Lotus Resources Commences Uranium Production at Kayelekera Mine

• First yellowcake produced at Kayelekera mine, marking restart completion on schedule and within budget
• Qualification samples to be sent to three Western uranium converters ahead of first shipments in late 2025
• Production target of 200,000 pounds per month by Q1 2026, representing 2.4 million pounds annually
• Binding sales agreements secured for up to 3.8 million pounds of uranium starting 2026 with North American utilities
• First uranium production at Kayelekera since facility was placed on care and maintenance in 2014

Lotus Resources Limited (ASX:LOT) is an Africa-focused uranium company with an 85% interest in the Kayelekera Uranium Project in Malawi and 100% ownership of the Letlhakane Uranium Project in Botswana. The company works with local communities to provide economic impact in its operating regions whilst focusing on shareholder value creation.

Kayelekera previously produced approximately 11 million pounds of uranium between 2009 and 2014 before being placed on care and maintenance by its previous owner. Lotus completed a restart study that established an ore reserve of 23 million pounds of uranium oxide and confirmed the project's commercial viability under current operating parameters.

Production Milestone Achievement

Lotus has completed the commissioning phase of its Kayelekera processing plant with the production of first yellowcake drummed at the facility. The restart was achieved within the Q3 2025 timeline established at the beginning of the accelerated restart programme. Managing Director Greg Bittar stated the milestone was completed "on budget and within the timeline of Q3 CY25 targeted at the beginning of Kayelekera's accelerated restart."

The company will commence sending yellowcake samples to converters for qualification, with samples expected to be dispatched in the coming weeks. These qualification processes are standard industry requirements for establishing new supply relationships with uranium converters. The qualification and account reopening processes will run concurrent with production ramp-up activities.

Lotus will continue building inventory during the qualification period in preparation for first uranium shipments scheduled for later in 2025. The company has established binding sale arrangements for uranium produced at Kayelekera, including contracts with three leading North American power utilities for deliveries starting in 2026.

Production Ramp-Up and Market Preparation

The facility targets steady-state production of 200,000 pounds per month by Q1 2026, representing annual production capacity of 2.4 million pounds of uranium oxide. This production level reflects the facility's designed capacity based on the restart study parameters. The ramp-up schedule allows for operational optimisation whilst building product inventory.

Converter qualification represents the next operational phase, with samples being prepared for three Western uranium conversion facilities. These qualification processes typically require several months to complete and involve testing product specifications against converter requirements. Successful qualification enables commercial shipments and revenue generation from uranium sales.

The company has secured binding sales arrangements covering between 3.5 million and 3.8 million pounds of uranium production from Kayelekera starting in 2026. These agreements include contracts with three North American power utilities, providing revenue visibility for initial production years. First commercial shipments from the facility are planned for late 2025 following completion of qualification processes.

Asset Portfolio and Resource Base

Kayelekera hosts total mineral resources of 46.3 million pounds of uranium across measured, indicated and inferred categories. The facility includes existing processing plant infrastructure, tailings facilities and supporting infrastructure from previous operations. Proven and probable ore reserves total 23 million pounds of uranium oxide based on the restart study completed in 2022.

The Letlhakane Project in Botswana contains mineral resources of 113.7 million pounds of uranium across indicated and inferred categories. Lotus holds 100% ownership of this development project. The company's total uranium mineral resources across all projects amount to 164.8 million pounds.

Additional mineral resources include the Livingstonia project with 4.8 million pounds of inferred uranium resources. The combined portfolio provides Lotus with multiple uranium assets across two African jurisdictions. Resource estimates are based on JORC Code standards and were prepared by qualified competent persons.

Outlook and Next Steps

Lotus has completed the transition from development to production company with first yellowcake at Kayelekera. Immediate priorities include converter qualification processes, production ramp-up to steady-state levels, and first commercial shipments in late 2025. The company will focus on achieving the Q1 2026 target of 200,000 pounds monthly production whilst building operational experience and inventory levels.

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