LionOre Mining International Ltd.

LionOre Mining International Ltd.

May 07, 2007 18:22 ET

LionOre Responds to Cdn$21.50 Per Share Cash Offer by Norilsk Nickel

TORONTO, ONTARIO--(CCNMatthews - May 7, 2007) - LionOre Mining International Ltd. (TSX:LIM)(ASX:LIM)(LSE:LOR)(BSE:LIONORE) ("LionOre") today responded to the offer by OJSC MMC Norilsk Nickel to acquire all of the issued and outstanding common shares of LionOre at a price of Cdn$21.50 in cash per common share.

LionOre's Board of Directors has reviewed the Norilsk Nickel offer in consultation with its financial and legal advisors and in the context of its obligations under its existing Support Agreement dated March 25, 2007 with Xstrata plc. The Support Agreement was entered into in connection with the offer by Xstrata to acquire all of the common shares of LionOre at a price of Cdn$18.50 in cash per common share.

The Board has determined that the Norilsk Nickel offer constitutes a "superior proposal" for purposes of the Support Agreement and has notified Xstrata of its determination. Pursuant to the Support Agreement, Xstrata may, on or prior to May 14, 2007, exercise its matching right and propose to increase the current Xstrata offer.

The Norilsk Nickel offer, which formally commenced today, is open for acceptance until June 18, 2007 and is subject to a number of conditions. LionOre will mail to its shareholders in due course a Directors' Circular containing its formal response in respect of the Norilsk Nickel offer.

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