LOTUS RESOURCES LIMITED — Regulatory Filings 2012

25 July 2012

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RESOURCE UPDATE FOR DRAGON’S ROCKLEA DEPOSIT

ASX Announcement

ASX Announcement ASX Code: DLE Released: 25 July 2012

For Further Information

Gang Xu Managing Director Tel: +61 8 9322 6009

Directors

Jie Chen Chairman

Gang Xu Managing Director

Tim Williams COO, Executive Director

Highlights

• Dragon has completed a new resource model for its Rocklea Project with over 84% of the JORC Resource now being categorised as “Indicated”.

• Dragon’s Rocklea Project Channel Iron Mineralisation Resources increased by over 30Mt to 93.59Mt @ 52.19% Fe (59.16% caFe) with a 50% Fe cut-off grade, including 26.57 Mt @ 54.12% Fe (61.06% caFe) with a 53% cut-off grade.

• Resource model also indicates a good average grade at a lower 45% cut-off grade with a total of 117.06Mt @ 51.65% Fe (58.60% caFe).

• When combined with the acquisition of Murchison’s Rocklea project, Dragon will have 182.6Mt @ 52.7% Fe (59.5% caFe) for its consolidated Rocklea project.

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Computershare Investor Services Level 2, Reserve Bank Building 45 St George’s Terrace Perth WA 6000

• Increased resource base expected to offer significant cost efficiencies and substantially greater ability to pursue the development of the Rocklea Project.

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Contact Details

Dragon Energy Ltd Suite 8, 1297 Hay Street West Perth, WA 6005 PO Box 1968, WA 6872

Tel: +61 8 9322 6009 Fax: +61 8 9322 6128

www.dragonenergyltd.com

Dragon Energy Limited (“Dragon”, ASX: DLE ) is pleased to announce that its Channel Iron Mineralisation (‘CIM’) Resources at its Rocklea Project in the Pilbara, Western Australia, have increased to 93.59Mt grading 52.19% Fe (59.16% caFe) (Figure 2).

The updated Resource model was prepared by Golder Associates Pty Ltd and has achieved Dragon’s main objective of an improved resource category with 84% of the JORC Resource now in the Indicated category. The increased Resource will offer potentially significant cost efficiencies and substantially greater ability to pursue the development of the Rocklea Project.

ABN: 38 119 992 175

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Suite 8 1297 Hay Street, West Perth, Western Australia, 6005 T: (61-8) 9322 6009 F: (61-8) 9322 6128

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MINERAL RESOURCE

The mineral resource update is based on data from RC drilling completed between 2005 to 2009, and infill drilling from 2011-2012. For the Main mineralisation drill holes are spaced 50m along sections approximately 200m apart, and for the North Pod drilling is spaced on a 200x200m grid testing outcropping CID mineralisation (see Figure 3).

The main purpose of the infill drilling campaign was to improve the resource category of the Rocklea deposit in preparation for advanced mine planning and project development. This has now been achieved with over 84% of the updated Resource now in the Indicated category.

The updated resource estimate is summarised below using cut-off grades of 45%, 50% and 53% Fe:

Table 1: Rocklea JORC Resources

As announced on 10 July 2012, Dragon has signed an agreement to acquire Murchison Metals Ltd’s (“Murchison”) Pilbara project, subject to the parties obtaining consent to the assignment of a standard heritage agreement. The Murchison project is located adjacent to Dragon’s existing Rocklea tenement E47/1024-I and includes P47/1429-I, the iron ore rights to E47/1153-I which is held by Joytell Pty Ltd, and E47/952-I which contains the southern extension of the Rocklea deposit CIM with a JORC Mineral Resource of 89Mt @ 53.2% Fe (59.9% caFe) (Figure 1). This consolidation will substantially increase Dragon’s iron ore Mineral Resource at the Rocklea Project to a total Resource of 182.6Mt @ 52.7% Fe (59.5% caFe) with a 50% cut-off grade (Table 2).

1 The Mineral Resource was updated in 2012 in accordance with the guidelines of the Australasian Code for reporting Exploration Results, Mineral Resources and Ore reserves (JORC Code 2004) using a 45% lower cut-off grade, and a specific gravity of 2.7. No mining parameters were applied to the model.

2 The Mineral Resource was updated in 2012 in accordance with the guidelines of the Australasian Code for reporting Exploration Results, Mineral Resources and Ore reserves (JORC Code 2004) using a 50% lower cut-off grade, and a specific gravity of 2.7. No mining parameters were applied to the model.

3 The Mineral Resource was updated in 2012 in accordance with the guidelines of the Australasian Code for reporting Exploration Results, Mineral Resources and Ore reserves (JORC Code 2004) using a 53% lower cut-off grade, and a specific gravity of 2.7. No mining parameters were applied to the model.

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Table 2: Rocklea JORC Resources Consolidated

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Figure 1: Rocklea Project Tenement Plan- Including New Acquisition

4 The Mineral Resource was updated in 2012 in accordance with the guidelines of the Australasian Code for reporting Exploration Results, Mineral Resources and Ore reserves (JORC Code 2004) using a 50% lower cut-off grade, and a specific gravity of 2.7. No mining parameters were applied to the model.

5 The Mineral Resource was updated in 2009 in accordance with the guidelines of the Australasian Code for reporting Exploration Results, Mineral Resources and Ore reserves (JORC Code 2004) using a 50% lower cut-off grade, and a specific gravity of 2.37. No mining parameters were applied to the model.

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Dragon’s Managing Director, Gang Xu, stated that the updated Resource was an important step in the development of the company’s Pilbara Iron Ore Project.

“We are very pleased with the results of this new Resource model. Not only have we achieved our main objective by bringing the majority of the Resource to an Indicated level but we have also added over 30 million tonnes to our total iron ore Resources at a 50% iron cut-off grade.”

“The results at the 45% cut-off grade are also extremely encouraging with only a slightly lower average iron grade, compared to the 50% cut-off. It is likely that the project is viable at a 45% cut-off and this gives us 117.06 million tonnes grading 51.65% iron, or a calcined iron content of 58.60%.”

“Our maiden Resource for the Nameless Project is close to completion and when we combine that with our consolidated Rocklea project, we will have a large scale Resource to pursue our company objectives.”

There is further exploration potential to increase Dragon’s iron ore Resources in the Pilbara region with possible new exploration targets within the tenements of the Murchison Rocklea Project as well as the western end of the Nameless tenement.

FUTURE PLAN

Continued development of the Pilbara Iron Ore Project:

• Complete maiden Resource model for Nameless Project.

• Identifying and securing approvals for an export port suited to road transportation;

• Undertake formal pre-feasibility study for the consolidated Pilbara Iron Ore Project combining the updated Rocklea and Nameless project Resources with the soon to be acquired Murchison Metals Ltd Rocklea Iron Project assets;

• Launch and complete long lead time approval items, i.e. environmental studies, heritage agreements, mining lease approvals;

• Identify new exploration targets for testing within exploration licences to be acquired from Murchison Metals Ltd to further grow Dragon’s iron ore resources in the Pilbara region; and

• Identifying and securing financing for project development.

Authorised by:

Gang Xu Managing Director

For further information please contact:

Tim Williams

Gang Xu Tim Williams Managing Director COO, Executive Director Telephone: +61 8 9322 6009 Telephone: +61 8 9322 6009 Mobile: +61 411 039 645

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About Dragon Energy

Dragon Energy Limited (“Dragon”) listed on the Australian Securities Exchange (ASX) in February 2009 ( ASX: DLE ).

Dragon’s flagship projects are Rocklea and Nameless iron projects in the Pilbara with a sizeable JORC Resource defined at the Rocklea Project and significant CID exploration targets at the Nameless Project. Dragon Energy’s portfolio of tenements has numerous multi-commodity targets, including Fe, Mn, Au, base metals and U in Western Australia.

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Figure 2: Rocklea Location Plan

Competent Persons’ Statement

The information in the report to which this statement is attached that relates to Exploration Results is based on information compiled by Mr Mark Hafer, who is a Member of The Australian Institute of Geoscientists. Mr Hafer is a fulltime employee of the company.

The information that relates to the Rocklea (Dragon) Mineral Resource Estimate is based on information compiled by Mr Stephen Godfrey who is a Member of the Australasian Institute of Mining and Metallurgy and The Australian Institute of Geoscientists and an employee of Golder Associates Pty Ltd. The information that relates to the Rocklea (Murchison) Mineral Resource Estimate has been compiled by Daniel Guibal who is a Fellow of the Australasian Institute of Mining and Metallurgy and an employee of SRK Consulting.

Messrs Hafer, Godfrey and Guibal have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Messrs Hafer, Godfrey and Guibal consent to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Figure 3: Drill hole locations & Resource Outlines

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