Benefits of investing in LSX

Lion Selection Group provides a listed, expertly managed exposure to the high-risk/high-reward junior mining sector, where a long-term view and portfolio approach are vital:

• A specialist investor - ASX listed investment company focused on junior mining and exploration companies.

• A Board of Directors with extensive mining industry, company administration, finance and mining investment experience.

• Lion captures the structural and portfolio benefits of being a listed investment company combined with the proven and successful investment process and track record of Lion Manager Pty Limited.

• Directors and Lion Manager are aligned with shareholders through ownership.

• The investment philosophy of Lion supports investments through the project assessment and development phase, generally exiting after project completion and a meaningful value re-rating.

• With a track record spanning more than 15 years and comprehensive experience in mining and finance, Lion Selection Group has become a focal point for mining investment opportunities - across all global exchanges and many unlisted companies.

About the Fund

Lion Selection Group was founded in 1997 to invest in the broad but poorly understood sub-sector of mining - junior resources companies. The name Lion Selection Group Limited was chosen as a name to reflect the culture and philosophy of the organisation:

• Lion - watchful, aggressive and searching.
• Selection - carefully picking opportunities and people and backing them.

Inspiration was taken partly from a highly successful mining development company named Selection Trust Ltd, which was formed in London by Chester Beatty at the start of the 20th century when technology assisted mining to grow on a global scale for the first time. The breakdown of geographical barriers and the easing of political structures in the late 20th century followed by the emergence of the Chinese economy in the early 21st century has provided a similar opportunity.

Lion Selection Group invests on similar principles as Chester Beatty's Selection Trust, setting a high standard for project selection from the universe of global opportunities, combined with highly skilled, experienced and motivated people.

Over a history spanning more than 15 years, Lion Selection Group has produced substantial returns to shareholders, totalling more than $3.20/share (on top of the value of a Lion share).

Investment Philosophy

• To provide funding at an early stage to assist companies along the development curve, and then exit following considerations of value after project development and the timing of the investment cycle.

• Investments are carefully selected from a global universe of listed and unlisted opportunities.

• Backing high-quality people is an essential element.

• Project assessment is a blend of valuation and risk assessment, targeting multiples of upside in situations with predominantly manageable risks.

• In-house mining experience and networks provide leverage to rapidly assess people and projects.

• Achieving diversity and reducing stock specific risk by taking a portfolio approach.

• Regularly interacting with investee company management to maintain a current understanding.

• Long-term investment approach: 3-5 year investment horizon to capture the uplift in value as companies progress projects to production.

• Life cycle of a resources company: exploration to production.

How we invest your money

Lion Selection Group invests in junior mining and exploration companies.

Investment mandate:

• High-quality people are essential.

• Any mineral commodity, not oil and gas.

• Pre-production. Project expansion by exception.

• Equity only: generally seek 5-20% shareholding.

• Lion can contemplate unlisted investments and companies listed on any exchange. Lion provides seed, pre-IPO and ongoing funding.

• Investment targets must subscribe to practices consistent with or parallel to the World Bank's sustainability policies for exploration and mining.