LOTUS RESOURCES LIMITED — M&A Activity 2012

Aug 20, 2012

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ACQUISITION OF MURCHISON METALS LTD’S ROCKLEA IRON PROJECT

ASX Announcement

21 August 2012

ASX Announcement ASX Code: DLE Released: 21 August 2012

For Further Information Gang Xu Managing Director Tel: +61 8 9322 6009

Dragon Energy Ltd is pleased to announce that it has completed the purchase of Muchison Metals Ltd's Rocklea Project ("the Project").

The Company announced on 10 July 2012 that it had signed an agreement to purchase the Project subject only to the parties obtaining the consent to the assignment of a standard native title heritage agreement. The relevant Deed of Assignment was signed by only parties on 17 August 2012 and the sale of the Project was completed on 21 August 2012.

Directors

Jie Chen Chairman

Gang Xu Managing Director

The Project assets will now be combined with Dragon Energy Ltd's Rocklea and Nameless Deposits to expand the Company's Pilbara Iron Project .

Tim Williams COO, Executive Director

Share Registry Computershare Investor Services Level 2, Reserve Bank Building 45 St George’s Terrace Perth WA 6000 www-au.computershare.com

Authorised by:

Gang Xu Managing Director

Contact Details Dragon Energy Ltd Suite 8, 1297 Hay Street West Perth, WA 6005 PO Box 1968, WA 6872 Tel: +61 8 9322 6009 Fax: +61 8 9322 6128 www.dragonenergyltd.com ABN: 38 119 992 175

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Suite 8 1297 Hay Street, West Perth, Western Australia, 6005 T: (61-8) 9322 6009 F: (61-8) 9322 6128