Lotus Resources Confirms Kayelekera Uranium Mine Production Restart Set for Early August 2026 Following Acid Plant Repairs

Acid Plant Furnace Repairs Completed at Kayelekera, Enabling August 2026 Production Restart

Lotus Resources reported the completion of interim repairs on the sulphur furnace of the Kayelekera acid plant. Previously, commissioning was interrupted due to refractory brick failure within the furnace after initial acid production, leading to a production pause and reliance on external acid supply during repairs.

With repairs finalized, final commissioning will resume once procured acid supplies are restored onsite. Acid deliveries have commenced, with approximately 2,000 tonnes expected by the end of July 2026. This supply is projected to support the acid plant and processing plant restart in early August 2026 and sustain operations until full acid plant commissioning is achieved. The existing sulphur inventory on site can support about two months of acid plant production, providing a buffer against further supply disruptions.

Lotus emphasized the acid plant as a strategic asset, which once fully operational will enhance acid supply security, reduce reagent costs, and minimize reliance on external suppliers. This remains central to the company’s long-term cost and production strategy at Kayelekera.

June 2026 Quarter Achieves 155,900 lbs U3O8, Highest Since Restart

Production has steadily increased since operations resumed at Kayelekera. The September 2025 quarter yielded 25,500 pounds of U3O8, rising to 72,500 pounds in December 2025, then 78,200 pounds in March 2026. The June 2026 quarter delivered 155,900 pounds, the strongest quarterly output since restart, bringing the fiscal year-to-date total to 332,100 pounds.

Before the June 2026 production pause, May 2026 output reached 73,600 pounds—a 56% increase over April 2026—reflecting benefits from optimization initiatives such as strengthened site leadership, equipment upgrades, and improved maintenance. Production was suspended mid-June, with product drumming only during the first thirteen days, so the quarter’s results were achieved without a full month of active production. The steady-state annual production target remains approximately 2.4 million pounds of U3O8, expected by late 2026.

Accelerated Kayelekera Optimization Program During Production Pause Focuses on Five Operational Areas

Lotus launched a processing optimization program to address operational constraints during the transition from restart to steady-state production. The program targets five key areas: processing plant reliability and availability, maintenance planning and execution, instrumentation and process control upgrades, recovery improvement, and laboratory capability enhancement.

The company used the production pause to accelerate these optimization and maintenance activities initially planned for later in Q3 2026. Completing these tasks during downtime reduces the risk of future operational interruptions. With these initiatives well advanced and acid plant repairs complete, Lotus believes Kayelekera is positioned to resume operations and continue ramping up production toward its annualized target.

Novamet-Led Metallurgical Accounting Audit Highlights Sampling and Measurement Enhancements

Lotus disclosed results from a metallurgical accounting and reconciliation review by Novamet (Pty) Limited, as detailed in the March 2026 Quarterly Activities Report. The review assessed key measurement, sampling, analytical, and reconciliation points across plant feed, processing streams, tailings, and final product.

Novamet identified improvements to plant feed measurement and sampling, focusing on primary sampling integrity, slurry and solution flow measurement, sample handling, laboratory procedures, and final product sample security. Site management has incorporated these recommendations into ongoing improvements. Novamet is finalizing work supporting reassessment and potential restatement of certain processing and metallurgical data, including recoveries previously retracted through December 2025. This work is expected to be included in the upcoming June 2026 Quarterly Activities Report, which investors will monitor closely due to the significance of the restatement.

332,100 lbs U3O8 Produced Since Restart; 115,000 lbs Classified as On-Specification

Of the 332,100 pounds of U3O8 produced since restart, 115,000 pounds have been classified as on-specification product. Approximately 124,000 pounds remain subject to final assay and classification, while 93,000 pounds are off-specification, mainly from early commissioning production.

Lotus is exploring options for off-specification material, including blending to meet specifications or price discounting to facilitate sales. Product quality has improved significantly with operational enhancements and optimization initiatives. The company expects continued quality improvements as optimization progresses, the acid plant commissioning completes, and steady-state production is achieved. The current inventory of accepted product supports an initial shipment of about three containers, totaling approximately 108,000 pounds of U3O8, pending export permits and logistics approvals. Accepted product volumes declared by Orano CE continue to increase.

First Shipment of Approximately 108,000 lbs U3O8 Prepared Pending Export Permits

Preparing Kayelekera's first uranium shipment since restart marks a key commercial milestone for Lotus. The inventory supports an initial shipment of roughly 108,000 pounds of U3O8 across three containers. Shipment is contingent on securing export permits and logistics approvals, which are currently in progress.

The company did not specify timelines for permit approvals, shipment value, or pricing terms. Nonetheless, advancing accepted product volumes and shipment preparations represent a significant step toward revenue generation from Kayelekera’s production. Investors will likely view confirmation of the first shipment date as a critical near-term milestone for Lotus’s commercial and financial outlook.

Mercuria Marketing Agreement Commitment Letter Advances Definitive Documentation

Lotus announced that the Mercuria Marketing Agreement and Prepayment Facility Commitment Letter has replaced the previously announced non-binding term sheet, advancing formalization of this commercial arrangement. Definitive documentation under this facility is ongoing. The Mercuria arrangement includes both marketing and prepayment financing components, integral to managing near-term financial and commercial obligations.

The transition from a non-binding term sheet to a commitment letter signals increased certainty around the facility’s structure, though documentation is not yet finalized. Separately, Lotus is progressing restructuring its 2026 delivery obligations to reduce near-term commitments and financial exposure. Specific financial terms, prepayment amounts, and delivery volumes remain undisclosed and may be revealed in future updates.

Voluntary ASX Trading Suspension Maintained as Lotus Finalizes Strategic Funding Package

Lotus confirmed the continuation of its voluntary trading suspension on the ASX while finalizing a strategic funding package deemed critical to the company’s financial viability. This underscores the sensitive financial position amid ongoing capital needs for Kayelekera’s ramp-up, delivery obligation restructuring, and Mercuria facility progression.

No timeline was provided for lifting the suspension, nor details on the funding package’s size, structure, or involved parties. Investors holding Lotus shares remain unable to trade on the ASX until further company guidance. Market impact is unclear due to the suspension. Stakeholders should monitor future announcements regarding the funding package and suspension status.

Kayelekera’s Role in Global Uranium Market and Risks Facing Lotus Resources

The Kayelekera Uranium Mine in Malawi is among a limited number of uranium mines operating outside Kazakhstan, Canada, Australia, and Namibia, giving it a unique position in global uranium supply. Previously operated by Paladin Energy and placed on care and maintenance, Lotus Resources acquired and restarted the mine to capitalize on renewed global nuclear energy demand and uranium supply security concerns. The ramp-up positions Lotus as an emerging uranium producer, though it remains in a pre-revenue or early-revenue phase pending product shipment.

Risks specific to Lotus and Kayelekera include operational challenges in commissioning and ramping a care-and-maintenance mine; reliance on third-party acid supply before full acid plant commissioning; potential financial exposure from near-term uranium delivery obligations; outcomes of the metallurgical accounting review and possible restatement of historical data; and the critical need to finalize a strategic funding package. These factors present significant considerations for investors evaluating Lotus’s near-term outlook and production trajectory.