Slide 1: Kayelekera Definitive Feasibility Study
Kayelekera Definitive Feasibility Study Proven Uranium August 2022 Producer LOT.ASX OTCQB: LTSRF
Slide 2: Important Notice
Important Notice FORWARD 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
Slide 3: DFS Confirms – Low capital, quick re-start uranium asset
DFS Confirms – Low capital, quick re-start uranium asset Quick Re-Start Low Initial Capital Improved Opex Robust Mine life 15 months from Final US$88m - one of the C1 costs US$29.10/lb1 10 yrs 19.3Mlbs U3O8 Investment Decision lowest in the industry AISC of US$36.20/lb1 2.4Mlbs U3O8 pa1 Permitted Re
Slide 4: DFS addresses historical issues at Kayelekera
DFS addresses historical issues at Kayelekera A number of legacy issues from the historical operation have been identified and rectified through the DFS. Open pit bench & inter-ramp Tailings dam dynamic stability Plant terrace stability stability • Upgraded design incorporates • Extensive geotechnic
Slide 5: Initial Capital Cost – one of the lowest in the industry
Initial Capital Cost – one of the lowest in the industry Capital Cost Estimates Item Low initial capital cost (US$M) Initial Capital • US$88M ranks the Project as one of the lowest capital cost Mining Contractor 0.60 uranium projects globally Plant Refurbishment 13.46 • Initial capital intensity of
Slide 6: Driving operating costs lower through innovation
Driving operating costs lower through innovation Cash Costs are US$29.1/lb and AISC of US$36.2/lb during the first 7 years of production (excluding ramp-up) - LOM cash costs of US$30.1/lb with LOM AISC of US$37.7/lb Despite the current high inflation environment, operating costs are lower compar
Slide 7: Simple, well understood mining and geology
Simple, well understood mining and geology • Simple open pit mining method • Well understood mineralisation • Design incorporates geotechnical constraints • Low strip ratio – 1.8:1 • 4 stages of mining over 6 year of mining • 10-year LOM includes 4 years stockpile treatment • Max depth 160m, average
Slide 8: Proven processing methodology with advancements
Proven processing methodology with advancements • Original processing plant operated successfully for five years • Produced 11Mlbs uranium • Plant remains in good condition • Refurbishment (US$50m) vs. new build (US$300M) Innovation through technological advancements • Same core processing method wi
Slide 9: Infrastructure at site remains in good standing
Infrastructure at site remains in good standing Being a historical operation there is significant infrastructure at site. The Study however aimed to improve on two key areas: Power • New hybrid power supply split • 28% from co-gen (acid plant) • 39% from grid • 25% from solar/BESS • 8% from diesel g
Slide 10: Aiming to become a uranium industry leader regarding ESG
Aiming to become a uranium industry leader regarding ESG Kayelekera will be one of the lowest carbon emitting process plants1 of its size across any commodity in the world • Forecasted power related carbon emissions are 8,029 tCO2 p.a • This is a 72% (~21,000tpa) reduction compared to the historical
Slide 11: 15 months development prior to first production
15 months development prior to first production 3Q22 4Q22 0-6 months 6-12 months 12-18 month 18-24 months DFS Complete Mining Study Plant & infrastructure Cost Estimates Offtake FID will not occur until an Financing appropriate uranium price is reached FID Plant Refurbishment Production Commences lo
Slide 12: Experienced Board and Management Team
Experienced Board and Management Team Production, offtake, redevelopment and financing experience in uranium industry Keith Bowes Michael Bowen Dixie Marshall Grant Davey Mark Hanlon Managing Director Non-Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Director Mr. Bow
Slide 13: Management Team
Management Team building a strong management team both corporately and at site Keith Bowes Michael Ball Robert Rich Theo Keyter DR Grain Malunga Managing Director Chief Financial Officer Marketing Executive General Manager Country Manager Mr. Bowes is a highly regarded Michael is a qualified Charter
Slide 14: Ore Reserve
Ore Reserve Grade U3O8 U3O8 Category Mt (U3O8 ppm) (M kg) (M lbs) Open Pit - Proved 0.6 902 0.5 1.2 Open Pit - Probable 13.7 637 8.7 19.2 RoM Stockpile – Proved 1.6 760 1.2 2.6 Total - Kayelekera 15.9 660 10.4 23.0 Ore Reserves are reported based on a dry basis. Proved Ore Reserves are inclusive of
Slide 15: Next Step towards production
Next Step towards production Prior to a Final Investment Decision (FID), CAPITAL STRUCTURE the Company will continue to advance a A$290M number of key areas including: US$203M Uranium ETF MARKET CAP 6% Retail - USA At $0.24 / share 7% 1. Kayelekera Mine Development Agreement; Retail - Global 2. Uran
Slide 16: CONTACT
CONTACT Keith Bowes Managing Director Level 20 140 St George Tce Perth, WA 6000 For further information visit: www.lotusresources.com.au
Slide 17: Appendix 1 - Emissions Comparison Scope 1&2 (t CO2e) p.a.
Appendix 1 - Emissions Comparison • Lotus is forecast to produce substantially lower GHG emissions at their the Kayelekera Uranium Project than other miners with a similar 1.4mtpa throughput rate and processing techniques. • The Kayelekera feasibility study shows an estimated carbon emissions of ~8,