Jon Bey, CEO of Standard Uranium Ltd. (TSXV:STND) and Wayne Heili, MD of Peninsula Energy Ltd. (ASX:PEN)

Recording date: 25th April 2024

The uranium market is poised for significant growth, driven by increasing global demand for clean, reliable nuclear energy. As the world seeks to combat climate change and meet rising electricity needs, nuclear power is emerging as a critical part of the solution. This creates a compelling opportunity for investors to position in highquality uranium companies that are advancing projects towards production.

Two companies that stand out in this regard are Standard Uranium and Peninsula Energy. Standard Uranium is a project generator focused on the prolific Athabasca Basin in Canada. The company has assembled a portfolio of drillready projects and is actively advancing them using a capitalefficient model. By partnering with other companies to fund exploration, Standard Uranium is able to minimize dilution while retaining upside exposure to potential discoveries.

As CEO Jon Bey explains, Standard Uranium's approach is to extensively derisk projects before seeking partners. This includes staking prospective ground, identifying drill targets, securing permits, and signing agreements with First Nations. The result is a turnkey operation that is highly attractive to partners and investors alike. With four projects set to be drilled this year using other companies' money, Standard Uranium offers multiple shots on goal for a major discovery.

Peninsula Energy, meanwhile, is focused on bringing its Lance project in Wyoming into production. Lance hosts a robust resource of 54 million pounds, with the potential for significant expansion. The project benefits from existing infrastructure, a licensed production area, and a supportive jurisdiction. Peninsula is currently investing in a plant expansion that will enable it to produce up to 2 million pounds per year, with initial production targeted for late 2024.

As CEO Wayne Heili points out, Peninsula's allin sustaining costs are expected to be in the low $40s per pound. With the uranium spot price currently around $90 per pound and longterm contracts being signed at even higher levels, Lance is wellpositioned to generate strong margins and cash flow. The company has a clear path to production and a management team with a track record of delivering results.

Both Standard Uranium and Peninsula Energy are led by experienced executives who have a deep understanding of the uranium market. This is critical in an industry where expertise and relationships are essential for success. With a combined decades of experience in exploration, development, and operations, the management teams at these companies are wellequipped to navigate the challenges and opportunities ahead.

From a macro perspective, the uranium market appears to be in the early stages of a prolonged bull market. Years of low prices have led to supply cutbacks and underinvestment, even as demand has continued to rise. This has created a structural deficit that is only now starting to be reflected in the market. As utilities scramble to secure longterm supply and financial players enter the market, the potential for further price appreciation is significant.

In this environment, investors should look for companies with highquality assets, experienced management teams, and a clear path to value creation. Standard Uranium and Peninsula Energy check all of these boxes, offering exposure to both exploration upside and nearterm production. While patience may be required as the uranium bull market plays out, the potential rewards for positioning early could be substantial.

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