Lotus Resources Advances Kayelekera Uranium Restart with Mill Commissioning Progress

• Semi-Autogenous Grinding (SAG) mill refurbishment completed with successful restart achieved, marking a critical milestone for the Kayelekera processing plant
• Hot commissioning phase underway across crushing, grinding, pre-leach and leach areas using mineralised waste before transitioning to ore
• Elution, precipitation, drying and packaging circuits being commissioned ahead of first uranium oxide production this quarter
• Company maintains strong financial position with A$77.3 million cash at end of June and no debt drawn
• Project previously produced approximately 11 million pounds of uranium between 2009 and 2014 before operations were suspended

Lotus Resources Limited is an Africa-focused uranium development company with significant mineral resources across two key projects. The company holds an 85% interest in the Kayelekera Uranium Project in Malawi and 100% ownership of the Letlhakane Uranium Project in Botswana. Combined, these assets contain a total mineral resource inventory of 164.8 million pounds of uranium.

Managing Director Greg Bittar leads the company's operations with experience in resource development and restart projects. Under his leadership, Lotus has positioned itself as a leading advanced uranium player in Africa, focusing on creating value for shareholders while working with local communities to provide meaningful impact. The company's strategy centers on restarting production at previously operating mines, leveraging existing infrastructure and established relationships.

Process Plant Refurbishment Nears Completion

The Kayelekera processing plant has reached a significant operational milestone with the completion of its SAG mill refurbishment. This SAG mill, which crushes and grinds ore into smaller particles for processing, represents a critical component of the uranium extraction process. The mill has been successfully restarted and loaded with grinding media, enabling the plant to begin processing material.

Hot commissioning activities are currently underway across multiple areas of the processing facility. This phase involves feeding the plant with mineralised waste rather than ore, allowing operators to verify system performance and achieve proper densities in the leach and resin-in-pulp circuits. The approach reduces risk by testing all systems before introducing valuable ore material.

The commissioning process extends beyond the mill to include the elution, precipitation, drying and packaging circuits. These downstream processes are essential for converting processed uranium into the final uranium oxide product that can be sold to nuclear fuel customers. The systematic approach to commissioning each area demonstrates the company's methodical progress toward production restart.

Work has progressed to the point where the company anticipates first uranium oxide production this quarter. This timeline aligns with the company's previously announced restart schedule and represents the culmination of extensive refurbishment work that began following the company's decision to restart the previously operating mine.

Environmental and Operational Impact

The Kayelekera project benefits from established infrastructure and regulatory approvals, having operated successfully from 2009 to 2014. The restart approach allows the company to leverage existing processing facilities, reducing the environmental footprint compared to developing a new mine. The processing plant has been designed to handle the specific characteristics of Kayelekera ore, with proven metallurgical performance from its previous operating period.

Lotus has maintained engagement with the Government of Malawi throughout the restart process, including recent updates provided to the Ministry of Mining regarding restart plans and production timelines. This ongoing communication supports the company's social license to operate and ensures alignment with local regulatory requirements.

The project's operational impact extends to local employment and economic activity in the region. As production restart approaches, the company continues to work with local communities to ensure meaningful benefits from the project's renewed operations.

Management Commentary

Managing Director Greg Bittar highlighted the significance of the mill restart: 

"Following the completion of extensive mill refurbishment, alignment and grinding media loading, we have restarted the Kayelekera mill. With the mill being such a critical aspect of the processing plant refurbishment, achieving its restart is a terrific milestone ahead of production at Kayelekera."

Summary and Next Steps

Lotus Resources has achieved a significant milestone in its Kayelekera uranium project restart with the successful completion of SAG mill refurbishment and commencement of hot commissioning activities. The company's systematic approach to plant restart, beginning with mineralised waste before transitioning to ore, demonstrates prudent operational management.

The immediate focus centers on completing commissioning of the elution, precipitation, drying and packaging circuits to enable first uranium oxide production this quarter. This production milestone will mark the successful restart of a facility that previously operated for five years and produced 11 million pounds of uranium. With strong financial backing of A$77.3 million in cash and no debt, Lotus appears well-positioned to achieve its production timeline and advance toward becoming a significant uranium producer in the African market.

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