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Lundin Mining Provides Update on Status of Credit Facility

18:52 EDT Thursday, May 28, 2009

TORONTO, ONTARIO--(Marketwire - May 28, 2009) - Lundin Mining Corporation ("Lundin Mining") (TSX:LUN)(OMX:LUMI) today announced that it is seeking to extend the waiver period for non-compliance with the tangible net worth covenant of the Company's credit facility for a period of 30 days. The existing waiver which was granted by the Company's lenders on February 25, 2009 expires on June 5, 2009.

Since the initial waiver was granted, a number of measures have been undertaken to improve the Company's financial position, including:

- An equity issuance resulting in net proceeds to the Company of $149.2 million,

- Debt repayment of $55 million, followed by a voluntary reduction in the amount of the credit facility to $225 million, and

- The completion of a copper hedging program, securing a healthy copper price for approximately half of the Company's copper production over the next twelve months.

The amount of the proposed restructured facility of $225 million represents less than 10% of the Company's shareholders' equity.

The additional extension period will ensure that the lenders have adequate time to review the Company's revised financial model reflecting these developments, as well as allowing adequate time for the finalization of terms and completion of documentation.

Phil Wright, President and CEO, commented, "Good progress has been made on the restructuring of the facility and we expect the thirty day extension should be sufficient to bring this to a satisfactory conclusion for both the Company and the lenders."

About Lundin Mining Corporation

Lundin Mining Corporation is a diversified base metals mining company with operations in Portugal, Spain, Sweden and Ireland, producing copper, nickel, lead and zinc. In addition, Lundin Mining holds a development project pipeline which includes expansion projects at its Zinkgruvan and Neves-Corvo mines along with its equity stake in the world class Tenke Fungurume copper/cobalt project in the Democratic Republic of Congo. The Company also holds an extensive exploration portfolio and interests in international mining and exploration ventures.

On behalf of the Board,

Phil Wright, President and CEO