LOTUS RESOURCES LIMITED — Capital/Financing Update 2020

Oct 22, 2020

Proposed issue of securities

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Announcement Summary

Entity name

LOTUS RESOURCES LIMITED

Announcement Type

New announcement

Date of this announcement

Friday October 23, 2020

The Proposed issue is:

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A placement or other type of issue

Total number of +securities proposed to be issued for a placement or other type of issue

		Maximum Number of
ASX +security code	+Security description	+securities to be issued
n/a	Unquoted options	5,000,000
n/a	Unlisted options	2,500,000
n/a	Unlisted options	2,500,000

Proposed +issue date

Friday October 23, 2020

Refer to next page for full details of the announcement

Proposed issue of securities

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Proposed issue of securities

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Part 1 - Entity and announcement details

1.1 Name of +Entity

LOTUS RESOURCES LIMITED

We (the entity named above) give ASX the following information about a proposed issue of +securities and, if ASX agrees to +quote any of the +securities (including any rights) on a +deferred settlement basis, we agree to the matters set out in Appendix 3B of the ASX Listing Rules.

1.2 Registered Number Type

ACN

Registration Number

119992175

1.3 ASX issuer code

LOT

1.4 The announcement is

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New announcement

1.5 Date of this announcement

Friday October 23, 2020

1.6 The Proposed issue is:

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A placement or other type of issue

Proposed issue of securities

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Proposed issue of securities

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Part 7 - Details of proposed placement or other issue

Part 7A - Conditions

7A.1 - Are any of the following approvals required for the placement or other type of issue? +Security holder approval Court approval Lodgement of court order with +ASIC ACCC approval FIRB approval Another approval/condition external to the entity

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No

Part 7B - Issue details

Is the proposed security a 'New Will the proposed issue of this class' (+securities in a class that is +security include an offer of not yet quoted or recorded by ASX) attaching +securities? or an 'Existing class' (additional No securities in a class that is already quoted or recorded by ASX)? New class

Details of +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

Have you received confirmation from Will the entity be seeking quotation ASX that the terms of the proposed of the 'new' class of +securities on +securities are appropriate and ASX? equitable under listing rule 6.1? No No ASX +security code +Security description New class-code to be confirmed Unquoted options

+Security type

Options

Number of +securities proposed to be issued

5,000,000

Offer price details

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Proposed issue of securities

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Are the +securities proposed to be issued being issued for a cash consideration? No

Please describe the consideration being provided for the +securities
Issued pursuant to a corporate advisory mandate
Please provide an estimate of the AUD equivalent of the consideration being
provided for the +securities
325,000.000000
Will all the +securities issued in this class rank equally in all respects from
their issue date?
Yes
Options details
+Security currency Exercise price	Expiry date
AUD - Australian Dollar AUD 0.0400	Monday October 23, 2023
Details of the type of +security that will be issued if the option is exercised
LOT : ORDINARY FULLY PAID
Number of securities that will be issued if the option is exercised
Each option can be exercised to receive one fully paid ordinary share
Please provide a URL link for a document lodged with ASX setting out the material terms of the +securities
proposed to be issued or provide the information by separate announcement. https://lotusresources.com.au/lotus/wp-content/uploads/austocks/lot/2019_10_29_LOT_8186683f2b300b485d491a9f015f
7505.pdf
Is the proposed security a 'New Will the proposed issue of this
class' (+securities in a class that is +security include an offer of
not yet quoted or recorded by ASX) attaching +securities?
or an 'Existing class' (additional No
securities in a class that is already
quoted or recorded by ASX)?
New class

Details of +securities proposed to be issued

ISIN Code (if Issuer is a foreign company and +securities are non CDIs)

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Proposed issue of securities

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Have you received confirmation from Will the entity be seeking quotation ASX that the terms of the proposed of the 'new' class of +securities on +securities are appropriate and ASX? equitable under listing rule 6.1? No No ASX +security code +Security description New class-code to be confirmed Unlisted options

+Security type

Options

Number of +securities proposed to be issued 2,500,000

Offer price details

Are the +securities proposed to be issued being issued for a cash consideration? No

Please describe the consideration being provided for the +securities

Options being issued pursuant to a corporate advisory mandate

Please provide an estimate of the AUD equivalent of the consideration being provided for the +securities

145,000.000000 Will all the +securities issued in this class rank equally in all respects from their issue date? Yes

Options details

+Security currency Exercise price Expiry date AUD - Australian Dollar AUD 0.0600 Monday October 23, 2023

Details of the type of +security that will be issued if the option is exercised LOT : ORDINARY FULLY PAID

Number of securities that will be issued if the option is exercised

Each option can be exercised to receive one fully paid ordinary share

Please provide a URL link for a document lodged with ASX setting out the material terms of the +securities proposed to be issued or provide the information by separate announcement. - https://lotusresources.com.au/lotus/wp content/uploads/austocks/lot/2019_10_29_LOT_8186683f2b300b485d491a9f015f 7505.pdf

Proposed issue of securities

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Proposed issue of securities

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Is the proposed security a 'New Will the proposed issue of this class' (+securities in a class that is +security include an offer of not yet quoted or recorded by ASX) attaching +securities? or an 'Existing class' (additional No securities in a class that is already quoted or recorded by ASX)? New class Details of +securities proposed to be issued ISIN Code (if Issuer is a foreign company and +securities are non CDIs) Have you received confirmation from Will the entity be seeking quotation ASX that the terms of the proposed of the 'new' class of +securities on +securities are appropriate and ASX? equitable under listing rule 6.1? No No ASX +security code +Security description New class-code to be confirmed Unlisted options +Security type Options Number of +securities proposed to be issued 2,500,000 Offer price details Are the +securities proposed to be issued being issued for a cash consideration? No

Please describe the consideration being provided for the +securities

Issued pursuant to a corporate advisory mandate Please provide an estimate of the AUD equivalent of the consideration being provided for the +securities 130,000.000000 Will all the +securities issued in this class rank equally in all respects from their issue date? Yes

Options details

+Security currency

AUD - Australian Dollar

Exercise price AUD 0.0800

Expiry date Monday October 23, 2023

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Proposed issue of securities

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Details of the type of +security that will be issued if the option is exercised

LOT : ORDINARY FULLY PAID

Number of securities that will be issued if the option is exercised

Each option can be exercised to receive one fully paid ordinary share

Please provide a URL link for a document lodged with ASX setting out the material terms of the +securities proposed to be issued or provide the information by separate announcement. - https://lotusresources.com.au/lotus/wp content/uploads/austocks/lot/2019_10_29_LOT_8186683f2b300b485d491a9f015f 7505.pdf

Part 7C - Timetable

7C.1 Proposed +issue date

Friday October 23, 2020

Part 7D - Listing Rule requirements

7D.1 Has the entity obtained, or is it obtaining, +security holder approval for the entire issue under listing rule 7.1? No

7D.1b Are any of the +securities proposed to be issued without +security holder approval using the entity's 15% placement capacity under listing rule 7.1? Yes

7D.1b ( i ) How many +securities are proposed to be issued without security holder approval using the entity's 15% placement capacity under listing rule 7.1?

10000000

7D.1c Are any of the +securities proposed to be issued without +security holder approval using the entity's additional 10% placement capacity under listing rule 7.1A (if applicable)? No

7D.2 Is a party referred to in listing rule 10.11 participating in the proposed issue? No

7D.3 Will any of the +securities to be issued be +restricted securities for the purposes of the listing rules? No

7D.4 Will any of the +securities to be issued be subject to +voluntary escrow? No

Part 7E - Fees and expenses

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Proposed issue of securities

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7E.1 Will there be a lead manager or broker to the proposed issue? No 7E.2 Is the proposed issue to be underwritten? No

7E.4 Details of any other material fees or costs to be incurred by the entity in connection with the proposed issue

Part 7F - Further Information

7F.01 The purpose(s) for which the entity is issuing the securities

Issued pursuant to the terms of a corporate advisory mandate

7F.1 Will the entity be changing its dividend/distribution policy if the proposed issue proceeds? No

7F.2 Any other information the entity wishes to provide about the proposed issue

The issue was approved at an AGM on 28/11/2019. Due to an oversight, the options were not issued within 3 months of that AGM and are now to be issued using capacity under Listing Rule 7.1

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