Additional Royalty Acquired On Lance Uranium Project

VANCOUVER - Uranium Royalty Corp. has acquired an additional 1% gross revenue royalty interest on the Lance In-Situ Recovery (ISR) Uranium Mine in Wyoming, operated by Strata Energy Inc., a wholly owned subsidiary of Peninsula Minerals Limited. Near-term production potential: The Lance ISR Uranium Mine is a fully licensed mine, with Peninsula currently undertaking an updated feasibility study in preparation for a full re-start of ISR production. Mine production was idled in 2019 as the operator initiated a transition to a low-Ph mining method, but the project has been producing uranium in limited amounts during the test mining phase. Additional exposure to U.S. uranium production: Provides URC with additional exposure to potential U.S. derived uranium production. The royalty is a 1% gross revenue royalty interest: The royalty covers the entirety of the current permitted project area and expands upon URC's existing 4% gross revenue royalty on portions of the Lance Project. It is applicable to all uranium and related minerals from the project area.

Scott Melbye, Chief Executive Officer, said, “The Company  couldn't be more pleased with the addition of this comprehensive, near-term cash-flowing royalty on the Lance Project. We have great confidence in Peninsula's management and technical teams to be able to bring this competitive asset into full production as one of the early movers, taking advantage of improving uranium markets. We look forward to the updated feasibility study recently announced by Peninsula. As the global nuclear fuel industry reassesses strategic and geopolitical risk, the value of American ISR uranium production in a resource-friendly state like Wyoming cannot be underestimated. As a result, we believe uranium projects in North America that are not only fully permitted and licensed, but free of control or influence from Russia and China, will attract stronger premiums as a result of the current geopolitical climate."

The Lance Project is an ISR uranium project located on the north-east flank of the Powder River Basin in Wyoming, and is comprised of approximately 38,416 acres of mixed surface and mineral right holdings including private access agreements as well as state and federal mining claims. In its annual report for the year ended September 31, 2021, Peninsula disclosed a JORC resource comprised of measured and indicated resources of 15.8 Mlbs at an average grade of 494 ppm U3O8 and inferred resources of 37.8 Mlbs at an average grade of 474 ppm U3O8 for the Lance Project. The estimate was disclosed as of December 31, 2020.

The project was licensed and constructed by Strata and commenced commercial operations in 2015. From September through December of 2018, Peninsula made a series of announcements outlining the proposed transition to low-pH mining, including suspending most of the alkaline-based production in order to reduce cash expenditures. By July 2019, Peninsula announced that it had determined to idle alkaline-based production activities and focus on completion of a low-pH field demonstration. In 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. March, 2022, Peninsula announced that it was commencing an update to its 2018 Low-Ph ISR Feasibility Study, incorporating results and conclusions from Peninsula's technical de-risking activities, including the recently completed MU1A Field Demonstration.