TORONTO, ONTARIO -- (MARKET WIRE) -- 06/07/07 -- LionOre Mining International Ltd. (TSX: LIM)(LSE: LOR)(BSE: LIONORE) ("LionOre") today announced that it will immediately terminate the Support Agreement that it had previously entered into with Xstrata plc in respect of the offer by Xstrata to acquire all of the common shares of LionOre at a price of Cdn$18.50, subsequently increased to Cdn$25.00, in cash per common share. LionOre is terminating the Xstrata Support Agreement in light of the superior proposal from Norilsk Nickel of Cdn$27.50 in cash per common share and the election of Xstrata not to match this increased offer.

In connection with the termination of the Xstrata Support Agreement, LionOre will pay to Xstrata today the termination payment of Cdn$305.0 million as required by the terms of that agreement. As a result of the termination of the Xstrata Support Agreement and the payment of the required termination payment, those shareholders of LionOre who had previously tendered their shares pursuant to a lock-up agreement with Xstrata will be free to withdraw their shares.

LionOre's Board of Directors previously announced, following a review of the increased offer by Norilsk Nickel in consultation with its financial and legal advisors, that it has determined that the increased Norilsk Nickel offer constitutes a superior proposal in comparison to the current offer from Xstrata. The LionOre Board will unanimously recommend that shareholders accept the offer from Norilsk Nickel and deposit their shares into the offer.

The Xstrata offer expires on June 15, 2007 unless extended. The superior offer from Norilsk Nickel is open for acceptance until June 18, 2007. LionOre will mail to its shareholders a notice of change updating its previous Directors' Circulars issued in respect of the Xstrata and Norilsk Nickel offers.

Forward-Looking Statements

Certain statements contained herein are forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant uncertainties and contingencies. Many known and unknown factors could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements. Such factors include, but are not limited to: exploration, development and operating risks, uninsurable risks, ore reserve and resource estimates, additional funding requirements, dependence on smelting facilities, foreign countries and regulatory requirements, and environmental regulation and liability. For further information concerning certain such factors, see the Company's most recent annual information form filed with Canadian securities regulatory authorities on SEDAR at www.sedar.com.

The Company disclaims any intent or obligation to update any forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and, accordingly, not to put undue reliance on such statements.

Contacts:
BuckBias
Alex Buck
+44 (0) 7932 740 452
Email: alex@buckbias.com
Website: www.lionore.com