LOTUS Secures A$76 Million to Fund Production Ramp-Up at Kayelekera Uranium Mine

• Completed non-underwritten placement of A$76 million at A$2.15 per share with participation from existing and new institutional investors
• Pro-forma unaudited cash position of A$145 million to support ramp-up to steady-state production
• Share Purchase Plan targeting up to A$5 million at same offer price for eligible Australian and New Zealand shareholders
• Funds allocated to acid plant and grid connection projects to optimise operating costs and manage uranium working capital cycle
• First uranium shipment from Kayelekera Mine expected in second quarter of 2026

LOTUS Resources Limited (ASX:LOT) is an Australian-based company focused on uranium production in Africa. The company operates the Kayelekera Uranium Mine in Malawi, in which it holds an 85% interest, and the Letlhakane Uranium Project in Botswana, which it owns entirely. The company restarted production at Kayelekera in August 2025. The mine previously produced approximately 11 million pounds of uranium between 2009 and 2014. LOTUS holds total mineral resources of 75.1 million kilograms (164.8 million pounds) of uranium across its project portfolio.

Completion of A$76 Million Non-Underwritten Placement at A$2.15 Per Share

LOTUS closed its institutional bookbuild with firm commitments for approximately A$76 million through the issue of 35.4 million new ordinary shares at A$2.15 per share. The offer price represents a 25.3% discount to the last closing price of A$2.88 on 4 February 2026. The placement attracted participation from existing shareholders and new institutional investors across domestic and international markets.

Macquarie Capital and Canaccord Genuity acted as joint lead managers, with Barrenjoey Markets and Jett Capital Advisors serving as co-lead managers and Argonaut Securities as co-manager. New shares will rank equally with existing shares and are expected to settle on 11 February 2026, commencing trading on 12 February 2026.

Managing Director Greg Bittar stated:

"We are delighted with the support we have received from existing and new institutional shareholders, which provides us with an enhanced liquidity runway during ramp up to reach steady-state production and expected first shipment in Q2 CY2026. The funding delivers a simplified, more flexible balance sheet, along with funding certainty as Kayelekera progresses to positive cash flow, and we are positioned to maximise exposure to potential uranium price upside."

Share Purchase Plan Targeting Up to A$5 Million at Same Offer Price

LOTUS plans to conduct a non-underwritten Share Purchase Plan (SPP) targeting up to A$5 million, with discretion to accept oversubscriptions. Eligible shareholders with registered addresses in Australia or New Zealand as of 7:00pm Sydney time on 4 February 2026 may apply for up to A$30,000 worth of new shares at A$2.15 per share without brokerage fees.

The SPP offer documents will be dispatched on 16 February 2026, with the offer closing on 2 March 2026. LOTUS will apply for an ASX waiver to conduct the SPP at the stated price. If the waiver is not granted, the SPP will require shareholder approval. Applications exceeding A$5 million may be scaled back at the company's discretion based on factors including shareholding size at the record date and number of participants.

Pro-Forma Cash Position of A$145 Million to Support Production Ramp-Up

The capital raising increases LOTUS's pro-forma unaudited cash position to A$145 million, comprising A$56.2 million in closing cash as of 31 December 2025, A$7.2 million drawn from equipment finance facilities, A$76 million from the placement, and A$5 million anticipated from the SPP.

Proceeds will fund completion of the acid plant and grid connection projects, which are intended to optimise operating costs. The funds will also address the typical 5-6 month uranium working capital cycle between production and revenue recognition. LOTUS is negotiating inventory pre-payment facilities to provide additional liquidity if required.

The company expects to achieve first shipment in the second quarter of 2026 as Kayelekera transitions to steady-state production and positive cash flow.

Next Steps

Settlement of institutional placement shares is scheduled for 11 February 2026, with the Share Purchase Plan closing on 2 March 2026. LOTUS will focus on completing the acid plant and grid connection infrastructure while progressing towards its first uranium shipment in the second quarter of 2026. The company continues to advance Kayelekera operations towards steady-state production levels.

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