compensation expense of
$0.5 million (2023 – $0.2 million) relating to DSUs.

13. Revenues

December 31,
2024
December 31,
2023

Doré sales (1) $ 423,550 $ 324,792
Concentrate sales 772,200 576,026
Gain (loss) on provisionally priced trade
receivables
(2,700) 1,700

$ 1,193,050 $ 902,518

(1) During the year ended December 31, 2024, $177.9 million (2023 - $324.8 million) of doré sales were sold under the Offtake
to Newmont until the Closing Date of the Stream Facility and Offtake buy out.

14. Operating expenses

December 31,
2024
December 31,
2023

Direct production costs $ 244,373 $ 242,412
Transportation 21,372 25,617
Direct sales costs, including employee portion of profit sharing 19,408 9,571
Change in inventories (1,626) 1,201

$ 283,527 $ 278,802

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

15. Exploration

December 31,
2024
December 31,
2023

Catering and camp expenses $ 2,891 $ 842
Concessions and land 699 492
Development 1,954 -
Drilling 17,667 11,336
Environmental 1,477 1,116
Geophysics 2,006 159
Salaries and benefits 6,204 4,667
Sampling and supplies 7,027 4,146
Others 1,243 962

$ 41,168 $ 23,720

16. Administration

December 31,
2024
December 31,
2023

Corporate social responsibility $ 2,119 $ 2,260
Investor relations 285 386
Office and general 3,896 3,243
Professional fees 2,284 2,130
Regulatory and transfer agent 469 433
Salaries and benefits 6,739 7,409
Special government levy (a) 1,913 -
Stock-based compensation 15,734 4,468
Travel 1,092 703

$ 34,531 $ 21,032

(a) In March 2024, the Government of Ecuador introduced a special one-time temporary security contribution to
strengthen security amid rising violence in the country. Half of this contribution was paid during 2024 while the
other half will be paid in 2025.

17. Finance expense

December 31,
2024
December 31,
2023

Interest expense $ 3,693 $ 17,746
Finance charge 25,415 54,097
Finance expense on buy out of stream and offtake (Note 9) 235,575 -
Other finance costs - 2,429
Accretion of transaction costs 1,859 10,997

$ 266,542 $ 85,269

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

18. Related party transactions

i. Key management compensation

Key management includes executive officers and directors of the Company. The compensation paid or
payable to key management for employee services, including amounts paid to certain executive officers
following the end of their employment, during the year ended December 31 is shown below.

December 31, December 31,
2024 2023

Salaries, bonuses and benefits $ 5,226 $ 6,611
Stock-based compensation 4,076 3,471

$ 9,302 $ 10,082

ii. Other related party transactions

During the year ended December 31, 2024, the Company incurred $1.3 million (2023 – $1.0 million), primarily
relating to office rental, renovation costs, and related services provided by a company associated with a
director of the Company. In addition, the Company entered into transactions with its largest shareholder,
Newmont, during the year ended December 31, 2024 as disclosed in Note 9, Note 11, and Note 13.

19. 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 rate 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:

December 31,
2024 2023

Net income before tax $ 634,117 $ 285,038

Canadian federal and provincial income tax rates 27.00% 27.00%

Expected income tax expense based on the above rates 171,212 76,960

Increase (decrease) due to:
Differences in foreign tax rates (4,731) 12,954
Non-deductible costs 7,130 5,889
Losses and temporary differences for which an income tax asset has
not been recognized

3,951

4,087
Non-taxable portion of capital gains (1,176) (235)
Withholding taxes (current and deferred) 31,681 5,926

Income tax expense $ 208,067 $ 105,581

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

19. Income taxes (continued)

(b) Deferred income taxes

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

December 31,
2024 2023

Inventories $ 3,697 $ 2,383
Mineral properties and property, plant and equipment 137,070 115,599
Long-term debt (65,018) (45,408)
Trade receivables and other current assets (10,475) (3,209)
Accounts payable and accrued liabilities (2,430) (3,143)
Other 21,500 8,500

$ 84,344 $ 74,722

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

December 31,
2024 2023

Non-capital losses - Canada $ 24,205 $ 28,864
Net-capital losses - Canada 5,192 7,910
Mineral properties and property, plant and equipment 66,866 55,617
Share issuance costs - 207
Other 13,045 8,722

$ 109,308 $ 101,320

As at December 31, 2024, the Company has the following tax losses which may be used to reduce future
taxable income:

Year of expiry Canada

2025 $ -
2026 -
2027 -
2028 -
2029 and onwards 24,205

Total $ 24,205

Effective January 1, 2025, the Company will be within the scope of OECD Pillar Two model rules. Pillar Two
legislation was enacted in Canada effective January 1, 2024 and Singapore effective January 1, 2025. Under
the legislation, the Company is liable to pay a top-up tax for the difference between the GloBE effective tax
rate for each jurisdiction and the 15% minimum rate. The Company expects its effective tax rate in all
jurisdictions to exceed 15% and therefore, does not expect any material impact from exposure to Pillar Two
legislation.

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

20. Supplemental cash information

Cash and cash equivalents are comprised of the following:

December 31, December 31,
2024 2023

Cash $ 224,783 $ 70,670
Short-term investments 124,417 197,355

$ 349,200 $ 268,025

Other supplemental cash information:

December 31, December 31,
2024 2023

Income taxes paid (1) $ 136,913 $ 53,026

Change in accounts payable and accrued
liabilities related to:

Acquisition of property, plant and equipment 7,833 929

(1) 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.

21. 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 performance. 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 where all revenues
originate. 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 77 =====

21. 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):

Fruta del
Norte
Exploration
activities
Corporate
and other Total

As at December 31, 2024

Current assets $ 446,585 $ 166 $ 227,708 $ 674,459
Non-current assets 852,348 78 596 853,022

Total assets 1,298,933 244 228,304 1,527,481

Current liabilities 204,667 1,478 9,370 215,515
Non-current liabilities 70,710 - 24,957 95,667

Total liabilities 275,377 1,478 34,327 311,182

For the year ended December 31, 2024

Revenues 1,193,050 - - 1,193,050
Operating expenses (283,527) - - (283,527)
Royalty expenses (69,158) - - (69,158)
Depletion and depreciation (136,979) - - (136,979)

Income from mining operations 703,386 - - 703,386

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
Operating expenses (278,802) - - (278,802)
Royalty expenses (51,934) - - (51,934)
Depletion and depreciation (136,602) - - (136,602)

Income from mining operations 435,180 - - 435,180

The Company generated 69% of its revenue from four major customers during the year ended December 31, 2024
(2023 – 77% from three major customers). However, the Company is not economically dependent on these customers
as gold and silver can be sold to and through numerous banks and commodity market traders worldwide.

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

22. Financial instruments and risk management

(a) Fair value of financial instruments

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. Further, provisionally priced trade
receivables of $156.0 million (December 31, 2023 - $93.0 million) are measured at fair value using quoted
forward market prices (Fair value hierarchy level 2).

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.

(b) 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. 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 $3.7 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.

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 seeks to minimize its credit risk by entering into transactions with
investment grade creditworthy 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.

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

22. Financial instruments and risk management (continued)

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 always meet its operational needs. In addition, management is actively involved in the
review, planning and approval of significant expenditures and commitments.

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 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 $8.9 million.

23. 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 while continuing to provide a return to shareholders through dividends.

In the management of capital, the Company considers items included in shareholders’ equity. 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 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.

24. Commitments

Significant capital and other expenditures contracted as at December 31, 2024 but not recognized as liabilities are
as follows:

Capital
expenditures

Other

2025 $ 17,459 $ 509
2026 - 509
2027 onward - 6,189

Total $ 17,459 $ 7,207

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 80 =====

Corporate Information

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

OFFICERS
Ron F. Hochstein
President & Chief Executive Officer
Chester See Chief Financial Officer Terry Smith Chief Operating Officer Sheila Colman
Vice President, Legal and Sustainability & Corporate Secretary
Andre Oliveira Vice President, Exploration Brendan Creaney Vice President, Corporate Development and Investor Relations
OFFICES CORPORATE HEAD OFFICE
Lundin Gold Inc.
Four Bentall Centre
1055 Dunsmuir Street, Suite 2800
Vancouver, BC V7X 1L2
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, Suite 700
Vancouver, BC V6C 3S7
Telephone: 604-806-7000

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

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

Four Bentall Centre
1055 Dunsmuir Street, Suite 2800
Vancouver, BC V7X 1L2
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