Half-year Report

Lionsgold Limited ("Lionsgold", "LION" or the "Company"), the India-focused gold exploration company with additional exploration assets in Finland and an interest in a physical gold online trading platform, announces its unaudited results for the six months ended 31 December 2017.

Highlights for the period:

· New equity capital raised during the period totalling £1,171,000 through the exercise of warrants and management options and a part placing;

· Increased shareholding to 21.15% of leading India gold exploration and mine development company Geomysore Services (India) Private Limited ("Geomysore");

· Final results of feasibility study completed at Geomysore's most advanced project, Jonnagiri, resulting in 'decision to mine', and new Mining Lease targets identified, located in the southern part of the Kolar Gold Field;

· Increased shareholding to 28.3% in Finnish gold joint venture company, Kalevala Gold Oy ("Kalevala);

· Kalevala added 277.7km2 prospecting licensed area and received approval for 200 tonnes of gold ore for equipment testing;

· Increased shareholding to 55% majority ownership of TRAC Technology Limited ("TRAC") prior to design of Goldbloc by TRAC's CEO and LION's CEO;

· Digital gold currency, Goldbloc, announced to market enabling physical gold to be directly owned within a bank account (product targeted for release Q2 2018);

· E-Money (electronic money) Licence received from the FCA (Financial Conduct Authority) permitting TRAC to act as a payment or e-money institution (FCA reference number 902012);

· Non-Executive Chairman appointed to the Board on 23 November 2017 adding technical geological and operational knowledge;

· Former Rio Tinto Chief Executive Energy & Minerals who was head of all Rio projects in India for over eight years, joined Lionsgold as part-time Global Strategy Consultant;

· Cash at bank at the end of the period £1.16m;

· Over £1m received post period end from warrants exercised and balance of December 2017 placing;

· Post period end, Lionsgold acquired 12.5% shareholding of banking and compliance technology platform provider, Railsbank Technology Limited ("Railsbank") and secured a 3-year exclusive to utilise the platform to enable physical gold and gold derivative products in bank accounts.

Board changes

On 23 November 2017, Luke Cairns stepped down as Executive Director and David Price was appointed as Non-Executive Chairman.

Key financials

The loss after tax for the period was £542,630 (unaudited) compared to £452,979 for the period to 31 December 2016.

As at 31 December 2017, the Group's cash balances were £1,160,741 (31 December 2016: £493,693).

Cameron Parry, Chief Executive Officer of Lionsgold Limited, commented:

"Lionsgold transformed in its size and capacity during the period ended 31 December 2017. During the period, it increased its operational input and ownership position across its three divisions: India Gold, Fintech Gold and Finland Gold and achieved through equity capital raisings at market price structured with warrants priced at significant premiums, a robust cash position with access to further capital, to execute its strategic plans in 2018.

"Lionsgold has direct exposure to the Indian market via our mining interest and the global banking industry through the development of Goldbloc - the digital gold currency to be utilised in bank accounts. It is an exciting chapter Lionsgold is entering and we look forward to reporting on the Company's many business opportunities and developments throughout the course of the year."

For further information, please contact :

Lionsgold Limited Tel: +44 (0) 20 7397 2880

Cameron Parry (Chief Executive Officer)

Adam Ronaldson (Chief Financial Officer)

WH Ireland Limited (Nominated Adviser) Tel: +44 (0) 113 394 6600

Tim Feather

Chris Viggor

Smaller Company Capital Limited (Broker) Tel: +44 (0) 20 3651 2911

Rupert Williams

Jeremy Woodgate

Lionsgold Limited and its controlled entitiesCondensed consolidated Statement of Comprehensive Income (unaudited)for the six months ended 31 December 2017

All results are derived from continuing activities.

1. Basis of preparation and changes to the Group's accounting policies

Basis of Preparation:

These unaudited condensed consolidated half yearly financial statements have been prepared in accordance with the AIM Rules for Companies. As permitted, the Group has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing this interim financial information. The unaudited condensed consolidated half yearly financial statements should be read in conjunction with the annual financial statements for the year ended 30 June 2017, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

The unaudited condensed consolidated half yearly financial statements do not constitute statutory financial statements within the meaning of the Guernsey (Companies) Law, 2008, have been prepared on a going concern basis in accordance with the recognition and measurement criteria of IFRSs. Statutory financial statements for the year ended 30 June 2017 were approved by the Board of Directors on 6 December 2017 and delivered to the Registrar of Companies. The report of the auditor on those financial statements was unqualified.

The same accounting policies, presentation and methods of computation are followed in these unaudited condensed consolidated half yearly financial statements as were applied in the preparation of the Group's annual audited financial statements for the year ended 30 June 2017.

The preparation of unaudited condensed consolidated half yearly financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in the Group's Annual Report and Financial Statements for the year ended 30 June 2017. The nature and amounts of such estimates have not changed significantly during the interim period.

These interim condensed consolidated financial statements were approved by the Board of Directors in March 2018 and will be available from the Company's website, www.lionsgold.com.

New standards, interpretations and amendments adopted by the Group:

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 30 June 2017.

2. Basis of preparation and changes to the Group's accounting policies

New standards, interpretations and amendments adopted by the Group (continued)

Several other new standards and amendments apply for the first time. However, they do not impact the annual consolidated financial statements of the Group or the interim condensed consolidated financial statements of the Group.

The following accounting standards and amendments have been issued but are not yet effective for the financial year beginning 1 July 2017 and not early adopted: