Mr. Dale McClanaghan reports

PRIVATE PLACEMENT FINAL TRANCHE CLOSING

Lotus Ventures Inc. has closed the second tranche of its non-brokered private placement financing by issuance of an additional 600,000 units at a price of 20 cents per unit.

Together with the first two closings, gross proceeds were $712,250.

Each unit consists of one common share and one transferable share purchase warrant, each warrant exercisable to purchase one common share at 25 cents per share for five years. Securities issued pursuant to the financing are subject to a four-month hold period under applicable Canadian securities laws. The proceeds of this financing will be used for general corporate purposes.