Mr. John Byrne reports

LIONS BAY ANNOUNCES PLAN TO CONSOLIDATE SHARE CAPITAL AND NON-BROKERED PRIVATE PLACEMENT

Lions Bay Capital Inc. intends to complete a consolidation of its common shares on the basis of five preconsolidation common shares for one postconsolidation common share. As of the date hereof, there are 142,105,852 common shares issued and outstanding. On a postconsolidation basis, the company shall have approximately 28,421,170 common shares issued and outstanding.

The company would also like to announce it has arranged a non-brokered private placement of up to 10.85 million units of the company at a postconsolidation price of 10 cents per unit for aggregate gross proceeds of up to $1,085,000. Each unit will consist of one common share and one-half common share purchase warrant, with each full warrant being exercisable to purchase one common share at a price of 20 cents for 24 months from the date of issuance.

The consolidation and private placement are subject to approval of the TSX Venture Exchange and are expected to close concurrently. All securities issued under the private placement will be subject to statutory hold periods expiring four months and one day from the date of closing of the private placement.

The company intends to use the net proceeds raised from the private placement for to carry out the due diligence procedure on the co-generation power plant, debt reduction and general working capital.

About Lions Bay Capital Inc.

Lions Bay Capital is a TSX Venture Exchange-listed investment issuer that is focused on high-return investment opportunities, principally in the mining, clean energy and clean technology sectors, where it provides public and private companies with strategic and financial support.

We seek Safe Harbor.