40 million @ 4.07 - 1.6 million tonnes of ree, page-8

6
29th February 2012
ASX RELEASE
Project Status
The Ngualla rare earth mineralisation is shallow and could easily be exploited by open cut methods. Early metallurgical test
work managed by consultants Bateman Engineering Ltd has returned encouraging results (ASX report: 31st January 2012;
‘Early encouragement from preliminary metallurgical test work – Ngualla Rare Earth Project’):
• Higher grade, near surface oxide mineralisation may be amenable to conventional acid leach - a relatively simple processing
route to a high grade rare earth concentrate.
• Simple wet table characterisation of primary fresh rock rare earth mineralisation produces positive beneficiation results in
preliminary sighter tests. Work is now underway to determine if standard flotation for bastnasite as a subsequent processing
step has the potential to produce a saleable rare earth concentrate.
• The extremely low levels of uranium and thorium present in the Southern Rare Earth Zone (21ppm U and 35ppm Th) is a
distinct advantage to the Ngualla Project over other rare earth projects.
The resource estimation and block model, combined with the completion of this early stage metallurgical test work will allow
scoping studies to commence to begin to quantify the economic significance of this large new rare earth discovery. Preparations
are underway for an infill drilling program to commence at Ngualla after the rains end in May 2012. The drilling will provide the
necessary higher density of data to support an upgrade to Measured Resource category and also seek to extend the resource
in several directions where it currently remains open.
Richard Beazley stated, “the publication of this significant resource statement for an outcropping, bulk deposit, with very
low thorium and uranium levels and encouraging initial metallurgical test work is indicating the potential for Peak to position
themselves as a low cost rare earth producer with a long term presence in the rare earth industry.