Lotus Resources Reports February Processing Gains and Commences Acid Plant Commissioning at Kayelekera

• The processing plant ran at 80% utilisation for the second half of February, with the milling rate reaching 65% of steady-state capacity.
• Acid inventory on site is now near storage capacity, supporting the continued production ramp-up ahead of the Q2 2026 target.
• The acid plant, a facility that produces sulphuric acid used in uranium processing, is practically construction-complete, with cold commissioning already underway.
• Preliminary product approval has been received from one western converter, with final acceptance expected shortly.
• First uranium shipment from Kayelekera is on track for Q2 2026, with Lotus working to secure alternative export routes via Beira and Walvis Bay in addition to the preferred route through Dar es Salaam.

Lotus Resources Limited (ASX: LOT, OTCQX: LTSRF) is a Perth-based mining company focused on uranium production in Africa. The company holds an 85% interest in the Kayelekera Uranium Mine in Malawi, which it restarted in August 2025, on time and within budget, after more than a decade on care and maintenance. It also owns 100% of the Letlhakane Uranium Project in Botswana. Kayelekera has a prior production history of roughly 11 million pounds of uranium between 2009 and 2014. Across all its projects, Lotus holds a combined mineral resource base of approximately 164.8 million pounds of uranium.

Production Ramp-Up Progress and Q2 2026 Steady-State Target

Kayelekera's processing plant posted improved performance in February, running at 80% utilisation during the second half of the month. The milling rate reached 65% of the level required for full steady-state output. Mineral recoveries, which represent the share of uranium extracted from the ore, held consistent with the December quarter at 82.1%, and the company expects further improvement from planned operating modifications.

Acid supply is a critical input in uranium processing, and on-site stocks are now close to storage capacity. An ongoing delivery and ordering schedule is in place to maintain supply through the ramp-up period, which the company states is sufficient to support the push to sustained steady-state production in Q2 2026.

Managing Director Greg Bittar commented:

"Progress at Kayelekera during February was pleasing and we are demonstrating continued improvement in plant availability, milling rate and other key processing parameters which positions us for steady-state production in Q2 CY2026."

Steady-state production refers to the mine operating consistently at its full nameplate, or designed, capacity.

Acid Plant Commissioning and Construction Completion

The acid plant is designed to produce sulphuric acid on site from raw sulphur stocks. Construction of the facility is now practically complete, with only minor finishing work on piping and instrumentation remaining. Pressure testing has been successfully completed on several major components, including the waste heat boiler, steam drum, superheater, and associated heat exchange units.

Cold commissioning, which involves starting up individual components to verify they function correctly before a live chemical process begins, is already underway. Third-party testing, including verification supervised by the Government of Malawi, has also been completed.

A dedicated acid plant operations crew has mobilised to site and has been involved in the commissioning planning process. An independent technical expert has been appointed to review commissioning plans and oversee the programme. Hot commissioning, when the plant will operate under actual conditions and produce sulphuric acid for the first time using available sulphur stocks, is scheduled for April.

Product Qualification and Export Logistics Planning

Before Lotus can ship uranium to its contracted buyers, the product must first be formally accepted by a converter, which is a facility that processes uranium ore concentrate (U3O8) into the form required for fuel manufacturing. In early February, the company received preliminary confirmation from one western converter that its initial product sample met the required specification parameters. Lotus is now working with that converter to finalise the target product specification, based on quality improvements made over recent months.

Once an account is established with one converter, the ability to swap product between converters means Lotus gains delivery flexibility across all existing contracts and for future sales. On the logistics side, the preferred export route remains through the port of Dar es Salaam in Tanzania.

Given current pressures on global shipping, Lotus is working with road transport operator Alistair Group and freight forwarder Orano NPS to ensure alternative routes via the ports of Beira and Walvis Bay are available. First shipment from Kayelekera remains on track for Q2 2026.

Outlook

With processing rates improving, acid supply secured, and product qualification approaching its conclusion, the company is targeting steady-state uranium production in Q2 2026. The immediate priorities are completing acid plant hot commissioning in April, receiving final product acceptance from the converter, and dispatching the first uranium shipment from Kayelekera. Bittar noted that the company's recent capital raising "positions the balance sheet for us to complete key capital projects to optimise Kayelekera and will support working capital through product qualification, ramp up and first product delivery" without significant reliance on debt.

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