Peninsula Energy Withdraws CY2026 Guidance Following Slower Lance Wellfield Ramp-Up

• Peninsula Energy Limited has withdrawn its CY2026 production guidance of 400,000 to 500,000 lbs U3O8, citing slower than expected wellfield flow rates, mainly across Mine Unit 1, Mine Unit 3 and the early header houses of Mine Unit 4.
• CY2027 production guidance of 500,000 to 600,000 lbs U3O8 remains unchanged.
• Production support has been scaled down in Mine Unit 1 and Mine Unit 3, with resources concentrated on Mine Unit 4, which is expected to account for around 60% of forecast production under the revised plan.
• Header House 14 recorded average head grades of 50 to 60 mg/L U3O8 between May and June 2026, more than double the historical average from alkaline leach operations in Mine Unit 1 and Mine Unit 2.
• Peninsula has begun transitioning its wellfield drilling programme to an owner operated model, with its first company owned drill rig delivered on 20 July 2026.

Peninsula Energy Limited (ASX:PEN) is an Australia-based uranium producer focused on its wholly owned Lance project in Wyoming, United States, and is the only ASX listed uranium company with direct exposure to US production and the domestic uranium market. Lance restarted uranium production in late 2024 and began producing dried yellowcake at its central processing plant in September 2025. Once in full production, the project is intended to establish Peninsula as a fully integrated producer of yellowcake supplying the US uranium market.

CY2026 Production Guidance Withdrawn Due to Slower Than Expected Wellfield Ramp-Up

Peninsula Energy has withdrawn its CY2026 production guidance after the ramp-up of low-pH in-situ recovery (ISR) operations at Lance progressed more slowly than anticipated. The company had expected Mine Unit 4 to offset weaker output from Mine Unit 3, but gas generation within sections of the wellfield took longer than expected to resolve, resulting in lower solution flow rates than planned. Gas generation refers to the build-up of gas within the underground wellfield during acid leaching, which can restrict the flow of the uranium bearing solution and slow recovery.

Rather than reissue a single guidance figure, Peninsula has published a production sensitivity table showing a range of CY2026 outcomes based on different combinations of flow rate and head grade, spanning approximately 150,000 to 290,000 lbs U3O8. For the second half of the year, the company expects combined flow rates of 600 to 850 gallons per minute from Mine Unit 1 and Mine Unit 3, with separate targets set for each header house within Mine Unit 4.

Management has attributed the shortfall to wellfield hydraulics, solution flow and chemistry optimisation, rather than to the quality of the uranium resource. The sensitivity table provides investors with a defined range of production outcomes tied to measurable flow rate and grade inputs for the remainder of CY2026.

Mine Unit 4 Prioritised Over Mine Unit 1 and Mine Unit 3 With Six Header Houses Advancing Toward CY2027 Target

Following a review of operating performance, Peninsula has scaled down production support in Mine Unit 1, which has adequate flow but low head grade, and Mine Unit 3, which has been constrained by both lower flow and grade. Resources have instead been concentrated on Mine Unit 4, which incorporates wellfield designs and operating methods developed since the switch to low-pH ISR mining. The company expects this to simplify operations, lower acid and operating costs, and improve the deployment of personnel and equipment.

Mine Unit 4 comprises six header houses at different stages of development. Header House 14, the most advanced, is targeting a flow rate of 375 gallons per minute by the end of July 2026, while Header House 16, which began production in June, is targeting 330 gallons per minute over a similar timeframe. Header Houses 15 through 19 are progressing through acidification, construction or commissioning, with target flow rates of 400 to 650 gallons per minute and expected commencement dates extending into early 2027.

The scale down in Mine Unit 1 and Mine Unit 3 does not reduce the resource base of those areas. The company describes the decision as a reallocation of resources toward Mine Unit 4, which accounts for around 60% of forecast production under the reset plan.

Transition to Owner Operated Drilling Model and Cost Reduction Initiatives Supporting Long-Term Project Economics

Peninsula has begun transitioning its wellfield drilling activities to an owner operated model, moving away from reliance on external contractors. The company's first company owned drill rig was delivered on 20 July 2026, and Kent Swick, founder and former managing director of Swick Mining Services, has been engaged to review drilling operations and develop a strategic plan going forward. Following a trial period of approximately one month to confirm performance and cost benefits, Peninsula intends to extend the model across its entire drilling programme.

The in-house drilling model is expected to provide access to modern, higher capacity equipment, greater scheduling flexibility and improved equipment utilisation, while reducing drilling costs. This is part of a broader cost improvement programme covering wellfield infrastructure, reagent use, field maintenance efficiency and automation, aimed at lowering the project's operating cost base.

Peninsula Energy Managing Director and CEO George Bauk said:

"While we are naturally disappointed that production has ramped up more slowly than originally anticipated and that we will not achieve CY2026 production guidance, the year has delivered valuable operating experience and important insights as we continue the transition of Lance into a large-scale low-pH ISR operation."

He added:

"The decision we have taken to scale down the poor performing MU-1 and MU-3 and focus our efforts on MU-4 reflects a disciplined allocation of resources towards the area of the project with the greatest long-term value creation potential."

Milestones and Next Steps

Peninsula's near-term programme centres on the header house sequence within Mine Unit 4, with Header House 15 targeting a production flow rate by September 2026 and Header Houses 17 through 19 progressing through construction and acidification into early 2027. A final investment decision on the development of Mine Unit 5 is expected in September 2026, following completion of de-risking work including delineation drilling and pump testing. The company holds a cash balance of US$47.1 million as at 17 July 2026, supported by a recently secured US$56 million funding package. CY2027 production guidance of 500,000 to 600,000 lbs U3O8 remains unchanged.

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