Lions Bay Provides Corporate Update

Executive Summary

• Lions Bay Capital’s associate, Lions Bay Resources Pty Ltd (LBR), is actively pursuing the acquisition of Vantage Goldfields Ltd assets in a South African business rescue proceeding, with a court hearing set for March 2, 2026.
• LBR has extended its option to purchase a 47.4%-owned cogeneration power plant in KwaZulu‑Natal to February 28, 2026, paying an additional USD $10,000 (total paid to date $85,000) toward the $1,305,000 remaining purchase price.
• The company continues to fund security costs for the Vantage assets and is preparing to present its plan to the High Court, aiming to secure a definitive resolution and restart mining operations.

Key Details

• Court Process: Final hearing on the Vantage Business Rescue (BR) case scheduled for March 2, 2026; LBR’s bid will be considered alongside other undisclosed offers.
• Option Extension – Cogeneration Plant:
• Agreement dated Jan 27, 2026 extends option expiry to Feb 28, 2026 (second extension).
• Extension fee: USD $10,000 per extension; cumulative payments $85,000 credited toward purchase price.
• Remaining balance payable upon exercise: USD $1,305,000.
• Plant Overview:
• Located in KwaZulu‑Natal, South Africa; capable of producing electricity and steam.
• Constructed/commissioned 2020 at approx. USD $19.4 million; operated ~1 year before care‑and‑maintenance in 2021.
• LBR intends to modify plant for gold concentrate roasting/recovery, creating a dual revenue stream.
• LBR’s Bid for Vantage Assets (Dec 24, 2025):
• Ownership structure: 47.4% Lions Bay, 47.6% management, 5% Metals One Plc.
• Offer includes cash and shares to creditors of Vantage Goldfields Ltd, Makhonjwaan Imperial Mines (Pty) Ltd, and Barbrook Mines (Pty) Ltd, plus rehabilitation commitments (e.g., Lily Mine flooding).
• Recent Developments:
• Prior BR plan by Ultra Concepts Limited collapsed; liquidation application heard Jan 28, 2026.
• Business rescue practitioner has not presented LBR’s offer to creditors yet; other offers remain undisclosed.
• Creditor Goldstream (Pty) Ltd filed an application to remove the current business rescue practitioner.
• Security Costs: LBR has paid security costs for Vantage assets over the past five months, asserting its plan is effectively implemented and will be argued in court.

Notable Quotes

“Lions Bay continues to play an active role in moving LBR's bid for the Vantage assets forward… we have a great opportunity with the cogeneration power plant … providing a dual revenue stream as we move to create a vertically integrated gold business in South Africa.” – John Byrne, Chairman, Lions Bay Capital