peak to acquire 100% interest in ngualla rare , page-70

Very smart tactical move. This acquisition has flown under many investors radars yet management know exactly what type of asset this is and have development plans in place.

Opens up significant avenues for project financing and a takeover or divestment/spin off of the asset. Banks/Financiers/JV partners now have a clean path in the development and negotiation of financing terms of the asset and have added security and control in the project whilst PEK has additional bargaining power on the other side and can reach better terms of agreement.

PEK management have always tried to minimise the effect of dilution on the register. This deal is very cheap considering its a multi-billion dollar play and the other assets we get. Zari get the $6m to play with short term and at the same time they get plenty of shares for the longer term to realise the true value that they know lies in the ground and can now profit from holding their investment whilst not having to take part in the day to day operation of the asset and company.

On top of this PEK also gain further control and share in the Gold projects. These goldfields are significant and very much under the radar with PEK atm. We are sitting on some very reliable and proven Greenstone belts that have churned out multi million ounce deposits and some mega gold mines for some of the largest gold companies. Signs are already good there.

On top of this to regain some cash PEK will undoubtedly sell some of Zari's assets which PEK see as non-core (Uranium, Base Metals) to inject some cashflow back into the company. At the end of the day $6m and the issue of shares is an absolute steal for what we got. Some may be hesitant at raising that amount at this price in this down market but it is a strategic move that will benefit PEK greatly in the process.

IMO i'm still thinking the long tern future of this company rests in its gold projects(proven exploration and mining methods, labour and infrastructure in place, easier transition from resource to mining) and Ngualla (a much more specialised and time/capital intensive asset) is going to be taken out at a handsome sum by a big player. Realistically we have a multi-commodity asset in Ngualla that should not be ours given the size and market cap of our company as it should be in the hands of a major international player.

Very comfortable with the company atm and from the perspective of someone who has experience in projects this is a very clear statement as to managements intentions and where they are headed. They are very much on track and the puzzle is coming together.