Lions Bay Capital Inc. (‘Lions Bay’ or the ‘Company’) announced that drilling has commenced on the mineral tenements held by Savic Pty Ltd. (‘Savic’) in Western Victoria, Australia. The drill program aims to test the extension of rare earth mineralisation on the Savic ground which lies adjacent to the discovery by Australian Rare Earths Ltd. in near surface clays. Lions Bay expects to complete a total of 16 short holes this week which should be sufficient to enable the board to make a decision on entering into a Joint Venture agreement covering the Savic ground. LBI paid AUD 200,000 (CAD 183,000) for an option to enter a Joint Venture under which it can earn a 50% interest in the Savic areas by spending AUD 5.0 million (CAD 4.57 million) over 3 years.