Lotus Resources Commences Mining Operations at Kayelekera Uranium Facility

• First mining blast completed at Kayelekera open pit following production restart in August 2025
• Existing ore stockpiles outperforming expected grades whilst new mining operations commence
• Company remains on track for steady-state production target of 200,000 lbs of uranium oxide per month by Q1 2026
• Product samples submitted to three Western converters in the United States, Canada, and France
• Delivery of ore from mining operations to run-of-mine pad to commence in coming weeks

Lotus Resources Limited (ASX: LOT) is an Africa-focused uranium producer with operations in Malawi and Botswana. The company holds an 85% interest in the Kayelekera Uranium Mine in Malawi and complete ownership of the Letlhakane Uranium Project in Botswana. Lotus restarted production at Kayelekera in August 2025, on time and on budget. The Kayelekera facility produced approximately 11 million lbs of uranium between 2009 and 2014 before being placed on care and maintenance.

First Mining Blast at Kayelekera Open Pit

Lotus Resources has completed the first blast at the Kayelekera open pit since restarting operations in August 2025. Mining Manager Philippus Schoeman oversaw preparations for the blast, which marks the commencement of mining activities at the facility. The company expects to begin delivering ore from the restarted mining operations to the run-of-mine pad in the coming weeks.

The blast follows three months of operations during which the company has been processing previously mined ore stockpiles. The addition of freshly mined ore will supplement the stockpiled material currently being used in yellowcake production. This transition forms part of the company's plan to progressively increase production at the Malawian facility.

The commencement of mining operations means the company can now draw ore from multiple sources to feed the processing facility. This marks a shift from the initial restart phase, which relied exclusively on stockpiles mined prior to the facility's closure in 2014.

Transition from Stockpile Processing to Run-of-Mine Ore

Since restarting in August 2025, Kayelekera has been processing ore stockpiles from previous mining operations. These stockpiles continue to outperform expected grades.

Managing Director Greg Bittar stated,

"The stockpiles we have been processing continue to outperform our expectations, and the transition to freshly mined ore will support the ramp-up trajectory."

The company will now combine freshly mined ore with stockpile ore to support production ramp-up. This blending approach allows the processing facility to utilise both material sources as operations scale toward the steady-state target. The stockpiles have been located near the mill facility and classified as run-of-mine stockpiles in the company's reserve inventory.

Kayelekera's current mineral resources total 46.3 million lbs of uranium oxide, whilst ore reserves stand at 23.0 million lbs. The facility's processing operations have generated revenue whilst mining operations were being established.

Production Ramp-Up to Steady State Targets

Lotus Resources maintains its target of reaching steady-state production of 200,000 lbs of uranium oxide per month by the first quarter of 2026. This target represents the facility's planned operating capacity following the completion of the ramp-up phase. The company states that the ramp-up to this level remains on track.

The company has submitted product samples to three Western uranium converters for accreditation.

Managing Director Greg Bittar commented:

"The site team's methodical planning and disciplined approach continues to support the momentum we've maintained as we bring Kayelekera back into production, positioning Lotus as a global uranium producer at a very exciting time for the energy sector."

Product accreditation by uranium converters is well advanced, with samples received by all three Western converters in the United States, Canada, and France. Completed accreditation would provide the company with access to multiple converter facilities for its uranium oxide production.

Outlook and Next Steps

The company has completed the first mining blast at Kayelekera and expects to begin delivering freshly mined ore to the processing facility in the coming weeks. The integration of newly mined ore with existing stockpiles will continue as the company works toward its Q1 2026 steady-state production target of 200,000 lbs per month.

Product accreditation with Western converters is progressing, with samples submitted to facilities in the United States, Canada, and France. The company restarted Kayelekera on time and on budget in August 2025, and mining operations have now commenced at the open pit.

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