2. 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 .
3. VATUKOULAVATUKOULA
WAFI GOLPUWAFI GOLPU
PORGERAPORGERA
LIHIRLIHIR
PNGPNG
TECTONIC PLATE
BOUNDARY
TECTONIC PLATE
BOUNDARY
South Pacific
Ring of Fire
Lihir, Porgera, Vatukoula:
Giant Volcanogenic
Gold Systems
Lihir, PNG
790 Mt @ 2.3 g/t Au(Newcrest)
Porgera, PNG
55 Mt @ 3.47 g/t Au(Barrick)
Wafi-Golpu, PNG
605 Mt @ 0.44 g/t Au(Harmony)
Vatukoula, Fiji (VGM)
21 Mt @ 6 g/t Au
4. Image: Viti Levu Gravity Contours
Source: 1996 Fiji Geophysical Survey
“TheEmperor(Vatukoula)Minesitswithinatrueworld
classmineralizationsystem… one of the 10 largest
epithermal gold systems ever discovered”
WH Ireland Research, Jan. 4, 2012
7M OZ. AU OVER 80 YEARS
4M OZ. RESOURCE REMAINS
5. HIGH GRADE GOLD
Fully 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 GOLD
Fully 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
6. Tuvatu Mining Lease
Exploration Tenements
21 Year Surface Lease
Environmental Approvals
EIA & EMP, Waste & Water
Mine Management Plan
Community Support
TUVATU: FULLY PERMITTED
FIJI: 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
7. 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, Director
Past: Analyst & Portfolio
Manager, Gissen &
Associates & Encompass
Fund in San Francisco;
Current Partner at RIVI
Capital
KEVIN PUIL,
CFA, Director
Past: Analyst & Portfolio
Manager, Gissen &
Associates & Encompass
Fund in San Francisco;
Current Partner at RIVI
Capital
8. LA MANCHA
Acquired in 2012 for $500 Million by N. Sawiris
Frog’s Leg & White Foil, WA: sold to Evolution for A$300 million in 2015
HassaiVMS,Sudan:44%soldforUS$100millionin2015
Ity Gold, Cote d’Ivoire: 55% sold to Endeavour for US$78 million 2015
La Mancha now holds
31% of Evolution Mining;
30% of Endeavour Mining
NORTHERN ORION
Acquired in 2007
for $1.1 Billion by Yamana
Mantua, Cuba
Bajo de la Alumbrera, Argentina
MIRAMAR
Acquired in 2008 for
$1.5 Billion by Newmont
Hope Bay, NWT (T-Mac Resources IPO 2015)
LA MANCHA
Acquired in 2012 for $500 Million by N. Sawiris
Frog’s Leg & White Foil, WA: sold to Evolution for A$300 million in 2015
HassaiVMS,Sudan:44%soldforUS$100millionin2015
Ity Gold, Cote d’Ivoire: 55% sold to Endeavour for US$78 million 2015
La Mancha now holds
31% of Evolution Mining;
30% of Endeavour Mining
NORTHERN ORION
Acquired in 2007
for $1.1 Billion by Yamana
Mantua, Cuba
Bajo de la Alumbrera, Argentina
MIRAMAR
Acquired in 2008 for
$1.5 Billion by Newmont
Hope 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
9. 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 PLANNING
2007-2008 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
10. 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$0.90
Current Market Cap: C$90M
Common Shares:
Warrants:
Options:
Fully Diluted:
101,712,044
41,536,436
5,800,000
149,048,480
11. AUGUST: ANSTEEL-CAPITALASIA EPC
A Global Fortune 500 Corporation in 2015
MOU for Construction of Tuvatu Gold Project
Includes Vendor Financing for 80% of Capex
SEPTEMBER: $38.2 MILLION PRIVATE PLACEMENT
Donald 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
12. Capitalized
Development:
$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
14. HIGH GRADE GOLD
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.
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
TUDDH 176: 2.75m @ 26.24g/t Au from 496m
TUDDH 212: 2.00m @ 24.05g/t Au from 523m
TUDDH 100: 2.00m @ 305.07g/t Au from 253m
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
TUDDH 176: 2.75m @ 26.24g/t Au from 496m
TUDDH 212: 2.00m @ 24.05g/t Au from 523m
TUDDH 100: 2.00m @ 305.07g/t Au from 253m
18. PROJECTION OF
CURRENT DECLINE
100M
TUVATU UNDERGROUND
Existing 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
19. DEVELOPMENT AGENDA
Dewatering, drilling, and development of existing
decline
Commencementofmining,extracting,andstockpiling
Driveseconddeclinefromplantsite;competentrock
advancerate100mpermonth; $2,250permeter
Construction of processing plant:
Conventional two stage crushing & grinding with
gravity concentrator, flotation and leaching
Dewatering, drilling, and development of existing
decline
Commencementofmining,extracting,andstockpiling
Driveseconddeclinefromplantsite;competentrock
advancerate100mpermonth; $2,250permeter
Construction of processing plant:
Conventional two stage crushing & grinding with
gravity concentrator, flotation and leaching
200m
Existing Decline
New Decline
Plant Site
23. TUVATU RESOURCE AREA
& MINING LEASE (SML 62)
NAVILAWA HISTORIC EXPLORATION
AREA UNDER APPLICATIONAREA UNDER APPLICATIONAREA UNDER APPLICATION
LION ONE TENEMENTSLION ONE TENEMENTS
25. 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
Contains current resource and
infrastructure including tailings dam
Contains most significant exploration
prospects in area
Room for expansion without further
permitting
Discovery Underway at Jomaki Ridge; a
densely veined zone between the contact
of the monzonite intrusive and the
surrounding volcanics
26. 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
27. 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.
28. MINING LEASE PROSPECTS
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 Creek
2m wide shear zone out- cropping
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 Ridge
Rock 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.
30. 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 2016
We 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 BUILDER
Credited with selling three mining startups he founded to major mining companies for $3
Billion in aggregate value.
RECAP
32. TUVATU GOLD PRICE SENSITIVITIES
ON CURRENT MINE PLAN
REFER TO SEDAR FILED NI 43-101 PEA TECHNICAL REPORT DATED JULY 14, 2015
GOLD PRICE
PER 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 AU
1,943,000
1,101,000
683,000
TONNES
5.61
8.46
11.25
G/T
350,300
299,500
247,000
OZ.AU
3,022,000
1,506,000
872,000
TONNES
5.8
9.7
13.9
G/T
561,000
468,000
390,000
OZ.AU
INDICATED RESOURCE (DILUTED) INFERRED RESOURCE (DILUTED)
33. 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)
34. 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
35. 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
36. 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
39. THANK YOU
LION ONE METALS LIMITED
311 WET 1ST STREET
NORTH VANCOUVER, BC CANADA
TOLL FREE WITHIN NORTH AMERICA: 1 855.805 1250
TEL 604 998 1250 | FAX 604 998 1253
E INFO@LIONONEMETALS.COM
WWW.LIONONEMETALLS.COM
Stephen Mann, Managing Director (Perth, WA) 604 973 3007
Hamish Greig, Vice President (Vancouver, BC) 604 973 3008
Joe Gray, Investor Relations (Vancouver, BC) 604 973 3004