Lotus Resources : Results of drilling program at Livingstonia prospect

ASX Announcement

12 April 2022

DRILLING CONFIRMS POTENTIAL FOR SATELLITE DEPOSIT

AT LIVINGSTONIA

Lotus Resources Limited (ASX: LOT, OTCQB: LTSRF)(Lotus or the Company) is pleased to announce the results of the reverse circulation (RC) drilling program at its Livingstonia prospect, located approximately 90km from the Kayelekera uranium mine (Kayelekera or the Project) in Malawi. Whilst not part of the current Definitive Feasibility Study (DFS), Livingstonia has the potential to become a satellite deposit in the future.

HIGHLIGHTS

•  A 29-hole (3,395 metre) RC drill program has been completed at the Livingstonia prospect, located 90km from the Kayelekera uranium mine

•  The program was designed to convert the historic U3O8 Mineral Resource estimate (JORC 2004) into a JORC 2012 compliant Mineral Resource and to test potential extensions

•  Results include:

  • - 3m at 733 ppm U3O8 from 94m (LIV003)

  • - 4m at 983ppm U3O8 from 87m (LIV007)

  • - 4m at 636ppm U3O8 from 74m (LIV011)

  • - 6m at 379ppm U3O8 from 89m (LIV005)

•  Drilling expanded mineralisation by up to 250 metres north of the existing resource limits

•  An updated Mineral Resource estimate for Livingstonia is anticipated for release later this quarter

Keith Bowes, Managing Director of Lotus, commented:

"The acquisition of the Livingstonia prospect last year consolidated the Company's ownership of our southern project area, a known uranium mineralised district that has had very limited exploration work completed over the years.

The strategy at Livingstonia has been to complete a small drilling program to confirm historical results and test extensions around the known mineralised area in order to enable preparation of a JORC (2012) compliant Mineral Resource estimate. We believe the drilling has been successful and an updated Mineral Resource estimate is now planned for completion in the June quarter.

Whilst Livingstonia is not included in the current Definitive Feasibility Study, we believe there is potential for it to become a satellite operation in the future once the Kayelekera resource has been depleted, especially if similar success with ore sorting can be achieved."

LIVINGSTONIA RC DRILLING PROGRAM

The Livingstonia exploration tenements are located in northern Malawi, approximately 90km southeast of the Company's Kayelekera uranium mine (Figure 1). Combined with the Company's Chilumba tenements, this region covers 300km2.

Figure 1: Lotus Tenement Areas

In December 2021, Lotus commenced its inaugural uranium exploration drill program at Livingstonia. The program consisted of 3,395 metres in 29 vertical RC drill holes, targeting areas both within and peripheral to the existing Mineral Resource to test the margins of the resource estimate for further extensions.

The drilling was caried out by Thompson Drilling Lda (Mozambique) with downhole radiometric (gamma) logging undertaken by experienced local contractors under the supervision of Lotus geologists.

All downhole gamma data is tabled in Appendix 1. Selected mineralised intervals were analysed for uranium by ALS Laboratories in Johannesburg (Table 1).

The focus of the RC program was on the northern margins and north-eastern extensions of the known mineralised trend. The holes completed in these locations were designed to either define extensional mineralisation or increase the confidence in the existing resource classification (Figure 2).

The best results of 4m grading 983 ppm U3O8 and 4m grading 636ppm U3O8 are located to the north of the existing resource limits and extend the previous resource limits by up to 250m.

Several holes were completed within the existing resource limits in order to validate the historic resource. Following these results, the Company intends to prepare an updated Mineral Resource estimate, which is anticipated to be completed during 2Q2022.

Figure 2: Drill hole locationTable 1: Livingstonia Significant Drill Intersections

HoleID	Easting	Northing	Elevation	Depth (m)	From (m)	To (m)	Interval (m)	U (ppm)	U3O8 (ppm)*
LIV002	624198	8827250	1138	139	102.0	104.0	2.0	235	276
LIV003	624218	8827233	1139	124	94.0	97.0	3.0	733	862
LIV003	101.0	103.0	2.0	564	664
LIV005	624724	8827332	1181	109	89.0	95.0	6.0	379	446
LIV006	624649	8827399	1185	112	95.0	97.0	2.0	881	1036
LIV007	624636	8827446	1187	109	87.0	91.0	4.0	983	1156
LIV008	624695	8827448	1190	103	71.0	73.0	2.0	600	706
LIV008	75.0	78.0	3.0	289	340
LIV011	624449	8827646	1160	88	74.0	78.0	4.0	636	748
LIV012	624403	8827615	75.0	78.0	3.0	295	347
LIV012	81.0	83.0	2.0	410	482
LIV013	624382	8827571	1148	130	76.0	78.0	2.0	279	328

* calculated U3O8

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

Competent Person's Statement

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 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 Reserves. 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]

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 46.3Mlbs 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.

Kayelekera Mineral Resource Estimate - February 20221

Category	Mt	Grade (U3O8 ppm)	U3O8 (M kg)	U3O8 (M lbs)
Measured 0.9 830 0.7 1.6
Measured - RoM Stockpile2 1.6 760 1.2 2.6
Indicated 29.3 510 15.1 33.2
Inferred 8.3 410 3.4 7.4
Total 40.1 510 20.4 44.8
Inferred - LG Stockpiles3 2.4 290 0.7 1.5
Total All Materials 42.5 500 21.1 46.3

For more information, visitwww.lotusresources.com.au

1 See ASX announcement dated 15 February 2022. Lotus confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 15 February 2022 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 is located near mill facility.

• 3 Medium-grade stockpiles 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.