09:30 EST Thursday, February 11, 2010

TORONTO, ONTARIO--(Marketwire - Feb. 11, 2010) - Lundin Mining Corporation ("Lundin" or the "Company") (TSX:LUN)(OMX:LUMI) today reported that it has entered into an agreement with Dagilev Capital Corp ("DCC") (TSXV: DCC.P) for the sale of the Salave gold project in northern Spain. At closing, Lundin Mining will receive an up-front payment of EUR 500,000 and 5,296,688 shares in DCC, representing 19.99% of the issued and outstanding shares of DCC. The Company will also be entitled to nominate one board member to DCC's Board of Directors. The Company will receive a future additional payment of EUR 20 million upon the receipt by DCC of all necessary approvals to construct and operate an open pit mining operation to produce a minimum of 800,000 ounces of gold. The sale is conditional on several factors being satisfied in addition to regulatory approvals. If underlying conditions are satisfied, the sale is expected to close on or about March 17, 2010.

Paul Conibear, Lundin Mining's Senior Vice President, Corporate Development said, "The Salave project is not core to Lundin Mining and we believe that by selling it to DCC we substantially enhance the prospect of this project being brought into production and thus generating full value for us."

The project was acquired by Lundin Mining in August 2007 through its purchase of Rio Narcea and assessed a fair value of EUR 35 million at that time. The Company is assessing the carrying value in relation to the fair value of the proceeds to be received at the date of closing and will record a write down to the carrying value as at December 31, 2009 to reflect any