Ann: Feasibility Study confirms robust economics of low pH Lance, page-29

I’ve been sloppy with definition scatterbrain – apologies. My “early works” is any cost associated with the Stage 1 production scenario. My estimation of capital cost as follows:

1. Transition cost - $5.3M
2. See Figure 2 of PEN announcement. Wellfield Development CAPEX - $13.36/lb U3O8 x 1.15M lb/annum = $15.4M
3. Construction labour – several M $
4. Delineation drilling – several M $
5. Trunklines – several M $
6. Deep disposal wells – several M $
7. Contingency – several M $

I don’t think PEN will get much change out of $45M to $50M to complete Stage 1.

This would be a good question to put to management at the upcoming investor road show. Don't forget to add what's already been spent to get Lance up to 125k lb/annum. Very expensive uranium plant so far. Another good one would be to ask why a field leach trial is not being undertaken and how sure they are that gypsum formation will not be a problem across the entire deposit (Ross, Kendrick and Barber) considering they have made this statement in the announcement on the back of carbonate analysis of only 14 drill cores. The major reagent cost will be sulphuric acid and since carbonate content of the ore zone dictates sulphuric acid consumption, I think it is prudent for PEN to do a tonne more work on defining a carbonate map of the major ore zones. They should have all the drill cores so it should just be a matter of getting the samples in for analysis. I've said many times, focus on the technical detail. For PEN, nothing else matters.