Lotus Resources Commences Infill Drilling at Letlhakane Uranium Project

• Drilling programme comprises up to 12,000 metres of reverse circulation drilling and 1,500 metres of diamond drilling across approximately 180 drill holes over four months.
• The programme targets upgrading the current Mineral Resource Estimate of 142.2 million tonnes at 363 ppm U₃O₈ for 113.7 million pounds, with approximately 50% currently classified as Inferred Resources.
• Upgraded resource estimate will support a Pre-Feasibility Study scheduled for completion in the second half of 2026, examining production potential of approximately 3 million pounds per annum of U₃O₈.
• Processing studies underway include a two-stage leach process to reduce acid consumption and a modified downstream process designed to eliminate solvent extraction.
• Drilling follows the restart of production at Lotus's Kayelekera Mine in Malawi in August 2025, which was completed on time and on budget.

Lotus Resources Limited (ASX:LOT) is an Africa-focused uranium producer with operations and development projects in Malawi and Botswana. The company holds an 85% interest in the Kayelekera Uranium Mine in Malawi and 100% ownership of the Letlhakane Uranium Project in Botswana. Kayelekera restarted production in August 2025 and previously operated between 2009 and 2014, producing approximately 11 million pounds of uranium. The company's total mineral resource inventory stands at 191.6 million tonnes containing 164.8 million pounds of U₃O₈.

Resource Infill Drilling Programme Commencement and Objectives

One reverse circulation rig has been mobilised to the Letlhakane site, with a diamond drill rig to follow. The programme will run for approximately four months in two phases, separated by seasonal rains expected between November 2025 and March 2026. The drilling focuses on the Gorgon and Serule West areas, which contain the majority of the project's Inferred Mineral Resources.

The programme will reduce drill spacing from 400-metre centres to 200-metre centres at Gorgon West and from 200-metre centres to 100-metre centres at Serule West. These tighter drill patterns are designed to convert Inferred Resources to Indicated and Measured categories, which carry higher geological confidence. Six additional drill holes are planned at Maratobolo on the western margin of the project.

Drill hole locations have been determined using pit optimisation work conducted by SnowdenOptiro. The drilling will also provide metallurgical samples for ongoing test work related to processing and extraction methods.

Managing Director Greg Bittar stated:

"We are finalising the mining and metallurgical trade-off studies and have now commenced a further drilling campaign to upgrade Letlhakane's MRE of 113.7Mlb grading 363ppm U₃O₈."

Mineral Resource Upgrade Supporting Pre-Feasibility Study

The current Mineral Resource Estimate of 113.7 million pounds at 363 ppm U₃O₈ is split approximately evenly between Indicated and Inferred classifications. The infill drilling programme aims to increase the proportion of higher-confidence Indicated and Measured Resources. Resources in these categories are typically required for detailed feasibility studies and project financing.

The upgraded resource estimate will be incorporated into a Pre-Feasibility Study targeted for completion in the second half of 2026. This study will provide detailed analysis of mining methods, processing routes, infrastructure requirements, and capital costs. A previous scoping study indicated production potential of approximately 3 million pounds per annum of U₃O₈.

Letlhakane's resource base consists of 71.6 million tonnes of Indicated Resources at 360 ppm containing 56.8 million pounds, and 70.6 million tonnes of Inferred Resources at 366 ppm containing 56.9 million pounds. The company has stated that upgrading the resource classification is expected to support project economics and development assessments.

Processing and Mining Trade-Off Studies Advancement

Lotus is conducting trade-off studies on processing optimisation alongside the drilling campaign. The processing work examines a two-stage leach process designed to minimise acid consumption during uranium extraction. Acid consumption represents a significant operating cost in conventional uranium processing operations.

The company is also evaluating a modified downstream processing approach that aims to eliminate solvent extraction steps. Traditional uranium processing uses solvent extraction to purify uranium from leach solutions. The alternative approach under investigation is designed to control impurities through different separation methods whilst potentially simplifying the processing flowsheet.

Mining trade-off studies are examining extraction methods appropriate for Letlhakane's geology and resource distribution. Factors under review include mining equipment selection, waste-to-ore ratios, and mining sequencing.

Greg Bittar commented:

"Letlhakane has the potential to become a significant uranium operation in a stronger, long-term uranium price environment and combined with production from our Kayelekera project, positions Lotus to be a globally significant long-term U₃O₈ producer."

Next Steps

The four-month drilling campaign is expected to deliver an upgraded Mineral Resource Estimate with increased confidence in resource classification. Processing and mining trade-off studies are being finalised to provide technical inputs for the Pre-Feasibility Study. The company has scheduled completion of the Pre-Feasibility Study for the second half of 2026. Kayelekera Mine continues its production ramp-up following the August 2025 restart.

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