Peninsula Energy's Lance Uranium Plant Resumes Production as Mine Unit 4 Records Strong Early Grades

• The Lance Central Processing Plant (CPP) has resumed uranium precipitation and dried yellowcake production following the replacement of faulty agitator assemblies in both precipitation tanks.
• Rectification costs were covered under the existing Engineering, Procurement, and Construction contract as a warranty claim, with no additional capital outlay required.
• Wellfield operations continued without interruption throughout the repair period, preserving wellfield integrity and supporting the ongoing production ramp-up.
• Mine Unit 4's first active header house has averaged uranium grades of 63.9 mg/L since entering production, exceeding historical averages recorded at Lance.
• CY2026 production guidance of 400,000 to 500,000 lbs remains unchanged, with installed plant capacity of 2.0 million lbs per annum.

Peninsula Energy Limited (ASX: PEN; OTCQB: PENMF) is an Australia-based uranium mining and exploration company developing a long-term uranium production business centred on its 100%-owned Lance Uranium Project in Wyoming, USA. Lance is one of the largest independent uranium projects in the United States and resumed dried yellowcake production in September 2025. The project is continuing to ramp up under a revised production and operational plan that encompasses the progressive deployment of low-pH operations, revised wellfield design, and optimised production sequencing. Once at full production, Lance will establish Peninsula as a fully independent, end-to-end producer of yellowcake and a domestic supplier of uranium in the United States.

Precipitation Circuit Restored to Full Operation Following Successful Agitator Replacement

The Lance CPP's precipitation circuit has returned to service after replacement agitator assemblies were installed and commissioned in both precipitation tanks. Installation-related deficiencies were identified in the original agitator units after five months of commissioning and production activities, first disclosed in the company's ASX announcement of 19 February 2026. Replacement units were sourced directly from the original manufacturer, installed on site, and successfully commissioned.

Rectification costs were treated as a warranty claim under the Engineering, Procurement, and Construction contract. Before the outage, the precipitation circuit had recorded average efficiencies of approximately 99% during the early ramp-up phase. The company stated it is confident the CPP is well positioned to support sustained production ramp-up through CY2026.

During the outage, Peninsula advanced several additional optimisation and completion activities across the CPP. These included progress on protective coating works for ion exchange and elution tanks across Phases 1 and 2, and the installation and commissioning of a small reverse osmosis unit to improve process water quality in the filter press wash cycle. The reverse osmosis unit is intended to reduce sodium levels in the final product, supporting the achievement of final product specification.

Mine Unit 4 Records Head Grades of 63.9 mg/L, Surpassing Historic Lance Averages

Mine Unit 4 (MU-4) is the next stage of production development at Lance. Uranium-bearing solution from Header House 14 was directed to the CPP in late March 2026, and uranium from Header House 14 is now being captured on resin in the ion exchange columns, which the company described as a key milestone in MU-4's development. Head grade refers to the concentration of uranium in the solution being fed into the plant.

Since entering production, the average head grade from Header House 14 has been 63.9 mg/L. This exceeds the average head grades recorded from any header house during prior operations at Lance using alkaline chemistry. The company noted that early operating data continues to demonstrate encouraging uranium grades and flow rates, reinforcing confidence in the low-pH in situ recovery (ISR) operating strategy. ISR is a method of extracting uranium by circulating a solution through the ore body underground, without conventional mining.

The 63.9 mg/L average was reached within one week of entering production and after only three pore volumes, which is a measure of the volume of solution cycled through the ore body. The company expects peak average header house grades after four to five pore volumes. Acidification of additional header houses within MU-4 is continuing in line with the Production Reset Plan, supporting the medium and longer-term production profile at Lance.

CY2026 Production Guidance of 400,000 to 500,000 lbs Remains Unchanged

Peninsula confirmed that the precipitation circuit outage does not affect its CY2026 uranium production guidance of 400,000 to 500,000 lbs. Wellfield operations continued throughout the rectification period, preserving wellfield integrity and supporting the ongoing ramp-up. The Lance CPP's installed production capacity of 2.0 million lbs per annum provides what the company described as significant operational flexibility.

Managing Director and Chief Executive Officer George Bauk commented: 

"The successful recommencement of precipitation and yellowcake production at the Lance CPP is an important milestone for the Company. The team responded quickly and effectively to resolve the installation issue, while maintaining wellfield operations and progressing other optimisation activities across the plant."

Managing Director and Chief Executive Officer George Bauk added: 

"With the first header house from MU-4 now delivering uranium-rich solution to the CPP and the processing plant back online, we are well positioned to continue ramping-up production and delivering on our CY2026 guidance. I would like to commend the Peninsula team for their hard work and planning throughout the repair of the CPP as we continue our ramp-up to become a key domestic supplier of uranium within the United States."

Outlook

The recommencement of CPP operations follows the completion of the agitator replacement at no cost to the company, with wellfield operations maintained throughout the repair period. MU-4's first header house is now active and processing uranium-bearing solution through the CPP. Near-term activities include the continued acidification of additional MU-4 header houses, completion of remaining plant optimisation works, and continued production ramp-up in line with CY2026 guidance. The company's full-year production guidance of 400,000 to 500,000 lbs remains in place.

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