Lotus Resources Raises A$34.2 Million in Institutional Entitlement Offer to Advance Kayelekera Uranium Mine Ramp-Up

Strong Institutional Backing Highlights Confidence in Kayelekera's Production Progress

Lotus Resources reported robust support for the institutional portion of its fully underwritten entitlement offer from existing eligible institutional shareholders and new high-quality Australian and international investors. Managing Director Greg Bittar described the completion of this offer as a "challenging yet pivotal time for Lotus," with the oversubscription underscoring strong investor interest in the company’s capital restructuring and development of the Kayelekera uranium project. This institutional endorsement signals market confidence in Lotus’s operational strategy and financial outlook.

The institutional bookbuild, which closed on 27 July 2026, raised approximately A$34.2 million through the issuance of roughly 155.5 million new shares at A$0.22 each. These shares will rank equally with existing Lotus shares. Settlement is planned for 31 July 2026, with allotment and quotation on 3 August 2026. The company emphasized that strong institutional participation reflects recognition of the strategic importance of completing Kayelekera’s production ramp-up and achieving near-term positive cash flow.

Comprehensive Funding Package Exceeds A$95 Million to Support Operational Growth

This institutional entitlement offer is part of a wider funding strategy announced on 23 July 2026. In addition to the A$34.2 million from institutional investors, Lotus is pursuing a A$35 million senior unsecured convertible note, pending shareholder approval and conditions precedent. The company has also secured a US$30 million inventory-backed prepayment facility to strengthen its balance sheet. Together with existing cash reserves, these funding sources aim to de-risk Kayelekera’s operational ramp-up and ensure sufficient liquidity during the transition to steady uranium production.

By combining equity, convertible debt, and working capital financing, Lotus seeks to optimize its capital structure while safeguarding shareholder interests and operational flexibility. Managing Director Greg Bittar stated that these funds will provide "balance sheet strength to see Kayelekera complete its production ramp-up and to see our way through to positive cashflow." The convertible note and detachable warrant allotments are scheduled for 7 September 2026, following a general meeting on 2 September 2026.

Retail Shareholders Offered Participation Opportunity in Up to A$26 Million Raise Starting 30 July

Following the institutional offer’s success, Lotus will open the retail entitlement offer to eligible retail shareholders on 30 July 2026. The retail offer is expected to raise up to A$26.0 million before costs through approximately 117.9 million new shares at A$0.22 per share on a 1-for-1 pro rata basis. Eligible retail shareholders with registered addresses in Australia or New Zealand as of 7:00pm (AEST) on 27 July 2026 (Record Date) will be invited to participate on the same terms as institutional investors. The retail offer closes at 5:00pm (AEST) on 13 August 2026.

CVI Investments, Inc., managed by Heights Capital Management, has agreed to sub-underwrite A$5 million of the retail entitlement offer on a priority basis. Shareholders who fully subscribe may also apply for additional shares through an oversubscription facility capped at 50% of their entitlement, available only if there is a shortfall. Lotus plans to dispatch the prospectus and personalised entitlement and acceptance forms to eligible retail shareholders on 30 July 2026.

Focus on Kayelekera Uranium Project and Production Advancement

Lotus Resources Limited is an ASX-listed uranium exploration and development company focused on advancing its flagship Kayelekera uranium project into production. Located in Malawi, Kayelekera is central to the company’s operational and capital allocation strategy as it transitions from development to operational production—a critical inflection point. The capital raised through this entitlement offer is intended to support the mine’s ramp-up to steady-state uranium production and drive operational and financial stability for positive cash flow generation.

Operating within the uranium sector, subject to global price and energy market fluctuations, Lotus’s funding aims to "de-risk Kayelekera's continued ramp-up" and provide "financial flexibility as Lotus transitions to steady state production." The Kayelekera project represents the company’s primary asset and revenue source, making the successful capital raise and production ramp-up vital for shareholder value creation.

Trading Resumption and Board Commitment to Equity Raise

Lotus expects its voluntary trading suspension to be lifted with shares resuming trading on the ASX on an ex-entitlement basis from market open on 27 July 2026. The suspension was requested to facilitate the institutional bookbuild. Trading resumption remains subject to ASX approval. Shares trading from this date will not carry entitlement rights, with the record date for retail eligibility already passed.

All Lotus Directors have confirmed participation in the equity raise, subscribing for their full entitlements and sub-underwriting additional commitments, with combined board commitments up to A$400,000. This director involvement signals strong alignment between management and shareholders during this critical fundraising phase and reinforces confidence in the company’s strategic and financial direction.

Indicative Timeline and Settlement Details for Capital Raise Completion

Lotus provided an indicative timetable for the entitlement offer completion, subject to change per company and regulatory discretion. Key dates include institutional offer settlement on 31 July 2026, allotment and quotation on 3 August 2026, and retail offer allotment on 20 August 2026. The retail offer closes on 13 August 2026, with results and shortfall notifications expected on 14 August 2026.

A general meeting is scheduled for 2 September 2026 to approve matters related to the strategic funding package, including the convertible note and detachable warrant offers. Allotment of securities under these offers is expected on 7 September 2026. Canaccord Genuity (Australia) Limited serves as lead manager, underwriter, bookrunner, and financial advisor; Gresham Partners as financial advisor; and Allens provides Australian legal counsel, underscoring the formal and compliant nature of the capital raise.

Prospectus Lodgement and Comprehensive Risk Disclosure

On 23 July 2026, Lotus lodged a detailed prospectus with ASIC and ASX alongside the strategic funding announcement. The prospectus outlines offer terms, company business, financial status, and key risks. Important information is also available in the investor presentation released concurrently, including funds usage, investment risks, and foreign selling restrictions. This formal disclosure document equips eligible investors with essential information for informed decision-making.

Lotus emphasizes reviewing the prospectus for detailed risk disclosures, covering commodity price volatility, operational and regulatory risks, financing uncertainties, and market factors. The company advises investors to seek professional advice, noting: "Nothing contained in this announcement constitutes investment, legal, tax or other advice."

Experienced Lead Manager and Advisory Team Supporting Capital Raise

Canaccord Genuity (Australia) Limited acts as lead manager, underwriter, and bookrunner, as well as financial advisor to Lotus, reflecting its strong position in Australian equity markets and expertise in capital raises. The full underwriting commitment ensures minimum capital is secured. Gresham Partners provides co-financial advisory services, while Allens offers legal advice on offer structure and compliance.

The involvement of these professional advisors highlights Lotus’s commitment to best practices and regulatory adherence throughout the capital raising process. For further information, contact Greg Bittar, Managing Director and CEO, or Christian Catalano, Senior Manager of Corporate Development. Additional details and updates are available at www.lotusresources.com.au.