Lions Gate Metals Inc.
TSX VENTURE : LGM

Lions Gate Metals Inc.

November 12, 2008 09:15 ET

Lions Gate Metals Quarterly Letter From the President

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 12, 2008) - Lions Gate Metals Inc. (TSX VENTURE:LGM) ("LGM" or the "Company") is pleased to provide an update from President Mark Hewett.

Shareholders,

As part of our business strategy at Lions Gate Metals we committed to shareholders to provide ongoing communication in the form of a regular update. This update is being written from Beijing and will provide some highlights on the investment atmosphere here and our goals while on this side of the Pacific.

It is surprising how much has transpired since my last update in early July, both for Lions Gate Metals, as well as the capital markets. We believe that the extremely challenging months that the capital markets have endured creates an even greater opportunity for Lions Gate Metals going forward, which I will speak to later in this update.

Firstly, I would like to provide you with an update on our properties. Poplar continues to be the property with the most near-term potential. The recent appointment of Peter Ogryzlo to our Advisory Board is an important step as he will help us in defining our resource and increasing the tonnage. With Peter's experience with Imperial Metals' Huckleberry mine, we are extremely fortunate to have someone who not only appreciates the opportunity in Poplar, but has the experience to see it through to feasibility and beyond. We have committed to updating our NI43-101 based on the drill work that was completed in 2004/05 and are in the process of defining our program for next Spring.

We will also be updating our NI43-101 on the Hudson Bay Mountain. With Thompson Creek's postponement of their mine on their Hudson Bay property, there will very likely be interest in our property. There are fewer and fewer jobs in forestry in the surrounding areas, and mining projects will take the forefront in the coming years. The revenue sharing initiative with the First Nations also works very well into our socially responsible strategy of working closely with all interested parties to develop our properties in as socially and environmentally a method as is possible.

Now, I would like to discuss Asia. Our belief at Lions Gate Metals is that Asia and primarily, China and India, will continue to determine the direction of base metals and specifically copper over the next 10 - 15 years. What we are seeing over here at the moment is very similar to North America. Many investors are nervous about the markets and capital investment has been reduced. The difference here is that we believe this will be a very short term phenomena. The numbers being tossed around for growth in China's GDP continue to be extremely high at 8-9%. On a GDP per capita basis China's and India's numbers are very small when compared to that of the US. They are just at the early stage of their growth and the growth we will see will be massive. The Asian consumer is becoming a powerful force and that spending is certainly not going to decline. The Chinese government in particular is very focused on maintaining their growth level and just in the last few days announced a further $600 billion in infrastructure improvement. Part of this will be on the railway system. With each locomotive using approximately 11,000 pounds of copper this bodes extremely well for base metals, and that is just one area of spending.

The other aspect to this is not just their demand for base metals, but their desire to secure these base metals well ahead of time. One part of Lions Gate Metals future success is our desire to engage aggressively in merger and acquisition activity. Lions Gate is perfectly positioned to do so and this market has created phenomenal opportunities for us. In China right now, this is exactly what is being talked about by some of the Senior Chinese advisors at the conference in Beijing. With the amount of money being spent on exploration by the large mining companies decreasing significantly over the past few years, the balance has been picked up by the junior mining companies. The current market turmoil has meant that the junior mining companies are now cutting back all their expenditures. This means that new supply for base metals over the next several years is going to be severely impacted. The Chinese have seen this already and are talking about the opportunity to work with well managed junior companies and engage in aggressive accumulation of assets. Lions Gate Metals is perfectly positioned to work with these interests and as such we are in Beijing developing these relationships. Although the market is not expected to turn around in the short term, those companies who are looking out 18 - 24 months and engaging in the right business strategy are going to be extremely well positioned.

The recent decline of commodities will be a short-term story. This current recession that has caused the fear of declining construction and reduced use of copper is in fact going to increase the use of these metals. Governments in advanced and emerging economies will start borrowing at low interest rates for infrastructure projects including re-building railways, roads, bridges and airports in order to keep their populations employed. The commodities boom that was fuelled by double digit growth in China was also fueled by the long term lack of investment in mining development. That lack of investment is happening again and with it we will see base metal prices once again begin to rise - probably sooner then we think. Lions Gate Metals intends to capitalize on this and we are perfectly positioned to do so.

Sincerely,

Mark E. Hewett, President and Director

Lions Gate Metals Inc. is a Canadian based, junior resource company focused on the exploration, development, and acquisition of both advanced and early stage mineral projects throughout British Columbia.

For further information on the Company and its projects please visit our web site at www.Lionsgatemetals.com.

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