Uranium Royalty Corp. holds two separate royalty interests on the Lance Project, termed below as the 4% Lance Royalty and the 1% Lance royalty.

The 4% NSR

This royalty interest is equal to 4% of the gross income from the underlying property without any deduction provided that such royalty cannot exceed 7% of the gross income from the underlying property when combined with royalties paid to the State of Wyoming.

The royalty was created pursuant to a mineral lease and transfer agreement between Strathmore Resources (US) Ltd., Strata Energy Inc. and Peninsula Minerals Limited dated August 24, 2009, and the Lance Royalty was assigned to Uranco Inc., a wholly owned subsidiary of Westwater Resources Inc. pursuant to an assignment of overriding royalty interest dated July 31, 2015, between Uranco Inc. and Strathmore Resources (US) Ltd.

The Westwater royalty does not apply to the entire Lance Project area. The royalty currently applies to approximately 5586 acres of an estimated 67,500 permit acres or 8% of the currently proposed production and permit areas. The aggregate surface and minerals rights disclosed by Peninsula Energy Ltd. ("Peninsula") in its annual report for the year ended September 31, 2021, is 38,416 acres. The area subject to the Westwater royalty represents 15% of such aggregate acreage.

The 1% GRR Royalty

The royalty is a 1% gross revenue royalty interest applicable to all uranium and related minerals produced from an area consisting of 175 sections of ground that fully covers the currently permitted Ross production area, as well as the Kendrick and Barber expansion areas of the project. The royalty was created effective August 25, 2009, as part of a geological and technical data purchase agreement between Peninsula Minerals Limited and UR-Energy USA Inc. The royalty is calculated based on gross sales proceeds, with no deductions for costs or expenses.

The following information regarding project milestones and recent developments for the Lance Project has been summarized from Peninsula's public disclosure.

On March 28th, 2022, Peninsula announced that it was commencing an update to it’s 2018 Low-Ph ISR Feasibility Study, incorporating results and conclusions from Peninsula’s technical de-risking activities, including the recently completed MU1A Field Demonstration.

On August 15^th, 2022, Peninsula announced the details of a Definitive Feasibility Study (“DFS”) for the Ross and Kendrick Projects at Lance. The DFS excluded the Barber Resource Area. The key results from the DFS included a Life-of-Mine (“LoM”) production of 14.4 Mlbs U₃O₈ over 14 years of mine life, steady state production of 2.0 Mlbs/year from year 4 of the study, and All-In Sustaining Costs of US$39.08/lb. The Ross and Kendrick Areas are estimated to generate net cash flow over the 14-year LoM, before income tax, of US$238.8 million. The Project has a calculated before tax IRR of 43% and a before tax NPV of $124.8 million, applying an eight percent discount rate. The report outlines production in two stages, the first at Ross at a steady state production rate of 0.82 Mlbs/year, with Phase 2 Expansion production combining both Ross and Kendrick resulting in an approximate production rate of 2.0 Mlbs U₃O₈ per year. Existing permits and licenses allow for processing of up to 3.0Mlb of dry yellowcake (U₃O₈) per year. The DFS estimates that 90% of resources placed under wellfield pattern will be recovered over the course of 20 pore volumes of mining solution during low pH operations. In the DFS, Peninsula estimated that 89% of Measured Resources and 79% of Indicated Resources will be placed under wellfield patterns. Only 61% of Inferred Resources are estimated to be placed under pattern. Thus, the estimate of produced resources assumes a net mineral resource recovery factor of 69.8% for Ross and 64.3% for Kendrick, with an overall recovery factor of 65.8%.

On November 24, 2022, Peninsula announced that a positive Financial Investment Decision to restart uranium production at the Lance Operation had been completed. Peninsula further disclosed that production activities were expected to commence in Q1 of CY2023 with deliveries to existing customers starting in Q4 of CY2023.

The following information regarding project milestones and recent developments for the Lance Project has been summarized from Peninsula's public disclosure.

Mineralization in the area of the Lance Project was initially discovered in the 1970’s. From October 1977 to April 1978 an ISR pilot plant was constructed and operated but was shut down and remediated after the incident at Three Mile Island. According to publicly available information, Peninsula Minerals Limited acquired the precursor Sundance project from PacMag Metals Limited in February of 2007. The project lands were expanded through land acquisitions in 2008 and 2009. Metallurgical testing announced in August 2009 confirmed that the project was amenable to ISR extraction.

Between 2009 and 2015, Peninsula completed additional work to progress the project towards production, including completion of permitting and relevant studies. Production commenced at the Lance Project in December 2015, utilizing an alkaline leach method. Peninsula has disclosed that such method presented challenges and has been exploring utilizing a mild acid (low pH) production method.

Peninsula announced on September 17, 2018, that it had completed a JORC⁽¹⁾ compliant feasibility study, which considered a low pH mining option for the project. It disclosed direct operating expenditures over the life of mine of US$15.59 per pound U₃O₈ produced, capital expenditures to complete low pH transition of US$5.3 million, stage 2 and 3 expansion capital expenditures of US$113.4 million, life of mine all-in sustaining cost average of US$31.77 per pound of U₃O₈ produced with a break-even price of US$34 per pound of U₃O₈, a net present value of US$156.5 million and internal rate of return of 30%, based on a long-term average sales price assumption of US$49 per pound of U₃O₈. Peninsula disclosed that the study included life of mine production of 33.4 Mlbs of U₃O₈ over a 17-year mine life. Peninsula announced on November 28, 2018, that it had received approval to advance to the review process to change to a low pH solution in the mine operations. On December 28, 2018, Peninsula further announced that it had initiated field demonstration activities related to such low pH recovery at the Lance Project.

On November 14, 2018, Peninsula disclosed an updated JORC⁽¹⁾ compliant resource estimate for the Lance Project, which includes the totality of the project and is not limited to the area covered by the Lance Royalty. This resource was later revised in Peninsula’s September 30, 2019, quarterly activities report. The mineral resource estimate included a measured and indicated resource of 15.76 Mlbs U₃O₈ (14.50 million tonnes at an average grade of 0.049% U₃O₈) and an inferred resource of 37.80 Mlbs U₃O₈ (36.20 million tonnes at an average grade of 0.048% U₃O₈).

On November 4, 2019, Peninsula announce that they had received approval of the project’s Interim Operations Report by the Wyoming Department of Environmental Quality (the “WDEQ”), and now had full regulatory authorisation for low pH ISR operations in Mine Units 1 & 2, the already-mined areas of the Lance Projects, subject only to meeting two pre-operational license conditions (revisions to the radiation protection program and updates to surety bond).

As described in Peninsula’s announcement of 21st March 2019, implementation of low pH ISR at the Lance Projects is to be completed in four phases. The Phase 1 field demonstration of mining operations and the initial restoration stage is now complete. Phase 2, the commercial scale low pH ISR operations in Mine Units 1 and 2 can now occur along with the Phase 3 groundwater restoration field demonstration activities. The Phase 3 demonstration will conclude upon approval by the WDEQ of an Interim Restoration Report. Peninsula announced on December 31, 2019, that the Interim Restoration Report had been filed with the WDEQ. WDEQ review and approval of the IRR is the final step in the process of gaining authorisation to utilise low pH in-situ recovery (ISR) techniques throughout the Lance project license area.

A permit/license amendment was submitted in September 2020 to the regulatory authorities in Wyoming requesting approval for the use of a suite of oxidants in conjunction with the low pH injection stream. Peninsula stated that the regulatory action is expected to be completed by the end of CY 2021, before the field demonstration activities are scheduled to be completed.

On February 26, 2021, Peninsula announced an update on its low-pH field demonstration activities at the project. Peninsula disclosed that the company initiated a field demonstration in August 2020 in a previously unmined area of Mine Unit 1 (MU1A) with the primary objective being to confirm the optimal operating conditions for the project.