Lotus Resources (LOT) Investor Update summary

Operational milestones and production update

• Achieved first yellowcake production at Kayelekera uranium mine, meeting schedule and budget targets for Q3 2025 restart.

• Steady-state production target set at 2.4 million pounds per annum, with ramp-up to 200,000 lbs/month expected in Q1 2026.

• Acid plant rebuild and grid connection projects progressing, with commissioning expected in early and end of 2026, respectively, to deliver cost and environmental benefits.

• Road logistics for product delivery established via Dar es Salaam, with monthly shipments planned.

• Over 90% of current site workforce is Malawian, with ongoing recruitment and training efforts.

Sales, contracts, and market strategy

• Secured offtake agreements with tier one counterparties, covering 35% of production from 2026-2029 at a non-material discount to an $80/lb long-term price, escalating annually.

• 65% of 2026-2029 and all post-2030 production remains uncontracted, providing leverage to future uranium price increases.

• Not pursuing additional fixed-price contracts unless long-term prices rise materially; focus remains on market-linked pricing.

• Intends to avoid spot market sales, instead building inventory at converters and targeting flexible, market-linked contracts.

Cost management and risk mitigation

• All-in sustaining cost at steady state targeted at $45-$46/lb.

• Major costs are in USD, with local labor a minor component; power purchase agreements and forward contracts for key inputs help manage inflation risk.

• Operational schedule incorporates industry lessons and flexibility to mitigate production risks.