Ann: Quarterly Activities Report, page-56

How sure are you that the majority disagree with my analysis of the situation?

If all opinions are welcome, how about you listen a bit and cease with the pointless insults and amateur psychology?

1) Clearly PEN is in a technical bind and need to change tack - I commend their acknowledgement of the problem (albeit very late) and support their efforts to try something else. That does not mean I think it will work sufficiently well to pull them out of the quagmire. My view is well documented.

2) I've changed my mind recently. Previously I was of the opinion that technical issues would remain despite the implementation of the low pH scenario and this formed a major component of my criticism of PEN. I still think technical issues will be prevalent but my recent research leads me to agree with arsenic, who thinks regulatory approval will be more difficult. One of the reasons cited in historical literature for abandoning the acid route was because of the more difficult restoration of water quality. Alkaline leaching is very selective, whereas acid leaching is nondiscriminatory, all sorts of crap is leached into solution. Tis is a non-trivial issue.

3) I would drop the lab tests and get a 6 month field leach trial under way. This is the only way to design an ISR project. Run the test long enough to allow potential hydraulic issues to manifest (as they have in the alkaline chemistry).

4) I would stop comparing acid lab tests with alkaline operating data. It's an apples with oranges comparison - be honest with your shareholders. Compare acid field leach trial results with operating data. That's a more realistic comparison and will go a long way to reduce technical risk (if the acid route shows to be significantly better).

5) PEN should confirm that the change in extraction chemistry has no impact on the ability to toll treat the resin at Uranium One's Irigaray central processing plant. It's not difficult to change reagent suite to strip the resin but what is the cost impact. Further, it is common to use different resin for alkaline and acid processing. So the resin inventory most likely requires replacement. All this will come out in the wash in the soon-to-be-released PFS - PEN need to pull finger and get this study issued. PENNER's need some good (hopefully) news. Unsurprisingly, I'm not convinced of the statement that capital requirements will be minimal. What is "minimal" anyway? $1 million? $10 million? Let's wait and see, but I'm calling CR within this financial year.

Hope you consider my comments useful.