Release: Lion Energy: Grand of put option by CITIC Seram to acquire 2.5% participating interest in Seram (Non-Bula) PSC

(November 23, 2006) - Lion Petroleum Seram Limited (LPSL), a wholly owned subsidiary of Lion Energy Limited, is a 2.5% shareholder (the ?LPSL Participating Interest?) in the Seram (Non Bula) Black Production Sharing Agreement (SNBB).

On 13th July 2006, CITIC Resources Holdings Ltd (CITIC), a company trading on the Hong Kong Exchange (Code 1205) disclosed the acquisition of a 51% participating interest in the SNBB for a consideration of US$97.4 million subject to adjustment, through subsidiary CITIC SERAM ENERGY LIMITED, a company incorporated in the British Virgin Islands, (?CITIC Seram?), from Kufpec (Indonesia) Limited (?KUFPEC?).

CITIC Seram has agreed to grant to LPSL a Put Option, pursuant to which LPSL has the right (but not the obligation) to sell to, and require CITIC Seram to acquire, the LPSL Participating interest from LPSL for a consideration of US$4,774,510, subject to adjustment.

Lion Energy Limited management has pursued the Put Option with CITIC because of the uncertainty associated with the future direction of exploration and development of the SNBB under the majority participating interest and operatorship of CITIC Seram when the assignment of operators hip and participating interest is completed between CITIC Seram and KUFPEC.

The Put Option allows LPSL time to consider CITIC Seram?s plans for the SNBB. (end of release)