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LION SELECTION GROUP LIMITED. Net Asset Value 2018

Dec 4, 2018

65271_rns_2018-12-04_c41afb3f-c44c-436d-a0c0-cec76b51d73a.pdf

Net Asset Value

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ASX RELEASE: LSX

Net Tangible Asset Backing

Net Tangible Asset Backing

Lion Selection Group Limited (Lion) advises that the unaudited net tangible asset backing of Lion as at 30 November 2018 is $0.42 per share (after tax).

Commodity
October 2018
A$M
Pani Joint Venture (33.3% Interest)
Gold
39.3

Fair value for Pani based on Merdeka’s acquisition of 66.7% interest
in the Pani JV from Lion’s existing JV partner in November 2018.
(See next page for more details.)

Short term advance of $0.6m repaid, increasing Lion’s cash balance.
Portfolio
Nusantara Resources
Gold
7.9
Roxgold
Gold
5.3
Egan Street Resources
Gold
4.1
Erdene Resources
Gold
2.1
Toro Gold
Gold
1.6
Other
3.2

Portfolio holdings measured at fair value

Includes investments held directly by Lion and the value to Lion of
investments held by African Lion.
Net Cash
0.9
November 2018
A$M
¢ps
38.7
25.8
6.7
4.5
4.9
3.3
4.2
2.8
2.0
1.4
1.5
1.0
3.4
2.3
1.4
0.9
Net Tangible Assets
A$62.4m
A$62.8m
42¢ps

Capital Structure

Structure
Shares on Issue: 150,134,879
Share Price: 34¢ps 30 November 2018
Options on Issue: 15,720,958 $0.50 expiry 12 April 2020

Lion Selection Group Limited ABN 26 077 729 572 Level 2, 175 Flinders Lane, Melbourne Vic 3000 T: +61 3 9614 8008 ASX RELEASE – 5 December 2018 www.lsg.com.au

Further enquiries: Craig Smyth E: [email protected] Page 1 of 2

Merdeka Transaction

On 5 November 2018 it was announced that PT Merdeka Copper Gold tbk (Merdeka) will become Lion’s joint venture partner in the Pani Joint Venture (Pani JV) after agreeing to pay US$55m cash to buy a 66.7% joint venture interest from Lion’s existing joint venture partner. The purchase price paid by Merdeka imputes a look through value of A$39m for Lion’s 33.3% interest. Lion has adopted this valuation for its net tangible asset (NTA) disclosure.

Merdeka is a leading Indonesian gold mining company which developed and now operates the Tujuh Bukit oxide heap leach project, East Java. The technical, financial and Indonesian operations expertise possessed by Merdeka are welcomed by Lion as essential skills for developing the Pani Gold Project.

Page 2 of 2

ASX RELEASE – 5 December 2018