Peninsula Energy Maintains CY2026 Production Guidance as Mine Unit 4 Acidification Begins

• Header House 14 in Mine Unit 4 commenced acidification following Wyoming regulatory authorisation, with flow rates averaging 15 gallons per minute compared to the 12 gallons per minute assumption in the Production Reset Plan.
• Mine Unit 4 is forecast to contribute approximately 60% of Peninsula's uranium production in CY2026 and CY2027.
• CY2026 production guidance of 0.4 to 0.5 million pounds of U3O8 maintained.
• Central Processing Plant Phase 1 piping replacement with acid-resistant fibre reinforced plastic materials completed in January, on schedule and below budget.
• A$69.9 million equity raise completed and Davidson Kempner debt facility fully drawn, with US$31.8 million cash held at 31 December 2025.

Peninsula Energy Limited (ASX: PEN, OTCQB: PENMF) is an Australian-listed uranium mining company that owns and operates the Lance Uranium Project in Wyoming, USA. The company recommenced production of dried yellowcake in September 2025 using low-pH in-situ recovery mining, where acidic solution is injected underground to dissolve uranium from ore. Lance is among the largest independent uranium projects in the United States, positioning Peninsula as a domestic supplier to the US nuclear energy sector.

Mine Unit 4 Acidification Commences with Flow Rates Above Plan Assumptions

Header House 14 in Mine Unit 4 (MU-4) commenced acidification in December 2025 following authorisation from the Wyoming Uranium Recovery Program. Acidification involves injecting an acidic solution underground to dissolve uranium from the ore zone, creating uranium-bearing fluid that is pumped to the surface for processing. Header House 14 is the first of six planned structures within MU-4.

Flow rates from Header House 14 are averaging approximately 15 gallons per minute, compared with the Production Reset Plan assumption of 12 gallons per minute. The rate of pH reduction in the mining zone is also tracking ahead of the planned schedule. 

According to the company's Managing Director and CEO George Bauk:

"The early performance of this key mining area has been encouraging, with flow rates and pH reduction tracking ahead of plan. With MU-4 expected to contribute approximately 60% of our forecast production in CY2026 and CY2027, its successful development and operational performance is central to delivering sustainable production from the Lance Project."

During the quarter, production from Mine Unit 3 (MU-3) was lower than planned due to well maintenance requirements following a pause in operations. The maintenance programme is nearing completion, and MU-3 is expected to return to production in February 2026. MU-4 uses revised wellfield designs with approximately 30 production wells per header house and 60 feet spacing between production and injection wells, compared with 45 production wells and 80 feet spacing in MU-3. The company stated that the progress with MU-4 is expected to more than offset the lower production from MU-3, and CY2026 production guidance of 0.4 to 0.5 million pounds of U3O8 remains unchanged.

Central Processing Plant Commissioning Continues with Piping Replacement Completed

Commissioning of the Lance Central Processing Plant (CPP) continued during the quarter. The plant processes uranium-bearing fluid through elution, precipitation, filtration and drying systems to produce dried yellowcake for sale. A water purification system designed to reduce impurity levels in the final product is scheduled for installation in the March 2026 quarter.

Replacement of corroded carbon steel piping in Phase 1 of the CPP with acid-resistant fibre reinforced plastic (FRP) materials commenced during the quarter and was completed in January. The work was completed on schedule and below budget. 

According to CEO George Bauk:

"Replacement of the corroded, internally lined and coated, carbon steel pipework with acid resistant fibre reinforced plastic commenced late in the quarter and was completed in January, in advance of when flows from MU-4 will be turned to the CPP for production."

The CPP was offline for approximately 14 days in January for completion of the piping replacement programme. This shutdown affected acidification of MU-3 and MU-1, as fluid flows to these units originate from the CPP. Acidification of MU-4 was not affected, as initial acidification in each header house occurs independently of CPP flows. The CPP is designed to process uranium from the Lance wellfields as well as from potential satellite projects including Barber and Dagger. The facility has nameplate capacity of approximately 5,000 gallons per minute of wellfield flow and approximately 2 million pounds of dried yellowcake per annum.

Equity Raise Completed and Debt Facility Fully Drawn with US$31.8 Million Cash on Hand

Peninsula completed its A$69.9 million equity raise in early October 2025. The final tranche of A$7.5 million (before costs) was received following shareholder approval at an Extraordinary General Meeting on 30 September. Proceeds are allocated to project development at Lance, feasibility studies at the Kendrick and Dagger prospects, and corporate and working capital requirements.

The Davidson Kempner debt facility was fully drawn during the quarter. Of the US$15 million facility, US$3 million was converted to equity and a US$0.6 million make-whole payment was capitalised, leaving an outstanding debt balance of US$12.6 million. The company held US$31.8 million in available cash at 31 December 2025.

The uranium spot price was reported at above US$88 per pound at the time of the quarterly report, representing an increase of approximately 10% since mid-December 2025. CEO George Bauk stated that the rise was driven by strengthening demand visibility across global nuclear fuel markets and accelerating government policy momentum supporting nuclear power generation as a source of clean baseload electricity. Peninsula has one remaining sales contract commitment covering 600,000 pounds of uranium (100,000 pounds per annum from 2028 to 2033).

Outlook

Peninsula reported progress during the December 2025 quarter across its operational ramp-up at the Lance Project. Header House 14 in MU-4 commenced acidification with flow rates above the Production Reset Plan assumption. The Central Processing Plant completed replacement of Phase 1 piping with acid-resistant materials. The company completed its A$69.9 million equity raise and fully drew its Davidson Kempner debt facility, holding US$31.8 million in cash at quarter end. Near-term activities include the return of MU-3 to production in February 2026, acidification of Header Houses 15 and 16 during the March quarter, and installation of the CPP water purification system. WWC Engineering has been appointed to commence a Scoping Study at the Dagger exploration project. CY2026 production guidance of 0.4 to 0.5 million pounds of U3O8 remains in place.

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