Lion One Signs Agreement for Sale of Olary Creek JV

North Vancouver, B.C., April 11, 2019. Lion One Metals Limited (TSX-V: LIO) (FSE: LY1) (LOMLF: OTCQX) (ASX: LLO) (“Lion One” or the “Company”) is pleased to announce it has agreed to sell its interests in the Olary Creek magnetite project in South Australia including its 51% tenement interest, a 47% interest in iron ore and manganese rights, and a 100% interest in other commodities.

Lion One considers this sale as a means to realise value from this non-core asset. Lion One will receive payments at certain stages during the course of time including:

a. 10% of all funds raised by the purchaser be paid to Lion One until funding specifically designated as funding for a Bankable Feasibility Study has been raised
b. A$1 million to be paid to upon funding designated for a Bankable Feasibility Study
c. A$3 million to be paid upon a Decision to Mine
d. A$3 million to be paid 18 months after a Decision to Mine

Additionally, and importantly, Lion One will retain a royalty of 1% FOB plus $A0.75 per tonne sold, or a 2% FOB royalty, on all iron ore or manganese concentrates extracted and sold from the Olary Creek tenement.

This agreement has the potential to deliver considerable future income to the Company through this royalty stream. The Olary Creek project currently contains a JORC and 43-101 compliant resource of 510 million tonnes of high grade magnetite with low impurities, but the Company considers only about 35% of the 7.5km highly magnetic mineralized target has been drilled to date

The purchasing group consists of two companies owned by Australian mining entrepreneur Gordon Toll, Lodestone Equities Limited and its subsidiary Olary Magnetite Pty Ltd, (collectively known as the Lodestone Group “LG”). Both companies and the Olary Creek project now form part of South Australia’s Braemar Bulk Export Project, a A$5 billion infrastructure corridor designed to transport magnetite concentrates from South Australia’s Braemar region to offshore loading and storage facilities near Adelaide, for shipment to steel manufacturers in Asia. Mr. Toll is the former Chairman of the Fortescue Metals Group.

Additional information about these companies may be accessed at the following website: //braemarinfrastructure.com/affiliated-companies.

Lion One signed a Joint Venture agreement with China’s Henan Yukuang in July 2013 for the exploration and development of the Olary Creek project, acquiring in the process a 22% participating interest, a 25% interest free carried to the completion of a feasibility study and decision to mine, and the option of, following completion of a feasibility study and within 90 days of a decision to mine, an option to either contribute to its proportional share of development expenditures, or convert its 25% interest to a 2% FOB royalty, or convert to a 1% FOB royalty with a $0.50 per tonne production royalty.
Henan Yukuang is an affiliated enterprise of the Henan Provincial Bureau of Geo-exploration and Mineral Development, a state-owned mining and mineral exploration company with corporate headquarters in Zhengzhou, Peoples’ Republic of China. Yukuang earned a 53% interest in the Project’s iron rights through a farm-in agreement with Lion One Australia Pty Ltd. Total joint venture expenditures to date exceed A$7 million.

The original joint venture for the Olary Creek Project was formed in 2010 between Avocet Resources and Perth-based HJH Nominees (“HJH”). In 2011 HJH signed a farm-in agreement with Henan to earn a 53% interest. In April 2012 the HJH/Henan partnership reached the $5,000,000 expenditure requirement for a combined 75% interest in the project with Avocet retaining a 25% interest. In July 2013 Avocet exercised its pre-emptive rights and acquired the 22% interest held by HJH for a 0.5% FOB royalty and negotiated new Farm-in, Joint Venture, and Split Commodity Agreements with Henan. Lion One acquired its interests in the Olary Creek project through the completion of its merger with Avocet Resources in June 2013.

Lion One has notified its current Joint Venture partner, Yukuang of its agreement to sell its interest in the project. Yukuang has a pre-emptive right, and has 45 days to inform Lion One whether it will exercise this right.

Olary Creek Overview
The Olary Creek Project (exploration license 5928) is located in South Australia 70 km southwest of Broken Hill, NSW, and 40 km south of the Barrier Highway. To the north of the area is an open access railway with direct routes to major capital cities and ports. The property is considered prospective for a range of commodities having previously been drilled for uranium and copper, and subsequently magnetite. The project contains several units of the Braemar Iron Formation, which are highly prospective for bulk magnetite deposits and is one of Australia’s emerging major iron ore exploration regions. Over 16,000 meters of diamond and RC drilling has been carried out by the joint venture parties to test zones of outcropping iron mineralization that extend along 7.5 kilometers of strike and have been observed to improve in grade and thickness with depth.

Olary Iron Project Resource Estimate Summary
Category Tonnage Fe % SIO2% Al2O3% LOI% S% P% DTR% Density
Indicated 214,000,000 26.3 40.8 6.9 3.9 0.029 0.24 26.4 3.12
Inferred 296,000,000 26.4 41.3 6.9 3.7 0.027 0.25 27.3 3.10

Table 1: Summary of Olary Iron Project Resource Estimate using cutoff grade of 20% Fe

Category Concentrate Tonnage DTR Concentrate Grades
Fe % SIO2% Al2O3% LOI% S% P%
Indicated 57,000,000 69.6 2.9 0.3 -3.1 0.008 0.01
Inferred 81,000,000 69.8 2.6 0.2 -3.1 0.009 0.008

Table 2: Davis Tube Recovery (DTR) test results and Fe content for the magnetic concentrate for composite RC and Diamond drillhole samples at grind size of 38 microns and 10% DTR cut-off grade

Qualified Persons
Stephen Mann P. Geo, Managing Director, is a “Qualified Person” as such term is defined in National Instrument 43-101 and has reviewed and approved the scientific and technical information included in this News Release.

About Lion One Metals Limited
Lion One Metals Limited is a Canadian exploration and development company focused on the exploration and development of its 100% owned and fully permitted Tuvatu Gold Project in Fiji. Lion One envisions a low-cost high grade underground gold mining operation with district-scale exploration upside, located near the Nadi International Airport on the island of Viti Levu in the South Pacific island nation of Fiji.

On behalf of the Board of Directors of Lion One Metals Limited
“Walter Berukoff”,
Chairman and CEO

Contact Investor Relations
Toll Free (North America) Tel: 1-855-805-1250
Email: info@nullliononemetals.com

Cautionary Note Regarding Forward-Looking Statements
This press release may contain “forward-looking information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects Lion One Metals Limited’s current beliefs and is based on information currently available to Lion One Metals Limited and on assumptions Lion One Metals Limited believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports, assessment reports, and other geological reports or prior exploration results. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Lion One Metals Limited or its subsidiaries to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the early stage development of Lion One Metals Limited, general business, economic, competitive, political and social uncertainties; the actual results of current research and development or operational activities; competition; uncertainty as to patent applications and intellectual property rights; product liability and lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting mining, timing and availability of external financing on acceptable terms; not realizing on the potential benefits of technology; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. Although Lion One Metals Limited has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information. Lion One Metals Limited does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Service Provider accepts responsibility for the adequacy or accuracy of this release.

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