Page 1

QUARTERLY ACTIVITIES REPORT ( ASX : PEN ) PENINSULA ENERGY LIMITED 29 October 2021 30 SEPTEMBER 2021 QUARTERLY ACTIVITIES REPORT HIGHLIGHTS CORPORATE • • Available cash of US $ 7.4 million at 30 September 2021 Sale of 200,000 pounds of U308 at US $ 50.35 per pound , generating a net cash margin of US $ 3.5 million in October 2021 310,000 pounds of uranium in converter accounts at 30 September 2021 , with a market value of US $ 13.1 million ( US $ 42.20 per pound U308 ) LANCE PROJECT - MU1A FIELD DEMONSTRATION • Field Demonstration has been operating successfully for over one year ○ ○ Target flow and solution chemistry achieved and maintained Delivering meaningful and valuable results • • O Key learnings include well pattern configuration criteria Operations yielding improved uranium grades ○ O о O Composite grade of around 50 ppm U308 during the quarter One production well has yielded 80 to 100 ppm U3O8 during the quarter Uranium grades indicate that Lance is better suited to the planned low - pH solutions than previous alkaline based solution Additional test pattern commissioned at the end of the quarter has achieved highest grade results to date Pilot scale ion - exchange system yields uranium for further processing Bench - scale evaluation of advanced uranium recovery technology nearing conclusion Permitting enhancements and modifications progressed LANCE PROJECT , WYOMING MU1A Low - pH Field Demonstration – 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 has been operating for more than one year and has yielded significant additional results during the quarter . Prior to the quarter , Peninsula highlighted the achievement of targeted solution chemistry ( principally pH level and oxidant concentration ) and corresponding elevated uranium production grades . Importantly , field operations have continued to run well , complimenting the improvement in uranium grade . The project team has continued to focus on technical and operational concepts that have potential to enhance future performance , particularly changes to the configuration of the injection and recovery well patterns . www.pel.net.au 1