Lionsgold Regulatory News (LION)

Lionsgold Limited

Lionsgold Limited ("Lionsgold", "LION" or the "Company"), the gold-focused exploration company with assets in India and Finland and a significant shareholder of a physical gold ownership online exchange, is pleased to announce the results of the Independent Valuation Report (the "Valuation Report") by Golder Associates Pty Ltd ("Golder") of the Indian gold exploration assets, excluding those at Jonnagiri, held by Geomysore Services India Pvt Ltd ("Geomysore") in which Lionsgold holds a 20.5% interest.

The Valuation Report undertaken by Golder comprises gold exploration areas held by Geomysore through either approved Prospecting Licence ("PL"), Prospecting Licence in Application ("PLA") or Mining Licences in Application ("MLA"), but excludes the value attributable to the Jonnagiri Project ("Jonnagiri"). As previously announced, Jonnagiri has a JORC-compliant resource of 361,000 ounces of gold and Geoymysore is conducting an economic feasibility study ("EFS") in respect of a 'decision to mine' and the building of an open pit gold mine at Jonnagiri in India, for which Geomysore has been granted a 30-year mining licence ("ML") to mine 365,000 tonnes of gold ore per annum. An update in relation to Jonnagiri Project and the EFS is set out below.

Golder has assessed Geomysore's gold exploration assets (excluding Jonnagiri) covering a total area in excess of 900km2. They comprise 36 PLs, PLAs and MLAs that predominantly cover greenstone belt areas in southern and central parts of India, with the main groupings of the licences and applications found in the Kolar and Jagular regions in the states of Andhra Pradesh and Karnataka respectively. Golder determined the total value of the gold exploration assets, excluding Jonnagiri, as follows:

In reaching its conclusions, Golder has relied on two specific valuation methodologies, namely a multiple of previous expenditure and comparable recent transactions on similar tenements. Golder applied a discount of between 20% and 30% to tenements under application (as opposed to granted Prospecting Licence) and an additional 20% to 30% discount was applied to those projects where resource delineation solely relied upon Geological Survey of India ("GSI") and other government exploration agencies and these resources are not JORC compliant.

Jonnagiri Update

The economic feasibility study in respect of Jonnagiri continues to make progress and the updated timing for completion of the EFS is late June. Whilst the study is being finalised, Geomysore has invited Expressions of Interest (EOI) for the appointment of a contracted Mine Developer and Operator (MDO) for the development and operation of the Jonnagiri Gold Project. The scope of the intended MDO will include: the design, development and operation of the Mine in accordance with the relevant Acts and Rules; the installation, commissioning, operation and maintenance of the gold ore processing plant and all related project infrastructures and site facilities; the management of over burden and tailing dumps and the delivery of processed gold to Geomysore; and assisting Geomysore in land acquisition and management (including community engagement), together with obtaining statutory clearances and the development of mine infrastructure including water and power structures as required for effective operation of the mines.

In light of the financial commitment of bringing Jonnagiri into production should the decision be taken to develop a mine, Geomysore considers it the most pragmatic path forward to becoming a gold producer whilst concurrently developing their other exploration projects. In doing so, it will prove its business model at Jonnagiri and start generating cash flow to then be deployed in the additional target areas within the Jonnagiri ML as well as development of the other gold prospects in the portfolio as described above.

India produces approximately 3 tonnes of gold per annum and consumes approximately 800 tonnes per annum. Jonnagiri has the potential to be India's first privately owned gold producing mine. To date, Geomysore has received four EOIs by contractors looking to provide the MDO services.

Cameron Parry, CEO of Lionsgold, commented: "We are pleased to announce the results of the independent valuation report conducted by Golder Associates on Geomysore's gold exploration assets, excluding Jonnagiri. Although Jonnagiri is the most advanced gold project and attracts the most attention from the market, it is important shareholders are also aware of the size and significant potential of other highly prospective areas within Geomysore's portfolio of assets. Based on the expected value determined by the Valuation Report prepared by Golder and Lionsgold's 20.5% equity ownership of Geomysore, this valuation gives an implied attributable value to Lionsgold of US$1.63 million. Against Lionsgold's current market capitalisation of £2.25 million this is a material amount.

"As stated, this figure excludes the value of Geomysore's most advanced project, Jonnagiri, and as well as our Finnish gold Joint Venture and the latent value of IndexGold, we believe this provides another element of distinct and significant value from which Lionsgold is able to benefit.

"The feasibility study on Jonnagiri is nearing completion and Geomysore is currently assessing third parties interested in contracting as the mine developer/operator, being one way to potentially address the CAPEX required should the EFS result in a decision to proceed to mine."

The information in this statement which relates to the Valuation is based on information compiled by Mr Peter Onley who is a part-time employee of Golder Associates Pty Ltd, and Fellow of the Australasian Institute of Mining and Metallurgy. Mr Onley consents to the publishing of the Valuation in the form and context in which it appears.

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About LIONSGOLD

Lionsgold is a London Stock Exchange AIM market quoted, gold-focused exploration company, with gold assets in India and Finland and a significantholding in aphysical gold and silver online vaulting and trading platform.

Lionsgold's three core focuses are:

· Strategic partnership with leading India gold exploration and mine development company, Geomysore, in which Lionsgold owns 20.5%;

· Physical gold holding and trading fintech platform for the UK, India and other jurisdictions; and

· Gold exploration and production in Finland.