Fundraising: Update

10/02/10

                             Lotus Resources Plc                              
                          ('Lotus' or 'the Company')                           

                             Fundraising: Update                               


Lotus Resources Plc ('Lotus' or 'the Company') (PLUS Markets: LOTP), a 
company engaged in the development of mining and exploration projects in 
Mongolia, is pleased to announce that it has completed a £600,000 fundraising 
by way of a placing.

£100,000 has been raised through the issue of 4,694,835 shares ordinary shares 
at 2.13p per share with a further £500,000 raised via a convertible secured 
loan note based on asset acquisition.

The shares have been issued pursuant to the current dis-application of
pre-emption rights as approved by the shareholders at the Company's AGM in
2009, whilst the issue of the loan notes and warrants are subject to
shareholder approval.

These funds have been raised for working capital and to develop the mining
opportunities in Mongolia already announced with the funding from the
convertible loan note being allocated for the purchase of production assets.
Brief summaries of these projects are given below.


Lotus Resources' Fluorspar Projects

Lotus Resources Plc operates in Mongolia through its wholly owned subsidiary
Lotus Minerals Mongolia LLC ("LMML") which holds the Group's investments in its
mining and exploration companies.


Lotus Amgalan LLC ('Chuluut Project')

Lotus Amgalan LLC is owned 51% by LMML and 49% by Amguulan LLC, a Mongolian
company.  The Company holds a mining licence covering 35 hectares which is
located approximately 410km southeast of Ulaanbaatar.    It is anticipated that
mine development work will be able to commence shortly subject to the necessary
consents being obtained.
 

Lotus Dai Uul LLC ('Dai Uul Project')

Lotus Dai Uul LLC was originally owned 51% by LMML but in January 2010 LMML
acquired the 49 per cent of the JV owned by GXT LLC, a local Mongolian company
and now owns 100 per cent of this project.  Lotus Dai Uul LLC holds an
exploration licence ('Dai Uul') covering 83 hectares approximately 300km
southeast of Ulaanbaatar. It is located near the Bor-Ondor Mine (the biggest
fluorspar mine in Mongolia) in the Bor-Ondor fluorspar district.  An
application for the grant of a mining licence is being prepared.  It is
anticipated that mine development work will be able to commence in mid 2010
subject to the necessary consents being obtained.
 

Lotus Bayalag Fluorspar LLC ('GAT Project')

Lotus Bayalag Fluorspar LLC is now owned 80% by LMML with the balance owned by
Mr Orgil Enkh-Onon, a local Mongolian businessman. The exploration licence held
by Lotus Bayalag Fluorspar LLC covers 1,066.7 hectares and is located
approximately 225km east of Ulaanbaatar.

Limited exploration work, which involved trenching and test pitting on three
outcropping fluorite veins, has been carried out on this licence so far. An
exploration programme has been prepared to cover mapping and trenching which it
is intended to commence during 2010.


Tsagaan Chuluut ('Tsagaan Chuluut Project')

The Tsagaan Chuluut project, which is wholly owned by LMML, is a recent
addition to the Company's portfolio of fluorspar projects. The property
comprises a mining licence covering an area of 33 hectares.   It is located
approximately 400km south east of Ulaanbaatar and 70km north east of the town
and fluorspar mining centre of Bor-Ondor.

 
Details of the Share and Convertible Loan Note Placements

The Company has issued for cash, 4,694,835 shares at 2.13p pence per share
raising £100,000 together with the issue of warrants over 14,084,505 ordinary
shares of 1p exerciseable as follows:

    ·  4,694,835 warrants @2.13p for up to one year from issue
    ·  4,694,835 warrants @3.2p for up to two years  from issue
    ·  4,694,835 warrants @4.26p for up to three years from issue

City of London Group and John Greenhalgh subscribed for 2,347,418 shares each
at 2.13p per share representing 3.38% of the enlarged share capital with the
warrants being issued on a pro rata basis.

The company also issued Cumulative Convertible Redeemable secured Loan Notes.
City of London Group and John Greenhalgh subscribed for £50,000 worth of Loan
Notes each and private clients of UBS AG subscribed for £400,000 worth of Loan
Notes.  The principal terms of the Cumulative Convertible Redeemable secured
Loan Notes are:

    ·  Conversion of all of the loan notes into ordinary shares of 1p at the
       Holders option until 31 December 2013 at an exercise price of 2.5p per 
       share;
    ·  The Company may (subject to approval of the holders) repay the first 
       £200,000 of the £500,000 loan note plus any accrued interest, in part or in
       full, for cash, up to the date of repayment, at any time after the second
       anniversary of issue;
    ·  The issue, on 31 December 2013, of up to 20,000,000 warrants over
       Ordinary shares @4.26p exercisable for up to two years from issue. The 
       warrants will be issued pro rata to the holding of the loan note;
    ·  10% interest per annum payable quarterly in arrears in cash or rolled
       up at the discretion of the holder; 
    ·  Secured on plant and machinery of Lotus Minerals Mongolia LLC and its
       subsidiaries as assets are acquired.

In addition to the above, the Company has placed 456,385 new ordinary shares at
2.13p per share. These shares have been issued to a consultant to, the Company,
as settlement of outstanding contractual obligations.

Following this issue of shares, the Directors continue to hold 6,928,268 shares
now representing 10%of the issued share capital. Simon Longworth, the Chief
Executive Officer continues to hold 4,221,347 shares, now representing 6.1% of
the issued share capital. Luka Lu continues to hold 1,973,587 shares now
representing 2.8% of the issued share capital.

Following this issue there will be 69,396,275 ordinary shares in issue. The new
shares will rank pari passu with existing ordinary shares.

The above figure may be used by shareholders as the denominator for the
calculations by which they will determine if they are required to notify their
interest in, or change to their interest in, Lotus Resources Plc under the
FSA's Disclosure and Transparency Rules.

Further to the announcement made on 9 December 2009, the Company announces
that, owing to a technical delay in the transfer of shares into the Euroclear
account of Habsburg & Partner Advisory AG ("Habsburg") settlement of the
consideration for the shares is now expected to be received on or before the
15th February 2010. As a result of the delay the options granted to Habsburg
over new ordinary shares have lapsed.

Simon Longworth, Chief Executive, Lotus Resources commented:

"These additional funds will allow us to continue the expansion of the Company.
We now have in place a resource base that will generate cashflow this year.

"We are actively looking to add further licences and to acquire producing
assets.  We remain on track to meet our aim of building a medium sized mining
and exploration company."

The Directors of the Issuer accept responsibility for this announcement



Enquiries:
 

Lotus Resources Plc                                                      
Simon Longworth, Chief Executive         Tel:   [phone]                    
                                         and   [phone]              
James Benson, Finance Director           Tel:   [phone]              
                                                                         
Rivington Street Corporate Finance       Tel:   [phone]              
Eran Zucker                                                              
                                                                         
Lothbury Financial                                                       
Michael Padley / Ron Marshman            Tel:   [phone]              
                                                                         




END

LOTUS RESOURCES PLC