Link for full...

Link for full article.
http://web1.kitco.com/pr/frame/index_base.html?http://web1.kitco.com/pr/1267/article_06292006090245.pdf

Very interesting to see the mention of Mehdiabad below. Lundin mining seem to have an appetitie for areas that we might think of as having a high degree of sovereign risk.

LUNDIN MINING SIGNS LETTER OF INTENT TO ACQUIRE
INTEREST IN THE OZERNOE ZINC/LEAD PROJECT IN RUSSIA
June 29, 2006 (TSX: LUN; O-List SSE: LUMI) Lundin Mining Corporation (“Lundin Mining” or the
“Company”) is pleased to announce that its wholly-owned subsidiary, Lundin Mining AB, has
entered into a letter of intent with IFC Metropol (“Metropol”), a Russian financial institution with
interests in both financial and industrial spheres, through Metropol’s 100% owned subsidiary, East
Siberian Metals, to acquire a 49% interest in the Ozernoe project, a zinc/lead deposit located in the
Republic of Buryatia in the Russian Federation. Lundin Mining’s consideration for its 49% interest
will be US$125 million. A preliminary assessment of the project contemplates development as a
conventional open pit mining operation. Indicated resources are estimated at 157 million tonnes
grading 5.2% zinc and 1.0% lead.
Karl-Axel Waplan, President and CEO of Lundin Mining, commented, “The Ozernoe project has the
capability of easily doubling our zinc production – we are very excited about the potential of this project and
entering the enormous Russian market. The deposit is of a major size and we are convinced that we can turn
the deposit into a commercial, highly profitable mining operation. We look forward to working with Metropol
on this project.”
Oleg Mikhailenko, CEO of East Siberian Metals, the mining subsidiary of IFC Metropol, commented, “We are
enthusiastic for having the opportunity to co-operate in this project with Lundin Mining, a company with
ambitious expansion plans. Developing Ozernoe into a profitable and technologically advanced mining
operation will be one of the largest greenfield project in mining in the post-Soviet Russia. We also look into
other projects in the region. These projects will also be extremely important in promoting economic
development and social welfare of the Republic of Buryatia. The combination of our local knowledge and
Lundin Mining’s expertise within exploration and mining forms a strong foundation for a successful venture.”
The letter of intent also stipulates that Lundin Mining has the right of first refusal (valid for 9 months starting
from May, 2006) with respect to the Kholodninskoye zinc project, which is currently controlled by Metropol.
Kholodninskoye is a zinc-lead-silver project located in the same region as the Ozernoe project. A project
definition study is underway.
Mr. Waplan, President of Lundin Mining, further commented, “The Ozernoe project is ranked as the sixth
largest zinc project in world in terms of in-situ value, Kholodninskoye is ranked number three and
Mehdiabad, another zinc project we have an interest in, is ranked number one – it is interesting to note that
we are in the process of acquiring and/or have an interest/option on three of the world’s top ranked zinc
projects.” (Source: Brook Hunt).