Ann: $1.5m Placement and Corporate Update, page-2

Peak Resources Limited (ASX: PEK) (“Peak” or the “Company”) is pleased to announce it has received binding commitments for a placement of fully paid ordinary shares in the Company to raise A$1,500,000 before costs.

Peak’s Chairman, Peter Meurer commented “The Board and Management team has acted swiftly and decisively to secure a clear cash runway for the Company into early 2021. The current equity market environment is extremely uncertain and volatile, and likely to be that way for some time. It was critical for the financial security of the Company that we took these prudent measures now.”

“We thank all our shareholders for their continued support and the shared vision for Peak’s future. Our shareholders should be extremely comforted that the Management team is clearly aligned with the Company’s shareholders having agreed to 50% cash reductions in remuneration levels and other cost cutting measures. They remain focused on achieving positive outcomes and the objectives we have set out to achieve.”

“Our enthusiasm for the Company’s assets; the outstanding Ngualla Rare Earth Deposit and Teesside separation facility is undimmed. As reported last week (refer ASX announcement “Tanzania Special Mining Licence Update” dated 30 March 2020) we remain confident of the receipt of the Special Mining Licence for the development of the Ngualla deposit. Whilst the impact of Covid -19 has temporarily slowed the uptake in electric vehicles the thematic and important role Peak can play in the electrification revolution remains very clear. We see an exciting year and future ahead for the Company”

Details of the Placement

A placement of 100,000,000 fully paid ordinary shares in the Company at an issue price of $0.015 (“New Shares”) to sophisticated, professional and other exempt investors pursuant to section 708 of the Corporations Act 2001 (Cth) to raise A$1,500,000 before costs (“Placement”). The Placement was oversubscribed with strong interest and participation levels from existing qualifying shareholders of the Company.

The New Shares will be issued under the Company’s 15% placement capacity. The Placement is expected to be completed on or around 14 April 2020.

Participants in the Placement will receive one attaching option, exercisable at A$0.03 on or before 24 months from the date of issue (“Listed Option”) for every two New Shares issued. An additional 38m Listed Options will be issued to brokers (or their nominees) who assisted with the Placement. The Company will seek to have the options quoted on the ASX.

The funds from the Placement will be used to maintain the Company’s financial position and assets, and cover general operating expenses.