Peninsula Energy Secures US$56 Million to Advance Lance Uranium Project

Peninsula Energy Secures US$56 Million to Drive Lance Uranium Project to Full-Scale Production

Peninsula Energy (ASX: PEN) has announced a US$56 million funding package designed to accelerate mine development and production growth at its flagship Lance Uranium Project in Wyoming, USA. The capital raise combines equity and a strategic convertible note facility, and is underpinned by the continued backing of diversified investment house Washington H. Soul Pattinson & Co ("Soul Patts") — signalling strong institutional confidence in Peninsula's growth trajectory.

The Funding Package at a Glance

Peninsula Energy secures US$56 million funding for Lance Uranium Project through a structured capital raise across three components:

The equity raise is priced at A$0.35 per share, representing a 10.3% discount to the last traded price of A$0.39 and a 17.2% discount to the 5-day VWAP of A$0.42. Both the Placement and Entitlement Offer are fully underwritten by Canaccord Genuity (Australia) Limited and Shaw and Partners Limited, removing execution risk for the Company.

"This Funding Package provides the impetus for Peninsula to move swiftly into the next phase of growth at the Lance Project. With ramp-up activities advancing and the acidification of Header House 14 progressing ahead of schedule and encouraging initial head grades, we are focused on laying the foundations for our next step-change in production growth through the development of Mine Unit 5 at Kendrick." — George Bauk, Managing Director & CEO

Soul Patts Steps Up as a Strategic Backer

A standout feature of this funding package is the depth of Soul Patts' commitment. Furthermore, the diversified investment house has not simply provided debt — it has taken a multi-pronged position across the capital structure:

• US$30 million convertible note debt facility (3-year term, senior secured, first ranking security)
• ~US$7.5 million (A$10.4 million) firm commitment across the Placement and Institutional Entitlement Offer
• A$4.0 million sub-underwriting of the Retail Entitlement Offer
• Total support from Soul Patts: up to A$14.4 million across the Equity Raise alone

This level of integrated support — spanning equity, sub-underwriting, and a convertible note — reflects a strong institutional vote of confidence in Peninsula's operational progress and long-term strategy.

Key Terms of the Soul Patts Debt Facility

Where the Money Goes: A Capital Allocation Breakdown

The funds raised, combined with existing cash reserves as at 31 March 2026, are earmarked for a clear set of operational and strategic priorities:

The capital plan directly supports Peninsula's Horizon 3 growth strategy — the company's framework for scaling Lance toward full-scale production. In addition, it eliminates the existing US$4.2 million corporate debt facility, meaningfully strengthening the balance sheet ahead of the growth phase.

Understanding the Lance Project's Mine Unit Strategy

What Is In-Situ Recovery (ISR) and Why Do Mine Units Matter?

The Lance Project uses a mining method called In-Situ Recovery (ISR), where a low-pH acidic solution is injected underground through wells to dissolve uranium from the ore body. The uranium-bearing solution is then pumped to surface for processing into yellowcake (U₃O₈).

Because ISR projects extract uranium from discrete underground zones, production is organised into Mine Units (MUs) — discrete wellfield areas that are developed, acidified, and progressively depleted over time. As one Mine Unit approaches depletion, the next must be ready to take over, ensuring production continuity.

This is precisely why the timing of MU-5 development is critical. Mine Unit 4 (MU-4) is expected to be depleted in late 2027. Without MU-5 development commencing now, Peninsula would face a production gap — something this funding package is specifically designed to prevent.

Key Terminology to Understand

• U₃O₈: The form in which uranium is typically sold, commonly called "yellowcake"
• Acidification: The process of injecting acid into a wellfield to begin dissolving uranium ore
• Header House (HH): A surface structure that distributes injection and extraction flows across a wellfield
• Low-pH operations: Peninsula's selected leaching chemistry, using sulphuric acid as the primary lixiviant

Production Guidance Maintained — But Cost Outlook Revised

Peninsula is maintaining its near-term production guidance despite operational challenges encountered during the ramp-up phase:

However, the Company has revised its cash operating cost guidance upward:

The increase in operating costs is attributed to several operational factors:

1. Lower-than-planned production from MU-3 compared to the August 2025 Reset Plan
2. Higher acid usage during production from Mine Unit 1 (Header Houses 1, 2, and 3)
3. Higher acid price assumptions
4. Elevated wellfield maintenance costs, including additional labour, equipment, and process modifications related to gas build-up in HH14

On the gas build-up issue — which had been impacting flowrates — the Company has noted that operational adjustments implemented by the site team have delivered recent improvements, providing increased confidence that the technical fundamentals of low-pH leaching chemistry are performing effectively at Lance.

Development Timeline and Key Milestones

Peninsula Energy secures US$56 million funding for Lance Uranium Project with an accelerated development schedule across multiple workstreams:

The 12-month development-to-acidification lead time for a new Mine Unit — encompassing monitoring well drilling, delineation work, and regulatory approvals — underscores why commencing MU-5 now is operationally essential to bridge the production transition from MU-4.

Director and Management Participation

Management and board alignment with shareholders is demonstrated through direct participation in the raise:

• CEO George Bauk — intends to take up his full entitlement under the Entitlement Offer
• Chair David Coyne — intends to take up his full entitlement
• NED Keith Bowes — subscribed for A$25,000 (subject to shareholder approval at EGM)
• NED Tejal Magan — subscribed for A$20,000 (subject to shareholder approval at EGM)

Why Investors Should Watch Peninsula Energy

Peninsula Energy sits at a genuinely critical inflection point in its development lifecycle. The Lance Project has resumed production, with Header House 14 acidification tracking ahead of schedule and encouraging initial head grades. Moreover, Peninsula Energy secures US$56 million funding for Lance Uranium Project, positioning the Company to move beyond current operations and execute on the next leg of its production growth strategy.

Several factors make this an important development to track:

• Operational momentum: Lance recommenced production in September 2025 and is actively ramping. The recent resolution of wellfield gas build-up issues adds confidence to the technical execution.
• Scaled-up development pipeline: MU-5 and MU-6 represent a structured, sequenced approach to production growth that — if executed on schedule — could meaningfully expand output volumes toward Horizon 3 targets.
• Institutional backing: Soul Patts' multi-layered participation — equity, sub-underwriting, and a US$30 million convertible note — is a material indicator of institutional confidence in Peninsula's asset quality and management execution.
• Balance sheet cleanup: The simultaneous repayment of the US$4.2 million existing debt facility simplifies the capital structure ahead of the growth phase.
• US uranium positioning: Lance is one of the largest independent uranium projects in the United States, and Peninsula is strategically positioned to become a domestic supplier of uranium — an area of increasing relevance given broader global energy dynamics.

"Peninsula Energy has secured the capital it needs to bridge the critical gap between current ramp-up operations and the next phase of production growth at Lance. With institutional backing from Soul Patts, a fully underwritten equity raise, and a clear capital deployment roadmap targeting Mine Units 5 and 6, Peninsula is executing the building blocks of a scaled US uranium operation. With MU-5 development commencing in the current quarter and production guidance maintained through CY2027, investors should monitor the company's operational delivery against this well-funded development plan."

This article is based on Peninsula Energy's ASX announcement dated 14 May 2026. All figures are sourced directly from that announcement. USD/AUD conversion at 0.72 as stated therein.

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