Page 1

ASX Announcement LOTUS RESOURCES LIMITED 30 April 2021 QUARTERLY ACTIVITIES REPORT Quarter Ended 31 March 2021 Lotus Resources Limited ( ASX : LOT , OTCQB : LTSRF ) ( Lotus or the Company ) is pleased to provide its quarterly activities report for the quarter ended 31 March 2021 . HIGHLIGHTS • Lotus announced its intention to acquire the additional 20 % of the Kayelekera Uranium Project . This will see the Company's ownership increase to 85 % . The remaining 15 % is held by the Government of Malawi • • • Under the terms agreed , Lotus will issue 226.4 million Lotus shares to Kayelekera Resources Pty Ltd as consideration for the acquisition of KRPL's interest in Lily Resources Pty Ltd , the incorporated joint venture between Lotus and Kayelekera Resources Pty Ltd A shareholder meeting to approve the Transaction will take place during 2Q21 . Commencement of technical studies to assess operating cost reduction initiatives that will form part of the Feasibility Study Technical studies , including a power assessment study , ore sorting , acid recovery and tailings facility assessment , are under way Discovery of high - grade rare earth oxide ( REO ) mineralisation up to 16 % total REO and 3.4 % critical REO at Milenje Hills Prospect , located 2km from the Kayelekera Uranium Mine Engagement of Environmental , Social and Governance ( ESG ) consultant to assist in related performance measurement , reporting methods and communication strategies • Listing for trade on the OTC Exchange is expected to be completed imminently - aims to increase shareholder diversity as well as global market awareness • • • The Company appointed Mr Keith Bowes as Managing Director - Mr Bowes has over 25 years ' experience and is a highly regarded mining executive , with extensive experience in metallurgy , project development , capital markets and operations The Company also appointed Mr Michael Bowen as Non - Executive Chairman and Mr Mark Hanlon as a Non - Executive Director As at 31 March 2021 , Lotus had cash of $ 29.9 million ( unaudited ) , inclusive of both restricted and unrestricted cash - The Company completed a $ 12.5m capital raising during the Quarter through the placement of 100 million shares at $ 0.125 per share Secondary listing on the OTCQB Exchange to drive North American investor interest 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