Lion One clarifies shrinkage stoping in use at Tuvatu

Executive Summary

• Lion One Metals Ltd. issued a clarification refuting claims that it has abandoned shrinkage stoping at its Tuvatu Gold Mine, confirming the method remains central to its operations.
• The company reported successful production from its first shrinkage stope in Q3 2025 (5,704 tonnes at 10.60 g/t Au) and detailed the development of a second stope in Zone 5 and a third stope under design.
• The release coincides with the appointment of Campbell Olsen as CEO and highlights a strategic transaction with Arete Capital Advisors to bring specialized mining expertise to the project.

Key Details

• First Shrinkage Stope (Completed Q3 2025):
  • Location: Zone 2, near surface, targeting Ura1 lode.
  • Dimensions: ~62m long, 24m tall, 1.5m wide.
  • Production: 5,704 tonnes at an average grade of 10.60 g/t gold.
  • Timeline: Developed over several months; production occurred July–September 2025.
• Second Shrinkage Stope (Developed Q4 2025):
  • Location: Zone 5, focused on UR2 lode.
  • Dimensions: ~60m long, 50m tall, 1.5m wide.
  • Projected Production: 11,520 tonnes (approximately double the first stope).
• Third Shrinkage Stope (Design Phase 2026):
  • Location: Between levels 1,116 and 1,156.
  • Status: Design underway; additional surface drilling initiated to tighten design and improve geological knowledge.
  • Final size: To be determined based on drilling results.
• Management Changes:
  • Campbell Olsen appointed Chief Executive Officer on February 25, 2026.
  • Strategic transaction with Arete Capital Advisors announced December 30, 2025.
  • Arete to provide specialist technical engagement under a management service agreement.
• Operational Context:
  • Tuvatu is a 100%-owned alkaline gold project in Fiji.
  • Deposit characteristics: Steeply dipping narrow veins within a complex alkaline geological setting with multiple lode arrays.
  • Mining philosophy: Use of multiple methods (shrinkage, cut-and-fill, long-hole) based on specific geological conditions (width, dip, grade, geotechnical stability).
• Risk Factors:
  • Current mine development plan is not based on a feasibility study of mineral reserves.
  • Increased uncertainty and risk of economic/technical failure associated with development.
  • No assurance of achieving anticipated recovery levels or production costs.

Notable Quotes

• "The success of the company's first shrinkage stope is a major achievement and milestone for the company and confirms shrinkage mining as an optimal mining method for certain parts of the Tuvatu gold deposit. We anticipate utilizing other mining methods for other parts of the deposit." — Lion One Metals (Oct. 2, 2025)
• "Arete's specialist team brings deep operational, technical and financial experience in turning high-quality mid-tier gold assets into robust cash-generative businesses ... [with a] clear pathway to unlock significant incremental value at Tuvatu through disciplined mine optimization, targeted capital investment and an aggressive but data-driven exploration program." — Campbell Olsen, CEO