LOTUS RESOURCES LIMITED — Capital/Financing Update 2021

Sep 22, 2021

23 September 2021

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ASX Announcement

LOTUS COMPLETES THE DIVESTMENT OF ITS NON-CORE HYLEA PROJECT

Lotus Resources Limited ( ASX: LOT, OTCQB: LTSRF) (Lotus or the Company ) is pleased to announce that it has completed the divestment of the Hylea Cobalt Project ( Hylea Project ) to Sunrise Energy Metals Limited (ASX.SRL) ( Sunrise ). The total consideration for the transaction comprised $1.0 million in cash ( Cash Consideration ) and 724,086 shares in Sunrise ( Sunrise Shares ).

Working with Sunrise, the Company has sold the Sunrise Shares, which together with the Cash Consideration, brings the total cash proceeds from the divestment of the Hylea Project to $2.2 million. The Company is in a strong financial position with cash reserves as at the end of June 2021of $28 million and is fully funded to complete planned activities, including the completion of a definitive feasibility study, until 2023.

For further information, contact:

Keith Bowes Adam Kiley Managing Director Business Development T: +61 (08) 9200 3427 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.

recommence production in the future.	recommence production in the future.	recommence production in the future.
Kayelekera Mineral Resource Estimate –			March 20201
Category	Mt	Grade (U3O8 ppm)	U3O8 (M kg)	U3O8 (M lbs)
Measured	0.7	1,010	0.7	1.5
Measured – RoM Stockpile2	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 Stockpiles3	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

1 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.

2 RoM stockpile has been mined and are located near mill facility.

3 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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