Lion Energy operations update and crude oil lifting

Lion Energy Limited, through its wholly owned subsidiary Lion International Investment Limited (? LII ?), holds a 2.5% shareholding in the Seram (Non Bula) Block Renewal Production Sharing Contract in Indonesia . The majority shareholder and Operator of the Joint Venture is CITIC Seram Energy Limited (51% interest). Other partners include KUFPEC ( Indonesia ) Limited (30%) and Gulf Petroleum Investment (16.5%).

The block contains the Oseil oilfield which has since initial field start-up in December 2002, produced cumulative crude oil production of 9,584,501 barrels as of 31 March 2011 and 4.927 BCE of natural gas. Most of the natural gas is utilized to generate electricity on site for the operations.

The next crude oil lifting from the Oseil oilfield is tentatively scheduled for early June 2011 and expected to be approximately 350,000 barrels. Funds from the sale will be due 30 days after the lifting.

Based on current Mean of Platts Singapore HSFO 180 cst prices, sales revenue net to LII is anticipated to be approximately US$870,000.

Final actual sales revenue will vary according to the actual 30 days average price before the date of lifting.(romel)