Lion One Announces MOU for EPC Contract and Vendor Financing with Ansteel-CapitalAsia for Construction of the Tuvatu Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 24, 2016) - Lion One Metals Limited (TSX VENTURE:LIO)(ASX:LLO)(OTCQX:LOMLF)(FRANKFURT:LY1) (the "Company") is pleased to announce the signing of a non-binding Memorandum of Understanding (MOU) for an EPC Contract and Vendor Financing Agreement with Ansteel-CapitalAsia Global Engineering Inc. (the EPC Contractor, or Ansteel) covering a comprehensive Engineering, Procurement, Construction, and financing package for the development of the Company's 100% owned and fully permitted Tuvatu Gold Project in Fiji.

The scope of the EPC contract covers the design, construction, start-up testing, and commissioning of the Tuvatu gold processing plant. Ansteel will also furnish all materials, equipment, machinery, tools and consumables, provide quality control and administration, and will develop the Project Health and Safety Plan at the Project Site. In addition to the EPC Contract, Ansteel will also provide vendor financing for up to 80% of the anticipated value of the EPC Contract in the form of a Deferred Payment Amount of approximately US$39,000,000-$44,000,000. The Company will fund a minimum of US$10,000,000 or approximately 20% of the anticipated value of the EPC Contract. The Deferred Payment will be a senior secured obligation of the Company guaranteed by the Company's assets, to be serviced through a Deferred Payment Plan with 7% annual interest payable in quarterly installments. In connection with the Down Payment, Lion One will issue, subject to TSX-V approval, warrants in the amount of approximately 10% of the Loan Facility at a price of $1.42 per share for a period extending to the maturity date of the earlier of the final scheduled payment under the Deferred Payment Plan or 5 years from closing. Early repayment of the Deferred Payment Amount may occur any time without charge.

The Company and Ansteel will proceed to preparing definitive binding agreements for the transactions contemplated by the MOU, and are targeting completing the transaction in the fourth quarter of 2016.

The EPC Contractor, Ansteel-CapitalAsia Global Engineering Inc., is a JV company of Ansteel Group Engineering Technology Development Company Ltd and CapitalAsia Consulting (Canada) Inc. The Ansteel Group is based in Liaoning Province in northern China and is that country's largest iron ore miner and third largest steel maker, with a production capacity exceeding 38 million tons of raw steel and pig iron. Ansteel's steel unit is focused on products such as hot and cold rolled and galvanized steel sheets, color coating plates, silicon steel, wire rods, steel pipes, and large steel products widely used in automobile manufacturing, construction, ship-building, home electrical appliances, and in the manufacture of railways, pipelines, bridges, and power plants. The company operates several large iron ore mines and more than a dozen steel-rolling and steel production plants worldwide. Ansteel exports its products to over 30 countries including the USA, UK, Japan, and Australia, and is listed on the Hong Kong and Shenzen Stock Exchanges. In 2015 Ansteel was ranked number 451 on Fortune's Global 500 List.