LION COPPER & GOLD CORP.

18.7 CONTINGENCY

The estimate incorporates a contingency fund to address unforeseen variances between the specific items considered in the estimate and the eventual total installed Project cost. The contingency does not cover scope changes or design expansions.

Contingency has been allocated to the estimate on an area basis, with varying percentages reflecting the level of confidence associated with each estimate area. It's worth noting that contingency is independent of the specified estimate accuracy and should be evaluated in the context of the Project's total cost, inclusive of contingency. In total, the contingency for the Capital Cost Estimate amounts to approximately 24.3% of the total Project cost, equating to $275.6 million over the mine's operational lifespan. Open pit mining contingency is 5% but all contingency is captured in operating costs as project was costed based on equipment leasing terms.

Table 18.11 presents the contingency percentages and costs applied to each respective area for reference.