LionOre Mining International Ltd.
TSX : LIM
ASX : LIM
LSE : LOR
BOTSWANA : LIONORE

LionOre Mining International Ltd.

December 07, 2006 08:00 ET

LionOre Issues Production Guidance for 2007

TORONTO, ONTARIO--(CCNMatthews - Dec. 7, 2006) - LionOre Mining International Ltd. ("LionOre"), (TSX:LIM)(ASX:LIM)(LSE:LOR)(BSE:LIONORE) today issues production guidance for 2007. All costs are in U.S. dollars.



2007 Production Forecast

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Production 1st Half 2nd Half Full Half
Summary
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Tonnes Tonnes Tonnes
payable payable payable
nickel nickel nickel
produced Cost produced Cost produced Cost
100%(1) Attrib. /lb(i) 100%(1) Attrib. /lb(i) 100%(1) Attrib. /lb(i)
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Lake
John-
ston 6,780 6,780 $4.08 6,720 6,720 $3.74 13,500 13,500 $3.91

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Black
Swan 6,509 5,207 $4.89 4,991 3,993 $5.00 11,500 9,200 $4.94

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Tati 6,965 5,920 $2.63 7,735 6,575 $2.46 14,700 12,495 $2.54

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Nkomati 967 967 $(0.33) 1,233 1,233 $0.77 2,200 2,200 $0.29

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Waterloo 823 823 $3.88 1,577 1,577 $3.18 2,400 2,400 $3.42
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Total 22,044 19,697 $3.66 22,256 20,098 $3.37 44,300 39,795 $3.52
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(1) 100% of production except for the Nkomati mine which is shown at 50%
(LionOre's share of the Nkomati mine). Nkomati production is included
from June 1, 2005.

(i) Nickel price assumption of $7.35/lb used for 2007


Colin Steyn, President and CEO of LionOre, commented, "LionOre enters 2007 with solid production building blocks established during 2006. All our brownfield expansion projects have now been completed & commissioned and we will see the production benefits in 2007, with an estimated 30% increase in the group's production to a total of 44,300 tonnes of payable nickel.

Our operational focus will continue to be on reducing costs, as well as on brownfield exploration with a view to increasing the Life of Mine and resources at all of our operations; particularly in Australia. In addition to the recently announced senior management appointments, I believe LionOre is in a strong position to meet the targets in respect of operations and project execution in Australia and Africa.

At a corporate level, our objective of vertical integration remains key to the long-term sustainability and profitability of the group. Whilst we will explore different avenues of corporate growth opportunities to deliver vertical integration, we will also continue to seek additional opportunities to benefit from our Activox® technology. This may be to acquire additional nickel assets or seek to joint venture deposits amenable to Activox® processing."

Forward-Looking Statements

Certain statements contained herein are forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant uncertainties and contingencies. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such factors include, but are not limited to: exploration, development and operating risks, uninsurable risks, ore reserve and resource estimates, additional funding requirements, dependence on smelting facilities, foreign countries and regulatory requirements, and environmental regulation and liability. For further information concerning certain such factors, see the Company's most recent annual information form filed with Canadian securities regulatory authorities on SEDAR at www.sedar.com. The Company disclaims any intent or obligation to update any forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, not to put undue reliance on such statements.

Teleconference and Webcast Details:

LionOre will host a teleconference / webcast on Thursday December 7, 2006 at 9:00 am EST. The webcast can be accessed at www.lionore.com and will be archived on the site for 90 days. The replay will be available for 2 weeks at 617-801-6888 or 1-888-286-8010, passcode: 48338298.

Contact Information

  • LionOre Mining - UK / Europe
    Colin Steyn
    President & CEO
    +44 (0)20 7590 8888
    or
    LionOre Mining - Africa
    Peter Breese
    Chief Operating Officer
    +27 (0)11 463 4223
    or
    LionOre Mining - Canada
    Ted Mayers
    Chief Financial Officer
    +1 416 777 1670
    or
    LionOre Australia - Australia
    Bryan Hyde
    Chairman
    +61 (0)8 9426 0100
    Website: www.lionore.com