LionOre Determines Increased Norilsk Nickel Offer of Cdn$27.50 in Cash Per Share to be a Superior Proposal

Market Wire, May, 2007

LionOre Mining International Ltd. (TSX: LIM)(LSE: LOR)(BSE: LIONORE)(ASX: LIM) ("LionOre") today responded to the increased offer by OJSC MMC Norilsk Nickel to acquire all of the issued and outstanding common shares of LionOre at a price of Cdn$27.50 in cash per common share.

LionOre's Board of Directors has reviewed the increased Norilsk Nickel offer in consultation with its financial and legal advisors and in the context of its obligations under its existing Support Agreement with Xstrata plc dated March 25, 2007, as amended. The Support Agreement was entered into in connection with the original offer by Xstrata to acquire all of the common shares of LionOre at a price of Cdn$18.50 in cash per common share which was subsequently increased to Cdn$25.00 in cash per common share.

The Board has determined that the increased Norilsk Nickel offer constitutes a "superior proposal" for purposes of the Support Agreement and has notified Xstrata of its determination. Pursuant to the Support Agreement, Xstrata is now entitled, on or prior to June 1, 2007, to exercise its matching right and further increase the current Xstrata offer.

The current Xstrata offer expires on May 25, 2007, unless extended. The increased Norilsk Nickel offer is open for acceptance until June 18, 2007. LionOre will mail to its shareholders in due course a notice of change updating its previous Directors' Circulars issued in respect of the Xstrata and Norilsk Nickel offers.

Contacts: LionOre Mining International Ltd. Alex Buck 44 (0) 7932 740 452 Email: alex@buckbias.com Website: www.lionore.com