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Message: Lion Energy receives NI 43-101 Technical Rprt on the 'El Sol' iron ore property

Lion Energy receives NI 43-101 Technical Rprt on the 'El Sol' iron ore property

posted on Jan 24, 2010 08:46PM

Lion Energy receives a NI 43-101 Technical Report on the 'El Sol' iron ore property

	    TSX.V - LEO

	    VANCOUVER, Jan. 22 /CNW/ - Lion Energy Corp. (the "Company" or "Lion
Energy") (TSX.V - LEO) announces that it has received an updated National
Instrument 43-101 ("NI 43-101") Technical Report on its 100% owned El Sol iron
ore property located near Red Lake, Ontario. The NI 43-101 report was prepared
by Toronto-based geological and engineering consulting firm Watts, Griffis and
McOuat Limited in connection with the Company's 2008 drill program.
	    In December 2008, the Company conducted a Phase 1 program of property
wide ground magnetic surveying, followed by helicopter supported diamond
drilling of 2,301 metres in 11 widely spaced holes along the A Zone. Steeply
dipping magnetite iron formation was encountered in each hole, over broad
thicknesses ranging from 50 to 133 metres. The best intercept, drill hole
DE08-008, returned 31.04 % TFe ("Total Iron") and 29.39 % FeMt (" Magnetic
Iron") over a length of 131.85 metres. This represents an approximate true
width of 68.30 metres. The results of this program successfully confirmed both
the extent and range of thickness of iron mineralization which was encountered
during historical drilling of this section of the A Zone horizon.
	    In 1956-1957, El Sol Mines Ltd. conducted extensive diamond drilling of
10,363 m in 67 holes on both the A and B Zones, as well as initial
metallurgical testing. This work outlined a historical "reserve" estimate of
approximately 312 million tons with an average grade of 31.1% iron for the A
and B zones (H. Brodie Hicks, 1958).1
	    The reference to "reserve" estimate in this press release is historical
in nature and does not represent any current economic viability. The estimate
was made prior to implementation of NI 43-101. There is incomplete and limited
data from the historical work that is available and a qualified person, as
that term is defined under NI 43-101, has not done sufficient work to classify
the historical "reserve" estimate as current mineral resources. The Company is
not treating the historical estimate as current mineral resources and the
historical estimate should not be relied upon. The Company therefore refers to
the historical "reserve" as a historical non-NI 43-101 compliant mineral
resource which cannot be relied upon. The Company refers to the estimate as it
believes the historical results provide an important indication of the
potential of the El Sol property and are relevant to ongoing exploration
through planned verification drilling programs.
	    The El Sol iron ore property is located in the Red Lake Mining District
of Northern Ontario. The property is situated approximately 75 km northeast of
Ear Falls, Ontario and is accessible by good quality roads to within a few
kilometers of the iron zones. Two hydroelectric power generating stations are
located approximately 40 km from the site. There also exists easy rail access
to global markets via Thunder Bay or Sault Sainte Marie. The Company is
currently looking at a number of different scenarios to advance the project in
the near future.

	    Consulting geologist, J. Fingler, P.Geo., supervised the Phase 1 drilling
program on the El Sol property and is the Qualified Person as defined in NI
43-101, who has reviewed and verified the technical disclosure contained in
this press release.

	    About the Company:

	    The Company is a well-financed, Canadian exploration company with a
vision to develop a significant presence in the developing oil and gas
industry. The Company signed an agreement with Africa Oil Corp. that grants
the Company the right to earn an interest in five petroleum blocks located in
the Republic of Kenya and in Puntland, Somalia. The Company further holds
14.76% interest in Encanto Potash Corp., a junior potash exploration company
and a 20% interest in Sulphur Solutions Inc., an emerging fertilizer company
developing state-of-the-art patented technology for the production of
micronized sulphur fertilizer.

	    On behalf of the Board,

	    "Brian Thurston", President and CEO


	    This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical facts, that address exploration drilling, exploration
activities and events or developments that the Company expects to occur, are
forward-looking statements. Forward-looking statements in this news release
include statements regarding the Company's intentions or plans, whether of a
corporate or exploratory nature, as well as plans for advancement of the El
Sol project. Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results or
developments may differ materially from those forward-looking statements.
Factors that could cause actual results to differ materially from those in
forward-looking statements include market prices, exploration and exploration
successes, and continued availability of capital and financing and general
economic, political, market or business conditions. These statements are based
on a number of assumptions, including, among others, assumptions regarding
general business and economic conditions, the timing and receipt of regulatory
and governmental approvals for the transactions described herein, the ability
of the Company and other parties to satisfy stock exchange and other
regulatory requirements in a timely manner, the availability of financing for
the Company's proposed transactions and programs on reasonable terms, and the
ability of third-party service providers to deliver services in a timely
manner. Investors are cautioned that any such statements are not guarantees of
future performance and actual results or developments may differ materially
from those projected on the forward-looking statements. The Company does not
assume any obligation to update or revise its forward-looking statements,
whether as a result of new information, future events or otherwise, except as
required by applicable law or regulatory policies.

	    /For further information: To find out more about the Company, please
visit our website at www.lionenergycorp.com/
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