LION SELECTION GROUP LIMITED. — Investor Presentation 2017

Oct 8, 2017

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Lion Selection Group (LSX)

Investor briefing:

• Mining market update

• Placement & SPP to raise up to $5m (35¢ps)

Lion Selection Group ASX:LSX

Lion Investment Strategy

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• Early Stage – Resource certain / mine likely

• • Geographic limits – min 50% Australia

• – max 50% overseas

• • Commodity limits – 50% gold

• – 50% other

Lion Selection Group ASX:LSX

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Time to Buy – Focus on ASX Emerging Gold

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Signals:

• Industry is investing: Majors investing in juniors

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• Exploration activity decline halted: About to increase

• • Investors are buying risk

Lion Selection Group ASX:LSX

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Mining Market switched from Bust to Boom
Bust over / Boom started
20 Jan 2016:
Turning Point • 2011‐2015 Bust
5 year downturn Mining
Market in • Early 2016 Sentiment reversed
Recovery
•
2016/17 – early stages of mining boom
Deal flow increasing consistent with
market recovery
•
Potential to make selective new investments
• Known opportunity: EganStreet 25c options
($1.9m to exercise – expiry Mar 2018)
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Lion Selection Group ASX:LSX

Portfolio: 80% Gold, 10% Australia Lion Selection Group Net Tangible Assets at 31 August 2017 Nusantara Resources $12.7m 1.74moz gold project, Indonesia. DFS underway. ASX listed. One Asia Resources $2.5m 2.4moz gold project, Indonesia. Unlisted Erdene Res Dev Corp $8.0m High grade gold discovery, Mongolia. TSX listed Roxgold Resources $7.8m High grade gold miner, Burkina Faso. TSXV listed EganStreet Resources $3.9m High grade gold developer, WA. ASX Listed Other $6.2m Cash $3.1m $44.2m NTA 40¢ps

Lion Selection Group ASX:LSX

Lion Placement & SPP Raising Up to $5m

• Placement for $2.7m completed September 2017

• Oversubscribed

• Lion directors $736k (subject to shareholder approval)

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• Share Purchase Plan to raise up to $2.3m

• Closes 12 October 2017

• Shareholders able to apply for shares in parcel sizes from $1,500 up to $15,000

• Placement and SPP priced at 35¢ps

• 9% discount to 5‐day volume weighted average price of 38.5¢ps

• 12.5% discount to Net Tangible Asset Backing of 40¢ps (as at 31 August 2017)

Lion Selection Group ASX:LSX

Lion Placement & SPP Raising Up to $5m

Why ?

 Early stage of Mining Boom: best time to invest

 Deal flow: increasing

• Use of funds: Boost portfolio weighting toward Australian emerging gold situations

• Example (portfolio holding): EganStreet Resources (EGA).

• Options held by Lion: 7.7m (25¢ / March 2018), $1.9m to exercise

• Great leverage to gold: development proposition with expansive exploration upside

Lion Selection Group ASX:LSX

EganStreet

Exciting New Gold Mine Forecast

• High grade gold project:

• 0.7mt x 11.6g/t for 262koz Resource

• Infrastructure in place:

• road, tailings dam etc

• DFS underway:

• Capex $34m

• (AISC) Op Cost $1,020/oz

• 5 years x 40koz

• Target gold production late 2018

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Lion Selection Group ASX:LSX

EganStreet – Mineral Resource and Production Target

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Lion Selection Group ASX:LSX

EganStreet – Exploration Potential

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14km Highly prospective strike

• <30% drill tested

• Average depth drilling <45m

• 6km historic workings

Lion Selection Group ASX:LSX

Erdene – Bayan Khundii Gold Discovery

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• New gold district: numerous occurrences at surface

• Bayan Khundii – shallow, high grade, open pittable

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Lion Selection Group ASX:LSX

Roxgold – Yaramoko Gold Mine, Burkina Faso

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• High‐grade gold mine (15.7g/t FY2017 production)

• Expansion strategy underway

• Drilling underway: high grade extensions and regional targets

• • Healthy balance sheet: $50m cash, $54m long term debt

Lion Selection Group ASX:LSX

One Asia and Nusantara

• Listing of Nusantara Resources (NUS) on ASX achieved a listing for Awak Mas which will now progress independently of Pani

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December 2016 August 2017
+ Nusantara
OAR OAR OAR
IPO
Shareholders Shareholders Shareholders
investors
+ $16.2m
Pani Awak Mas Pani Awak Mas
cash
2.4Moz 1.7Moz • Listed on ASX
• Completely focussed on Awak Mas
assessment and development
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Lion Selection Group ASX:LSX

Performance – 20 Year Track Record

Total Shareholder Return: % pa to 30 Sep 2017

	Lion	ASX Small Resources
1 Year Return	13.6%	8.1%
3 Year Return	6.6%	5.5%
5 Year Return	‐6.3%	‐10.9%
10 Year Return	6.6%	‐8.6%
15 Year Return	12.3%	5.4%
Since inception_(20 years)_	8.6%	3.2%
(refer to notes below)

$1/share (1997) : 97 ¢ Dividends + 81 ¢ Buy Back + EVN share

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Notes on Investment Performance

1. Investment performance figures reflect the historic performance of Lion Selection Group Limited (ASX:LSG, 1997 – 2007), Lion Selection Limited (ASX:LST, 2007‐2009), Lion Selection Group Limited (NSX:LGP, 2009‐2013) and Lion Selection Group Limited (ASX:LSX, 2013‐present)

2. Methodology for calculating total shareholder return is based on MorningStar (2006), which assumes reinvestment of distributions

3. Distributions made include cash dividends, shares distributed in specie as a dividend, proceeds from an off market buyback conducted in Dec 2008, and the distribution of shares in Catalpa Resources via the demerger of Lion Selection Limited in Dec 2009. Lion assume all distributions are reinvested, with all non‐cash distributions sold and the proceeds reinvested on the distribution pay date.

4. Investment performance is pre‐tax and ignores the potential value of franking credits on dividends that were partially or fully franked.

5. Past performance is not a guide to future performance.

6. Indices used for comparison are accumulation indices, which assume reinvestment of dividends.

7. Source: IRESS, Lion Manager

Lion Selection Group ASX:LSX