Eagle Mine Site Visit May 15-16, 2014

Cautionary Statements

Caution Regarding Forward Looking Statements

This presentation contains forward-looking statements. These forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events. These forward-looking statements are subject to risks and uncertainties. These risks and uncertainties could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements.

Such risks may include, without limitation: risks and uncertainties relating to foreign currency fluctuations; risks inherent in mining including environmental hazards, unusual or unexpected geological formations, ground control problems and flooding; risks associated with the estimation of mineral resources and reserves and the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; the potential for and effects of labor disputes or other unanticipated difficulties with or shortages of labor or interruptions in production; actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; and commodity price fluctuations.

For further details of other risks and uncertainties see Risk Factors Relating to the Company’s Business in the Company’s Annual Information Form and in each management discussion and analysis.

Note: All dollar amounts are in US dollars unless otherwise denoted.

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Management Team

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Name Title

Background

Paul McRae Sr. VP Projects Lundin

• 40 yrs of underground & surface project execution • Project Mgr of Victor Mine in Western James Bay • Owner, EPCM, contractor – extensive experience in nickel

Mike Welch GM Eagle

• +25 yrs of exploration, projects and operations • +/-20 yrs with Falconbridge, XNi, Glencore • Certified Professional Geoscientist (APGO)

Ben Rose Chief Financial Officer

• 15 years of resource industry finance experience • Last 10 years with Rio Tinto in Aluminum, Coal, Copper and Corporate

roles

Jim French Director, HSE

• 20 years of HSE experience with Rio Tinto • Strength in both HS and environment • Set up the Eagle HS program

Bob Mahin Chief Geologist

• 24 years in exploration & geology - Western Mining Corp, Kennecott, Cleveland Cliffs, HudBay and Rio Tinto

• Certified Professional Geologist & QP for Mineral Resources

Management Team

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Name Title

Background

Kristen Mariuzza Manager, Environmental & Permitting

• 15 years in environmental regulations & permitting • Represented Michigan Dept of Environmental Quality (MDEQ) Water

Bureau in Michigan’s new mining legislation development

Matt Johnson Manager, External Relations

• State and Federal government policy development • Leadership planning , Relationships and Agreements

Steve Kirsch Manager, Mine Site

• 20 years underground mining experience • Worked for Rio Tinto at Diavik and Greens Creek in mine engineering,

planning and construction management roles.

Jeff Murray Manager, Mill Site

• 20 years mineral processing experience with 15 years in base metals. • Exposure to full mine lifecycle with particular focus on brownfield and

greenfield project work.

Darby Stacey Mine, Mill Technical Services

• Experience in base metal flotation design, test work & operations • Strong understanding of Eagle design

Table of Contents

•Overview

• Health & Safety

• Project Progress

• Operational Readiness

• Corporate Strategy

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OVERVIEW

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Eagle Overview

• High grade, low cost nickel and copper concentrate producer

• Very short payback period with start-up in Q4 2014

• Project well advanced

• All major permits in hand

• Good government and community support

7

Location

• Project located in Upper Peninsula of Michigan, US

• Eagle Mine is 28 mi (45 km) northwest of City of Marquette and 12 mi (20 km)

from Lake Superior

• Humboldt Mill is 25 mi (40 km) west of City of Marquette

• Mine and Mill are approximately 65 mi (105 km) apart via county roads

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Existing Trucking Route

9

Health, Safety, Environment and

Communities

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Health & Safety

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• Committed to Zero Harm - 2014 H&S Focus

– Rolling out Visible Felt Leadership

– Supporting Operational Readiness

– Establishing core H&S requirements

– Delivering simple processes

– Managing critical risks

Incident Classifications Year Desired YTD Actual

Fatal Injuries 0 0.00% 0%

Lost Time Injuries 1 0.09% 1%

MA/Restricted Injuries 3 0.90% 4%

Firs t Aid Injuries 13 9% 15%

Total Injuries 17

Damage Incidents 33

Near Miss Incidents 28

Prevention Measures 6 90% 80%

Total Injuries & Events 84

Current TRIF 1.31

F

LTI

MA / RWI

FA

Damage / Near Miss / Prevention Measures

Environmental & Permitting: Mine Site

• Eagle Mine has obtained all environmental permits required to begin

operations

• Renewals/reissuances will occur throughout the life of the mine per the

regulations

• Best in class environmental performance

– Comprehensive internal environmental monitoring program

– Community Environmental Monitoring Program

• Water management key driver in mine site design

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Environmental & Permitting: Mill Site

• Tailings management key driver in the mill site permitting and design

• Subaqueous disposal in historical open pit iron ore mine

• Existing tailings from previous operation

• Grout curtain/cutoff wall approved for operations

• Water Treatment Facility

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Community Scorecard 2013 Aggregated

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Project Progress

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Project Status

• Engineering

– Complete

• Procurement

– All equipment on site

• Commissioning Planning

– Mine facilities complete

– Mill commissioning target Q4/2014

• Capital expenditure

– $210m accrued to date with ~$191m remaining (as of 31 March, 2014)

• Construction

– Mill facilities 75% complete, on target (as of 31 March, 2014)

– Mine surface substantially complete

• Underground development – well advanced

Start Ramp-Up Q4 2014

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Project Capital Cost – 31 March 2014

Table below represents spend since time of acquisition of Eagle Mine by Lundin

(17 July 2013)

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$Millions 31 March 2014 Apr. 1 – To Completion Total

Mine surface 23 10 33

Mill 73 80 153

Product transport 7 7 14

Ore transport 8 33 41

Underground mine 12 22 34

EPCM 11 10 21

Owners 26 52 78

Subtotal 160 214 374

Contingency - 27 27

Total 160 241 401

All costs are on a cash basis – Eagle project payables at 31 March 2014 are $50 million

Operational Readiness

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Eagle Mine

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Eagle Resource and Reserves

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Reserve 000's

Tonnes Ni% Cu% Cu T

(000's)

Ni T

(000's)

Proven 1,649 4.2 3.5 55 69

Probable 3,677 2.5 2.1 78 93

Total 5,326 3.1 2.5 133 162

Resource

Measured 1,496 4.8 3.8 58 72

Indicated 3,315 3.1 2.5 84 102

Inferred 49 1.0 1.1 0.5 0.5

As of June 30, 2013

Mine Plan & Design - Underground

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• Mine: 2000 tpd longhole open stope mine with backfill

• Access: 2.8 mi (4,500 m) of lateral development

• Lower internal ramp: 1000m to lowest level - 145L. Switchback design to provide diamond drill access along strike

• Surfaces raises: Twin 560 ft. (170 m) raisebores for intake/egress and exhaust

• Production: Q4 2014

Mining

• Cementation

– Three year contract term with option to renew

– Includes development, production and backfill

– Unit rate based

– Onsite since Q4 2013

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Humboldt Mill

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Milling Process

Crushing

Crushing Grinding

Grinding

Bulk Float

Grind & Float

Thicken

& Press Ni & Cu

Concentrates

Metallurgy

Two Predominate Ore Types

• Massive Unit (MU)

– Pyrrhotite, pentlandite,

chalcopyrite

– Soft, high grade

• Semi-Massive Unit (SMU)

– Serpentine, talc, chlorites

and other silicates

– Harder, lower grade

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Metallurgy

High Level Design Criteria

• 2,000 tpd operation at 95% availability

• 3-stage crushing plant (8 hr/day, 7-day/week operation)

• Concentrator (24 hr/day, 7-day/week operation)

• Concentrate Load-out (8 hr/day, 7 days/week depending on production)

Straight Forward Processing Circuit

• Conventional flotation to produce separate Ni and Cu concentrates

• Expected average mill recovery is 82% nickel and 93% copper

• Flotation tailings thickened and deposited subaqueously in the existing

Humboldt tailings disposal facility

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Metal Concentrates

• Nickel concentrate grade is estimated at 11% and copper concentrate at 31%

• By-product credits include: Copper, cobalt, platinum, palladium, gold and

silver

• Storage capacity at site will be approximately 3,000 wmt for nickel

concentrates and 1,000 wmt for copper

• Concentrates will be railed directly to either Canadian smelters or to the ports

on the St. Lawrence, east or west coasts for overseas shipping

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LOM Production & Cost Profile

• Average Life of Mine (LOM) production of 17 ktpa Ni and 17 ktpa Cu at cash

costs (excl. royalties) of ~$2.50/lb Ni

• Average production in first three full years of 23 ktpa Ni and 20 ktpa Cu at

cash costs (excl. royalties) of under $2.00/lb Ni

• Approximately 8 year mine life (late 2014-2022) with upside potential

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2014 2015 2016 2017 2018 2019 2020 2021 2022 Total

Ore Tonnes (kt)

57.9 663.4 739.9 712.7 717.3 751.2 723.5 666.8 151.0 5,184

Ni (%) 4.09 4.21 4.08 3.64 2.65 2.32 1.94 1.82 1.70 2.93

Cu (%) 2.75 3.03 3.08 3.14 2.65 2.35 1.64 1.65 1.70 2.49

Annual Production Profile

• Average Life of Mine revenue percentage breakdown is as follows1:

• 71% Nickel; 23% Copper; 3% Platinum, 2% Cobalt, 1% Palladium, 1% Gold

1 Based on price assumptions used in the July 2013 43-101 Tech Report., which assume long-term prices of: $9.25/lb Ni, $3.00/lb Cu, $1820/oz Pt, $12.75/lb Co, $790/oz Pd and $1405/oz Au

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Expected Operating Costs

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Average $/t % of Total Cost

Mining Total: $67 51%

Transport & Processing:

Transportation (ore to mill) $14 10%

Processing $26 21%

Transport & Processing Total: $40 31%

G&A Total: $24 18%

Total Operating Cost $131/t 100%

• Average LOM Net Smelter Return is $456/t

Eagle Mine: Low-Cost Nickel Producer

• We estimate Eagle LOM C1 cash cost at $2.55/lb, which is in the lowest cost quartile

Eagle (est.)

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Operational Contracts

• Rail gondola car lease

– Complete

• Ore truck haulage (mine to mill)

– Complete

• Underground contract miner

– Complete

• Concentrate rail freight

– Complete

• Concentrate Offtake agreements

– Copper concentrate offtake concluded

– Nickel concentrate contracts partly committed

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Road & Rail

Transport of coarse ore

• 65 mi (105 km) contracted coarse ore haulage

• Approximately 44 truck round trips per day

• Significant budget for local road upgrades

Transport of concentrates

• Concentrate shipping via rail from Mill

• Approximately six nickel and two copper concentrate cars per day

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2014 Drilling Program

• Delineation drilling on 190 and 172 levels: complete

• Exploration drilling 2014: 9600 meters focusing on near-mine potential to add

to mine life and greenfields targets

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Plan View Eagle and Eagle East

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Eagle East

Eagle

Near Mine Exploration

• Eagle near mine exploration: targeting for massive sulphide “sill” extensions.

A little massive sulfide goes a long way.

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NS Section 431522 NS Section 431522

2012 New MSU Drill Intercepts

2012 New MSU Model Extensions

Previous MSU model

Eagle 2014 Exploration Targets

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Preliminary targets from previous geophysical surveys for follow-up ground gravity.

Geologic targets.

2 VD Airborne Mag

Proposed 3D Seismic Area

Eagle Near Mine

Eagle East MSU

Eagle East Feeder

1 km grid

MSU clast in basement

Eagle Reserves in Perspective

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0.1

1

10

1 10 100 1000 10000

Gra

de

(w

eig

ht

% N

i)

million tonnes

Ni deposits and districts - Total resources (past production+current resources)

Laterite Deposits Sedimentary Deposits Sulphide Deposits Sulphide Districts

Sudbury

Noril'sk

Duluth

Platreef

Merensky

Great Dyke

Mt Keith

Pechenga

Thompson

Voisey's Bay

Kambalda

Agnew

Raglan

Kabanga

Jinchuan

Ovoid

Eagle

Serovskoe

Punta Gorda

Murrin-Murrin

Goro

La Sampala

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QUESTIONS ?