There's been some speculation regarding PEN's order book, re our email (see below) Wayne stated

(Re govt massive stimulus spending)
"Three million pounds split evenly among four companies would be 750,000 pounds each or an annual revenue of $37.5 million. That would be substantially better than current revenues for any of the four companies."

"ForPeninsula, anything in that ballpark added to our existing contract portfoliofor 2021 through 2030 would be very accretive to the companies motivation toramp the Lance Project up to the 1 to 2 million pound per year production rate that brings with itsubstantially lower unit costs and all in sustaining costs."

====================================================
Obviously with the rising Spot price, PENS order book would continue to grow substantially.

Email from Wayne was written prior to the announcement by the NFWG , so Wayne got his wish.

Nuclear Fuel Working Group

MM

You asked:“Is this 750,000 poundseach or an annual revenue of $37.5 million something that is on the table orsomething you have put forward for discussion , also is the price of $50/ poundsomething that is on the table or something you have put forward fordiscussion ?” RESPONSE: Each of thesefigures are selected for my examples based on my informed expectations.

You asked:“from what you have said you need a price of $50/pound to incentivize production?,assuming we will soon reach $50/pound, how long will it take and how muchwill it cost to re-start uranium production ? RESPONSE: I sincerelyhope that you are correct with respect to soon reaching $50/pound. Theconcluding paragraph of our press release shares insight on what the Companywill evaluate in making an investment decision. Our prior disclosureshave guided that we could resume production activitieswithin 6 months of an investment decision and that our low pH transformationcapital costs are expected to be in the $5M to $6M range.

Sincerely,

Wayne Heili

From: MMartin
Sent: 17 April 2020 11:49
To: PM Info <[email protected]>
Subject: RE: Trump has earmarked on a US$150 million per year

Wayne

Thanks for your detailed reply.

You wrote “Threemillion pounds split evenly among four companies would be 750,000 pounds eachor an annual revenue of $37.5 million.”

Is this 750,000pounds each or an annual revenue of $37.5 million something that is on thetable or something you have put forward for discussion , also is the price of$50/ pound something that is on the table or something you have putforward for discussion ?

Greatannouncement today, congratulations , you wrote ““We are already in an excellent position to rapidly re-start uranium production” , from what you have said you need a price of$50/pound to incentivize production ?,assuming we will soon reach $50/pound,how long will it take and how much will it cost to re-start uranium production?

Thanks

From: PM Info[mailto:[email protected]]
Sent: Wednesday, 15 April 2020 9:06 PM
To: MMartin
Subject: RE: Trump has earmarked on a US$150 million per year

Dear MM

Thank youfor your interest in Peninsula Energy and for the thoughtful question withrespect to US President Trump’s budget request. Please note that due to ourrecent significant reductions in corporate costs, we may not be able to respondas quickly to all email enquiries as would ordinarily like to.

I agreethat in light of the massive stimulus spending that governments around theworld are approving right now, $150 million sounds rather small. But, it is intended for direct purchase of US domesticallyproduced uranium and it would have a big impact in kick starting the US uraniumproduction industry. As we sit today, there are no actively producing facilities in the US. If you assume apurchase price of $50/pound (high enough to incentivize production), the US could purchase 3 million pounds per year with the $150M/annum. There are currently four companies including Peninsula who have developed facilities and the near term ability to ramp up production to meet that demand. Three million pounds split evenly among four companies would be 750,000 pounds each or an annual revenue of $37.5 million. That would be substantially better than current revenues for any of the four companies.

ForPeninsula, anything in that ballpark added to our existing contract portfoliofor 2021 through 2030 would be very accretive to the companies motivation toramp the Lance Project up to the 1 to 2 million pound per year production rate that brings with itsubstantially lower unit costs and all in sustaining costs.

Sincerely,

Wayne Heili

MD/CEOPeninsula

From: MMartin
Sent: 14 April 2020 08:49
To: PM Info <[email protected]>
Subject: Trump has earmarked on a US$150 million per year

For the attention of

WAYNE HEILI

Wayne

Is the earmarked $US150 MILL a year just for the purchase of locally produced Uranium, or is it also to be used to financially assist companies such as PEN?

A purchase by the US Govt of $US 150 MILL really doesn’t sound that much, will it really make a difference to Coy such as PEN.

Thanks for your help.

Regards MMartin

https://kalkinemedia.com/au/blog/uranium-prices-are-up-whats-driving

“The revival of USDomestic Market: US President Donald Trump hasearmarked on a US$150 million per year for total ten years,i.e. a total budget of around ~US$1.5 billion to aid the domestic Uraniumproducers for nuclear power generation. The domestically purchased Uranium is astrategy to reduce the Country’s dependency on imported Uranium which stands atmore than 90% of total Uranium consumption in the US.”