Lundin Gold Inc. (TSX: LUG) has signed the Investment Protection Agreement ("IPA") for Fruta del Norte ("FDN" or "Project"), its flagship gold project in Ecuador. Together with the Exploitation Agreement ("EA") signed on December 14, 2016, and the issuance of the Environmental License at the end of October, the Company now has all the major agreements and permits with the Government of Ecuador for commencing the development of the Project.

Investment Protection Agreement

A government resolution dated July 4, 2016 authorized the execution of the IPA once the EA was signed. The terms and conditions of the IPA are unchanged from those announced in August.

The IPA provides further legal and tax stability to Lundin Gold in conjunction with the EA including, amongst other items, fixing the income tax rate applicable to the Company at 22% and exempting payments of principal and interest to financial institutions outside of Ecuador from the capital outflow tax. The execution of the IPA enhances the Company's ability to finance the development of FDN and gives the Company the right to any benefits that are granted pursuant to future investment protection agreements entered into by the Government of Ecuador with third parties for similar projects in the country.