Lotus Resources : Drilling expands mineralised footprint at Kayelekera

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ASX Announcement		27 January 2022

DRILLING SUCCESSFULLY EXPANDS MINERALISED FOOTPRINT AT THE

KAYELEKERA URANIUM DEPOSIT

Lotus Resources Limited (ASX: LOT, OTCQB: LTSRF) (Lotus or the Company) is pleased to announce that a 35-holeRC drill program has successfully expanded the known mineralised zone surrounding the Kayelekera Uranium mine (Kayelekera or the Project). Following these positive drill results, the Company has decided to prepare an updated Mineral Resource Estimate to be released later this quarter.

HIGHLIGHTS

• A 35-hole (4,533 metre) RC drill program has successfully expanded the known mineralised zone surrounding the Kayelekera uranium mine. Results include:
• • 2m at 2,541ppm U3O8 from 9m (LRC021)
  • 3m at 829ppm U3O8 from 13m (LRC022)
  • 3m at 919ppm U3O8 from 53m (LRC023)
  • 4m at 539ppm U3O8 from 46m (LRC018)
• Drilling expanded mineralisation by up to 100m from the existing resource drilling
• An updated Mineral Resource Estimate (MRE) update is now planned for the Kayelekera Project and is anticipated for release in 1Q22
• This updated MRE will be used as the basis for a new mine plan in the Definitive Feasibility Study (DFS), which remains on track for mid-2022
• Assay results from the Milenje Rare Earth and regional (Livingstonia) exploration programs are expected later this quarter

Keith Bowes, Managing Director of Lotus, commented:

"2022 is shaping up to be an important year for Lotus as we continue to advance the Kayelekera Uranium Mine to be one of the first uranium assets globally to recommence production as uranium prices continue to strength in the green energy build-up.

"The results from our first uranium exploration program were very encouraging as we were able to confirm that shallow mineralisation does extend outside of the existing pit shells. This will likely have a positive impact on the existing Mineral Resource, which we plan to update later this quarter. Most importantly, any increased tonnes have the potential to extend the life-of-mine production in the Definitive Feasibility Study, which remains on track to be released in mid- 2022.

"In addition to this brownfield drilling, exploration results from the Milenje Hill rare earth prospect and the Livingstonia uranium deposit are expected shortly. Drilling has also recommenced at the previously untested Chilumba prospect to the north of Livingstonia"

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Figure 1: Drilling at Kayelekera

Kayelekera resource expansion drilling

During September 2021, Lotus commenced its inaugural uranium exploration drill program at the Kayelekera mine site. The program consisted of 4,533 metres in 35 reverse circulation (RC) drillholes, targeting areas peripheral to the existing Mineral Resource to test the margins of the resource estimate for further extensions, together with limited exploratory testing of radiometric anomalies located within 3km of the existing processing facility.

The drilling was caried out by Thompson Drilling Lda (Mozambique) with downhole radiometric logging carried out by experienced local contractors under the supervision of Lotus geologists. Mineralised intervals, defined by a 200ppm U3O8 cut off over a minimum thickness of 1m, were selected for sampling. These samples were analysed for uranium by ALS Laboratories in Johannesburg.

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The focus of the current RC program was the southern and eastern margins of the known resource. The holes completed in these locations were designed to either define extensional mineralisation or increase the existing resource classification (Figure 1). The best results of 2m grading 2,541ppm U3O8 and 3m grading 829ppm U3O8 are located on the eastern edge of the mineralised system.

A total of eight holes were also drilled at the Kayelekera South prospect, which is located approximately two kilometres south of the current Kayelekera pit. The area comprises several airborne radiometric anomalies. In the Target 1 area, drillhole LRC033 successfully intersected 2m grading 817ppm U3O8 from a depth of 28m. This drillhole represents the first intersection of significant uranium mineralisation outside the known mineral resource area.

Following these results the Company is planning on preparing a Mineral Resource upgrade which is anticipated to be completed during 1Q2022. The updated mineral resource will be used for the updated mine plan to be incorporated with the Definitive Feasibility Study, which remains on track to be released in mid-2022.

Significant results from the Kayelekera exploration program are listed in Table 1 below, with the location of these holes highlighted in Image 1.

Table 1: Kayelekera Significant Drill Intersections

Hole ID	Easting	Northing	RL	Depth	From	To	True	U	U	U3O8*
				(m)	(m)	(m)	Thickness	(ppm)	(%)	(ppm)
							(m)
LRC012	576730	8895913	883	100	3	5	2	481	0.05	567
includes					4	5	1	506	0.05	597
LRC015	576611	8895760	885	121	10	11	1	551	0.06	650
LRC018	576402	8895639	922	139	46	50	4	457	0.05	539
includes					48	50	2	596	0.06	702

LRC020	576402	8895639	922	139	45	46		1	558	0.06	658
LRC021	576664	8896006	893	52	9	11		2	2,155	0.22	2,541
LRC022	576709	8895962	894	70	13	16		3	703	0.07	829
LRC023	576299	8895604	939	142	53	56		3	780	0.08	919
includes					53	55		2	954	0.10	1,124
LRC025	576020	8895648	968	169	52	54		2	372	0.04	438
and					122	123		1	1,480	0.15	1,745
LRC027	576317	8895697	931	130	61	68		7	413	0.04	488
includes					62	63		1	522	0.05	616
and					65	67		2	587	0.06	692
LRC029	575829	8895733	968	145	111	112		1	604	0.06	712
LRC030	575671	8895859	960	145	84	86		2	481	0.05	567
and					92	94		2	458	0.05	540
includes					92	93		1	532	0.05	627
LRC033	575895	8894045	977	166	28	30		2	693	0.07	817
includes					28	29		1	1,010	0.10	1,191

* calculated U3O8

Note: combined reporting criteria of minimum thickness 1m at 200ppmU cut off

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Image 1: Drillhole Location Plan

Competent Persons' Statements

The information in this document that relates to Exploration Data is based on information provided by Mr Alfred Gillman. Mr. Gillman is a Fellow and Chartered Professional of the Australian Institute of Mining and Metallurgy (AUSIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserve. Mr. Gillman consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears.

This announcement has been authorised for release by the Company's board of directors.

For further information, contact:
Keith Bowes	Adam Kiley
Managing Director	Business Development
T: [phone]	T: [phone]

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ABOUT LOTUS

Lotus Resources Limited (ASX: LOT, OTCQB: LTSRF) owns an 85% interest in the Kayelekera Uranium Project in Malawi. The Project hosts a current resource of 37.5Mlbs U3O8 (see table below), and historically produced ~11MIb of uranium between 2009 and 2014. The Company completed a positive Restart Study1 which demonstrated that Kayelekera can support a viable long-term operation and has the potential to be one of the first uranium projects to recommence production in the future.

Kayelekera Mineral Resource Estimate - March 20201

	Category		Mt	Grade	U3O8	U3O8
		(U3O8 ppm)	(M kg)	(M lbs)
	Measured	0.7	1,010	0.7	1.5
	Measured - RoM Stockpile2	1.6	760	1.2	2.6
	Indicated	18.7	660	12.3	27.1
	Inferred	3.7	590	2.2	4.8
	Total	24.6	660	16.3	36.0
	Inferred - LG Stockpiles3	2.4	290	0.7	1.5
	Total All Materials	27.1	630	17.0	37.5

For more information, visit www.lotusresources.com.au

1. See ASX announcement dated 26 March 2020. Lotus confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 26 March 2020 and that all material assumptions and technical parameters underpinning the Mineral Resource estimate in that announcement continue to apply and have not materially changed.
2. RoM stockpile has been mined and are located near mill facility.
3. Medium-gradestockpiles have been mined and placed on the medium-grade stockpile and are considered potentially feasible for blending or beneficiation, with studies planned to further assess this optionality.