rcr research significant re-rating anticipated

Our request has occurred Mick.

No relations to Gus here...Just plain undeniable, factual data and conservative valuation. Excellent project comparison on page 2 and displays just how good Lance is and that based only on the aniticpated intial jorc of 12-18M/lbs puts PEN way ahead of the rest.

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In part...

Resource Capital Research
22nd March 2010

Peninsula Minerals Limited
PEN is advancing the prospective Lance ISR project in Wyoming. Key resource and economic data are expected 2Q10. BFS expected 1H11; production potential 2012. A significant re-rating of PEN's share price is anticipated as project parameters are confirmed 2010.

Focused on uranium - 2010 total exploration and
evaluation budget A$25m; A$20m earmarked for Lance.

Lance ISR project (WY): potential production 2012;
Production target 1.5mlbspa U3O8; PEN est. total opex
US$26/lb; initial capex US$60m. NPV breakeven
~US$30/lb U3O8.

Lance project regional exploration target 70 to 90mlbs U3O8 grading 0.05 - 0.07%. Ross and Barber target 12 to 18mlbs U3O8. 4 rigs on site.

Initial JORC resource and PFS expected 2Q10.

Karoo Project: shallow, high grade mineralisation identified from surface to 40m - exploration target of 90 to 150mlbs U3O8 grading 0.12 to 0.14%.

Karoo Project: Resource definition drilling 1H10 - 10
priority drill targets; scoping study expected 2H10. Mid term target 30mlbs U3O8 2012.


Investment Comment:
PENs valuation is driven by the Lance ISR uranium project with production visibility, potentially 2012. While key resource and project data are yet to be confirmed (expected 2Q10) robust project economics are indicated with a breakeven project NPV of ~US$30/lb U3O8. At the current long term price (US$60/lb U3O8) and assuming an initial resource (mid target range) of 15mlbs grading 0.065, total opex US$26/lb, initial capex US$60m, NPV is over US$120m (10% r/i), with upside to anticipated further regional exploration success. PENs share price has potential to be re-rated to $0.06-0.08/share near term as project milestones are met 2Q10. WY is a uranium friendly state, combined with PENs use of experienced external permitting consultants, and new streamlined permitting timeframes in the US, positions the company well to fast track regulatory approvals.