Slide 1: Peninsula Energy Poised to Be Largest U.S. Uranium Producer
PENINSUL A ENER GY P OISED TO B E L A R GEST U . S . UR A NIUM PR O D U CER A $ 6 0 . 0 MILLIO N INSTIT U TIO N A L PL A CEMEN T A ND SPP EQ UIT Y R A ISE PR ESEN TATIO N N o v e m b e r 2 0 23 NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES ASX:PEN; OTCQB:PENMF 1
Slide 2: Important Disclosures
Im p o r t a nt D i s cl o s u re s This Presentation contains summary information about the current activities of Peninsula Energy Limited (the “Company”) as at the date of this Presentation. The information in this Presentation is of a general nature and does not purport to be complete. This Prese
Slide 3: Disclaimer & Competent Person
D i s cl a i m e r & Co m p et e nt Pe r s o n The distribution of this Presentation in jurisdictions outside Australia may be restricted by law and any such restrictions should be observed. In particular, this Presentation may not be distributed or released in the United States. Any failure to comp
Slide 4: Cautionary & Inferred Resources Notice
Ca u t i o n a r y & In fe r re d R e s o u rc e s N ot i c e The August 2023 Life of Mine plan (LoM) completed for the Ross and Kendrick Production Areas within the Lance Projects includes Measured and Indicated resources, and based on historical experience at Lance, utilizes a resource conversion
Slide 5: Investment Highlights
In v e s t m e nt Hi g hli g h t s • Flagship Lance ISR Project located in a tier-one mining and uranium jurisdiction World Class • Lance is a long-life operation, with excellent resource and life-of-mine growth upside Asset • Peninsula will be the largest US-based and fully independent, end-to-end
Slide 6: Section 1 – Equity Raising Overview
SECTIO N 1 – EQ UIT Y R A ISIN G OV ER V IE W PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 6
Slide 7: Equity Raising Overview
EQ UIT Y R A ISIN G OV ER V IE W • A$60.0 (US$39.01) million equity raise comprising: • A$50.0 million Institutional Placement (“Placement”) to issue 666.7 million new fully paid ordinary shares in the Company at A$0.075 per share (“New Shares”); and Offer Structure and Size • A$10.0 million Share P
Slide 8: Sources and Uses of Funds
S o u rc e s a n d Us e s of Fu n d s – A $ 6 0 . 0 m ( US $ 39 m1 ) Set out below is the indicative sources and uses of funds until the Company is forecast to achieve first production in December 2024 Uses of Funds Total US$m1 ▪ A$60m (US$39m)(pre-Offer costs) enables Peninsula to Pre-Production CA
Slide 9: Indicative Timetable
In di c a t i v e T i m et a b l e Process Date Trading halt and Placement Offer opens Before open on Thursday, 16 November 2023 Trading halt lifted and announcement of results of Placement Before open on Monday, 20 November 2023 Extraordinary General Meeting (EGM) to approve issue of Placement Shar
Slide 10: Group Funding Analysis
Gro u p Fu n di n g A n a ly s i s • US$95 million additional funding required for PEN Group to reach sustainable positive cash flows • Incorporating all group costs, ramp-up costs, contingency and escalation allowance • Includes discretionary cash buffer allowance of US$12.5 million • Existing cash
Slide 11: Group Funding Solution
Gro u p Fu n di n g S o l u t i o n Equity raise, current cash balance and liquid inventory ensures development • Offer proceeds of A$60.0 million, Cash balance of US$12.5 million (as at 30 Sept 2023) • Inventory of 210,000lbs will be monetized by satisfying nearer term customer delivery obligations
Slide 12: Construction Progress at Lance
Co n s t r u c t i o n Pro g re s s a t La n c e Plant Construction Update • Engineering firm contracted to complete detailed engineering and procurement work for the process plant expansion • Long lead items for the structure of the plant building expansion ordered • Site construction to complete t
Slide 13: Section 2 – Uranium Market Overview
SECTIO N 2 – UR A NIUM M A R K ET OV ER V IE W PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 13
Slide 14: Potential to Become Largest U.S. Producer
Pot e nt i a l t o B e c o m e La rg e s t U . S . Pro d u c e r Uranium Concentrate Production in U.S. Nuclear power gaining momentum as a critical part of the green energy mix 6.0 U.S. Uranium demand in Million Lbs • Growing global recognition of the important role 2022 exceeded 40Mlbs nuclear pow
Slide 15: Uranium Price Continues to Strengthen
Ura ni u m Pr i c e Co nt i n u e s t o St re n g t h e n Uranium Price • Supply/demand imbalance remains 90 • Robust growth forecasts for 80 Spot Price – uranium demand due to the critical US$77.25 /lb 70 requirement of nuclear energy in meeting global decarbonization 60 targets 50 US$/lb • The rep
Slide 16: Strong Leverage to Uranium Price
St ro n g Le v e ra g e t o Ura ni u m Pr i c e Peninsula’s Sales Contract Book • Contract portfolio balances base-escalated and market pricing mechanisms providing both downside protection and Spot Uranium v. Realised Price1 upside linkage to uranium spot price 110 • Contracted sales represent 1/3r
Slide 17: Section 3 – The Lance Projects
SECTIO N 3 – T HE L A N CE PR OJECTS PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 17
Slide 18: Lance – A Premier Uranium Project & Location
La n c e – A Pre mi e r Ura ni u m Pro j e c t & Lo c a t i o n Located in Wyoming USA, a leading US uranium extraction jurisdiction PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 18 NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
Slide 19: The Lance Projects
T h e La n c e Pro j e c t s • Ross Production Project Area • Fully licensed Uranium ISR production facility • Estimated Resource of 5.9 Mlbs U3O8 • 4.1 Mlbs estimated to be produced • 2 previously operated Mine Units (MU-1 and MU-2), with potential for an additional 2-3 Mine Units • MU-3 under deve
Slide 20: Lance Resource Estimate
La n c e R e s o u rc e Es t i m a t e One of the largest US Uranium ISR Projects known Lance Projects Resource Estimate as at 31 Dec 20221 Classification Tonnes U3O8 Grade U3O8 ✓ 53.8Mlbs U3O8 of JORC (2012) Resources1 (million) (Mkg) (ppm U3O8) (Mlbs) ✓ Exploration Target of 104 – 163 Mlbs eU3O8 b
Slide 21: Timeline to Operational Restart
T i m e li n e t o O p e ra t i o n a l R e s t a r t • The current Lance plant and wellfield facilities at Ross were constructed in 2015 & operated from 2016 through mid-2019 • Current plant capacity of 0.82 Mlbs U3O8 per year loaded on resins, but licensed to produce up to 3.0 Mlbs U3O8 per year •
Slide 22: Production Profile & Plant Flow Rate
Pro d u c t i o n Prof il e & Pl a nt Fl o w R a t e • 2.0 Mlb p.a. production plant provides the platform for a faster ramp-up to substantial rates • Production profile based on detailed mining, metallurgical and scheduling factors • 2025 production level projected at ~1.1 Mlbs • Steady state produ
Slide 23: Ross and Kendrick Project Level CAPEX Estimate
R o s s a n d Ke n d r i c k Pro j e c t Le v e l C A PEX Es t i m a t e Remaining CAPEX to First Production (Dec’24) US$ M Remaining Plant CAPEX 19.3 Remaining General CAPEX 5.1 53.4 Remaining Wellfield CAPEX 25.4 CAPEX Contingency 3.6 Ramp-up CAPEX to Positive Cash Generation (Aug’25) General CAPE
Slide 24: Lance Unit Cost Outcomes
La n c e Uni t Co s t O u t c o m e s ( Un - e s c a l a t e d ) Direct Operating Cost (“C1”) • Direct OPEX of US$ 21.69/lb U3O8 includes all project level non-CAPEX costs and contingencies from July 2023 to end of production • Restoration and Rehabilitation costs are not included in Direct OPEX US$
Slide 25: Key Financial Outcomes of August 2023 LoM Plan
Key Fi n a n ci a l O u t c o m e s of AU GUST 2023 LO M PL A N Project remains economically attractive and financial returns are consistent with 2022 DFS expectations Key results include : LoM Project Revenue (Real) Payback period of 3.5 years US$ 988M from August 2025 Project forecast to become ca
Slide 26: Section 4 – Significant Exploration Upside
SECTIO N 4 – SIGNIFIC A N T EXPLO R ATIO N UPSID E PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 26
Slide 27: Lance Exploration Upside
Past Exploration La n c e Ex p l o ra t i o n Up s i d e • Exploration Target of 104 – 163 Mlbs eU3O8 Ross Area • Based on a combination of past exploration results and proposed exploration programmes1 • Explored by Nuclear Dynamics and Bethlehem Steel Peninsula’s Exploration Success • 4,700 drill h
Slide 28: Trend Mapping - Resource Upgrade at Ross & Kendrick
Tre n d M a p p i n g - R e s o u rc e Up g ra d e a t R o s s & K e n d r i c k Completing close-spaced drilling in areas where resources are currently mapped linearly, has the potential to increase both the quality and the quantity of the known resources Example Area within Kendrick Ross, and to a
Slide 29: New High-Grade Satellite Deposit - Dagger
N e w Hi g h - Gra d e S a t e lli t e D e p o s i t - D a g g e r ✓ 6.9Mlbs U3O8 of JORC (2012) Inferred Resources1 ✓ >2x Grade of U3O8, compared to Lance Resource ✓ Mineral rights and data set established through in-house efforts for only US$800K (or US$0.12/lb U3O8) ✓ Opportunity to extend Lance
Slide 30: Section 4 – Corporate Overview
SECTIO N 4 – C O R P O R AT E OV ER V IE W PENINSULA ENERGY ASX:PEN; OTCQB:PENMF 30
Slide 31: Experienced Management Team
Ex p e r i e n c e d M a n a g e m e nt Te a m Experienced in design, construction and operation of Uranium ISR facilities in Wyoming, USA Wayne Heili Rachel Rees Managing Director Executive Director – Finance and Corporate Affairs Mr Heili has spent the bulk of his 35+-year professional career in t
Slide 32: Corporate Overview
Co rp o ra t e O v e r v i e w 1,257m A$0.12 A$150.9m Nil US$12.5m 210 klbs Shares on Issue Share Price Market Term Debt Cash U3O8 Inventory (15 Nov 2023) (15 Nov 2023) Capitalisation (30 Sept 2023) (30 Sept 2023) Board of Directors Share Price Performance 70 0.25 Mr John Harrison Non-Executive Chai
Slide 33: Independent, Long-Term Uranium Production
In d e p e n d e nt , Lo n g - Te r m Ura n i u m P ro d u c t i o n Flagship Lance Growing Lance A Robust ISR Project in Size and Scale Production Plan One of the largest US Resource growth potential Detailed and resilient Life of uranium projects, with a through further exploration Mine (LoM) plan
Slide 34: Sustainability Focus
S u s t a i n a b ili ty Fo c u s Peninsula’s Annual Sustainability Report is built around the pillars of Employees, Environment, Social and Governance (“EESG”) ✓ Business Ethics • 2023 Report Sustainability highlights: • Recipient of Wyoming Governors Safety Award (2 consecutive ✓ Community years),
Slide 35: Contact Details
Co nt a c t D et a il s REGISTERED OFFICE Units 32/33, Level 3 22 Railway Road Subiaco, Western Australia 6008 Australia Phone: +61 8 9380 9920 www.pel.net.au FURTHER INFORMATION Wayne Heili Managing Director/CEO US Office Phone: +1 (307) 467-9401 email: info@pel.net.au 35
Slide 36: Appendix – Resources
A p p e n di x 1 – R e s o u rc e s Lance Projects Resource Estimate as at 31 December 20221 Classification Tonnes U3O8 Grade U3O8 (million) (Mkg) (ppm U3O8) (Mlbs) Measured 3.5 1.7 489 3.8 Indicated 11.3 5.5 492 12.2 Inferred 36.2 17.2 474 37.8 Total 51.0 24.4 479 53.8 Dagger Resource Estimate as a
Slide 37: Appendix – Risk Factors
A p p e n di x 2 – R i s k Fa c t o r s Uranium Mining Risks The Company's uranium project is located in the State of Wyoming, USA. Whilst exploration and mining for uranium is currently permitted in Wyoming there is no guarantee that it will be permitted in the future. Low pH Uranium Recovery The C
Slide 38: Appendix – Risk Factors
A p p e n di x 2 – R i s k Fa c t o r s Resource Estimates Resource estimates are expressions of judgement based on knowledge, experience and industry practice. As further information becomes available through additional fieldwork and analysis, the estimates are likely to change. Foreign Exchange Ri
Slide 39: Appendix – Risk Factors
A p p e n di x 2 – R i s k Fa c t o r s Third Party Risk If the Company fails to meet its obligations in terms of product quantity, quality or timing, there may be a risk that contracts are terminated. This may have a material adverse effect upon the Company's financial performance and results of op
Slide 40: Appendix – Risk Factors
A p p e n di x 2 – R i s k Fa c t o r s Contractual Risk The Company has and intends to enter into numerous contracts including supply contracts, and service and equipment contracts. All contracts carry risks associated with counter-parties’ performance of their obligations, including the timeliness
Slide 41: Appendix – International Offer Restrictions
A p p e n di x 3 – Int e r n a t i o n a l O ffe r R e s t r i c t i o n s This Presentation does not constitute an offer of new fully paid ordinary shares (“New Shares”) in the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any pers
Slide 42: Appendix – International Offer Restrictions
A p p e n di x 3 – Int e r n a t i o n a l O ffe r R e s t r i c t i o n s Hong Kong WARNING: This document has not been, and will not be, registered as a prospectus under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) of Hong Kong, nor has it been authorised by the Secu
Slide 43: Appendix – International Offer Restrictions
A p p e n di x 3 – Int e r n a t i o n a l O ffe r R e s t r i c t i o n s United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of
Slide 44: Appendix - Lance Exploration Target Additional Disclosure
A p p e n di x 4 - La n c e Ex p l o ra t i o n Ta rg et A d di t i o n a l D i s cl o s u re Exploration Target1 The Lance Projects cover a significant proportion of the Powder River Basin mobs Cretaceous sandstones of Wyoming, which are believed to represent an Exploration Target of between 104 an
Slide 45: Appendix - Lance Exploration Target Additional Disclosure
A p p e n di x 4 - La n c e Ex p l o ra t i o n Ta rg et A d di t i o n a l D i s cl o s u re Basis of Grade and Tonnage Range Determination The level of exploration activity on which the Exploration Target is based is considered to be high due to the combination of a database of approximately 7,500