Lundin Gold Inc. announced that the underground mine declines have reached the orebody, and level development has begun at its Fruta del Norte gold project in Ecuador. As at December 31, 2018 a total of 4.5 km of underground mine development had been achieved. The K'isa decline was completed on December 9, 2018, after 2.1 km of total development and transitioned to production level 1170. Production level 1195 began on December 7, 2018 and a total of 330 metres of level development on two levels has been completed. December average advance rates in K'isa were 9.0 m per day versus a target of 7.1 m per day. The Kuri decline is at 2,070 m of total development and is progressing towards lower production levels in the mine. This decline was completed this month. December average advance rates in Kuri were 5.0 m per day versus a target of 4.2 m per day. Overall, advance rates in both declines exceeded the plan by 11% due to better than expected ground conditions and lower than anticipated water inflows. Lundin Gold is preparing the first stages of transition to owner operations and its mining fleet has started to arrive at Fruta del Norte. The first group of mining operator trainees began the final part of their training program, which takes place on site. Process plant concrete foundations are 62% complete and structural steel erection is progressing as planned. The remaining mechanical equipment is expected to be on site in the first quarter and installation of the carbon-in-leach circuit and grinding mills has started. Commissioning of the process plant is still on track to begin in third quarter of this year.