Strata Secures Funding to Produce Uranium in 2015

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Funding the Road to Production

Strata Energy (Strata), a wholly-owned subsidiary of Peninsula Energy Limited (Peninsula), is pleased to announce that Peninsula has recently secured A$69.4 million (~US$57 million) to complete stage 1 construction at the Ross Project. With funding now fully in place, Strata will become Wyoming’s next uranium producer upon completion of the initial wellfields and Central Processing Plant (CPP) in 2015.

The stage 1 construction is part of Strata’s scalable plant design, a revised set of development plans to more economically respond to market conditions while capitalizing on one of the largest JORC-code-compliant uranium resources in North America. Under the first stage of construction, Strata will complete the initial wellfields and a reduced, scalable CPP with a production capacity between 500,000 – 700,000 lbs U3O8 per year. While smaller in scale, the initial construction still includes all components for mining, protection, restoration and remediation activities, but is designed to be easily expandable in response to market conditions.

This scaled approach allows Strata to more economically capitalize on current, short-term market conditions, while establishing the infrastructure for future expansion/development – all for the purpose of maximizing return on such a large resource.

Stage 1 construction of the project is the culmination of years of rigorous regulatory permitting and internal due diligence to refine plans, operational requirements and strict permit/license conditions. These requirements embody both Strata’s values and the regulatory stipulations to protect health, safety and the environment at the Ross Project. As Strata proceeds with construction and into production, it will be with continued adherence to all appropriate environmental precautions and under the conditions established by stringent regulatory oversight.

Production: A Boon to Local, State Economies

Funding for construction and production at the Ross Project also marks an important note for the economies of Crook County and Wyoming. Although Strata’s exploration, development and other preliminary activities have generated jobs and revenue, construction and production at the project will have significantly higher economic gains for the local communities and the State of Wyoming.

Stage 1 activities, including purchasing equipment, construction of the plant, and development of wellfields, will generate both jobs and sales tax revenue for the local economy. Plant and facility construction will also generate higher property tax revenues to Crook County. Once Strata initiates production, Wyoming and Crook County will also begin to reap an entirely new revenue stream from the project: generation of severance and ad valorem tax revenue.

In short, securing funding for the project marks a new phase in the economic impacts of the Ross Project. While the construction activities will jump start the economic benefits of the project, the scalable plant design and ability to respond economically to the market will help keep those benefits in the community for the long term.

Strata is proud to continue to grow involvement and benefit in the local communities through the realization of the Ross Project.

Licensing Board Dismisses Contention Against Ross Project

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As expected, the US Atomic Safety and Licensing Board (ASLB) has dismissed one of the contentions (the Contention) challenging environmental characterization and analysis of potential impacts for Strata’s Ross Project. The dismissed contention challenged Strata’s analysis of cumulative impacts, but the ASLB determined the Contention did not account for additional analysis completed during the permitting process.

According to the ASLB’s ruling, “…the Board finds there are no genuine material factual disputes remaining regarding this contention and grants the SEI and staff requests this contention not be the subject of further consideration in this proceeding.”

Remaining contentions focus on concerns about other potential environmental impacts, most notably potential impacts to aquifers in the project area. At an upcoming hearing to address the three remaining contentions, Strata will highlight the robust nature of project planning, the stringent permitting process required to obtain the Source Materials License (SML) issued by the NRC in April 2014*, and government reports concluding that similar operations have adequately protected human health and environment.

Strata meanwhile can continue construction of the Central Processing Plant and installation of production wellfields at the Ross Project in accordance with the licenses and permits issued by the relevant regulatory bodies.

Gus Simpson, Executive Chairman of Strata’s parent company Peninsula Energy, stated, “We are pleased that the ASLB has seen fit to dismiss this contention. We are confident that the upcoming hearing or related proceedings on the issuance of the license by the NRC will confirm the validity of the SML and its associated conditions.”

*Source and 11(e).2 Byproduct Material License issued by the US Nuclear Regulatory Commission (NRC) to Strata Energy Inc.

NRC Issues Final License to Peninsula/Strata Energy for Ross Project

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Peninsula Energy Limited (ASX:PEN) (Peninsula) is pleased to announce that the United States Nuclear Regulatory Commission (NRC) has issued the Combined Source and 11e.(2) Byproduct Materials License (SML) to Peninsula’s wholly-owned subsidiary Strata Energy Inc. for the Lance Central Processing Plant (CPP) and Ross Permit Area (RPA) in Wyoming, USA (the Project).

Issuance of the SML concludes the licensing process for the three million pound per annum capacity CPP and the Ross Project. Peninsula now has the capacity to produce uranium from the largest 2012 JORC-Compliant in-situ recovery resource in the USA (54 million pounds U3O8). The SML is the culmination of a four-year permitting process involving multiple local, state and federal regulatory agencies.

In October 2013 Peninsula began site preparation for the CPP, fabrication of long lead time plant & equipment and the construction of access roads and other infrastructure. With the SML now in hand Peninsula can move to finalise construction of the CPP and commence the installation of production well-fields at the Ross Project which will allow for the production of uranium.

Peninsula Executive Chairman Gus Simpson stated, “The Board would like to congratulate our management and permitting team in Wyoming on the issuance of the SML which concludes four years of dedicated and detailed permitting work. The Company is very pleased to complete this process as it has now cleared the path to production”.

Strata Energy Receives Supplemental Environmental Impact Statement

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Peninsula Energy Limited (Peninsula) is pleased to announce that the United States Nuclear Regulatory Commission (NRC) has issued the final Supplemental Environmental Impact Statement (SEIS) to Peninsula’s wholly-owned subsidiary Strata Energy Inc. for the Lance Central Processing Plant (CPP) and Ross Permit Area (RPA) in Wyoming, USA (Lance Projects).

With the SEIS now issued, Peninsula expects the Source and Byproduct Material License (SML) to be granted on March 31, 2014. This would conclude the licensing process for the Lance Projects and Peninsula will be in a position to complete full construction and commence production at the Lance Projects.

The SEIS is a comprehensive review of the project-specific environmental aspects and mitigation measures of the CPP and RPA as required under the National Environmental Policy Act (NEPA). It analyses the environmental effects of the proposed action at the RPA, the environmental impacts of alternatives to the proposed action, and mitigation measures to either reduce or avoid adverse effects of the proposed action. Impacts assessed include land use; historical and cultural resources; visual and scenic resources; climatology, meteorology and air quality; geology, minerals and soils; water resources; ecological resources; socioeconomics; environmental justice; noise; traffic and transportation; public and occupational health and safety; and waste management. Issuance of the final SEIS formalises NRC’s determination that no major environmental impacts preclude the completion of licensing.

Peninsula Executive Chairman Gus Simpson stated, “We are very pleased to receive the SEIS. With the grant of the SML, expected shortly, Peninsula will have concluded the licensing process and have a clear path to production.”

Strata Energy Breaks Ground on Ross Project

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Ross Project Groundbreaking

October 25, 2013 – Strata is pleased to announce the start of pre-license construction activities at the Ross uranium project near Oshoto. Construction activities include earthworks necessary to prepare roadways and building sites for the administration and central processing plant facilities.

With pre-license construction underway, Strata will be poised to move quickly to construction of the central processing plant and initial production wellfields upon issuance by the US Nuclear Regulatory Commission (NRC) of the Source and 11(e).2 Byproduct Material License (SML). Issuance of the SML is currently projected for early March 2014, with commencement of production projected for the second half of 2014.

The initiation of construction at Ross follows a four-year permitting process to ensure that the Ross Project meets the stringent criteria of local, state and federal regulatory agencies.