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  Jan 21, 2005 - 09:00 ET
Lundin Mining Makes a Public Offer for North Atlantic Natural Resources

 
NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:  LUNDIN MINING CORPORATION

TSX SYMBOL:  LUN

JANUARY 21, 2005 - 09:00 ET

Lundin Mining Makes a Public Offer for North Atlantic 
Natural Resources

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 21, 2005) - Lundin 
Mining Corporation (TSX:LUN) (Stockholmsborsen:LUMI)

Not for release, publication or distribution in or into Australia, Japan 
or the United States. The Offer is not aimed at persons whose 
participation requires further prospectuses, registration measures or 
similar measures other than those that follow Swedish law and therefore 
is not being made to persons in any such jurisdictions including 
Australia, Canada, Japan or the United States.

Lundin Mining Corporation ("Lundin Mining" or the "Company") is pleased 
to announce a public offer for all outstanding shares in North Atlantic 
Natural Resources AB (publ) ("NAN").

- On December 30, 2004, Lundin Mining acquired 11,537,000 shares in NAN 
from Boliden Mineral AB ("Boliden"), corresponding to 36.9 percent of 
the shares and votes. The consideration amounted to 2,176,800 newly 
issued shares in Lundin Mining.

- Following the acquisition of Boliden's shares, Lundin Mining holds a 
total of 23,117,000 shares in NAN, corresponding to 74.0 percent of 
shares and votes.

- To acquire all outstanding shares in NAN, one newly issued Lundin 
Mining share is offered for each 5,3 shares of NAN (the "Share 
alternative"), on similar terms as for the acquisition of NAN shares 
from Boliden.

- In accordance with the Swedish Industry and Commerce Stock Exchange 
Committee's (Naringslivets Borskommitte (NBK)) rules on mandatory 
offers, a cash compensation alternative of SEK 10.75 per share of NAN is 
also offered (the "Cash alternative").

A brief description of NAN's key assets

The main asset of NAN is the Storliden copper/zinc mine in the Skellefte 
mining district in Vasterbotten. The Storliden mine was discovered in 
1998 and put in production in 2002. During 2003, more than 333,000 
tonnes of ore from Storliden was treated at the mill in the town of 
Boliden some 90 kilometres from the mine. On average, the ore from 
Storliden is grading 9.8 percent zinc and 3.5 percent copper as well as 
0.3 grams per tonne gold and 25.4 grams per tonne silver. As of January 
1, 2004, the Proved and Probable Ore Reserves at the Storliden mine were 
1,108,000 tonnes.

The Storliden deposit has been developed pursuant to a joint venture 
agreement between NAN and Boliden whereby Boliden, among other things, 
is acting as main contractor and operator. Pursuant to the acquisition 
agreement, under which Lundin Mining acquired Boliden's shares in NAN, 
Boliden has guaranteed the availability of the Boliden 
mill/concentrator, throughout the life of the Storliden mine. In 
addition, Boliden's right of first refusal to acquire any base metal 
deposit found by NAN was terminated.

In addition to Storliden, NAN holds exploration permits covering several 
areas in and around the Skellefte mining district. During the fall of 
2004, NAN initiated an exploration programme focusing on several 
prospective targets. Drilling in the immediate area surrounding the 
Storliden mine is aimed at extending the life of the mine. Immediately 
south of the Skellefte mining district is the Lappvattnet copper-nickel 
prospect within a prolific mineralized area known as the "Nickel Belt". 
A further area being explored during the coming months is Copperstone, a 
copper project in the northern part of the Skellefte district.

Background and reasons

On December 30, 2004, Lundin Mining acquired 11,537,000 shares in NAN 
from Boliden, bringing Lundin Mining's total holding of NAN shares to 
23,117,000, corresponding to 74.0 percent of shares and votes. The 
acquisition resulted in Lundin Mining becoming subject to the rules for 
mandatory offers.

The acquisition of Boliden's shares, in combination with this public 
offer for all outstanding shares of NAN (the Share alternative and the 
Cash alternative together referred to as the "Offer") reflect the view 
of the board of directors of Lundin Mining that the two companies joined 
together would form a leading mid-tier base metals producer in Europe, 
with a strong and well balanced portfolio of high-quality, low cost 
mining operations and exploration assets in highly prospective areas.

The incorporation of NAN into Lundin Mining, will result in a company 
with strong cash flow from operations (the Zinkgruvan mine and the 
Storliden mine) facilitating continued aggressive exploration in and 
around the Skellefte district, the Bergslagen district and the 
Norrbotten mining district of northern Sweden, as well as in other 
potential areas of interest.

Lundin Mining has a very strong cash position, partly as a result of the 
agreement with Silver Wheaton which closed on December 8, 2004. The 
agreement calls for Silver Wheaton to buy 40 million ounces of silver 
from Zinkgruvan over a period of 25 years for a total consideration of 
USD 80 million + USD 3.90/oz silver.

Through the Offer the present shareholders of NAN will be given the 
opportunity for continued exposure to NAN's exploration assets, while 
benefiting from Lundin Mining's world class mining asset (the Zinkgruvan 
mine), several additional exploration assets and strong cash flow from 
operations. With a strong cash position and having no long term debt, 
Lundin Mining is in the process of evaluating further major acquisitions.

The acquisition of NAN will bring a proven exploration team and a team 
of experienced mining employees together in Lundin Mining. The combined 
team will be able to continue the previously successful exploration and 
development efforts of both NAN and Lundin Mining in the financially 
strong and growth-oriented Lundin Mining.

It is the opinion of the Board of Directors of Lundin Mining that the 
combination of the two companies will further strengthen the shareholder 
base of Lundin Mining, thus offering the shareholders of NAN to become 
shareholders in a larger entity with better stock market liquidity.

The Offer

The Board of Directors of Lundin Mining decided to make a public offer 
today to the shareholders of NAN to acquire all outstanding shares in 
NAN. Lundin Mining currently holds 23,117,000 shares, corresponding to 
74.0 percent of the shares and votes.

For all outstanding shares in NAN, Lundin Mining offers either one (1) 
newly issued share in Lundin Mining for every 5.3 shares in NAN, or SEK 
10.75 per NAN share. The Cash alternative is based on the last price 
paid for Lundin Mining's Swedish Depository Receipts ("SDR") of SEK 
57.00 prior to the trading halt on December 30, 2004.

Consideration in shares will be delivered in the form of SDRs, listed on 
the O-list at Stockholmsborsen. Each SDR represents one share in Lundin 
Mining.

Fractions of shares in Lundin Mining will not be issued. To the extent 
shareholders in NAN are entitled to fractions of shares, these fractions 
will be combined and in the form of SDRs in Lundin Mining sold on a best 
effort basis on Stockholmsborsen on behalf of NAN shareholders and the 
proceeds will be distributed to the NAN shareholders so entitled. 
Further information will be included in the forthcoming prospectus.

Commission will not be charged for NAN shares submitted in response to 
the Offer.

The Swedish Industry and Commerce Stock Exchange Committee's 
(Naringslivets Borskommitte (NBK)) rules governing public offers 
regarding share acquisitions and the Securities Council's 
(Aktiemarknadsnamnden) information regarding interpretation and 
application of the rules apply to the Offer.

Conditions to the Offer

The Offer is subject to requisite regulatory approvals in Canada and 
Sweden.

Offer premium

Based on the last price paid on the O-list at Stockholmsborsen for 
Lundin Mining's SDRs and NAN's shares prior to the trading halt on 
December 30, 2004, of SEK 57.00 and SEK 12.30, respectively, the Offer 
corresponds to a negative premium of 12.6 percent.

Based on the average price paid on the O-list at Stockholmsborsen for 
Lundin Mining's SDRs and NAN's shares during the most recent 30 trading 
days up to the day prior to the acquisition from Boliden, December 29, 
2004, of SEK 57.07 and SEK 12.03, respectively, the Share alternative 
corresponds to a negative premium of 10.5 percent and the Cash 
alternative to a negative premium of 10.6 percent.

Offer value

At full acceptance of the Offer through the Share alternative, 
approximately 1,532,775 new shares, in the form of SDRs, in Lundin 
Mining will be issued, which means that shareholders in NAN in total 
receive 4.4 percent of shares and votes in Lundin Mining and at full 
acceptance through the Cash alternative a total cash compensation of SEK 
87.3 million will be paid to NAN's shareholders.

Financing

Financing of the Offer will be made through the issuance of Lundin 
Mining shares in exchange for NAN shares and through the Company's cash 
holdings. The issuance of shares is authorised by the Board of Directors 
of Lundin Mining.

Identity of and other information

The Offer is made through Lundin Mining Corporation, a Canadian company 
with corporate registration number 306723-8. The Company's registered 
office is located in Vancouver, British Columbia, Canada. The Lundin 
Mining shares are listed on the Toronto Stock Exchange (trading symbol: 
"LUN") and in the form of SDRs on the O-list at Stockholmsborsen 
(trading symbol: "LUMI).

Lundin Mining's President, Edward F. Posey, serves as President of NAN 
and the Company's Executive VP Operations, Karl-Axel Waplan, serves as 
deputy board member of NAN. The Chairman of the Board of Directors of 
Lundin Mining, Lukas H. Lundin, serves as a board member of NAN.

Time schedule

It is estimated that an offer prospectus will be distributed to the 
shareholders of NAN on or about February 11, 2005. The acceptance period 
for the Offer is expected to extend from February 14 through March 4, 
2005. It is estimated that the accounting for payment to those 
shareholders that have accepted the Offer will commence on or about 
March 14, 2005. Lundin Mining reserves the right to extend the 
acceptance period.

Advisor

E. Ohman J:or Fondkommission AB is Lundin Mining's financial advisor in 
connection with the Offer.

Financial information

The pro forma financial information presented below is indicative and 
may be subject to changes. The pro forma financial information does not 
take into account, among other things, potential synergies, 
restructuring costs or transaction costs.

Comments to the pro forma financial information for the twelve months 
ended December 31, 2003

a) Pro forma financial statements as at December 31, 2003, are prepared 
in respect of a holding of 74 percent of the shares in NAN as at January 
1, 2003 in the income statement and as at December 31, 2003 in the 
balance sheet, and are recalculated from SEK to CAD using a conversion 
rate of 0.1734 in the income statement and 0.1796 in the balance sheet..

b) The financials for Lundin Mining are based on pro forma as if the 
acquisition of North Mining Svenska AB ("NMS") was made as at January 1, 
2003 in the income statement and as at December 31, 2003 in the balance 
sheet,

c) The financials for NAN are actual.

/T/

             Lundin Mining                                 Pro forma
                 Pro forma        NAN      NAN          consolidated
                    Twelve     Twelve   Twelve                Twelve
                    months     months   months                months
                     ended      ended    ended                 ended
                    Dec 31,    Dec 31,  Dec 31,               Dec 31,
                      2003       2003     2003                  2003
                       CAD        SEK      CAD Adjustment        CAD
                 Million(b) Million(c) Million  Pro forma  Million(a)
                -----------------------------------------------------
Sales                 63.4      276.8     48.0                 111.4
Cost of sales        -60.4     -198.2    -34.4       -5.6     -100.4
                -----------------------------------------------------
Gross margin           3.0       78.6     13.6       -5.6       11.0
                -----------------------------------------------------
Expenses
 Administrative
  expenses            -6.3       -8.5     -1.5                  -7.8
 General
  exploration
  and project
  investigation       -1.4      -11.0     -1.9                  -3.3
 Other income
  (expenses)          -0.2        1.6      0.3                   0.1
                -----------------------------------------------------
                      -7.9      -17.9     -3.1                 -11.0
                -----------------------------------------------------
Income before
 undernoted           -4.9       60.7     10.5       -5.6        0.0
Equity in income
 of significantly
 influenced
 investee              2.9          -        -       -2.9        0.0
                -----------------------------------------------------
Income before
 income taxes         -2.0       60.7     10.5       -8.5        0.0
Future income
 tax expense          -0.1      -17.0     -2.9        1.6       -1.5
Minority interest        -          -        -       -2.0       -2.0
                -----------------------------------------------------
Net income for
 the period           -2.1       43.7      7.6       -8.9       -3.4
                -----------------------------------------------------
                -----------------------------------------------------

Balance sheet
ASSETS
Current assets
 Cash                 13.1        1.0      0.2                  13.3
 Accounts
  receivable           7.7        1.0      0.2                   7.9
 Inventories           6.9        5.2      0.9                   7.8
 Loan receivable
  from NAN             0.9          -        -        0.9          -
 Prepaid expenses      0.2       23.6      4.2                   4.4
 Other short term
  receivables          1.3        0.3      0.1          -        1.4
                -----------------------------------------------------
                      30.1       31.1      5.6       -0.9       34.8
Long-term
 receivables           0.7          -        -                   0.7
Shares in NAN         22.0          -        -      -22.0          -
Investment in NAN      8.5          -        -       -8.5          -
Properties, plant
 and equipment
  Mining properties  177.5      110.5     19.8       17.4      214.7
  Machinery and
   other technical
   equipment          21.9        0.3      0.1                  22.0
Future income
 tax assets            3.9       22.1      4.0                   7.9
                -----------------------------------------------------
                     234.5      132.9     23.9      -13.2      245.2
                -----------------------------------------------------
                     264.6      164.0     29.5      -14.1      280.0
                -----------------------------------------------------
                -----------------------------------------------------

LIABILITIES
Current liabilities
 Accounts payable
  and other accrued
  liabilities          3.5        2.0      0.4                   3.9
 Accrued expenses      4.4        8.9      1.6                   6.0
 Due to related
  parties              1.0       26.7      4.8       -2.6        3.2
 Other current
  liabilities          1.3        2.1      0.4                   1.7
                -----------------------------------------------------
                      10.2       39.7      7.1                  14.7

Long term
 liabilities
  Provisions
   for pensions       16.3          -        -                  16.3
  Other provisions    13.1        1.0      0.2                  13.3
  Future income tax
   liabilities        41.9          -        -        4.9       46.8
                -----------------------------------------------------
                      71.3        1.0      0.2        4.9       76.3
                -----------------------------------------------------
SHAREHOLDERS'
 EQUITY              183.1      123.3     22.1      -22.1      183.1
Minority interest        -          -        -        5.8        5.8
                -----------------------------------------------------
                     183.1      123.3     22.1      -16.3      188.9
                -----------------------------------------------------
                     264.6      164.0     29.5      -11.5      280.0
                -----------------------------------------------------
                -----------------------------------------------------

                    Lundin
                    Mining
                    Twelve
                    months
                     ended                                 Pro forma
Key financial       Dec 31,                             consolidated
 data                 2003                              Dec 31, 2003
                -----------------------------------------------------
Number of shares
 at end of
 period fully
 diluted        31,260,257                                33,437,057
Weighted average
 number of
 shares at end
 of period fully
 diluted        28,204,807                                30,381,607
Shareholders's
 equity per share
 fully diluted,
 CAD                  5.86                                      5.48
Income per share
 fully diluted,
 CAD                 -0.07                                     -0.11
Equity ratio            69%                                       65%

/T/

Comments to the pro forma financial information for the nine months 
ended September 30, 2004

a) Interim pro forma financial statements as per September 30, 2004 are 
prepared in respect of a holding of 74 percent of the shares in NAN as 
of January 1, 2004 in the income statement and as at September 30, 2004 
in the balance sheet, and are recalculated from SEK to CAD using an 
average conversion rate of 0.1777 in the income statement and 0.1727 in 
the balance sheet.

b) The financials for Lundin Mining are based on pro forma as the 
acquisition of NMS was made as per January 1, 2004 in the income 
statement and per September 30, 2004 in the balance sheet.

c) The financials for NAN are actual.

/T/

             Lundin Mining                                 Pro forma
                 Pro forma        NAN      NAN          consolidated
                      Nine       Nine     Nine                  Nine
                    months     months   months                months
                     ended      ended    ended                 ended
                    Sep 30,    Sep 30,  Sep 30,               Sep 30,
                      2004       2004     2004                  2004
                       CAD        SEK      CAD Adjustment        CAD
                 Million(b) Million(c) Million  Pro forma  Million(a)
                -----------------------------------------------------
Sales                 62.8      183.8     32.7                  95.5
Cost of sales        -47.4     -130.0    -23.1       -4.3      -74.8
                -----------------------------------------------------
Gross margin          15.4       53.8      9.6       -4.3       20.7
                -----------------------------------------------------
Expenses
 Administrative
  expenses            -5.6      -19.7     -3.5                  -9.1
 General
  exploration
  and project
  investigation       -3.8       -9.6     -1.7                  -5.5
 Other income
  (expenses)           1.8        3.8      0.7                   2.5
                -----------------------------------------------------
                      -7.6      -25.5     -4.5                 -12.1
                -----------------------------------------------------
Income before
 undernoted            7.8       28.3      5.0       -4.3        8.5
Gain on sale of
 investment in NAN     0.9          -                            0.9
Equity in income
 of significantly
 influenced
 investee              1.4          -                -1.4          -
                -----------------------------------------------------
Income before
 income taxes         10.1       28.3      5.0       -5.7        9.4
Future income
 tax expense          -3.0       -7.9     -1.4        1.2       -3.2
Minority interest                                    -0.9       -0.9
                -----------------------------------------------------
Net income for
 the period            7.1       20.4      3.6       -5.4        5.3
                -----------------------------------------------------
                -----------------------------------------------------


Balance sheet
ASSETS
Current assets
 Cash                 32.4       18.9      3.3                  35.7
 Accounts
  receivable           7.8        1.3      0.2                   8.0
 Inventories           5.6        3.2      0.6                   6.2
 Prepaid expenses      0.3       25.7      4.4                   4.7
 Other short term
  receivables            -        3.2      0.6                   0.6
                -----------------------------------------------------
                      46.1       52.3      9.0                  55.1
Long-term
 receivables           0.7          -        -                   0.7
Shares in NAN         21.2          -        -      -21.2          -
Investment in NAN      9.3          -        -       -9.3          -
Properties, plant
 and equipment
  Mining properties  175.7       92.5     16.0       16.7      208.4
  Machinery and
   other technical
   equipment          19.6        0.8      0.1                  19.7
Future income
 tax assets            3.7       14.1      2.4                   6.1
                -----------------------------------------------------
                     230.2      107.4     18.5      -13.8      235.0
                -----------------------------------------------------
                     276.3      159.7     27.6      -13.8      290.1
                -----------------------------------------------------
                -----------------------------------------------------
LIABILITIES
Current liabilities
 Accounts payable
  and other accrued
  liabilities          4.9        7.5      1.3                   6.2
 Accrued expenses      4.5        3.6      0.6                   5.1
 Due to related
  parties              0.1          -        -       -0.1        0.0
 Other current
  liabilities          4.0        3.1      0.5                   4.5
                -----------------------------------------------------
                      13.5       14.2      2.5       -0.1       15.8

Long term
 liabilities
  Capital lease
   obligations         0.7          -        -                   0.7
  Provisions for
   pensions           15.0          -        -                  15.0
  Other provisions    12.9        1.8      0.3                  13.2
  Future income
   tax liabilities    38.5          -        -        4.7       43.2
                -----------------------------------------------------
                      67.1        1.8      0.3        4.7       72.1
                -----------------------------------------------------
SHAREHOLDERS'
 EQUITY              195.7      143.7     24.8      -24.8      195.7
Minority interest        -          -        -        6.5        6.5
                -----------------------------------------------------
                     195.7      143.7     24.8      -18.4      202.2
                -----------------------------------------------------
                     276.3      159.7     27.6      -13.8      290.1
                -----------------------------------------------------
                -----------------------------------------------------

                    Lundin
                    Mining
               Nine months
                     ended                                 Pro forma
Key financial      Sep 30,                              consolidated
 data                 2004                              Sep 30, 2004
                -----------------------------------------------------
Number of shares
 at end of
 period fully
 diluted        31,547,471                                33,724,271
Weighted average
 number of
 shares at end
 of period fully
 diluted        31,478,714                                33,655,514
Shareholders's
 equity per share
 fully diluted,
 CAD                  6.20                                      5.80
Income per share
 fully diluted,
 CAD                  0.23                                      0.16
Equity ratio            71%                                       67%

/T/

Conference call

A conference call with respect to the Offer has been scheduled for 
Monday, January 24, 2005 at 16:00 CET (10:00 a.m. Toronto time). 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: +46 (0)8 505 201 14

A replay of the telephone conference will be available approximately one 
hour after the completion of the conference and until January 31, 2005. 
Replay number is: +46 (0)8 505 20 333. To access the recording, please 
enter access code 642021.

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 
74 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 2002. 
Lundin Mining also holds a large copper/gold exploration project in the 
prolific Norrbotten Mining District in northern Sweden.

ON BEHALF OF THE BOARD

LUKAS H. LUNDIN, Chairman

-30-


FOR FURTHER INFORMATION PLEASE CONTACT:

Lundin Mining Corporation
Lukas H. Lundin
Chairman
(604) 689 7842

or

Lundin Mining Corporation
Karl-Axel Waplan
Executive Vice President Operations
+46 (0) 8 545 074 73
Website: www.lundinmining.com