Highlights: Peak Resources Limited (Peak) is pleased to report further wide mineralised intersections from the Ngualla Rare Earth Project in southern Tanzania, where a maiden resource drilling program is in progress. Photo 1: Mt Ngualla. Results received from a further 5 holes in the Southern Rare Earth Zone include: NRC079: 34m at 3.79% REO from 22m and 81m at 4.04% REO from 84m to EOH NRC080: 180m at 2.43% REO from surface to EOH including: 26m at 5.44% REO from surface NRC082: 120m at 3.02% REO from surface to EOH including: 24m at 4.85% REO from 68m These holes are from an infill drill traverse and confirm the continuity of higher grade rare earth enrichment from surface in deeply weathered zones of the carbonatite. Mineralisation still remains open to the north, south and with depth. Results continue to demonstrate that Ngualla is one of the largest and better grade new rare earth discoveries of recent years. Drilling on site is well advanced and a maiden JORC resource will be released in the first quarter of 2012. *REO = Total Rare Earth Oxide including yttrium. EOH = end of hole. See Table 1 for full drill intersection details. 2 25th OCTOBer 2011 ASX RELEASE Background Mineralisation at Ngualla in southern Tanzania is similar in style to Mt Weld (Lynas Corporation Ltd) in Western Australia, being rare earth enrichment in the deeply weathered regolith profile of a large carbonatite. Ngualla is a virgin discovery by Peak, with the first holes completed in June 2010. It is one of the largest and better grade new rare earth discoveries of recent years, with mineralisation from surface and extending over a large area. Drilling is progressing well and a maiden JORC resource for this mineralisation is scheduled for the first quarter of 2012. The project also has potential to host large, near surface deposits of niobium – tantalum and phosphate. Currently, Peak as operator and manager is earning 80% equity in the Ngualla Project by carrying Joint Venture partner Zari Exploration Ltd (Zari) through to completion of a bankable feasibility study. On 26th August 2011 Peak announced it had entered into a conditional agreement to take 100% ownership of the Ngualla Project through the acquisition of Zari. New Results Assay results from a further 5 RC holes of the resource drilling program in the Southern Rare Earth Zone have been received and include: Drill Hole I ntersection NRC079: 34m at 3.79% REO from 22m and 81m at 4.04% REO from 84m to EOH NRC080: 180m at 2.43% REO from surface to EOH including: 26m at 5.44% REO from surface NRC082: 120m at 3.02% REO from surface to EOH including: 24m at 4.85% REO from 68m Full drill hole intersection details included in Table 1. Distribution of individual REO’s shown in Figure 4. These new wide intersections from surface confirm the internal continuity of higher grade, more deeply weathered mineralisation the Southern Rare Earth Zone and demonstrate the potential for a large tonnage. The extent of +5% REO mineralisation extends 660m in a north – south direction and 740m east - west on the most southern drill traverse completed to date. Mineralisation has been tested to a maximum vertical depth of 155m. Rare earth mineralisation remains open to the north, south, east, west and with depth (Figure 2). Typical grades range from 3% to 7% REO from surface in the ferruginous weathered zone, which varies in thickness from zero to over 120m vertical (see cross section, Figure 3). There is also widespread primary rare earth mineralisation extending to depth within fresh rock carbonatite beneath the weathered zone, with typical grades of 1% to 2.5% REO. Drill hole NRC084 intersected two zones of niobium mineralisation: Drill Hole I ntersection NRC084: 30m at 0.50% Nb2O5 from 30m and 32m at 0.69% Nb2O5 from 88m to EOH Along with other recently released intersections (see September 2011 Quarterly Report), this further highlights the exploration potential for this second commodity. The main exploration targets for niobium, together with tantalum and phosphate, lie over one kilometre further to the north. Two drill traverses are planned to further investigate the Northern Niobium – Tantalum – Phosphate Zone before the anticipated onset of seasonal rains in early December. Drilling operations are continuing on site with a total of 205 holes for 14,497m completed within the Southern Rare Earth and South West Alluvial Zones (Figure 1). Diamond drilling for beneficiation and metallurgical test work and density measurements for the resource estimation is nearing completion with 4 holes completed for 700m of the total planned six holes. 3
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