Lions Gate Metals Inc.

Lions Gate Metals Inc.

April 22, 2010 20:06 ET

Lions Gate Metals and AusNiCo Agree to Terminate Business Combination

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 22, 2010) - Lions Gate Metals Inc. (TSX VENTURE:LGM) ("Lions Gate" or the "LGM") announces that, despite the best efforts of LGM and AusNiCo, the conditions precedent to the merger between the two companies have not been satisfied and the parties have agreed to terminate their agreement. Both companies will pursue alternative funding sources for their respective projects. 

"There are several factors that have led us to the decision to terminate the transaction," said LGM CEO, Arni Johannson. "Some key issues were the lengthy due diligence and regulatory delays, a blockade at our proposed drill program site and market volatility. That said, we still own 100% of a significant Copper asset and are working diligently to resolve issues in the Poplar region. Our future holds significant promise."

Moving forward, management of Lions Gate is arranging financing to fund the proposed 5200m drill program at the Poplar Project. Extensive geophysical surveys were completed last year to define drill targets and to expose additional anomalies for further exploration. Lions Gate will continue to work with local interest groups in the region to ensure successful exploration and development programs throughout the summer and into the fall. Lions Gate is dedicated to socially and environmentally responsible exploration and development programs that will improve the Poplar Project and provide value to our shareholders, local communities, and First Nations.

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. 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 near Houston, BC. The Huckleberry Mine, located approximately 35 kilometres southwest of the Poplar Deposit, produces copper and molybdenum from a deposit of similar age and setting. 

Sincerely on behalf of the Board of Directors,

Arni Johannson, CEO and Chairman of the Board

Lions Gate Metals Inc.

For further information on the Company and its projects please visit our web site at

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.

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