LOTUS RESOURCES LIMITED — Capital/Financing Update 2016

Jul 19, 2016

20 July 2016

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NON-RENOUNCEABLE RIGHTS OFFER CLOSURE AND NOTICE OF SHORTFALL

Dragon Energy Limited (ASX Code: DLE) advises that the non-renounceable entitlement issue of a maximum of 206,426,374 New Shares on the basis of 1 New Share for every 1 Share held by Shareholders registered at the Record Date at an issue price of $0.005 per New Share to raise up to $1,032,132 pursuant to the Prospectus dated 24 June 2016, closed on 15 July 2016.

The Company received valid applications for 14,642,250 New Shares.

The shortfall will be dealt with in accordance with Part 7.6 of the Prospectus.

Yours sincerely

Keong Chan Company Secretary

A C N 1 1 9 9 9 2 1 7 5 Suite 8, 1297 Hay Street, West Perth, Western Australia, 6005 T: (61-8) 9322 6009 F: (61-8) 9322 6128