Lions Bay Capital Provides Corporate Update

Vancouver, British Columbia--(Newsfile Corp. - January 7, 2019) -  Lions Bay Capital Inc. (TSXV: LBI) ("Lions Bay" or "the Company") is pleased to provide a corporate update on recent activities and important upcoming milestones.

Corporate Update

  • Montan Mining Corp. (TSXV: MNY)
  • Consolidated Potash Corporation (Unlisted: CPC)
  • Elementos (ASX: ELT)
  • Kalina Power Limited (ASX: KPO)
  • Jervois Mining Limited (ASX: JRV)
  • Seed Positions

Overview

Lions Bay was recently established to focus on high return investment opportunities, principally in the mining, clean energy and clean technology sectors. The business strategy is based on leveraging the transaction experience and network of the board, in order to identify, structure and execute, strategic transactions where the board is of the belief that substantial value can be created through the involvement of Lions Bay. Throughout 2018, Lions Bay led a number of important transactions, mostly within investee companies, which provide the Company with a strong platform for sustainable near-term value creation.

Montan Mining Corp. (TSXV: MNY)

In mid-2018, as a major shareholder (and control-person) of Montan Mining, Lions Bay led a strategic review to determine an appropriate strategy to reposition the company for future growth. Lions Bay has supported Montan Mining during this transitional period, through a restructure and recapitalisation initiative that is approaching completion. These initiatives have allowed Montan Mining to concurrently pursue an active new ventures program, as the company works towards the restart of Cerro Dorado, a small 45TPD (permitted to 115TPD) CIP gold processing plant, in Southern Peru. With the support of Lions Bay, on December 6th 2018, Montan Mining announced the acquisition of the highly prospective, Greater Las Huaquillas (GLH) project located in Northern Peru. The GLH project provides Montan Mining with a substantial and immediate position in a world-class mineral province within the Andean Copper Belt. Montan Mining has moved swiftly to more than double the footprint of the GLH project since the acquisition announcement and is on track to relaunch the company, with a renewed focus and determination, in early 2019.

Consolidated Potash Corporation (Unlisted: CPC)

Lions Bay is in the process of acquiring the balance of Consolidated Potash, an important step in being able to position the company for a planned IPO in the first half of 2019. Further to the detailed update provided in the November 16, 2018 news release, Consolidated Potash continues to make important progress on a number of important fronts. Consolidated Potash has now completed the acquisition of an initial 50% interest in a highly prospective North American potash and lithium project where CPC's aMES™ technology is particularly well suited to an integrated and accelerated development schedule; should mineral resource definition studies progress satisfactorily. Consolidated Potash has made similarly encouraging progress with company's flagship Karinga Lakes potash project in Australia, where Consolidated Potash is earning up to a 40% interest. Preliminary findings of an internal scoping study envisaging development of the Karinga Lakes project with the aMES™ technology, provide Lions Bay with strong encouragement of the substantial advantages of this next generation brine processing technology.

Elementos (ASX: ELT)

As a major shareholder of Eurotin (TSXV: TIN) the owner of the advanced stage Oropesa tin project in Spain, in July 2018, Lions Bay facilitated a transaction envisaging the acquisition of the Oropesa project by Elementos. Lions Bay has been supporting the efforts of Elementos to build a multi-project, tin company that is of a scale capable of attracting major investor interest. In addition to the flagship Oropesa project, Elementos has been progressing the development of the Cleveland tin project in Australia as well as the Temengor project in Malaysia. Lions Bay is optimistic that as Elementos completes the acquisition of Oropesa and progresses each of its projects towards important milestones, the strategic value of a portfolio of advanced stage tin projects, will be recognised by the market.

Kalina Power Limited (ASX: KPO)

After an extensive business development period, Kalina Power has emerged with a portfolio of high-calibre project opportunities focused on Western Canada. Kalina Power is pursuing the development of multiple combined cycle power plants utilising KALiNA Cycle technology with established industry players. The pipeline of project opportunities is material in size and has the potential to position Kalina Power as a key catalyst to addressing major energy related challenges and building a profitable business underpinned by the company's patented technology.

Jervois Mining Limited (ASX: JRV)

The directors of Lions Bay played a pivotal role in recapitalising and repositioning the company as an agile junior focused on advanced stage nickel and cobalt projects. Jervois Mining is focused on the finalisation of the Nico Young Pre-Feasibility study, as well as pursuing an aggressive new ventures program. Given the extensive experience of the Jervois Mining team, Lions Bay remains confident that in time, Jervois Mining will assemble a portfolio of high-quality assets.

Seed Positions (various)

Lions Bay holds a number of small, but potentially strategic seed investment positions in a number of junior listed and unlisted companies. Whilst these positions are not material from a balance-sheet perspective, they provide the Company with a number of proprietary opportunities and optionality which the Company intends to pursue, at the appropriate time.

Comment from the Chairman

"The 2018 calendar year has been one of foundation building. During our first year as a listed company, Lions Bay has made significant progress in establishing seed positions in several prospective companies and working with the management teams of our investee companies. After our successful turnaround of Jervois Mining, we are pleased to have been able to set-up Montan Mining on a similar trajectory, instigate M&A activity with Elementos, whilst incubating Consolidated Potash to the point where we believe we are ready to float the company. With foundations in place, and following a recent rebalancing of our portfolio, we are excited about the opportunity of executing additional transactions in 2019 and building on the foundations we have put in place throughout 2018." said John Byrne, Executive Chairman of Lions Bay Capital Inc.

About Lions Bay Capital Inc.

Lions Bay Capital Inc. is a TSXV-listed Investment Issuer that is focused on high return investment opportunities, principally in the mining, clean energy and clean technology sectors, where it will provide public and private companies early-stage financial support by way of equity or debt.

On behalf of the Board of Lions Bay.

John Byrne
Director
Tel: +61 3 9236 2800
Email: jbyrne@lionsbaycapital.com

Bahay Ozcakmak
Director
Tel: +61 3 9236 2800
Email: bahay@lionsbaycapital.com

For more information, please visit the corporate website at www.lionsbaycapital.com or contact the above.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

Cautionary Statement Regarding Forward-Looking Information

This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "will", "plan", "intends", "may", "will", "could", "expects", "anticipates" and similar expressions. Further disclosure of the risks and uncertainties facing Lions Bay and other forward-looking statements are discussed in Lions Bay's Management's Discussion and Analysis which is available under the Company's profile on www.sedar.com.

Forward-looking statements are based on assumptions made by and information currently available to the Company. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the beliefs, plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, for the Company and the companies it is invested in, but are not limited to, commodity prices, fluctuations in revenues and expenses, need for additional funding, availability of such additional funding and that funding will be on acceptable terms, retention of key employees, economic conditions, currency fluctuations, competition and regulations, legal proceedings and risks related to operations in foreign countries.

The forward-looking statements in this press release are made as of the date they are given and, except as required by applicable securities laws, the Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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