• Production paused due to acid supply disruption and plant repair work
• May production of 73.6k lbs of U3O8, up from 47.3k lbs in April
• Steady-state production expected later in CY2026
• Export logistics and final transport permits progressing
• Funding options and equity initiatives under review

Lotus Resources provides an operational and funding update on the Kayelekera Uranium Mine in Malawi. Production has been temporarily paused due to disruptions in the third-party acid supply chain linked to Middle East geopolitics and ongoing repair work on the acid plant. Prior to this disruption, the mine delivered improved processing plant performance, with May production of 73.6k lbs of U3O8, up from 47.3k lbs in April. The company expects steady-state production later in CY2026. Export logistics arrangements and final transport permitting for uranium shipments continue to progress. However, delays to export permitting and production will impact the company's ability to meet its initial offtake obligations for 2H CY2026. Lotus has obligations to deliver 1.01Mlbs of U3O8 in 2H CY2026. The company maintains a cash balance of US$26 million and has executed a non-binding term sheet with Mercuria Energy Trading S.A. for a marketing agreement and US$30 million inventory prepayment facility. The company is also actively progressing equity and quasi-equity funding options, which remain subject to acid plant commissioning, a clear pathway to sustainable steady-state production, and resolution of 2026 offtake commitments. Lotus requests an extension of its voluntary suspension from the ASX until the earlier of an announcement that a funding option has been finalised and the commencement of normal trading on 16 July 2026.

Steady-state production expected later in CY2026

Lotus is progressing export logistics and funding options, with a potential first shipment in September 2026.