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ASX Announcement LOTUS RESOURCES LIMITED 29 October 2021 QUARTERLY ACTIVITIES REPORT Quarter Ended 30 September 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 September 2021 regarding the advancement of the Company's Kayelekera Uranium Project ( Kayelekera or the Project ) in Malawi . HIGHLIGHTS • • • • • • • • Commenced a Definitive Feasibility Study ( DFS or the Study ) to assess the recommencement of production at the Kayelekera Uranium Project . The Study is expected to be completed by mid- 2022 The second phase of ore sorting testwork further improved the initial strong results ( ASX announcement 5th July 2021 ) , with higher recoveries achieved when combining sensors ( > 90 % uranium recovery ) In line with the first round of results , grades can be increased by up to 100 % compared to the feed grade , and improved recoveries were seen with the combined sensors ( 92 % vs 86 % in Phase 1 testwork ) Preliminary results from the technical studies ( specifically power supply and acid recovery ) have already demonstrated potential cost reductions which can be incorporated into the Feasibility Study Uranium exploration continued during the period with drilling focused on the periphery of the existing Kayelekera Resource Exploration commenced at the high - grade Milenje Hills Rare Earth Prospect . Results from this , as well uranium exploration drilling are expected later this year Completed the divestment of the non - core Hylea Cobalt Project to Sunrise Energy Metals Limited ( ASX.SRL ) ( Sunrise ) . The total cash received following the divestment was $ 2.2 million The Company increased its ownership in Kayelekera from 65 % to 85 % ( 15 % Malawi Government ) following a shareholder meeting The Company renewed its Mining and Exploration licences for an additional 15 years • Lotus committed to adopting Environmental , Social and Governance ( ESG ) disclosure and reporting processes in line with recommendations of internationally recognised organisations , including the United Nations 17 Sustainable Development Goals • As at 30 September 2021 , Lotus had cash of $ 29.1 million ( unaudited ) , inclusive of both restricted and unrestricted cash . The cash balance increased by $ 0.8 million in comparison to the previous quarter due to the sale of non - core assets and the conversion of 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