Lotus Resources : Non-deal Roadshow Presentation

r personal use only

Kayelekera

Proven Uranium

Producer

Non-Deal Roadshow Presentation February 2022

LOT.ASX OTCQB: LTSRF

LTSRF:OTCQB |

lotusresources.com.au | LOT:ASX

Important Notice

onlyFORWARD LOOKING STATEMENT

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 Lotus Resources (Lotus or 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 funds 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 the Company's Kayelekera Project (Project); foreign investment risks in Malawi; 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, retention of key employees and the impact of the COVID-19 pandemic on the Company's business and operations.

F rward-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 uranium market information, the Company's peers, the Company's ability to carry on its future exploration, development and production activities, the timely receipt of required approvals, the price of uranium, 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

useopinions and conclusions contained in the Presentation. 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 or its contents or otherwise arising in connection with it.

xhaustive 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's 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 has prepared this presentation material (Presentation) 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,

personalSCOPING STUDY

For information in this document relating to the Restart Scoping Study, refer to ASX announcement dated 20 October 2020. The Company confirms that in relation to the Restart Scoping Study announced on 20 October 2020, it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions underpinning the forecast financial information included in that announcement continue to apply and have not m terially changed.

MINERAL RESOURCE (JORC 2012)

For information relating to the Mineral Resource Estimate in this document, refer to ASX announcements dated 26 March 2020 and 24 June 2019. The Company confirms that it is not aware of any new information or data that materially affects the inf rmation included in the original market announcements and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The Company c nfirms 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.

EXPLORATION RESULTS

The information in this Presentation that relates to exploration results at the Company's Kayelekera project in Malawi references ASX announcements dated 1 February 2021, 16 September 2021 and 27 January 2022. Lotus confirms that it is not aware of any new information or data that materially affects the information included in those announcements.

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Kayelekera is a proven uranium producer

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FAST TRACK TO PRODUCTION		CAPITAL STRUCTURE
4th largest brownfield uranium asset on care and maintenance with a PROVEN		A$312M	A$27M
COMMERICAL PRODUCTONhistory1
	• 11Mlbs U3O8 of production over four years		US$218M	US$19M
	• US$200m spent on infrastructure at Kayelekera - in good condition		MARKET CAP	CASH - DEC 2021
	• Strong support from the Malawi Government (15% ownership)		At $0.26 / share	Unrestricted (A$14m/US$10M)
			Restricted (A$13m/US$9M)
	• Definitive Feasibility Study completed by mid-2022
		1,202M	48M
LOW-COST, PROVEN URANIUM PRODUCING ASSET
SHARES ON ISSUE	OPTIONS
US$50m refurbishment capital to recommence production2
use				Inc. 15M employee options

• Name plate production - 3Mlbs U3O8 per annum1

• Multiple cost reduction initiatives being investigated and implemented in DFS	Retail - Global	Retail - USA	Uranium ETF
	7%	6%
EXPLORATION UPSIDE WITH DRILLING UNDERWAY	4%
Strong platform established (resource of 37.5Mlb3) with drill rigs turning			Institution
• Kayelekera - Drilling expands known footprint - resource upgrade - 1Q20224			23%

• Livingstonia (regional targets) - Assays pending / Drilling ongoing - 1Q20225

personalr	•	Milenje Hills Rare Earth (NdPr) - Drilling completed - Assays pending - 1Q2022	Management
			Retail -	20%
			Australian
			40%
1. Appendix 1; 2. ASX announcement 20 October 2020; 3. Appendix 4; 4. ASX announcement 27 January 2022;	lotusresources.com.au | LOT:ASX LTSRF:OTCQB | 3
5. ASX announcement 30 November 2021

Brownfield assets the first to react to increased demand

Brownfield uranium assets offer significantly lower risk compared to new development projects
•	Proven COMMERCIAL production history
•	Infrastructure and licensing in place
only• Lower capital requirement and quicker re-start compared to new developments

• LOTUS is at a significant discount compared to its peers despite being the 4th largest PROVEN producing uranium asset

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US$8.0bn

US$1.4bn

US$218m

US$1.0bn

US$423m

US$122m

• KAYELEKERA replacement capital is greater than LOTUS current market capitalisation

personalAnnual Productio (Mlbs U3O8)

Market Cap

Market Cap

Market Cap

Market Cap

Market Cap

Market Cap

COMMERICAL PRODUCTION NOT

LARGEST ASSETS ON CARE & MAINTENANCE THAT ACHIEVED COMMERCIAL PRODUCTION1,2

ACHIEVED1,2

1. R

fer to Appendix 1 & 2 for Company and asset information; 2. Eight largest C&M assets not owned by majority State enterprises

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Multiple initiatives by major governments highlight the importance of nuclear

Making nuclear a part of the long-term solution

onlyuse"Green" Energy

•	Major shift in sentiment during the past
	decade (closure to potential expansion)
		• Limited closures vs. New Builds
•	Nuclear is 25% of EU electricity generation
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• EU Taxonomy - major new investment

potential

• Nuclear classified as "environmentally

sustainable" under the EU Taxonomy Framework

Largest global consumer

• US Bipartisan Infrastructure Deal
• • US$6Bn to prevent premature reactor closure
  • US$2.5Bn for advanced reactor development (SMR)
• Worlds largest consumer - nearly no domestic supply
• Nuclear - 20% of electricity generation

Continues to grow at a rapid

rate

• Targeting an additional 150 new large nuclear reactors by 2035 (49 as of today)
• Significant reduction in construction time ~ 5 years
• On track to be largest consumer by 2030

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