Lions Bay Capital Inc. Provides Update on Proposed Acquisition of South African Gold Interest

Vancouver, British Columbia--(Newsfile Corp. - October 8, 2020) - Lions Bay Capital Inc. (TSXV: LBI) ("Lions Bay" or the "Company") announces they have been advised by Salamander Mining International Limited ("Salamander") that Salamander's proposal to acquire a group of gold assets in South Africa currently under the control of a Business Rescue Practitioner has been distributed to the creditors for consideration. The assets are owned by subsidiaries of Vantage Goldfields Ltd ("Vantage"). Vantage was listed on the Australian Stock Exchange up until early 2015 and its annual reports and presentations are on the public record. A number of South African subsidiaries of Vantage were placed in business rescue in 2016 following a tragic accident at one of the mines that resulted in the death of three employees.

In a news release on September 14, 2020, Lions Bay advised it had entered into a heads of agreement with Salamander which will give the Company the right to acquire up to a 50 per cent interest in any assets acquired by Salamander under its proposal. Any definitive agreement will be subject to TSX-V approval.

In December 2017, Salamander entered into an agreement with the Business Rescue Practitioner which provided for Salamander to re-treat residues from the mines. The Business Rescue Practitioner and the companies he administers were unable to perform under the terms of the agreement and as a consequence Salamander instituted a multi million dollar post commencement claim for expenses incurred and damages suffered. Salamander is in a position to significantly increase the quantum of damages claimed and approach the South African High Court for relief. Salamander has said it is prepared to waive these damages if its offer is accepted.

Any offer will ultimately require support from various parties and could result in protracted legal action. There is no certainty that Salamander will be successful in its endeavours and there are a number of potential outcomes.

Salamander has other mining assets and under its heads of agreement Lions Bay will be mandated to assist in taking Salamander public.

About Lions Bay Capital Inc.

Lions Bay Capital Inc. is a TSX-V 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.

On behalf of the Board of Lions Bay.

John Byrne
Executive Chairman
Tel: +61 3 9236 2800
Email: [email protected]

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/65569