Ngualla Project Tanzania Developing a New Rare Earth Discovery

INVESTOR PRESENTATION PRESENTED BY RICHARD BEAZLEY MANAGING DIRECTOR PEAK RESOURCES Ngualla Rare Earth Project September 2012

Disclaimer The information in this document has been prepared as at 29th August, 2012. The document is for information purposes only and has been extracted entirely from documents or materials publicly filed with the Australian Stock Exchange and/or the Australian Securities and Investments Commission. This presentation is not an offer or invitation to subscribe for or purchase securities in the Company. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions.

Certain statements contained in this document constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking information under the provisions of Canadian provincial securities laws. When used in this document, the words “anticipate”, “expect”, “estimate”, “forecast”, “will”, “planned”, and similar expressions are intended to identify forward-looking statements or information. Such statements include without limitation: statements regarding timing and amounts of capital expenditures and other assumptions; estimates of future reserves, resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of future internal rates of return, mining costs, cash costs, mine site costs and other expenses; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof; statements and information as to the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; estimates of reserves and resources, and statements and information regarding anticipated future exploration; the anticipated timing of events with respect to the Company’s mine sites and statements and information regarding the sufficiency of the Company’s cash resources. Such statements and information reflect the Company’s views as at the date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements and information. Many factors, known and unknown could cause the actual results to be materially different from those expressed or implied by such forward looking statements and information. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, capital expenditures, and other costs; currency fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks; community protests; risks associated with foreign operations; governmental and environmental regulation; the volatility of the Company’s stock price; and risks associated with the Company’s byproduct metal derivative strategies. For a more detailed discussion of such risks and other factors that may affect the Company’s ability to achieve the expectations set forth in the forward looking statements contained in this document, see the Company’s Annual Report for the year ended 30 June 2011, as well as the Company’s other filings with the Australian Securities Exchange and the U.S. Securities and Exchange Commission. The Company does not intend, and does not assume any obligation, to update these forward-looking statements and information.

Competent Person Statement The information in this presentation relates to Exploration Results based on information reviewed by David Hammond who is a Member of the Australasian Institute of Mining and Metallurgy, is also a Director and full time employee of the Company. He has sufficient experience which is relevant to the mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. David Hammond consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. The information in this presentation that relates to Metallurgical Test Work Results based on information compiled and / or reviewed by Gavin Beer who is a Member of The Australasian Institute of Mining and Metallurgy. Gavin Beer is a Consulting Metallurgist with sufficient experience relevant to the activity which he is undertaking to be recognized as competent to compile and report such information. Gavin Beer consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

2 Ngualla Rare Earth Project September 2012 Introduction Moving from Developer to Miner of Rare Earths

• South West Tanzania – 3rd largest producer of gold in Africa

• Maiden Resource Feb 2012 - 5th largest rare earthUGANDA resource, and the highest grade

of the seven largest deposits outside of China Lake Victoria

• just completed a $7.5m capital raising KENYA

• Why we will succeed: • Project economics, and • Timeline to production TANZANIA • Where we are: Dar Es Salaam Lake Rukwa Ngualla Project

• Resource drilling Indian Ocean ! • Scoping study Mbeya ZAMBIA N Lake Nyasa • Metallurgical development 0 100 200 400km

MALAWI

3 Ngualla Rare Earth Project September 2012 The Team

Alastair Hunter Richard Beazley Dave Hammond Jonathan Murray Non-executive Chairman Managing Director Technical Director Non-Executive Director Mr Hunter has more than 38 years’ Mr Beazley is a mining engineer with With an MSc in Mineral Exploration Mr. Murray is a partner at experience in the management of more than 25 years’ experience in from the Royal School of Mines, independent corporate law firm resource projects in Australia, Africa the resources sector who holds a London, Dave Hammond is a Steinpreis Paganin, based in Perth, and North America. He has played a Bachelor of Engineering (Mining) from geologist with over 23 years Western Australia. He specializes significant role in a number of gold the University of New South Wales and of technical and management in equity capital raisings, all forms and base metals discoveries. Mr a Master of Business Administration. experience in Africa and Australia, in a of acquisitions and divestments, Hunter was formerly a director of Mr Beazley has previously held range of commodities and geological governance and corporate Peninsular Minerals NL, and a former management and executive roles deposit styles. Mr. Hammond was compliance. managing director of Matlock Mining with a range of companies operating previously Exploration Manager with Mr. Murray graduated from Murdoch NL and Anglo Resources NL. throughout Australia including De Grey Mining Limited, working on University in 1996 with a Bachelor Mr Hunter is responsible for Consolidated Minerals, St. Barbara projects in the Pilbara and new project of Law and Commerce (majoring in providing strategic advice to the Limited, Aditya Birla Minerals Limited, acquisitions globally. accounting). He is also a member executive on the Group’s Tanzania Henry Walker Eltin Contracting Pty Ltd His previous experience also of FINSIA (formerly the Securities exploration projects and coordinating and Sons of Gwalia. includes Exploration Manager for Institute of Australia). Mr. Murray is the Group’s relationship with Zari Sons of Gwalia in the NE Goldfields currently a non-executive director Exploration Limited. of Western Australia and Project of Hannans Reward NL, Laguna Geologist with Billiton in South Africa Resources NL and Kalgoorlie Mining and Zambia. Company Limited.

4 Ngualla Rare Earth Project September 2012 The Resource Virgin discovery – August 2010 – 26,700m drilling for the resource

Max DH REO %: A 1 to 2% Northern Zone A 2 to 3% Mt Mapuma A 3 to 5% te A >5% ati on arb 550m f C r o te Max DH REO %: e OPEN im ! r <1% e P ! 1 – 2% ! 2 – 3% ! 3 – 5% Southern Rare Earth Zone ! > 5%

SW Alluvials OPEN OPEN

5 Ngualla Rare Earth Project September 2012 The Resource • Main mineralised zones: – SW Alluvials • The Ngualla Mineral Resource at – SREZ Fresh rock 1.0% REO cut-off grade is 170Mt at – SREZ Weathered rock: 2.24% REO containing 3.8Mt REO – little additional acid consuming rock – no deleterious minerals • At 3.0% REO cut-off grade it is – very minor uranium and 40.0Mt @ 4.07% REO containing – no other economic minerals 1.6Mt REO Southern Rare Earth Zone (SREZ) Refer Appendix B

Bastnaesite Zone Monazite Zone

Ngualla Hill Colluvium >2% REO 1600 SW Alluvials Fresh Weathered 100m (Bastnaesite and Monazite) >4% REO 1 to 2% REO

1500 600m REO mineralised core Fresh Fresh Fresh 1.5 to 2% REO 0 50 100 200m Ultramafic Carbonatite 1400

6 Ngualla Rare Earth Project September 2012 The Ore Body and Mining The consistent blanket of mineralisation at surface, on a hill suggests a shallow open pit with low strip ratios and low cost mining

• At 10kt pa contained Ngualla Hill RE products, the OPEN mining rate will only have to be in the SW Alluvials order of 350kt ore mined every year • It is probable that the strip ratio in the first several years will be effectively 0:1 – no 150m OPEN waste mining 700m

REO %: Southern Rare Earth Zone A >4% A 3 to 4% OPEN A 2 to 3% A 1 to 2% OPEN

The Ngualla Rare Earth Project, Block Model

7 Ngualla Rare Earth Project September 2012 Global top 5 Rare Earth Deposit • Ngualla is a large, high grade, globally significant rare earth deposit • It is the highest grade of the seven largest deposits outside of China

Rare Earth Project Comparisons Date: 3 April 2012 Source: Technology Metals Research and Company filings

12 9

REO grade % 375m 8 10 Contained REO (Mt)

300m 300m Depth to base of resource 7

8 6

600m 5 6 240m 155m 450m 4

REO Grade (%) 4 3 Contained REO (Mt) 126m 155m 2 2 1

0 0

Eldor Niobec Dubbo Montviel Nora Karr Wigu Hill Kvanefjeld Bear Lodge Nechalacho Strange Lake Mount Weld Nolan’s Bore Ngualla (Bulk) Mountain Pass Zandkorpsdrift

Ngualla (High Grade)

8 Ngualla Rare Earth Project September 2012 Global top 5 Rare Earth Deposit – “Grade is King” • Critical rare earths have Ngualla ‘outside the pack’

Rare Earth Project Comparisons Date: 3 April 2012 Source: Technology Metals Research

2.0 Mount Weld Bubble size relative to contained REO

1.5

Projects under Commissioning

Strange Lake Nolan’s Bore 1.0 Kvanefjeld Zandkorpsdrift Bear Lodge

Nechalacho Mountain Pass Eldor Ngualla (High Grade) Average CREO Grade (%) 0.5 Ngualla (Bulk)

Niobec Wigu Hill Nora Karr Montviel 0 0 2 4 6 8 10 12 Average REO Grade (%)

9 Ngualla Rare Earth Project September 2012 The rare earth market looking ahead – “Meeting Demand”

Digital technology Energy efficiency Clean energy • growth markets in renewable energy and advanced technologies

• current RE market 120kt pa by 2020 the market will expand to 215kt pa

• china controls 97% of raw material supply through to end products

• uSA/Japan/South Korea/EU want an independent RE supply chain to reduce strategic risk

• china recently has stated that they will be net importers by 2014

Source: IMCOA, Roskill

10 Ngualla Rare Earth Project September 2012 The Critical Rare Earths Five rare earths are 54% of the in-ground Eu 15% La 11% forecast to be in value at Ngualla Dy 3% Pr 10% critical undersupply: is from these five Gd 2%

• critical rare earths. Ce 20% Sm 1% • Y 1% Neodymium is the • Other 1% Nd 35% • major contributor at • 35% of the in-ground value. Ngualla in-ground value RE %

Key Market Focus

HE vehicles and wind turbines Polishing powders Lighting and screens Catalytic converters Magnets use Neodymium, Polishing Powders use oxide- Phosphors provide a growing Catalysts utilising both and Dysprosium for based powders are used to create a market for Europium, Yttrium and Cerium are used in automotive permanent RE magnets in clean finished surface for glass products and which exhibit catalytic converters (autocatalysts) to energy applications such as HE and electrical components including phosphorescence, emitting light reduce harmful emissions in exhaust vehicles and wind turbines. Magnets flat glass, optical glass, liquid crystal on exposure to an external source gases and fluid catalytic cracking represent 30% of the RE market and displays (LCDs), silicon wafer surfaces of energy such as electrons or (FCC) catalysts to separate petroleum growing at 10-15% pa. for integrated circuits to name a few. ultraviolet light. Demand in this products such as petrol / gasoline Maximum forecast growth rate of sector is forecast to be 6%-8% pa. and diesel from crude oil. Catalysts 5% pa. have a 16% share of the RE market with a forecast growth rate of 4% pa.

Source: Roskill and Arafura

11 Ngualla Rare Earth Project September 2012 The Metallurgy • Developed a low cost sulphuric acid leach process for SREZ – Proof of Concept • Developed a Process Flow Sheet • Mixed RE Carbonate concentrate at 50.3% REO • an overall process recovery of 87% was achieved

Simplified Sulphuric Acid Leach Test Work

Sulphuric Primary Cerium Final Purification Rare Earth Leach Acid Leach Precipitation Removal Precipitation Carbonate Feed Product

Cerium Concentrate

3.6% REO 65% CeO 50% REO

• Process optimization will be completed in the third quarter of 2012 • Ore feed metallurgical variability complete early in quarter four of 2012 • Now focussing on separation to produce RE products • Commence pilot plant design and construction • Pilot plant operation and production of rare earth concentrates for evaluation by off take customers

12 Ngualla Rare Earth Project September 2012 The Schedule to Rare Earth Production - Hitting milestones

Ngualla Project Development Schedule

Discovery Commenced Metallurgical Characterisation Supply Agreements Zari JV Aquisition Maiden Resource Statement Production Start up Metallurgical Flow Sheet Development Completion of acid leach test work Milestones Completion of separation test work Pilot Plant Trials commencing

Exploration Drilling Maiden Resource Drilling Resource Definition & Extension Geotech - Extension RE Exploration & Resource Drilling

2010 2011 2012 2013 2014 2015 2016

Scoping Study Pre-Feasibility Study Definitive Feasibility Study Construction to RE Production Potential Pathway Pathway Potential

EXPLORER DEVELOPER MINER

13 Ngualla Rare Earth Project September 2012 Ngualla – a summary • operating Environment – infrastructure close by, country mining savvy, practical mining legislation

• 5th largest rare earth resource, and the highest grade of the seven largest deposits outside of China

• Project economics: • Tonnes – mine life • Grade – very strong competitive advantage • Rare earth element mix – 54% critical rare earths • Metallurgy – ‘relatively’ simple acid leach • Low capex and low opex – bottom quartile of cost of production • Timeline to production – early 2016

• Where we are: • Metallurgy process flow sheet and proof of concept • Hitting milestones – on schedule, on budget – the drivers for continued success

14 Developing a New Rare Earth Discovery NGUALLA PROJECT

Peak Resources Limited

Head Office: Level 2, 46 Ord St, West Perth Western Australia 6005 Ph: +61 8 9200 5360 Fax:+61 8 9226 3831 ASX Code: PEK OTCQX: PKRLY

Richard Beazley Managing Director [email protected] David Hammond Technical Director [email protected] Alastair Hunter Non-executive Chairman [email protected] Jonathan Murray Non-executive Director www.peakresources.com.au

15 Ngualla Rare Earth Project September 2012 Appendix A – Corporate Details ASX: PEK OTCQX: PKRLY Market Cap: $36.2m (at $0.175) Ordinary Shares on Issue: 207.1m Options outstanding: 11,191,519 Cash at 1st August 2012: $2m Liquidity: 0.4 million shares per day (av. over 3 mths) 52 week range: $0.16 - $0.69 IPO Date: 29 November 2006

Note: Peak has completed a $5.5m private placement and offering a SPP capped at $2.0m to shareholders on 29th July 2012. This will wash through in September.

Share Price (01 July 2010 – 1st August 2012)

$0.89 –

$0.79 –

$0.69 –

$0.59 –

$0.49 –

$0.39 –

$0.29 –

$0.19 –

$0.09 – 01 July 2010 18 NOV 2010 07 APR 2011 25 AUG 2011 12 JAN 2012 31 MAY 2012 Board and Senior Management Consultants Alastair Hunter Non-executive Chairman Resource consultants: Hellman & Schofield Richard Beazley Managing Director Project managers: Emerson Stewart Dave Hammond Technical Director Metallurgical & mineral processing: Hatch; Met-Chem Consulting Jonathan Murray Non-executive Director Mineral processing test laboratory: Amdel & Nagrom Farlee Walker CFO/Company Secretary Legal representation: Australia: Steinepreis Paganin Lucas Stanfield Chief Development Officer Tanzania: AKO Law Brian Lloyd Exploration Manager (Tanz) Auditor: Deloitte Touche Tohmatsu

16 Ngualla Rare Earth Project September 2012 Appendix B – Maiden JORC Resource • Ngualla Mineral Resource – 1.0% and 3.0% cut off grades

Classification of Mineral Resources for the Ngualla Rare Earth Project, 1.0% and 3.0% REO cut-off grades.

Lower cut – off Resource Tonnage REO Contained grade Category (Mt) (%)* REO tonnes

Measured 29 2.61 750,000

Indicated 69 2.43 1,700,000 1.0% REO Inferred 72 1.92 1,400,000

Total 170 2.24 3,800,000

Measured 11 3.99 430,000

Indicated 21 4.09 850,000 3.0% REO Inferred 8.7 4.11 360,000

Total 40 4.07 1,600,000

*REO (%) includes all the lanthanide elements plus yttrium oxides.

The information in this report that relates to Mineral Resources is based on information compiled by Rob Spiers, who is a member of The Australasian Institute of Geoscientists. Rob Spiers is an employee of geological consultants Hellman and Schofield Pty Ltd. Rob Spiers has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Rob Spiers consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

17 Ngualla Rare Earth Project September 2012 UGANDA LakeAppendix Victoria C – Location and Infrastructure

KENYA

Ngualla Project

56km

TANZANIA

Dar Es Salaam

Lake Rukwa Ngualla Project B6

Indian Ocean B363 ! Mbeya

ZAMBIA N Lake Nyasa 147km 0 100 200 400km

Lake Rukwa • Tanzania MALAWI – an established B345 mining culture • Third largest gold producer Dar Es Salaam in Africa Port 750km • Access to transportation A104

• Onsite power required N Mbeya • Good potential for groundwater 0 10 25 50km

18 Ngualla Rare Earth Project September 2012 Appendix D – 2012 Development Program

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Engage engineering group for Scoping Study Acid Leach process development Drilling contractor on site Drill assay results with regular updates to follow

Milestones MET results updates 3rd Year Drill Program

Resource Upgrade Drilling 15,000m SREZ

Resource Extension Drilling 4,000m SREZ

Exploration & Northern Zone Maiden Resource Drilling 11,000m (Nb-Ta, P,RE) Resource Drilling Diamond Drilling 2,000m Southern & Northern Zone 2012

Scoping Study

• Risk analysis, permitting, licencing, logistics, supply, infrastructure, sustainability, social licence • Mining, rehabilitation • Market research – end users =>> direct link to metallurgical test work and studies Metallurgical Test Work Program

• Direct acid leach weathered SREZ – further samples to improve validation of ore body representation, optimisation studies for leaching • Precipitation and solvent extraction studies for weathered SREZ Technical Development Development Technical • Beneficiation and flotation studies on fresh rock • Initial sighter test work on Northern – Tantalum, Phosphate REO Zone • Development of acid leach process flowsheet plus alternatives EXPLORER DEVELOPER

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