Slide 1: Construction Completed, Production Ramping Up
CONSTRUCTION COMPLETED PRODUCTION RAMPING UP
Slide 2: Disclaimer & Competent Person
Disclaimer & Competent Person This presentation is provided on the basis that the Company nor its representatives make any warranty (express or implied) as to the accuracy, reliability, relevance or completeness of the material contained in the Presentation and nothing contained in the Presentation
Slide 3: Production Ramping Up & Positioned for Growth
Production Ramping Up & Positioned for Growth Uranium production commenced Strong fundamentals Project expansion underpin growth to lift production in uranium market Experienced board Committed offtake and management above market prices Advancing second project in South Africa 3
Slide 4: Nuclear Provides Significant Baseload in Developed Nations
Nuclear Provides Significant Baseload in Developed Nations United States of America Western Europe Russia Korea / Japan Renewables Other Renewables Other Renewables Other Renewables Other 7% 2% 9% 4% Hydro 0% 3% Hydro 3% 7% 6% 6% Nuclear Hydro Nuclear Hydro 19% Nuclear 16% 16% Nuclear 7% 28% 27% Coa
Slide 5: Disproportionate Mix of CO2 producing Fossil Fuels in Developing Nations
Disproportionate Mix of CO2 producing Fossil Fuels in Developing Nations China India Middle East Eastern Europe Other Nuclear Renewables Other Nuclear Hydro Coal Renewables Other Renewables 0% 2% 5% 2% 3% 2% 0% 4% 1% 3% Hydro Hydro Nuclear Hydro 17% 11% 18% 11% Oil Gas 2% Gas 37% 8% Gas 20% Gas Coal
Slide 6: Uranium Supply/Demand - Today
Uranium Supply/Demand - Today Global Uranium Supply vs. Demand (mlbs/yr) Source: UxC, WNA, IAEA, NIW, Raymond James Ltd. 6
Slide 7: Price Outlook
Price Outlook Near Term Long Term Many reasons to expect price increase Expect increase to $60-70 by 2017-19 in 2016/17: to support required new mines: - Return of utility contracting - Need reasonable risk-adjusted return on new projects well in advance of - Japanese restarts increasing shortfall -
Slide 8: US & EU Utility Contract & Spot Volumes
US & EU Utility Contract & Spot Volumes • Spot price draws the attention of the investment community • Reality is that Term market volumes far outweigh Spot volumes • Pre-GFC and pre-Fukushima utilities committed to buy significant volumes under Term contracts • Term contract activity reduced betwee
Slide 9: Business Plan
Business Plan Peninsula’s plan is to be a uranium producer with multiple sources of supply in established mining economies with low cost, long life mines backed up by a sophisticated, well-recognized marketing arm dealing directly with the utility companies • Production commenced in December 2015 St
Slide 10: Corporate Overview
Corporate Overview Capital Structure 1 year share price & volume history Shares on issue 176m Share price $1.00 Market capitalisation $176m Cash $6.3m Undrawn Inventory Finance US$13.0m Shareholding* % holding Resource Capital Fund VI 21.6% Pala Investments 12.2% BlackRock Funds 9.2% J P Morgan 4.8%
Slide 11: Company Overview - Management
Company Overview - Management Peninsula team has extensive experience in mine development Management Corporate & USA Gus Simpson Strong strategic leader, extensive background in resources, corporate finance and Managing Director/CEO management; 25 years’ experience in USA, Asia, Africa and Australia
Slide 12: Uranium Mining in Wyoming
Uranium Mining in Wyoming Wyoming very supportive of uranium extraction – multiple ISR operations in region 12
Slide 13: Rapid Resource Growth at Lance
Rapid Resource Growth at Lance Lance JORC - 2012 Resource (53.7mlbs U3O8 ) 60 Inferred 50 37 Indicated 37 Measured 40 Million lbs U3O8 30 30 22 16 20 13 11 11 10 7 8 6 4 4 4 4 4 5 0 Mar02010 Jul 2010 Jan 2011 Jul 2011 Mar 2012 Dec 2012 Peninsula Holes 281 600 805 1,106 1,854 2,250 Historic NuBeth JV
Slide 14: Lance – Exploration Target
Lance – Exploration Target Large Resource potential: 70+ years mine life • Current JORC-2012 Compliant Resource 53.7mlbs¹ U3O8 (51.2Mt at 476ppm U3O8) • 13 historic resources • 22 roll fronts extend for a combined linear strike length of 194 miles (312km) • Exploration Target 158-217mlbs U3O8 (169-1
Slide 15: Lance Exploration Target Additional Disclosure
Lance Exploration Target Additional Disclosure Exploration Target The Lance Projects cover a significant proportion of the Powder River Basin Basin Cretaceous sandstones of Wyoming, which are believed to represent an Exploration Target of between 158 and 217mlbs U3O8 which includes 54mlbs of existin
Slide 16: Lance Exploration Target Additional Disclosure
Lance Exploration Target Additional Disclosure Basis of Grade and Tonnage Range Determination With a database of approximately 7,500 drillholes together with several decades of geological research the level of exploration activity on which the Exploration Target is based, is considered to be high. T
Slide 17: Scalable Production Development
Scalable Production Development • Lance Projects JORC - 2012 Code compliant 54 million¹ lb. resource base and licenced mining rate of 3 million lbs. p.a. allows the ability to increase production quickly – No pre-stripping or mining development required – Production wells access the ore body directl
Slide 18: Scalable Plant Layout
Scalable Plant Layout Green = Stage 1 development Blue = Stage 2 & 3 development Red = Optional future equipment to increase CPP capacity to 3.0mlbs pa 18
Slide 19: Lance – Financial Metrics
Lance – Financial Metrics Strong economics: IRR of 36% and average cash cost US$29.16/lb Key financial metrics 1 Progressive cost improvement US$/lb Unlevered NPV 8% US$288m All-in Sustaining Costs 3 Cashflow positive H2 2016 IRR 36% Feasibility Study (Apr 12) $36.60 Stage 1 CAPEX 2 US$33m Optimisat
Slide 20: Production and Cost Profile
Production and Cost Profile Klbs U3O8 Production Profile USD/lb All-in-Costs 2,500 50 Delivery Commitments under Signed Contracts 2,000 40 Inventory 41 1,500 30 30 29 1,000 20 500 10 0 0 2016 2017 2018 2019 2020 2021 2022 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 • Ramp-up of U3O8 production t
Slide 21: Stage 1 Operating Performance to Date - Well Fields
Stage 1 Operating Performance to Date • Well Fields – Injection of O2 and CO2 commenced at 1st header house unit on 2 December 2015 – Production wells are consistently flowing at above the forecast rate of 20gpm – Consistent flow rates have substantially confirmed permeability – Average head grades
Slide 22: Stage 1 Operating Performance to Date - Central Processing Plant
Stage 1 Operating Performance to Date • Central Processing Plant – Operating to design specification – Initial capture rate of uranium on resin in ion exchange columns is exceeding expectations (tested grab sample shows 12 lbs uranium per cu.ft. resin vs forecast of 6 lbs/cu.ft.) – Average U3O8 grad
Slide 23: Sales and Marketing Strategy
Sales and Marketing Strategy • Strategy – Align Peninsula with major utilities requirements – Progressively commit production to term contracts – Optimise revenue & reduce pricing risk • Peninsula Uranium Limited (UK) – Peninsula has established Peninsula Uranium Limited (PUL), a dedicated uranium s
Slide 24: Stage Development – Significant Reduction in Cost per lb
Stage 2 Development – Significant Reduction in Cost per lb for the Group 60 PEN Delivered Contract Price (CY16-CY20) 50 Current Term Price 40 Current Spot Price US$/lb 30 20 10 0 Stage 1 Stage 2 Lance Projects AISC Resource Replacement Sales & Marketing Corporate • Lance Projects All-in Sustaining C
Slide 25: Karoo Projects Overview
Karoo Projects Overview JORC (2012) Compliant resource 56.9m² lbs eU3O8 (23.3Mt at 1,108ppm) • Located in the Karoo region of RSA, approx. 400km to 600km E-NE of Cape Town • Known uranium and molybdenum mineralised province • 7,800 km2 over Permian sandstones • 32,176 hectares of freehold land • Fre
Slide 26: Karoo Projects Scoping Study
Karoo Projects Scoping Study Positive Karoo scoping study; Pre-Feasibility study underway • Scoping Study completed on Karoo Eastern Sector Projects in South Africa – Combined open cast and decline mining – Acid processing route is the most efficient and cost effective – Decision to proceed to Pre-F
Slide 27: Karoo Exploration Target Additional Disclosure
Karoo Exploration Target Additional Disclosure Basis of the Exploration Target The Exploration Target is based on a combination of Exploration Results and proposed exploration programs. Please note that in accordance with Clause 17 of the JORC (2012) Code, the potential quantity and grade of the ”Ex
Slide 28: Karoo Exploration Target Additional Disclosure
Karoo Exploration Target Additional Disclosure This resource tonnage is distributed over a cumulative strike length of 23km representing approximately 0.80 million tonnes/km. The Exploration Target is based on a combination of: • the total cumulative prospective strike length of the undrilled sectio
Slide 29: Investment Highlights
Investment Highlights • Peninsula has now commenced production at the Lance Projects • The Company has a low risk, clear path to production expansion • Significant production volume in Term contracts • Substantial operating margins over the current uranium price • Strong financial support from first
Slide 30: Appendices
PENINSULA ei pect APPENDICES == -—
Slide 31: Appendix - Lance JORC Resource
Appendix 1 - Lance JORC Resource Grade Recovered eU3O8 Mineability eU3O8 Recovery Classification Tonnes (ppm U3O8 (lbs) (lbs) factor (lbs) factor U3O8) 50.4% Measured 495 4,520,159 0.8 3,616,128 0.8 2,892,902 4,142,950 Indicated 11,532,135 497 0.8 10,112,761 0.8 8,090,209 12,640,951 M+Ind 15,675,085
Slide 32: Appendix - Karoo JORC Resource
Appendix 2 - Karoo JORC Resource JORC compliant Resource March 2014 Large resource potential – 100+ year mine life Classification eU3O8 (ppm) Tonnes eU3O8 eU3O8 CUT-OFF (million) (ppm) (million lbs) Indicated 600 8 1,242 21.9 Inferred 600 15.3 1,038 35 Total 600 23.3 1,108 56.9 Classification Sector
Slide 33: Resin Loading Commissioning
Resin Loading Commissioning Resin Transfer Equipment 33
Slide 34: Reverse Osmosis Plant Commissioning
Reverse Osmosis Plant Commissioning Reverse Osmosis Equipment 34
Slide 35: Ion Exchange Column Commissioning
Ion Exchange Column Commissioning 35
Slide 36: Plant and Well Fields Commissioning
Plant and Well Fields Commissioning Flowing water through plant 36
Slide 37: NRC Pre-Production Inspection
NRC Pre-Production Inspection Completed 25 November 37 NRC inspection inside CPP
Slide 38: Lance Stage 1 Construction Complete
Lance Stage 1 Construction Complete Pipe racks and ion exchange column Ion exchange columns Piping inspection Piping and valves from waste tank to DDW 38
Slide 39: Lance Stage 1 Construction Complete
Lance Stage 1 Construction Complete Completed CPP building 39
Slide 40: Lance Stage 1 Construction Complete
Lance Stage 1 Construction Complete Resin transfer water pumps installed in CPP Chemistry lab Controls for carbon dioxide storage tank Spectrometer unit in chemistry lab 40
Slide 41: Well Field Development
Well Field Development Trunkline from CPP to well fields Inside header house Oxygen injection system Inside completed header house at first mining unit Main trunk-line installed from CPP to wellfields 41
Slide 42: Well Field Development Drilling
Well Field Development Drilling Production well drilling 42