LOTUS RESOURCES LIMITED — Investor Presentation 2011

Mar 7, 2011

Disclaimer

This document has been prepared by Dragon Energy Ltd ("DLE") (ABN 38 119 992 175) and provided as a basic overview on the company. This document does not purport to be all-inclusive or to contain all the information that someone may require to evaluate the prospects or assets of DLE.

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Although reasonable care has been taken to ensure that the facts stated in this presentation are accurate and or that the opinions expressed are fair and reasonable, no reliance can be placed for any purpose whatsoever on the information contained in this document or on its completeness.

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Summary

• ASX listed resource company with A\$16 million cash
• Flagship Pilbara Iron Project with 63Mt of JORC iron ore resource, and additional exploration target of 140 - 190Mt
• Portfolio of iron ore, manganese, gold, base metals and coal exploration projects in Western Australia and Queensland
• Strategic support from major shareholder, a leading private Chinese Mining Company
• Experienced board and management comprising of Australian and Chinese nationals

Corporate

ASX code	DLE	Directors
Shares on issue	206.4 m	Jie Chen	Exec. Chairman
Market Cap (@\$0.20 per share)	A\$41.3 m	Gang Xu	Managing Director
Cash	~A\$16 m	Anthony Ho	Exec. Director Non Exec Director Non Exec Director
Debt	Nil	Qingyong Guo
		Wenle Zeng
		Shareholders
		Top 20 Shareholders 88.2% (Mar 2011)
Options on issue		Major Shareholders (Mar 2011) 70.3% - Shandong Taishan Group 6.6% - Mr Gang Xu
- listed (Nov 2014 @\$0.35)	47.46 m
- unlisted (May 2012 @\$0.30)	11.15m

Executives

Jie Chen – Executive Chairman

• Chairman of Shandong Taishan Group
• Awarded Top 10 young entrepreneur in Shandong province
• Awarded Top 20 best mine manager in China

Anthony Ho – Executive Director

• Over 25 yrs experience in corporate and finance services
• Principal of corporate advisory and services firm
• Director and secretary to several ASX listed companies

Henry Ng – Corporate Development Manager

• Ex Head of Asian Development at Aquila Resources
• Senior M&A banker at Barclays and HSBC in Hong Kong
• Mining Engineer, worked at Rio Tinto Paraburdoo Mine

Peter Dillon – Operations Consultant

• 30 yrs as analyst and commercial manager
• Country experience incl. PNG, China and the Philippines
• Specialising in project development

Gang Xu – Managing Director

• Over 20 yrs experience in mining and energy industry
• Finance and Marketing Manager for Sino Gold Limited
• Senior geologist at China National Nuclear Corporation

Mark Hafer – Exploration Manager

• Over 10 yrs experience in iron, gold and metals exploration
• Field experience in WA, SA and Kazakhstan
• Senior Geologist at Mt Gibson Iron

Joel Brook – Senior Geologist

• 5 yrs experience in iron, base metals, and gold exploration
• Field expertise covering the whole of Western Australia
• Senior geologist for major drilling programs

Lindsay Cahill – Exploration Consultant

• 30 yrs managing geological and development programs
• Commodity include iron, base metals and minerals sands
• Senior Geologist for Highlands Gold

Milestones

• Feb, 2009 Listed on the ASX
• Dec, 2009 Acquired 3 exploration projects from Polaris NL
• Oct, 2010 Acquired Rocklea and Nameless projects from AusQuest
• Jan, 2011 Applications for 5 WA exploration tenements granted
• Feb, 2011 Completed rights and options issue to raise A\$19.2m

Consistent Progress

Project Summary

Pilbara Iron Project

• Rocklea
• Nameless

WA Metals Exploration

• Lee Steere
• Ashburton
• Mt Gibson
• Milly Milly
• Carters Well

Queensland Coal Exploration

• Moranbah
• Boonah

Pilbara Iron Project - Overview

Two centrally located advance iron ore exploration projects in the prolific Pilbara region¹ of Western Australia

Rocklea

63.1Mt @ 53.4% Fe JORC inferred resource, 50% Fe cutoff

Nameless

140 - 190Mt iron ore exploration target

1 In 2010, the Pilbara region accounted for 92.5% of Australia's total iron ore production and 79.5% of total identified resources (source: Geoscience Australia) ⁸

Pilbara Iron Project - Infrastructure

9

Pilbara Iron Project - Rocklea

• Drilling has identified JORC inferred resources of 63.1Mt @ 53.4% Fe (50% Fe cut off)
• Channel iron style mineralisation
• Shallow deposit, low mining costs
• Direct shipping ore characteristics
• Several additional exploration targets remain on the tenement

	Rocklea Ore Characteristics Summary
	Million	Fe	caFe	SiO2	Al2O3	P	LOI,	Cut-off
	tonnes	(%)	(%)	(%)	(%)	(%)	(%)	Grade
Inferred	63.1	53.38	60.37	7.69	2.54	0.03	11.59	50%

Source: AusQuest 17 August 2009 ASX Announcement

11

Pilbara Iron Project – Rocklea Cross Section

Pilbara Iron Project - Nameless

• CID and Marra Mamba mineralisation with exploration target of 140 190Mt identified from previous drilling
• Additional infill drilling to prove up orebody to JORC standard

Pilbara Iron Project – Nameless Cross Section

Typical CID section, shallow mineralisation Strike Length: 15km Channel Width: 400 to 600m CID thickness: up to 24m

Exploration - Lee Steere Project

Tenement E69/2126, E69/2377

Location 200km NE of Wiluna

Area 227km²

Targets Fe, Mn

Status Encouraging Fe and Mn surface sampling results; Completed geophysics

modeling; Drill testing planned

Exploration – Ashburton Project

Tenement E08/2209-2211, E47/2417

Location Pilbara region, close to Paraburdoo infrastructure

Area 507km²

Targets CID and detrital Iron

Status Targets identified; Further exploration planned

Exploration – Mt Gibson Project

Tenement E59/1637-38, E59/1686-87

Location

80km NE of Wubin, 30km to Extension Hill Iron Project, adjacent to Mt Gibson Gold Mine

Area

265km²

Targets

Iron, gold, base metal

Stauts

Completed initial review; Exploration targets generated

Exploration – Carters Well Project

Tenement

E59/1639

Location

30km south of Mt Magnet gold mining district

Area

142km²

Targets

Gold, base metal

Status

Completed initial review; Exploration targets generated

Exploration – Milly Milly Project

Tenement E09/1811

Location

196km west of Meekatharra, 58km east of Jack Hills iron project

Area 191km²

Targets Iron, base metal

Comment Under review

Priorities in 2011

• Pilbara Iron Project
• Establish maiden JORC resource at Nameless
• Expand resources at Rocklea
• Examine development options
• Exploration Projects
• Lee Steere: drill test identified targets
• Others: field survey and remote sensing
• Corporate
• Evaluate new targets and acquisitions

Competent Person / Exploration Target

Competent Person's Statement

The information in the report to which this document is attached that relates to Exploration Results is based on information compiled by Mr Mark Hafer, who is a Member of The Australian Institute of Geoscientists. Mr Hafer is a full-time employee of the company. Mr Hafer has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Hafer consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Exploration Target

Exploration Targets are reported according to Clause 18 of the JORC Code. Potential quantity and grade of mineralisation is conceptual in nature. Further exploration, particularly drilling, is necessary before any identified Mineral Resources can be reported. It is uncertain if further exploration will lead to a larger, smaller or any Mineral Resource.