The Lion One Metals management team has begun a monthly briefing series to explain how the company intends to move from start-up to a more stable, scalable underground gold operation at Tuvatu in Fiji. In an opening message, CEO Campbell Olsen framed 2026 as Phase 2—a period focused on converting production capability into a durable business with predictable performance, improved recoveries and a clear plan for growth rather than short-term fixes.
February’s results illustrated both progress and the normal teething issues of early underground mining. The site maintained a strong safety record, made capital progress on key projects and delivered meaningful exploration results, while facing grade variability and development meterage shortfalls that management is addressing through targeted operational changes.
Table of Contents:
Leadership, strategy and governance
Phase 2 is positioned as a multi-year effort to stabilise operations and create long-term shareholder value. The CEO emphasised transparent communication and disciplined capital allocation toward items that unlock value: mine development, reliability, and growth drilling. The board has been refreshed, with the addition of David Anderson earlier this year and the appointment of Campbell Olsen as CEO, actions intended to align board expertise with operational needs and shareholder interests.
Board composition and accountability
Management confirmed ongoing evaluation of board composition to ensure the right mix of skills as the business evolves. The company stressed it will not be distracted from safe operations and delivering commitments while considering governance changes, keeping a focus on operational execution at the Tuvatu gold mine.
Operational performance in February
Production for the month reached 813 ounces of gold poured, recorded as a net 804 ounces after refinery adjustments, and the year-to-date total stands at 9,180 ounces. The processing plant milled 10,267 tonnes of ore at an average grade of 3.49 g/t with an average gold recovery of 77.3%. Management noted that the head grade was below recent averages and that this, combined with underground variability, impacted total output for the period.
Safety and site resilience
Safety remains the primary operational metric: the site reported no lost time injuries in February, added a full-time nurse and refurbished the nursing station, and completed reviews and corrective actions for all incidents. These measures reflect a commitment that every ounce produced must be achieved without compromising workforce wellbeing.
Development, drilling and major projects
Underground development lagged planned targets in February with 120 metres completed versus a 188-metre goal. Root causes included equipment availability and compressed air constraints; corrective steps are underway, including commissioning new underground equipment, upgrading ventilation and tightening maintenance planning to boost reliability and achieve development meterage targets.
Exploration continued with four rigs drilling a total of 2,369 metres. A highlight intercept measured 5.15 metres at 9.18 g/t, well above the project economic cutoff of 3.5 g/t, supporting confidence in the resource base and potential to extend mine life. These drill results feed the company’s strategy to add optionality through targeted growth drilling.
On the project side, commissioning of the flotation plant is substantially complete and delivered approximately A$400,000 under budget, with stable performance already observed and an expectation of materially improved recoveries. The TSF (tailings storage facility) Stage 2A construction was completed in December 2026 and engineering for Stage 2B was approved in February, ensuring planned capacity for ongoing operations.
Financial discipline remains central: working capital is actively managed and the improved recovery profile from the flotation circuit, together with anticipated higher grades, is expected to enhance near-term cash generation. Capital will be prioritised on development, reliability upgrades and growth drilling that directly support value creation.
Quality assurance and technical oversight
The company operates its own geochemical laboratory and a fleet of diamond rigs, applying rigorous QAQC procedures. Core is prepared to 85% passing 75 microns and gold assays use fire assay with an AA finish; samples exceeding 10.00 g/t are re-assayed by gravimetric methods. A 5% subset of samples above 0.5 g/t is sent to ALS Global for check assays (methods Au-AA26 and Au-GRA22), and ALS performs a broader pathfinder element suite using ME-ICP61. The company’s lab can analyse up to 71 elements via ICP-OES but currently focuses on a 26-element pathfinder suite with aqua regia digest.
All technical disclosures in the update were reviewed by the Qualified Person, Mark Horan, P.Eng., who assumes responsibility for the scientific content consistent with NI 43-101 standards.
Looking ahead, priorities for Q2 2026 include accelerating mine development and access, achieving full development meterage, optimising plant recoveries through the flotation circuit and grade control, completing a high-voltage power study and reliability upgrades, and finalising long-term water and tailings management solutions. Management reiterated its methodical approach: shore up the mine foundation, stabilise production and deliver sustainable value.
Readers are reminded that forward-looking statements in the update are subject to risks and uncertainties that could cause actual outcomes to differ materially from expectations. The company reiterated its commitment to safe, compliant operations and regular updates as it advances the next phase of growth at Tuvatu.
