Lion One Announces Forbearance Agreement with Senior Lender Including Extension of Repayment Date

Lion One Metals Limited (TSXV: LIO,OTC:LOMLF) (OTCQX: LOMLF) ("Lion One" or the "Company") is pleased to announce that it has entered into a forbearance agreement (the "Forbearance Agreement") with its senior secured lenders Nebari Gold Fund 1, LP, Nebari Natural Resources Credit Fund I, LP and Nebari Natural Resources Credit Fund II, LP (each as Lender and collectively, "Nebari") pursuant to which Nebari has agreed to extend the final repayment date for Tranche 1 of the Company's loan facility to December 31, 2026. The Company also announces that it has cured the financial and non-financial default events that occurred under the terms of the loan facility. Forbearance requires the Company to remain in compliance with its obligations under the loan facility going forward.

In January 2023, the Company entered into a senior secured loan facility agreement (the "Facility") with Nebari consisting of three separate Tranches, all three of which have been drawn. The principal amount outstanding on Tranche 1 is approximately US$25.8 million including capitalized interest, while the principal amount outstanding on Tranche 2 is approximately US$5.4 million. Tranche 3 has been fully repaid. The total amount of principal outstanding on the loan facility is approximately US$31.2 million.

Interest on Tranche 1 of the Facility was set at 8% plus three-month secured overnight financing rate ("SOFR"), as administered by the Federal Reserve Bank of New York, and amortization is on the Maturity Date 42 months from the original closing date, and no closing fees were payable. Interest on Tranche 2 was subject to an 8% original issue discount with interest set at 10% plus SOFR, progressive amortization over 42 months from the Tranche 2 funding date (December 29, 2023) and closing fees equal to 2% of the amount funded.

On January 31, 2026, the Company received a notice from Nebari stating that an event of default had arisen from non-financial covenants and therefore the margin component of the interest rate payable under the Facility was increased in accordance with the terms of the Facility, effective February 20, 2026. A second subsequent financial default event occurred on March 31, 2026 as the Company was in breach of the $7,000,000 working capital covenant. The interest on the loan facility would remain at the default rate until the events of default had been remedied or otherwise resolved to Nebari's satisfaction. Both the financial and non-financial events of default have been cured, and the interest rate has returned to the original level stated above. A portion of the net proceeds from the recent $17.5 million non-brokered private placement offering of convertible debenture units and equity units of the Company were used to satisfy payment obligations under the Facility and to cure the working capital covenant default under the Facility.

As consideration for the extension of the repayment date for Tranche 1 of the Facility, the Company has agreed to pay a restructuring fee to Nebari of US$2,000,000, which may be reduced to US$1,000,000 if the Company fully repays and satisfies all obligations owing under the Facility on or before September 30, 2026.

As part of the Company's strategic planning in connection with its capital structure and the Forbearance Agreement, it has launched a re-financing strategy targeting various financing initiatives to repay the Facility. This may be comprised of a new refinanced senior debt facility or a combination of financing initiatives, including debt facilities, equity offerings and deployment of cash from operations to fund debt reduction. The Company plans to target completion of this strategy by the end of 2026.

About Lion One Metals Limited

Lion One Metals is an emerging Canadian gold producer headquartered in North Vancouver BC, with new operations established in late 2023 at its 100% owned Tuvatu Alkaline Gold Project in Fiji. The Tuvatu project comprises the high-grade Tuvatu Alkaline Gold Deposit, the Underground Gold Mine, the Pilot Plant, and the Assay Lab. The Company also has an extensive exploration license covering the entire Navilawa Caldera, which is host to multiple mineralized zones and highly prospective exploration targets.

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This press release may contain statements that may be deemed to be "forward-looking statements" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking information. Generally, forward-looking information may be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "proposed", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. This forward-looking information reflects Lion One Metals Limited's current beliefs and is based on information currently available to Lion One Metals Limited and on assumptions Lion One Metals Limited believes are reasonable. These assumptions include, but are not limited to, the actual results of exploration projects being equivalent to or better than estimated results in technical reports, assessment reports, and other geological reports or prior exploration results. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance, or achievements of Lion One Metals Limited or its subsidiaries to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: the stage development of Lion One Metals Limited, general business, economic, competitive, political and social uncertainties; the actual results of current research and development or operational activities; competition; uncertainty as to patent applications and intellectual property rights; product liability and lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting mining, timing and availability of external financing on acceptable terms; not realizing on the potential benefits of technology; conclusions of economic evaluations; and lack of qualified, skilled labor or loss of key individuals. Although Lion One Metals Limited has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Accordingly, readers should not place undue reliance on forward-looking information. Lion One Metals Limited does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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