Muaror & Co.

Lawyers b
Our ref: MAT2/8/mf/KFM
PRINCIPAL:
Your ref: Ibfa F. Muara
UQ L L U ODLPlQLD)

Consubnt:
Walter G. Rigmdo
UQGDLP(QW)

Monday 20 April 2009

Ms Christina D Swan
Vice President - Compliance
Red Lion Management Ltd
311 West 1 s t Street
NORTH VANCOWER, BC
V7M 1B5

Dear Ms Swan

LION ONE LIMITED -

SPECIAL PROSPECTING LICENCES
1283 AND 1296 :LEGAL OPINION

1.0 Introduction

1.I We are the Legal Advisers for Lion One Limited here in Fiji

2.0 Opinion Sought

2.1 You have sought a legal opinion from us on the question of whether Special
Prospecting Licences 1283 and 1296 are valid and in good standing.

3.0 Documentation

3.1 For the purposes of giving this opinion, we have:-

a) Duly examined the duplicate copy of Special Prospecting Licences 1283 and
1296 and in particular, the endorsements thereon in relation to the
ownership of the two licences and the respective terms of the licences; and

b) Noted the contents of a letter from the Director of Mines dated 16 April
2009 (see annexure 'A') addressed to Mr Brian Wesson, Director of Lion
One Limited, confirming the status of the two licences.
 MLJAROR& CO.
U\VYLK\

3.2 Based on our examination of the duplicate copy of Special Prospecting Licences
1283 and 1296 and the Director of Mines letter dated 16 April 2009, we note that :

a> Special Prospecting Licences 1283 and 1296 are issued in favour of Lion
One Limited and are valid until 31 March 2010; and

b) Special Prospecting Licences 1283 and 1296 have been issued in accordance
with the provisions of the Mining Act Cap. 146 and its subsidiary legislation
and the terms of each licence have been duly extended in accordance with
Regulation 27 of the Mining Regulations, subject to the special conditions
therein.

3.3 We draw your attention to the Additional Special Conditions (Seventeen Schedule)
on both Special Prospecting Licences 1283 and 1296 and the content of the letter
from the Director of Mines attached hereto.

4.0 Laws of Fiji

4.1 As of the date of this letter, the Constitution of the Republic of Fiji has been
purportedly abrogated. However, in our opinion, this does not have any impact on
the continuing validity of the Mining Act.

5.0 Opinion

4.1 Based on the above matters, we are of the opinion that, as of the date of this letter,
the Special Prospecting Licences 1283 and 1296 are valid and in good standing.

6.0 General

5.1 This opinion is strictly limited to the matters stated herein and the laws in force in
Fiji as at the date of this opinion.

Yours faithfully
MUAROR C 60.

1
Kafoal
\r
Principal
uaror

kmuaror@,muarorlaw.com

Encl.

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