Peninsula Energy Limited provided an update on its Lance Projects ("Lance" or "the Projects"), located in Wyoming, USA. In November 2022, the Company decided to restart uranium production operations at Lance and is currently in the process of completing pre-production capital construction and preparation activities. Throughout the current quarter, the project team has been preparing the existing production plant and wellfield facilities for low pH ISR operations.

Substantial progress has been achieved in the wellfield areas where the preparation of Mine Unit One (MU-1) has been completed. MU-1 has a flow capacity that exceeds the early requirements for commercial production operations. Wellfield transformation activities have advanced to Mine Unit Two, and three contract drilling rigs are actively preparing the new Mine Unit Three (MU-3).

Construction activities within MU-3 are planned for commencement during the upcoming North American summer months. A construction firm has been contracted and is currently working at site to install large capacity sulfuric acid and hydrogen peroxide storage and delivery systems. The first of two large volume acid storage tanks has been delivered and will be available for installation immediately after the concrete foundations are ready. Delivery of the second acid tank has been delayed due to inclement weather at the fabrication facility, but the delay is not expected to impact operational activities.

Portions of the existing uranium recovery plant also require conversion to accommodate the new process chemistry. The plant pumping, piping and ion exchange systems are being rebuilt to be compatible with the low-pH solutions. The Company has been preparing the plant for the installations while it awaits the delivery of key pump systems and new ion-exchange resins.

A contractor has been selected to complete the required plant piping system modifications and is available to commence work as the materials are received in the coming weeks. Capital expenditures related to the low-pH facility transition have been tightly controlled and closely monitored. The Company reported that the overall capital expenditures for the project transformation are closely tracking with the August 2022 DFS projection, and no material deviation is anticipated.

The DFS projected CAPEX of USD 8.4 million for the low pH transition and Stage-1 Upfront costs. Operational Update and Guidance: A discreet portion of MU-1 is currently being operated and preconditioned using the chemical delivery systems previously installed for field demonstration activities. The limited pre-production activities in MU- 1 have been successful and are meeting operational expectations.

Well patterns are being pre-acidified and readied for production operations. The process stream is not being directed to the production plant at this time, and no uranium is being recovered in the plant circuits. When the new chemical storage and delivery systems are available for use, MU-1 will be fully activated.

The large volume acid storage and distribution systems are expected to be available for use around the end of April 2023. At that time, the limited scale pre-production flows will be expanded to commercial scale wellfield pre-conditioning operations. Uranium concentrations are expected to build throughout the pre-conditioning operations, and it is presently projected that the process plant will be activated for commercial uranium production activities around mid-year 2023.

The Company's sales portfolio includes a commitment for the delivery of Lance production in Fourth Quarter of calendar year 2023. The initial production derived from Lance operations will be sold into existing contracts with supportive pricing structures. Project Licensing: The Ross Project Area within the Lance Projects is fully approved for commercial low-pH ISR operations.

Mine Units 1, 2 and 3 are all located within the Ross Project Area. Additional mine units may also be located at Ross. Ross contains an estimated resource of 5.88 million lbs U3O8 of which 4.1 million lbs are estimated to be produced in the future.

In late December 2022, the Company submitted applications to the State of Wyoming regulatory authorities to expand the licensed area of the Lance Projects to include the Kendrick Area. The State regulators have subsequently completed an acceptance review and deemed the applications to be administratively complete. The next action by the regulators is to complete the first-round technical review.