LOTUS Resources Delivers First High-Grade Ore at Kayelekera as Production Ramps to Q1 2026

• First high-grade uranium ore delivered to ROM pad following blasting operations that commenced in November 2025
• Mill throughput targeted at 100-130 tonnes per hour (50-65% of nameplate capacity) for January 2026, with steady-state production planned for Q1 2026
• Sulphuric acid contracts secured with three suppliers across South Africa and Zambia with necessary transport permits in place
• On-site acid plant construction on track for Q1 2026 commissioning, expected to mitigate supply constraints and reduce processing costs
• Cash position of A$73.9 million as at 30 November 2025

LOTUS Resources Limited (ASX: LOT, OTCQX: LTSRF) is an Africa-focused uranium producer with an 85% interest in the Kayelekera Uranium Mine in Malawi and 100% ownership of the Letlhakane Uranium Project in Botswana. The company restarted production at Kayelekera in August 2025. The mine produced approximately 11 million pounds of uranium between 2009 and 2014. LOTUS's combined mineral resource inventory totals 75.1 million kilograms of uranium across its projects.

First High-Grade Ore Delivery and Mining Progress

LOTUS delivered first high-grade uranium ore from the Kayelekera open pit to the ROM pad in December 2025. The company conducted its initial blast on 24 November 2025, with subsequent blasting operations moving waste material from both blast and free dig activities. All required mining equipment is now positioned on site.

The mining team has completed pit access ramps providing entry to the first two mining stages. These ramps enable systematic ore extraction from the designated mining areas. The infrastructure allows ore to be transported from the pit to the processing facility.

Mining operations are now supplying ore to the processing circuit. This ore supply supports the planned production ramp-up schedule as the mine transitions from construction to sustained production operations.

Sulphuric Acid Supply Resolution and Acid Plant Status

LOTUS has established sulphuric acid supply contracts with three suppliers, expanding from previous arrangements. The company now sources acid from South Africa in addition to Zambian suppliers, with import permits secured for all three parties. This addresses the supply constraints noted in the company's 4 December 2025 announcement.

Managing Director Greg Bittar stated:

"We continue to progress towards steady-state production at Kayelekera in Q1 CY2026, with the first high-grade ore delivered to the ROM pad. We have put in place plans to address the acid supply constraints, noted earlier this month, by adding to our supplier base and hence we now have greater diversity of both suppliers and countries of origin for sulphuric acid."

Construction of the on-site acid plant remains on schedule for commissioning in Q1 2026. The first delivery of sulphur feedstock is expected to arrive shortly. Once operational, the acid plant is expected to address acid supply constraints and deliver processing cost savings. Sulphuric acid is used in the leaching process to extract uranium from ore.

Production Ramp-Up Timeline to Q1 2026

Production has resumed at Kayelekera following the temporary pause noted in early December. For January 2026, LOTUS is targeting mill throughput of 100-130 tonnes per hour, representing 50-65% of nameplate capacity. The company plans a significant step-up in February 2026, with steady-state production targeted for Q1 2026.

The January throughput level reflects two factors: ramping acid supply volumes and ongoing plant maintenance work.

Mr. Bittar commented:

"With the volume of acid on site and delivery momentum expected to improve through January, production has now restarted. In anticipation of commissioning the acid plant, the first delivery of sulphur is expected to arrive on site shortly."

The company is conducting plant repairs and improvements during this period to support long-term plant reliability and performance. LOTUS reported a cash balance of A$73.9 million as at 30 November 2025.

Next Steps

LOTUS has outlined its near-term operational plan as Kayelekera progresses towards Q1 2026 steady-state production. Immediate activities include increasing acid delivery volumes through January, receiving sulphur supplies for the acid plant, and completing ongoing plant maintenance work. The company plans to step up production significantly in February 2026 before reaching steady-state operations in Q1 2026. The on-site acid plant is scheduled to commence operations during Q1 2026.

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