Lions Bay Capital Inc. Reports Earnings for the Year Ended May 31, 2021

• Lions Bay earned net income of $6.1 million for the year ended May 31, 2021
• The fair value of the Company's investment portfolio is $11.5 million as at May 31, 2021

Vancouver, British Columbia--(Newsfile Corp. - September 28, 2021) - Lions Bay Capital Inc. (TSXV: LBI) ("Lions Bay" or the "Company") announces the Company earned net income of $6.1 million, or $0.05 per share, for the year ended May 31, 2021, compared to a net loss of $432,321, or $0.00 per share, for the year ended May 31, 2020. Total shareholders' equity increased from $2.3 million to $11.0 million from May 31, 2020 to May 31, 2021 as a result of the market value of the Company's investment portfolio increasing during the year ended May 31, 2021 from $3.4 million to $11.5 million. As at May 31, 2021, Lions Bay had working capital of $12.2 million.

The Chairman and Chief Executive officer, Mr. John Byrne commented: "We are now starting to see the results of our investment strategy and we expect continued improvement as these investments move towards maturity. Our largest investment by value is our shareholding in Elementos Ltd. which as at May 31, 2021 was valued at $3.8 million. Elementos Ltd. is a tin exploration and development company and is the owner of Oropesa tin project in Spain. This is one of the best undeveloped tin projects in the world and we expect development to commence in 2022 following the delivery of a Bankable Feasibility study. Elementos Ltd. recently completed a highly successful drilling program and a new resource estimate is expected next month. With tin prices soaring to over $US38,000 a tonne, we expect the share price to continue to appreciate. Two of our other listed investments, Parkway Minerals and South Harz Potash, successfully completed fund raising in the last six months and are now well placed to deliver on their respective business plans."

The two other major listed investments are Fidelity Minerals Corp. and Kalina Power Ltd. Mr Byrne commented: "We believe Fidelity Minerals represents exceptional value at current levels and will attract significant interest as exploration starts on its Las Huaquillas gold property in Peru. It has taken almost three years to restructure Fidelity and acquire world class projects. We expect Fidelity will be in a position to deliver a new NI43-101 report in Las Huaquillas by September 2022 and that this will form the basis of negotiations with major mining groups."

Kalina Power is listed on the ASX and has global patents over a green technology which converts low temperature heat to electricity. "Kalina is in the right space at the right time with the right technology," Mr. Byrne said. "The share price has the potential for a rerating, as we expect, Kalina proceeds with the first of a number of projects in Alberta in the next three months and lists on a North American exchange."

Lions Bay management plans to convert profits from its share investments into direct interests in long term resource projects.

Lions Bay has entered into an option agreement with the holder of prospective rare earth exploration tenements in Victoria, Australia. Under the terms of this agreement, LBI has 120 days to decide if it wants to enter into a JV whereby it can earn a 50 per cent interest in the tenements by spending AUD $5.0 million (CAD $4.6 million) over 3 years. A potentially significant rare earth discovery has been made on the adjoining tenements by Australian Rare Earths. The rare earths are contained in an ionic clay formation similar to those which host rare earths in China. Lions Bay plans to commence a drilling program in October to test the continuity of the rare earths and clays.

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.

Disclaimer & Forward-Looking Statements: This news release contains forward-looking statements. Forward-looking statements are statements that relate to future events or future financial performance. In some cases, you can identify forward-looking statements by the use of terminology such as "may", "should", "intend", "expect", "plan", "anticipate", "believe", "estimate", "project", "predict", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements speak only as of the date of this news release. This news release may also contain inferences to future oriented financial information ("FOFI") within the meaning of applicable securities laws. The information in this news release has been prepared by our management to provide readers with an outlook for our future activities.

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