FURTHER CASH REQUIREMENTS NEEDED?, page-5

Uranium mining is a capital intensive endeavour so more cash will definitely be needed to ramp up moving forward.

Term contracting will more than likely begin later this year at which time there is a good chance we'll start seeing the spot price ~$50-$70.(Global uncovered demand and strucural production deficit should see to that) Providing PEN can demonstrate that the low pH method will improve recovery rates then that capital will be easier to obtain.

So far, PEN's contract book moving forward to 2030 consists of 5.5m lbs, around 2.7m of that is open source with the other 2.8m from production with delivery at PEN's discretion. If they can reach nameplate production of 1m lb per year by end of 2021 then that gives them 8-9 years of around 8m lb so minimum 5.2m lb can be sold at prevailing spot price so there is scope for PEN to be able to borrow against that revenue.

The big question mark remains on the new pH methodology and whether it will improve on the poor recovery rate with the alkaline approach.

We'll see.

Cheers all.