Using the past producing Bell Mine and the nearby Huckleberry Mine as models, LGM has identified similar magnetic and electromagnetic signatures throughout the Poplar tenements. The geophysical survey presented targets for geochemical and geophysical follow up in order to determine where additional mineralization occurs. The proposed work program for this year includes the geochemical and geophysical follow up in addition to the 5,200m drill program announced on January 18, 2010.

Lions Gate Metals commissioned Aeroquest International Limited (“Aeroquest”) to perform the airborne survey after reviewing encouraging results from Geoscience BC’s 2008 Quest West Airborne geophysical survey. In November 2009, Aeroquest flew a detailed infill survey over the Poplar claims using the same AeroTEM3 / MAG platform. Magnetic and Electromagnetic imaging indicates four unexplored and three partially explored targets that have signatures consistent with the possible presence of buried or hidden porphyry copper / porphyry copper-molybdenum deposits. Initial results were so encouraging that an additional 105.8 line km were added to the survey for a total of 2,767 line km. An additional 10,396 hectares of ground were staked to cover these extensions and the surrounding ground. Preliminary till sampling was performed over the majority of the Quest West anomalies within LGM’s tenures in the fall of 2009, results of which are pending. Additional sampling is planned for the summer of 2010 to develop these new targets and prioritize a potential drill program this fall.

In conjunction with the extensive airborne geophysical survey over the Poplar property, LGM has identified extensions of the IP anomaly in the Poplar Main Zone. In October 2009, a Deep Induced Polarization (“IP”) survey was completed on the Poplar Deposit. The Poplar Deposit has a published historic mineral resource of 236,000,000 tonnes at 0.37% copper equivalent grade using 0.25% copper equivalent grade cutoff. The estimation of copper equivalent grade was made in 1982 using metal prices prevalent at that time. This reserve estimate was prepared prior to the implementation of National Instrument 43-101 Standards of Disclosure for Mineral Projects (”NI 43-101″), and does not comply with that standard; nor does the term copper equivalent grade comply with that standard. The resource estimate was produced prior to the publication of the CIM Standards on Mineral Resources and Mineral Reserves, and does not provide further classification of the estimate into Measured, Indicated or Inferred Mineral Resources. The data used and the resulting estimate may not be relied upon until they have been confirmed by using standards compliant with NI 43-101. The potential for Lions Gate Metals to reproduce the historical estimate or to expand the resource by further work is speculative. Investors are cautioned that a Qualified Person as defined under NI 43-101 has not yet completed adequate testing of the Poplar Deposit, or adequate review of the historical data to define a current resource that is in compliance with NI 43-101. Lions Gate Metals does not consider the historic resource to represent a current mineral resource.

These grades are consistent with current and past producing mines in the area. The Deep IP survey has revealed extensions in the IP anomaly below known mineralization tested by past drilling. A 5200m drill program has been proposed for completion this year to determine depth and grade of the mineralization below the Poplar Main Zone. Funding of the proposed Poplar work program is subject to completion of the private placement forming part of the Ausnico business combination transaction announced on December 18, 2009.

The Poplar property has grown in size by a combination of claim staking and option agreements from 49,162 hectares in early 2009 to 63,936.8 hectares in early 2010 and has exciting new data regarding its mineralization.

Thank you for your continued support.

Sincerely,

“Arni Johannson”

Arni Johannson
CEO

Lions Gate Metals Inc. is a Canadian based, junior resource company focused on the exploration, development, and acquisition of both advanced and early stage mineral projects.

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 release.

Forward-Looking Information

This news release contains forward-looking information, including statements regarding the following: geological interpretations and management’s expectations in respect the Company’s Poplar project; the timing and content of upcoming work programs; and the Company’s plans to fund further exploration on the Poplar project.

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Company’s periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting drill results and other exploration data including IP Surveys and Airborne Geophysical Surveys; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations; fluctuating metal prices; the possibility of project cost overruns or unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions and liability; competition and loss of key employees; and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

Technical Disclosure

Peter Ogryzlo, M. Sc., P. Geo., the Technical Advisor of LGM and a “qualified person” within the meaning of National Instrument 43-101, has reviewed and approved the scientific and technical disclosure contained in this news release.

Terms of the LOI

Under the terms of the LOI, Lions Gate will be granted an option (the “Option”) to acquire a seventy-five percent (75%) interest in the Property in consideration of an aggregate of 650,000 common shares of the Company, an aggregate of $496,000 in cash payments and an aggregate work commitment of $2,329,000 over a period of four years (the “Option Period”). During the Option Period, Lions Gate will be the operator on the Property.

It is intended by the parties that the LOI will be superseded by a formal mineral lease option agreement within 45 days. Lions Gate and Firesteel will provide further updates by way of news releases when a formal agreement is signed.

An initial cash payment of $50,000 has been paid by Lions Gate to Firesteel which shall be credited against the cash payment and work commitment obligations under the Option. Any common shares issued pursuant to the Option shall be subject to a pooling arrangement providing for the release of 25% of such shares on issuance and 25% every three months thereafter. Lions Gate shall also have a first right to repurchase or arrange for the purchase of any shares to be issued to Firesteel.

Firesteel retains the right to acquire a five percent (5%) interest in the Property at any time following the date which is three years after the Option is approved by the TSX Venture Exchange (TSX-V) and until a production decision is made concerning the Property for total consideration of $200,000. In the event Firesteel elects to exercise this right, Lions Gate’s rights under the Option would be to a 70% interest in the Property. Firesteel will also be granted a 2% net smelter royalty (”Royalty”) on the Property, subject to Lions Gate’s right to purchase ½ of such royalty (1%) for $1,000,000 at any time within 240 days of commencement of commercial production.

The Property consists of two blocks earned or under option by Firesteel from previous claim holders, each with 2% Royalty obligations; one block in an area of common interest with a 0.5% Royalty obligation; and a fourth block with no previous Royalty obligation.

Lions Gate has agreed to pay a break fee of $10,000 if the LOI is terminated.

The acquisition of the ROK - Coyote project is an opportunity for Lions Gate to expand its project portfolio in British Columbia. The Property is situated in the Stikine Arch region of northwestern B.C. about 8 km southeast of the Iskut Village on Highway 37 and 12 km west of the BC Rail extension road bed. The Property comprises 19 contiguous claims covering 6,891 Ha. Lions Gate believes that this Property is a highly prospective copper-gold alkalic porphyry targets in BC and warrants a significant exploration program to test its potential.

The Property is adjacent to and immediately northwest of the Imperial Metals Corporation’s (“Imperial Metals”) Red Chris copper–gold deposit (with measured and indicated resources of 446.1 million tonnes at 0.36% Cu and 0.29 g/t Au, at 0.20% Cu % Cutoff, as reported on page 52 of Imperial Metals’ Annual Information Form dated March 30, 2009). In a news release dated November 9, 2009 Imperial Metals also reported the Red Chris Drill hole RC09-350 returned 152.5 metres grading 4.12% copper and 8.83 g/t gold starting at a depth of 540.0 metres. Firesteel has reported that the Property covers a copper-gold porphyry target located within a large hydrothermal sulphide system measuring at least 9 sq. km. atop the Tanzilla Plateau. Access to the Property is easily gained from Hwy. 37 along the west side of the claim group or from the Ealue Lake secondary road which crosses the southern half of the Property in an east-west direction.

Property geology is reported as Lower Jurassic, Hazelton Group volcanics and sediments intruded by Early Jurassic, hornblende quartz monzonite and syenite plugs and dykes. Copper-gold mineralization is related to emplacement of the intrusives. Post mineral, barren Hazelton volcanics cap part of the system. Alteration includes well mineralized quartz stockworks & intense potassic alteration passing outward to phyllic and propylitic alteration assemblages.

Exploration work on the Property dates back to 1929 when copper was discovered at the Klappan Rose showing. Between then and the 1970’s, when Texasgulf discovered the Red Chris deposit, exploration was intermittent and minimal. After the discovery, there was a period of increased exploration activity but it was largely limited to prospecting, geological mapping and some localized geophysical surveys.

Going Forward

LGM management is highly encouraged by the findings to date (which will be subsequently released in a news release at a later date) and intends to follow them up with a 2010 exploration program consisting of extending the geophysical grid to the West to cover the entire Th/K anomaly, conducting additional IP chargeability and resistivity readings over the entire grid and possibly drilling up to 1500 meters of drill holes to follow up findings from this program.

Sincerely on behalf of the Board of Directors,
“Arni Johannson”
Arni Johannson
CEO and Chairman of the Board
Lions Gate Metals Inc.

Lions Gate Metals Inc. is a Canadian based, junior resource company focused on the exploration, development, and acquisition of both advanced and early stage mineral projects.

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 release.

Forward-Looking Statements
Statements in this release that are forward-looking statements, including statements relating to the Company’s plans to complete a definitive agreement with Firesteel and to undertake the 2010 exploration program on the Property, are subject to various risks and uncertainties concerning the specific factors identified in the Company’s periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

Lorie Farrell, Project Geologist for LGM states, “Many of the historical drill holes ended in mineralization. This led us to hypothesize that the mineralization may continue below the drill holes and beyond the extent of the previous IP surveys. The results from the recent Deep IP Survey support this theory.” The Deep IP survey was performed in October 2009 by Insight Geophysics Inc. A total of 7 line km of Deep Insight Array sections and 13 line km of Tuned Gradient survey were completed. The surveys were designed to locate extensions of the high grade zones at depth in the main zone, to identify near surface extensions of deep mineralization in from the Poplar East Zone and to locate additional untested areas that may be connected to known mineralization. A 5,200 metre drill program has been proposed to test the grades at depth in the new potential high grade areas that were revealed by the surveys as well as test additional targets in the Main Zone. The drill program will be conditional upon the Company’s ability to raise adequate funds for this program.

The Poplar property has grown in size from 49,162 hectares in early 2009 to 63,936.8 hectares in early 2010. LGM is encouraged by this new data regarding its mineralization.

About Lions Gate Metals
LGM is a Canadian based, junior resource company focused on the exploration, development, and acquisition of both advanced and early stage mineral projects. LGM owns 100 % of three substantial copper and molybdenum projects located in British Columbia. LGM’s flagship project is the Poplar porphyry copper - molybdenum deposit.

Thank you for your continued support.
Sincerely,
“Arni Johannson”
Arni Johannson
CEO

Lions Gate Metals Inc. is a Canadian based, junior resource company focused on the exploration, development, and acquisition of both advanced and early stage mineral projects.

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 release.

Forward-Looking Information
This news release contains forward-looking information, including statements regarding the following: geological interpretations and management’s expectations in respect of the Company’s Poplar project; the timing and content of upcoming work programs; and the Company’s ability to raise adequate funds to conduct the proposed drill program on the Poplar property.

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Company’s periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting drill results and other exploration data including IP Surveys and Airborne Geophysical Surveys; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations; fluctuating metal prices; the possibility of project cost overruns or unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions and liability; competition and loss of key employees; and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

Technical Disclosure
Peter Ogryzlo, M. Sc., P. Geo., the Technical Advisor of LGM and a “qualified person” within the meaning of National Instrument 43-101, has reviewed and approved the scientific and technical disclosure contained in this news release.

Lions Gate Metals Inc. is a Canadian based, junior resource company focused on the exploration, development, and acquisition of both advanced and early stage mineral projects. Lions Gate Metals owns 100 % of three substantial copper and molybdenum projects located in British Columbia. The management team understands the complex dynamics of the mining industry and has created a highly attractive corporate structure to maximize success.

On behalf of the
Board of Directors
“Arni Johannson”
Arni Johannson
Chairman of the Board

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 release.

Shareholders,

The last few months have been full of activity. LGM has made significant progress in a number of key business areas. In this letter, I will update you on our progress and plans moving forward.

The four foundations of our business strategy are:
1. Execute on well defined mergers and acquisitions strategy
2. Develop relationships with strategic capital and technical partners
3. Build and add value to our asset portfolio by acquisitions and/or sale
4. Advance the Poplar deposit by defining new targets and size potential

As announced in our press release dated December 18, 2009, Lions Gate Metals has entered into a binding letter of intent (“LOI”) with AusNiCo to undergo a business combination. The terms and conditions of the merger are outlined in that news release. This merger aligns well with our strategy to grow the company’s asset portfolio. AusNiCo holds significant land tenements in South Queensland, Australia. This region is well known for its extensive mineralization and mining history. The attraction for us in this transaction was the innovative modeling approach by AusNiCo’s technical team. This proven management team has discovered what they believe to be a previously untapped nickel resource. Despite extensive exploration in the region, traditional geological models have left the occurrence of nickel sulphides relatively unnoticed. With modern techniques, inventive thinking, and sound geological modeling, LGM is confident that the Ausnico tenements have the potential to become a new nickel province.

Meetings continue with potential strategic Pacific Rim partners whose interests lie in funding the continued development of the Poplar Project. A potential joint venture with them will allow us to drill the Poplar project and maintain our capital structure. The net result of a strategic joint venture would mean less dilution and stronger value for shareholders. LGM has received a number of proposals and the executive team is evaluating and looking to deliver a completed joint venture once the merger with AusNiCo has been completed.

Progress on the Poplar deposit continues with the completion of two considerable geophysical surveys late last year. A Deep IP Survey was completed on the Poplar main zone to further enhance our understanding of the size of the resource. Many of the historical drill holes from previous programs end in mineralization. This has led our technical team to hypothesize that the resource continues at depth; that the deposit may go much deeper than initially expected. The preliminary reports from the Deep IP Survey support this theory. While we don’t have the definitive data yet, initial imaging shows anomalies

below the currently defined deposit. Thus, the targets for our 2010 field program will be deep holes in and around the main zone totaling a proposed 5200 metres of diamond drilling.

LGM also completed a sizable Airborne Geophysical Survey in December covering in excess of 2600 line kilometres. Preliminary imaging has indicated some very interesting magnetic and electro-magnetic signatures in multiple locations throughout Poplar. We expect to review the results in the coming days. This information will help us establish where further ground work needs to be done with the ultimate goal of defining new drill targets. There are in excess six regions of the property either partially or completely unexplored. As the work was being completed, our technical team staked additional new claims around anomalies that caught their attention. The Poplar property has grown in size and has exciting new data regarding its mineralization.

As a shareholder and member of the management team of Lions Gate Metals, I see numerous reasons to be optimistic in 2010. LGM is expanding its project portfolio and technical management team through the merger with AusNiCo. Ongoing negotiations with strategic partners continues to attract more attention from the financial community. The Deep IP survey on the Poplar main zone has helped us to define a drill program for 2010 while the airborne geophysical survey has directed us to multiple regions of the Poplar to develop; regions that have previously been unexplored. Recent accomplishments, pending agreements and the strong price of copper will continue to drive LGM’s market value.

Thank you for your continued support.
Sincerely,
“Arni Johannson”
Arni Johannson
CEO

Lions Gate Metals Inc. is a Canadian based, junior resource company focused on the exploration, development, and acquisition of both advanced and early stage mineral projects.

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 release.

Forward-Looking Information
This news release contains forward-looking information, including statements regarding the following: geological interpretations and management’s expectations in respect of the properties of AusNiCo as well as the Company’s Poplar project; expectations in respect of the Ausnico merger; the timing and content of upcoming work programs; and the Company’s plans to complete a joint venture with a strategic partner to fund further exploration on the Poplar project.
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Company’s periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting drill results and other exploration data including IP Surveys and Airborne Geophysical Surveys; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations; fluctuating metal prices; the possibility of project cost overruns or unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future including in respect of the Company’s proposed $3.5 million financing as part of the AusNiCo merger; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions and liability; competition and loss of key employees; and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
Technical Disclosure
Peter Ogryzlo, M. Sc., P. Geo., the Technical Advisor of LGM and a “qualified person” within the meaning of National Instrument 43-101, has reviewed and approved the scientific and technical disclosure contained in this news release.

In addition, at the closing Lions Gate will issue the following securities in settlement of certain Ausnico debt: (i) 2,000,000 warrants, having the same terms as the warrants being issued to the Ausnico optionholders, in settlement of AUD$200,000 of fees owing by Ausnico to its directors; and (ii) 261,818 common shares of Lions Gate to settle AUD$300,000 in loans owing by Ausnico to DGR, on the basis of CDN$1.10 per share (using an agreed exchange rate of 1 Australian dollar = 0.96 Canadian dollars).

At the closing of the transaction, Ausnico will become a wholly owned subsidiary of Lions Gate and the securityholders of Ausnico will become securityholders of Lions Gate.

The Lions Gate shares and warrants to be issued to the Ausnico securityholders under the transaction, and any shares to be issued upon the exercise of the warrants, will be subject to any restrictions on resale, including escrow restrictions, imposed by applicable laws and the TSX Venture Exchange (“TSXV”).

The LOI provides that, as a condition to closing the transaction, Lions Gate will carry out a non-brokered private placement of units to raise gross proceeds of not less than CDN$3,500,000 at a purchase price of not less than CDN$1.10 per unit. Each unit will consist of one common share of Lions Gate and a half warrant, with each whole warrant being exercisable for two years from the closing of the private placement at an exercise price of $1.50 per common share. The private placement will be subject to a financing fee which is comprised of a cash fee equal to seven percent (7%) of the proceeds raised and warrants representing seven percent (7%) of the units sold, such warrants having the same terms as the warrants under the private placement. D’Aguilar Gold Ltd. (“DGR”), the largest, controlling shareholder of Ausnico, will use its commercially reasonable best efforts to procure purchasers under the private placement for an aggregate purchase price of at least CDN$2,050,000.

At the closing of the transaction, based on Lions Gate’s current issued shares and assuming completion of the $3.5 million private placement and the payment of the finder’s fee noted below, Lions Gate is expected to have approximately 24.5 million issued and outstanding shares, approximately 34% of which will be held by DGR and approximately 8% of which will be held by the former Ausnico shareholders.

On the completion of the transaction, the board of directors of Lions Gate will be composed of five directors. Three of the directors will be nominated by Lions Gate and two of the directors will be nominated by Ausnico. Lions Gate will nominate John Icke, Arni Johannson and Mark Hewett, who are current directors of Lions Gate, and Ausnico will nominate Nick Mather and Brian Moller, who are current directors of Ausnico.

Nicholas Mather, BSc (Hons,Geol) MAusIMM

Mr. Mather’s special area of experience and expertise is the generation of and entry into undervalued resource exploration opportunities. He has been involved in the junior resource sector at all levels for more than 25 years. He is currently CEO (and co-founder) of Solomon Gold plc (AIM), a non-executive director of Mount Isa Metals Ltd. (ASX), the Managing Director and co-founder of DGR and, until recently, Non-Executive Chairman and founder of Waratah Coal Inc. (TSXV) which was recently taken over at a value of $120 million.

Brian Moller, LLB (Hons)

Mr. Moller is a corporate partner in the Brisbane based law firm HopgoodGanim. He was admitted as a solicitor in 1981 and has been a partner since 1983. He practices almost exclusively in the corporate area with an emphasis on capital raising, mergers and acquisitions. He acts for many public listed resource and industrial companies.

Following the closing, DGR will have the right to nominate a third director for election at the 2010 annual general meeting of Lions Gate, which must be held within six months following the closing or earlier if requested by DGR. Immediately following the 2010 annual general meeting, the board will appoint a nominee of Lions Gate as Chair of the board who will have a second or casting vote in the case of an equality of votes, subject to shareholder approval of the necessary amendment to Lions Gate’s articles.

The parties have agreed that on completion of the transaction, Arni Johannson will continue as the interim Chief Executive Officer of Lions Gate and Darren Tindale will continue as the Chief Financial Officer of Lions Gate.

The business combination is an arm’s length transaction under the policies of the TSXV. The TSXV has waived the sponsorship requirement in respect of the transaction.

Lions Gate and DGR have each agreed to pay a finder’s fee to Dentex S.A., subject to the prior receipt of any required regulatory approvals. Lions Gate’s portion of the finder’s fee will be equal to 3.5% of the value of the transaction and will be paid through the issuance of 350,000 common shares at a deemed price of $1.10 per share.

The parties have agreed to begin promptly to negotiate a definitive agreement that incorporates the terms of the LOI.

Lions Gate will seek necessary shareholder approval to the transaction by written consent of shareholders holding a majority of the Company’s outstanding shares, following the completion and submission of a filing statement in accordance with applicable TSXV policies.

The closing of the transaction is expected to occur in February 2010, following submission of the filing statement and final acceptance from the TSXV of the transaction, or such other date as the parties may agree pursuant to the terms of the definitive agreement.

About Ausnico

Ausnico is an unlisted Australian company with nickel exploration tenements in South East Queensland, Australia. It is 79% owned by DGR which is listed on the Australian Securities Exchange (symbol: DGR). The merger of the two companies will create a listed base metals specialist with nickel, copper and molybdenum assets in British Columbia, Canada, and Queensland, Australia. Further details of Ausnico’s mineral tenements are contained in the Company’s news release dated September 3, 2009.

About Lions Gate Metals

Lions Gate is a Canadian based, junior resource company focused on the exploration, development, and acquisition of both advanced and early stage mineral projects. The Company owns 100% of three substantial copper and molybdenum projects located in British Columbia. The Company’s flagship project is the Poplar porphyry copper - molybdenum deposit near Houston, BC. The Huckleberry Mine, located approximately 35 kilometers southwest of the Poplar Deposit, produces copper and molybdenum from a deposit of similar age and setting.

Completion of the transaction is subject to a number of conditions, including TSXV acceptance and disinterested shareholder approval. The transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Filing Statement to be prepared in connection with the transaction, any information released or received with respect to the transaction, which TSXV is treating as a Reverse Takeover, may not be accurate or complete and should not be relied upon. Trading in the securities of Lions Gate should be considered highly speculative.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Lions Gate Metals Inc.

Ausnico Limited

For further information on the Company and its projects please visit our web site at
www.LionsGateMetals.com or contact us at:
Lions Gate Metals Inc.
Blair McIntyre, Director of Operations
(604) 683-7588

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 release.

Forward-Looking Statements
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Company’s periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company’s expectations, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future including in respect of the Company’s proposed $3 million financing, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

John Icke, Chief Executive Officer and Director of Resinco Capital Partners Inc. (formerly Longview Capital Partners), is a senior executive with more than 25 years global management experience. Resinco Capital Partners Inc. is the largest shareholder of the Company currently holding 2,827,937 common shares of the Company representing approximately 33.9% of the Company’s issued and outstanding shares. Mr. Icke was previously the president of Accenture Business Services for Utilities, the largest business process outsourcing practice of its kind worldwide. Mr. Icke has significant experience with private equity in addition to debt and public equity financings. Mr. Icke serves on the board of several public and private companies.

Mr. Reynolds has also resigned his position as Chief Executive Officer of LGM and the Board wishes to thank him for his service and contribution to the Company as a director and as CEO.

The Board has requested Mr. Arni Johannson to serve as interim Chief Executive Officer until the completion of the merger transaction with Ausnico Limited (described in the Company’s news release dated September 3, 2009), at which time the new Board of LGM will appoint a CEO. The Company reports that due diligence in respect of the Ausnico transaction is progressing and expects to provide a more detailed update on the transaction in the near future.

Lions Gate Metals Inc. is a Canadian based, junior resource company focused on the exploration, development, and acquisition of both advanced and early stage mineral projects. Lions Gate Metals owns 100 % of three substantial copper and molybdenum projects located in British Columbia. The management team understands the complex dynamics of the mining industry and has created a highly attractive corporate structure to maximize success.

On behalf of the
Board of Directors

“Arni Johannson”

Arni Johannson
Chairman of the Board

As a result of this transaction, Longview holds, an aggregate of 2,827,937 common shares of LGM representing 27 per cent of the issued and outstanding shares of LGM, and rights to acquire an additional 1,099,137 common shares of LGM upon exercise of certain convertible securities.

In the event that the convertible securities are fully exercised, the holdings of Longview would represent a total of 3,927,074 common shares of LGM, or approximately 33.9 per cent of all issued and outstanding common shares as at Nov. 25, 2009, calculated on a partially diluted basis assuming the exercise of the convertible securities only.

This transaction was made for investment purposes and Longview could increase or decrease its investments in LGM depending on market conditions or any other relevant factor.

About the Survey

The airborne geophysical survey (“Survey”) will be a time domain electromagnetic and magnetic survey covering 2,572 line kilometres on the Poplar Project. The Survey, which will take approximately 10 flying days to complete, has already begun. The Survey is dependent on weather, but is expected to be completed sometime in late November or early December of this year.

LGM has also completed a deep induced polarization program. The data collected is currently being analyzed and interpreted by Insight Geophysics Inc.

The purpose of these surveys is to look for undiscovered extensions of the Poplar Deposit. Using the Poplar as a model, LGM will search for similar deposits hidden under the glacial till. With the information obtained, LGM will determine targets for future drill programs as well as continuing to explore and develop the rest of the property.

About Aeroquest

Aeroquest is a mining and energy services company providing commercial airborne geophysical surveys for use in mineral and petroleum exploration. Aeroquest currently offers the proprietary HYPERLINK “http://www.aeroquestsurveys.com/english/aerotem.php” AeroTEM time-domain system in diameters ranging from 5 metres to 12 metres, the innovative HYPERLINK “http://www.aeroquestsurveys.com/english/impulse.php” Impulse frequency-domain HEM system, and HYPERLINK “http://www.aeroquestsurveys.com/english/gradiometer.php” HeliMag. Each of these systems can be flown with a radiometrics unit supplied by Aeroquest.

About Insight Geophysics Inc.

Insight Geophysics Inc. provided a time domain IP/ resistivity survey with a total of 13 line km of gradient array and 6 km of insight section array.

About Lions Gate Metals

LGM is a Canadian based, junior resource company focused on the exploration, development, and acquisition of both advanced and early stage mineral projects. LGM owns 100 % of three substantial copper and molybdenum projects located in British Columbia. LGM’s flagship project is the Poplar porphyry copper - molybdenum deposit. The Huckleberry Mine, located approximately 35 kilometres southwest of the Poplar Deposit, produces copper and molybdenum from a deposit of similar age and setting.

ON BEHALF OF THE BOARD OF DIRECTORS OF LIONS GATE METALS INC.

Damien Reynolds
CEO & Director

Lions Gate Metals Inc. is a Canadian based, junior resource company focused on the exploration, development, and acquisition of both advanced and early stage mineral projects. Lions Gate Metals owns 100 % of three substantial copper and molybdenum projects located in British Columbia. The management team understands the complex dynamics of the mining industry and has created a highly attractive corporate structure to maximize success.

On behalf of the Board of Directors
“Arni Johannson”
Arni Johannson
Co-Chairman of the Board