Lotus Resources Resumes Acid Production and Uranium Processing at Kayelekera

• Acid production and uranium processing have both resumed at the Kayelekera Uranium Mine in Malawi
• The suspension in June 2026 followed a third party acid supply disruption and a refractory brick failure in the sulphur furnace
• Interim repairs to the furnace are complete
• Acid supply has been replenished, with sufficient sulphur inventory now held onsite for the remainder of CY2026
• Managing Director Greg Bittar said drumming of uranium is expected to follow shortly

Lotus Resources Limited (ASX:LOT, OTCQX:LTSRF) is an Australia based uranium producer with mineral resources held across two countries in Africa. The company holds an 85% interest in the Kayelekera Uranium Project in Malawi, which hosts a defined uranium resource.

Acid Plant and Uranium Processing Operations Successfully Restarted at Kayelekera Following June 2026 Suspension

Lotus Resources has confirmed that both the acid plant and the processing plant at Kayelekera are operating again. Processing had been suspended in June 2026 after third party acid supply was disrupted and commissioning of the onsite acid plant was affected by a partial failure of refractory bricks within the sulphur furnace.

The acid plant produces sulphuric acid onsite, which is used in the processing plant to extract uranium from the mined ore. Because this step precedes processing, the plant's output is directly linked to the acid plant's operation.

With both plants restarted, Kayelekera resumed the processing sequence that was interrupted in June 2026.

Interim Sulphur Furnace Refractory Repairs Completed With Acid Supply Replenished and Onsite Inventory Secured

The refractory bricks within the sulphur furnace have been repaired on an interim basis, addressing the issue that had affected acid plant commissioning. Acid supply has also been replenished following the earlier third party disruption.

Lotus has confirmed that sufficient sulphur inventory is held onsite, with supply visibility extending through the remainder of CY2026. Sulphur is the raw material used in the onsite production of acid.

Managing Director Greg Bittar said:

"The acid plant, with sufficient sulphur inventory onsite and supply visibility for the remainder of CY2026, is a key strategic project for Kayelekera and will deliver improved acid supply security and significantly reduced reagent costs."

Processing Optimisation Plan and Critical Maintenance Executed During Downtime Supporting Steady State Production

During the suspension, the Kayelekera team progressed a processing optimisation plan and completed critical maintenance work at the site.

This maintenance and optimisation work was carried out while the acid and processing plants were offline, ahead of the restart now announced.

Mr Bittar said:

"We are very pleased to see the restart of processing and with this, the drumming of uranium to follow shortly. Whilst production was paused, the team continued to execute the processing optimisation plan, as well as completing critical maintenance, which will support the plant reaching steady state levels."

Milestones and Next Steps

Acid production and uranium processing have resumed at Kayelekera following the completion of interim furnace repairs and the replenishment of acid supply. Onsite sulphur inventory is secured for the remainder of CY2026. Lotus has indicated that drumming of uranium is expected to follow shortly, with the processing optimisation and maintenance work completed during the suspension intended to support the plant in reaching steady state production.

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