LOTUS RESOURCES LIMITED — Capital/Financing Update 2021

Nov 29, 2021

30 November 2021

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ASX Announcement

DRILLING COMMENCES AT LIVINGSTONIA TENEMENTS

Lotus Resources Limited (ASX: LOT, OTCQB: LTSRF) ( Lotus or the Company ) is pleased to announce the commencement of drilling at the recently acquired Livingstonia tenement and at regional prospects in Malawi. Livingstonia has the potential to become a satellite operation from which material could be transported to the Company’s Kayelekera Uranium facility.

HIGHLIGHTS

• Lotus has commenced a 30-hole ( ∼ 4,000 metre) reverse circulation (RC) drill program at Livingstonia.

• The program is designed to convert the historic resource[1] (JORC 2004) into a JORC 2012 resource and test potential high-grade extensions.

• Multiple greenfield targets are also being considered, including the untested Chilumba prospect (Figure 2) where a major radiometric anomaly has been identified (Figure 3).

• Assay results from the Kayelekera uranium and Milenje rare earth exploration programs completed in October are still pending. Samples have been received at the laboratories in Johannesburg and are currently being processed.

Keith Bowes, Managing Director, commented:

“To be on the ground just over a month after receiving our Livingstonia exploration licences is an excellent result and testament to our team in Malawi. The prospectivity at Livingstonia, and in the surrounding area, is outstanding and we believe the area has the potential to become a satellite deposit for the Company in the future, feeding our Kayelekera processing facility.

“The aim of this exploration program is threefold. Firstly, to convert the historic resource at Livingstonia to a JORC 2012 resource; secondly, to test the multiple extensions around the Livingstonia resource that have been poorly tested; and finally, to test a number of greenfield targets, including the Chilumba prospect, that has a major radiometric anomaly and has never been drill tested.”

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Figure 1: Drilling underway at Livingstonia

1 ASX announcements 14 October 2021 and 22 October 2021.

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EXPLORATION UNDERWAY AT LIVINGSTONIA

The Livingstonia uranium exploration tenements are located in Northern Malawi, approximately 90km southeast of the Company’s Kayelekera Uranium Mine (Figure 1). Combined with the Chilumba Project, this region covers 300km[2] .

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Figure 2: Livingstonia Project Location

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The Company commenced consolidation of this prospective region in 2021, and this is the first uranium exploration to be undertaken in the area in more than a decade. The project is still very much in an early exploration phase with the planned work program consisting of an RC drilling program totalling 30 drillholes for approximately 4,000m, consisting of:

• 6 holes within the historical resource boundary as part of the QAQC process align with JORC 2012;

• 14 holes targeting extensional opportunities that will target resource growth; and

• 10 holes to follow up on anomalies that may be used as future targeting, including four holes that will be drilled at the Chilumba prospect located 10 km from Livingstonia (Figure 2).

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Figure 2: Airborne Radiometrics at Chilumba[2]

• 2 ASX announcement 31 March 2020

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Figure 3: Landscape at Livingstonia Resource Area

This announcement has been authorised for release by the Company’s board of directors.

For further information, contact:

Keith Bowes Managing Director T: +61 (08) 9200 3427

Adam Kiley Business Development T: +61 (08) 9200 3427

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ABOUT LOTUS

Lotus Resources Limited ( ASX: LOT, OTCQB: LTSRF ) owns an 85% interest in the Kayelekera Uranium Project in Malawi. The Project hosts a current resource of 37.5M lbs U3O8 (see table below), and historically produced ~11MIb of uranium between 2009 and 2014. The Company completed a positive Restart Study[1] which demonstrated that Kayelekera can support a viable long-term operation and has the potential to be one of the first uranium projects to recommence production in the future.

Table 3: Kayelekera Mineral Resource Estimate – March 2020[3]

Category	Mt	Grade (U3O8 ppm)	U3O8 (M kg)	U3O8 (M lbs)
Measured	0.7	1,010	0.7	1.5
Measured – RoM Stockpile4	1.6	760	1.2	2.6
Indicated	18.7	660	12.3	27.1
Inferred	3.7	590	2.2	4.8
Total	24.6	660	16.3	36.0
Inferred – LG Stockpiles5	2.4	290	0.7	1.5
Total All Materials	27.1	630	17.0	37.5

For more information, visit www.lotusresources.com.au

REFERENCE TO PREVIOUS ASX ANNOUNCEMENTS

In relation to information in this announcement that relates to the previously reported mineral resource estimate at Livingstonia, the date of which is referenced, Lotus confirms that it is not in possession of of any new information or data that materially impacts on the reliability of the estimate or the ability to verify the estimate as mineral resources. Lotus confirms that the supporting information provided in the announcements of 14 October 2021 and 22 October 2021 continues to apply and have not materially changed.

The estimates of mineral resources at Livingstonia are historical and are not reported in accordance with the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ( JORC Code 2012 ); a Competent Person has not done sufficient work to classify the historical estimates as Mineral Resources in accordance with the JORC Code 2012; and it is uncertain that following evaluation and/or further exploration work that the currently reported historical estimates will be able to be reported as Mineral Resources under the JORC Code 2012.

In relation to information in this announcement that relates to previously reported exploration results, the date of which is referenced, Lotus confirms that that it is not aware of any new information or data that materially affects the information included in that announcement.

3 See ASX announcement dated 26 March 2020. Lotus confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 26 March 2020 and that all material assumptions and technical parameters underpinning the Mineral Resource estimate in that announcement continue to apply and have not materially changed.

4 RoM stockpile has been mined and is located near mill facility.

5 Medium-grade stockpiles have been mined and placed on the medium-grade stockpile and are considered potentially feasible for blending or beneficiation, with studies planned to further assess this optionality.

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