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ASX Announcement LOTUS RESOURCES LIMITED 30 July 2021 QUARTERLY ACTIVITIES REPORT Quarter Ended 30 June 2021 Lotus Resources Limited ( ASX : LOT , OTCQB : LTSRF ) ( Lotus or the Company ) is pleased to provide its quarterly activities report for the quarter ended 30 June 2021 regarding the advancement of the Company's Kayelekera Uranium Project ( Kayelekera or the Project ) in Malawi . HIGHLIGHTS • • • • • • . Ore sorting testwork on ore from the Kayelekera Uranium Project exceeded expectations with uranium grades increasing by up to 100 % compared to the feed grade . • Ore sorting has the potential to significantly improve the Projects overall economics through either increased annual production rates and / or extending the mine life , as well as reducing operating costs . Multiple technical studies ( including ore sorting ) which will form the basis of the Feasibility Study are near completion . The Feasibility Study will commence during August 2021 and is anticipated to be completed by mid - 2022 . ~ 5,000 metre RC drilling program targeting uranium prospects at Kayelekera has commenced – the first exploration drilling program at the Project in more than 15 years . The Company reached agreement to divest its non - core Hylea Cobalt Project to Sunrise Energy Metals Limited ( ASX.SRL ) ( Sunrise ) for a total consideration of $ 2.5 million . A general meeting to approve the acquisition of an additional 20 % of Kayelekera will be held on 30 July 2021 , which on completion , will increase the Company's ownership in Kayelekera to 85 % ( 15 % Malawi Government ) . Listing on the USA based OTC Exchange ( OTCQB : LTSRF ) has been completed , which has increased the geographical diversity of the Company's share register and raised awareness among North American investors . As at 30 June 2021 , Lotus had cash of $ 28.3 million ( unaudited ) , inclusive of both restricted and unrestricted cash . TECHNICAL STUDIES CONTINUE TO ADVANCE PRIOR TO COMMENCING A FEASIBILTY STUDY The Company will commence a Feasibility Study in August 2021 , which is targeted for completion in mid - 2022 . Prior to commencement of the Feasibility Study , the Company will have the results from the selected technical studies identified in the Scoping Study ( ASX announcement 21 October 2020 ) , including : 1. Ore sorting ; 2. Power supply options ; 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