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QUARTERLY ACTIVITIES REPORT ( ASX : PEN ) PENINSULA ENERGY LIMITED 26 April 2021 31 MARCH 2021 QUARTERLY ACTIVITIES REPORT HIGHLIGHTS LANCE PROJECT - MU1A FIELD DEMONSTRATION • Test modifications have delivered favourable results Modified test patterns improve response time Target pH levels are close to being achieved ○ ○ New oxidant is delivering results Uranium in recovery solution increases Pilot uranium recovery circuit has been activated Field Demonstration expected completion in 1H - 2022 CORPORATE • • • • Peninsula entered into binding purchase agreements of 450,000 lbs U3O8 for delivery in CY2022 Uranium sales activities forecast to secure net cash margin of US $ 8 million to US $ 9 million in CY2022 CY2021 and CY2022 sales underpin funding for completion of MU1A field demonstration and other optimisation activities ahead of a production restart decision at the Lance Project Commencement of trading on the OTCQB Venture Market under the ticker symbol " PENMF " on February 17 , 2021 LANCE PROJECT , WYOMING Low - pH Field Demonstration Update – Test Adjustments Deliver Favourable Results Peninsula continues to advance its MU1A low - pH field demonstration at the Company's flagship , 100 % owned Lance Project ( " Lance " ) located in Wyoming , USA . The Lance field demonstration of low - pH In - Situ Recovery ( ISR ) , which started in August 2020 , is designed to provide key data on pattern configurations , pH adjustment , acid consumption , solids handling and oxidants ahead of a decision to restart production at the Project . Following the update on 26 February 2021 , Peninsula implemented a number of test modifications which have now delivered favourable results . Revised Pattern Configuration Three contiguous full - scale ISR patterns ( injection wells feeding a centrally located production well ) are operating within a previously unmined area of Mine Unit 1 ( collectively " MU1A ” ) . The chemical parameters within the original field demonstration patterns responded to injection , but at a slower than optimal rate . Peninsula adjusted the pattern configuration by installing and activating two new injection wells between each pair of recovery wells ( see Figures 1A and 1B ) . The result has been a considerably improved response for the key chemical parameters . www.pel.net.au 1