LION SELECTION GROUP LIMITED. — Net Asset Value 2021

Dec 7, 2021

8 December 2021

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Net Tangible Asset Backing

Lion Selection Group Limited (Lion) advises that the unaudited net tangible asset backing of Lion as at 30 November 2021 is 65.3 cents per share (before tax) and 63.3 cents per share (after tax). This excludes $2.3m in contingent liabilities relating to Lion’s acquisition of African Lion 3 (see note below).

	Commodity October 2021 A$M Pani Joint Venture Gold 63.3 The fair value of Lion’s interest in the Pani Joint Venture increased to A$60.7M at 31 July 2020. This increase reflects the sustained escalation in gold prices from h i f h ’ lh i i Nb 2181A	November 2021 A$M ¢ps 63.3 42.2
	te tme o te most recent arms engt transacton n ovemer 0. n additional $2.6M has been invested subsequently. Portfolio Erdene Resources Gold 4.9 Kasbah Resources Tin 2.0 Celamin Holdings Phosphate 2.4	5.6 3.8 2.0 1.3 2.7 1.8
	Other 1.1 Net Cash 23.3	1.1 0.7 23.3 15.5
	Net Tangible Assets – Pre-Tax A$97.0m Deferred tax liability on theoretical disposal of Lion’s portfolio (A$3.0m)	A$98.0m 65.3¢ps (A$3.2m) (2.0¢ps)
	Net Tangible Assets – Post-Tax A$94.0m	A$94.8m 63.3¢ps
	Share Price: 47.5¢ps 30 November 2021

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

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ASX Release – 8 December 2021

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 $2.3m would arise (October 2021, $2.2m).

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 on 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 – 8 December 2021