Pilot Plant Testing Approval Received

24 October 2017

Lionsgold Limited

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

Pilot Plant Testing Approval Received

Lionsgold, the gold-focused exploration company with assets in India and Finland, and a fintech subsidiary that provides online accounts for holding physical gold, is pleased to provide an update regarding its Finnish incorporated joint venture ("JV") operating company, Kalevala Gold Oy ("Kalevala"), which holds more than 300km2 under licence in the Suomussalmi region of eastern Finland, including the Kuikka gold deposit.

Kalevala has now received government permission for an initial 200 tonne test ore sample from Kuikka which is planned to be carried out in November. The sample will assist in the optimisation of the pilot plant recovery and operating procedures for the 5,000 tonne bulk sampling programme which is planned but still subject to government approval.

Cameron Parry, Lionsgold CEO, commented: "Further to our announcement dated 5 October, we are pleased to report that Lionsgold's JV company Kalevala has received government approval to carry out testing of our processing equipment on 200 tonnes of gold ore from the Kuikka project.

"This is an important precursor to the 5,000 tonnes bulk sampling campaign that is planned at Kuikka, subject to government environmental permission being granted for bulk sampling in due course."

For further information, please visit www.lionsgold.com or contact: