the story so far

The criticism of the drill results has been mostly based on misunderstanding. So we can discuss the facts rather than distortions of them, here is a summary of the drill results so far.

22 May 2008 - Initial stated resource from historical drilling:

4 stacked roll fronts
Ross: avg 13ft @ 0.05-0.06% for a total of 6-8 million lbs
Lance target: 33-53 million lbs

7 Jul 2008 - After independent review, World Industrial Minerals revises to:

22 stacked roll fronts identified
Lance target: 50-76 million lbs
Ross: avg 13ft @ 0.05-0.07% for a total of 8-12 million lbs
Barber: avg ?ft @ 0.07-0.09% for a total of 4-6 million lbs

1 Oct 2008 - First drilling update (2-3 weeks after commencement):

Interval of 7ft @ 1490ppm returned from RMR0006
Best grade of 1ft @ 4800ppm within above interval

14 Oct 2008 - Second drilling update (note this is only another 2 weeks ;-):

Best grade of 4.5ft @ 1210ppm from RMRD0003
Interval of 10.5ft @ 700ppm from RMR0015

3 Nov 2008 - Drilling program successfully concluded:

21 holes exceed a combined grade thickness product of 0.3 ft % Uranium
Mineralisation encountered in all holes

Global Financial Crisis stopped drilling program

21 Jul 2009 - Positive Core Tests and drilling at Ross re-commences:

Excellent permeability and porosity results achieved from tests of drill cores from 2008.
Drilling re-commences at the Lance Projects targetting extensions of mineralisation at Ross and Barber

4 Aug 2009 - High Grade Uranium Intersections Expand Known Mineralisation at Ross Project

Drilling of 11 holes completed
Drilling has expanded area of known mineralisation
Best grade of 8.5ft @ 1000ppm from hole RMR0026
Best interval of 11ft @ 700ppm from hole RMR0024

"In addition, Peninsula is pleased to report that the drilling completed to date has been successful in expanding the area of known mineralisation and is expected to incrementally increase the uranium endowment at Ross. The current program will continue to step out into areas of wider drill spacing and areas where there is potential to expand the area of the high grade zones."

"Drilling at the Barber project ... will begin in September 2009 also targetting extensions of the historic mineralisation."

If you look at the track record, there's been a steady flow of successes and upgrades and the more the company drills the more Uranium they discover. What other Uranium producer hits mineralisation every time they drill? This is PEN's big advantage, the historical data means they already know where to drill so the hit rate should be expected to be extremely high. When Gus says he expects to increase the uranium endowment at Ross on the back of drilling results that show it's already increasing, I think there's good cause to believe him.

Based on the track record with drilling updates, I'm expecting the next one around 19 August.

dt