LIONS GATE METALS LETTER FROM THE CHIEF EXECUTIVE OFFICER

Vancouver, BC Canada, January 12, 2010 ? Lions Gate Metals Inc. (TSX-V: LGM) (?LGM? or the ?Company?) is pleased to provide a corporate update from the CEO, Arni Johannson.

Shareholders,

The last few months have been full of activity. LGM has made significant progress in a number of key business areas. In this letter, I will update you on our progress and plans moving forward.

The four foundations of our business strategy are:

1. Execute on well defined mergers and acquisitions strategy
2. Develop relationships with strategic capital and technical partners
3. Build and add value to our asset portfolio by acquisitions and/or sale
4. Advance the Poplar deposit by defining new targets and size potential

As announced in our press release dated December 18, 2009, Lions Gate Metals has entered into a binding letter of intent (?LOI?) with AusNiCo to undergo a business combination. The terms and conditions of the merger are outlined in that news release. This merger aligns well with our strategy to grow the company?s asset portfolio. AusNiCo holds significant land tenements in South Queensland, Australia. This region is well known for its extensive mineralization and mining history. The attraction for us in this transaction was the innovative modeling approach by AusNiCo?s technical team.  This proven management team has discovered what they believe to be a previously untapped nickel resource. Despite extensive exploration in the region, traditional geological models have left the occurrence of nickel sulphides relatively unnoticed.. With modern techniques, inventive thinking, and sound geological modeling, LGM is confident that the Ausnico tenements have the potential to become a new nickel province. 

Meetings continue with potential strategic Pacific Rim partners whose interests lie  in funding the continued development of the Poplar Project. A potential joint venture with them will allow us to drill the Poplar project and maintain our capital structure. The net result of a strategic joint venture would mean less dilution and stronger value for shareholders. LGM has received a number of proposals and the executive team is evaluating and looking to deliver a completed joint venture once the merger with AusNiCo has been completed.

Progress on the Poplar deposit continues with the completion of two considerable geophysical surveys late last year. A Deep IP Survey was completed on the Poplar main zone to further enhance our understanding of the size of the resource. Many of the historical drill holes from previous programs end in mineralization. This has led our technical team to hypothesize that the resource continues at depth; that the deposit may go much deeper than initially expected. The preliminary reports from the Deep IP Survey support this theory. While we don?t have the definitive data yet, initial imaging shows anomalies below the currently defined deposit. Thus, the targets for our 2010 field program will be deep holes in and around the main zone totaling a proposed 5200 metres of diamond drilling.

LGM also completed a sizable Airborne Geophysical Survey in December covering in excess of 2600 line kilometres. Preliminary imaging has indicated some very interesting magnetic and electro-magnetic signatures in multiple locations throughout Poplar. We expect to review the results in the coming days. This information will help us establish where further ground work needs to be done with the ultimate goal of defining new drill targets. There are in excess six regions of the property either partially or completely  unexplored. As the work was being completed, our technical team staked additional new claims around anomalies that caught their attention. The Poplar property has grown in size and has exciting new data regarding its mineralization.

As a shareholder and member of the management team of Lions Gate Metals, I see numerous reasons to be optimistic in 2010.  LGM is expanding its project portfolio and technical management team through the merger with AusNiCo. Ongoing negotiations with strategic partners continues to attract more attention from the financial community. The Deep IP survey on the Poplar main zone has helped us to define a drill program for 2010 while the airborne geophysical survey has directed us to multiple regions of the Poplar to develop; regions that have previously been unexplored. Recent accomplishments, pending agreements and the strong price of copper will continue to drive LGM?s market value.

Thank you for your continued support.

Sincerely,

?Arni Johannson?

Arni Johannson

CEO

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Information

This news release contains forward-looking information, including statements regarding the following:  geological interpretations and management's expectations in respect of the properties of AusNiCo as well as the Company's Poplar project; expectations in respect of the Ausnico merger; the timing and content of upcoming work programs; and the Company's plans to complete a joint venture with a strategic partner to fund further exploration on the Poplar project.

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Company?s periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in the exploration and development of mineral properties; the uncertainties involved in interpreting drill results and other exploration data including IP Surveys and Airborne Geophysical Surveys; the potential for delays in exploration or development activities; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with the Company?s expectations; accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations; fluctuating metal prices; the possibility of project cost overruns or unanticipated costs and expenses; uncertainties relating to the availability and costs of financing needed in the future including in respect of the Company's proposed $3.5 million financing as part of the AusNiCo merger; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; commodity price fluctuations; currency fluctuations; regulatory restrictions, including environmental regulatory restrictions and liability; competition and loss of key employees; and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

Technical Disclosure

Peter Ogryzlo, M. Sc., P. Geo., the Technical Advisor of LGM and a "qualified person" within the meaning of National Instrument 43-101, has reviewed and approved the scientific and technical disclosure contained in this news release.