Lotus Resources Limited announced the inaugural Mineral Resource estimate (MRE) for the Livingstonia Uranium deposit of 6.9Mt at 320 ppm U3O8. This increases the total global MRE for the Company in Malawi to 51.1Mlbs U3O8. The MRE has been reported above a cut-off grade of 200ppm U3O8 reflecting estimated processing costs and recoveries as well as projected product pricing Using the historic resource reporting cut-off of 150ppm, the updated MRE reports a total 6.5Mlbs U3O8 which represents an increase of 0.5Mlbs U3O8 from the historic numbers (ASX announcement 14 October 2021).

The geology of the area comprises a westerly dipping series of interbedded Karoo mudstones andarkoses/sandstones (Table 2). Uranium mineralisation follows a north-westerly trending channel system that is developed within the K3, K4 and K5 stratigraphic units. The MRE is defined by a total of 12,113m of drilling completed in 102 vertical drillholes (Appendix 1, Figure 3).

Of this total 9,903m (82 holes) were completed between 2007 and 2011 by the previous owners, Globe Uranium Limited ("Globe") and Resource Star Ltd. In 2021, Lotus completed an additional 20 holes for 2,210m within and adjacent to the resource. The most recent program targeted extensions of the known mineralisation and confirmation of existing drilling. The majority of drillholes within the mineral resource estimate used reverse circulation drilling techniques with drill recoveries reported to be good.

The central portion of the deposit is drilled on a variable grid due to drill site access issues, with drill distances ranging from 50m to 300m east-west and 50m to 200m north-south. The grid separation expands away from the centre of the deposit area. All drilling was vertical with a range between 70m and 170m and an average length of 120m.

The principal sampling method for all drilling completed has been by downhole geophysical gamma logging. Data was acquired on the way up at a 2.5m/min speed and at a frequency of 5cm. Data was collected using either a Century Geophysical probe or Auslog slimline total count gamma probe with data for the most recent drilling processed by Lotus.

The majority of holes were logged open-hole following withdrawal of the drilling rods. For the early Globe drilling, the entire drill hole was also sampled for assay with later drilling only sampling mineralised intervals definedby either examination of the downhole logs or hand-held scintillometers. The drilling in this announcement relies on assays and downhole gamma data from calibrated probes which were converted into equivalent uranium values (eU3O8) by experienced personnel and then confirmed by a competent person (geophysics).

The final mineral resource dataset has been factored for disequilibrium identified by comparing downhole gamma results and geochemical assays. For the most recent drilling mineralised intervals, defined by a 200ppm eU3O8 cut off over a minimum thickness of 1m, were selected for sampling. These samples were analysed for uranium by ALS Laboratories in Johannesburg using pressed powder XRF.

Sampling during historical drilling programs was either the entire hole (early) or intervals selected based on radiometric response (later) and utilised an aqua regia digest with either an ICP-OES or MS finish at either ACME Laboratories in Vancouver or Genalysis in Perth. Gamma probes were historically calibrated at either the facility in Adelaide (Australia), Pelindaba (South Africa) and more recently at the nearby Kayelekera Minesite. Sensitivity checks were routinely performed on the probes to confirm correct operation.

Gamma data (as counts per second) from calibrated probes are converted into equivalent uranium values (eU3O8) using appropriate calibration factor (K factor) and all other applicable correction factors (probe dead times, water, hole diameter and disequilibrium).