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ASX Announcement LOTUS RESOURCES LIMITED 28 January 2021 QUARTERLY ACTIVITIES REPORT Quarter Ended 31 December 2020 Lotus Resources Limited ( ASX : LOT ) ( Lotus or the Company ) is pleased to provide its quarterly activities report for the quarter ended 31 December 2020 . HIGHLIGHTS • • • • Completion of a Restart Scoping Study which confirmed the potential for the Kayelekera Project to support a viable long - term uranium operation - Low total initial capital cost of US $ 50 million with initial capital intensity of US $ 21 / lb of annual production . This ranks Kayelekera as one of the lowest capital cost projects positioned to recommence uranium production . Life of mine production of up to 14 years or 23.8Mlbs U3O8 . C1 cash costs of US $ 33 / lb U3O8 and average production of 2.4Mlbs U3O8 per annum during first 5 years . Significant opportunities to reduce costs through upgrading of feed ore , reducing power costs , acid recovery and optimised tailings disposal methods have commenced . Identification of multiple near - mine exploration targets Exploration review identified two priority target areas within easy trucking distance of the mine . No historical drilling has taken place at either of these targets . Multiple updates for the upcoming quarter as project development is further advanced Commence studies into reducing power costs through heat recovery from acid plant , solar and energy storage solutions and potential grid connection . Ore sorting trials on feed ore and stockpile materials . Acid recovery options . Exploration work to assess the rare earths and rutile potential to the north of the Kayelekera Project . As of 31 December 2020 , Lotus had cash of $ 19.5 million ( unaudited ) , inclusive of both restricted and unrestricted cash . The Company complete a $ 5m capital raising during the quarter which was supported by both new and existing shareholders in Australia and North America . info@lotusresources.com.au lotusresources.com.au TEL +61 892782441 ABN : 38 119 992 175 Lvl 1 , 1202 Hay St , West Perth WA 6005 PO BOX 1968 , West Perth WA 6872