Lotus Resources Confirms Return to Processing at Kayelekera After Brief Fire-Related Stoppage

• Processing at Kayelekera was suspended on 4 April 2026 following fire damage to two electrical control panels in the mine's drying and packaging area
• Interim engineered replacement panels were successfully installed, enabling production to resume
• Lotus resumed processing within less than two weeks of the initial suspension
• Permanent replacement panels are on order and are expected to be delivered and installed at site in the coming weeks
• The company confirms it remains on track to reach steady-state production at Kayelekera in Q2 CY2026

Lotus Resources Limited (ASX:LOT; OTCQX:LTSRF) is a Perth-based uranium producer with assets in Malawi and Botswana. The company holds an 85% interest in the Kayelekera Uranium Mine in Malawi and fully owns the Letlhakane Uranium Project in Botswana. Lotus restarted production at Kayelekera in August 2025, on time and on budget. The mine historically produced approximately 11 million pounds of uranium between 2009 and 2014. Across all its projects, the company holds total mineral resources of approximately 164.8 million pounds of uranium oxide (U3O8), the standard commercial form of uranium.

Kayelekera Uranium Production Resumption Following Fire Incident

Processing operations at Kayelekera were suspended on 4 April 2026 following fire damage to two electrical control panels in the mine's drying and packaging area. The suspension remained in place while the on-site team assessed the damage and identified the steps required to restore processing.

Upon assessment, the damage was found to be limited to the two electrical control panels. Lotus confirmed that interim engineered replacement panels could be installed using spare components and technical expertise already available at site, without the need to source external parts before work could begin.

Lotus announced the resumption of uranium processing on 17 April 2026, less than two weeks after the initial suspension.

Rapid Response and Equipment Recovery at Drying and Packaging Area

Interim engineered replacement panels were installed in place of the two fire-damaged units. The on-site team assembled and installed these using spare components already held at site, completing the work without waiting on external deliveries.

Managing Director Greg Bittar commented: 

"While this interruption was not ideal, the team has combined its expertise and critical spares on site to quickly alleviate downtime and enable Lotus to resume processing in less than two weeks. New panels are expected to be delivered to site and installed in the coming weeks."

Permanent replacement panels are on order. Once delivered and installed, the site will transition from its current interim configuration to a fully restored state.

Steady-State Production Timeline and Q2 2026 Targets

Production guidance for Kayelekera remains unchanged following the suspension. The company is on track to achieve steady-state production at the mine in Q2 CY2026, covering April through June 2026. Steady-state production refers to the point at which a mine operates at a consistent, planned rate of output, as distinct from the variable output associated with a ramp-up phase.

Kayelekera holds total ore reserves of approximately 23.0 million pounds of uranium oxide, which underpin the mine's current production schedule. Ore reserves are the portion of a mineral resource that has been assessed as economically extractable under prevailing conditions.

The mine's broader mineral resource base, encompassing all resource categories, stands at approximately 46.3 million pounds of uranium oxide, representing a longer-term inventory beyond the current ore reserve position.

Conclusion

Kayelekera has returned to processing operations following the installation of interim replacement panels. Permanent replacements are on order and are expected to be delivered and installed in the coming weeks, bringing the facility to a fully restored state. Lotus' target of achieving steady-state production at Kayelekera in Q2 CY2026 remains in place. Further production details, including data covering the period of the suspension and the restart, will be available in the March 2026 Quarterly Report, due for release later this month.

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