FIJI GOLD LION ONE METALS Tuvatu Gold Project January 2016 Presentation
Disclaimer Forward Looking Statements and Qualified Person 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"). January 2016 Lion One Metals Limited 2
Tuvatu Gold Project One of the highest grade new gold projects in the world, fully permitted for production by the Government of Fiji Low capex of US$48.6 million* for underground gold project in SW Pacific goldfield Robust economics at current and lower gold prices, significant upside to increases in gold price Lead by an experienced mining entrepreneur and founder of three mining companies built and sold for C$3 Billion * Refer to PEA Technical Report dated July 14, 2015 Lion One personnel (L to R): Mr. Walter H. Berukoff, Chairman & CEO Mr. Moape Navia, Tuvatu Mine Manager Mr. Stephen Mann, Managing Director ASX: LLO :LOMLF January 2016 Lion One Metals Limited 3
Permits, Licenses, Locations Port of Lautoka 35 km Mining Lease 21 Year Surface Lease EIA & EMP Community Support Fiji Caldera 7M oz. Au Lion One Fiji office 15 km Tuvatu Nadi town center 20 km Mining License Area Exploration License Areas SML 62 10 km January 2016 Lion One Metals Limited 4
Processing Plant Design EPC quote for $25 million plant, through construction to commissioning; Throughput of 400 tonnes per day; 219,000 tonnes per year Two stage crushing & grinding followed by gravity concentration, flotation, and leaching; Extensive metallurgical testwork Tuvatu Plantsite Layout January 2016 Lion One Metals Limited 5
Mine Plan Average head grades of 11.3 g/t (diluted) Operating costs US$567 per oz. and all-in costs of US$779 per oz. 15 month development and preproduction schedule; 1.5 year payback on capital after tax Projected production of 352,000 oz. Au including 226,000 oz. Au in first 3 years; Projected revenues of US$423 million and cash flow of US$112 million after tax Projection of current decline 100 m Deposit consists of steep dipping parallel quartz veins, widths ranging from <1m to 8m; stopes averaging 60m x 60m x 2m vein average thickness January 2016 Lion One Metals Limited 6
Tuvatu Underground Mineralized zones accessible through existing decline decline Vein intersections of SKL Nasivi Zone Steep dipping veins of UR1 & UR2 Zone decline planned stope Existing underground includes 1,600 meters of decline, strike, and raise development January 2016 Lion One Metals Limited 7
High Grade Channels 20 m Select Channel Samples: SKL Nasivi Zone Drift Channels 3.03m @ 43.43 g/t Au 3.00m @ 50.52 g/t 3.40m @ 79.37 g/t 3.00m @ 83.85 g/t 3.60m @ 109.19 g/t Rib Channels 1.85m@ 26.47 g/t 2.10m @ 33.10 g/t 2.30m @ 50.06 g/t 3.10m @ 116.32 g/t 2.35m @ 290.60 g/t Select Rib Channels: UR1 & UR2 Zones 2.9m@ 12.18 g/t Au 2.3m @ 13.79 g/t 2.6m @ 14.14 g/t 2.9m @ 14.15 g/t 2.2m @ 14.51 g/t 2.5m @ 14.76 g/t 2.3m @15.58 g/t 2.05m @ 17.46 g/t 2.6m @ 33.99 g/t 2.6m @ 46.6 g/t 2.5m @ 72.47 g/t 2.2m @ 72.616 g/t 20 m 20 m January 2016 Lion One Metals Limited 8 Source: Emperor Gold Mining Co. (1998)
High Grade Gold Mines Around the World Mine Country Owner Grade g/t Reserve tonnes 000 Oz. Au Fire Creek USA Klondex 44.1 170 172,000 Macassa Canada Kirkland Lake 22.2 1,330 950,000 Kedrovka Russia Zapadnaya 22 380 269,000 Turquoise Ridge USA Barrick 16.9 10,932 5,943,000 Toguraci Indonesia Newcrest 16 1,000 514,000 Orcopampa Peru Buenaventura 15.8 630 321,000 Dvoinoye Russia Kinross 15 2,137 1,028,000 Pinson USA Atna 13.8 353 157,000 Midas USA Klondex 12.9 220 92,000 Pimenton Chile Cerro Grande 11.1 138 49,000 Ore reserves are Proven & Probable, except for Kedrovka, where A+B categories calculated Source: Mining.com article The world s highest grade gold mines Vladimir Basov July 16, 2015 January 2016 Lion One Metals Limited 9
Production Summary Project Production Summary Basis of Estimate Total tonnage 1,125,548 tonnes (dry) Average head grade 11.30 g/t Au per tonne Contained gold 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 Average annual production 57,320 oz. Au per year January 2016 Lion One Metals Limited 10
Robust Economics 33% IRR after tax @ $US 1,000 Gold 43% IRR after tax @ $US 1,100 Gold 52% IRR after tax @ $US 1,200 Gold US$86M NPV After tax @ US $1,200 Gold LIO: C$24 M Market cap 60M Shares@$0.40 ASX: LLO :LOMLF January 2016 Lion One Metals Limited 11
Walter H. Berukoff, CEO Notable Projects, Companies, and Transactions Include: (as founder & former CEO) Northern Orion acquired for $1.1B by Yamana Gold in 2007 - Mantua, Cuba - Agua Rica, Argentina Miramar acquired for $1.5B by Newmont in 2008 - Con, Hope Bay, NWT (T-Mac IPO 2015) La Mancha RTO of AREVA minerals assets in 2006 La Mancha acquired for $500M in 2012 - Frog s Leg & White Foil, Western Australia (Acquired by Evolution Mining for A$300M in 2015) - Hassai VMS, Sudan (La Mancha sold its 44% for US$100 million in 2015) - Ity Gold, Cote d Ivoire (55% acquired by Endeavour Mining for US$78M in 2015) Emperor Gold Mining Co. assets in Fiji acquired in 2008 January 2016 Lion One Metals Limited 12