(Peninsula Energy 100%)

Figure 1: Lance Projects Location, Wyoming, USA

Lance is one of the largest uranium projects in size and scale and holds a defined JORC (2012) Compliant uranium mineral resource of 53.6 million pounds U3O8. Lance was licensed and constructed by Peninsula’s wholly owned US subsidiary Strata Energy Inc., with commercial uranium production operations commencing in 2015.

The alkaline in-situ recovery uranium operations ceased in July 2019 primarily as a consequence of lower than expected recoveries. A Feasibility Study on a low pH in-situ recovery process was published in September 2018 and demonstrated robust economics of the proposed transition. Between 2019 and 2020 Peninsula completed additional research studies and a field trial in a previously mined area that both produced strong results which validated the 2018 Feasibility Study parameters.

Approximately 57% of uranium produced globally in 2019 was extracted via the low pH ISR process. Companies which utilise this process populate the lowest quartile of cash costs for global uranium producers. Importantly, Lance is the only US-based uranium project authorised to use this industry leading method.

The Company commenced a low pH in-situ recovery field demonstration (MU1A) in 2020 which concluded at the end of 2022. The primary objectives of the MU1A demonstration were met through evaluation of multiple production pattern configuration alternatives, data obtained for development of an updated uranium recovery curve, evaluating alternative solids management methods and uranium concentrate produced from recovered solutions.

At the beginning of 2022 Peninsula commenced the following activities:

• Early US$3.4 million preparatory works programme designed to facilitate an accelerated re-start and ramp-up of Lance, should a final investment decision be approved
• Updated Feasibility Study, which will build on the 2018 Feasibility Study, with completion expected in 3Q CY2022

A final decision on resuming commercial production operations using the low pH in-situ recovery method will be based upon the conclusions of the updated Feasibility Study and the prevailing uranium market conditions.