Grant of Stock Options

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 5, 2011

News Release 11-01

Grant of Stock Options

Vancouver, BC – Lions Gate Energy Inc. (the “Company”) announces that, pursuant to its Incentive Stock Option Plan (the “Plan”), it has granted incentive stock options to directors, officers, employees and consultants of the Company to purchase up to an aggregate of 2,718,856 common shares in the capital stock of the Company. The options are exercisable at a price of $0.135 per share for a period of five years from the date of grant and are subject to such vesting periods as imposed by the board of directors pursuant to the Plan.

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