Peninsula Energy Confirms 2026 Uranium Production Guidance as Lance Project Ramp-Up Continues

• Full-year 2026 uranium production guidance of 0.4 to 0.5 million pounds (Mlbs) remains unchanged, supported by the Lance CPP's installed capacity of 2.0Mlbs per year.
• Both precipitation circuits at the Lance Central Processing Plant (CPP) are temporarily offline following agitator assembly failures attributed to incorrect installation by the EPC contractor; replacement units are expected on-site within 5 to 7 weeks, with repair costs covered under warranty.
• Mine Unit 4 (MU-4) acidification in Header House 14 (HH-14) is progressing ahead of schedule, with first uranium production from the wellfield expected by early March 2026.
• A peak daily uranium grade of 352mg/L was recorded from one production well at MU-4 this week, the highest head grade reported in the project's history.
• Wellfield flow rates across HH-14 and HH-16 are averaging 12.4 gallons per minute, above the 12.0 GPM figure used in the company's August 2025 Reset Plan.

Peninsula Energy Limited (ASX: PEN; OTCID: PENMF) is an Australian-based uranium mining company building a long-term uranium supply business around its wholly owned Lance Uranium Project in Wyoming, USA. Lance, one of the largest independent uranium projects in the United States, restarted production of dried yellowcake in September 2025 using low-pH in-situ recovery (ISR) chemistry, a technique that dissolves uranium from underground sandstone formations without conventional mining. Peninsula aims to become a fully independent domestic uranium supplier in the United States.

2026 Production Guidance of 0.4 to 0.5Mlbs Unaffected by Processing Disruption

Peninsula's 2026 production guidance of 400,000 to 500,000 pounds of uranium is underpinned by the Lance CPP's installed capacity of 2.0Mlbs per year. The plant's capacity relative to the current year's target means the temporary partial outage does not affect the full-year outlook, according to the company. Management confirmed guidance remains on track in its 19 February 2026 operational update.

During the repair period, approximately 8,000 pounds of resin storage capacity at the front end of the CPP provides flexibility to continue uranium recovery, with process fluids recirculated as required until the precipitation circuit is restored. The fault was identified at an early stage of the ramp-up process, before production volumes had reached full pace.

The outage period is also being used to complete additional plant work. Peninsula will finalise re-coating of the ion exchange and elution tanks as part of the Phase 2 expansion, with full capacity for those circuits targeted by the end of March. A Reverse Osmosis (RO) plant has also been ordered to improve the quality of process water used in the filter press wash cycle, addressing elevated sodium and chloride levels in the final dried yellowcake product. The RO unit is expected to be operational within four to six weeks.

Precipitation Circuit Offline Following Agitator Assembly Failures

The precipitation circuit is the final processing stage that converts uranium-bearing solution into dried yellowcake. Both circuits at the Lance CPP were taken offline after commissioning checks identified that agitator assemblies inside the precipitation tanks had been incorrectly installed by the EPC (engineering, procurement and construction) contractor, causing the units to fail.

Replacement parts have been ordered directly from the manufacturer and are expected on-site within 5 to 7 weeks, followed by approximately one week for installation and recommissioning. The rectification cost of approximately $0.23 million is a warranty claim under the EPC contract, meaning Peninsula will not be responsible for the expense. The EPC contractor is working with the company to complete the repair as quickly as possible.

Prior to the fault, the precipitation circuit had recorded an average operational efficiency of 99% since the plant commenced operations in September 2025. Wellfield operations are continuing without interruption throughout the rectification period, maintaining aquifer conditions and supporting ongoing ramp-up activities.

MU-4 Development Progressing Ahead of Schedule with Early Uranium Grades

Mine Unit 4 is central to Peninsula's near-term production plan, accounting for approximately 60% of forecast uranium output for 2026 and 2027. The unit is being developed sequentially through three header houses, HH-14, HH-15, and HH-16. Each header house undergoes an acidification process, which lowers the pH of underground fluids to mobilise uranium from the host rock before it is pumped to surface and directed to the CPP for processing.

HH-14, which commenced acidification in late December 2025, is expected to complete the process by the end of February, ahead of the original schedule. Average pH levels have reached 2.46 standard units, approaching the target mining pH of 2.0. A peak daily uranium grade of 352mg/L was recorded from one production well this week, the highest head grade in the project's history and above the averages of below 40mg/L reported from Mine Units 1 and 2 during the prior operating period from 2015 to 2019, when alkaline-based chemistry was used. Five additional recovery wells have recorded daily grades above 50mg/L within just 1.7 pore volumes of fluid circulation, compared to the three pore volumes assumed in the August 2025 Reset Plan. HH-16, which commenced acidification on 22 January 2026, has reached an average pH of 4.53 standard units after three weeks.

Managing Director and CEO George Bauk said:

"Mine Unit 4 is progressing very well, with the acidification of both HH-14 and 16 tracking ahead of schedule and initial analysis indicating strong uranium grades. We expect to turn uranium rich solution from HH-14 into the processing plant by the end of the month, delivering our first uranium production from MU-4 by early next month."

Mr. Bauk added:

"While installation-related issues have been identified within the precipitation circuit during commissioning, the team has responded quickly to identify the cause and implement a clear rectification plan. Importantly, this work is occurring during the early ramp-up phase and does not alter our production outlook for CY2026."

Outlook

Peninsula has outlined the following near-term milestones. Uranium-rich solution from HH-14 is expected to be directed to the CPP by the end of February, with first uranium production from MU-4 targeted for early March. Replacement agitator units are due on-site within 5 to 7 weeks, with full precipitation capacity expected to be restored shortly after. Phase 2 ion exchange and elution circuits are targeted to be fully operational by end of March, and HH-15 acidification is scheduled to commence in early March. Once the leaching phase is underway across all three header houses, the company expects to have a clearer view of grade recovery curves, which will be used to shape the medium and longer-term development and cost profile for the Lance Project.

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