Lionsgold Regulatory News (LION)

Lionsgold Limited

("Lionsgold", "LION" or the "Company")

Admission to Trading of Shares Update

Lionsgold (LSE: LION), the gold company focused on the exploration, production and retail application of physical gold, including the development of the physical gold currency "Goldbloc", is pleased to provide the following update.

Over the past several months, whilst the Company's shares have been suspended from trading on the London Stock Exchange AIM market "AIM", Lionsgold has been expanding its vision and developing its commercial plans to deliver its physical gold currency within mainstream banking networks. This proposition has evolved into a full-reserve banking platform combined with a hard currency, and the Company is nearing completion of refining its brand position and strategy to communicate the expanded scope. In addition, as part of Lionsgold's vertically integrated business strategy, the Company has been concurrently progressing its gold exploration and production interests.

Cameron Parry, Chief Executive Officer, commented: "The team at Lionsgold have been hard at work developing the Company's gold currency and banking platform. As the proposition has been developed over the past months, the opportunity and scope of the potential market has evolved considerably. We are in the process of finalising our brand positioning, product offering and B2B2C business model, during the current live testing phase, to maximise the Company's long-term commercial opportunity.

"The second half of the calendar year has been an exciting period for Lionsgold evolving its product and scalability, irrespective of the fact that LION shares have been suspended from trading.

"Concurrently during this period Lionsgold has been supporting and progressing our strategic mining interests in India and Finland, and we look forward to providing an update in regards to those projects over coming weeks.

"Since suspension to trading of LION shares, the Company has received injections of new capital through the exercise of warrants that were issued in placings conducted in 2017 and 2016, and Lionsgold continues to add to its tally of cash injections periodically through the exercise of the remaining balance of placing warrants due to otherwise expire by the end of this calendar year.

"Headcount at the Company is increasing and as we approach the launch of the hard currency product, further employees, contractors and developers are being added to the team, together with marketing, legal and regulatory professional support across multiple jurisdictions. 

"With regards to the re-admission to trading of Lionsgold's ordinary shares, we are working with our advisers toward the outcome of seeing the Company's shares being quoted once again on AIM. Due to the time necessary to evolve our core business, the readmission process will not be completed by 11 November 2018. As a result, in accordance with Rule 41 of the AIM Rules for Companies, the admission of Lionsgold's shares to trading on AIM will be cancelled with effect from 12 November 2018. This is obviously not ideal and we apologise to our shareholders for any angst this time off the market may cause. The Company plans to progress with its application to see our shares admitted to trading on AIM following, among other events, Lionsgold's AGM to be held in mid-December 2018.

"In addition to the Notice of AGM, updates will be released in the lead up to 12 November 2018 regarding Lionsgold's 100% owned fintech operations, its approximate 22% equity participation in India's leading gold exploration company, Geomysore Services (India) Private Limited, and Lionsgold's 30% joint venture ("JV") stake in Finnish gold exploration and production JV company, Kalevala Gold Oy."

Michael Corcoran, Chairman of Lionsgold, additionally commented: "As a result of the time required to methodically expand the business model and increase the potential market opportunity, recruit additional personnel and develop the product positioning, Lionsgold shares will be cancelled from trading on AIM on 12 November 2018. The Board remains committed to restoring the Company's shares to being quoted on AIM and is targeting a date in Q1 2019 for readmission. The Board apologises for the lack of liquidity for shareholders in the interim. The decision to prioritise establishing the expanded businsess proposion rather than seek an immediate return to the market was not one taken lightly but the Board is confident that these developments will ultimately deliver a superior result for shareholders and customers alike.

"The Board of Lionsgold thanks all of our shareholders for their patience during this period and we look forward to releasing further information to LION shareholders over the coming weeks that we believe will begin to explain the additional time taken to maximise the Company's commercial opportunity."

Overview

Subsequent to it being determined that Lionsgold had undertaken a fundamental change of business following the full acquisition of TRAC Technology Limited (now renamed Goldbloc Limited), on 11 May 2018 the Company's ordinary shares were suspended from trading under Rule 14 of the AIM Rules for Companies.

Since that time, Lionsgold has refined its business plan and corporate strategy to focus on its financial technology operating business coupled with strategic mining interests. The development undertaken at Lionsgold during the period has encompassed attracting additional personnel including to the board, which is in the process of being augmented. A further announcement relating to Director appointments is expected to be released prior to 12 November 2018.

The Company's core financial technology platform, being the gold currency known to date as "Goldbloc®" has evolved considerably and the Company has been working with a leading London advertising agency to develop the branding and consumer messaging to better communicate the purpose and benefits of the product and scope for future ambitions. A further update regarding the gold currency and full-reserve banking platform will be released to market prior to 12 November 2018.

EMD Agent

Further to the announcement of 7 November 2017, Lionsgold clarifies that its wholly owned subsidiary, Goldbloc Limited, is the entity named as EMD (Electronic Money Directive) Agent (Financial Conduct Authority Reference Number 902059) under the FCA-licensed E-Money Instituion, PayrNet Limited (FCA Reg. No. 900594.

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About LIONSGOLD Limited (LSE: LION)

Lionsgold is a London Stock Exchange AIM market quoted, gold-focused company involved in the exploration, production and retail application of physical gold, with gold assets in India and Finland and a wholly owned financial technology company developing the digital gold currency, "Goldbloc®".

Lionsgold's three core focuses are:

· Strategic partnership with leading India gold exploration and mine development company, Geomysore, in which Lionsgold holds 21.65%;

· Developing the digital gold currency "Goldbloc®" under its wholly owned financial technology subsidiary and 12.5% holding in banking platform developer Railsbank Technology Ltd, to enable customers to utilise direct ownership of physical gold as a currency via the international banking system; and

· Gold exploration and production in Finland via 30% ownership of Finnish joint venture.