Lions Gate Announces Closing of Private Placement

LIONS GATE ENERGY INC.

15th floor 675 West Hastings Street, Vancouver British Columbia, Canada V6B 1N2

Telephone: 604-669-6463 TSX Venture Exchange Facsimile: 604-669-3041 Trading Symbol: “LG” Toll Free: 1-800-663-9688

January 18, 2011

News Release 11-02

Lions Gate Announces Closing of Private Placement

Vancouver, BC – Lions Gate Energy Inc. (the “Company”) has issued a total of 476,190 flowthrough units at a price of $0.105 per unit for gross proceeds of $50,000 pursuant to the private placement announced on December 31, 2010. Each flow-through unit consists of one flowthrough common share and one common share purchase warrant exercisable into one common share at a price of $0.135 per share until December 31, 2012. All securities issued are subject to hold periods expiring May 1, 2011. The subscriber was a related party within the meanings of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions and TSX Venture Exchange Policy 5.9 and the private placement was completed in reliance upon available exemptions from the formal valuation and minority approval requirements with respect to the issuance of such units.

The proceeds from the private placement will be used to further the Company’s exploration plans and the Company has agreed that expenditures incurred with proceeds will constitute Canadian exploration expenses (“CEE”) as defined in the Income Tax Act (Canada) and will be renounced to the subscribers.

ON BEHALF OF THE BOARD OF DIRECTORS

“J. Frank Callaghan”

J. Frank Callaghan President and CEO 604-669-6463

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release