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  Nov 15, 2004 - 01:00 ET
Lundin Mining Reaches Agreement in Principle to Sell Zinkgruvan Silver Production to Silver Wheaton

 
NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:  LUNDIN MINING CORPORATION

TSX SYMBOL:  LUN

NOVEMBER 15, 2004 - 01:00 ET

Lundin Mining Reaches Agreement in Principle to Sell 
Zinkgruvan Silver Production to Silver Wheaton

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 15, 2004) - Lundin 
Mining Corporation (TSX:LUN)(Nya Marknaden:LUMI) ("Lundin Mining" or the 
"Company") is pleased to announce that it has reached an agreement in 
principle with Chap Mercantile Inc. (to be re-named "Silver Wheaton") 
whereby Lundin Mining will sell all of its silver production from the 
Zinkgruvan mine in Sweden to Silver Wheaton in consideration for an 
upfront cash payment of US$50 million, 30 million Silver Wheaton shares, 
and 30 million whole share purchase warrants (worth in aggregate 
approximately US$80M), plus a per ounce payment at a price equal to the 
lesser of (a) US$3.90 (subject to a consumer price adjustment after 
three years) and (b) the then prevailing market price per ounce of 
silver as quoted on the London Bullion Market Association. Each warrant 
is exercisable at C$0.80 into one Silver Wheaton common share and 
expires on August 5, 2009.

Lundin Mining has agreed to deliver a minimum of 40 million ounces of 
silver to Silver Wheaton over a 25-year period. The Zinkgruvan zinc, 
lead and silver mine is expected to produce approximately 2 million 
ounces of silver per year in addition to 130 million pounds (59,000 
metric tonnes) of zinc and 70 million pounds (32,000 metric tonnes) of 
lead annually at low cash costs. If at the end of the 25-year period, 
Lundin Mining has not delivered the agreed 40 million ounces, then it 
has agreed to pay to Silver Wheaton US$1.00 per ounce of silver not 
delivered.

Lukas H. Lundin, Chairman of the Board of Lundin Mining, comments, "This 
is an excellent deal for the Company since we realize the value of the 
silver production at Zinkgruvan, while at the same time retaining all 
base metal exposure. The proceeds from this transaction will form the 
foundation for Lundin Mining's future growth plans."

Closing of the transaction is subject to execution of definitive 
agreements and receipt of all regulatory approvals and third-party 
consents, including acceptance by the Toronto Stock Exchange. It is 
expected that the closing of this transaction will occur by mid-December 
2004.

Macquarie is acting as financial advisor to Lundin Mining in connection 
with this transaction.

A conference call with respect to the above transaction has been 
scheduled for Monday, November 15, 2004 at 11:00 a.m. Toronto time 
(17:00 CET). Please call in 5 minutes before the conference starts and 
stay on the line (an operator will be available to assist you).

Call-in number for the conference call (North America): 1-334-420-4950

Call-in number for the conference call (Europe): +46 (0) 8 50 52 01 14

A replay of the telephone conference will be available approximately one 
hour after the completion of the conference and until November 19, 2004.

Replay number in Europe is: +46 (0)8 50 52 03 33 and in North America: 
1-954-334-0342. To access the recording, please enter access code 632016.

A recording of the conference will also be available for download at 
www.lundinmining.com approximately one hour after the conference has 
ended.

Lundin Mining is a Canadian mining and exploration company with a 
primary focus in Scandinavia. The main asset of the company is the 
Zinkgruvan mine, located about 200 kilometers southwest of Stockholm, 
Sweden. The mine has been producing zinc, lead and silver on a 
continuous basis since 1857. Zinkgruvan has consistently ranked in the 
lowest cost quartile among zinc mines in the world. Lundin Mining holds 
approximately 37 percent of the shares of NAN, a mining and exploration 
company listed on the Stockholm Stock Exchange under the ticker symbol 
NAN. NAN's primary asset is the Storliden copper and zinc mine in the 
Skellefte District of northern Sweden, which has been in production 
since 2001. Lundin Mining also holds a large copper/gold exploration 
project in the prolific Norrbotten Mining District in northern Sweden.

ON BEHALF OF THE BOARD

Edward F. Posey, President

This News Release contains forward looking statements which are subject 
to a variety of risks and uncertainties which could cause actual events 
or results to differ materially from those reflected in the forward 
looking statements. The Company does not intend to update this 
information and disclaims any legal liability to the contrary.

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FOR FURTHER INFORMATION PLEASE CONTACT:

Lundin Mining Corporation
Sophia Shane
Head of Corporate Communications
(604) 689-7842
(604) 689-4250 (FAX)

or

Lundin Mining Corporation
Robert Eriksson
Investor Relations - Europe
+468-545-07470
Website: www.lundinmining.com