Lion One Announces Message from the CEO and Tuvatu Gold Mine Operations Update

Core Message - Lion One Metals Limited is focused on transitioning its Tuvatu Gold Mine into a sustainable, high-quality business, emphasizing long-term value creation and operational improvements [2][3]. Operational Performance - In February, Lion One produced 813 ounces of gold, with a year-to-date total of 9,180 ounces. The processing plant milled 10,267 tonnes of ore at an average grade of 3.49 grams per tonne, with a gold recovery rate of 77.3% [6][7]. - Underground development faced challenges, with only 120 metres developed against a target of 188 metres due to equipment availability and compressed air constraints [8]. - The geology team drilled 2,369 metres in February, achieving significant results, including an intercept of 5.15 metres at 9.18 grams per tonne, which enhances confidence in the resource base and mine life [9]. Major Projects - The flotation plant commissioning is nearing completion, A$400,000 under budget, which is expected to improve gold recovery and reduce tailings loss [10]. - The construction of the Tailings Storage Facility Stage 2A was completed in December 2025, with Stage 2B engineering approved in February [10]. Financial and Operational Discipline - The company is actively managing working capital, with expectations of stronger near-term cash generation due to improved recovery profiles and higher grades [12]. - Capital allocation is disciplined, focusing on mine development, reliability, and growth drilling [12]. Key Areas of Focus for Q2 2026 - Advance mine development and access to meet full development meterage targets [13]. - Optimize plant performance and recoveries through flotation circuit optimization [14]. - Strengthen infrastructure and reliability, including completing a high-voltage power study [15]. - Enhance water and tailings management with a long-term water treatment solution [16]. - Maintain safety, compliance, and community trust with a zero-harm safety culture [19]. Closing Thoughts - February demonstrated the team's capabilities in safe execution and disciplined cost management, while acknowledging the challenges faced [20]. - The upcoming months are critical for improving capital development rates and stabilizing equipment performance [21].