Mr. Campbell Olsen reports

LION ONE PROVIDES CLARIFICATION ON MINING METHODS AT THE TUVATU GOLD MINE

Lion One Metals Ltd. is addressing recent commentary regarding mining methods at its 100-per-cent-owned Tuvatu alkaline gold project in Fiji. The company is aware that certain claims have been made suggesting that Lion One has abandoned shrinkage stoping in favour of an alternative mining method. These claims are inaccurate.

Lion One has not moved away from shrinkage stoping. The company's first shrinkage stope was completed in 2025 producing 5,704 tonnes at an average gold grade of 10.60 grams per tonne. A second shrinkage stope projected to be twice the size of the first was subsequently developed in Zone 5 with a third shrinkage stope under development at the 1,120 level.

The facts: shrinkage stoping at Tuvatu

Far from abandoning shrinkage stoping, Lion One has actively developed and refined this technique throughout 2025 and into 2026. The publicly disclosed record is clear:

• First shrinkage stope completed (third quarter 2025): The company's first shrinkage stope located near surface in Zone 2 targeted a section of the Ura1 lode approximately 62 metres long, 24 m tall and 1.5 m wide. It produced 5,704 tonnes at 10.60 g/t gold.
• "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," stated Lion One Metals in the news release dated Oct. 2, 2025.
• Second shrinkage stope developed (fourth quarter 2025): A second significantly larger shrinkage stope was developed in Zone 5 focused on the UR2 lode. This stope was projected at approximately 60 m long, 50 m tall and 1.5 m wide with expected production of 11,520 tonnes -- roughly double the first.
• Third shrinkage stope -- design under way (2026): Development of a third shrinkage stope between levels 1,116 and 1,156 is currently under way at the design stage. The company has commenced additional surface drilling to tighten up the design and improve geological knowledge of this section of the deposit before mining commences. The company acknowledges that the first shrinkage stope could have been more accurately designed with better geological data in hand, and this program reflects the lesson learned from that experience. The final size for the third stope is yet to be determined and will be confirmed once the additional drilling results are received and assessed. Shareholders will be updated once a final design is established.

Why responsible operators use multiple mining methods

It is a fundamental principle of underground mine engineering that no single mining method is universally optimal. The appropriate technique for any given section of an underground mine is dictated by the physical characteristics of the deposit in that section -- including its width, dip angle, continuity, grade distribution and the geotechnical properties of the surrounding rock mass.

At Tuvatu, the gold mineralization occurs in steeply dipping narrow veins within a complex alkaline geological setting. The deposit is characterized by multiple lode arrays with varying orientations, widths and structural characteristics. This geological complexity -- which is typical of high-grade narrow-vein gold systems worldwide -- means that the optimal mining method will naturally vary from one section of the mine to another.

Understanding mining method selection

In narrow-vein underground gold mining, operators typically employ a combination of techniques, including shrinkage stoping, cut-and-fill stoping, long-hole stoping, and development mining. The selection of method for each section of the mine depends on:

• Deposit geometry -- the width, length, height and dip angle of the vein in that section;
• Geotechnical conditions -- the strength and stability of the surrounding rock mass;
• Grade distribution -- where the highest-grade gold is concentrated within the vein;
• Safety considerations -- the method that provides the safest working environment for mine personnel;
• Economic efficiency -- maximizing gold recovery while minimizing dilution and operating costs.

This is standard practice across the global mining industry and is not unique to Tuvatu or Lion One. Any suggestion that a responsible operator should commit exclusively to a single mining method, regardless of the geological conditions encountered, reflects a fundamental misunderstanding of underground mining.

Shrinkage stoping in context

Shrinkage stoping is a well-established underground mining method that has been used for decades in narrow-vein gold deposits around the world. It is particularly well suited to steeply dipping veins where the orebody is narrow and high-grade, conditions that exist at Tuvatu.

However like all mining methods, shrinkage stoping has practical limitations that experienced operators must manage responsibly:

• Cycle time: A single shrinkage stope can take several months from development to final drawdown. The company's first stope was developed over several months with production occurring from July to September, 2025. The company would reasonably allow three to five months from beginning of stoping to processing.
• Safety considerations: Shrinkage stoping requires staff to work on top of broken ore, which presents inherent safety risks that must be carefully managed. Modern mine management prioritizes worker safety above production targets.
• Capital tied up in inventory: During active mining, approximately 60 per cent of the broken ore remains in the stope to provide a working platform. This ore is only recovered during the final drawdown phase, meaning significant value is held in inventory throughout the mining cycle.
• Geological suitability: Shrinkage stoping works best in steeply dipping orebodies with consistent geometry. Where the vein changes dip, width or orientation, which is common in complex geological settings, other methods may be more appropriate.

Management's position is straightforward: Shrinkage stoping will continue to be used where the orebody characteristics make it the most appropriate method. Where geological conditions call for an alternative approach, the company will apply the safest and most economical technique available. This is exactly what any competent underground mining operation does.

The geological reality at Tuvatu

The Tuvatu gold deposit occurs within the Navilawa caldera in Fiji, which is a complex alkaline geological environment where gold mineralization is hosted in multiple steeply dipping narrow veins (lodes) with varying orientations and characteristics. The deposit includes multiple lode arrays across several zones (Zone 2, Zone 5 and others), each with distinct structural and mineralogical features.

The company has publicly noted that high-grade blowout zones are produced at the intersection of multiple structures with different orientations, a characteristic that underscores the geological variability of the deposit and the need for adaptive mining methods. Gold deposition in alkaline systems is inherently complex and variable, and the precise geometry and grade distribution of each vein section can only be fully understood through detailed underground drilling and geological mapping as the mine develops.

This geological complexity is precisely why Lion One conducts extensive underground infill and grade control drilling to characterize each section of the deposit before mining commences. It would be irresponsible to predetermine a single mining method without first understanding the geological conditions in each area of the mine.

The Arete advantage: experienced mining operator

The strategic transaction with Arete Capital Advisors announced on Dec. 30, 2025, brings significant additional mining expertise to Lion One. Arete is a specialist mining investment and operating group with a demonstrated record in mine management, turnaround and optimization.

Campbell Olsen being appointed chief executive officer on Feb. 25, 2026, brings extensive experience in international resource investment and operational leadership within the mining sector, including substantial experience in high-grade underground gold mining. Under the management service agreement, Arete will provide specialist technical engagement to systematically advance Tuvatu and build long-term value for shareholders.

"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," said Mr. Olsen, CEO, Dec. 30, 2025.

Decisions about mining methods at Tuvatu are and will continue to be made by qualified mining engineers and geologists with direct knowledge of the underground conditions. These are complex technical decisions that require hands-on operational expertise not speculation from outside parties which do not have access to the detailed geological and geotechnical data that inform mine planning.

The company advises that its current mine development plan is not based on a feasibility study of mineral reserves, demonstrating economic and technical viability. As a result, there is increased uncertainty and a higher risk of economic and technical failure associated with the development of a commercially minable deposit. There is no assurance that the company will achieve anticipated levels of mineral recovery or production costs.

What shareholders should know:

• Lion One has not abandoned shrinkage stoping. The company completed its first shrinkage stope in 2025, is developing additional shrinkage stopes and will continue to use this method where appropriate.
• Multiple mining methods are standard practice. Every competent underground mining operation adapts its methods to the geological conditions encountered. This is a strength not a weakness.
• The deposit dictates the method. Geology at Tuvatu is complex and variable. The company will utilize the safest and most economical technique for each section of the mine as determined by the deposit characteristics encountered during development.
• Experienced operators are in charge. The Arete management team brings deep expertise in underground gold mining. Mining method decisions will be made by qualified professionals with direct knowledge of underground conditions.

Lion One remains focused on what matters: safely and efficiently developing Tuvatu into a robust long-life underground gold mine. The company will continue to provide transparent updates on its operations, mining methods and production progress.

Qualified person

In accordance with National Instrument 43-101 (Standards of Disclosure for Mineral Projects), Stephen Jeffers, FAusIMM, an employee of the company, is the head of mining operations and qualified person for the company, and has approved the technical and scientific content of this news release.

We seek Safe Harbor.