Lions Gate Metals Inc.
TSX VENTURE : LGM

Lions Gate Metals Inc.

January 12, 2011 06:00 ET

Lions Gate Metals Completes ROK-Coyote Joint Venture

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 12, 2011) - Lions Gate Metals Inc. (TSX VENTURE:LGM) ("Lions Gate" or the "Company") is pleased to announce it has finalized the ROK-Coyote Option Agreement ("The Agreement") with Firesteel Resources Inc. ("Firesteel"). The ROK-Coyote property is adjacent to Imperial Metals's Red Chris copper-gold deposit.

Lions Gate Metals Inc. ("Lions Gate") has been granted an exclusive option to acquire seventy-five percent (75%) interest in the ROK-Coyote mineral property comprised of the claims located in the Stikine Arch region of northwestern B.C. about 8 kilometres southeast of the Iskut Village on Highway 37 and 12 kilometres west of the BC Rail extension road bed.

The Agreement provides for the following payments:

Date   Cash to
Firesteel
(Cdn$)
  Lions Gate
Shares
  Work
Commitment
(Cdn$)
On Execution of the LOI dated January 21, 2010   $50,000
PAID
  0   0
On later of execution of Formal Agreement or receipt of TSX-V approval (Effective Date)   $121,000
PAID
  50,000    
Year 1 Anniversary of Effective Date   $50,000   50,000   $350,000
Year 2 Anniversary of Effective Date   $75,000   100,000   $450,000
Year 3 Anniversary of Effective Date   $100,000   200,000   $700,000
Year 4 Anniversary of Effective Date   $100,000   250,000   $1,000,000
Total   $496,000   650,000   $2,500,000

The cash payments of $50,000 and $121,000 have been paid and shall be credited towards Lions Gate's first year work commitments on the Property.

Firesteel may back in for a 5% interest in the Property by paying Lions Gate $200,000, which if exercised would result in the ownership being 70% Lions Gate and 30% Firesteel.

The Property is adjacent to and immediately northwest of the Imperial Metals Corporation's Red Chris copper–gold deposit (with measured and indicated resources of 489.1 million tonnes at 0.43% Cu and 0.42 g/t Au, at 0.20% Cu % Cutoff (as reported on page 89 of Imperial Metals' Technical Report: 2010 Exploration, Drilling and Mineral Resource Update dated May 19, 2010). In a news release dated August 5, 2010 Imperial Metals also reported the Red Chris Drill hole RC09-393 returned 317.5 metres grading 1.08% copper and 1.46 g/t gold within a 1,112.5 metre mineralized section grading 0.54% copper, 0.61 g/t gold. 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 from 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.

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. Lions Gate owns 100% of four substantial copper and molybdenum projects located in British Columbia. Lions Gate'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. 

Technical Information contained in this news release has been reviewed and approved by Andrew Gourlay, P. Geol., Vice President of Exploration who is a Qualified Person as defined in NI 43-101.

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 www.LionsGateMetals.com.

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