Lion One Presentation - December 2016

FIJI GOLDTuvatu High Grade Gold Project

DECEMBER 2016

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 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 hereconjunction with all other disclosure in 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 Albert Siega, P.Eng ., an employee of the Company and a Qualified Person as defined by National Instrument “NI” 43-101 Standards of Disclosure for Mineral Projects .

VATUKOULAVATUKOULA

WAFI GOLPUWAFI GOLPU

PORGERAPORGERALIHIRLIHIR

PNGPNG

TECTONIC PLATEBOUNDARY

TECTONIC PLATEBOUNDARY

South PacificRing of FireLihir, Porgera, Vatukoula: Giant Volcanogenic Gold Systems

Lihir, PNG790 Mt @ 2.3 g/t Au(Newcrest)Porgera, PNG55 Mt @ 3.47 g/t Au(Barrick)Wafi-Golpu, PNG605 Mt @ 0.44 g/t Au(Harmony)Vatukoula, Fiji (VGM)21 Mt @ 6 g/t Au

Image: Viti Levu Gravity ContoursSource: 1996 Fiji Geophysical Survey

“The Emperor (Vatukoula) Mine sits within a true world class mineralization system… one of the 10 largest epithermal gold systems ever discovered”

WH Ireland Research, Jan. 4, 2012

7M OZ. AU OVER 80 YEARS4M OZ. RESOURCE REMAINS

HIGH GRADE GOLDFully Permitted Project; Mine Plan Includes 262,400 oz. Au @ 15.30 g/t Au through year 3

LOW CAPEX, LOW COST US$48.6M capex for 600 tonne per day operation Producing gold at cash costs of $567 per oz.; 18 month construction schedule

HIGH RATE OF RETURN 52% IRR on Initial Mine Plan; US$112 million cash flow at US$1,200 Gold; 18 months payback on capital

HIGH GRADE GOLDFully Permitted Project; Mine Plan Includes 262,400 oz. Au @ 15.30 g/t Au through year 3

LOW CAPEX, LOW COST US$48.6M capex for 600 tonne per day operation Producing gold at cash costs of $567 per oz.; 18 month construction schedule

HIGH RATE OF RETURN 52% IRR on Initial Mine Plan; US$112 million cash flow at US$1,200 Gold; 18 months payback on capital

TUVATU GOLD PROJECT

Tuvatu Mining LeaseExploration Tenements21 Year Surface LeaseEnvironmental ApprovalsEIA & EMP, Waste & WaterMine Management PlanCommunity Support

TUVATU: FULLY PERMITTEDFIJI: A MINING FRIENDLY JURISDICITONFIJI: A MINING FRIENDLY JURISDICITON

“Mining will take Fiji forward; Tuvatu is a model of what we can achieve economically,

socially and environmentally”

The Honorable Prime Minister of Fiji, Commodore Voreqe Bainimarama delivering his Tuvatu Mining Lease speech on January 27, 2016

The Honorable Prime Minister of Fiji, Commodore Voreqe Bainimarama delivering his Tuvatu Mining Lease speech on January 27, 2016

LEADERSHIP

WALTER H. BERUKOFF, Founder, Chairman & CEO

Red Lion Management

Real Estate, Agriculture, Metals, Mining

Founder of Miramar, Northern Orion, La Mancha Resources, Lion One

WALTER H. BERUKOFF, Founder, Chairman & CEO

Red Lion Management

Real Estate, Agriculture, Metals, Mining

Founder of Miramar, Northern Orion, La Mancha Resources, Lion One

STEPHEN MANN, Geologist, Managing Director

Past: BHP, Newcrest, Managing Director AREVA, Avocet Resources (U3o8) Discoveries include Frog’s Leg & White Foil Gold Deposits in WA

STEPHEN MANN, Geologist, Managing Director

Past: BHP, Newcrest, Managing Director AREVA, Avocet Resources (U3o8) Discoveries include Frog’s Leg & White Foil Gold Deposits in WA

RICHARD MELI, CA, Director

Past: Global Mergers & Acquisitions for Rio Tinto, SVP Kennecott, President La Mancha Resources

RICHARD MELI, CA, Director

Past: Global Mergers & Acquisitions for Rio Tinto, SVP Kennecott, President La Mancha Resources

KEVIN PUIL, CFA, DirectorPast: Analyst & Portfolio Manager, Gissen & Associates & Encompass Fund in San Francisco; Current Partner at RIVI Capital

KEVIN PUIL, CFA, DirectorPast: Analyst & Portfolio Manager, Gissen & Associates & Encompass Fund in San Francisco; Current Partner at RIVI Capital

LA MANCHA Acquired in 2012 for $500 Million by N. SawirisFrog’s Leg & White Foil, WA: sold to Evolution for A$300 million in 2015Hassai VMS, Sudan: 44% sold for US$100 million in 2015Ity Gold, Cote d’Ivoire: 55% sold to Endeavour for US$78 million 2015La Mancha now holds31% of Evolution Mining; 30% of Endeavour Mining

NORTHERN ORION Acquired in 2007for $1.1 Billion by YamanaMantua, CubaBajo de la Alumbrera, Argentina

MIRAMAR Acquired in 2008 for$1.5 Billion by NewmontHope Bay, NWT (T-Mac Resources IPO 2015)

LA MANCHA Acquired in 2012 for $500 Million by N. SawirisFrog’s Leg & White Foil, WA: sold to Evolution for A$300 million in 2015Hassai VMS, Sudan: 44% sold for US$100 million in 2015Ity Gold, Cote d’Ivoire: 55% sold to Endeavour for US$78 million 2015La Mancha now holds31% of Evolution Mining; 30% of Endeavour Mining

NORTHERN ORION Acquired in 2007for $1.1 Billion by YamanaMantua, CubaBajo de la Alumbrera, Argentina

MIRAMAR Acquired in 2008 for$1.5 Billion by NewmontHope Bay, NWT (T-Mac Resources IPO 2015)

(L): Lion One CEO Walter Berukoff (C): Lion One Lands Manager Moape Navia (R): Lion One Managing Director Stephen Mann(L): Lion One CEO Walter Berukoff (C): Lion One Lands Manager Moape Navia (R): Lion One Managing Director Stephen Mann

WORLD CLASS ASSETS & TRANSACTIONSWORLD CLASS ASSETS & TRANSACTIONS

20 YEARS IN THE MAKING Tuvatu developed by Emperor Gold Mines 1997-2000 during Ivanhoe era; Feasibility study completed on Tuvatu in 2000;Over 80,000 meters drilled, underground development, trial mining;Replacement value of sunk costs over $50 million

10 YEARS IN THE PLANNING2007-2008 Red Lion acquired Emperor Gold Mines (Vatukoula)2009 Emperor sold; Tuvatu acquired by Lion One Limited (Fiji)2011 Lion One Metals public offering TSX-V January 2011

6 YEARS OF EXECUTION Coming to Market in 2016 Fully Permitted & Well Funded

POISED FOR GROWTH

SIGNIFICANTLY DE-RISKED & DEVELOPMENT READY

CAPITAL STRUCTURE

$1.35 Warrants Expire March 16, 2018 Accelerated Expiry to 30 Days

Closing Price over $1.75 for 20 Days

PREVIOUS PRIVATE PLACEMENTS: 2011: C$11.5 million @ C$1.00 2011: C$14.2 million @ C$1.55 2016: C$38.2 million @ C$0.92

Institutional Ownership: 37% Management 21%

Current Price: C$1.00 Current Market Cap: C$100M

Common Shares:Warrants:Options:

Fully Diluted:

101,712,04441,536,4365,800,000149,048,480

AUGUST: ANSTEEL-CAPITALASIA EPCA Global Fortune 500 Corporation in 2015MOU for Construction of Tuvatu Gold ProjectIncludes Vendor Financing for 80% of Capex

SEPTEMBER: $38.2 MILLION PRIVATE PLACEMENTDonald Smith & Co.(USA)14%Franklin Gold & Precious Metals Fund (USA) 9.9%JP Morgan Gold Fund (UK) 5.88%MacKenzie Financial (Canada) 2.8%

RECENT NEWS

CapitalizedDevelopment:

$9.0 M

Mining Equipment

$5.9 M

Processing: $13.3M

Infastructure$7.6 M

Indirects$2.6 M

EPC:$2.1 M

Contingency:$6.1 M

Owner’s Costs:$2.1 M

Ansteel MOU: Vendor Financing for up to 80% of Project Value

C$38.2 Million Private Placement

LIO Can Fund 20% Obligation

Potential Proceeds from Exercised Warrants $56 million

Ability to Fund Aggressive Exploration, Drilling, and Resource

Expansion Programs

Ansteel MOU: Vendor Financing for up to 80% of Project Value

C$38.2 Million Private Placement

LIO Can Fund 20% Obligation

Potential Proceeds from Exercised Warrants $56 million

Ability to Fund Aggressive Exploration, Drilling, and Resource

Expansion Programs

FUNDING STATUS

PROJECT LOCATIONTUVATU MINING LEASE

LION ONE OFFICE

SABETO VALLEY ROAD16KM TO TUVATU

HIGH GRADE GOLDLow sulphidation epithermal gold system associated with alkaline volcanic intrusive;

Gold is non-refractory and amenable to conventional gravity flotation and leaching;

Veins extend over 600 m N-S; over 1km along strike;

39 veins identified (~2.2m to 9m width)outcropping at surface and extending laterally and to depth, only half fully reflected in the mine plan and current resource estimate.

Low sulphidation epithermal gold system associated with alkaline volcanic intrusive;

Gold is non-refractory and amenable to conventional gravity flotation and leaching;

Veins extend over 600 m N-S; over 1km along strike;

39 veins identified (~2.2m to 9m width)outcropping at surface and extending laterally and to depth, only half fully reflected in the mine plan and current resource estimate.

SIGNIFICANT DRILL INTERSECTIONS AT DEPTH INCLUDE:TUDDH 160: 3.65m @ 291.77g/t Au from 332m

TUDDH 123: 2.05m @ 13.74g/t Au from 308m




SIGNIFICANT DRILL INTERSECTIONS AT DEPTH INCLUDE:TUDDH 160: 3.65m @ 291.77g/t Au from 332m





DRILLING & DEVELOPMENT

TUVATU DECLINE

HIGH GRADE HIGHLIGHTS

Intervalm g/t au

2.701.803.452.501.903.25

16.2317.3117.4818.0618.1819.09

10-20 g/t Au

Intervalm g/t au

2.102.523.502.002.703.00

33.1033.1633.2135.5035.6836.04

20-40 g/t Au

Intervalm g/t au

2.403.303.403.003.452.95

74.8979.4779.3783.8584.8392.48

40-100 g/t Au

Intervalm g/t au

3.603.102.952.502.802.35

109.19116.32118.41122.65203.59290.60

>100 g/t Au

HIGH GRADE HIGHLIGHTSUNDERGROUND CHANNEL SAMPLING TUVATU DECLINE

TUVATU MINE PLAN

100M

PROJECTION OF CURRENT DECLINE

PROJECTION OF CURRENT DECLINE

100M

TUVATU UNDERGROUNDExisting decline includes 1,340 m of underground development to 240 m depth

Geometry of the steeply dipping parallel veins amenable to low cost shrinkage stoping and advance

Minimum widths in mine plan of 1.2 m plus 20% dilution at 5.0 g/t grade cutoff; Up to 8m widths

Potential to pay back capital on gold mined from the existing exploration decline in years 1-3

Cash Costs / All-in Sustaining Costs

Gold Production / Head Grades Through 7 Years

$567 $779

352,931 oz. @ 11.31 g/t Au

Gold Production / Head Grades Through 3 Years

262,386 oz. @ 15.30 g/t Au

DEVELOPMENT AGENDA

Dewatering, drilling, and development of existing decline

Commencement of mining, extracting, and stockpiling

Drive second decline from plant site; competent rock advance rate 100m per month; $2,250 per meter

Construction of processing plant:

Conventional two stage crushing & grinding with gravity concentrator, flotation and leaching

Dewatering, drilling, and development of existing decline

Commencement of mining, extracting, and stockpiling

Drive second decline from plant site; competent rock advance rate 100m per month; $2,250 per meter

Construction of processing plant:

Conventional two stage crushing & grinding with gravity concentrator, flotation and leaching

200m

Existing Decline

New DeclinePlant Site

AREAS UNDER LICENSE

TUVATU

NADIINTERNATIONAL

AIRPORT

LAUTOKA DEEPWATER PORT

ISLAND OF VITI LEVU, FIJI

UNDER APPLICATIONEXPLORATION LICENSEMINING LEASE

UNDER APPLICATIONEXPLORATION LICENSEMINING LEASE

NAVILAWA TENEMENT GEOLOGY

VATUKOULA:7 MILLION OZ. AU

HISTORIC PRODUCTION

TUVATU

NAVILAWA TENEMENT APPLICATION

NAVILAWA MONZONITE & MICROMONZONITE INTRUSIVE 5.50 KM FROM JOMAKI RIDGE TO BANANA CREEK

TUVATU RESOURCE AREA& MINING LEASE (SML 62)

NAVILAWA HISTORIC EXPLORATION

AREA UNDER APPLICATIONAREA UNDER APPLICATIONAREA UNDER APPLICATION

LION ONE TENEMENTSLION ONE TENEMENTS

NAVILAWA HISTORICEXPLORATION

Historic Geochemical Surface DataLion One Tenements

Exploration License

Mining Lease

MINING LEASE PROSPECTS

385 hectare Special Mining Lease; 21 Year Surface Lease

Contains current resource and infrastructure including tailings dam

Contains most significant exploration prospects in area

Room for expansion without further permitting

385 hectare Special Mining Lease; 21 Year Surface Lease




Discovery Underway at Jomaki Ridge; a densely veined zone between the contact of the monzonite intrusive and the surrounding volcanics


385 hectare Special Mining Lease

21 Year Surface Lease




JOMAKI RIDGE DISCOVERY

Rock chips to 125.5 g/t Au;

Channel samples of 11.9 g/t over 0.25m;

Strike of around 140 m;

Stockwork zone of high vein intensity.


Nubunidike Vein 30.75 g/t Au over 0.3m; Vein

traceable for 370m; Hornet Creek 6g/t Au over 0.5m; Vein traceable for

290m; 290 Vein 293.5 g/t over 0.15m With visible wire gold

Ura Creek2m wide shear zone outcropping

along 200m strike. Discovery outcrop 102 g/t over 0.40m Rock

chips up to 56 g/t Au; Channel samples up to 40 g/t over 0.15m

Jomaki RidgeRock chips to 125.5 g/t Au

Channels of 11.9 g/t over 0.25m; strike of 140m. Brecciated stockwork

zone of high vein intensity.

SABETO VALLEY NAVILAWA CALDERA

SABETO RANGE

TUVATU NORTH JOMAKI RIDGE

FULLY PERMITTED & DEVELOPMENT READY Building a solid revenue generator in a mining friendly jurisdiction with the ability to internally fund aggressive resource expansion and exploration in Fiji’s emerging Tuvatu goldfield

SCARSDALE EQUITIES – JUNE 2016We are initiating research coverage of Lion One with a Buy rating and price target of C$1.40 per share

WALTER H. BERUKOFF – PROVEN COMPANY BUILDERCredited with selling three mining startups he founded to major mining companies for $3 Billion in aggregate value.

RECAP

APPENDIX

TUVATU GOLD PRICE SENSITIVITIESON CURRENT MINE PLAN

REFER TO SEDAR FILED NI 43-101 PEA TECHNICAL REPORT DATED JULY 14, 2015

GOLD PRICEPER OZ.

PAYBACK

AFTER TAX (MONTHS)

NPV 5%

AFTER TAX

IRR

AFTER TAX

CASH FLOW

AFTER TAX (7 YEARS)1,000

1,100

1,200

1,300

1,400

1,500

33%

43%

52%

62%

71%

79%

24

21

18

16

15

13

45.22

65.50

86.64

107.79

128.93

149.94

62.37

87.05

112.66

138.26

163.87

189.30

1.0

3.0

5.0

CUT OFF

G/T AU1,943,000

1,101,000

683,000

TONNES 5.61

8.46

11.25

G/T350,300

299,500

247,000

OZ.AU3,022,000

1,506,000

872,000

TONNES5.8

9.7

13.9

G/T561,000

468,000

390,000

OZ.AU

INDICATED RESOURCE (DILUTED) INFERRED RESOURCE (DILUTED)

ACQUISITION TIMELINE

Tuvatu discovered

by Geopacific

Ivanhoe acquires majority

interest of Emperor

Emperor Gold Mines Acquired by

DRD

Emperor Gold assets sold by Red

Lion

Tuvatu Mining Lease

Granted Tuvatu EIA Completed

21 Year Surface Rights

Agreement Signed

1987 1997 2000 2004 2008 2011 2013 2014 2016

Tuvatu acquired

By Emperor Gold Mines

Tuvatu Feasibility

Study Completed

Emperor Gold assets acquired by

Red Lion

Tuvatu acquired by

Lion One Metals

z

Tuvatu was in the development pipeline of Emperor Gold Mines when all of the Fijian assets of Emperor were acquired in 2008 by Red Lion Management; Red Lion subsequently sold the Emperor gold mine to Vatukoula

Gold Mines and funded the acquisition of Tuvatu in a new company, Lion One Metals Limited, in 2011.

“In addition to the gold currently produced at Vatukoula, Emperor has identified a significant resource at Tuvatu, also located on the island of Viti Levu, where operations are expected to begin as early as 1999 at a capacity of more than 100,000 ounces of gold a year. The company is also continuing further exploration and is currently evaluating the potential for a low-cost underground mine near Fiji’s international airport at Nadi.” - 1997 Annual Report, Indochina Goldfields (Ivanhoe Mines)

HIGHEST GRADE GOLD MINES

VSOURCE: MINING.COM ARTICLE “THE WORLD’S HIGHEST GRADE GOLD MINES” VLADIMIR BASOV JULY 16, 2015

MINE COUNTRY OWNER GRADE G/T TONNES OZ .AU

Fire Creek

Macassa

Kedrovka

Turquoise Ridge

Toguraci

Orcopampa

Dvoinoye

Pinson

Midas

Tuvatu

Pimenton

USA

Canada

Russia

USA

Indonesia

Peru

Russia

USA

USA

Fiji

Chile

Klondex

KirklandLake

Zapadnaya

Barrick

Newcrest

Buenaventura

Kinross

Atna

Klondex

Lion One

Cerro Grande

44.1

22.2

22

16.9

16

15.8

15

13.8

12.9

11.3

11.1

170,000

1,330,000

380,000

10,932,000

1,000,000

630,000

2,137,000

353,000

220,000

1,125,000

138,000

172,000

950,000

269,000

5,943,000

514,000

321,000

1,028,000

157,000

92,000

352,000

49,000

Ore reserves are Proven & Probable, except for Kedrovka, where A+B categories calculated Resource Figures (not reserves) for Tuvatu based on production summary in 2015 PEA Technical Report

TUVATU PRODUCTION SUMMARY PROJECT PRODUCTION SUMMARY BASIS OF ESTIMATE

Total ore mined and process

Average head grade

Contained gold

Recovered gold

Average recovery

Production mine life

Nominal production rate

Average annual production

1,125,548 tonnes (dry)

11.30 g/t Au per tonne

408,958 oz. Au

352,931 oz. Au

86.3%

6.16 years

219,000 tonnes per year

182,802 tonnes per year

TUVATU BASE CASE ECONOMICS

REFER TO SEDAR FILED NI 43-101 PEA TECHNICAL REPORT DATED JULY 14, 2015

BASIS OF ESTIMATE (based on US$1,200 gold price) BASIS OF ESTIMATE

Revenue from gold

Total cash cost (excluding royalties)

Total cash cost (including royalties)

All-in costs

Capital expenditures (LOM)

Initial capital investment

$423 million

$453 per oz. Au

$567 per oz. Au

$778 per oz. Au

$78.60 million

$48.60 million

BASIS OF ESTIMATE

AFTER-TAX ECONOMICS

PRE-TAX ECONOMICS Free cash flow

Internal Rate of Return

Project NPV 5%

Payback period

Free cash flow

Internal Rate of Return

Project NPV 5%

$148.73 million

62%

$116.99 million

1.5 years

$112.54 million

52.3%

$86.54 million

TOP HIGH GRADE DRILL INTERCEPTS (21-40)

34.903.40

54.0053.00

211.50418.00209.7628.8037.75

307.107.63

162.701.10

115.00437.35147.4560.00

123.05107.85259.10

35.553.85554

212.15 418.5

210.26 29.1

38.35 307.6 7.73

162.95 1.95

115.5 437.8

147.85 61

123.25 108.05 259.5

TUG-013TUG-008TURC-174TURC-174

TUDDH-076TUDDH-160TUDDH-228

TUG-005TUG-001

TUDDH-207TUG-087

TUDDH-101TUG-1793

TUDDH-045TUDDH-176

TUG-077TURC-137TUG-081

TUDDH-078TUDDH-130

TUG560TUG10

TURC143175TURC143174

TU14392TU122500TU149537TU142477TU142022TU144019TUG5503TU15264TUG1795TU112548TU15912TUG6314TU136262TUG5257TU13226

TU127046

0.650.401.001.000.650.500.500.300.600.501.000.250.850.50 0.450.401.000.200.200.40

Hole ID Sample No. From m To m Length mg/t Au

156155155152150141141136133125121119117116116114114112110110

THANK YOULION ONE METALS LIMITED

311 WET 1ST STREETNORTH VANCOUVER, BC CANADA

TOLL FREE WITHIN NORTH AMERICA: 1 855.805 1250TEL 604 998 1250 | FAX 604 998 1253

E [email protected]

Stephen Mann, Managing Director (Perth, WA) 604 973 3007Hamish Greig, Vice President (Vancouver, BC) 604 973 3008Joe Gray, Investor Relations (Vancouver, BC) 604 973 3004

Lion One Presentation - December 2016

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Transcript of Lion One Presentation - December 2016