ROK-Coyote Project

The ROK-Coyote Property is situated in the Stikine Arch region of northwestern BC about 8 km southeast of the Iskut Village on Highway 37 and 12 km west of the BC Rail extension road bed. It abuts the Imperial Metals' Red Chris copper--gold deposit (which has reported, measured and indicated resources of 446.1 million tonnes at 0.36% Cu and 0.29 g/t Au, plus inferred resources at 268.7 million tonnes grading 0.30% Cu and 0.27 g/t Au). 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. Higher elevations on the property are best accessed by helicopter.

The Property comprises 19 contiguous claims covering 6,900 HA. Firesteel Resources Inc. has granted to Lions Gate the exclusive option to acquire a 75% interest in the property over a four year period. Lions Gate may exercise the option by paying an aggregate of $496,000 in cash, issuing an aggregate of 650,000 shares and incurring an aggregate of $2,329,000 in exploration expenditures on the property over the four year term. Firesteel retains a right at any time to acquire a 5% interest in the property following the exercise of the option, thereby reducing Lions Gate's interest to 70% by paying $200,000 in cash subject to certain terms and conditions as set forth in the option agreement.

Lions Gate believes that this Property is one of the most prospective copper-gold alkalic porphyry targets in BC and warrants a significant exploration program to test its potential.

The property covers 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 from 1929, when copper was discovered at the Klappan Rose showing. Since the 1970's, when Texasgulf discovered the Red Chris deposit, exploration has been limited to prospecting, geological mapping and some localized geophysical surveys. Significant exploration work occurred between 1987 and 1991 when geological mapping, soil geochemical sampling, ground magnetic, VLF-EM and IP geophysical surveys followed by trenching (18 trenches; 1184 meters) and diamond drilling (18 holes; 1792 meters) were carried out over a portion of the sulphide system. Some highlights of this work include:

Much of the large IP anomaly upon which this work was completed remains open and untested. Since 1991, exploration work has been limited to an airborne magnetic/radiometric survey which identified a large, Th/K low suggesting possible potassic alteration over an area 1-3 kms to the SW.

The property remains largely unexplored, untested and highly prospective for hosting copper-gold resources amenable to open pit and bulk underground mining techniques. The target is high-grade copper-gold mineralization extending to depth, as on the adjacent Red Chris.

Lions Gate is highly encouraged by the historic exploration and is planning a 2011 exploration program consisting of extending the geophysical grid to the West to cover the entire Th/K anomaly, and completing additional IP surveys over the entire grid. A provision for drilling 1500 meters of drill holes has been made to follow up results of this program.