Lionsgold : Financing

Lionsgold Limited

('Lionsgold', 'LION' or the 'Company')

Financing

Lionsgold (LON: LION), the AIM quoted company focused onthe exploration, production and retail application of physical gold, including thedevelopment of the Goldbloc digital currency, is pleased to announce details of a placing to provide funding for the advancement of the Company's operations.

Lionsgold aims to provide shareholders with dual stream opportunities in both natural resources and the gold-focused fintech and digital currency market.

The recent appointments of David Price as Chairman and Alan Davies as Global Strategy Consultant demonstrate the potential of LION's precious metals exploration and mining interests and provide the specialist skills needed to maximise our opportunities.

Lionsgold Chief Executive Officer Cameron Parry's experience creating and leading AIM quoted natural resource investor Metal Tiger plc (LON:MTR) and NEX Exchange quoted blockchain focused Coinsilium Group Limited (NEX:COIN) have provided a foundation for the management of a combined natural resources and fintech business.

Furthermore, with the appointees above, there is additional internal resource now available to pursue an acceleration of our mining and exploration interests. Progress is being made across these interests and further updates to the market are anticipated in due course.

Turning to the Company's fintech operations and notably the recent development of Goldbloc, progress has been good and has drawn interest from numerous third parties. This stems from the opportunity of providing Goldbloc within the extremely large pro-gold Indian market, and also for Goldbloc's potential for application in the global banking system.

To fund activities going forward, Lionsgold has raised gross proceeds of £550,000 through the placing of 68,750,000 new ordinary shares of no par value (the 'Placing Shares') at no discount to the prevailing market bid price of 0.8p each ('the Placing') with a 1 for 1 attaching warrant exercisable up to and including 31 December 2018 at 1.2p ('Placing Warrants').

Alan Davies, the Company's Global Strategy Consultant, has subscribed for 6,000,000 Placing Shares and 6,000,000 Placing Warrants for a total of £48,000.

The Company intends to allow its directors and persons discharging managerial responsibilities ('PDMRs') (currently in a close period ahead of the publication of its results for the year ended 30 June 2017) the opportunity to subscribe for Ordinary Shares and warrants on the same terms to the Placing once the close period has ended.

Cameron Parry, Chief Executive Officer of Lionsgold, commented:'Lionsgold's business interests are approaching key moments in their development over the coming weeks and months. There has been considerable work undertaken to position LION in this manner and we are focused on maximising our commercial opportunities.

'We have a highly talented team of natural resource industry skilled professionals who have the practical experience to drive our mining related interests forward and I look forward to announcing news of progress achieved across our natural resource assets. In addition, within our fintech division, the development of Goldbloc will see the Company with a digital gold currency that has the potential for global application. With this fundraising we can seek to complete the full commercialisation of Goldbloc in the coming months.

'I would personally like to thank shareholders for their support as we built Lionsgold's value proposition and continued with our vision for the Company. We look forward to reporting further in due course, across each of our business activities.'

Placing

The Company is raising gross proceeds of £550,000 through the placing of 68,750,000 Placing Shares at a price of 0.8 pence per share (the 'Placing Price'), being the bid price of the ordinary shares of the Company ('Ordinary Shares') as at close of trading on 29 November 2017 (the last trading day prior to this announcement), raising gross proceeds of £550,000 from existing shareholders and high net worth investors known to the Company.

The Placing incorporates the issue of warrants to subscribe for 68,750,000 new Ordinary Shares at an exercise price of 1.2 pence per warrant (a 50% premium to the Placing Price) on the basis of 1 Placing Warrant per 1 Placing Share, with an exercise period of up to 31 December 2018. If the Lionsgold share price exceeds a 5 day volume weighted average price exceeding 3.6p during the warrant term, the Company has the right to serve notice on warrant holders to exercise warrants. Should the Company serve notice, any Placing Warrants unexercised within the 7 day time period allowed would be cancelled.

The Placing Shares will be issued in two tranches. The first tranche of 27,500,000 Placing Shares and 27,500,000 Placing Warrants (40% of the Placing) will be issued under the existing authorities granted to the directors of the Company and completion of the first tranche of the Placing is conditional only on admission of the first tranche of Placing Shares to trading on AIM, which is expected to take place on or around 13 December 2017.

Completion of the second tranche of the Placing which comprises 41,250,000 Placing Shares and 41,250,000 Placing Warrants is conditional upon shareholder approval at the Company's AGM to be held on or around 28 December 2017, and subject to approval being granted, the second tranche of Placing Shares shall be admitted to trading on AIM on or around 29 December 2017.

Director and Management Participation

Lionsgold directors and persons discharging managerial responsibilities ('PDMRs') were unable to participate in the Placing because the Company is currently in a close period ahead of the publication of its results for the year ended 30 June 2017. The Company intends to allow its directors and PDMRs the opportunity to subscribe for further Ordinary Shares and warrants on the same terms as the Placing once the close period has ended.

Total Voting Rights

In accordance with the provision of the Disclosure Guidance and Transparency Rules of the FCA ('DTRs'), the issued ordinary share capital of Lionsgold following the first tranche of the Placing, being unconditional, there shall be 286,711,719 Ordinary Shares with voting rights attached (one vote per share). There are no shares held in treasury. This total voting rights figure may be used by shareholders as the denominator for the calculation by which they will determine whether they are required to notify their interest in, or a change to their interest in, Lionsgold under the DTRs.

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

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About LIONSGOLD Limited (LON: LION)

Lionsgold is a London Stock Exchange AIM market quoted, gold-focused company involved in the exploration, production and retail application of physical gold, with gold assets in India and Finland and a majority owned financial technology company developing the digital gold currency, Goldbloc.

Lionsgold's three core focuses are:

· Strategic partnership with leading India gold exploration and mine development company, Geomysore, in which Lionsgold holds 21.15%;

· Majority ownership of a financial technology platform providing online accounts for people to hold and utilise physical gold (www.goldbloc.com/ www.indexgold.com/ www.therealasset.co.uk); and

· Gold exploration and production in Central Eastern Finland.