Lotus Resources (LOT) Investor presentation summary

Operational and balance sheet reset

• Comprehensive operational reset and optimisation plan underway at Kayelekera to support transition to steady-state uranium production, targeting 2.4Mlbs U3O8 per annum with a greater than 9-year mine life.

• Key milestones achieved include recommissioning of major processing circuits, adoption of owner-operator mining, and significant improvements in monthly uranium output.

• Temporary production pause due to acid supply disruptions and acid plant issues, with repairs completed and production resumption expected late July 2026.

• Optimisation initiatives focus on equipment upgrades, process control, reagent sourcing, and laboratory practices to drive recoveries above 85%.

• Export readiness progressing, with first uranium shipment targeted for September 2026, pending permitting approvals.

Strategic funding and financial flexibility

• Strategic funding package includes a fully underwritten A$60m equity raise, A$35m convertible note with CVI Investments, and up to US$30m inventory prepayment facility with Mercuria.

• Funding supports capital projects such as tailings storage facility lift, grid connection, ore sorter, and working capital for ramp-up.

• Pro forma net cash position of approximately A$79m expected post-funding, enhancing liquidity and balance sheet flexibility.

• Convertible note features zero coupon, five-year maturity, and detachable warrants, subject to shareholder approval.

• Mercuria facility accelerates cash conversion cycle, providing working capital upon shipment and reducing liquidity risk during ramp-up.

Contracting strategy and market exposure

• Contracting strategy balances revenue certainty with significant exposure to uranium price upside; about 80% of future production remains uncontracted.

• Recent offtake renegotiations have reduced 2026 delivery obligations and financial settlement exposure, releasing pounds for future market-linked sales.

• Strategic partnership with Mercuria includes a marketing agreement for up to 3Mlbs and inventory prepayment facility.