why its now exciting (again)

I can definitely sense it. The uranium space is waking up and its serious this time. We saw bursts of life throughout 2011 post Fukushima, but all were followed by lower lows. A very disappointing time and a very acute learning experience for all involved. We have all read the reports last year that supported our investment decisions and finally i think the time has come where U stocks are ready to be re-evaluated.

I want to look at the Macro environment first as this is what ultimately determines our level of success.

1) Countries have re-affirmed their Nuclear programs - the big 3 will drive us into the future - these being China, India and the United States. Supporting us are the Arab nations, Americas and Asia. Will Australia be next (woah imagine)

2) Uranium spot price has stabilised around $52 - i feel a breakout is on the crisp. A breakout to around $60 will show unprecedented buying as the herd rushes in so to not miss out. Spot prices prior to Fukushima were peaking at around $75.

3) Long Term price has stabilised at around $68 - It was around $74 before Fukushima. This should escalate over time and will benefit our earnings per share (in 2013 we will be producing imo)

4) Supply/Demand: Supply is drying up with mines not coming online as planned, existing mines are flooding and overall expansion of mines or new mine developments are being limited by funding difficulties. Also, the Megatons to Megawatts program ceases to exist in 2013 where the Russians have been supplying the U.S with the majority of their required U. In regard to Demand (that affects PEN greatly), the U.S import around 95% of their U and cannot rely on other countries for U as these mines are being snapped up by the Chinese and Russians - you do the math.

5) The NRC and U.S Government supports Uranium Mining and is implementing changes to expedite permitting processes, it is clear that they support U development in the U.S.

6) Money is returning to the U Sector, after months of shorting, bots and genuine sellers seeking other opportunities, it seems to be stopping. We have had a good couple of months of uptrend on nearly all U stocks. The games cannot go on for to much longer and buyers have returned.

I will hopefully sum up Peninsula's positive aspects without leaving out too much and im sure others can add later on. Before i start though, i really do believe that Peninsula is well position for the biggest change this year as it takes the next step from being an explorer to a producer. Most likely will be the biggest price mover this year in U.

1) Management have returned to their old selves PRofessionals and are keeping traders / investors happy.

2) DFS and EES confirm our Wyoming projects are feasible.

3) Various opportunities exist to reduce our Capex and Opex (via reduction in DDW work and Vanadium credits not included in the DFS) in turn increasing our NPV.

4) Permitting tracking well. The Permit to Mine is due soon. NRC's Requests For Additional Information (RAI) was due to be submitted in December 2011, if we see this added to ADAMS it will help give us an indication of where we stand, obviously a small amount of RAIs is positive and furthermore, the Company throughout 2011 prepared responses in anticipation of expected RAIs based on research of other permit applications and consultations with the NRC. This process that will become apparent over the next few weeks will be key to determining our SML success for early production.

5) Karoo is tracking well, three sites being 22, 29 and 45 are being used to target a JORC 30mlbs by the end of this year. FYI, Peninsula only have a JORC 41mlbs in Wyoming. This feat will prove very lucrative speculative investors as a PFS (Feasibility Study) will follow in 2013. Already, we are finding shallow U in sandstone indicating that conventional mining should be economic. Data from previous owners no doubt has re-assured management that our 30mlbs target as obtainable in 2012.

Adding to my comment re 41mlbs in Wyoming, investors need to remember that our business plan there is to start mining in Ross and then grow our resource inventory. This is a common practice in Wyoming and ISR mining. Permits for other projects adjacent to Ross will be added easily via addendums to the Ross Permit. For newbies, we are targeting up to 145mlbs of U in Wyoming and we have currently drilled only 10% of the area.

6) Last year i asked our Managing Director if we had a replacement for Nucore. He told me that not too much could be said, but the Company's preferred option is still in play and he re-affirmed this prior to the end of 2011. Funding for the Ross Project i believe is very close and its arrangement will be a welcomed surprise to the market.

7) A decision to Mine is due in March which no doubt will be a YES! But the real fun begins as we commence site establishment and procurement.


In summary, an exciting year ahead for the Company for sure and coupled with a surge in U prices and buyer's sentiment we, in my humble opinion will return where we used to be in the not too distant future.



Good luck to all and have fun!