Private Placement Announcement

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

December 31, 2010

News Release 10-1

Private Placement Announcement

Vancouver, BC – Lions Gate Energy Inc. (the “Company”) announces that it will undertake a non-brokered private placement to raise up to $50,000 by the issue of up to 476,190 flowthrough units (“Units”) at $0.105 per Unit (the “Offering”). Each Unit will consist of one flowthrough common share and one flow-through common share purchase warrant exercisable into one flow-through common share at a price of $0.135 per share for a period of 2 years from the closing date. Insiders of the Company may participate in the Offering which would constitute a related party transaction pursuant to Multilateral Instrument 61-101 and TSX Venture Exchange Policy 5.9 but which is exempt from the requirement to obtain an independent valuation pursuant to Section 5.5(b) of MI 61-101 and the requirement to obtain minority shareholder approval pursuant to Section 5.7(1)(b) of MI 61-101. Their participation will be on the same terms as arm’s length investors, and such insiders’ shareholdings in the Company will increase as a result of any such participation. The funds raised through the Offering will be used for general working capital purposes. All common shares distributed pursuant to the Offering will be subject to a hold period of four months plus one day following the closing of the Offering. The Offering is subject to regulatory approval.

ON BEHALF OF THE BOARD OF DIRECTORS

“J. Frank Callaghan”

J. Frank Callaghan President and CEO

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