Peninsula Energy Restarts U.S. Uranium Production

• Peninsula Energy has restarted uranium production at its Lance projects in Wyoming after a year and half of preparation
• The company expects to produce uranium concentrate (yellowcake) by the end of Q1 2025 and ship and sell product to customers in Q2 2025
• 2025 production guidance is 600,000 lbs, ramping up to 1.1-1.3M lbs in 2026 and 1.5-1.7M lbs in 2027
• Peninsula Energy had $68M cash at the end of October 2024, sufficient to complete construction and fund working capital needs
• CEO Wayne Heili is transitioning to a new role as the company moves into commercial production, while Frederick Guerin joins as COO to oversee operations

Peninsula Energy Poised to Become a Leading U.S. Uranium Producer

After over a year of preparation, Peninsula Energy (PEN) has achieved a major milestone by restarting uranium production at its Lance projects in Wyoming. The company is now well-positioned to become a significant uranium supplier to the U.S. and global markets, offering investors an attractive opportunity to gain exposure to the growing nuclear energy sector.

Restarting Production & Ramping Up

Peninsula announced that it has resumed uranium production by pumping uranium-bearing solution from its preconditioned well fields to its processing plant. There, the uranium is captured on ion exchange resins, the first step to producing the final uranium concentrate product known as yellowcake.

According to CEO Wayne Heili, who is managing the transition as Peninsula enters commercial production, the company expects to have its first dried yellowcake available by the end of Q1 2025 as it completes construction and commissioning of its central processing facilities. Product deliveries to customers are targeted for Q2 2025.

"We anticipate having the dry yellow cake sometime the end of February or early March...Then we'll be shipping product and selling to customers sometime, hopefully in the second quarter of next year."

Peninsula has provided production guidance of 600,000 pounds of uranium concentrate for 2025, its first full year of production. Output is forecast to increase significantly to 1.1-1.3 million pounds in 2026 and 1.5-1.7 million pounds in 2027 as the company ramps up and brings additional well fields online. At full capacity, Peninsula's Lance projects have the potential to produce at a rate of 2-3 million pounds per year. Heili remarked:

"2025 will be a full year. But, you know, we should be able to get 600,000 pounds dried and in the can...Then, calendar year 2026, we have a much higher production guidance because the system will be ramping up new areas of well fields and will be a stronger position. We're looking at 2026 producing between 1.1 and 1.3 million pounds."

Interview with Chief Executive Officer, Wayne Heili

Well-Funded to Reach Production

As of the end of October 2024, Peninsula had a robust balance sheet with $68 million in cash. With only $15 million of remaining spend required to complete plant construction, which has been fixed price contracted, the company is expected to have about $50 million on hand as it enters production.

This strong financial position provides Peninsula with ample liquidity to fund its working capital needs, including operating expenses and inventory buildup, as it moves to generating cash flow from yellowcake sales.

"We do feel comfortable that we had the construction paid for, we had the new well fields being constructed and put into operations. We're going to travel down the road quite nicely, watching our spending, of course. But this is the time. This is a very fun, fun, time for the company to be kicking off production and starting to see the opportunity to generate pounds to sell."

Long-Life, Scalable Asset Base

The Lance projects represent a premier U.S. uranium district with a large, long-life resource base. Total measured and indicated resources stand at over 50 million pounds, sufficient to support mining operations for decades to come.Beyond its current operations, Peninsula has additional uranium properties in the area that could potentially feed a central processing facility at Lance, adding further production growth. The company is licensed to produce up to 3 million pounds per year and could expand further based on market conditions. Heili emphasized:

"With over 58 million pounds of resource, this operation, when done right, can run for decades. This is a mine. This is a real mine."

New Leadership for New Era

As Peninsula transitions into a uranium production company, it is making some changes to its leadership team. CEO Wayne Heili, who led the company through the critical project financing, permitting, development and construction phases since joining in 2017, will be moving to a technical role once a new CEO is appointed.

Frederick Guerin, a seasoned in-situ recovery (ISR) mining executive formerly with uranium producer Orano, has joined Peninsula as Chief Operating Officer. Mr. Guerin brings valuable experience in operating and optimizing low pH ISR projects in the U.S. and abroad, which will be instrumental as Peninsula seeks to ramp up the Lance projects.

"I'm really happy to have the depth of the operating experience of Frederick coming in and working with the team that we already have to refine our thought processes and improve the efficiencies of what we're doing."

Well-Timed for Uranium Upturn

With the uranium market showing signs of a major upturn, Peninsula appears well-timed with its advancement into production. Prices for uranium have risen over 50% since early 2020 on the back of COVID-19 related supply disruptions, dwindling secondary supplies, and renewed global recognition of nuclear power as a clean, affordable, base-load power source.

Improved pricing translates into higher potential margins and profitability for uranium producers like Peninsula. Furthermore, U.S.-focused projects should benefit from intensifying efforts by national governments to secure domestic supply chains for critical minerals like uranium. Heili hinted at further expansion potential for Peninsula in a rising uranium market:

"Once we're in production and we're generating cash, this is a company that can look at growth opportunities outside of our immediate neighborhood and what we currently hold."

The Investment Thesis for Peninsula Energy

• Near-term U.S. uranium production with first sales expected in Q2 2025
• Ramping up to a significant production profile of 1.5-1.7 Mlbs U3O8 per year by 2027
• Large, long-life asset base to support future expansion and decades of mining
• Fully-funded to complete construction and reach first production
• Proven management team and strengthened operational capabilities
• Well-timed to benefit from rising uranium prices and favorable U.S. supply dynamics
• Potential for further production growth, margin expansion and industry consolidation

With the re-start of Peninsula Energy's Lance uranium projects in Wyoming positions the company as an emerging production story in an improving uranium market. With a defined path to first production in early 2025, a multi-year ramp up to over 1.5 million pounds per annum, and a long-life, expandable resource base, Peninsula offers investors a compelling opportunity to gain exposure to the nuclear fuel cycle. The company's experienced team, strengthened by the addition of a new COO, and soon to be CEO, along with its strong balance sheet, further underpin its investment appeal. As uranium prices continue to rise and nuclear energy solidifies its role in a low-carbon future, Peninsula appears poised to generate substantial value for shareholders.

Macro Thematic

The uranium market appears to have turned a corner after an extended bear market, with several key drivers positioning the nuclear fuel for a major supply deficit and rising prices. A key element is the growing recognition among policymakers that nuclear energy has an essential role to play in the global transition to net zero carbon emissions.

Major countries are maintaining or expanding nuclear power in their energy mix, translating to steady growth in uranium demand. At the same time, COVID-19 related supply disruptions, declining secondary supplies, and years of underinvestment in new mines have created a widening gap between demand and primary production.

The market appears to be on the verge of a major inflection point, which should see more uranium contracts signed with producers and a strong pricing environment. This bodes well for shareholders of companies that can capitalize on the uranium upswing.