Ann: Shareholder Update, page-2

Good update from Mr Henning - key paragraphs including:

I am pleased to provide this briefing both as an introduction to myself and as a summary of the next stages of the Company’s development. I write this with particular concern for the Company’s share price performance over the last 18 months, its market capitalisation and to reiterate our commitment to present and future shareholders.

Having previously worked as a geologist and in the field of technology commercialisation followed by my tenure at Extract Resources and Stonehenge Metals, I intend to lead Peninsula in becoming a prominent part of the Korean battery industry.

Since my appointment on January 14th, I have visited Korea with the Company’s recently appointed non-executive Director, Young Yu and met with the 5 members of staff that are core to our operations there. With them and Danny Noonan, our executive director and head of geology, we have reviewed all our projects in Korea and assessed their viability with regard to our business strategy.

The new PSM Board will continue the focus on defining the exploration targets at Gapyeong and Yongwon as well as other tenements with the clear objective of developing a natural resource base on the Korean peninsula. This will enable the Company to work downstream with Korea’s most advanced technology companies – particularly those companies that are involved in the production of batteries and energy storage systems. With the Korean experience of Young Yu and myself, we will work with our Korean Directors, shareholders and staff to build relationships with Korean end-users which will be essential once PSM is in a position to move on to the resource development phase.

To this end, PSM will focus immediately on the known areas of graphite occurrence and will investigate other areas on the Korean peninsula that offer the opportunity to engage with the Electric Vehicle (EV) and battery market. This will be by exploration, merger or acquisition to expand our capabilities in both the upstream and downstream stages of battery manufacture.

With regard to our other projects, lithium, base metals and gold – it is unlikely that these will incur major investment from the Company, and partners will be actively pursued to ‘farm-in’ to what are seen as projects that have good upside potential but do not fit into the present strategy.

The Korean peninsula offers an extremely lucrative target for Western companies that can deliver world renowned industry expertise and excellence. In particular Australian companies are welcome there because of their mining experience and their acknowledged best practice in exploration, mining, environmental management and community consultation. The Korean quest to extend innovation, commercialisation and technological development is a perfect fit in respect of working alongside foreign companies that understand their business and cultural background and ambition.