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Corp Stock Option by EveryAvenue


									Lundin Mining Corporation – Stock Option Plan

The purpose of the Corporation’s stock option plan (the “Plan”) is to secure for the
Corporation and its shareholders the benefits of incentive that are inherent in share
ownership by the directors, key employees and consultants of the Corporation and its
subsidiaries. In the judgment of Corporation’s board of directors, these persons are
largely responsible for the Corporation’s future growth and success. The granting of
options is intended to align the interests of these persons with that of the Corporation.

The Corporation’s initial Plan, prepared in accordance with the rules and policies of the
TSX Venture Exchange, was implemented by the Corporation’s board of directors on
May 15, 2003 and approved by the Corporation’s shareholders on June 11, 2003. At
the time, 750,000 options were reserved for issuance under the Plan. Following the
Corporation’s graduation to the Toronto Stock Exchange (the “TSX”), amendments
required to bring the Plan into compliance with the policies of the TSX were proposed
and approved at the May 31, 2006 annual and general meeting of the Corporation’s
shareholders, and the number of shares reserved for issuance was increased to
3,000,000. At the October 19, 2006 special meeting of the shareholders, the
shareholders approved a resolution increasing this number of 7,000,000 (now
21,000,000 as a result of the February 5, 2007 3:1 share split).

The following are certain provisions of the Plan relating to the granting and exercise of
stock options:

1.      The board of directors is responsible for the administration of the Plan and is
authorized to amend and rescind rules and regulations for carrying out the Plan. The
interpretation and construction of any provision of the Plan by the board of directors is
final and conclusive.

2.     The exercise price of options granted under the Plan is determined by the board
of directors in its sole discretion, provided that such exercise price shall not be less than
the market price, as defined in the Plan, prevailing on the day that the option is granted.

3.    Options will be exercisable over periods of up to ten years as determined by the
board of directors of the Corporation.

4.     The board of directors shall not grant options to any one person in any 12 month
period which will, when exercised, exceed 5% of the issued and outstanding shares of
the Corporation or to any one consultant or to those persons employed by the
Corporation who perform investor relations services which will, when exercised, exceed
2% of the issued and outstanding shares of the Corporation. Options are non-
transferable and non-assignable.

5.     Options shall be subject to vesting requirements, at the discretion of the board of
directors. The Plan provides that if a change of control, as defined in the Plan, occurs,
the board of directors of the Company, in its sole discretion, may determine that all

shares subject to options shall immediately become vested and may thereupon be
exercised in whole or in part by the option holder.

6.     Upon expiry of an option, or in the event an option is otherwise terminated for
any reason, the number of shares in respect of the expired or terminated option shall
again be available for the purposes of the Plan.

7.      If the option holder ceases to be a director of the Company or ceases to be
employed by the Company (other than by reason of death), or ceases to be a consultant
of the Company as the case may be, then the option granted shall expire on the 60th
day following the date that the option holder ceases to be a director, ceases to be
employed by the Company or ceases to be a consultant of the Company, or such longer
period as may be prescribed by law, subject to the terms and conditions set out in the
Plan, including the authority of the board of directors to revise any option granted under
the Plan. Options granted to an option holder who is engaged in investor relations
activities must expire within 30 days after the option holder ceases to be so employed. If
the option holder ceases to be a director of the Company, ceases to be employed by
the Company or ceases to be a consultant of the Company by reason of death, the
options terminate on the earlier of one year of the option holder’s death and the
expiration date of the options.      In the case of an Optionee being dismissed from
employment or service for cause, the Option shall terminate immediately upon receipt of
notice thereof and shall no longer be exercisable as of the date of such notice.

As at December 31, 2007 the Corporation reported the following information concerning
the continuity of incentive stock options issued and outstanding during 2007:

                                                        Number of          average
                                                           Options    exercise price
                                                          (Shares)          (CAD$)
 Outstanding, December 31, 2006                          3,038,266             5.11
 Granted during the year                                 4,905,760            12.55
 Granted in exchange for Tenke options - Note 5(a)          86,500             5.57
 Cancelled during the year                                  (9,521)            9.80
 Exercised during the year                             (1,903,177)             3.86
 Outstanding, December 31, 2007                          6,117,828    $       11.84

As at December 31, 2007 the following options were outstanding:

                         Outstanding Options                  Exercisable Options

                                Weighted                       Weighted
                                 Average Weighted               Average            Weighted
       Range of                Remaining  Average             Remaining             Average
        exercise    Number of Contractual Exercise Number of Contractual            Exercise
          prices       Options       Life    Price   Options        Life               Price
         (CAD$)    Outstanding    (Years)  (CAD$) Exercisable    (Years)             (CAD$)
  $2.28 - $5.79      187,068         2.1   $    3.41     187,068         2.1   $      3.41
 $5.80 - $10.59    1,350,000         3.9        9.68     757,232         3.5          9.53
$10.61 - $14.97    4,580,760         4.1       12.82   2,035,960         3.4         12.87
                   6,117,828         4.0   $ 11.84     2,980,260         3.3   $     11.43

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