Lion One Metals Initiates Phase 1 Mill Expansion to Elevate Tuvatu Gold Output by 33%

Filtered Tailings Expansion Addresses Key Processing Bottleneck

The Phase 1 expansion focuses on enhancing the filtration circuit at Tuvatu’s processing plant, identified as the main constraint limiting current throughput. Presently, the plant operates two filter presses with a nominal capacity of 300 tonnes per day. The Filtered Tailings Expansion Project will add two additional filter presses, a filter feed tank, two filter feed pumps, related structural and piping upgrades, and an extra tailings truck.

Doubling filtration capacity will raise the mill’s throughput from 300 to 400 tonnes per day. Notably, no extra mining or processing equipment is needed to support this increase. The new filter presses will match the existing units to maintain uniformity in parts and operations across the facility.

Capital Outlay and Financial Benefits at Current Gold Rates

Phase 1 requires a capital investment of C$1.9 million, with incremental operating costs estimated at C$230,000 annually. At a gold price of US$4,000 per ounce, the increased throughput to 400 tonnes per day is projected to generate about C$11.8 million in additional annual revenue. After covering operating expenses, the payback period is expected to be just three months, followed by sustained financial gains.

The expansion is forecasted to produce an extra 2,100 ounces of gold annually, based on a conservative incremental gold grade of 3 grams per tonne. This cautious grade assumption highlights the project’s robust economic efficiency, combining a swift payback with significant revenue uplift.

Construction Schedule and Execution of Phase 1

Design and construction for the Filtered Tailings Expansion Project are underway. The build phase is expected to last between six and nine months, targeting completion by the end of Q1 2027, allowing operations to commence early that year.

This phased expansion strategy enables controlled capital deployment and risk management. The overall 700 tonnes per day mill expansion carries an estimated total cost of C$13.5 million, with Phase 1 accounting for roughly 14% of this investment while delivering a substantial capacity increase.

Comprehensive Expansion Plan and Subsequent Phases

Phase 1 is part of a broader initiative to grow plant capacity from 300 to 700 tonnes per day. While Phase 1 details regarding timelines and economics are disclosed, specifics on later phases remain forthcoming.

The Tuvatu Gold Mine, operational since late 2023, includes the high-grade Tuvatu Alkaline Gold Deposit, Underground Gold Mine, Pilot Plant, and Assay Lab. Lion One also holds an extensive exploration license over the Navilawa Caldera, home to multiple mineralized zones and promising exploration targets.

Executive Commentary on Expansion Economics

Ian Berzins, CEO and President of Lion One, expressed enthusiasm about initiating Phase 1, calling the filter press expansion "a key component of the 700 TPD upgrade" with an "immediate impact on production capacity." He described the project economics as "very strong," highlighting the three-month payback period.

Berzins noted the rarity of capital projects combining significant production impact with such rapid payback, underscoring the favorable operational and financial outlook for this expansion.

Corporate Governance Enhancement: Appointment of New Corporate Secretary

Alongside the expansion update, Lion One appointed Shayla Forster as Corporate Secretary. Ms. Forster brings extensive expertise in corporate secretarial, governance, compliance, and disclosure services for publicly listed companies on the TSX Venture Exchange, Canadian Securities Exchange, and OTCQB.

This appointment reflects Lion One’s evolving corporate governance as it transitions from development to production, emphasizing regulatory compliance and formal governance structures.

Quality Control and Laboratory Operations at Tuvatu

Lion One operates an in-house geochemical assay laboratory and diamond drill rig fleet at Tuvatu, implementing quality assurance and control procedures exceeding regulatory standards. Drill core samples are logged onsite, with exploration core split for analysis and retention, and grade control core assayed whole.

Samples are prepared and analyzed at the Lion One Laboratory, pulverized to 85% passing 75 microns. Gold assays use fire assay with atomic absorption finish; samples exceeding 10 grams per tonne undergo gravimetric re-analysis for accuracy. Five percent of samples above 0.5 grams per tonne are independently verified by ALS Global Laboratories in Australia.

Technical Review and Qualified Person Certification

William J. Witte, P.Eng., Principal Advisor to Lion One, serves as the Qualified Person under National Instrument 43-101 standards and has reviewed and approved the technical content of this announcement. This certification ensures compliance with regulatory requirements for technical disclosures.

The involvement of a Qualified Person confirms adherence to Canadian securities regulations for material technical information related to mining and capital projects.

Investor Guidance on Phase 1 Progress

Investors should monitor Lion One’s advancement toward the targeted Phase 1 completion by end Q1 2027. Key milestones include design and construction progress, supply chain delivery of filter presses and related equipment, and updates on timeline or budget. The three-month payback depends on achieving the projected 2,100 additional ounces annually and maintaining incremental operating costs of C$230,000.

The immediate share price reaction was unclear at announcement time. Future company performance will likely hinge on Phase 1’s success in meeting production and financial targets. Material changes to scope, schedule, or economics would be disclosed in subsequent updates.