LOTUS RESOURCES LIMITED — Capital/Financing Update 2017

Apr 12, 2017

LANDMARK DRILL HOLE COMMENCES

Tabac Cobalt-Gold Project

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HIGHLIGHTS

• Drilling underway on Riva Resources Limited (“Riva or the “Company”) 100%-owned Tabac Cobalt-Gold Project (“Tabac Project”).

• First hole to twin the significant historical intercept of 80 metres at 0.77% cobalt from 170 metres, including 10 metres at 1.47% cobalt in PP011.

• Rosslyn Hill Mining Pty Ltd (“RHM”) drilling to follow immediately after twin hole development

• Initial drill hole to take 7 – 10 days with assay results expected early to mid-May

• RHM Farm-in Agreement close to finalisation

REVISED DRILLING PROGRAM

The Company is pleased to advise that exploration drilling has commenced on its 100%-owned Tabac Project tenements.

The Company’s current strategy is to drill a diamond hole adjacent to the shallower of the two significant historical drill holes (PP011), which reportedly intersected cobalt-bearing stromatolitic carbonates, returning the significant intercept of:

• 80 metres at 0.77% cobalt from 170 metres, including 10 metres at 1.47% cobalt.

Post completion of the twin hole to an anticipated depth of 350 metres, which will take 7 to 10 days, the Company will commence drilling of the planned southern holes as part of the RHM approved programme before returning to the Tabac Project.

All drill core will be geologically logged on site with selected intervals delivered to Perth for cutting, sampling and analysis. Assay results are

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ex p ected wi t hin the m o nth follo w ing com p letion of e ach dia m ond drill h ole. Se e Figure 1 b elow for a visual re p resentati o n of the d r illing prog r am.

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Diagram 1: Riv a Drill Program – April 2017

RHM JOINT VENTURE

Riv a is clos e to finali s ing doc u mentatio n for the previousl y announ c ed ex p loration f a rm-in wit h RHM, o w ner and operator of the a d jacent P a roo Sta t ion lead mine. Th e agree m ent will p rovide a c cess to R HM’s pr o ject da t abase and infrastructure, an d the righ t to earn 7 5% of th e cobalt, g old an d copper m ineral rig h ts on its t e nements.

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Should the Company replicate the historical drilling intercepts and/or discover significant cobalt mineralisation within RHM’s ground, then the Yerrida Basin has the potential to become a new cobalt province.

Riva’s Managing Director, Jonathan King, commented:

“The Company is well prepared for, and excited by the prospect of twinning hole PP011. The results are eagerly awaited for what is perhaps the most anticipated cobalt drill hole in Australia. Riva looks forward to addressing conclusively the uncertainty attributed to the historic assay results.

The Company is equally as enthusiastic about the immediate benefits that will flow through from working with our neighbour, Rosslyn Hill Mining, following execution of the agreement.”

For further enquiries, please contact:

Jonathan King Managing Director

+61 8 9322 6009 jonathan.king@rivaresources.com.au

Competent Persons Statement

The information in this announcement that relates to Tabac Cobalt-Gold Project is based on information compiled and fairly represented by Mr Jonathan King, who is a Member of the Australian Institute of Geoscientists and is an employee of Riva Resources Limited. Mr King has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he has undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr King consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

JORC tables pertaining to the original ACM drilling are contained in the acquisition announcement dated 14/09/2016: Acquisition of cobalt-gold project (“Tabac Project”) in Western Australia (See ASX: RIR).

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