Investor Presentation March 2020 lotusresources.com.au ASX: LOT - PowerPoint PPT Presentation

Investor Presentation March 2020 lotusresources.com.au ASX: LOT

Disclaimer IMPORTANT NOTICES Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking information, including risks associated with investments in private and publicly listed companies such as the Company; risks associated with general economic conditions; the risk that further funding may be required but unavailable for the ongoing development of the Company’s projects or future acquisitions; changes in government regulations, policies or legislation; unforeseen expenses; fluctuations in commodity prices; fluctuation in exchange rates; litigation risk; restrictions on the repatriation of earnings by the Company’s subsidiaries; the inherent risks and dangers of mining exploration and operations in general; risk of continued negative operating cashflow; the possibility that required permits may not be obtained; environmental risks; uncertainty in the estimation of mineral resources and mineral reserves; general risks associated with the feasibility and development of each of the Company’s projects; foreign investment risks in Australia; changes in laws or regulations; future actions by government; breach of any of the contracts through which the Company holds property rights; defects in or challenges to the Company’s property interests; uninsured hazards; disruptions to the Company’s supplies or service providers; reliance on key personnel and retention of key employees. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management of the Company made in light of their experience and their perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. The Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable. Assumptions have been made regarding, among other things: the Company’s ability to carry on its future exploration, development and production activities, the timely receipt of required approvals, the price of cobalt, nickel, platinum and scandium and base metals, the ability of the Company to operate in a safe, efficient and effective manner and the ability of the Company to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause The Company results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. NO LIABILITY/SUMMARY INFORMATION Lotus Resources has prepared the Presentation Materials based on information available to it at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions contained in the Presentation Materials. To the maximum extent permitted by law, the Company, its related bodies corporate (as that term is defined in the Corporations Act 2001 (Commonwealth of Australia)) and the officers, directors, employees, advisers and agents of those entities do not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the Presentation Materials or its contents or otherwise arising in connection with it. COMPETENT PERSONS STATEMENT The information in this document that relates to Exploration Data is based on information provided by Mr. Neil Inwood, who is a Fellow of the AUSIMM. Mr Inwood is a consulting geologist and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as Competent Persons as defined in the 2012 edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr. Inwood has consented to the inclusion of this information in this document in the form and context in which it appears. An entity associated with Mr Inwood has shares in Lotus Resources Ltd. JORC 2012 COMPLIANCE For information referring to the exploration results and Resources in this document, refer to announcements dated 26/3/202 and 24/6/2019. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources, Exploration Target or Ore Reserves that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements; and that the information in the announcement relating to exploration results is based upon, and fairly represents the information and supporting documentation prepared by the named Competent Persons. lotusresources.com.au March 2020 ASX: LOT | 2

Introduction UNIQUE OPPORTUNITY FOR A LOW-COST, RAPID RE-START AT KAYELEKERA Opportunity to US$200m capex Kayelekera is a fully Feasibility study restart production spent on permitted uranium mine update in quickly and cheaply infrastructure project Q4 2020 Significant exploration Malawi government Project team with track Uranium price potential to extend fully aligned to support record of redeveloping needs to increase mine life Kayelekera uranium mines to meet demand lotusresources.com.au March 2020 ASX: LOT | 3

Kayelekera Uranium Project +US$200m capex spent Fully permitted for production with all 3.3M Ib plant located in northern Malawi permits and licenses in place Infrastructure remains in excellent condition Simple Mining & Metallurgy Significant exploration Open pit mining operation with 1.5Mtpa (87.5% recovery) potential for uranium and other minerals Advancements in metallurgical processing technology since project closure lotusresources.com.au March 2020 ASX: LOT | 4

Kayelekera redevelopment strategy GROUND-UP REVIEW OF OPERATIONS Same core team that re-developed the Honeymoon Uranium Mine in South Australia STRATEGY BASED UPON FUNDAMENTAL ENGINEERING AND GEOLOGY PRINCIPALS Geology – geology review, exploration targeting, resource opportunities Processing – plant data review, identify process design improvements / opportunities, review relevant new technologies Social and Environment – engage with key stakeholders to facilitate start-up, license-to- operate REVIEW OF PREVIOUS OPERATING DATA Re-engineer re-start costs Investigate new technologies (e.g. ore sorting on lower-grade material) to improve project economics Identify opportunities to reduce operating costs e.g. alternate power sources (solar), acid etc. lotusresources.com.au March 2020 ASX: LOT | 5

Kayelekera’s exploration potential Kayelekera has 37.5Mlb U 3 O 8 Resource with potential to significantly extend mine life Numerous radiometric anomalies have been identified over the broader project region Drill targets remain at Mwankenja South, Livingstonia and Chilumba untested radiometric anomalies; structural targets in the Nthalire areas Kayelekera Mineral Resource Mt Grade (ppm U 3 O 8 ) Mkg U 3 O 8 Mlb U 3 O 8 Measured 0.74 1,010 0.7 1.5 Measured – RoM Stockpile* 1.6 760 1.2 2.6 Indicated 18.7 660 12.3 27.1 Total 24.6 660 16.3 36.0 Inferred – LG Stockpile* 2.4 290 0.7 1.5 Total All Material 27.1 630 17.0 37.5 Lotus Exploration Tenements Note: JORC 2012, Reported above a 300ppm U3O8 cut-off * Refer to ASX announcement: ‘Lotus increases Kayelekera Uranium Mineral Resource by 31%’ dated 26 March 2020 lotusresources.com.au March 2020 ASX: LOT | 6

Excellent infrastructure More than $200M capex invested into Kayelekera’s existing onsite infrastructure A 3Mlb per annum resin in pulp extraction plant is already in place Kayelekera Infrastructure Other key infrastructure at Kayelekera includes: 1.5Mt per annum ore capacity Fully serviced camp and offices Water treatment plant Significant water storage capacity Kayelekera Plant lotusresources.com.au March 2020 ASX: LOT | 7