LION SELECTION GROUP LIMITED. — AGM Information 2022

Dec 6, 2022

AGM

7 December 2022

www.lionselection.com.au

This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. This presentation does not take into account any person’s particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. To the fullest extent permitted by law, each of Lion Selection Group Limited (Lion), Lion Manager Pty Ltd (Lion Manager), or any of its related bodies corporate, or any of its directors, officers, employees, agents, representatives and advisers do not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of negligence or otherwise is accepted.

This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are inherently speculative and outside the control of Lion and Lion Manager. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Accordingly, there can be no assurance that actual values, results or events will not vary significantly from those expressed or implied in this presentation. Lion and Lion Manager do not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation for changes in events, conditions or circumstances on which any such forward looking statement is based following the date of this presentation.

This presentation may include figures illustrating past performance. Past performance is not an indicator of future performance and should not be relied upon as a guide to future performance. Future returns are not guaranteed and a loss of original capital may occur.

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Disclaimer
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Lion Selection
Group
ASX : LSX
47cps (share price 30 Nov 2022)
63.6cps (NTA 30 Nov 2022) [1]
5cps (Dividends paid in 2022)
ASX:LSX
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Lion Selection Group (Lion) is an ASX listed mining investor (ASX:LSX), with a strong balance sheet and ability to invest in a weakening junior resources market.

Lion currently has exposures to gold, copper, nickel and phosphate, but the main asset is cash.

Lion provides a simple way to invest in high growth mineral companies, with a track record of value creation and dividends.

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NTA: Will become predominantly cash in 2023

Lion is extremely strongly positioned to invest in a weakening market

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Net Tangible Assets

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US$30M
(Merdeka Shares
Nusantara SOLD / Deferred Cash)
To become
Pani SOLD
cash
Jul-21 Nov-22 Feb-23
62.6cps [2] 63.6cps [1] (Projected)
5cps Dividends Further Special
3.5cps PAID (Apr 22)
Dividend :
1.5cps PAID (Oct 22)
April 2023
Share
Price
44cps 47cps
Discount
to NTA 30% 26%
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1997 Lion IPO

Dividends

2023 Lion strongly positioned for new opportunity investment focussed on Australia

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3cps 3cps 8cps 3cps 10cps 10cps 10cps 26.7cps 10cps 3cps Catalpa share 10cps
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2009-2013
National Stock
Exchange
2009
2012-2022
Demerger Period of investment in One Asia / Pani
(1x Lion
1x Catalpa)
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Lion aims to pay sustainable dividends, from surplus investment proceeds, whilst balancing the investment requirements of the Company with market conditions and capital growth

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Pani Exit

• [at least] US$52M total value[3]

• 17% above NTA

• 3.5x return on investment

• Exit at logical point of asset cycle

Prior to substantial capex

• Lion recommenced dividends

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• Return to investing

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Pani Exit Consideration [at least] US$52M

US$22m Banked

US$10m Deferred Cash Value Protection Cash top up

US$20m Merdeka Stock

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Pani Exit Consideration [at least] US$52M

Pani sale completion Early 2023:

• Sale of Merdeka stock

• Receipt of deferred cash

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PhosCo Limited

ASX : PHO (A$3.2M invested / A$5.5M market value ) Tunisia / Rock Phosphate

Chaketma Phosphate Project

Potential Tier-1, long life mine with downstream fertiliser production optionality

Sekarna Phosphate Project 100% PhosCo

• Global JORC 2012 Resource: 146.4Mt @ 20.6% P O 4 2 5

• Tier-1 resource companies active incountry including BP, Shell, Anglo Oil & Gas

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• Large scale , outcropping phosphate target

• Reported high grade rock chip samples grading between 19.7% and 27.8% P ₂ O ₅

• Located 10km northeast of Chaketma

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ASX:LSX

Erdene Resource Devt Corp TSX : ERD (A$2.9M invested / A$4.1M market value ) Mongolia / Gold

Shovel-ready gold project, expanding into a district

• Dec 2015: Bayan Khundii high grade gold discovery (7m at 27.5g/t gold)[5]

• Sep 2018: Bayan Khundii Maiden Resource

• Jul 2020: Bayan Khundii BFS

• Jan 2021: Dark Horse high grade gold discovery (45m at 6g/t gold)[6]

• Aug 2021: Ulaan gold discovery (258m at 0.98g/t gold)[7]

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ASX:LSX

Plutonic Limited

UNLISTED (A$1.0M invested / A$1.0M market value ) Australia / Gold

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Source: Plutonic Limited[8]

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• Association with G3 structural corridor: Hosts multiple large deposits (e.g. Tanami)

• Reactivated as a rift zone at same time as formation of Victorian Gold fields

• Rift-zones at right angles to orogenic belts are commonly particularly well-mineralised

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• Epizonal quartz - strong colloform, infill and crustiform textures. Very strong ex-sulphides bands and pits throughout.

• Anomalous gold (0.59 and 0.33 g/t Au fire assays from Plutonic collected rock chips).

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ASX:LSX

Portfolio

Industry project maturity profile – typically a pyramid

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• Merdeka To be sold
: early 2023
In compliance with the Pani sale agreement
Development
/ Operations
• Erdene Legacy investments
• PhosCo • Very well understood
• Kasbah
Feasibility studies • Lion intends to be opportunistic,
without committing significant
extra capital
Resource definition • Great Boulder
Invested 2020 - 2022
• Kin Gin
• Plutonic
Early stage: first drilling
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ASX:LSX

Investment Approach Investment proportionally targeted

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Development / Operations
• Erdene Cautious investor whilst market
weakens
Balance sheet provides huge
• PhosCo
• Kasbah optionality
Target portfolio:
•
Diverse commodity mix (precious
Feasibility studies
/ base / strategic)
•
Australia focus
•
Targeted to project stages with
greatest value growth potential
• Great Boulder
•
Driven by deep conviction value
Resource definition To be built up during
•• Kin GinPlutonic weak market
Early stage: first drilling Value
De-risking
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• Diverse commodity mix (precious / base / strategic)

• • Australia focus

• Targeted to project stages with greatest value growth potential

• • Driven by deep conviction value

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ASX:LSX

Investment Approach

“Periods of extreme volatility have historically provided some of the most lucrative investment opportunities in companies that depend on market funding”

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Equity market – sensitive to inflation / rates outlook and volatile

Junior resources companies are the biggest victims of liquidity collapse

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ASX:LSX

Equities, Rates and Inflation

US Recessions

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S&P500 US Equity index

Rates US Fed Funds Rate Inflation US CPI 12mo %

Source: IRESS data, US Federal Reserve

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ASX:LSX

Liquidity – ASX Resources IPOs

Cycle Peak Years

Number of Resources IPOs per year

Source: ASX Announcements, Lion Manager

Liquidity has dropped…

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ASX:LSX

Liquidity – Exploration Expenditure (Australia)

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A$ Millions Per Quarter Meters Drilled

…Activity not yet impacted

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Source: Australian Bureau of Statistics

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Liquidity – 2023 test

“It is easier for a camel to pass through the eye of a needle, than for a cum-issue explorer to enter the kingdom of fund raising in February”

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ASX:LSX

19 April 2022 - Present Resources Equities: Volatility & Weakness

% of co’s in group with negative performance

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68% ASX100 Resources
78% ASX Small Resources
79% A$50-100M Market Cap
No Index:
Mineral
Greater prevalence of negative performance in Resources
companies
smaller market capitalisation companies grouped by
market cap
86% A$0-50M Market Cap
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Source: IRESS data

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The Lion Clock

Conclusions

Just past 12.

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2021
2020
2019
2017
2016
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This is the time when junior resources stocks are most at risk – funding challenges lead to equity price weakness

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Equities 2023
Tech led weakness Many junior
Miners resilient resources
1 Junior miners – 2 companies need to
liquidity removed raise funds
Mining
Liquidity
Strong outlook
NOW is a great time
3 to hold CASH 4 beyond the horizon
of inflation
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Lion Selection Group (Lion) is an ASX listed mining investor (ASX:LSX), with a strong balance sheet and ability to invest in a weakening junior resources market.

Lion currently has exposures to gold, copper, nickel and phosphate, but the main asset is cash. Lion provides a simple way to invest in high growth mineral companies, with a track record of value creation and dividends.

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Level 2/175 Flinders Lane Melbourne VIC 3000

T +61 3 9614 8008

E info@lsg.com.au

APPENDICES

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Well Funded Strong cash position following large asset divestment Proven Approach 25 years experience / strong deal flow / exceptional people networks

Target Investments Pre-production mining: companies and projects Country & Commodity Australia / Precious Metals / Base Metals / Strategic Materials Live Distributions Dividends re-commenced / On-market buy-back Sustainability Follows World Bank’s sustainability policies for exploration and mining

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Lion Investing Focus

Australia Focus

for new investments

• ✓ Global mining investment destination of choice

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• ✓ Efficient and accessible

• ✓ Geologically rich and diverse

Lion is well funded: by February 2023 will have Net Tangible Assets comprising predominantly cash – Very strongly positioned to invest in a weakening market

Commodity Diversity

Precious, Base and Strategic materials

Precious Metals

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Au Ag PGE
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• ✓ Low to moderate processing risks

Base Metals & Strategic Materials

• ✓ No ex-site infrastructure capital requirements

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Cu Ni Li
Zn Co Pb
Mn Sn P
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• ✓ Future facing / excellent ESG credentials

• ✓ Outright best demand growth projections

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Board & Management
Strong Foundation
MANAGEMENT TEAM
BOARD
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Barry Sullivan

Peter Maloney

Chairman

Chairman Non-Executive Director Barry is a mining Peter has commercial engineer with over 40 background developed years experience. Barry through various roles has held numerous at WMC Resources, Non-Executive Santos and FH Directorships and was Faulding. Peter was previously Chairmanof Chairman at Catalpa EganStreet Resources. Resources when it merged into Evolution Mining Limited.

Chris Melloy

Non-Executive Director Chris is a mining engineer with 40+ years experience in mining operations, securities analysis and investment. He has worked with Lion since inception, and held directorships of several Lion investee companies.

Robin Widdup

Managing Director

Robin’s mining experience spans Africa, UK and Australia. Robin led the mining analyst team at JB Were and was the founder of Lion Selection Group.

Craig Smyth

Executive Director

15 years mining investment experience. Craig is a member of the Institute of Chartered Accountants of Australia with experience working for Coopers & Lybrand, Credit Suisse First Boston (London) and ANZ Investment Bank.

Hedley Widdup

Executive Director

13 years mining investment experience. Hedley has extensive experience as a mine geologist covering the Mt Keith nickel mine, Olympic Dam, Mt Isa and the St Ives gold mine.

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Experience: Funding / Strategic Development / M&A

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History
Long-term investments
Active Exit Management
Profitable Outcomes
ASX:LSX
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Pani JV Interest

• Gold / Indonesia

• • $21m invested

• • $74m exit[3]

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$5.9m invested C$16.8m invested
$9.5m exit C$25.4m exit
$33.8m invested $23.4m invested $9.8m invested $31.7m invested
$88m exit $113.5m exit $99.9m exit $90.3m exit
MPI
Mines
Limited
Foundation assets: $9.4m invested $11.8m invested $6.1m invested
Evolution Mining $43.2m exit $42.5m exit $48.3m exit
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Footnotes
ASX:LSX
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1. Lion Selection Group ASX announcement dated 6 December 2022, Net Tangible Asset Backing

2. Lion Selection Group ASX announcement dated 13 August 2021, Net Tangible Asset Backing

3. Lion Selection Group ASX announcement dated 31 January 2022, Sale of Pani JV interest for A$74M plus upside

4. PhosCo Limited ASX announcement dated 22 November 2022, Australian Potash & Phosphate Conference Presentation

5. Erdene Resource Devt Corp press release dated 9 December 2015, Erdene Intersects Multiple High-Grade Gold-Bearing Structures at Bayan Khundii

6. Erdene Resource Devt Corp press release dated 6 January 2021, Erdene Announces New Gold Discovery 3.5km North of the Bayan Khundii Gold Deposit

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1. Erdene Resource Devt Corp press release dated 11 August 2021, Erdene Reports New Discovery at Ulaan – Intersects 3.77g/t Gold over 40m within 258m of 0.98g/t gold

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1. https://www.plutoniclimited.com/

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