Lionsgold Regulatory News (LION)

2 February 2017

Kolar Gold Limited

("Kolar" or the "Company")

Proposed Change of Name

As announced in the Company's operational update on 18 January 2017, the Directors have undertaken a review of the name and branding of the Company to better reflect Kolar's more diversified interests since the current Directors joined the Board during the second half of last year.

The Board has, subject to shareholder approval, decided to change the name of the Company to Lionsgold Limited ("Lionsgold") (the "Name Change").

The name "Kolar Gold" is historically reflective of the Company's efforts in relation to the Kolar goldfields and its work in respect of Bharat Gold Mines Limited therefore the Directors believe the name no longer accurately represents the Company's wider initiatives.

Recently the Board has been focusing its Indian efforts on its strategic ownership position and relationship with leading India gold exploration and mine development company, Geomysore India Services Limited. In addition the Company has diversified its gold interests into Finland through its stake in the recently incorporated Kalevala Gold Oy, as well as the joint venture with TRAC Technology Limited to develop a gold holding and trading platform for the Indian market.

In anticipation of the Name Change the Company has reserved the ticker: 'LION' and the domain name www.lionsgold.com, both of which will go live when the Name Change takes effect.

Circular and Extraordinary General Meeting

The Company will tomorrow post a circular to shareholders providing further details of the Name Change and incorporating notice of an extraordinary general meeting to held on 23 February 2017, at which resolutions to effect the Name Change will be put to shareholders (the "Circular"). The Circular shall be available on the Company's website, www.kolar-gold.com once posted.

Cameron Parry, Chief Executive Officer, commented:

"Our new name, Lionsgold, reflects the Company's expanded outlook as well as our engagement with both India and the UK.

"With the symbol of the lion moving forward, Lionsgold better encompasses the positioning of the Company, the lion being a national symbol in both England and India, and more generally associated with strength, leadership and community. These characteristics are relevant to all of our ambitions, including Lionsgold's wider activities and the development of our Finland project.

"The future prospects for each of our core initiatives are extremely promising. Lionsgold now has the potential for the significant development of two gold producing assets, through our partnership with Geomysore in India, and our operating entity Kalevala Gold in Finland. Establishing a physical gold holding and trading fintech platform in India also has huge potential for growth and perfectly complements our gold exploration and mine development activities."

For further information, please visit www.kolar-gold.com or contact:

About Kolar Gold

Kolar Gold is an AIM-quoted India-Finland gold exploration company, that is also establishing an online exchange for the direct ownership and trading of physical gold by retail investors in India.

Kolar Gold's three pillars are:

· Strong partnership with leading India gold exploration and mine development company, Geomysore, in which the Company owns a 20.5% stake;

· Provide a physical gold holding and trading fintech platform for the Indian market; and

· Jurisdictional diversification through gold exploration and production in Finland.