North Vancouver, B.C., Canada, and Perth, Western Australia: May 31, 2015 Lion One Metals Limited (TSX-V: LIO) (ASX: LLO) (OTCQX: LOMLF) (FSE: LY1), (“Lion One” or the “Company”) announces the completion of an independent Preliminary Economic Assessment (“the Study” or the “PEA”) for the Company’s 100% owned and fully permitted Tuvatu Gold Project located on the island of Viti Levu in Fiji (“Tuvatu” or the “Project”).
“The PEA for Tuvatu demonstrates robust economic potential for a fully permitted high-grade gold operation with low capital and operating costs, enabling rapid payback of capital even at current low gold prices,” stated Lion One Chairman and CEO Walter Berukoff. “We view Tuvatu as a near term
development and production opportunity in Fiji’s major goldfield, with long term production potential in our substantial tenement holding.”
PEA Highlights (all amounts are quoted in $USD utilizing a base case gold price of $1,200 per oz.)
- Pre-tax Net Present Value (NPV) of $117 million (5% discount rate) on the
current resource of the Tuvatu Project
- Pre-tax Internal Rate of Return (IRR) of 67%
- Pre-production capital costs of $48.6 million including 14.5% contingency; first gold production following development and construction period of 15 months
- Operating costs of $567 per oz.; all-in sustaining costs of $779 per oz.
- 1.5 year payback period, followed by production of 91,229 ounces in year 2
averaging 16.5 g/t Au, and 92,056 ounces averaging 14.40 g/t Au in year 3
- Gold production of 352,931 oz. at an average grade of 11.3 g/t Au; current
resource of 1.1 Mt Indicated at 8.46 g/t Au (299,500 oz.) and 1.5 Mt Inferred at 9.7 g/t Au (468,000 oz.) at a cutoff grade of 3.0 g/t Au

PEA Summary (reported in US$)
Project Life (Years) 7.4
Total Gold Produced (oz. Au) 352,931
Average Annual Production (oz. Au) 57,320
Capital Costs (millions) $48.6
Average Mining Cost ( per tonne) $76.50
Processing Costs (per tonne) $43.80
Mining Dilution 20%
Metallurgical Recovery 86.3%
Inferred resources as percentage of tonnage 55.1%
Inferred resources as percentage of ounces 62.7%

Summary Economics at US$1,200 per ounce Gold
Total LOM Undiscounted Revenue $423,516,000
Total LOM Pre-Tax Cash Flow $148,726,000
Average Annual Pre-Tax Cash Flow $33,222,000
Total LOM After-Tax Free Cash Flow $112,540,000
Average Annual After-Tax Free Cash Flow $20,079,000
Discount Rate 5%
Pre-Tax NPV $116,991,000
Pre-Tax IRR 67%
Pre-Tax Payback (Years) 1.25
After-Tax NPV $86,542,000
After-Tax IRR 52%
After-Tax Payback (Years) 1.50
Cash Costs per oz. Au $567
Cash Costs per oz. Au including Sustaining Capex $779
Mineral Resources
The PEA is based on an Indicated and Inferred mineral resource estimate by independent Qualified
Person Ian Taylor, BSc (Hons), MAusIMM(CP) of Mining Associates Pty Ltd. For further details, see the
Company news release dated June 4, 2014 and the technical report released July 9, 2014. A summary of
this resource (reported at a cut off grade of 3.0 g/t Au - highlighted) is as follows:
Cut off Indicated Resource Inferred Resource
g/t Au tonnes g/t Au oz. Au Tonnes g/t Au oz. Au
1.0 1,943,000 5.61 350,300 3,022,000 5.8 561,000
2.0 1,435,000 7.07 326,200 2,156,000 7.5 520,000
3.0 1,101,000 8.46 299,500 1,506,000 9.7 468,000
5.0 683,000 11.25 247,000 872,000 13.9 390,000

The summary review of geology, resource models, and estimates and the site visit were conducted by
Mr. Taylor, who visited the site from Feb. 25-28th, 2014. Mr. Taylor viewed the geological setting,
located some drill collars, and inspected drill core and sample storage.
Estimated Operating Costs
Operating Costs (per tonne milled) US$ per tonne milled
Mining Costs 76.50
Processing Costs 43.83
General & Administrative 19.49
Exploration 1.53
Direct Operating Costs before Taxes and Royalties 141.35
Operating Costs (per oz. Au) US$ per ounce Au
Mining Costs 243.98
Processing Costs 139.78
General & Administrative 62.16
Exploration 4.89
Refining & Transport 2.40
Royalty 114.00
Total US$ Cash Costs 567.21
Cash Costs Including All-in Sustaining Costs Per tonne at Mill Per oz. recovered
Onsite Mining 76.50 243.98
On-Site Processing 43.83 139.78
G&A 19.49 62.16
Exploration 1.53 4.89
Refining 0.75 2.40
Royalties 35.76 114.00
Total Costs 177.86 567.21
Capex 66.28 211.38
All-in Cash + Sustaining Costs 244.14 778.59

Capital Costs
Pre-Production Capital US$ (‘000s)
Capitalized Development 8,984
Mining Equipment 5,906
Processing 13,255
Infrastructure 7,578
Indirect Costs 2,564
EPC 2,064
Owner Costs 2,109
Contingency (14.5%) 6,142
Total US$ 48,603

All-inclusive pre-production capital is estimated at $48.6 million, including $27.6 million for the processing plant and surface infrastructure, and an added contingency and allowance for taxes and duties of $4.7 million. A further $26 million will be spent after the pre-production period as sustaining capital. LOM capital totals approximately $74.6 million, or $211 per ounce gold. Sustaining capital consists of capitalized waste development after the initial production start-up, major equipment purchases, and tailings facility development.
The capital cost (CAPEX) estimate includes all costs required to develop, sustain, and close the operation for an initial planned 6.2 year life of mine. The construction schedule is based on an approximate 15 month build period. The accuracy of this estimate is +-30%.
The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the PEA will be realized. Please see the important disclosure under “Cautionary Note Regarding the PEA” below.

Opportunities to Enhance Value
In addition to the favorable economic profile outlined in the PEA, there are numerous opportunities to enhance value in the project through further resource expansion and optimization work at Tuvatu.
- Additional infill drilling is recommended to upgrade Inferred Resources in the high grade areas of the Upper Ridges and Murau mineralized zones. It is anticipated that underground drilling in these zones could potentially extend down dip and along strike extensions of these zones and potentially increase the resource base.
- Further refinement of the processing circuit and metallurgical recoveries could enhance production values and metallurgical recoveries
- Stockpiling of mineralized material prior to processing could provide an advance source of mill feed
- Exploration outside the existing resource area but within the boundaries of the Mining Lease area has further discovery potential.
Risks
It is the conclusion of the Qualified Persons (QP) that the PEA summarized in this technical report contains adequate detail and information to support a potentially positive economic result. The PEA proposes the use of industry standard equipment and operating practices. To date, the QP’s are not aware of any fatal flaws for the Project.
The most significant potential risks associated with the Project are: uncertain knowledge of some
resource areas and the possible impact on mining method, dilution, scheduling, safety, etc., uncontrolled dilution, unforeseen scheduling delays, changes in regulatory environments, environmental compliance, operating and capital cost escalation, ability to raise Project financing, and gold prices. These risks are common to most mining projects, many of which can be mitigated through adequate engineering, planning, and proactive management.

Mining
Tuvatu is contemplated as an underground mine. To minimize dilution the envisaged mine plan utilizes shrinkage stoping, and produces a total of 1.13Mt of mill feed over the 6.2 year project production life.
The current mine plan focuses on achieving consistent mill feed production rates and mining higher grade material early in the production schedule. The current mine plan utilizes the existing decline enabling significant reductions in pre-production time and reduced capital development costs.
The proposed processing rate of 219,000 tpa was used along with underground design and deposit constraints to generate a detailed equipment list and mining fleet suitable for the LOM plan. The capital cost for this list is based on quotations from major suppliers. Mining costs were calculated from first principles using quotes from equipment and consumables suppliers, and Fijian and ex-pat labour rates.
Mine planning, production scheduling, capital and operating cost estimation for the Tuvatu Gold Project were conducted by AMC Consultants Pty Ltd (AMC). A site visit was undertaken by David Lee, AMC Principal Mining Engineer September 9th and 10th, 2014. During the visit Mr. Lee visited the Project site
and met with a number of potential suppliers and open pit mining contractors.
The Study considered Indicated and Inferred Mineral Resources. There are no Measured Mineral Resources. Inferred Mineral Resources comprise 55.1% of the mined tonnes and 62.7% of the contained ounces in the mine plan developed in this Study.
There are four main zones contained in the Mineral Resource model. Snake/Murau zone is steeply dipping and strikes east-west. The Tuvatu zone is steeply dipping and strikes north-west by south-east, and is located north of the Coreshed Fault. The SKL zone is shallowly dipping. The Upper Ridge zone is steeply dipping, striking north-south and contains over 80% of the conceptual production ounces.

Underground
Mine access will be via two main declines from surface, with a gradient of 1:7 and dimensions of 4.5 meters wide x 4.5 meters high. Access to the ore will be made from the main decline and two internal declines. Two ventilation raises to surface are included.
Level access drives are designed at 4.0 meters wide x 4.0 meters high and drawpoints at 3.5 meters wide x 4.0 meters high. These dimensions enable use of medium sized loaders for improved productivity and truck loading close to the stoping area. The primary mining method is shrinkage stoping (airleg method) with limited breast stoping (airleg method for shallow dipping lodes).

Geotechnical and hydrogeology
AMC was engaged for geotechnical study of the Tuvatu Project. This work involved data processing from 21 resource drillholes followed by an empirical analysis for underground designs. No site visit was undertaken by the geotechnical engineer and no dedicated geotechnical holes were drilled. Expected ground conditions can be described as "fair" to "very good". The majority of ground can be characterized as "good". Where geotechnical knowledge is uncertain, further investigation will be undertaken prior to any mining.

The standard shrinkage stoping panel size is based on a 60 m level interval and 60 m strike length. Sill pillars between the stope panels should be at least 6 m high.
The recommended standard ground support for development drives in good ground is friction bolts installed on a regular pattern. Areas where ground conditions are blocky will require surface support, such as welded wire sheet mesh.
Developing through and in the vicinity of the Coreshed Fault is expected to be challenging and require heavy ground support.
The hydrogeological study was undertaken by Knight Piesold Ltd. Limited information is available on hydrogeology. The rock mass itself, particularly in the fresh rock exposed in the Upper Ridges zone, is impermeable and dry. Significant water inflows are reported from a major fault, the Coreshed Fault, located on the northern end of the mineralization.

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The technical report will be posted on the Company’s website www.liononemetals a