Taipan/Lion Merger Closes

The merger between Taipan Resources Inc. and Lion Petroleum Corp. has been completed. Under the terms of the merger Taipan has issued a total of 20,124,817 common shares to the shareholders of Lion in exchange for all of the issued and outstanding share capital of Lion Petroleum Corp.

Taipan has also completed a non-brokered private placement, raising $11,500,000 by the issuance of 23,000,000 units at $0.50 per unit. Each unit consists of one common share and one warrant exercisable into an additional common share at a price of $0.60 for a period of five years.

In relation to Lion’s Kenyan acreage, Block 2B, Taipan said that it has chosen to maintain a 100% interest and operatorship of the block, and that it will not be proceeding with the proposed farm-in by NewAge Ltd. While the company chose not to farm-down its stake at this time, it will consider the option at a later date when the results will be more favorable for Taipan shareholders.

In addition to Block 2B, Taipan gains access to Block 1 onshore Kenya.

Charles Watson, a member of Taipan’s board commented, "The closing of Taipan's first major transaction and financing is a very exciting time in the development of the company. Lion's Block 1 and Block 2B onshore Kenya are highly prospective oil and gas exploration blocks with significant potential. With a 100% interest and operatorship of Block 2B, Taipan has a number of attractive strategic options as the Company moves closer to its drilling program."

Alec Robinson, CEO of Lion, has been appointed as president of Taipan and Andrew Bell, Lion's CFO, has been appointed as the CFO of Taipan.

Union Securities acted as Sponsor for the Transaction and in addition to a cash sponsorship fee received 100,000 common shares of Taipan.