Lotus Resources Limited Advances Kayelekera Restart, Extends ASX Suspension to Late July

• Acid plant repairs at Kayelekera are complete, with production restart targeted for early August 2026.
• Lotus has restructured a portion of its 2026 delivery obligations, reducing its maximum financial exposure for the year to approximately US$7 million.
• Mercuria Energy Trading has executed a binding commitment letter covering a US$30 million prepayment facility and a 3 million pound marketing agreement.
• The voluntary ASX suspension has been extended to 30 July 2026, or earlier if a funding outcome is confirmed sooner.
• June 2026 quarter production reached 155,900 pounds of U3O8, the highest quarterly total since restart, bringing total output since restart to 332,100 pounds.

Lotus Resources Limited (ASX: LOT, OTCQX: LTSRF) is an Australia-based uranium producer holding an 85% interest in the Kayelekera Uranium Project in Malawi, together with full ownership of the Letlhakane Uranium Project in Botswana. Kayelekera previously produced approximately 11 million pounds of uranium between 2009 and 2014 before being placed on care and maintenance, and Lotus returned the mine to production in August 2025.

Acid Plant Repairs Completed With Kayelekera Production Restart Targeted for Early August 2026

Kayelekera's acid plant was taken offline earlier this year after refractory bricks inside its sulphur furnace failed during commissioning, shortly after the plant had achieved first acid production. Interim repairs to the furnace are now complete, and final commissioning will resume once acid supply on site is replenished.

Deliveries of acid have started arriving at Kayelekera, with approximately 2,000 tonnes expected by the end of July 2026. This volume is expected to be sufficient to restart both the acid plant and the processing plant in early August, providing supply until the acid plant is fully commissioned. Sulphur inventory already on site can support approximately two months of acid plant production.

The acid plant is described in the release as a key strategic project for Kayelekera, expected to deliver improved acid supply security, reduced reagent costs, and reduced exposure to third-party supply disruptions. Steady-state production continues to be targeted for late 2026, at an annualised run rate of approximately 2.4 million pounds of U3O8.

Mercuria Binding Commitment Letter Secured for US$30 Million Prepayment Facility and 3Mlb Marketing Agreement

Lotus and Mercuria Energy Trading have executed a binding commitment letter, replacing the previously announced non-binding term sheet for a marketing agreement and inventory-backed prepayment facility. Definitive documentation is being progressed, with execution anticipated this quarter. The commitment letter remains conditional on completion of legal due diligence, execution of definitive documentation, no material adverse change, and other conditions precedent typical of a facility of this nature.

Upon completion, the arrangement will provide Lotus with a marketing platform covering up to 3 million pounds of U3O8 over 30 months, and an inventory-backed prepayment facility of up to US$30 million.

Separately, Lotus has been engaging with its utility customers and offtake counterparties to reduce near-term delivery obligations and financial settlement exposure. At the time of the suspension announcement, the company had contractual delivery commitments of approximately 1.01 million pounds of U3O8 for the second half of 2026. To date, 0.11 million pounds have been deferred into 2027, 0.20 million pounds are forecast to be delivered in 2026, and 0.70 million pounds remain under negotiation. As a result, Lotus estimates its maximum financial settlement exposure relating to 2026 delivery obligations has reduced to approximately US$7 million, based on an assumed uranium price of US$85 per pound, with continued negotiations seeking to reduce this exposure further.

Voluntary Suspension Extended Pending Completion of Strategic Funding Package

Lotus has requested that the ASX extend the voluntary suspension of its securities under Listing Rule 17.2, until the earlier of the company announcing that a funding option has been finalised, or the commencement of normal trading on 30 July 2026. The company has stated that trading ahead of completion of the funding process could result in the market trading on an uninformed basis, given the uncertainty around the outcome of that process.

Lotus continues to work with financial advisers Gresham Partners and Canaccord Genuity to progress equity and quasi-equity funding options, alongside the Mercuria facility, as part of the broader funding process disclosed on 25 June 2026. These options remain subject to negotiation and finalisation, and the company has stated there is no guarantee that funding arrangements with Mercuria or any alternative source will be successfully concluded.

Lotus has committed to providing the ASX with a further update by 30 July 2026 if a funding option has not been finalised by that date, and will continue to keep the market informed of material developments in accordance with its continuous disclosure obligations.

Milestones and Next Steps

Acid deliveries are expected to be completed by the end of July 2026, ahead of the targeted restart of the acid and processing plants in early August. The voluntary suspension is set to be reviewed by 30 July 2026 at the latest, and definitive documentation on the Mercuria facility is expected to be executed this quarter. Investors will also be watching for the company's June 2026 Quarterly Activities Report, which is expected to include updated metallurgical accounting following the Novamet review, and for confirmation of export permits required for Kayelekera's first uranium shipment of approximately 108,000 pounds.

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