Lion One Reports 4,200 oz in Quarterly Gold Production

The October 16, 2025 news release provides preliminary production results for the quarter ending September 30, 2025. * Production: 4,200 ounces of gold were recovered, a 31% increase from the previous quarter. The average head grade was 5.1 g/t, a 39% increase quarter-over-quarter. Gold recovery improved to 83.9%. * Mill Performance: The mill operated at 91% utilization, processing 29,850 tonnes, which is above its nameplate capacity of 300 tonnes per day (TPD). Recovery is expected to increase further once the flotation circuit is complete. * Mine Performance: Underground development hit a record 1,712 meters. The first shrinkage stope is complete, having produced 5,704 tonnes at an average grade of 10.60 g/t gold. A second, larger shrinkage stope is in development and expected to contribute to production in Q4 2025 and Q1 2026. * Board Change: Edward (Ned) Collery has stepped down as a director and is being replaced by Todd Romaine, an ESG expert.

This news is routinely positive. The company is demonstrating a continued ramp-up at its Tuvatu Gold Mine.

Positives: * The 31% quarter-over-quarter increase in gold production is a significant improvement from a weaker Q2 2025 (3,214 oz). * The primary driver for this was a substantial 39% increase in head grade to 5.1 g/t, validating the high-grade nature of the deposit and the effectiveness of the shrinkage stoping mining method on the first stope (10.60 g/t). * Key operational metrics like gold recovery (83.9%) and underground development rates (1,712 m) are trending in the right direction.

Concerns / Neutral Points: * While a strong recovery, the 4,200 oz produced is not a new quarterly record; it is slightly below the 4,300 oz recovered in Q4 2024. This indicates progress but not a major breakout in production yet. * The production increase was driven by grade, not throughput. Tonnes milled (29,850) were actually lower than the record 33,726 tonnes in Q2 2025. Consistent, high throughput is necessary for long-term success. * The departure of director Ned Collery is a minor red flag. He was only appointed in June 2025, and such a short tenure (approx. 4 months) can suggest internal disagreement or issues. * The news simply confirms the company is executing on its previously stated plan. It meets expectations for a junior producer in the ramp-up phase but does not materially alter the investment case or de-risk the project to a significant degree.

The report reinforces that the operation is moving forward, which is positive. However, it does not represent a step-change in performance that would warrant a "Material" rating. The company must now deliver on the second, larger stope and complete the flotation circuit to prove it can consistently increase production and profitability.

Lion One Metals Limited is a Canadian-based gold exploration and development company. Its flagship asset is the 100% owned and fully permitted Tuvatu Alkaline Gold Project, located in Fiji. Tuvatu is a high-grade, narrow-vein underground gold deposit. The company is currently in a "pilot plant" production phase, operating a 300 TPD mill with plans to ramp up production and eventually expand the plant to 600-700 TPD. The project is situated within the Navilawa Caldera, which the company believes has potential for further discoveries.