Resource

The Kayelekera deposit hosted a total mineral endowment of more than 50Mlbs U3O8 equivalent when historical production (11Mlbs) and the current resource are accounted for. Kayelekera is a sandstone-hosted uranium deposit associated with the Permian Karoo sediments and is hosted by the Kayelekera member of the North Rukuru sediments of the Karoo. The mineralisation is associated with seven variably oxidised course-grained arkose units, separated by shales and chocolate-coloured mudstones. Uranium mineralisation occurs as lenses primarily within the arkose units and, to a lesser extent, in the mudstone units. The lowest level of known mineralisation currently is at a depth of approximately 160m below surface.

The Mineral Resources as at 30 March 2020 was 37.5Mlbs U3O8 equivalent (eU3O8) reported above a 300ppm eU3O8 lower cut-off for in-situ material and a 200ppm eU3O8 cut-off for the medium-grade stockpiles (see ASX announcement 26th March 2020 – Lotus Increases Kayelekera Uranium Resource by 31%).

Grade has been determined from a combination of XRF and downhole logging derived eU3O8 grades. In-situ Mineral Resources are depleted for mining to 31 December 2013 when mining ceased; Stockpiles have been depleted to the end of processing in June 2014. Metal content is based on contained metal in the ground and takes no account of mining or metallurgical recoveries, mining dilution or other economic parameters. An in-situ bulk density of 2.29g/cm3 was applied for arkose material and 2.20g/cm3 for mudstone material to all blocks within the model.

Kayelekera Mineral Resource Estimate – March 2020 1

Category Mt Grade

(U3O8  ppm)

U3O8

(M kg)

U3O8

(M lbs)

Measured 0.7 1,010 0.7 1.5
Measured – RoM Stockpile 2 1.6 760 1.2 2.6
Indicated 18.7 660 12.3 27.1
Inferred 3.7 590 2.2 4.8
Total 24.6 660 16.3 36.0
Inferred – LG Stockpiles 3 2.4 290 0.7 1.5
Total All Materials 27.1 630 17.0 37.5

1 See ASX announcement dated 26 March 2020. Lotus confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 26 March 2020 and that all material assumptions and technical parameters underpinning the Mineral Resource estimate in that announcement continue to apply and have not materially changed.

2 RoM stockpile has been mined and are located near mill facility.

3 Medium-grade stockpiles have been mined and placed on the medium-grade stockpile and are considered potentially feasible for blending or beneficiation, with studies planned to further assess this optionality.