LionGold produced 13,845 ounces of gold in Q2 FY2014

and grows resources to 7 million ounces

with completion of the Acadian Mining acquisition

Highlights :

?h

of A$666 per ounceLionGold produced 13,845 ounces of gold in Q2 FY2014 at a low cash operating cost

?hGroup total resource grows to 7 million ounces with the inclusion of Acadian?s 1.33

million ounces of gold resources

?h

mining project lifecycleGeographically diversified portfolio of gold mining assets at various stages of the gold

?hLionGold?s on-going operations are unrelated to recent trading restrictions imposed

on LionGold?s shares

SINGAPORE, 11 October 2013 -

gold-mining operational performance for the quarter ended 30 September 2013. For the three monthLionGold Corp Ltd (?LionGold? or the ?Group?) has achieved strong

period, LionGold?s wholly-owned subsidiary, Castlemaine Goldfields? Ballarat Mine produced a record

13,845 ounces of gold at a low cash operating cost of A$666 per ounce and an all-in cost of A$1,055 per

ounce. This represents a 47% increase in gold production when

production of 9,431 ounces and exceeds the operations teams? previous

8,000 and 12,000 ounces of gold production. The result was achieved on the back of a record gold grade

of 12.8g/t. The annualized production target remains at 40,000 to 50,000 ounces of gold. This level of

sustainable production going forward is dependent upon exploration success. To achieve this target,

three underground diamond drill rigs continue to operate at the Ballarat mine, and more regionally, ancompared to the prior quarter?s goldquarterly guidance of between

RC drilling campaign has commenced on the company?s Tarnagulla tenements.

Furthermore, in September 2013, LionGold diversified its revenue stream with the signing of an oreprocessing

agreement with A1 Consolidated Gold, which LionGold has agreed to subscribe to a 19.9%

LionGold Corp Ltd

(Incorporated in Bermuda)

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stake in the company via two tranches1 . In conjunction with the agreement, Castlemaine Goldfield?s

Ballarat gold plant will process up to 150,000 tonnes of ore per year from the A1 Gold Mine over a three

year period (which may be extended upon agreement for a further three years). The agreement doubles

the current throughput of 150,000 to 200,000 tonnes of ore at the 600,000 tonne capacity Ballarat plant

and is expected to commence in the coming months. LionGold will receive a share of gold revenues

achieved from the A1 Gold Mine in addition to revenues from a toll treatment rate per tonne of ore

processed.

Completion of Acadian Acquisition

Furthermore, LionGold is pleased to announce the completion of the acquisition of all remaining shares

of

outstanding shares of Acadian. Acadian shares are expected to be delisted from the TSX-exchange

shortly after its trading halt on 10 October 2013.

Backed by an experienced team, Acadian has multiple gold tenements in Nova Scotia, Canada, with a

focus on the Beaver Dam and Fifteen Mile Stream projects. These are within the Meguma Gold Terrain

and hold a combined resource of 1.333 million ounces of free-milling gold. The resource at Fifteen Mile

Stream has recently been upgraded, and efforts are underway for a detailed feasibility study for an open

pit operation with a centralised processing facility. The area enjoys excellent infrastructure support and

a climate conducive to year-round mining activities. The Group is of the view that the investment provides

an inexpensive foothold in an under-explored gold-bearing region in Canada that is consonant with a

longer term plan to create a North American Hub of gold mining operations.

LionGold grows diversified gold mining assets

With the acquisition of Acadian, LionGold now holds 7.0 million ounces of gold resources, with 900,000

ounces

an annualized production of 40,000 to 50,000 ounces of gold at an operating cash cost below US$800Acadian Mining (?Acadian? or the ?Company?) which it does not own. LionGold now holds 100% ofof gold classified as reserves. The Group?s wholly-owned Castlemaine Goldfields in Australia has

per ounce. LionGold?s

Brimstone in Western Australia. LionGold also has a 77% stake in Australian-listed Signature Metals,

which holds the Konongo Gold Project in Ghana. Strategic equity interests are also held in Australianlisted

Citigold Corporation, Unity Mining and A1 Consolidated.other wholly owned subsidiaries include: Minera Nueva Vista in Bolivia and

1

In conjunction with the processing agreement, LionGold will subscribe to 34.5 million new A1 shares at A$0.116 per share in

two tranches, which together represent about 19.9% of A1?s enlarged share capital valued at S$4.7 million (A$4 million). The

first tranche of 24.1 million new shares will give the Group approximately 14.9% of the enlarged share capital and the right to

appoint one director to the A1 board. The second tranche of 10.3 million shares is subject to approval by A1?s shareholders

and regulatory agencies. For more information on the transaction, please visit www.sgx.con

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LionGold presents a unique proposition to shareholders with its geographically diversified portfolio of

gold mining assets at various stages of the gold mining project lifecycle. Furthermore, SGX-

designation of LionGold shares and the subsequent further decline in its share price, LionGold is now

trading below its book value while

than many Asia-listed peersST?s recentthe Group?s enterprise value per ounce of gold is significantly lower

59 Mohamed Sultan Road

Sultan Link 02-08

Singapore 238999

Tel: (65) 6690 6860

Fax: (65) 6690 6844

info@liongoldcorp.om

www.liongoldcorp.com