LION SELECTION GROUP LIMITED. — Capital/Financing Update 2021

Aug 12, 2021

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ASX RELEASE: LSX

Net Tangible Asset Backing

Lion Selection Group Limited (Lion) advises that the unaudited net tangible asset backing of Lion as at 31 July 2021 is 64.7 cents per share (before tax) and 62.6 cents per share (after tax). This excludes any contingent liability relating to Lion’s acquisition of African Lion 3 (see note below).

CommodityJune 2021A$MPani Joint VentureGold62.5The fair value of Lion’s interest in the Pani Joint Venture increased to A$60.7M at31 July 2020. This increase reflects the sustained escalation in gold prices from thetime of the most recent arm’s length transaction in November 20181. An additional$1.8M has been invested subsequently.PortfolioNusantara ResourcesGold17.0Erdene ResourcesGold4.5Kasbah ResourcesTin2.0Celamin HoldingsPhosphate1.9Other1.6Net Cash7.2	July 2021A$M¢ps62.541.617.011.35.33.62.01.31.91.31.30.97.14.7
Net Tangible Assets - Pre TaxA$96.7m	A$97.1m 64.7¢ps
Deferred tax liability on theoretical disposal of Lion’sportfolio(A$2.9m)	(A$3.1m) (2.1¢ps)
Net Tangible Assets – Post-TaxA$93.8m	A$94.0m 62.6¢ps
Capital StructureShares on Issue:150,141,271Share Price:44¢ps31 July 2021

1 Lion Selection Group ASX Announcement 4 August 2020, Pani Update and Valuation Revision

Authorised for release by: Craig Smyth E: csmyth@lsg.com.au

Lion Selection Group Limited ABN 26 077 729 572 Level 2, 175 Flinders Lane, Melbourne Vic 3000 T: +61 3 9614 8008 www.lsg.com.au ASX RELEASE – 13 August 2021

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Contingent Consideration

Lion’s NTA excludes potential contingent consideration that may be payable if Lion sells its investment in either Celamin or Kasbah. Based on a theoretical sale of both investments at the date of the NTA, contingent consideration of $2.4m would arise (June 2021, $2.4m).

This obligation arises following Lion agreeing to purchase the shares it did not own in African Lion 3 Ltd (AFL3) to consolidate ownership (with the exception of Lion Manager Pty Ltd who opted to hold its investment). The transaction involved part cash consideration and Lion agreeing to pay contingent consideration to be paid in certain circumstances for up to 5 years. The value of the contingent consideration depends the ultimate exit price for Celamin and/or Kasbah, how long Lion holds the investments, and how much additional investment is required.

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ASX RELEASE – 13 August 2021