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QUARTERLY ACTIVITIES REPORT ( ASX : PEN ) PENINSULA ENERGY LIMITED 28 July 2021 30 JUNE 2021 QUARTERLY ACTIVITIES REPORT HIGHLIGHTS LANCE PROJECT - MU1A FIELD DEMONSTRATION • Field operations continue to run consistently with improvements across all key focus areas Oxygen Reduction Potential level approximately 400 mv supporting higher uranium production grades O ○ O Recovery composite stream uranium grade at approximately 40 ppm Rate of acid addition reduced to a rate sufficient to maintain current pH levels Performance of ion exchange uranium recovery processes improved with the upward trending uranium concentration , achieving loading results that are consistent with typical levels for low pH lixiviant applications Continued evaluation of several alternative uranium capture / recovery process options which may improve upon standard ion exchange performance CORPORATE • . • • • Completion of A $ 13.4 million Placement at 15c , well - supported by new and existing international and domestic institutions Funds raised from Placement used to purchase 300,000 pounds of uranium at a price of US $ 31.35 per pound ○ Strategic purchase of uranium assists Peninsula as it transitions the Lance Project to a low pH ISR operation Completion of A $ 2 million Share Purchase Plan ( SPP ) at 15c , after receiving over A $ 7.6 million in applications Sale of 200,000 pounds of U308 at a realised cash price of US $ 49.57 per pound U308 generating a net cash margin of US $ 3.5 million realised in July 2021 Available cash of US $ 6.7 million at 30 June 2021 plus 309,507 pounds of uranium in converter accounts valued at US $ 9.9 million LANCE PROJECT , WYOMING Low - pH Field Demonstration Update - Test Adjustments Deliver Favourable Results Peninsula continued to focus on the progression of the MU1A low - pH field demonstration ( " field demonstration " ) at the Company's flagship , 100 % owned Lance Project ( " Lance " ) located in Wyoming , USA . The 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 . During the June 2021 quarter the Company continued to take actions across key focus areas to enhance performance , including further changes to the configuration of the injection and recovery well patterns . The field operations have run consistently during the quarter and the response has indicated favourable trends . www.pel.net.au 1