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The Mean Girls star will play a lead role in the movie, which revolves around two competing renaissance fair troupes.
Also among the cast are Cary Elwes, Matthew Lillard, David Arquette, Orlando Jones and Molly Bryant.
It is Lohan's second film since leaving rehab last year.
According to E!, Lohan's mother has confirmed that the actress is in talks to appear in two other big screen projects.
More: Lindsay Lohan, Movies
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