Lotus Resources 2025 Annual Report

• Production Restart: Achieved first yellowcake production at Kayelekera mine in August 2025, reducing initial capital from US$88 million to US$50 million
• Offtake Agreements: Secured binding contracts for 3.5-3.8 million pounds of uranium sales (2026-2029) with North American utilities and traders
• Resource Upgrade: Letlhakane project now has 50% of resources in indicated category following drilling programme, with 113.7 million pounds total resources
• Funding Completed: Raised A$132 million in equity and secured additional debt facilities to fund restart operations
• Community Agreement: Formalised Community Development Agreement allocating 0.45% of revenues to local development initiatives

Lotus Resources (ASX:LOT) is a uranium mining company based in Australia that operates projects in Malawi and Botswana. The company restarted the Kayelekera uranium mine in Malawi during 2025 and holds the Letlhakane project in Botswana, which contains 113.7 million pounds of uranium resources.

Kayelekera previously operated from 2009-2014, producing approximately 11 million pounds of uranium before entering care and maintenance due to low uranium prices. The company acquired the asset and has completed refurbishment works to restore production capabilities.

Kayelekera Mine Restart & Production Achievement

Kayelekera achieved first yellowcake production in August 2025 following implementation of an accelerated restart plan. The plan reduced the timeline to first production from 15 months to 8-10 months and lowered initial capital expenditure from US$88 million to US$50 million by focusing on essential items and deferring non-critical long-lead components.

The restart was supported by a Mine Development Agreement with the Government of Malawi providing fiscal stability for 10 years. The company received necessary approvals including radiation licences from Malawi's Atomic Energy Regulatory Authority and Environmental and Social Impact Assessment approval. Over 400 personnel were mobilised to site during the restart phase.

Production utilises existing processing infrastructure with refurbished diesel generators providing power during initial operations. Grid connection to the Malawi national electricity system is planned for late 2026, which is expected to reduce operating costs. The company has chosen owner-operator mining rather than contractor arrangements.

Letlhakane Project Development & Resource Expansion

Letlhakane completed a 164-hole drilling programme totalling 12,108 metres during 2025, primarily aimed at upgrading inferred resources to indicated status. The revised mineral resource estimate shows 71.6 million tonnes at 360ppm uranium in the indicated category and 70.6 million tonnes at 366ppm in the inferred category.

A scoping study was completed in March 2025, outlining a potential 10-year operation producing 3 million pounds per annum for total production of 29 million pounds. The study assumes mill feed of 45 million pounds, of which 75% comprises indicated mineral resources. The study represents approximately 40% of Letlhakane's total resource base.

The project is located in Botswana, with existing infrastructure including sealed roads, rail lines and power transmission nearby. Current work focuses on mining cost optimisation and acid consumption reduction studies. A prefeasibility study is targeted for calendar year 2026.

Sustainability & ESG Governance Framework

The company reported a group Total Recordable Injury Frequency Rate of 1.33 per 200,000 hours worked for the 12-month period, compared to 2.27 in the previous year. More than 90% of the 500-plus workforce at Kayelekera comprises local personnel during commissioning and ramp-up phases.

The Community Development Agreement was established in January 2025 following consultation with local government, traditional authorities and community leaders within 20 kilometres of the mine. The agreement commits 0.45% of revenues to community development as determined by a steering committee of community representatives.

Lotus achieved an S&P Global ESG Score of 39 out of 100, placing it in the 58th percentile of the metals and mining industry. The company released its fourth annual sustainability report in December 2024 and has initiated alignment with Australian Sustainability Reporting Standards released in September 2024.

Conclusion

Lotus Resources completed the restart of Kayelekera uranium production in August 2025 and has secured offtake agreements covering approximately 36% of planned production over 2026-2029. The Letlhakane project resource upgrade provides a development pipeline, with studies continuing toward a prefeasibility study in 2026. Revenue generation from Kayelekera is expected to commence in the first half of 2026 following product logistics arrangements.

‍