Lotus Resources Limited announced that a 35-hole RC drill program has successfully expanded the known mineralised zone surrounding the Kayelekera Uranium mine (Kayelekera or the Project). Following these positive drill results, the Company has decided to prepare an updated Mineral Resource Estimate to be released later this quarter. During September 2021, Lotus commenced its inaugural uranium exploration drill program at the Kayelekera mine site. The program consisted of 4,533 metres in 35 reverse circulation (RC) drillholes, targeting areas peripheral to the existing Mineral Resource to test the margins of the resource estimate for further extensions, together with limited exploratory testing of radiometric anomalies located within 3km of the existing processing facility. The drilling was caried out by Thompson Drilling Lda (Mozambique) with downhole radiometric logging carried out by experienced local contractors under the supervision of Lotus geologists. Mineralised intervals, defined by a 200ppm U3O8 cut off over a minimum thickness of 1m, were selected for sampling. These samples were analysed for uranium by ALS Laboratories in Johannesburg. The focus of the current RC program was the southern and eastern margins of the known resource. The holes completed in these locations were designed to either define extensional mineralisation or increase the existing resource classification (Figure 1). The best results of 2m grading 2,541ppm U3O8 and 3m grading 829ppm U3O8 are located on the eastern edge of the mineralised system. A total of eight holes were also drilled at the Kayelekera South prospect, which is located approximately two kilometres south of the current Kayelekera pit. The area comprises several airborne radiometric anomalies. In the Target 1 area, drillhole LRC033 successfully intersected 2m grading 817ppm U3O8 from a depth of 28m. This drillhole represents the first intersection of significant uranium mineralisation outside the known mineral resource area. Following these results the Company is planning on preparing a Mineral Resource upgrade which is anticipated to be completed during 1Q2022. The updated mineral resource will be used for the updated mine plan to be incorporated with the Definitive Feasibility Study, which remains on track to be released in mid-2022. The information in this document that relates to Exploration Data is based on information provided by Mr. Alfred Gillman. Mr. Gillman is a Fellow and Chartered Professional of the
Australian Institute of Mining and Metallurgy (AUSIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserve. Mr. Gillman consents to the inclusion in the report of the matters based upon the
information in the form and context in which it appears.