With this approval, the La Zarza concession moves from the exploration phase to the exploitation phase under Ecuador's mining law and permits Aurelian Ecuador S.A., the Company's wholly owned subsidiary, to enter into the Exploitation Agreement with the Government of Ecuador and to proceed with its plans to develop the Project. Lundin Gold President and Chief Executive Officer, Ron Hochstein, commented that, "The approval of the Phase Change Application for the La Zarza concession is another defining moment in the history of the Fruta del Norte Project. With the completion of the feasibility study and the forthcoming closing of the equity financing announced on June 27, 2016, Lundin Gold continues to make great strides towards the goal of building a high grade gold mine in Ecuador."