Lotus Resources Limited referred to its announcement on 24 April 2020 regarding the recent lodgement of notices under sections 203D and 249D of the Corporations Act (Requisition Notices) by entities associated with Mr. Grant Davey (former consultant to the company) and Mr. Ben Kay (director of Lotus' former broker BW Equities) (Requisitioning Shareholders) to requisition a meeting of the company shareholders to remove two of the current directors and replace them with Mr. Davey and one of his associates, Mr. Stuart McKenzie. On 11 April 2020, Mr. Davey requested that himself and Mr. McKenzie be appointed to the Lotus Board, and Mr. Kestell and one of either Mr. Mark Milazzo (non-executive director) or Mr. Simon Andrew (Managing Director) resign.Mr McKenzie is listed as a member of management at Matador Capital on that company's website. Mr. Davey is the sole director of Matador Capital, such that Mr. McKenzie is either an employee or a contractor of a company controlled by Mr. Davey. Accordingly, the Board considers that the Board changes proposed by Mr. Davey on 11 April, and now by the Requisitioning Shareholders in the Requisition Notices, could potentially give Mr. Davey and one of his associates effective control of the Board. On 22 April 2020, Lotus formally made an offer to Mr. Davey (but not Mr. McKenzie) to join the Board subject to the clearing up of some matters the Board had requested Mr. Davey resolve or explain, including confirmation of Mr. Kestell's stake in Kayelekera Resources Pty Ltd. (formerly Chichewa Resources Pty Ltd). Mr. Davey rejected this offer on 23 April 2020 and the matters remain unresolved and unexplained. As announced on 24 April 2020, the Company has terminated Mr. Davey's consultancy agreement with the Company. However, the Company continues to have access to consultants and technical experts with relevant expertise in the uranium sector and Africa, such that the Company continues to be able to progress the Kayelekera Project and properly supervise the in country operations in all respects. The Board also notes that Mr. Milazzo has significant uranium mining experience including 9 years at the Olympic Dam mine where he held various positions including as Underground Manager, during the initial mine and plant construction and commissioning, and General Manager, during a major expansion in the mid 1990s.