LUNDIN MINING LIMITED

LUNDIN MINING LIMITED

Previous company name
ARCON INTERNATIONAL RESOURCES LIMITED
Name change date
7/29/1992
Company Overview
The company, with registered head office located in Thurles, Ireland, is a holding business that owns and operates metal mining and exploration properties. It was incorporated in 1980. The company’s subsidiary Arcon Mines Limited is engaged in a program of appraisal and development planning of the Galmoy orebodies. This was facilitated by the granting of planning permission for the mine at Galmoy in April 1994. The group also produces hydrocarbons, and has interests in other properties abroad.
Business Summary
Arcon International plc and its subsidiaries are involved in the exploration and development of minerals and hydrocarbons on- and offshore.
Description and history
ACTIVITY:
Arcon International Plc is an Irish registered mining and mineral exploration company. The company operates the Galmoy Zinc Mine and carries out associated mineral exploration activities in Ireland and abroad.

HISTORY:
Arcon is the amalgamation of two Irish companies founded in 1980. These companies, Atlantic Resources Plc and Conroy Petroleum & Natural Resources Plc, were initially involved in off-shore oil exploration but became involved in mineral exploration in the mid-1980’s. These companies merged their operations in 1992 and changed the corporate name to ARCON International Resources Plc. The major focus of the Company since 1992 has been on the development of the Galmoy Zinc Mine, based in Co. Kilkenny.

In 1995, having secured final permitting for the Galmoy Mine, ARCON re-capitalized the business by way of a #43.8 million rights issue and a $60 million project financing facility. In 1997, a strategic decision was taken to divest the oil & gas interests of ARCON by way of an in specie distribution of shares to existing shareholders. As a result, the oil & gas interest is now held by Providence Resources Plc, an Irish listed company.

In March 1997, production commenced at the Galmoy Mine. Since mid 1995, ARCON has conducted a successful exploration program in Ireland resulting in an increase in reserves/resources by 60% to over 10 million tonnes.

Recommended Merger Offer by Lundin Mining Corporation:
The Directors of Lundin Mining announce that as at 3:00 p.m. (Dublin time), on 25 April 2005, valid acceptances of the Merger Offer had been received in respect of 159,354,205 ARCON Shares. This represents, in aggregate, approximately 91.61 per cent. of ARCON’s current issued share capital.

The Merger Offer has been extended for a further 14 days and will remain open for acceptance until 3:00 p.m. (Dublin time), on 9 May 2005.

The Offeror has commenced the compulsory acquisition procedures provided for in Section 204 of the Companies Act, 1963 to acquire any ARCON Shares in respect of which valid acceptances are not received under the terms of the Merger Offer.
Notices to non-accepting ARCON Shareholders were posted on 25 April 2005.

To ensure that ARCON Shareholders who have not yet accepted the Merger Offer receive their proceeds of the Merger Offer at the earliest possible date, they should complete and return the Form of Acceptance so as to be received as soon as possible and by no later than 3:00 p.m. (Dublin time), on 9 May 2005.

The consideration due under the Merger Offer in respect of acceptances that have been received and are complete in all respects will be dispatched within 14 days of receipt. The consideration due under the Merger Offer in respect of further
acceptances received up to 9 May, 2005 that are complete in all respects will be dispatched within 14 days of receipt.

ARCON has applied to the relevant authorities for ARCON Shares to be delisted and to the Irish and London Stock Exchanges for trading in ARCON Shares to be cancelled, each with effect from the commencement of trading on 12 May 2005.

Neither Lundin Mining nor any person deemed to be acting in concert with Lundin Mining owned or controlled any ARCON Shares (or rights over such shares) immediately before the commencement of the Offer Period or during the Offer Period; and neither Lundin Mining nor any person deemed to be acting in concert with Lundin Mining has acquired or agreed to acquire ARCON Shares (or rights over such shares) during the Offer Period.

The terms of the Merger Offer remain the same as set forth in the Offer Document and related acceptance materials previously distributed to ARCON Shareholders. Terms used in this announcement have the same meaning as those contained in the
Offer Document.
(Source : RNS announcements; www.arcon.ie)

Business Line
Holding business that owns and operates metal mining and exploration properties
Subsidiary
GALMOY MINES LIMITED
Advisor
KPMG
IPO date
3/4/1995
US SIC Code
1031
Company Address
Ballsbridge
90, Merrion Road
City province or state postal code
DUBLIN 4
Phone: +353 1 667 3063
Fax: +353 1 667 3065
Country address: IRELAND
Website url: www.lundinmining.com