Lotus Resources Limited announced it has discovered high-grade rare earth oxide (REO) material up to 16% total REO and 3.4% critical REO at Milenje Hills prospect, 2km from its Kayelekera Uranium Mine in Malawi, following a preliminary low-cost exploration program. While the Company remains firmly focused on the development and subsequent recommencement of uranium production at Kayelekera, given the grade and favourable assemblage of these rare earths, it is considering additional work to determine the potential of this discovery, prior to assessing the optimal path forward. Highlights: Exploration activities including geophysics, mapping, and trenching at the Milenje Hills prospect 2km from the Kayelekera Mine has discovered total REOs up to 16% (average 8% from 22 mineralised samples), and critical REOs up to 3.4% (Dy, Eu, Nd, Pr, Tb, Y oxides; average 1.6% across the 22 mineralised samples) While the results have been obtained from trenching material, the average grade of the Total REO (3.5%) across all 70 samples assayed is attractive given that the average grade of the resources of ASX listed Rare Earth companies ranges between 0.63% and 5.4% (Appendix 2); REO mineralisation is hosted in allanite-rich pegmatites and granitoids and starts from surface (see Images 8 and 9) Rare-earth assemblage includes significant portions of neodymium (Nd), europium (Eu), terbium (Tb), dysprosium (Dy), yttrium (Y), and praseodymium (Pr): Neodymium and praseodymium oxides represent on average ~20% of the Total REO content of the assayed samples. These two elements, along with Dy and Tb are essential for the manufacture of permanent magnetics, which make-up ~90% of the value of the REO market. Neodymium-Praseodymium oxide, Dysprosium Oxide and Terbium Oxide experienced a significant price increase in 2H2020. In addition to rare earth oxides, samples with up to 7% TiO2 present as rutile were seen, with this mineralisation consistent with the high-grade REO mineralisation. Geophysics has identified additional targets, including some below the trenching limits, which require further investigation. Lotus is considering additional low-cost exploration and testwork to further define the potential of this discovery. A low pass filter, which highlights long wavelength signals, identifies large, deep and regional types of bodies, whilst the high pass filtering highlights short wavelength and smaller near surface anomalies. The Milenje data identified large deep and regional anomalies to the west, followed by a flat featureless middle section and ending in a section with some regional anomalies. The mineralisation is associated with allanite-rich pegmatite dykes and associated fluid alteration within associated granitoids. Importantly, the rare-earth assemblage identified includes significant portions of the high-value critical rare earth oxides of neodymium (Nd), europium (Eu), terbium (Tb), dysprosium (Dy), yttrium (Y), and praseodymium (Pr): up to 3.4% across all samples (Table 1). Of this, neodymium and praseodymium oxides represent on average approximately 20% of the TREO content of the assayed samples. These two elements, along with Dy and Tb, are essential for the manufacture of permanent magnetics, which make-up approximately 90% of the value of the REO market.