lion one presenation september 2016

Tuvatu

Fiji Gold S E P T E M B E R 2 0 1 6

TSX-V:LIO

Recent News

2

$38.2 Million Institutional Private Placement - Donald Smith & Co.(USA)

- Franklin Gold & Precious Metals Fund (USA)

- JP Morgan Gold Fund (UK)

- MacKenzie Financial (Canada)

Ansteel-CapitalAsia EPC MOU Signed for Construction of Tuvatu Gold Project

US$45-55 Million Total Project Value EPC Includes up to 80% Vendor Financing

Ansteel: Global Fortune 500 Corporation in 2015

Growth Opportunity

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A high grade, low cost underground gold project with over

$50M previous development, de-risking, and sunk costs US$42.5 M capex for a 600 tonne per day mining and processing operation generating 260,000 oz. gold over first 3 years at head grades of 15.30 g/t Au 62% IRR and US$138 million cash flow over 7 years at US$1,300

gold; Short 18 month construction schedule and 16 month payback on capital; US$100 million cash flow through year 3 Growth upside on 385 hectare mining lease inside Fiji’s largest volcanic goldfield

Fully permitted by the Government of Fiji

Tuvatu Gold Project

Permitted for Production, Built for Growth

Our Strategic Objective:

Create a cash machine and build up

a multi-million ounce gold resource

Development Ready

4

Tuvatu: a fully permitted high grade

underground gold project in Fiji

Lion One CEO Walter Berukoff with Fiji PM Bainimarama Tuvatu Mining Lease Acceptance Ceremony

January 27, 2016

Mining Lease

21 Year Surface Lease

EIA & EMP Closure and Rehabilitation Plan

Mine Management Plan

Community Support

Capital Structure

5

ASX: LLO :LOMLF

• 101,712,044 Commons Shares

• 41,536,436 Warrants @ $1.35

• 5,800,000 Options

• 149,048,480 Shares Fully Diluted

Previous Private Placements:

• 2011: C$11.5 million @ C$1.00

• 2011: C$14.2 million @ C$1.55

• 2016: C$38.2 million @ C$0.92

Major Shareholders:

• Donald Smith & Co. 14%

• Franklin Gold and Precious Metals Fund 9.9%

• JP Morgan Gold Fund 5.88%

• MacKenzie Financial 2.8%

• Walter H. Berukoff 22%

Current Price: C$0.99

Market Cap: C$100M

Research Coverage 06.22.2016

Scarsdale Equities Target Price: C$1.40

Target Market Cap: C$168M

http://www.otcmarkets.com/marketplaces/otcqx

Asset Generators

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Walter H. Berukoff, Chairman & CEO Founder, Former Chairman & CEO of:

Northern Orion: acquired for $1.1 Billion by Yamana in 2007 - Mantua, Cuba

- Agua Rica, Bajo de la Alumbrera, Argentina

Miramar Mining: acquired for $1.5 Billion by Newmont in 2008 - Con Mine, NWT

- Hope Bay, NWT (T-Mac Resources IPO 2015)

La Mancha: acquired for $500 million by Naguib Sawiris in 2012 - Frog’s Leg & White Foil, WA (Acquired by Evolution for A$300 million in 2015)

- Hassai, Sudan (La Mancha sold 44% for US$100 million in 2015)

- Ity Gold, Cote d’Ivoire (55% acquired by Endeavour for US$78 million 2015)

Emperor Gold Mines Fiji assets acquired in 2008

Stephen Mann, Managing Director Geologist with over 35 years experience, former Managing Director of AREVA Australia. Successful discovery, development, and production track record for BHP, Newcrest, AREVA, and Avocet Resources in gold, coal and base metals. Discoveries includes Cadjebut Pb/Zn deposits, White Foil, Frogs Leg, Millrose gold deposits, Dawson Hinkler Uranium.

Lion One CEO Walter Berukoff (L) Lion One Lands Manager Moape Navia (C) Lion One Managing Director Stephen Mann (R)

Acquisition Timeline

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1987 1997 2000 2004 2008 2011 2013 2014 2016

Tuvatu discovered

by Geopacific

Tuvatu Feasibility

Study Completed

Emperor Gold assets

acquired by Red Lion

Tuvatu EIA

Completed Tuvatu Mining

Lease Granted

Tuvatu acquired

By Emperor Gold Mines

Tuvatu acquired by

Lion One Metals

21 Year Surface Rights

Agreement Signed

“In addition to the gold currently produced at Vatukoula, Emperor has identified a significant resource at Tuvatu,

also located on the island of Viti Levu, where operations are expected to begin as early as 1999 at a capacity of

more than 100,000 ounces of gold a year. The company is also continuing further exploration and is currently

evaluating the potential for a low-cost underground mine near Fiji’s international airport at Nadi.”

- 1997 Annual Report, Indochina Goldfields (Ivanhoe Mines)

Emperor Gold Mines

Acquired by DRD

Ivanhoe acquires majority

interest of Emperor

Emperor Gold assets

sold by Red Lion

TUVATU ACQUISITION Tuvatu was in the development pipeline of Emperor Gold Mines when all of the Fijian assets of Emperor were acquired in 2008 by Red Lion Management; Red Lion subsequently sold the Emperor gold mine to Vatukoula Gold Mines and funded the acquisition of Tuvatu in a new company, Lion One Metals Limited, in 2011.

Tuvatu Mine Plan

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100 m

Steeply dipping parallel veins amenable to low cost shrinkage stoping; widths range from <1m to 8m Minimum widths in mine plan of 1.2 m plus 20%

dilution at 5.0 g/t grade cutoff Stopes average 60m x 60m x 2m average vein thickness Drilling costs: US$300 / meter Underground development costs: US$2,250 / meter

Pre-Production CAPEX /

Contingency

$42.5 M

$6.1 M

Cash Costs /

All-in Sustaining Costs

$567

$779

Gold Production / Head Grades

Through 3 Years

262,386 oz.

@ 15.30 g/t Au

Gold Production / Head Grades

Through 7.4 Years

352,931 oz.

@ 11.31 g/t Au

Years 1- 3 Stopes

Projection of

current decline

100m

• Build ROM stockpile using existing decline to

access year 1 stopes;

• Extract 86,000 tonnes @ 10.40 g/t for 25,000

oz. Au at cost of US$47.52 per tonne;

• Drive 2nd decline from plant site portal

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Pre-Production Plan

200 m

10-20 g/t Au 20-40 g/t Au 40-100 g/t Au >100 g/t Au

g/t Au interval g/t Au interval g/t Au interval g/t Au interval

16.23 2.70 33.10 2.10 74.89 2.40 109.19 3.60

17.31 1.80 33.16 2.52 79.47 3.30 116.32 3.10

17.48 3.45 33.21 3.50 79.37 3.40 118.41 2.95

18.06 2.50 35.50 3.00 83.85 3.00 122.65 2.50

18.18 1.90 35.68 2.70 84.83 3.45 203.59 2.80

19.09 3.25 36.04 3.00 92.48 2.95 290.60 2.35

High Grade Highlights

Underground channel sampling

Plant site

Portal

New Decline

Existing Decline

Effect of Rising Gold Prices

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Refer to SEDAR filed NI 43-101 PEA Technical Report dated July 14, 2015

Gold Price per oz.

Margin per oz.

IRR After tax

Payback After tax

(months)

NPV5%

After tax

Cash Flow After Tax (7.4 Years)

1,000 433 33% 24 45.22 62.37

1,100 533 43% 21 65.50 87.05

1,200 633 52% 18 86.64 112.66

1,300 733 62% 16 107.79 138.26

1,400 833 71% 15 128.93 163.87

1,500 933 79% 13 149.94 189.30

“We have increased our gold price assumption to $1,500 in 2017” RBC Capital Markets “Global Gold Outlook” Report, July 13, 2016

Tuvatu Gold Price Sensitivities On Current Mine Plan

Cut off Indicated Resource (diluted) Inferred Resource (diluted)

g/t Au tonnes g/t oz. Au tonnes g/t oz. Au

1.0 1,943,000 5.61 350,300 3,022,000 5.8 561,000

3.0 1,101,000 8.46 299,500 1,506,000 9.7 468,000

5.0 683,000 11.25 247,000 872,000 13.9 390,000

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High Grade Gold Deposit

Low sulphidation epithermal gold system

associated with alkaline volcanic intrusive;

Veins extend over 600 m N-S; open at depth and

over 1km along strike;

39 veins in resource model with average width of

~2.2m, up to 9.0 m width;

1,340 m of underground development to 240 m

depth, incl. cross cuts, raises, and drill stations

Over 100,000 meters drilled

Significant drill intersections at depth include:

TUDDH 160: 3.65m @ 291.77g/t Au from 332m TUDDH 123: 2.05m @ 13.74g/t Au from 308m

TUDDH 176: 2.75m @ 26.24g/t Au from 496m



252.64 g/t over 4.22m returned from DDH 160

at vertical depth of 324m from surface

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Mine Country Owner Grade g/t Tonnes Oz. Au

Fire Creek USA Klondex 44.1 170,000 172,000

Macassa Canada Kirkland Lake 22.2 1,330,000 950,000

Kedrovka Russia Zapadnaya 22 380,000 269,000

Turquoise Ridge USA Barrick 16.9 10,932,000 5,943,000

Toguraci Indonesia Newcrest 16 1,000,000 514,000

Orcopampa Peru Buenaventura 15.8 630,000 321,000

Dvoinoye Russia Kinross 15 2,137,000 1,028,000

Pinson USA Atna 13.8 353,000 157,000

Midas USA Klondex 12.9 220,000 92,000

Tuvatu Fiji Lion One 11.3 1,125,000 352,000

Pimenton Chile Cerro Grande 11.1 138,000 49,000

Ore reserves are Proven & Probable, except for Kedrovka, where A+B categories calculated

Resource Figures (not reserves) for Tuvatu based on production summary in 2015 PEA Technical Report

Source: Mining.com article “The world’s highest grade gold mines” Vladimir Basov July 16, 2015

Highest Grade Gold Mines

Processing & Plant

Low sulphidation epithermal gold; non-refractory and amenable to

conventional gravity flotation and leaching;

Up to 40% recoveries by gravity; combined gravity/flotation recoveries of

86.30% used in latest update of feasibility study;

Two stage crushing & grinding followed by gravity concentration, flotation,

and leaching for optimal recoveries;

50% of capex is fixed cost EPC quote for plant, equipment, and

infrastructure, through design and construction to commissioning

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MOU with Ansteel announced – August 2016

CAPEX Summary

Capitalized

Development:

$9.0 M

Mining

Equipment:

$5.9 M

Processing:

$13.3 M

Infrastructure:

$7.6 M

Indirects:

$2.6 M

EPC: $2.1 M

Owner’s Costs:

$ 2.1 M

Contingency:

$6.1 M

US$48.6

Million

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15

Fiji Islands

PNG

Tectonic Plate

Boundary

South Pacific Ring of Fire

Porgera

Lihir

Vatukoula

Lihir, Porgera, Vatukoula: Giant Volcanogenic Gold Systems

Now Owned by Major Mining Companies

Lihir, PNG

790 Mt @ 2.3 g/t Au

(Newcrest)

Porgera, PNG

55 Mt @ 3.47 g/t Au

(Barrick)

Wafi-Golpu, PNG

605 Mt @ 0.44 g/t Au

(Harmony)

Vatukoula, Fiji (VGM)

21 Mt @ 6 g/t Au

Wafi Golpu

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Mining License Area Exploration License Areas

Port of Lautoka 35 km

Nadi town center 20 km

Lion One Fiji office 16 km

10 km

Project Location

Fiji Islands

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Navilawa Caldera

10 km

Project Location

Lion One Fiji office

Sabeto Valley Road 16km to Tuvatu

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Fiji’s Giant Gold Fields

Image: Viti Levu Gravity Contours Source: 1996 Fiji Geophysical Survey

7m oz. Au over 80 years 4m oz. resource remains

“The Emperor (Vatukoula) Mine sits within a true world class mineralization system… one of the 10 largest epithermal gold systems ever discovered”

WH Ireland Research, Jan. 4, 2012

“Lion One’s high-grade Tuvatu Gold Project is located in one of the great gold producing areas

of the world, with the potential to match the production of other long-lived gold mines on Fiji. We are initiating research coverage with a Buy rating (and price target of C$1.40)”

Scarsdale Equities Research, June 22, 2016

Fiji Islands

Mining Lease Prospects

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385 hectare Special Mining Lease

21 Year Surface Lease

Contains current resource and

infrastructure including tailings dam

Contains most significant

exploration prospects in area

Room for expansion without further

permitting


20

2.5 km


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Jomaki Ridge

Rock chips to 125.5 g/t Au

Channels of 11.9 g/t over 0.25m;

strike of 140m.

Stockwork zone of high vein

intensity.

Ura Creek

2m wide shear zone out-

cropping along 200m strike

Discovery outcrop 102 g/t over

0.40m Rock chips up to 56 g/t

Au; Channel samples up to 40

g/t over 0.15m

Nubunidike Vein 30.75 g/t Au

over 0.3m; Vein traceable for

370m; Hornet Creek 6g/t Au

over 0.5m; Vein traceable for

290m; 290 Vein 293.5 g/t over

0.15m With visible wire gold

About Fiji

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“Mining will take Fiji forward –

Tuvatu is a model of what we can achieve

economically, socially and environmentally”

The Honorable Prime Minister of Fiji, Commodore Voreqe

Bainimarama delivering his Tuvatu Mining Lease speech

January 27, 2016

Former British Colony,

independence gained in 1970;

current PM elected in 2014

Sugar exports and tourism are main

source of foreign exchange

Active government support for

mineral exploration and mining

industries, foreign investment

Gold mining industry dates to

1930’s; highly skilled local workforce and modern regulatory framework

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Project Production Summary Basis of Estimate

Total ore mined and processed 1,125,548 tonnes (dry)

Average head grade 11.30 g/t Au per tonne

Contained gold in mined ore 408,958 oz. Au

Recovered gold 352,931 oz. Au

Average recovery 86.3%

Production mine life 6.16 years

Nominal production rate 219,000 tonnes per year

Average annual production 182,802 tonnes per year


Tuvatu Production Summary

24

Basis of Estimate (based on US$1,200 gold price)

Revenue from gold $423 million

Total cash cost

(excluding royalties)

$453.21 per oz. Au

Total cash cost

(including royalties)

$567 per oz. Au

All-in costs $778.60 per oz. Au

Capital expenditures

(LOM)

$78.60 million

Initial capital investment $48.6 million

Basis of Estimate

Pre-tax economics

Free cash flow $148.73 million

Internal Rate of Return

(IRR)

67.1%

Project NPV 5% $116.99 million

Payback period 1.5 years

After-tax economics

Free cash flow $112.54 million

Internal Rate of Return

(IRR)

52.3%

Project NPV 5% $86.54 million

Payback period 1.50 years

Tuvatu Base Case Economics


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Hole ID Sample No. From m To m g/t Au Length m

TUDDH-160 TU122462 335.15 335.65 1614 0.50

TUDDH-100 TU120810 254.50 255.00 1185 0.50

TUDDH-348 TS3917 161.37 161.54 855 0.17

TUDDH-045 TU112546 114.00 114.50 463 0.50

TUG-013 TUG565 41.50 41.90 430 0.40

TUG-1849 TUG1852 1.70 2.10 346 0.40

TUG-056 TUG2665 103.60 104.00 334 0.40

TUG-112RO TUG113 1.50 1.70 295 0.20

TUDDH-045 TU112547 114.50 115.00 283 0.50

TUDDH-013 WKK11415 34.00 34.05 271 0.05

TUG-051 TUG2586 34.95 35.45 270 0.50

TUDDH-347 TS3606 124.04 124.13 248 0.09

TUG-062 TUG4558 56.9 57.20 209 0.30

TUG-067 TUG4472 66.35 67.20 193 0.85

TUG-327 TUG329 1.60 1.85 177 0.25

TUG-079 TUG3991 62.50 63.15 174 0.65

TUG-058 TUG4366 100.85 101.35 170 0.50

TUDDH-160 TU122461 334.16 335.15 167 0.99

TUG-099 TUG5608 57.95 58.48 167 0.53

TUDDH-057 TU113289 121.60 121.80 164 0.20

Top High Grade Drill Intercepts

Top High Grade Drill Intercepts (21-40)

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Hole ID Sample No. From m To m g/t Au Length m

TUG-013 TUG560 34.90 35.55 156 0.65

TUG-008 TUG10 3.40 3.8 155 0.40

TURC-174 TURC143175 54.00 55 155 1.00

TURC-174 TURC143174 53.00 54 152 1.00

TUDDH-076 TU14392 211.50 212.15 150 0.65

TUDDH-160 TU122500 418.00 418.5 141 0.50

TUDDH-228 TU149537 209.76 210.26 141 0.50

TUG-005 TU142477 28.80 29.1 136 0.30

TUG-001 TU142022 37.75 38.35 133 0.60

TUDDH-207 TU144019 307.10 307.6 125 0.50

TUG-087 TUG5503 7.63 7.73 121 1.00

TUDDH-101 TU15264 162.70 162.95 119 0.25

TUG-1793 TUG1795 1.10 1.95 117 0.85

TUDDH-045 TU112548 115.00 115.5 116 0.50

TUDDH-176 TU15912 437.35 437.8 116 0.45

TUG-077 TUG6314 147.45 147.85 114 0.40

TURC-137 TU136262 60.00 61 114 1.00

TUG-081 TUG5257 123.05 123.25 112 0.20

TUDDH-078 TU13226 107.85 108.05 110 0.20

TUDDH-130 TU127046 259.10 259.5 110 0.40

Disclaimer

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DISCLAIMER

The information provided in this presentation is not intended to be a comprehensive review of all matters and developments concerning the Company and should be read in conjunction with all other disclosure documents of the Company. The information contained herein is not a substitute for detailed investigation or analysis. No securities commission or regulatory authority has reviewed the accuracy or adequacy of the information presented.

FORWARD-LOOKING STATEMENTS

This presentation contains statements and information that constitute forward-looking information within the meaning of Canadian securities legislation, referred to herein as "forward‐looking statements", include statements regarding proposed exploration and development activities and their timing, resource estimates, exploration potential and the PEA, including estimates of capital and sustaining costs, anticipated internal rates of return, mine production, estimated recoveries, mine life, estimated payback period and net present values, opportunities to enhance the value of the Tuvatu Gold Project and other plans and objectives of the Company. In making the forward-looking statements herein, the Company has applied several material assumptions, including that (1) required approvals, permits and financing will be obtained; (2) the proposed exploration and development of the Company's properties will proceed as planned and that actual results will be consistent management’s expectations; (3) with respect to mineral resource estimates, the key assumptions and parameters on which such estimates are based; (4) market fundamentals will result in sustained metals and minerals prices; and (5) with respect to the PEA, the assumptions underlying the PEA, that the proposed mine plan and recoveries will be achieved, that capital costs and sustaining costs will be as estimated and that no unforeseen accident, fire, ground instability, flooding, labor disruption, equipment failure, metallurgical, environmental or other events that could delay or increase the cost of development will occur.

Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements, including: delays or inability to obtain required government or other regulatory approvals, permits or financing, the risk of unexpected variations in mineral resources, grade or recovery rates, of failure of plant, equipment or processes to operate as anticipated, of accidents, labor disputes, and unanticipated delays in completing exploration and development activities, the risk that estimated costs will be higher than anticipated and the risk that the proposed mine plan and recoveries will not be achieved, bad weather, exploration and development risks, actual results of exploration and/or development activities being materially different from those expected by management; uncertainties related to interpretation of drill results and geological tests, failure to meet expenditure and financing requirements, title matters, third party consents, operating hazards, metal prices, political and economic factors, competitive factors and general economic conditions. Actual results may vary from those implied or projected by forward-looking statements and therefore investors should not place undue reliance on such statements. The forward-looking statements herein are made as at the date of this presentation and the Company expressly disclaims any intention or obligation to update or revise any forward-looking statements except as required by applicable securities legislation.

TECHNICAL DISCLOSURE

The technical information in this presentation has been approved by Robert McLeod, P.Geo., a consultant to the Company and a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").

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LION ONE METALS LIMITED 311 West 1st Street,

North Vancouver, BC, Canada, V7M 1B5

Toll Free within North America: 1.855.805.1250

tel: 604.998.1250 fax: 604.998.1253

e: [email protected]

w: www.liononemetals.com

Stephen Mann, Managing Director (Perth, WA) Tel: 604-973-3007

Hamish Greig, Vice President (Vancouver, BC) Tel: 604-973-3008

Joe Gray, Investor Relations (Vancouver, BC) Tel: 604-973-3004

Toll Free IR Line (North America) Tel: 1-855-805-1250

Thank You

mailto:[email protected]

http://www.liononemetals.com/

lion one presenation september 2016

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