LOTUS Resources Updates Production Timeline and Supply Chain Status

• Sulphuric acid deliveries scheduled to support production ramp-up; on-site acid plant commissioning remains on track for March 2026
• Steady-state uranium production of 200,000lbs per month now forecast for Q2 2026 due to acid supply constraints
• First product shipment expected in Q2 2026 pending converter qualification results in February 2026
• 90% of 2026 contracted commitments (1 million lbs) are for second half deliveries; term price at US$87/lb at end of December 2025
• Cash balance of A$56.2 million plus US$10 million restricted cash; A$7.2 million equipment finance facility drawn post-quarter

Lotus Resources Limited (ASX:LOT) is an Africa-focused uranium producer with operations in Malawi and Botswana. The company holds an 85% interest in the Kayelekera Uranium Mine in Malawi and 100% ownership of the Letlhakane Uranium Project in Botswana. Kayelekera restarted production in August 2025 on time and budget. The mine historically produced approximately 11 million lbs of uranium between 2009 and 2014. The company's mineral resources total 75.1 million kg (164.8 million lbs) of uranium across its projects, with ore reserves at Kayelekera of 10.4 million kg (23.0 million lbs).

Sulphuric Acid Supply Chain and Plant Commissioning

LOTUS announced the commencement of a substantial delivery schedule to address sulphuric acid supply logistics at Kayelekera. The company stated that acid supply logistics are reaching levels necessary to achieve ramp-up to steady-state production. Sulphuric acid is used in the uranium extraction process at the mine.

The on-site acid plant remains on schedule for commissioning in March 2026. The company is also working to mitigate supply risks for other reagents, including sulphur for the acid plant. Once operational, the acid plant will reduce dependence on external acid suppliers.

Managing Director Greg Bittar stated:

"Resolving the acid supply chain logistics and progressing other initiatives to more broadly mitigate supply risks of other key reagents including sulphur for the acid plant, allows the focus to return to the ramp up of production."

Production Targets and First Shipment Timing

LOTUS has revised its forecast for achieving full month steady-state production to Q2 2026. While the target of reaching nameplate production during March 2026 remains, acid availability issues are expected to delay achieving full month steady-state uranium production of 200,000lbs per month (2.4 million lbs annually). The company previously targeted March 2026 for reaching this production level.

Product qualification is currently progressing with converters, with results expected in February 2026. Qualification with at least one converter is required to begin the permitting process for the first product shipment. The company now forecasts first shipment to occur in Q2 2026, aligned with the revised steady-state production timeline.

Managing Director Greg Bittar commented:

"While we have made steady operational progress across the mine and plant, the acid supply challenges resulted in delays in ramping up production, and we have adjusted our forecast to achieve full month steady state of 200,000lbs per month to 2Q 2026."

Uranium Sales Contracts and Pricing

LOTUS reported that 90% of its 2026 contracted commitments, totalling 1 million lbs, are scheduled for second half deliveries. The uranium term price increased to US$87/lb at the end of December 2025. The company stated its ongoing focus is on North American power utilities as counterparties.

Future contracts will be heavily weighted towards market-linked pricing, which provides exposure to uranium price movements rather than fixed prices. The company stated it will retain flexibility in the current uranium pricing environment by preserving uncontracted production and building inventories.

This approach allows the company to manage the timing of sales rather than committing all production under contract immediately. The company indicated this strategy aims to capture long-term value while maintaining inventory optionality.

Next Steps and Financial Position

The company's near-term priorities include the March 2026 acid plant commissioning and February 2026 converter qualification results. Achieving full month steady-state production at 200,000lbs per month is targeted for Q2 2026.

LOTUS reported a closing cash balance of A$56.2 million (unaudited), excluding restricted cash of US$10 million. An additional A$7.2 million equipment finance facility was drawn post-quarter, delivering a pro-forma cash balance of A$63.4 million. The company is evaluating additional financing alternatives, including prepayment and inventory financing structures to monetise product during shipment and delivery periods.

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