Lotus Resources Maintains Q1 2026 Steady State Target at Kayelekera

• Processing plant achieved 138 tonnes per hour average throughput (70% of nameplate capacity) during a 15-day continuous operation period in November, with peak hourly throughput of 172 tonnes per hour (88% of nameplate capacity)
• Steady state production level targeted for Q1 2026, with operations impacted by sulphuric acid supply constraints
• Acid plant commissioning expected to commence in early 2026 to address supply chain issues
• Preliminary November recovery rates averaged approximately 83%, compared to targeted steady state recovery of 86.7%
• Cash position of A$73.9 million as at 30 November 2025

Lotus Resources Limited (ASX:LOT) is an Africa-focused uranium producer operating significant mining assets across the continent. The company holds an 85% interest in the Kayelekera Uranium Mine in Malawi and complete ownership of the Letlhakane Uranium Project in Botswana. Kayelekera, which historically produced approximately 11 million pounds of uranium between 2009 and 2014, was successfully restarted in August 2025 on time and within budget. The company's combined mineral resource base totals 191.6 million tonnes containing 75.1 million kilograms of uranium across all its projects.

Production Ramp-Up Progress and Q1 2026 Steady State Target

The Kayelekera Mine continues production ramp-up towards steady state levels targeted for Q1 2026. During a 15-day continuous operation period in November, the processing plant achieved an average milling throughput rate of 138 tonnes per hour (70% of nameplate capacity). The plant reached peak hourly throughput of 172 tonnes per hour during this period (88% of nameplate capacity).

The plant achieved uptime of 18.2 hours per day throughout the 15-day period. The company used shutdown periods caused by acid supply constraints to address routine commissioning items, implement plant optimisation initiatives, and conduct regular maintenance.

Preliminary November recovery rates averaged approximately 83%, compared to the targeted steady state recovery of 86.7%. Managing Director Greg Bittar commented that "Production for the planned operating time in November has been very pleasing and provides us with the confidence that nameplate throughput levels and other key production parameters can be achieved." Current operational focus includes mining activities (which commenced in early November), embedding standard operating procedures across the processing plant and laboratories, and preparing for first product shipment.

Sulphuric Acid Supply Challenges and Acid Plant Solution

November and early December processing has been constrained by acid availability, which has impacted plant availability. The sulphuric acid supply issues resulted from production challenges at the primary supplier in Zambia, with South Africa serving as a secondary source. The company has increased the number of contracted suppliers and is now sourcing additional supplies from South Africa.

The company's acid plant rebuild project is scheduled to address these supply constraints. Commissioning is expected to commence in early 2026, with the acid plant expected to commence operating in Q1 2026. The facility will enable production of sulphuric acid from sulphur, which is more reliably supplied (transported more easily and more broadly available). The change will require significantly lower tonnage and volumes, reducing truck movements.

The acid plant rebuild remains on schedule for commissioning in early 2026. Once operational, the facility will produce sulphuric acid on site from elemental sulphur rather than relying on external suppliers.

November Plant Performance and Product Qualification Status

The processing plant operated continuously for 15 days in November, achieving an average milling throughput rate of 138 tonnes per hour (70% of nameplate capacity) and peak hourly throughput of 172 tonnes per hour (88% of nameplate capacity). The plant maintained uptime of 18.2 hours per day during this period. Preliminary recovery for November averaged approximately 83%, compared to targeted steady state recovery of 86.7%. Final recovery figures are still to be reconciled.

Product qualification is progressing with uranium converters. The first shipment of product is now expected to occur in late Q1 2026, with full qualification with at least one converter expected early in 2026.

Managing Director Greg Bittar stated:

"We also continue to work with the converters and look forward to our first converter account being opened which we expect in early 2026. This then allows the final preparations for despatch of inventory from site."

Mining activities commenced in early November. The company is currently embedding standard operating procedures across the processing plant and laboratories whilst preparing for the first product shipment. The company reported a cash position of A$73.9 million as at 30 November 2025.

Outlook

Lotus Resources maintains its target of reaching steady state production at Kayelekera by the end of Q1 2026. The acid plant commissioning is scheduled to commence in early 2026 and is expected to address current sulphuric acid supply constraints. The first product shipment is scheduled for late Q1 2026, with full qualification with at least one converter expected early in 2026. The company reported a cash position of A$73.9 million as at 30 November 2025.

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