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PENINSULA ENERGY LIMITED 31 DECEMBER 2020 QUARTERLY ACTIVITIES REPORT ASX : PEN Peninsula Energy Limited ABN 67 062 409 303 Directors John Harrison - Non - Exec Chairman Wayne Heili- MD / CEO David Coyne - Non - Exec Director Harrison Barker - Non - Exec Director Mark Wheatley - Non - Exec Director Management Wayne Heili - MD / CEO Ralph Knode - CEO , Strata Energy Inc Ron Chamberlain - CFO / Co Secretary Jonathan Whyte - Co Secretary Head Office Suite 22 , 44 Kings Park Road West Perth WA 6005 Telephone : +61 8 6263 4461 Facsimile : +61 8 6263 4444 Website www.pel.net.au Capital Structure at 31 December 2020 893.35 million shares 24.45 million $ 0.46 2022 options 2.975 million $ 0.51 2022 options Available Cash at 31 December 2020 US $ 8.4 million Market cap at 31 December 2020 A $ 102.7 million For further information please contact : info@pel.net.au LISTED ON X ASX HIGHLIGHTS LANCE PROJECT – MU1A LOW PH FIELD DEMONSTRATION 25 January 2021 Successfully maintained three new full - scale in - situ recovery patterns at a total design flow rate of 75 gallons per minute Groundwater system pH has dropped from above 8.0 to below 4.0 enroute to target 2.0 with bicarbonate now successfully eliminated from the production stream Stronger oxidants , as used in the laboratory studies , will be tested as a means to enhance the rate of oxidation change as necessary to achieve the ideal conditions for uranium solubility Solids management system is performing to expectations with no significant fine solids issues observed ESTABLISHMENT OF U.S. STRATEGIC URANIUM RESERVE US Government approved budget funds the establishment of a US Strategic Uranium Reserve US $ 75 million allocated for uranium purchasing in the initial year of the proposed ten - year undertaking Only US - produced uranium will make up the Reserve , providing a major boost to the US domestic production industry Peninsula is the only ASX - listed uranium company positioned to immediately benefit from the establishment of the US Strategic Uranium Reserve CORPORATE Ongoing cashflow generated through Peninsula's strong , long - term existing contract book - with a net cash margin from sales of US $ 1.4 million realised in the December 2020 quarter Binding purchase agreement to procure 400,000 lbs U3O8 underpins Peninsula's forecast net cash margin of US $ 6 million to US $ 8 million from uranium sales for CY2021 Available cash as at 31 December 2020 of US $ 8.4 million Peninsula is well - funded to advance Lance towards a low - capital resumption of production