Lundin Mining Corporation and Rio Narcea Gold Mines, Ltd. Enter Into Definitive Support Agreement in Connection With Cash Take-Over Bid by Lundin Mining for Rio Narcea

Lundin Mining Corporation (TSX: LUN)(AMEX: LMC)(SSE: LUMI) (Lundin Mining) and Rio Narcea Gold Mines, Ltd. (TSX: RNG)(AMEX: RNO) (Rio Narcea) announced today that they have entered into a definitive support agreement pursuant to which Lundin Mining will offer to acquire (the "Offer") all of the outstanding common shares of Rio Narcea (the "Shares") on a fully diluted basis and all of the outstanding warrants of Rio Narcea (TSX: RNG.WT) (the "Warrants") by way of a take-over bid for Cdn $5.00 cash per Share and Cdn $1.04 cash per Warrant. The consideration under the Offer represents a 22.90% premium over the 30-day weighted average trading price of Rio Narcea's Shares as at April 3, 2007 and a 3.7% premium to the closing price of the Shares of Rio Narcea on April 3, 2007.

The Board of Directors of Rio Narcea has unanimously determined that the offer is fair and will recommend that shareholders ("Shareholders") tender to the Offer. Rio Narcea's financial advisor has provided an opinion to the Board of Directors of Rio Narcea that the consideration to be received by the Shareholders under the Offer is fair from a financial point of view to such Shareholders. Each senior officer and each member of the Board of Directors of Rio Narcea has agreed to support the Offer and to tender their Shares to the Offer, which together with shares owned by certain trusts associated with directors and management, represents approximately 5% of the Shares.

Karl-Axel Waplan, President and CEO of Lundin Mining, commented, "This transaction is in line with our corporate goals to grow the Company, increase value for our shareholders and establish ourselves as the next major global mining house in the base metals sector. The acquisition will add production, cash flow, resources, and synergistic assets to the Lundin Mining portfolio while introducing nickel to the Lundin Mining commodity mix."

Chris von Christierson, Chairman and CEO of Rio Narcea, commented, "The Directors and management of Rio Narcea believe this is in the best interest of Rio Narcea and is a fair offer to all of our Shareholders. We are supportive of it."

Haywood Securities Inc. acted as financial advisor to Lundin Mining and McCullough O'Connor Irwin LLP are its legal advisors. The financial advisor to Rio Narcea is BMO Capital Markets and legal advisors are Fraser Milner Casgrain LLP.

Rio Narcea has entered into a support agreement with Lundin Mining that provides for, among other things, a non-solicitation covenant on the part of Rio Narcea, a right in favour of Lundin Mining to match any competing offers, and a non-completion fee payment of Cdn $25 million to be paid by Rio Narcea under circumstances.

A take-over bid circular containing the terms of the Offer will be mailed to Shareholders and Warrantholders (together with a Rio Narcea Board of Directors circular) and other related documents on or before April 18, 2007. The Offer, unless extended, will expire 36 days from its commencement.

In conjunction with the Offer, Lundin Mining has arranged a US $800 million senior credit facility, under usual conditions, with the Bank of Nova Scotia that is for general corporate purposes.

Concurrent with the Offer and contingent upon the success of the takeover bid, Red Back Mining Inc. (TSX: RBI) has signed an Option agreement with Lundin Mining to acquire the Tasiast gold mine from Lundin Mining in consideration for US $225 million in cash and assumption of US $42.5 million in debt related to the Tasiast gold mine.

About Rio Narcea

Rio Narcea Gold Mines, Ltd. is a Canadian mineral resource company with operations, development projects and exploration activities in Spain, Portugal and Mauritania. The Company currently produces nickel at its Aguablanca nickel-copper-platinum group metals mine in southern Spain. Construction of its Tasiast gold mine in Mauritania, West Africa, is well underway, with production expected to commence by mid 2007.

Aguablanca Nickel-Copper Mine

Rio Narcea holds a 100% interest in the Aguablanca nickel-copper-PGM deposit located approximately 100 kilometres north of Seville in the southern portion of Spain. Developed as an open pit mine, production began in 2005 becoming the first nickel sulfide mine in western Europe's highly prospective nickel sulfide belt. In 2006 the mine produced 14 million pounds of nickel at a cash cost of $4.23 per pound sold.

Tasiast Gold Mine

Rio Narcea holds a 100% interest in the Tasiast gold project which includes the Tasiast gold deposit under development as an open pit mine and exploration licenses encompassing 13,178 square kilometres.

Construction of the Tasiast gold mine is well underway with production start-up scheduled for the second half of 2007 at an initial rate of 108,000 ounces per year at an average grade of 3.25 g/t Au and estimated cash cost of US $260 per ounce.

Strategic Investments

Rio Narcea holds an approximate 20% equity interest in Chariot Resources Limited (TSX: CHD) which has a 70% interest in the Marcona copper project in Peru. Chariot has identified significant copper mineralization at the Mina Justa prospect and has initiated a scoping study on the potential of developing the deposit into an open pit mine with potential for underground expansion.