3RD PARTY NEWS RELEASE
LION ONE METALS (LIO) Resource Opportunities initiated coverage of Fiji gold developer Lion One Metals on July 7, 2011. Gold was US$1,527 an ounce and Lion One shares traded for a dollar. The company's small but high-grade Tuvatu deposit on the main island of Viti Levu was described as an "exceptional gold exploration project in the midst of a region that hosts several large deposits." The nearest and most significant is the Vatukoula mine, about 40 kilometres to the northeast and along a trend of alkaline intrusive volcanics and epithermal gold deposits. Vatukoula is Fiji's largest gold mine andhas operated for more than 75 years, producing more than 7 million ounces of gold. Red Lion Management, owned by Lion One chairman and CEO Walter Berukoff, bought both the Vatukoula mine and Tuvatu in 2007, but he decided to sell Vatukoula to focus on Tuvatu. He funded the project privately to the tune of more than $3 million before taking Lion One public in early 2011. And the further you drill down into Tuvatu, the more interesting it gets. The property was formerly explored and developed by a previous operator of Vatukoula, which developed underground workings including a 600-metre decline and drilling stations. Following the approval of the mining lease on March 23, Lion One is in the unique position of having a mine at Tuvatu approved without having issued a PEA, PFS or FS (although the prior owner completed a feasibility study). Under Fiji's Mining Act, the mining lease is the final step in the permitting process. The mine has environmental approvals and Lion One has held over 240 meetings with local residents, landowners and stakeholders. Tuvatu is a high-grade, vein-hosted deposit with 39 veins averaging 2.2 metres wide in the resource model. At a cut-off grade of 3 g/t Au, Tuvatu's indicated resource comprises 1.1 million tonnes averaging 8.46 g/t gold, for 299,500 ounces, and an inferred resource of 1.5 million tonnes averaging 9.7 g/t for a further 468,000 ounces. There is also evidence of a gold porphyry system at Tuvatu and plenty of exploration upside on Lion One exploration leases, one of the reasons Berukoff hung onto the earlier-stage project. A preliminary economic assessment on Tuvatu is expected before the end of the month, and the price tag for a mine could be under $50 million, because of the amount of work done by previous owners. Lion One shares have already begun to run in anticipation, gaining 50%, or 16 cents, to 49.5 cents in the past 5 trading sessions. At a $30 million market cap, however, the stock remains cheap -especially if you think Lion One can finance a small producing mine and employ cash flow to build it. Having Berukoff as the chairman and CEO should help with the financing. If you've been a resource investor over the past 10 years, you've likely heard of Berukoff. And if you haven't heard of the man, you've heard ofhis projects. A mine builder who has played a major role in developing 20 mines in 7 countries, Berukoff is the founder and former CEO of Northern Orion Resources (sold for $1.1 billion to Yamana Gold in 2007), Miramar Mining (sold to Newmont for $1.5 billion in 2008) and La Mancha Resources, purchased by Egpytian group Weather II for $499 million in 2012. Lion One has the right kind of gold project - high-grade -and the appropriate development strategy for a bear market where the appetite for large, low-grade gold projects has dried up. Berukoff owns, directly and indirectly, and has control or direction over more than 33% of the stock, aligning his interests with other shareholders. We have a high degree of confidence in the management team and in Lion One's ability to finance a small mine at Tuvatu. Price: 49.5 cents Shares outstanding: 60,175,608 Fully diluted: 63,735,608 Market cap: $29.8 million Working capital: $5 million Company phone: 1-855-805-1250 (toll-free) Email: info@liononemetals