Peninsula Energy Reports Mine Unit 4 Progress at Lance Project

• Header House 16 in Mine Unit 4 has commenced acidification, marking continued progress in Peninsula Energy's production reset plan at its Lance Uranium Project in Wyoming, USA.
• Header House 14 demonstrates flow rates averaging approximately 15 gallons per minute, exceeding the planned assumption of 12 gallons per minute, with pH levels reducing faster than scheduled.
• Mine Unit 4 represents approximately 60% of forecast uranium production for calendar years 2026 and 2027, highlighting its critical role in the company's operational strategy.
• Peninsula Energy maintains its calendar year 2026 production guidance of 0.4 to 0.5 million pounds of uranium despite operational challenges in Mine Unit 3.
• Recent US Government initiatives, including a Nuclear Energy Review and Executive Order on critical minerals, strengthen policy support for domestic uranium producers.

Peninsula Energy Limited (ASX: PEN) is an Australian-based uranium mining company focused on developing and operating projects in the United States. The company owns the Lance Uranium Project in Wyoming, where it restarted yellowcake production in September 2025. Peninsula Energy is implementing a revised operational plan that includes low-pH operations, optimised wellfield designs, and revised production sequencing. The Lance Project is one of the largest independent uranium projects in the US.

Mine Unit 4 Operations Progress with Flow Rates Above Plan

Peninsula Energy's Mine Unit 4 development has commenced acidification at Header House 16, following Header House 14 which began acidification in late December 2025. Header House 14 has delivered flow rates averaging approximately 15 gallons per minute, compared to the reset plan's assumption of 12 gallons per minute. The company notes this performance is similar to flow rates achieved in Mine Units 1 and 2 during alkaline-based operations between 2015 and 2018.

The acidification process at Header House 14 is progressing according to the company's schedule. The pH level has decreased to approximately 3.48 standard units from the natural level of around 8.5 standard units when acidification began, and is progressing towards the target mining level of below 2.0 standard units. In in-situ recovery uranium mining, acidification lowers the pH of groundwater circulating through uranium-bearing rock formations, allowing uranium to dissolve and be pumped to the surface for processing.

Header House 15 construction is nearing completion, with acidification planned to begin after February 2026. Construction of Header Houses 17 through 19 is scheduled to commence in the March quarter 2026. The company expects all six header houses in Mine Unit 4 to be completed by the end of September 2026, ahead of the reset plan timeline of November 2026.

Production Guidance Maintained with Mine Unit 4 Accounting for 60% of Forecast

Peninsula Energy maintains its calendar year 2026 production guidance of 0.4 to 0.5 million pounds of uranium. Mine Unit 4 accounts for approximately 60% of the company's forecast production for both 2026 and 2027. The company has implemented revised wellfield designs beginning with Mine Unit 4, with each header house containing approximately 30 production wells with 60 feet spacing between production and injection wells, compared to 45 production wells with 80 feet spacing used in Mine Unit 3.

Mine Unit 3 has experienced higher than anticipated wellfield maintenance requirements, primarily from operational challenges following a temporary pause in acidification in the June 2025 quarter. This pause occurred due to resin storage capacity constraints related to delays in the Central Processing Plant expansion. 

Managing Director and Chief Executive Officer George Bauk stated:

"While the team remains focused on addressing the legacy issues within MU-3, stemming largely from the unexpected issues which halted acidification in the June 2025 Quarter, overall the Lance Project remains on track to deliver our CY2026 production guidance of 0.4Mlbs to 0.5Mlbs of yellowcake."

The accelerated development schedule for Mine Unit 4 is expected to offset delays from Mine Unit 3. Central Processing Plant commissioning continues, with work progressing on elution, precipitation, filtration, and drying processes. The replacement of corrosion-affected piping in Phase 1 of the plant is well advanced and expected to be completed in January on schedule and below budget.

US Government Nuclear Energy Review and Critical Minerals Executive Order

The US House Committee on Energy and Commerce held a hearing on 7 January 2026 as part of a Nuclear Energy Review, focusing on the current status of the nuclear industry, licensing pathways, and implementation of recent legislation. On 5 January 2026, the US Department of Energy announced $2.7 billion in funding over ten years for domestic uranium enrichment services, aiming to expand US capacity for low-enriched uranium and establish supply chains for high-assay low-enriched uranium. 

Energy Secretary Chris Wright stated:

“The administration is committed to restoring a secure domestic nuclear fuel supply chain capable of producing the nuclear fuels needed to power the reactors of today and the advanced reactors of tomorrow."

President Trump signed an Executive Order on critical minerals that identifies uranium as a critical mineral for the energy sector. The order directs Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer to pursue negotiations addressing reliance on foreign sources for processed critical minerals and references potential price floors to support domestic production. In 2024, the US produced approximately 1 million pounds of uranium compared to annual consumption of approximately 50 million pounds.

Conclusion

Mine Unit 4 development is progressing ahead of the original schedule, with all six header houses expected to be completed by the end of September 2026, approximately two months ahead of the November 2026 reset plan timeline. Acidification is currently underway at two header houses, with a third nearing completion. Central Processing Plant upgrades are progressing on schedule and below budget. Production volumes are expected to increase from the March 2026 quarter onwards. The December 2025 quarterly report will be released in the coming weeks.

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