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  Mar 18, 2005 - 02:53 ET
Proposed Merger Of Lundin Mining Corporation And Arcon International Resources P.L.C.

 
NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR:  LUNDIN MINING CORPORATION

TSX SYMBOL:  LUN

MARCH 18, 2005 - 02:53 ET

Proposed Merger Of Lundin Mining Corporation And Arcon 
International Resources P.L.C.

TORONTO, ONTARIO--(CCNMatthews - March 18, 2005) - NOT FOR RELEASE, 
PUBLICATION OR DISTRIBUTION IN OR INTO, THE UNITED STATES, AUSTRALIA, 
SOUTH AFRICA OR JAPAN

Lundin Mining Corporation ("Lundin Mining") (TSX:LUN)(O-list 
Stockholmsborsen:LUMI) is pleased to announce that the attached 
announcement under Rule 2.5 of the Irish Takeover Rules (the "2.5 
Announcement") was issued in Ireland today. The 2.5 Announcement sets 
out the terms and conditions of the previously announced proposed merger 
of Lundin Mining and Arcon International Resources P.L.C. ("Arcon") 
agreed by Lundin Mining and the Independent Directors of Arcon. The 
merger will be effected by means of a recommended merger offer to be 
made by Lundin Mining to acquire the entire issued and to be issued 
capital of Arcon on the terms and conditions set forth in the attached 
2.5 Announcement and to be more particularly described in an offer 
document (the "Offer Document") to be circulated to Arcon shareholders 
on or about March 21, 2005.

/T/

ON BEHALF OF THE BOARD

"Edward F. Posey"
President


NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO, THE UNITED
 STATES, AUSTRALIA, SOUTH AFRICA OR JAPAN


                                                      18 March 2005

PROPOSED MERGER OF
LUNDIN MINING CORPORATION ("LUNDIN MINING") AND
ARCON INTERNATIONAL RESOURCES P.L.C. ("ARCON")

---------------------------------------------------------------------

/T/

Merger will create diversified European base metals producer

Further to the announcement made by Lundin Mining and ARCON on 3 March 
2005, the Board of Directors of Lundin Mining and the Independent 
Directors of ARCON are pleased to announce that they have reached 
agreement on the terms of a recommended Merger of the two companies (the 
"Merger").

Under the terms of the Merger Offer, each holder of 100 ARCON Shares 
will be entitled to receive US$36.2198 in cash (the "Cash Component") 
and 3.2196 Lundin Mining Swedish Depository Receipts ("Lundin Mining 
SDRs") (the "Securities Component") and so on in proportion for any 
greater or lesser number of ARCON Shares held, such that 32 ARCON Shares 
will entitle the holder to approximately US$11.59 in cash and 1 Lundin 
Mining SDR. Fractions of Lundin Mining SDRs will not be distributed but 
will be aggregated and sold in the market for the benefit of the 
relevant ARCON Shareholders.

The terms of the Merger Offer also contain a limited cash alternative 
(the "Cash Alternative") whereby all ARCON Shareholders may elect to 
receive an amount of cash equivalent to the full value of the Merger 
Offer per ARCON Share in respect of the first 1,000 ARCON Shares 
registered in each ARCON Shareholder's name. ARCON Shareholders owning 
1,000 or less ARCON Shares will be entitled to elect to receive this 
Cash Alternative in respect of their entire ARCON Shareholding. The 
value of this Cash Alternative per ARCON Share will represent the Cash 
Component of the Merger Offer for an ARCON Share plus an amount of cash 
equivalent to the value of the Securities Component of the Merger Offer 
for an ARCON Share as at the date the Merger Offer becomes or is 
declared unconditional in all respects.

Based on the Closing Price of SEK71 per Lundin Mining SDR on the O-list 
of the Stockholm Stock Exchange on 16 March 2005, the last practicable 
date prior to the issue of this announcement ("Announcement"), and based 
on the prevailing US$/EUR and SEK/EUR exchange rates on 16 March 2005, 
the Merger Offer values each ARCON Share at EUR 0.522 (the "Current 
Merger Value per ARCON Share") and the entire issued share capital of 
ARCON (assuming the exercise of all outstanding options under the ARCON 
Share Option Schemes) at approximately EUR 93.4 million as at that date. 
This represents a premium of approximately 14% over the Closing Price of 
EUR 0.46 per ARCON Shares on 16 March 2005 (the last practicable date 
prior to the issue of this Announcement).

The Merger will create a diversified European base metals producer with 
aggregate annual zinc production of approximately 152,000 MT of metal in 
concentrate and annual lead production of approximately 46,000 MT of 
metal in concentrate (each based on year ended 31 December 2004), as 
well as copper and silver production and a substantial exploration 
portfolio. The Enlarged Group will have the ability to commit financial 
and technical resources for investment in, and exploration around, the 
Galmoy mine making it possible to seek to both enhance operational 
efficiencies and extend Galmoy's mine life.

Commenting on the Merger, Mr. Lukas Lundin, Chairman of Lundin Mining, 
said:

"This Merger will create a premier zinc mining investment choice for 
investors. With three low-cost mines focused in Europe, the Enlarged 
Group will generate substantial cash flow which will be used to further 
enhance the Enlarged Group's growth strategy. The Merger will combine 
two quality management teams who can invest immediately in the Galmoy 
mine to further enhance operational performance and to seek to expand 
the Galmoy mine life through a substantially enhanced exploration 
program. The Enlarged Group will continue to have the backing of the 
Lundin family, with its track record of adding shareholder value, and 
the involvement of Sir Anthony O'Reilly, ARCON's principal shareholder, 
who, following completion of the Merger, will have a significant 
interest in the share capital of the Enlarged Group (approximately 9% on 
an undiluted basis)."

Mr. Patrick Hayes, Chairman of the Independent Committee of ARCON 
Directors established, following consultation with, and the agreement 
of, the Irish Takeover Panel, for the purposes of considering the Merger 
Offer, said:

"This Merger Offer allows ARCON Shareholders to realise both a cash 
value for part of their investment in ARCON which reflects the current 
favourable sentiment towards base metal equities, and also facilitates 
their retention of part of their investment through a shareholding in 
the Enlarged Group that maintains exposure (while diversifying risk) to 
future production and exploration opportunities in both Ireland and 
Sweden."

This summary should be read in conjunction with the full text of the 
attached Announcement.

/T/

For further information, contact:

Lundin Mining Corporation

Karl-Axel Waplan                             +46 705 104 239
Sophia Shane                                 +1 604 689 7842


ARCON International Resources P.l.c.

Peter Kidney                                 +353 1 667 3063
(Independent Director)

James McCarthy                               +353 1 283 7144
(Director)


Macquarie Bank Limited
(Financial Adviser to Lundin Mining)

Richard Gannon                              +44 20 7065 2173


Davy Corporate Finance Limited
(Financial Adviser to the Independent Directors of ARCON)

Eugenee Mulhern                              +353 1 679 6363


Murray Consultants
(Public relations adviser to ARCON)

Pauline McAlester                            +353 1 498 0300

/T/

Macquarie Bank Limited, which is authorised and regulated in the United 
Kingdom by the Financial Services Authority, is acting exclusively for 
Lundin Mining and no one else in connection with the Merger Offer for 
ARCON and will not be responsible to anyone other than Lundin Mining for 
providing the protections afforded to clients of Macquarie Bank Limited 
or for giving advice in relation to the Merger Offer, the contents of 
this Announcement or any transaction or arrangement referred to herein.

Davy Corporate Finance Limited, which is regulated in Ireland by the 
Irish Financial Services Regulatory Authority, is acting for the 
Independent Directors and for no one else in relation to the matters 
described in this Announcement and will not be responsible to anyone 
other than the Independent Directors for providing the protections 
afforded to clients of Davy Corporate Finance Limited or for giving 
advice in relation to the matter referred to in this Announcement.

This Announcement has been approved, solely for the purposes of section 
21 of the Financial Services and Markets Act 2000 of the UK, by 
Macquarie Bank Limited of Levels 29 & 30, CityPoint, One Ropemaker 
Street, London EC2Y 9HD, which is authorised and regulated in the United 
Kingdom by the Financial Services Authority.

The full text of the conditions and reference to certain further terms 
of the Merger are set out in Appendix I and form part of this 
Announcement.

The Directors of Lundin Mining accept responsibility for the information 
contained in this Announcement, other than that relating to ARCON, the 
ARCON Group, the Directors of ARCON and members of their immediate 
families, related trusts and persons connected with them and other than 
the recommendation and related opinions of the Independent Directors. To 
the best of the knowledge and belief of the Directors of Lundin Mining, 
who have taken all reasonable care to ensure that such is the case, the 
information contained in this Announcement for which they accept 
responsibility is in accordance with the facts and, does not omit 
anything likely to affect the import of such information.

The Directors of ARCON, other than Mr. W. James Tilson, accept 
responsibility for the information contained in this Announcement, other 
than that relating to Lundin Mining, the Lundin Mining Group, the 
Directors of Lundin Mining and members of their immediate families, 
related trusts and persons connected with them except for the 
recommendation and related opinions of the Independent Directors. To the 
best of the knowledge and belief of the Directors of ARCON other than 
Mr. W. James Tilson, who have taken all reasonable care to ensure that 
such is the case, the information contained in this Announcement for 
which they accept responsibility is in accordance with the facts and, 
does not omit anything likely to affect the import of such information. 
The Independent Directors accept responsibility for the recommendation 
and the related opinions of the Independent Directors contained in this 
Announcement. To the best of the knowledge and belief of the Independent 
Directors, who have taken all reasonable care to ensure that such is the 
case, the information contained in this Announcement for which they 
accept responsibility is in accordance with the facts and, does not omit 
anything likely to affect the import of such information.

Any person who is the holder of 1% or more of the Shares of ARCON may 
have disclosure obligations under Rule 8.3 of the Irish Takeover Panel 
Act, 1997, Takeover (Amendment) Rules 2002, effective from the date of 
the commencement of the offer period in respect of the Merger Offer.

This Announcement does not constitute an offer or an invitation to 
purchase or subscribe for any securities and does not constitute an 
offer of Lundin Mining Securities.

Unless otherwise determined by Lundin Mining, the Merger Offer will not 
be made directly or indirectly in, into or from Australia, Japan, South 
Africa, the United States or any other jurisdiction where it would be 
unlawful to do so, or by the use of the mails, or by any means or 
instrumentality (including, without limitation, telephonically or 
electronically) of interstate or foreign commerce, or by any facility of 
a national securities exchange of Australia, Japan, South Africa, the 
United States or any other jurisdiction where it would be unlawful to do 
so, and the Merger Offer will not be capable of acceptance by any such 
means, instrumentality or facility from within Australia, Japan, South 
Africa, the United States or any jurisdiction where it would be unlawful 
to do so. Accordingly, unless otherwise determined by Lundin Mining, 
neither copies of this Announcement nor any other documents related to 
the Merger Offer are being, or may be, mailed or otherwise distributed 
or sent in, into or from Australia, Japan, South Africa, the United 
States or any other jurisdiction where it would be unlawful to do so and 
persons receiving such documents (including custodians, nominees and 
trustees) must not distribute or send them in, into or from Australia, 
Japan, South Africa, the United States or any other jurisdiction where 
it would be unlawful to do so, as doing so may invalidate any purported 
acceptance of the Merger Offer. Notwithstanding the foregoing 
restrictions, Lundin Mining reserves the right to permit the Merger 
Offer to be accepted, if in its sole discretion, it is satisfied that 
the transaction in question is exempt from or not subject to the 
legislation or regulation giving rise to the restrictions in question.

/T/

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO, THE UNITED
 STATES, AUSTRALIA, SOUTH AFRICA OR JAPAN


                                                      18 March 2005

PROPOSED MERGER OF
LUNDIN MINING CORPORATION ("LUNDIN MINING") AND
ARCON INTERNATIONAL RESOURCES P.L.C. ("ARCON")

---------------------------------------------------------------------

/T/

1. Introduction

Further to the announcement made by Lundin Mining and ARCON on 3 March 
2005, the Board of Directors of Lundin Mining and the Independent 
Directors of ARCON are pleased to announce that they have reached 
agreement on the terms of a recommended Merger of the two companies (the 
"Merger").

2. Terms and Structure of the Merger Offer

The Merger will be effected by means of a recommended Merger Offer to be 
made by Lundin Mining to acquire the entire issued and to be issued 
share capital of ARCON (other than ARCON Shares in the beneficial 
ownership of Lundin Mining as at the date of despatch of the Offer 
Document) and will be made on the terms and subject to the conditions 
set out in Appendix I and certain further terms set out in the Offer 
Document.

Under the terms of the Merger Offer, each holder of 100 ARCON Shares 
will be entitled to receive:

- US$36.2198 in cash (the "Cash Component"); and

- 3.2196 Lundin Mining Swedish Depository Receipts ("Lundin Mining 
SDRs") (the "Securities Component")

and so on in proportion for any greater or lesser number of ARCON Shares 
held, such that 32 ARCON Shares will entitle the holder to approximately 
US$11.59 in cash and 1 Lundin Mining SDR. Fractions of Lundin Mining 
SDRs will not be created or distributed but will be aggregated and sold 
in the market for the benefit of the relevant ARCON Shareholders. 
Therefore ARCON Shareholders holding less than 32 ARCON Shares will 
receive US$0.362198 in cash per ARCON Share as the consideration under 
the Cash Component of the Merger Offer plus the pro rata net proceeds of 
the sale of aggregated Lundin Mining SDRs in respect of the Securities 
Component of the Merger Offer.

The terms of the Merger Offer also contain a limited cash alternative 
(the "Cash Alternative") whereby all ARCON Shareholders may elect to 
receive an amount of cash equivalent to the full value of the Merger 
Offer per ARCON Share in respect of the first 1,000 ARCON Shares 
registered in each ARCON Shareholder's name. ARCON Shareholders owning 
1,000 or less ARCON Shares will be entitled to elect to receive this 
Cash Alternative in respect of their entire ARCON Shareholding. The 
value of this Cash Alternative per ARCON Share will represent the Cash 
Component of the Merger Offer for an ARCON Share plus an amount of cash 
equivalent to the value of the Securities Component of the Merger Offer 
for an ARCON Share, which shall be determined on the basis of the 
Closing Price of Lundin Mining SDRs on the date the Merger Offer becomes 
or is declared unconditional in all respects. Further details of the 
Cash Alternative will be set out in the Offer Document. Where any ARCON 
Shareholder splits their holding of ARCON Shares after the date of this 
Announcement by transferring ARCON Shares to persons connected with them 
(as defined by section 10 of the Taxes Consolidation Act 1997), then the 
ARCON Shares held by such connected persons shall be treated as a single 
holding of ARCON Shares for the purposes of any election under the Cash 
Alternative received from those connected persons. The provisions 
relating to the settlement currency shall apply to the Cash Alternative.

Based on the Closing Price of SEK71 per Lundin Mining SDR on the O-list 
of the Stockholm Stock Exchange on 16 March 2005, the last practicable 
date prior to the issue of this announcement ("Announcement"), and based 
on the prevailing US$/EUR and SEK/EUR exchange rates on 16 March 2005, 
the Merger Offer values each ARCON Share at EUR 0.522 (the "Current 
Merger Value per ARCON Share") and the entire issued share capital of 
ARCON (assuming the exercise of all outstanding options under the ARCON 
Share Option Schemes) at approximately EUR 93.4 million as at that date. 
This represents a premium of approximately 14% over the Closing Price of 
EUR 0.46 per ARCON Share on 16 March 2005 (the last practicable date 
prior to the issue of this Announcement).

The expressed value of the Merger Offer will fluctuate in accordance 
with movements in the price per Lundin Mining SDR and with movements in 
the US$/EUR exchange rate (which affects the Cash Component of the 
Merger Offer) and the SEK/EUR exchange rate (which affects the 
Securities Component of the Merger Offer).

While the value per ARCON Share under the Merger Offer at the date of 
the Initial Announcement of EUR 0.538 (based on the prevailing exchange 
rates and the Closing Price of Lundin Mining Shares on the Toronto Stock 
Exchange on 2 March 2005) (the "2 March 2005 Value per ARCON Share") 
represented a small discount to the Closing Price per ARCON Share of EUR 
0.57 on 2 March 2005, the 2 March 2005 Value per ARCON Share and the 
Current Merger Value per ARCON Share represent premia of approximately 
32% and 28% over the average Closing Prices per ARCON Share in the 12 
month period prior to the commencement of the Offer Period, 
approximately 35% and 31% over the average Closing Price per ARCON Share 
in the 6 month period prior to the commencement of the Offer Period, and 
approximately 30% and 26% over the average Closing Price per ARCON Share 
in the 3 month period prior to the commencement of the Offer Period.

Following the compulsory acquisition of the remaining shares in NAN not 
owned by Lundin Mining, Lundin Mining will have issued approximately 
1,313,396 Lundin Mining SDRs to shareholders in NAN. Allowing for this 
dilution and assuming full acceptance of the Merger Offer, and ignoring 
the effect of the issue, if any, of ARCON Shares pursuant to the ARCON 
Share Option Schemes, and ignoring elections, if any, for the Cash 
Alternative, ARCON Shareholders will own approximately 14% of the entire 
issued share capital of Lundin Mining (on an undiluted basis) 
immediately following completion of the Merger Offer.

Settlement currency

ARCON Shareholders will have the ability under the Merger Offer to elect 
to receive cash consideration (that is, the Cash Component in respect of 
their ARCON Shares and any amount they are entitled to pursuant to an 
election for the Cash Alternative) in euro or sterling (if resident in a 
Participating State or the United Kingdom respectively). In default of 
election, the cash consideration will be paid in euro to ARCON 
Shareholders resident in a Participating State and in sterling to ARCON 
Shareholders resident in the United Kingdom. ARCON Shareholders resident 
elsewhere will receive cash consideration in US dollars. The amount 
payable will be calculated by reference to the relevant prevailing 
US$/EUR , SEK/EUR , SEK/Pounds Sterling and US$/Pounds Sterling exchange 
rates as determined by the Receiving Agent at the latest practicable 
time for the relevant payment date. Further details in relation to this 
facility will be contained in the Offer Document.

Swedish Depository Receipts

The Securities Component of the consideration under the Merger Offer 
will be satisfied by the creation of Lundin Mining SDRs, which will be 
quoted on the O-list of the Stockholm Stock Exchange and which will rank 
pari passu in all respects with existing Lundin Mining SDRs. Details of 
the rights and restrictions attaching to the Lundin Mining SDRs will be 
contained in the Offer Document.

3. Conditions

The Merger Offer will be made on the terms and subject to the conditions 
set out in Appendix I of this Announcement and certain further terms set 
out in the Offer Document.

4. Cash Alternative

In considering the terms of the Merger Offer, the Independent Directors 
recognised that a number of ARCON Shareholders with relatively small 
shareholdings in ARCON will have an entitlement under the Merger Offer 
to only a small number of Lundin Mining SDRs. Accordingly, in order to 
alleviate disadvantages suffered by smaller shareholders due to higher 
transactional costs as a percentage of the value of their holdings and 
difficult administrative hurdles in trading of small holdings, Lundin 
Mining has agreed to provide the Cash Alternative.

5. Background to and reasons for the Merger Offer

The Board of ARCON has considered a strategy of diversifying both 
production and exploration risk as a means of optimising shareholder 
value, and the Independent Directors believe that the Merger Offer 
delivers these objectives.

The Merger Offer presents ARCON Shareholders with the opportunity to 
participate in an enlarged group with three significant operating assets 
instead of just one at Galmoy and a targeted expansion of the Galmoy 
mine life through a substantially enhanced exploration program as well 
as other exploration opportunities in Sweden.

Furthermore, the Merger Offer allows ARCON Shareholders to realise a 
cash value for part of their investment in ARCON which reflects the 
current favourable sentiment towards base metals equities.

In considering the Merger Offer, the Independent Directors have had 
regard to the risks facing ARCON as a standalone company with a single 
and maturing producing asset, notwithstanding the significant 
exploration and production progress made by ARCON over recent years. The 
following factors have been of relevance in the deliberations of the 
Independent Committee with respect to the Merger Offer:

- The combination of ARCON and Lundin Mining mine interests delivers 
risk diversification by exposing ARCON Shareholders to a broader asset 
portfolio comprising zinc, lead, copper and silver mineralisation and 
provides ARCON Shareholders with the ability to capitalise on the 
currently prevailing high commodity price environment.

- The production life of the Enlarged Group will be significantly 
extended relative to that of Galmoy alone. While the Galmoy mine now 
has, following the discovery of the R-Zone ore body, a commercial life 
of approximately 5 years (assuming no further discoveries), the 
Zinkgruvan mine has a significantly longer remaining commercial life, 
currently having an estimated 11-year reserve life with additional 
resources that could support mining for a further 8 years, and the 
Storliden mine now has an estimated remaining commercial life of 
approximately 3 years, with exploration also in progress which, if 
successful, would extend its mine life further.

- The greater financial scale and resources of the Enlarged Group can 
facilitate accelerated further development of the Galmoy mine. This 
would be achieved by investing in operations and exploration with a view 
to optimising the use of the mine facilities and potentially extending 
the mine life through successful exploration. While increases in 
concentrate production volumes from approximately 100,000 MT in 2002 to 
approximately 160,000 MT in 2004 at the Galmoy mine have been achieved, 
further investment is expected to result in enhanced production volumes.

- The Enlarged Group will also have increased and diversified 
exploration potential, with areas of initial focus likely to be around 
Galmoy and on acreage held by Lundin Mining in Skellefte, Bergslagen and 
Norrbotten districts (three major Swedish mining districts) offering 
prospects for zinc, lead and silver plus prospects for gold, copper and 
nickel.

- The technical expertise and experience of both companies and their 
respective management teams would be available to the Enlarged Group.

- Share price liquidity in the equity of the Enlarged Group is expected 
to be greater relative to that of ARCON since the Enlarged Group would 
immediately after the Merger Offer have a more diverse institutional and 
retail shareholder base.

The Merger Offer terms were negotiated with the objective of achieving 
terms that reflect the progress made by ARCON in developing Galmoy since 
the 2002 refinancing, and capturing and delivering value for ARCON 
Shareholders in the prevailing high zinc price environment. The 
Independent Directors believe that this has been successfully achieved 
and that implementation of the Merger Offer will create a group with a 
combination of improved cash flows, experienced management and a greater 
diversity of mines and growth opportunities over a wider geographic area.

6. Membership of Independent Committee

The Initial Announcement advised that Mr. Tony O'Reilly Jnr, 
non-executive Chairman of ARCON, is expected to be appointed to the 
Board of Lundin Mining following completion of the Merger Offer. This 
will be a non-executive position. For this reason, while Mr. Tony 
O'Reilly Jnr participated in the initial assessment of the Merger Offer, 
he exempted himself from consideration of the initial determination by 
the Board of ARCON as a whole as to whether it would be able to 
recommend an offer, if made, on the terms detailed in the Initial 
Announcement.

The Board of ARCON also advised in the Initial Announcement that an 
independent committee of the Board of ARCON would be established for the 
purposes of considering the offer if and when it was made. This 
Independent Committee has, following consultation with the Panel, been 
duly formed and comprises Mr. Patrick Hayes, Mr. Kevin Ross, Mr. James 
S. McCarthy, Mr. William A. Mulligan and Mr. Peter Kidney.

Mr. Tony O'Reilly Jnr is not a member of the Independent Committee, for 
the reasons set out above.

Mr. James S. D. McCarthy is a director of Corporate Finance Ireland 
Limited, which acts as an adviser to Fairfield, a provider of financing 
facilities to ARCON, as referred to in section 12 below. Mr. David 
Roxburgh is a director of Fitzwilton Limited (a company ultimately 
controlled by Sir Anthony O'Reilly and Mr. Peter John Gouldandris), 
which is a shareholder in ARCON. Because of the potential benefit 
receivable under the Merger Offer by each of these companies, in their 
respective capacities as a creditor and a shareholder of ARCON, the 
Panel requested (on the basis of the information provided to it) that 
Messrs McCarthy and Roxburgh consider exempting themselves from 
membership of the Independent Committee. Both Mr. McCarthy and Mr. 
Roxburgh have so exempted themselves. Therefore, while they participated 
in the initial assessment of the Merger Offer, they did not participate 
in the deliberations of the Independent Committee with respect to the 
decision to recommend the Merger Offer.

Due to ill health, Mr. W. James Tilson has not participated in the 
deliberations of either the Board of ARCON or the Independent Directors 
with respect to the Merger Offer and he has also been exempted by the 
Panel from the requirement to take responsibility for the information in 
this Announcement for which the Board of ARCON and/or the Independent 
Directors have taken respective responsibility.

The Independent Committee appointed Davy Corporate Finance to advise it 
with respect to the Merger Offer.

7. Recommendation

The Independent Directors of ARCON, who have been so advised by Davy 
Corporate Finance, consider the terms of the Merger Offer to be fair and 
reasonable. In providing its advice, Davy Corporate Finance has taken 
into account the commercial assessments of the Independent Directors of 
ARCON. Accordingly, the Independent Directors intend unanimously to 
recommend that ARCON Shareholders accept the Merger Offer. The 
Independent Directors of ARCON intend to accept the Merger Offer in 
respect of all of their own beneficial shareholdings of 308,717 ARCON 
Shares in aggregate, representing approximately 0.18% of the existing 
issued share capital of ARCON.

8. Irrevocable Undertakings and Letters of Intent

Lundin Mining has received an irrevocable undertaking from ARCON's 
largest shareholder, Sir Anthony O'Reilly, to accept or procure the 
acceptance of the Merger Offer, in respect of 64.11% of ARCON's existing 
issued share capital. This irrevocable undertaking will cease to have 
any effect (its other conditions which related to the making of the 
Merger Offer and the timing thereof now having been satisfied) if the 
Merger Offer has not become or been declared unconditional by 10 June 
2005 or if the Merger Offer lapses or is withdrawn.

Lundin Mining has also received an irrevocable undertaking from Mr. Tony 
O'Reilly Jnr to accept, or procure the acceptance of the Merger Offer, 
in respect of 0.39% of ARCON's existing issued share capital. This 
irrevocable undertaking will cease to have any effect (its other 
conditions which related to the making of the Merger Offer and the 
timing thereof now having been satisfied) if the Merger Offer has not 
become or been declared unconditional by 10 June 2005 or if the Merger 
Offer lapses or is withdrawn.

The other Directors of ARCON other than Mr. W. James Tilson who hold 
ARCON Shares have signed non-binding letters of intent to accept the 
Merger Offer in respect of all of the ARCON Shares owned or controlled 
by them, representing approximately 0.18% of the existing issued share 
capital of ARCON.

9. Information on ARCON

ARCON is an Irish mining and exploration company that is listed on the 
Official Lists and admitted to trading on the Stock Exchanges. The main 
asset of the company is the Galmoy mine located in County Kilkenny, 
Ireland. The Galmoy mine, for the year ended 31 December 2004, produced 
approximately 69,000 MT of zinc in concentrate and approximately 15,000 
MT of lead in concentrate.

As announced in the unaudited Preliminary Results, which were released 
today, as at 31 December 2004, ARCON Group cash was approximately EUR 4 
million and total debt was approximately EUR 12.8 million. ARCON 
reported turnover of approximately EUR 37.3 million and profit before 
tax of approximately EUR 1.4 million for the year ended 31 December 2004.

10. Information on Lundin Mining

Overview of Lundin Mining

Lundin Mining Shares are listed on the Toronto Stock Exchange and 
existing Lundin Mining SDRs are listed on the O-list of the Stockholm 
Stock Exchange. Lundin Mining is a Canadian mining and exploration 
company with a primary focus in Europe. As at 31 December 2004, Lundin 
Mining had cash of approximately C$105 million and investments with a 
market value approaching US$30 million.

The principal asset of Lundin Mining is the Zinkgruvan mine in Sweden. 
The Zinkgruvan mine has been producing zinc, lead and silver on a 
continuous basis since 1857, and currently has an estimated 11-year 
reserve life with additional resources that could support mining for a 
further 8 years. Lundin Mining also holds approximately 96.4% of the 
shares in North Atlantic Natural Resources (NAN), a mining and 
exploration company listed on the O-list of the Stockholm Stock 
Exchange. NAN's primary asset is the Storliden copper and zinc mine in 
Northern Sweden. Following a recent public offer made for the shares of 
NAN not already owned by Lundin Mining (which, upon settlement, will 
increase Lundin Mining's shareholding in NAN from 74% to 96.4%), Lundin 
Mining intends to compulsorily acquire the outstanding shares in NAN. 
For the year ended 31 December 2004, the Zinkgruvan mine produced 
approximately 61,547 tonnes of zinc in concentrate at cash costs of 
approximately US$0.23/lb of zinc, while Storliden produced 22,348 tonnes 
of zinc in concentrate at cash costs of approximately US$0.11/lb zinc 
(both net of by-product credits). Lundin Mining also holds a large 
copper/gold exploration project in the Norrbotten Mining District in 
northern Sweden.

In December 2004, Lundin Mining entered into an agreement with Silver 
Wheaton Corporation ("Silver Wheaton"), whereby Lundin Mining agreed to 
sell all of its silver production from the Zinkgruvan mine to Silver 
Wheaton for an upfront cash payment of US$50 million, in addition to 6 
million (post-consolidation) Silver Wheaton shares (ticker symbol: SLW 
on the Toronto Stock Exchange), and 30 million Silver Wheaton warrants 
(ticker symbol: SLW-W on the Toronto Stock Exchange), 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 prevailing 
market price per ounce of silver. Each 5 warrants plus a payment of 
CAD$4.00 entitles the holder to purchase one Silver Wheaton common share 
up to and including 5 August 2009. As part of this arrangement Lundin 
Mining has committed to a minimum of 40 million ounces of silver to be 
delivered to Silver Wheaton over a 25-year period. 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.

Lundin Mining's strategy

Lundin Mining's mission is to explore for and extract minerals in a 
cost-efficient and environmentally responsible way, through wholly-owned 
subsidiaries and affiliated companies. A balance between exploration and 
producing assets will be achieved and maintained through internally 
developed and acquired assets. Lundin Mining's vision is to maximise 
shareholder value through building a significant mineral exploration and 
mining company primarily focused on the Nordic region and Europe.

In order to realise Lundin Mining's vision, the Board of Lundin Mining 
has decided to pursue the following strategy:

- Evaluate existing exploration projects as efficiently as possible.

- Acquire exploration rights for land areas known to contain mineral 
deposits.

- Become a joint venture partner in exploration and producing projects 
deemed commercially viable.

- Lundin Mining's ability to increase annual production of base metals 
is mainly dependent on its capacity to commence new production based on 
successful exploration, increase production from existing mines as well 
as to improve current mining and production methods. Lundin Mining's 
objective is growth through development of exploration deposits into 
commercial operations and acquisition of profitable production assets 
that meet Lundin Mining's focus. Lundin Mining's operations are carried 
out with the ambition that all exploration and production are managed in 
order to minimise the effect on the environment.

- Lundin Mining's positive cash flows combined with the fact that it 
does not hold any significant long term debt supports its objective to 
expand operations through acquisitions as well as development of 
existing assets.

- Lundin Mining is aiming for an equity ratio of 65 percent and intends 
to, as far as possible, finance future investments through internally 
generated funds once this equity ratio has been reached.

Commercial logic of the Merger

The Board of Lundin Mining considers that there is strong commercial 
logic in combining the businesses of Lundin Mining and ARCON, and that 
the Enlarged Group will enjoy the following particular benefits:

- Enhanced position in base metals mining and increased exposure to base 
metals prices going forward.

- Increased market position and purchasing power.

- Further diversification of mining operations.

- Increased and diversified exploration potential.

- Achieving efficiencies from sharing of technical experience and 
expertise across the Enlarged Group, plus reducing the costs of some 
overheads.

- The ability to provide employees with the benefits of being part of an 
enlarged organisation with increased operational and financial resources.

11. Release of Guarantees / Security

Lundin Mining has agreed to procure the release of certain guarantees 
and security provided by Sir Anthony O'Reilly and Indexia Holdings 
Limited (a company controlled by Sir Anthony O'Reilly), which were 
granted to ICC Bank (now Bank of Scotland) in connection with the Galmoy 
mine compensation bond and mine closure bond issued by that bank.

Further information in relation to these arrangements, which have been 
considered by the Panel, will be set out in the Offer Document.

12. Refinancing of Debt from Fairfield / Indexia

Facilities advanced by companies (Fairfield and Indexia) controlled by 
Sir Anthony O'Reilly totalling approximately US$17.5 million (as at 31 
December 2004) including accrued interest will be assumed by Lundin 
Mining following completion of the Merger Offer.

Further information in relation to these arrangements, which have been 
considered by the Panel, will be set out in the Offer Document.

13. Financing of the Merger Offer

The financing of the Merger Offer is being made from Lundin Mining's own 
cash resources.

14. Directors, management and employees

Lundin Mining has given assurances to the Directors of ARCON that the 
existing employment rights, including pension rights, of the employees 
of the ARCON Group will be fully safeguarded.

Mr. Tony O'Reilly Jnr, non-executive Chairman of ARCON, will join the 
Board of Lundin Mining as a non-executive director following completion 
of the Merger.

All of the other Directors of ARCON, other than Mr. Peter Kidney who 
will remain on the Board of ARCON, have agreed that, following the 
Merger Offer becoming or being declared unconditional in all respects, 
they will resign from the Board of ARCON.

15. Support Agreement

ARCON has entered into a Support Agreement with Lundin Mining dated 17 
March 2005. Under this agreement, ARCON has agreed, inter alia, to pay 
all of Lundin Mining's quantifiable third party costs and expenses 
(inclusive of VAT) up to a maximum of one per cent of the value of the 
Merger Offer. The expenses shall be payable if, having given their 
recommendation of the Merger Offer, any of the Independent Directors 
subsequently withdraws or adversely modifies their recommendation of the 
Merger Offer in the event of a competing offer for ARCON and in such 
event the Merger Offer lapses or is withdrawn. Other than in these 
circumstances, in the event that the Independent Directors of ARCON 
withdraw their recommendation, which they are entitled to do, no 
financial penalty arises from such withdrawal under the terms of the 
expense reimbursement arrangement. The terms of the expense 
reimbursement arrangement have been approved by the Panel.

Davy Corporate Finance, the independent financial adviser to the 
Independent Directors of ARCON, and the Independent Directors, have 
confirmed in writing to the Panel, in accordance with Note 1 of Rule 
21.2 of the Irish Takeover Rules, that in the respective opinions of the 
Independent Directors of ARCON and Davy Corporate Finance, in the 
context of the Merger Offer, the expense reimbursement arrangement is in 
the best interests of ARCON Shareholders.

The Support Agreement contains a non-solicitation undertaking from ARCON 
whereby ARCON has accepted certain restrictions on its ability to 
solicit, encourage or otherwise seek to procure an approach from any 
other potential offerors until the day on which the Merger Offer closes, 
lapses or is withdrawn.

16. ARCON Share Option Schemes

The Merger Offer will extend to any ARCON Shares allotted or issued 
pursuant to the exercise of options under the ARCON Share Option Schemes 
while the Merger Offer remains open for acceptance. Appropriate 
proposals will be made in due course to holders of options over ARCON 
Shares.

17. Disclosure of Interests in ARCON

As at close of business on 17 March 2005 being the last practicable date 
for this purpose prior to the date of this Announcement, Lundin Mining 
and parties acting in concert with Lundin Mining did not own or control 
any ARCON Shares nor do they hold any options to purchase any ARCON 
Shares, nor do they have any arrangements in relation to any ARCON 
Shares, nor have they entered into any derivative referenced to ARCON 
Shares which remains outstanding.

18. Compulsory acquisition, de-listing and cancellation of trading

If the Merger Offer becomes or is declared unconditional in all respects 
and sufficient acceptances have been received, Lundin Mining intends to 
apply the provisions of section 204 of the Companies Act, 1963 to 
acquire compulsorily any ARCON Shares not acquired or agreed to be 
acquired pursuant to the Merger Offer or otherwise on the same terms as 
the Merger Offer.

It is intended that, subject to and following the Merger Offer being 
declared unconditional in all respects, and subject to any applicable 
requirements of the Stock Exchanges or the UK Listing Authority, Lundin 
Mining will procure that ARCON applies for cancellation of the listing 
of the ARCON Shares on the Official Lists and for cancellation of 
trading of ARCON Shares on the markets of the Stock Exchanges. It is 
expected that such cancellations will take effect no earlier than 20 
Business Days after the Merger Offer becomes or is declared 
unconditional in all respects. De-listing would significantly reduce the 
liquidity and marketability of any ARCON Shares in respect of which 
acceptances of the Merger Offer are not submitted.

19. Consideration

The Cash Component of the consideration will, in relation to ARCON 
Shareholders who validly accept the Merger Offer up to the time the 
Merger Offer becomes or is declared unconditional in all respects, be 
despatched not later than 14 days after the Merger Offer becomes or is 
declared unconditional in all respects, or thereafter, so long as the 
Merger Offer remains capable of acceptance, within 14 days of receipt of 
acceptance of the Merger Offer.

Entitlements to Lundin Mining SDRs in respect of the Securities 
Component of the consideration will, in relation to ARCON Shareholders 
who validly accept the Merger Offer up to the time the Merger Offer 
becomes or is declared unconditional in all respects, be credited not 
later than 14 days after the Merger Offer becomes or is declared 
unconditional in all respects, or thereafter, so long as the Merger 
Offer remains capable of acceptance, within 14 days of receipt of 
acceptance of the Merger Offer.

ARCON Shareholders will have the ability under the Merger Offer to elect 
to receive cash consideration (that is, the Cash Component in respect of 
their ARCON Shares and any amount they are entitled to pursuant to an 
election for the Cash Alternative) in euro or sterling (if resident in a 
Participating State or the United Kingdom respectively). In default of 
election, the cash consideration will be paid in euro to ARCON 
Shareholders resident in a Participating State and in sterling to ARCON 
Shareholders resident in the United Kingdom. ARCON Shareholders resident 
elsewhere will receive cash consideration in US dollars. The amount 
payable will be calculated by reference to the relevant prevailing 
US$/EUR , SEK/EUR , SEK/Pounds Sterling and US$/Pounds Sterling exchange 
rates as determined by the Receiving Agent at the latest practicable 
time for the relevant payment date. Further details in relation to this 
facility will be contained in the Offer Document.

20. General

This Announcement does not constitute an offer or an invitation to offer 
to purchase or subscribe for any securities and does not constitute an 
offer of Lundin Mining Securities.

This Announcement is being made pursuant to Rule 2.5 of the Irish 
Takeover Rules.

The Merger Offer will be subject to the applicable requirements of the 
Irish Takeover Rules, the Irish Stock Exchange, the UK Listing Authority 
and the London Stock Exchange.

Any person who is the holder of one per cent or more of ARCON Shares may 
have disclosure obligations under Rule 8.3 of the Irish Takeover Panel 
Act, 1997, Takeover (Amendment) Rules 2002, effective from the 
commencement of the offer period in respect of the Merger Offer.

Macquarie Bank Limited, which is authorised and regulated in the United 
Kingdom by the Financial Services Authority, is acting exclusively for 
Lundin Mining and no one else in connection with the Merger Offer for 
ARCON and will not be responsible to anyone other than Lundin Mining for 
providing the protections afforded to clients of Macquarie Bank Limited 
or for giving advice in relation to the Merger Offer, the contents of 
this Announcement or any transaction or arrangement referred to herein.

Davy Corporate Finance Limited, which is regulated in Ireland by the 
Irish Financial Services Regulatory Authority, is acting for the 
Independent Directors and for no one else in relation to the matters 
described in this Announcement and will not be responsible to anyone 
other than the Independent Directors for providing the protections 
afforded to clients of Davy Corporate Finance Limited or for giving 
advice in relation to the Merger Offer, the contents of this 
Announcement or any transaction or arrangement referred to herein.

This Announcement has been approved, solely for the purposes of section 
21 of the Financial Services and Markets Act 2000 of the UK, by 
Macquarie Bank Limited of Levels 29 & 30, CityPoint, One Ropemaker 
Street, London EC2Y 9HD, which is authorised and regulated in the United 
Kingdom by the Financial Services Authority.

The full text of the conditions and reference to certain further terms 
of the Merger Offer are set out in Appendix I and form part of this 
Announcement and will be set out in full in the Offer Document. Appendix 
II contains definitions of certain terms used in this Announcement. The 
Offer Document will be despatched to ARCON Shareholders and, for 
information only, to holders of options under the ARCON Share Option 
Schemes, as soon as reasonably practicable and in any event within 28 
days of the date of this Announcement.

The Directors of Lundin Mining accept responsibility for the information 
contained in this Announcement, other than that relating to ARCON, the 
ARCON Group, the Directors of ARCON and members of their immediate 
families, related trusts and persons connected with them and other than 
the recommendation and related opinions of the Independent Directors. To 
the best of the knowledge and belief of the Directors of Lundin Mining, 
who have taken all reasonable care to ensure that such is the case, the 
information contained in this Announcement for which they accept 
responsibility is in accordance with the facts and, does not omit 
anything likely to affect the import of such information.

The Directors of ARCON, other than Mr. W. James Tilson, accept 
responsibility for the information contained in this Announcement, other 
than that relating to Lundin Mining, the Lundin Mining Group, the 
Directors of Lundin Mining and members of their immediate families, 
related trusts and persons connected with them except for the 
recommendation and related opinions of the Independent Directors. To the 
best of the knowledge and belief of the Directors of ARCON other than 
Mr. W. James Tilson, who have taken all reasonable care to ensure that 
such is the case, the information contained in this Announcement for 
which they accept responsibility is in accordance with the facts and, 
does not omit anything likely to affect the import of such information. 
The Independent Directors accept responsibility for the recommendation 
and the related opinions of the Independent Directors contained in this 
Announcement. To the best of the knowledge and belief of the Independent 
Directors, who have taken all reasonable care to ensure that such is the 
case, the information contained in this Announcement for which they 
accept responsibility is in accordance with the facts and, does not omit 
anything likely to affect the import of such information.

Unless otherwise determined by Lundin Mining, the Merger Offer will not 
be made directly or indirectly in, into or from Australia, Japan, South 
Africa, the United States or any other jurisdiction where it would be 
unlawful to do so, or by the use of the mails, or by any means or 
instrumentality (including, without limitation, telephonically or 
electronically) of interstate or foreign commerce, or by any facility of 
a national securities exchange of Australia, Japan, South Africa, the 
United States or any other jurisdiction where it would be unlawful to do 
so, and the Merger Offer will not be capable of acceptance by any such 
means, instrumentality or facility from within Australia, Japan, South 
Africa, the United States or any jurisdiction where it would be unlawful 
to do so. Accordingly, unless otherwise determined by Lundin Mining, 
neither copies of this Announcement nor any other documents related to 
the Merger Offer are being, or may be, mailed or otherwise distributed 
or sent in, into or from Australia, Japan, South Africa, the United 
States or any other jurisdiction where it would be unlawful to do so and 
persons receiving such documents (including custodians, nominees and 
trustees) must not distribute or send them in, into or from Australia, 
Japan, South Africa, the United States or any other jurisdiction where 
it would be unlawful to do so, as doing so may invalidate any purported 
acceptance of the Merger Offer. Notwithstanding the foregoing 
restrictions, Lundin Mining reserves the right to permit the Merger 
Offer to be accepted, if in its sole discretion, it is satisfied that 
the transaction in question is exempt from or not subject to the 
legislation or regulation giving rise to the restrictions in question.

APPENDIX I

Part A: Conditions of the Merger Offer

The Merger Offer will be subject to the following conditions:

(a)  valid acceptances being received (and not, where permitted, 
withdrawn) by not later than 3.00 p.m. (Dublin time) on the initial 
closing date (or such later time(s) and/or date(s) as Lundin Mining may, 
subject to the Irish Takeover Rules, decide) in respect of not less than 
80 per cent (or such lower percentage as Lundin Mining may decide) in 
nominal value of the ARCON Shares Affected, provided that this condition 
shall not be satisfied unless Lundin Mining shall have acquired or 
agreed to acquire (whether pursuant to the Merger Offer or otherwise) 
ARCON Shares carrying in aggregate more than 50 per cent of the voting 
rights then exercisable at a general meeting of ARCON.

For the purposes of this condition:

(i)  any ARCON Shares which have been unconditionally allotted shall be 
deemed to carry the voting rights they will carry upon their being 
entered in the register of members of ARCON; and

(ii) the expression "ARCON Shares Affected" shall mean:

A. ARCON Shares which have been issued or unconditionally allotted on or 
before the date the Merger Offer is made, excluding any ARCON Shares 
which have been cancelled after the date on which the Merger Offer is 
made; and

B. ARCON Shares which have been issued or unconditionally allotted after 
the date the Merger Offer is made but before the time at which the 
Merger Offer closes, or such earlier date as Lundin Mining may, subject 
to the Irish Takeover Rules, decide (not being earlier than the date on 
which the Merger Offer becomes unconditional as to acceptances or, if 
later, the initial closing date), excluding any ARCON Shares which have 
been cancelled after the date on which the Merger Offer is made;

but excluding any ARCON Shares which, on the date the Merger Offer is 
made, are already in the beneficial ownership of Lundin Mining within 
the meaning of section 204 of the Companies Act 1963;

(b) unless or to the extent otherwise agreed with the Panel, Admission 
becoming effective or (if determined by Lundin Mining and subject to the 
consent of the Panel) becoming effective subject only to (i) the 
creation of such Lundin Mining SDRs and/or (ii) the Merger Offer 
becoming or being declared unconditional in all respects;

(c) all of the ARCON Mining Licences, Access Rights or ARCON Planning 
Permissions remaining in full force and effect, or, if applicable, being 
obtained and there being no notice in writing of an intention to revoke 
or adversely modify or not to renew the same at the time at which the 
Merger Offer becomes otherwise unconditional or any adverse action being 
taken thereunder by any ministerial or local authority (other than 
adverse action which would not be material (in value terms or otherwise) 
in the context of the Wider ARCON Group taken as a whole) and none of 
the ARCON Mining Licences or ARCON Planning Permissions being terminated 
or adversely modified and there being no material breach of the terms or 
conditions of any of the ARCON Mining Licences or ARCON Planning 
Permissions at the date on which the Merger Offer becomes otherwise 
unconditional (except where the consequence of the material breach of 
any such ARCON Mining Licence or ARCON Planning Permission would not be 
material (in value terms or otherwise) in the context of the Wider ARCON 
Group taken as a whole) provided that where any ARCON Planning 
Permission is not in full force and effect, or there has been a notice 
in writing of an intention to revoke or adversely modify or not to renew 
the same at the time at which the Merger Offer becomes otherwise 
unconditional (a "Default Event") then this condition will be treated as 
satisfied unless the Default Event is material (in value terms or 
otherwise) in the context of the Wider ARCON Group taken as a whole;

(d) no central bank, government or governmental, quasi-governmental, 
supranational, statutory, regulatory or investigative body, including 
any national anti-trust or merger control authorities, court, tribunal, 
trade agency, professional association, environmental body, any 
analogous body whatsoever or tribunal in any jurisdiction (each a "Third 
Party") having decided to take, institute or implement any action, 
proceeding, suit, investigation, enquiry or reference or having made, 
proposed or enacted any statute, regulation or order or having withheld 
any consent or having done or decided to do anything which would or 
might reasonably be expected to:

(i) make the Merger Offer or its implementation, or the acquisition or 
the proposed acquisition by Lundin Mining of any shares in, or control 
of, ARCON, or any of the material assets of ARCON void, illegal or 
unenforceable under the laws of any jurisdiction, or otherwise, directly 
or indirectly, restrain, revoke, prohibit, materially restrict or 
materially delay the same or impose additional or different conditions 
or obligations with respect thereto (except for conditions or 
obligations that would not be material (in value terms or otherwise) in 
the context of the Wider ARCON Group taken as a whole) or otherwise 
challenge or interfere therewith (except where the result of such 
challenge or interference would not have, or would not reasonably be 
expected to have, a material adverse effect on the Wider ARCON Group 
taken as a whole);

(ii) result in a material delay in the ability of Lundin Mining, or 
render Lundin Mining unable, to acquire some or all of the ARCON Shares 
or require a divestiture by any member of the Wider Lundin Mining Group 
of any shares in ARCON;

(iii) (except where the consequences thereof would not be material (in 
value terms or otherwise) in the context of the Wider ARCON Group taken 
as a whole) require, prevent or delay the divestiture by any member of 
the Wider Lundin Mining Group or by any member of the Wider ARCON Group 
of all or any portion of their respective businesses, assets (including, 
without limitation, the shares or securities of any other member of the 
ARCON Group) or property or (except where the consequences thereof would 
not be material (in value terms or otherwise) in the context of the 
Wider ARCON Group taken as a whole) impose any limitation on the ability 
of any of them to conduct their respective businesses (or any of them) 
or own their respective assets or properties or any part thereof;

(iv) impose any material limitation on or result in a material delay in 
the ability of Lundin Mining to acquire, or to hold or to exercise 
effectively, directly or indirectly, all or any rights of ownership of 
shares (or the equivalent) in, or to exercise voting or management 
control over, ARCON or (to the extent ARCON has such rights) any member 
of the Wider ARCON Group which is material in the context of the Wider 
ARCON Group taken as a whole or (except where the consequences thereof 
would not be material (in value terms or otherwise) in the context of 
the Wider ARCON Group taken as a whole) on the ability of any member of 
the Wider ARCON Group to hold or exercise effectively, directly or 
indirectly, rights of ownership of shares (or the equivalent) in, or to 
exercise rights of voting or management control over, any member of the 
Wider ARCON Group which is material in the context of the Wider ARCON 
Group taken as a whole;

(v) (except where the consequences thereof would not be material (in 
value terms or otherwise) in the context of the Wider ARCON Group, taken 
as a whole) require any member of the Wider Lundin Mining Group or any 
member of the Wider ARCON Group to acquire or offer to acquire any 
shares or other securities (or the equivalent) in, or any interest in 
any asset owned by, any member of the Wider ARCON Group owned by any 
third party;

(vi) impose any limitation on the ability of any member of the ARCON 
Group to integrate or co-ordinate its business, or any part of it, with 
the businesses of any member of the Wider ARCON Group (except where the 
consequences thereof would not be material (in value terms or otherwise) 
in the context of the Wider ARCON Group taken as a whole);

(vii) result in any member of the Wider ARCON Group ceasing to be able 
to carry on business in any jurisdiction in which it presently does so 
(except where the consequences thereof would not be material (in value 
terms or otherwise) in the context of the Wider ARCON Group taken as a 
whole);

(viii) cause any member of the Wider ARCON Group to cease to be entitled 
to any Authorisation (as defined in paragraph (e) below) used by it in 
the carrying on of its business (except where the consequences thereof 
would not be material (in value terms or otherwise) in the context of 
the Wider ARCON Group, taken as a whole); or

(ix) otherwise materially adversely affect the business, profits, 
assets, liabilities, financial or trading position of any member of the 
Wider ARCON Group (except where the consequences thereof would not be 
material (in value terms or otherwise) in the context of the Wider ARCON 
Group taken as a whole);

(e) all necessary notifications and filings having been made, all 
necessary waiting and other time periods (including any extensions 
thereof) under any applicable legislation or regulation of any 
jurisdiction in which ARCON or any subsidiary or subsidiary undertaking 
of ARCON which is material in the context of the ARCON Group taken as a 
whole (a "Material Subsidiary") is incorporated or carries on business 
which is material in the context of the Wider ARCON Group taken as a 
whole having expired, lapsed or having been terminated (as appropriate) 
(save to an extent which would not be material (in value terms or 
otherwise) in the context of the Wider ARCON Group taken as a whole) and 
all statutory or regulatory obligations in any jurisdiction in which 
ARCON or a Material Subsidiary shall be incorporated or carry on 
business which is material in the context of the Wider ARCON Group taken 
as a whole having been complied with (save to an extent which would not 
be material (in value terms or otherwise) in the context of the Wider 
ARCON Group taken as a whole), in each case, in connection with the 
Merger Offer or its implementation and all authorisations, orders, 
recognitions, grants, consents, clearances, confirmations, licences, 
permissions and approvals in any jurisdiction ("Authorisations" and each 
an "Authorisation") reasonably deemed necessary by Lundin Mining for or 
in respect of the Merger Offer having been obtained on terms and in a 
form reasonably satisfactory to Lundin Mining from all appropriate Third 
Parties, (except where the consequence of the absence of any such 
Authorisation would not be material (in value terms or otherwise) in the 
context of the Wider ARCON Group taken as a whole) all such 
Authorisations remaining in full force and effect, there being no 
written notice of an intention to revoke or vary or not to renew the 
same at the time at which the Merger Offer become otherwise 
unconditional and all necessary statutory or regulatory obligations in 
any such jurisdiction having been complied with (except where the 
consequence of the absence of any such Authorisation would not be 
material (in value terms or otherwise) in the context of the Wider ARCON 
Group taken as a whole);

(f) all applicable waiting periods and any other time periods during 
which any Third Party could, in respect of the Merger Offer or the 
acquisition or proposed acquisition of any shares or other securities 
(or the equivalent) in, or control of, ARCON or any member of the Wider 
ARCON Group by Lundin Mining, institute or implement any action, 
proceedings, suit, investigation, enquiry or reference under the laws of 
any jurisdiction which would be reasonably expected adversely to affect 
(to an extent which would be material (in value terms or otherwise) in 
the context of the Wider ARCON Group taken as a whole) any member of the 
ARCON Group, having expired, lapsed or been terminated;

(g) except as disclosed, there being no provision of any arrangement, 
agreement, licence, permit, franchise, facility, lease or other 
instrument to which any member of the Wider ARCON Group is a party or by 
or to which any such member or any of its respective assets may be 
bound, entitled or be subject and which, in consequence of the Merger 
Offer or the acquisition or proposed acquisition by Lundin Mining of any 
shares or other securities (or the equivalent) in or control of, ARCON 
or any member of the ARCON Group or because of a change in the control 
or management of ARCON or otherwise, would or would be reasonably 
expected to result (except where, in any of the following cases, the 
consequences thereof would not be material (in value terms or otherwise) 
in the context of the Wider ARCON Group taken as whole) in:

(i) any monies borrowed by, or any indebtedness or liability (actual or 
contingent) of, or any grant available to any member of the Wider ARCON 
Group becoming, or becoming capable of being declared, repayable 
immediately or prior to their or its stated maturity;

(ii) the creation or enforcement of any mortgage, charge or other 
security interest wherever existing or having arisen over the whole or 
any part of the business, property or assets of any member of the Wider 
ARCON Group or any such mortgage, charge or other security interest 
becoming enforceable;

(iii) any such arrangement, agreement, licence, permit, franchise, 
facility, lease or other instrument or the rights, liabilities, 
obligations or interests of any member of the Wider ARCON Group 
thereunder, or the business of any such member with, any person, firm or 
body (or any arrangement or arrangements relating to any such interest 
or business) being terminated or adversely modified or any adverse 
action being taken or any obligation or liability arising thereunder;

(iv) any material assets or interests of, or any material asset the use 
of which is enjoyed by, any member of the Wider ARCON Group being or 
falling to be disposed of or charged, or ceasing to be available to any 
member of the Wider ARCON Group or any right arising under which any 
such asset or interest would be required to be disposed of or charged or 
would cease to be available to any member of the Wider ARCON Group 
otherwise than in the ordinary course of business;

(v) any member of the Wider ARCON Group ceasing to be able to carry on 
business;

(vi) the value of, or financial or trading position of any Material 
Subsidiary being prejudiced or adversely affected; or

(vii) the creation of any liability or liabilities (actual or 
contingent) by any member of the Wider ARCON Group;

unless, if any such provision exists, such provision shall have been 
waived, modified or amended on terms satisfactory to Lundin Mining;

(h) except as disclosed and/or save as publicly announced (by the 
delivery of an announcement to the Irish Stock Exchange or the London 
Stock Exchange or otherwise publicly disclosed in the ARCON Group annual 
report for the year ended 31 December 2003) by ARCON, no member of the 
Wider ARCON Group having, since 31 December 2003:

(i) issued or agreed to issue additional shares of any class, or 
securities convertible into or exchangeable for, or rights, warrants or 
options to subscribe for or acquire, any such shares or convertible or 
exchangeable securities (except for (A) issues to ARCON or wholly-owned 
subsidiaries of ARCON, or (B) upon any exercise of options under the 
ARCON Share Option Schemes);

(ii) recommended, declared, paid or made any bonus, dividend or other 
distribution other than bonuses, dividends or other distributions 
lawfully paid or made to another member of the Wider ARCON Group;

(iii) (save for transactions between two or more members of the ARCON 
Group ("intra-ARCON Group transactions")) made or authorised, proposed 
or announced any change in its loan capital (save in respect of loan 
capital which is not material (in value terms or otherwise) in the 
context of the ARCON Group taken as a whole);

(iv) save for intra-ARCON Group transactions, implemented, authorised, 
proposed or announced its intention to propose any merger, demerger, 
reconstruction, amalgamation, scheme or (except in the ordinary and 
usual course of trading) acquisition or disposal of (or of any interest 
in) material assets or shares (or the equivalent thereof) in any 
undertaking or undertakings (except in any such case where the 
consequences of any such merger, demerger, reconstruction, amalgamation, 
scheme, acquisition or disposal would not be material (in value terms or 
otherwise) in the context of the ARCON Group taken as a whole);

(v) except in the ordinary and usual course of business entered into or 
materially improved, or made any offer (which remains open for 
acceptance) to enter into or improve, the terms of the employment 
contract with any director of ARCON or any person occupying one of the 
senior executive positions in the ARCON Group or permitted a variation 
in the terms or rules governing the ARCON Share Option Schemes;

(vi) (except where the consequences thereof would not be material (in 
value terms or otherwise) in the context of the ARCON Group, taken as a 
whole) issued or agreed to issue any loan capital or (save in the 
ordinary course of business and save for intra-ARCON Group transactions) 
debentures or incurred any indebtedness or contingent liability;

(vii) purchased, redeemed or repaid or announced any offer to purchase, 
redeem or repay any of its own shares or other securities (or the 
equivalent) or reduced or made any other change to any part of its share 
capital;

(viii) (except where the consequences thereof would not be material (in 
value terms or otherwise) in the context of the Wider ARCON Group taken 
as a whole) (A) merged with any body corporate, partnership or business, 
or (B) and save for intra-ARCON Group transactions acquired or disposed 
of, transferred, mortgaged or encumbered any material assets or any 
right, title or interest in any asset (including shares and trade 
investments);

(ix) (except where the consequences thereof would not be material (in 
value terms or otherwise) in the context of the Wider ARCON Group taken 
as a whole), entered into or varied any contract, transaction, 
arrangement or commitment or announced its intention to enter into or 
vary any contract, transaction, arrangement or commitment (whether in 
respect of capital expenditure or otherwise) which is of a long term, 
onerous or unusual nature or magnitude or which is or would be 
materially restrictive on the business of any member of the Wider ARCON 
Group;

(x) waived or compromised any claim which would be material (in value 
terms or otherwise) in the context of the Wider ARCON Group taken as a 
whole;

(xi) (except where the consequences thereof would not be material (in 
value terms or otherwise) in the context of the Wider ARCON Group, taken 
as a whole) been unable, or admitted in writing that it is unable, to 
pay its debts or having stopped or suspended (or threatened to stop or 
suspend) payment of its debts generally or (except where the 
consequences thereof would not be material (in value terms or otherwise) 
in the context of the Wider ARCON Group taken as a whole) ceased or 
threatened to cease to carry on all or a substantial part of any 
business;

(xii) (except where the consequences thereof would not be material (in 
value terms or otherwise) in the context of the Wider ARCON Group taken 
as a whole) made or agreed to any significant change to the terms of the 
trust deeds constituting the pension schemes established for its 
directors and/or employees and/or their dependants or to the benefits 
which accrue, or to the pensions which are payable thereunder, or to the 
basis on which qualification for or accrual or entitlement to such 
benefits or pensions are calculated or determined, or to the basis upon 
which the liabilities (including pensions) of such pension schemes are 
funded or made, or agreed or consented to any change to the trustees 
involving the appointment of a trust corporation;

(xiii) (except where the consequences thereof would not be material (in 
value terms or otherwise) in the context of the Wider ARCON Group taken 
as a whole) and save for voluntary solvent liquidations, taken any 
corporate action or had any legal proceedings instituted against it in 
respect of its winding-up, dissolution, examination or reorganisation or 
for the appointment of a receiver, examiner, administrator, 
administrative receiver, trustee or similar officer of all or any part 
of its assets or revenues, or (A) any analogous proceedings in any 
jurisdiction, or (B) appointed any analogous person in any jurisdiction 
in which ARCON or any Material Subsidiary shall be incorporated or carry 
on any business which is material in the context of the ARCON Group 
taken as a whole;

(xiv) entered into any agreement, contract or binding commitment or 
passed any resolution or made any offer or announcement with respect to, 
or to effect any of the transactions, matters or events set out in this 
condition; or

(xv) except in the case of amendments to the memoranda or articles of 
association of subsidiaries which are not material, amended its 
memorandum or articles of association;

(i) except as disclosed and/or save as publicly announced by ARCON (by 
delivery of an announcement to the Irish Stock Exchange or the London 
Stock Exchange or otherwise publicly disclosed in the ARCON Group annual 
report for the year ended 31 December 2003) on or prior to the issue of 
this Announcement:

(i) there not having arisen any adverse change or deterioration in the 
business, assets, financial or trading position or profits of ARCON or 
any member of the Wider ARCON Group (save to an extent which would not 
be material (in value terms or otherwise) in the context of the Wider 
ARCON Group taken as a whole);

(ii) no litigation, arbitration proceedings, prosecution or other legal 
proceedings to which any member of the Wider ARCON Group is or would 
reasonably be expected to become a party (whether as plaintiff or 
defendant or otherwise) and no investigation by any Third Party against 
or in respect of any member of the Wider ARCON Group having been 
instituted or remaining outstanding by, against or in respect of any 
member of the ARCON Group (save where the consequences of such 
litigation, arbitration proceedings, prosecution or other legal 
proceedings or investigation are not or would not be material (in value 
terms or otherwise) in the context of the Wider ARCON Group taken as a 
whole);

(iii) no contingent or other liability existing or having arisen which 
would reasonably be expected to affect adversely any member of the Wider 
ARCON Group (save where such liability is not or would not be material 
(in value terms) in the context of the Wider ARCON Group taken as a 
whole); and

(iv) no steps having been taken which are likely to result in the 
withdrawal, cancellation, termination or modification of any licence, 
consent, permit, Access Right or authorisation held by any member of the 
Wider ARCON Group which is necessary for the proper carrying on of its 
business and which is material in the context of the Wider ARCON Group;

(j) except as disclosed, Lundin Mining not having discovered that any 
financial, business or other information concerning the Wider ARCON 
Group which is material in the context of the Wider ARCON Group taken as 
a whole and which has been publicly disclosed, is materially misleading, 
contains a material misrepresentation of fact or omits to state a fact 
necessary to make the material information contained therein not 
misleading (save where the consequences thereof would not be material 
(in value terms or otherwise) in the context of the Wider ARCON Group 
taken as a whole);

(k) except as disclosed and/or save as publicly announced (by delivery 
of an announcement to the Irish Stock Exchange or the London Stock 
Exchange or otherwise publicly disclosed in the ARCON Group annual 
report for the year ended 31 December 2003) by ARCON on or prior to the 
issue of this Announcement, Lundin Mining not having discovered:

(i) that any member of the Wider ARCON Group or any partnership, company 
or other entity in which any member of the Wider ARCON Group has an 
interest and which is not a subsidiary undertaking of ARCON is subject 
to any liability, contingent or otherwise (save where such liability is 
not or would not be material (in value terms or otherwise) in the 
context of the Wider ARCON Group taken as whole);

(ii) in relation to any release, emission, discharge, disposal or other 
fact or circumstance which has caused or reasonably might impair the 
environment or harm human health, that any past or present member of the 
Wider ARCON Group has acted in material violation of any laws, statutes, 
regulations, notices or other legal or regulatory requirements of any 
Third Party (except where the consequences thereof would not be material 
(in value terms or otherwise) in the context of the ARCON Group, taken 
as a whole);

(iii) that there is, or is likely to be, any liability, whether actual 
or contingent, to make good, repair, reinstate or clean up any property 
now or previously owned, occupied or made use of by any past or present 
member of the Wider ARCON Group or any other property or any controlled 
waters under any environmental legislation, regulation, notice, 
circular, order or other lawful requirement of any relevant Authority 
(whether by formal notice or order or not) or Third Party or otherwise 
(save where such liability is not or would not be material (in value 
terms or otherwise) in the context of the ARCON Group taken as a whole); 
and

(iv) except as disclosed, that circumstances exist at the date the offer 
is made which are likely to result in any actual or contingent liability 
to any member of the Wider ARCON Group under any applicable legislation 
referred to in sub-paragraph (iii) above to improve or modify existing 
or install new plant, machinery or equipment or to carry out any changes 
in the processes currently carried out (save where such liability is not 
or would not be material (in value terms or otherwise) in the context of 
the ARCON Group taken as a whole);

(l) except as disclosed, no member of the ARCON Group being in default 
under the terms or conditions of any material facility or agreement or 
arrangement for the provision of loans, credit or drawdown facilities, 
or of any security, surety or guarantee in respect of any facility or 
agreement or arrangement for the provision of loans, credit or drawdown 
facilities to any member of the ARCON Group (save where such default is 
not or would not be so material (in value terms or otherwise) in the 
context of the ARCON Group taken as a whole);

(m) for the purposes of the conditions set out above:

(i) "ARCON Group" means ARCON and its subsidiaries and subsidiary 
undertakings;

(ii) "disclosed" means fairly disclosed by or on behalf of ARCON in 
writing (or in written form), to Lundin Mining or Macquarie or its 
respective employees, officers or advisers at any time up to 18 March 
2005 (being the date of this Announcement) or orally at formal due 
diligence meetings between representatives of Lundin Mining and ARCON;

(iii) "initial closing date" means 3.00 p.m. (Dublin time) on the date 
fixed by Lundin Mining as the first closing date of the Merger Offer, 
unless and until Lundin Mining in its discretion shall have extended the 
initial offer period, in which case the term "initial closing date" 
shall mean the latest time and date at which the initial offer period, 
as so extended by Lundin Mining, will expire or, if earlier, the date on 
which the Merger Offer become or are declared unconditional in all 
respects;

(iv) "initial offer period" means the period from the date of the Merger 
Offer Document to and including the initial closing date;

(v) "parent undertaking", "subsidiary undertaking", "associated 
undertaking" and "undertaking" have the meanings given by the European 
Communities (Companies: Group Accounts) Regulations, 1992;

(vi) "substantial interest" means an interest in 20 per cent or more of 
the voting equity capital of an undertaking;

(vii) "Wider ARCON Group" means ARCON or any of its subsidiaries or 
subsidiary undertakings or associated companies (including any joint 
venture, partnership, firm or company or undertaking in which any member 
of the Lundin Mining Group (aggregating their interests) is interested) 
or any company in which any such member has a substantial interest; and

(viii) "Wider Lundin Mining Group" means Lundin Mining or any of its 
subsidiaries or subsidiary undertakings or associated companies 
(including any joint venture, partnership, firm or company or 
undertaking in which any member of the Lundin Mining Group (aggregating 
their interests) is interested) or any company in which any such member 
has a substantial interest.

Subject to the requirements of the Panel, Lundin Mining reserves the 
right (but shall be under no obligation) to waive, in whole or in part, 
all or any of the above conditions apart from conditions (a) and (b).

The Merger Offer will lapse unless all of the conditions set out above 
have been fulfilled or (if capable of waiver) waived or, where 
appropriate, have been determined by Lundin Mining to be or to remain 
satisfied on the day which is 21 days after the later of: (i) the 
initial closing date, (ii) the date on which condition (a) is fulfilled 
or (iii) such later date as Lundin Mining may, with the consent of the 
Panel (to the extent required) decide. Except for condition (a), Lundin 
Mining shall not be obliged to waive (if capable of waiver) or treat as 
satisfied any condition by a date earlier than the latest day for the 
fulfilment of all conditions referred to in the previous sentence, 
notwithstanding that any other condition of the Merger Offer may at such 
earlier date have been waived or fulfilled or that there are at such 
earlier dates no circumstances indicating that the relevant condition 
may not be capable of fulfilment.

Part B: Illustrative Financial Effects of Acceptance of the Merger Offer

The following table sets out, FOR ILLUSTRATIVE PURPOSES ONLY AND ON THE 
BASES AND ASSUMPTIONS SET OUT BELOW, the potential financial effects of 
acceptance of the Merger Offer on capital value and gross income for an 
accepting ARCON Shareholder if the Merger Offer becomes or is declared 
unconditional in all respects.

/T/

(a) Increase in capital value                    Notes
Market value of 100 ARCON Shares                (i)         EUR 46.00

Cash Consideration for every 100
 ARCON Shares                                   (ii)        EUR 27.08
Value of 3.2196 Lundin Mining SDRs              (iii),(iv)  EUR 25.15

Total value of consideration                                EUR 52.23
Increase in capital value                                   EUR 6.23
This represents an increase in capital value
 of approximately                                           13.54%

(b) Increase in gross income                      Notes
Gross income on 100 ARCON Shares                 (v)        Nil

Gross income from 3 Lundin Mining SDRs           (vi)       Nil
Gross income from reinvestment of cash
 consideration                                   (vii)      EUR 0.95

Total gross income from consideration                       EUR 0.95
Increase in gross income                                    EUR 0.95

/T/

Notes:

(i) The value of one ARCON Share is based on the Closing Price per ARCON 
Share of EUR 0.46 on 16 March 2005 (being the latest practicable date 
prior to the issue of this Announcement).

(ii) The cash consideration is based on the euro equivalent per ARCON 
Share of US$0.362198 in cash per ARCON Share based on the US$/EUR 
exchange rate of US$1: EUR 0.74778 on 16 March 2005.

(iii) The value for the Lundin Mining SDRs is based on the Closing Price 
per Lundin Mining SDR of SEK71 on 16 March 2005 (being the latest 
practicable date prior to the issue of this Announcement) converted to 
euro based on the SEK1/EUR 0.11001 exchange rate on 16 March 2005).

(iv) This includes the value of any fractional entitlements to Lundin 
Mining SDRs which, under the terms of the Merger Offer, will be 
aggregated and sold in the market for the benefit of the relevant ARCON 
Shareholders.

(v) ARCON has paid no dividends.

(vi) Lundin Mining has paid no dividends. Fractional entitlements to 
Lundin Mining SDRs will not be allocated under the Merger Offer.

(vii) This is an illustrative reinvestment assumption only. The gross 
income from the re-investment of the cash consideration has been 
calculated on the assumption that the cash is re-invested so as to yield 
3.51% per annum, being the longest dated euro-denominated Irish 
Government bond with a maturity of April 2013, as obtained from the 
Financial Times on 16 March 2005 (the last practicable date prior to the 
issue of this Announcement).

(viii) No account has been taken of any potential liability to taxation.

(ix) No assumption has been made with respect to the Cash Alternative.

BASES AND SOURCES

(a) The information on the Lundin Mining Group in this announcement is 
extracted from the Annual Report and Accounts of Lundin Mining for the 
five years ended 31 December 2003 and the interim results for the twelve 
months ended 31 December 2004.

(b) The audited financial information on the ARCON Group is extracted 
from the Annual Report and Accounts of ARCON for the three financial 
years ended 31 December 2003 and the unaudited financial information on 
the ARCON Group is extracted from the preliminary results for the twelve 
months ended 31 December 2004.

(c) The value of the Merger Offer is based upon there being 173,938,282 
ARCON Shares in issue and 4,883,844 ARCON Shares issuable to holders of 
options under the ARCON Share Option Schemes in issue in each case as at 
16 March 2005 (being the last practicable date prior to the issue of 
this Announcement).

(d) As at 16 March 2005, there are 34,732,667 existing Lundin Mining 
Shares in issue. Following the compulsory acquisition of the remaining 
shares in NAN not owned by Lundin Mining, Lundin Mining is expected to 
have issued approximately 1,313,396 Lundin Mining SDRs to shareholders 
in NAN.

(e) The prices of existing Lundin Mining SDRs are sourced from the 
O-list of the Stockholm Stock Exchange, unless otherwise stated, and the 
prices of Lundin Mining Shares are sourced from the Toronto Stock 
Exchange, unless otherwise stated.

(f) The prices of ARCON Shares are sourced from the Official List of the 
Irish Stock Exchange, unless otherwise stated.

(g) All US$/SEK/StgPounds Sterling/EUR exchange rates for a particular 
time and/or date prior to the date of this Announcement are European 
Central Bank Euro Foreign Exchange Reference Rates, sourced from 
www.ecb.int.

(h) Amounts referred to in this Announcement as having been converted to 
euro as at 16 March 2005 have been converted at the following exchange 
rates:
 US$1: EUR 0.74778; and
 SEK1: EUR 0.11001.

APPENDIX II

Definitions

In this Announcement, unless the context otherwise requires the 
following expressions have the following meaning:

/T/

"Admission"            the admission of the Lundin Mining SDRs
                       created in connection with the Merger Offer to
                       the O-list of the Stockholm Stock Exchange and
                       the admission of the underlying Lundin Mining
                       Shares to the Toronto Stock Exchange becoming
                       effective;

"Access Rights"        all rights of access which are required by
                       ARCON to exploit the ARCON Mining Licences;

"ARCON"                ARCON International Resources P.l.c.;

"ARCON Group"          ARCON, its subsidiaries and associated
                       undertakings;

"ARCON Mining
 Licences"             the mining licences under which ARCON operates
                       at Galmoy mine, details of the principal terms
                       of which will be set out in the Offer Document;

"ARCON Planning
 Permissions"          the planning permissions granted to ARCON;

"ARCON Shareholders"   holders of ARCON Shares;

"ARCON Shareholding"   the ARCON Shares owned by an ARCON
                       Shareholder;

"ARCON Shares"         the existing issued and unconditionally
                       allotted, fully paid ordinary shares of EUR
                       0.10 each in the capital of ARCON and any such
                       further shares which may be issued and
                       unconditionally allotted prior to the date on
                       which the Merger Offer closes or, subject to
                       the Irish Takeover Rules, such earlier date as
                       Lundin Mining may decide and each an "ARCON 
                       Share";

"ARCON Share Option 
 Schemes"              means the ARCON 1986 Share Option Scheme 
                       (which has now expired) and the ARCON 1997 
                       Share Option Scheme;

"ARCON Share Options"  means options granted under the ARCON Share
                       Option Schemes;

"Australia"            the Commonwealth of Australia, its 
                       possessions, territories and all areas 
                       subject to its jurisdiction and political sub-
                       divisions thereof;

"Business Day"         a day, not being a Saturday or Sunday, on 
                       which the banks in Dublin and London are 
                       open for business;

"CAD$"                 Canadian dollars;

"Cash Alternative"     means the cash alternative facility referred 
                       to in this Announcement whereby all ARCON 
                       Shareholders may elect to receive an amount in
                       cash equivalent to the full value of the 
                       Merger Offer per ARCON Share in respect of the
                       first 1,000 ARCON Shares registered in each 
                       ARCON Shareholder's name;

"Cash Component"       US$36.2198 in cash which each holder of 100 
                       ARCON Shares, who validly accepts the Merger 
                       Offer, shall be entitled to receive under the
                       terms of the Merger Offer and so on in 
                       proportion for any greater or lesser number of
                       ARCON Shares held;

"Closing Price"        the official closing price or closing middle 
                       market quotation, as appropriate, of a ARCON 
                       Share as derived from the Official List or an 
                       Lundin Mining Share as derived from the 
                       official list of the Toronto Stock Exchange or
                       an existing Lundin Mining SDR as derived from 
                       the O-list of the Stockholm Stock Exchange;

"Common Share"         a common share without par or nominal value in
                       the capital of Lundin Mining;

"Davy Corporate 
 Finance"              Davy Corporate Finance Limited, a private 
                       limited company incorporated in Ireland;

"Directors"            the directors of ARCON or of Lundin Mining, as
                       the context so requires;

"Enlarged Group"       Lundin Mining Group as enlarged by the Merger
                       following completion of the Merger Offer;

"Euro" or "EUR" 
"cent" or "c"          the currency introduced on 1 January 1999 
                       pursuant to the treaty establishing the 
                       European Community;

"Fairfield"            Fairfield Holdings Limited, a private  
                       company incorporated in Cyprus and wholly 
                       owned and controlled by Sir Anthony 
                       O'Reilly;

"FSMA"                 the Financial Services and Markets Act 2000 of
                       the United Kingdom;

"Independent 
 Committee"            the committee of the Board of ARCON, comprises
                       of the Independent Directors, established for 
                       the purposes of considering and, if 
                       appropriate, recommending the Merger Offer;

"Independent 
 Directors"            the directors of ARCON other than Mr. Tony 
                       O'Reilly Jnr, Mr. James S. D. McCarthy, Mr. 
                       David Roxburgh and Mr. W. James Tilson;

"Indexia"              Indexia Holdings Limited, a private company
                       wholly owned and controlled by Sir Anthony 
                       O'Reilly;

"Initial 
 Announcement"         the announcement made by Lundin Mining and
                       ARCON relating to a possible offer, dated 
                       3 March 2005;

"Ireland"              Ireland, excluding Northern Ireland;

"Irish Stock 
 Exchange"             The Irish Stock Exchange Limited;

"Irish Takeover
 Rules"                the Irish Takeover Panel Act 1997, Takeover
                       (Amendment) Rules 2002 and the Irish Takeover
                       Panel Act 1997, Substantial Acquisition 
                       Rules, 2001 or any of them as the context may
                       require;

"Japan"                Japan, its cities and prefectures, territories
                       and possessions;

"Listing Rules"        means the Irish Listing Rules and the Listing
                       Rules of the UK Listing Authority;

"London Stock 
 Exchange"             London Stock Exchange plc;

"Lundin Mining"        Lundin Mining Corporation;

"Lundin Mining Group"  Lundin Mining, its subsidiaries and associated
                       undertakings;

"Lundin Mining SDRs"   Lundin Mining Swedish Depository Receipts, 
                       each of which represents one Common Share in 
                       Lundin Mining;

"Lundin Mining 
 Securities"           Lundin Mining Shares and Lundin Mining SDRs;

"Lundin Mining Share"  a Common Share;

"Macquarie"            Macquarie Bank Limited;

"Merger"               the proposed merger of Lundin Mining and 
                       ARCON;

"Merger Offer"         the recommended offer by Lundin Mining for the
                       ARCON Shares and (where the context so 
                       requires) any revision, variation or renewal
                       thereof and extension thereto;

"MT"                   metric tonnes;

"NAN"                  North Atlantic Natural Resources AB (publ);

"Offer Document"       the document detailing the terms and 
                       conditions of the Merger Offer to be 
                       circulated to ARCON Shareholders and for
                       information to holders of ARCON Share 
                       Options;

"Offer Period"         means the period commencing on 3 March 2005
                       (the date of the announcement of the possible
                       offer for ARCON by Lundin Mining) and ending 
                       on the initial closing date (as defined in 
                       paragraph (m)(iii) of Appendix I) or, if 
                       later, the time at which the Merger Offer 
                       becomes unconditional as to acceptances or 
                       lapses, whichever occurs first;

"Official Lists"       means the Official List of the Irish Stock
                       Exchange and/or the Official List of the UK 
                       Listing Authority as the context so requires;

"Panel"                the Irish Takeover Panel established under the
                       Irish Takeover Panel Act 1997;

"Participating 
 States"               participating member states of the European
                       Union as defined in Recital (2) of Council 
                       Regulation 974/98/EC;

"Preliminary 
 Results"              the unaudited consolidated results of ARCON
                       for the twelve months ended 31 December 2004
                       announced on the date of this Announcement;

"Receiving Agent"      Capita Corporate Registrars Plc;

"SDRs"                 Swedish Depository Receipts;

"Securities 
 Component"            the 3.2196 Lundin Mining SDRs which each 
                       holder of 100 ARCON Shares, who validly 
                       accepts the Merger Offer, shall be entitled 
                       to receive under the terms of the Merger Offer
                       and so on in proportion for any greater or 
                       lesser number of ARCON Shares held;

"SEK"                  Swedish kronor;

"StgPounds Sterling"   the lawful currency of the United Kingdom;

"Stock Exchanges"      the Irish Stock Exchange and the London Stock
                       Exchange;

"Stockholm Stock 
 Exchange"             Stockholmborsen;

"Support Agreement"    the agreement dated 17 March 2005 between 
                       ARCON and Lundin Mining in relation to expense
                       reimbursement, the principal terms of which 
                       are summarised in section 15 of this 
                       Announcement;

"UK Listing 
 Authority"            the Financial Services Authority of the United
                       Kingdom acting in its capacity as competent 
                       authority for the purposes of Part VI of FSMA;

"United Kingdom "
 or "UK"               the United Kingdom of Great Britain and
                       Northern Ireland;

"United States" 
 or "US"               the United States of America, its territories
                       and possessions, any state of the United 
                       States of America and the District of Columbia
                       and all other areas subject to its 
                       jurisdiction or any political subdivision 
                       thereof;

"US$"                  US dollars;

"US Securities Act"    the United States Securities Act of 1933, as 
                       amended, updated and superseded from time to
                       time;

/T/

Any references to "subsidiary undertaking", "associated undertaking" and 
"undertaking" have the meanings given by the European Communities 
(Companies: Group Accounts) Regulations, 1992.

Any reference to "subsidiary" has the meaning given to it by section 155 
of the Companies Act, 1963.

Any references to any provision of any legislation shall include any 
amendment, modification, re-enactment or extension thereof. Any 
reference to any legislation is to Irish legislation unless specified 
otherwise.

Words importing the singular shall include the plural and vice versa and 
words importing the masculine shall include the feminine or neuter 
gender.

-30-


FOR FURTHER INFORMATION PLEASE CONTACT:

Lundin Mining Corporation
Karl-Axel Waplan
Exec. V.P. Operations
+46 705 104 239
+46 8 545 074 71 (FAX)
Website: www.lundinmining.com

or

Lundin Mining Corporation
Sophia Shane
Investor Relations
+1 604 689 7842
+1 604 689 4250 (FAX)