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Lion One Metals Signs Merger Agreement with Avocet Resources Limited

Lion One Metals Limited (LIO.V) and Perth, Australia-based Avocet Resources Limited have executed a Merger Implementation Agreement (MIA) pursuant to which Lion One proposes to acquire all of the issued shares in Avocet by way of Scheme of Arrangement.

Under the proposed merger, shareholders of Avocet will receive 1 share of Lion One for every 9.5 shares held in Avocet.(1) Based on the closing price of Lion One shares on December 19, 2012, the merger implies an offer price of A$0.072 per Avocet share,(2) representing a premium of 28.73% to the closing price of Avocet shares on December 20, 2012, and a premium of 28.07% to the 60-day volume-weighted average price of Avocet shares for the period ending December 20, 2012.

Combined assets of the merged entity will include:

-- The Tuvatu Gold Project in Fiji - Lion One's advanced exploration

project with current resources of 480,000 ounces inferred (2,618,000

tonnes at 5.71 g/t Au) and 172,000 ounces indicated (760,000 tonnes at

7.05 g/t Au).(3)

-- An historic probable reserve under Australian JORC guidelines of 269,000

oz. at 6.63 g/t Au based on a feasibility study carried out in year 2000

by Bateman Engineering.(4)

-- A 25% interest carried to production in the Olary Creek iron ore project

in South Australia.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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