Peak Resources Ngualla - The Magnet Metal Project

May 2016 For personal use only use personal For NGUALLA RARE EARTH PROJECT Disclaimer

The information in this document has been prepared as at May 2016. 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 by-product 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 2015, 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 Statements

The information in this report that relates to Exploration Results is based on information compiled and/or reviewed by David Hammond, who is a Member of The Australian Institute of Mining and Metallurgy. David Hammond is the Technical Director of the Company. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity which he is undertaking to qualify as a Competent Person in terms of the 2012 Edition of the Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. David Hammond consents to the inclusion in the report of the matters based on his information in the form and contest in which it appears.

The information in this statement that relates to the Mineral Resource Estimates is based on work conducted by Rod Brown of SRK Consulting (Australasia) Pty Ltd, and the work conducted by Peak Resources, which SRK has reviewed. Rod Brown takes responsibility for the Mineral Resource Estimate. Rod Brown is a Member of The Australian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activities undertaken, to qualify as Competent Person in terms of the Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 edition).Rod Brown consents to the inclusion of such information in this report in the form and context in which it appears.

The information in the announcement that relates to estimated mine operating costs and mineral inventory was based on information compiled by Mr Ryan Locke, a Principal Consultant with Orelogy Consulting Pty Ltd, Orelogy are an independent consultant to Peak Resources. Mr Locke, who is a Member of the Australasian Institute of Mining and Metallurgy, has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Ryan Locke consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. It should however be noted that no Ore Reserve has been reported as part of this study and therefore there is not a specific requirement for a CP in relation to the findings of this study.

For personal use only use personal For The information in this report that relates to metallurgical test work results is based on information compiled and / or reviewed by Mr Gavin Beer who is a Member of The Australasian Institute of Mining and Metallurgy and a Chartered Professional. Gavin Beer is the General Manager Metallurgy of the Company and has 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.

The information in this report that relates to infrastructure, project execution and cost estimating is based on information compiled and / or reviewed by Lucas Stanfield who is a Member of the Australian Institute of Mining and Metallurgy. Lucas Stanfield is the General Manager - Development for Peak Resources Limited and is a Mining Engineer with sufficient experience relevant to the activity which he is undertaking to be recognized as competent to compile and report such information. Lucas Stanfield 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 Company Highlights

One of the highest grade and largest rare earth deposits in the world with compelling economics and cost position expected to be competitive with the low cost producers from China.

. World-class asset, one of the world’s largest (Nd) and (Pr) deposits

. Outstanding project track record - finishing the Bankable Feasibility Study early 2017

. Exceptional deposit characteristics with an operational mine life of 31 years, based on just 22% of the Mineral Resource

. A management team with extensive operational and commercial rare earth experience and a broad industry network

. An easy-to-mine rare earth deposit by low strip ratio open pit and established processing technologies. Advantage of very low uranium and and extremely low levels of phosphate and carbonate, which

For personal use only use personal For leads to low consumption of costly reagents during the production process that directly translates into outstanding project operating + capital cost position

* Production based on the 2016 Weathered Bastnaesite Zone Mineral Resource estimate at +1% REO grade cut and the mining and processing assumptions, details contained in the ASX announcements “Ngualla Study delivers substantial Capex and Opex savings” of 16 March 2016” and “Higher grade Resource for Ngualla nearly 1M tonnes REO” of 22 February 2016. 91% of the Mineral Resource on which the Mining Inventory is based is Measured, 9% Indicated with no Inferred.

3 NGUALLA RARE EARTH PROJECT Our Assets & Global Footprint Peak Resources - an aspiring rare earth producer. With a CAPEX* of only USD 330 million incl. 25% contingency and OPEX of USD 97 million p.a. European Union Location for our solvent extraction plant; • Projected Capex: USD 124 M incl. 25% contingency • Perfect location to access top quality logistics infrastructure + skilled labour market • Production forecast: 2,300 tpa Nd/Pr 3N, 180 tpa SEG + HRE and 4,240 tpa La + Ce*

EU Korea USA China Japan India EU 48 hrs

Ngualla Dar es Salaam Australia USA 4 weeks India 6 weeks Imported ~55t of Ore (first 6 years typical grade) 3 individual pilot plants: China 7 weeks Perth Korea 6 weeks 1. Perth ALS; Beneficiation pilot: 2t of 41% REO Sydney Japan 7 weeks concentrate (completed December 2014) South Africa 4 weeks 2. Sydney ANSTO; Leach Recovery, Pilot (current) Canada 4 weeks 3. SX separation Pilot at ANSTO (completed 2013) Tanzania Ngualla Project, World Class Asset • Mining Inventory of 18.4Mt at 4.89% REO; 22% of the total Mineral Resource 29

For personal use only use personal For • Mining licence expected by early 2017 • Projected Capex: USD 206 M incl. 25% contingency • 31 year operational life of mine, Mill feed rate 556,000 tpa • Unique mineralogy drives low cost of operation • 28,000 tpa of 45% rare earth concentrate; from Ngualla to Dar es Salaam ~ 980 km * See ASX announcements “Ngualla Study delivers substantial Capex and Opex savings” of 16 March 2016” and “Higher grade Resource for Ngualla nearly 1M tonnes REO” of 22 February 2016 4 NGUALLA RARE EARTH PROJECT

Board of Directors- Depth of expertise and skills

• Chemist with almost 30 years operational and corporate experience in the minerals industry Peter Harold specialising in financing, marketing and business development. Non-Executive Chairman • Currently Managing Director of Panoramic Resources. Previous senior roles with Spectrum Rare Earths, Shell Australia, Australian Consolidated Minerals Limited and Normandy Mining Limited

• Mining Engineer with 20 years mining and corporate experience Darren Townsend • Extensive experience in managing ASX and TSX listed companies Managing Director • East African experience incl. development of tantalum mine in Mozambique and resource drill out and permitting a project in Kenya

• Geologist with 25+ years technical and management experience in Africa and Australia Dave Hammond • Former Exploration Manager with De Grey Mining Limited and Sons of Gwalia. Previously with Technical Director Billiton/Gencor in Africa • MSc in Mineral Exploration, DIC, BSc (Hons) Geology

• Partner at independent corporate law firm Steinepreis Paganin Jonathan Murray • Specialising in equity capital raisings, acquisitions and divestments, governance and corporate Non-Executive Director compliance • Bachelor of Law and Commerce (majoring in accounting)

• Extensive international finance and M&A experience John Jetter • Former Managing Director, CEO and head of investment banking of JP Morgan in Germany and Non-Executive Director Austria, and a member of the European Advisory Council of JP Morgan in London

• Experience in negotiating and executing rare earth off-take agreements For personal use only use personal For Robin Mills • Global mining career of 40+ years as an engineer, operating manager, former Global Technical Non-Executive Director Director of De Beers and Director of Mining for Anglo Platinum. • Developed and managed 30+ successful mines globally over a range of commodities • Senior partner in the London based APPIAN Capital Advisory LLP 5 NGUALLA RARE EARTH PROJECT

Management- Depth of expertise and skills

• Chemist with over 35 years’ operations and senior management experience in the mineral processing/ Rocky Smith chemical engineering sector Chief Operating Officer- • Previously Managing Director of Molycorp’s Mountain Pass Rare Earth Complex from 2009 to 2015. Development • Achievements include the delivery of successful expansions resulting in a 230% increase in production capacity over three years as well as managing of operation budget in excess of US$150 million.

Michael Prassas • 15 years’ experience in sales and business development Executive General Manager- • Former Global Account Manager Automotive Catalysis /Sales Manager of Rare Earth Systems for Sales, Marketing & Business Solvay/Rhodia where he was responsible for sales of Rare Earth Mixed Oxides in Europe and Africa. Development • Management skills include budget responsibility, project management, building stakeholder relationships and competing priorities in deadline-driven environments

• Fellow of the Association of Chartered Certified Accountants (UK) Graeme Scott • More than 20 years’ experience in professional and corporate roles in both Australia and the UK Chief Financial Officer/ • Has spent the last 10 years working in the resources sector in CFO and Company Secretarial roles Company Secretary for both ASX and TSX listed companies

Gavin Beer • Metallurgist with 25+ years’ technical and operational experience in the mining industry. General Manager- • Former Manager of Metallurgy for Arafura Resources Metallurgy • Has been responsible for the flow sheet development of eight rare earth projects worldwide including Peak’s Ngualla Project.

For personal use only use personal For • Mining Engineer with over 15 years ‘ experience in mining and project management in Australia, Africa & the United Kingdom Lucas Stanfield • Previously with Emerson Stewart , Lucas has delivered a number of Scoping and Feasibility studies General Manager- Projects as well as developed expansion strategies, long-term business plans and operating productivity studies focussed on mining industry. 6 NGUALLA RARE EARTH PROJECT Rare Earth Market Value by Sector

100% 3% 2% 2% 1% 1% 3% 3% 2% Glass Additives 4% 2% 6% 3% 3% 4% 3% 3% Polishing Powders 4% 5% 4% 3% Permanent Magnet Breakdown 7% 3% Other 5% 4% Individual RE by Relative Value Contribution 11% 7% 6% 5% Catalysts (2015) 8% 1% 7% 7% 10% Metal Alloys 3% <1% 6% Ceramics 15% Phosphors 15% Permanent Magnets 11%

79% 75% 2015 68% Praseodymium Magnet Sector Neodymium 63% 54% 22% Value Share 47%

For personal use only use personal For 0% 2011 2012 2013 2014 2015

Source: IMCOA (2016), Value is calculated using China FOB and Chinese Domestic Pricing. 7 NGUALLA RARE EARTH PROJECT NdFeB Permanent Magnets The Key Driver for our Business Peak’s value drivers are Neodymium and Praseodymium at ~85% of our future revenue*

 Neodymium (Nd) and Praseodymium (Pr) are required to produce NdFeB permanent magnets

 NdFeB permanent magnet technology is one of the key enablers for the fast growing Green energy and E-mobility sector

• NdFeB (Neodymium, Iron and Boron Magnet) is the strongest permanent magnet commercially available

• ~10 times more powerful, and 3 times lighter than traditional ferric magnet alternatives. Superior performance under a wider range of operating conditions, allowing effective miniaturisation and production of compact, lightweight, and more efficient motors

• They form the basis for the traction motors used in many of todays leading Battery and Hybrid Electric Vehicles. Enable extremely high torque motors, compact, lightweight and more efficient. A PM motor is typically 10% more efficient at part load

For personal use only use personal For and 2–4% more efficient at full load compared with induction based motors

• NdFeB Permanent magnets represent 78% of the global rare earth market by value

* See ASX announcement “Ngualla Study delivers substantial Capex and Opex savings” of 16 March 2016” 8 NGUALLA RARE EARTH PROJECT Accelerating Growth for NdPr

Wind Turbine Industry

• Wind energy is the fast growing industry sector with a CAGR between 10-15%. Permanent direct drive magnet turbines are gaining significant market share within the onshore wind market sector.

• Lightweight compared to conventional turbines, and increased durability as they do not have gearboxes. This gives permanent direct magnet turbines a significant advantage in maintenance and operational costs.

• The maintenance advantage makes these direct drive permanent magnet wind turbines the preferred solution for Offshore wind farms, where they enjoy a market share of beyond 90% among new installed projects.

Automotive industry E-cars, hybrid vehicles & E-bikes

• The vast majority of the mass production manufacturers have decided to go for the power train technology with a permanent magnet motor (NdFeB) due to their higher efficiency, larger starting torque and smaller/ lightweight construction.

• There is agreement between all established market players and industry experts that Electrification Technology will gain a significant share of the automotive market. It is projected that hybrid plug in vehicles and electric vehicles will represent up to 22% of global annual cars sales by 2025 (Goldman Sachs: Low carbon economy,

For personal use only use personal For 2015).

9 NGUALLA RARE EARTH PROJECT Accelerating Growth for NdPr

Based on the strong performance of the wind and E-car hybrid vehicle industry the demand for Nd/Pr will double in less than 10 years!

Triggered by…

• More demanding global emission standards and general stricter legislation for environmental un-friendly technologies and an increasing consciousness in our society for green technologies

Translating to …

• A growing demand for more environmental, sustainable green energy sources and more high-end efficient technologies that provide light weight solutions for sustainable green mobility

Materializing in 2 specific Megatrends … • with an outstanding, upcoming strong demand for NdFeB permanent magnets and respectively Nd/PR

1. Wind turbines and alternative energy sector For personal use only use personal For 2. E-cars, hybrid vehicles & E-bikes and in the automotive industry

10 NGUALLA RARE EARTH PROJECT Strong Short Term Demand Outlook

The global outlook: demand by 2020 for Nd & Pr will increase by 40%, or an additional 19,455t. This represents 8.4 times Ngualla’s planned annual output.

65,000 64,625t Forecast Demand of Nd+Pr Oxide

60,000

8.4x 55,000 Ngualla’s annual production 53,600t needed to cover the growth in demand 3.7x Nd+Pr (tpa) Demand Oxide Nd+Pr 50,000 Ngualla’s annual production needed to cover the growth in

For personal use only use personal For demand 45,000 45,170t 2015 2016 2017 2018 2019 2020

Source: IMCOA Quarterly Bulletins 11-13

11 NGUALLA RARE EARTH PROJECT March 2016 Ngualla Project Update

Substantial reductions in Opex and Capex*

New selective process flowsheet focussed on Nd+Pr developed and demonstrated

For personal use only use personal For Update includes new Mineral Resource estimate and a refinery located in the European Union.

* See ASX announcement “Ngualla Study delivers substantial Capex and Opex savings” of 16 March 2016”

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NGUALLA RARE EARTH PROJECT Ngualla leveraged to rare earth prices

$250

$200 Annual Operating Cost

Current Pricing Historic Average Metal Pages Prices $ M 3/1/13 to 19/4/16 $150

Calculated potential revenues based on REO production* multiplied by pricing scenarios:

$100 1) Current Pricing: 19 April 2016 Metal Pages prices for individual REO’s

Annual Cost/Revenue US Cost/Revenue Annual 2) Historic Average Metal Prices based on Metal Pages data 3/1/13 to 19/4/16 (individual rare earth $50 oxides)

Revenues exclude Ho-Er-Tm-Yb-Lu.

Operating cost before interest, taxation, depreciation and amortisation (ITDA). $0 Production levels are planned steady state operation, Ngualla Ngualla Ngualla post commissioning and ramp-up.

For personal use only use personal For Annual Potential Potential Operating Revenue – Revenue – Cost Current Historic Prices Prices

* See ASX announcement “Ngualla Study delivers substantial Capex and Opex savings” of 16 March 2016 for cost and production details”

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NGUALLA RARE EARTH PROJECT Ngualla- Very Low Capital Intensity

CAPEX, US$/kg Contained REO Annual Production CAPEX, US$

200 2,000 Fully Separated Rare Earth Oxides Intermediate Mixed Rare Earth Product 180 1,800

160 1,600

140 1,400

120 1,200

Annual REO Production 100 1,000

80 800 CAPEX US$M

60 600 $/kg Contained US 40 400 CAPEX 20 200

For personal use only use personal For 0 0 Galileo Commerce Arafura Peak Rare Element Mkango Northern Hastings Frontier Rare Matamec Quest Rare Ucore Rare Pele Alkane Avalon Rare Resources PLC Resources Resources Resources Resources Minerals Technology Earths Ltd. Explorations Minerals Ltd. Metals Inc. Mountain Resources Metals Inc. (JV) Corp. Ltd. Ltd. Ltd. Limited Metals Inc. Resources Inc. Ltd. Limited

Source: Company reports and filings * See ASX announcement “Ngualla Study delivers substantial Capex and Opex savings” of 16 March 2016 for cost and production details”

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NGUALLA RARE EARTH PROJECT Appian: A leading and differentiated mining investment firm

A differentiated business model • Patient long-term investor, focused on value growth through project development • Deep understanding of mine development and investment: Over 200 years of industry experience • Tier-1 standards: Established by Anglo American, Rio Tinto, JPMorgan and Bain Capital individuals • Experienced and complementary team: built and managed 60+ operating mines (30 in Africa) and acted on ~US$200 billion of mining corporate development transactions

A collaborative cornerstone investor • Focused on achieving technical milestones and long term value creation • Ability to follow-on: $375M fund with access to additional co-investment capital

Peak value add • Access to world-class technical and corporate finance team to support management

For personal use only use personal For • Industry relationships: team build-out, financing, offtake

15 NGUALLA RARE EARTH PROJECT IFC’s Value-Add in Mining

Long-Term Regional Global Mining Country Risk Environmental Advisory Competitive Knowledge Expertise Mitigation & Social Risk Services Financing Management • Equity • Extensive Local • 50+ Years of • Government • Environmental • Local Supplier Office Network Sector Relations & Social Best Development • Fixed & Experience Practices Floating Rates, • Local • World Bank • Local Economic Local Transaction • Greenfield Synergies • Equator Development Currencies Experience Principles • Expansion/ • Withholding Modeled after • Community • Up to 15 Year • World Bank Modernization Tax Benefit IFC Standards Development Loan Maturity Synergies Funding • Corporate • Local • Catalyst for Strategy Consultation & • Financial Other Investors Disclosure Valuation Tool and Lenders • Access to International • Resource • Capital Investors Efficiency Mobilization • Technical

Advice For personal use only use personal For

To date IFC have invested over US $400M in Tanzania

16 NGUALLA RARE EARTH PROJECT Rapidly de-risking Ngualla

Key medium term catalysts:

2014 2015 2016 2017 2018-19

 Positive PFS  Team expansion • Results from pilot • Complete BFS Q1 • Complete completed plant test work 2/3 Construction  Appointment of BFS lead • Mining Licence complete  Proof of processing Engineering firm • Plant commissioning • Offtake agreements  New Mineral Resource  Large, high grade  Beneficiation pilot plant • First production estimate • Construction decision Ore Reserve  Advancement of ESIA  Project Update • Construction Financing  Beneficiation  Drilling Program economics breakthrough • Detailed Engineering  Optimisation studies:  Operational and  Optimisation • Procurement  Location of Marketing team underway • Commence downstream plant • Financing discussions  BFS financing Construction  Stockpiling of secured with long- • Advance offtake term partners: discussions Appian and the IFC  Beneficiation • Advance engineering improvement For personal use only use personal For • Environmental  Capital cost Permitting efficiencies

17 NGUALLA RARE EARTH PROJECT Why Peak Resources? The most attractive project…

Magnet Metals Focus

Proven Clear Path to Metallurgical Market Process

Unique World-Class Asset Experienced Production and Low Marketing Capex/Opex Team

Strong Financial For personal use only use personal For Partners

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Appendices For personal use only use personal For

19 NGUALLA RARE EARTH PROJECT Capital Structure

Key statistics – as at 5 May 2016 • Number of shares (undiluted): 434.4m • Share price: A$0.052 • 52 week range: A$0.099-0.050 • Market cap: A$22.6m • As of March 31st 2016 Cash: A$0.9m (Peak Resources only). A$1m placement completed in May and Rights Issue launched to raise a further A$6m • As of March 31st 2016 Peak African Minerals (PAM) has cash of ~ US$0.7m (Peak 87.5% equity). Additional PAM funding ~A$3.2m agreed subject to regulatory approval • Unlisted Performance Rights: 8m* • Unlisted Options outstanding: 29.4m* (exercise prices A$0.10-A$0.55) * subject to performance & vesting criteria Share price performance

$0.14 Graph source: Miraqle data as at 5 May 2016 $0.12

$0.10

$0.08

$0.06

$0.04only use personal For

$0.02

$0.00

20 NGUALLA RARE EARTH PROJECT Corporate Structure

Overview Investment structure*

Stage 1: received A$20.3m • 4% • Stage 2 A$3.1 m (agreed and awaiting final regulatory approval) 15.99% • Appian and IFC have invested on a 80:20 basis Ltd Appian  Total: 19.99% in ASX:PEK, 25% in PAM and has a 2% Gross (ASX:PEK) Smelter Royalty * 75% 20.0% 5%

Appian and IFC Peak African Minerals • Collaborative long-term partners 100%

• Provides financial certainty PR NG Minerals • Enables 100% focus on project development and value growth Limited 100% • Deep operating expertise, including 30+ mines built and managed in Africa • Tier-one social and environmental practices Ngualla Rare Earth Project For personal use only use personal For • US$ components of the transaction converted at exchange rate of

A$1=US$0.7222 (RBA rate 22 December 2015) Percentages have been rounded

* Post completion of the full 2 stage investment, see 27 July 2015 ASX releases titled “Closing of BFS Financing with Appian and IFC” and 26 April 2016 “Restructured funding package set to deliver Ngualla BFS” 21 NGUALLA RARE EARTH PROJECT JORC Mineral Resource estimates Classification of Mineral Resources for the Weathered Bastnaesite Zone (WBZ) mineralisation at a 1.0% REO cut-off grade#

Contained REO Lower Cut-Off Grade JORC Resource Category Tonnage (Mt) REO (%)* tonnes Measured 18.9 4.75 900,000

Indicated 1.9 4.85 90,000 1.0% REO Inferred 0.5 4.43 20,000 Total 21.3 4.75 1,010,000

Classification of Mineral Resources for All Ngualla Resources at a 1.0% REO cut off grade

Contained REO Lower Cut-Off Grade JORC Resource Category Tonnage (Mt) REO (%)* tonnes Measured 86.1 2.61 2,250,000

Indicated 112.6 1.81 2,040,000 1.0% REO Inferred 15.7 2.15 340,000 Total 214.4 2.15 4,620,000

# The weathered Bastnaesite Zone Mineral Resource >=1% REO is contained within and is a subset of the total All Resources Ngualla Mineral Resources >=1% REO. * REO (%) includes all the lanthanide elements plus oxides. Figures above may not sum precisely due to rounding. The number of significant figures does not imply an added level of precision. For personal use only use personal For See ASX announcement “Higher grade Resource for Ngualla nearly 1M tonnes REO” of 22 February 2016 for further details

The information in this statement that relates to the Mineral Resource Estimates is based on work conducted by Rod Brown of SRK Consulting (Australasia) Pty Ltd, and the work conducted by Peak Resources, which SRK has reviewed. Rod Brown takes responsibility for the Mineral Resource Estimate. Rod Brown is a Member of The Australian Institute of Mining and Metallurgy and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activities undertaken, to qualify as Competent Person in terms of the Australian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 edition). Rod Brown consents to the inclusion of such information in this report in the form and context in which it appears. 22 NGUALLA RARE EARTH PROJECT High quality Mineral Resource

• Large, high grade Mineral Resource Continuous, wide high-grade zone • Open pit mining with low strip • Wide consistent zone; highest grade at surface • Well defined (40 x 50m spacing, depth of 120m) • Mineral Resource is based on over 40,000m of drilling (781 holes) • Mining Inventory only 22% of Mineral Resource 2016 Classification of Mineral Resources for All Resources at a 1.0% REO cut off grade

For personal use only use personal For

* See ASX Release dated 22 February 2016 “Higher grade Ngualla Mineral Resource contains nearly 1 million tonnes rare earth oxides” for details of Mineral Resource Estimation

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NGUALLA RARE EARTH PROJECT Mine and Multistage Processing Plant

 Concentrate grades ~ 45% REO  Greater than 90% mass rejection For personal use only use personal For  Standard crushing, milling and flotation equipment

24 NGUALLA RARE EARTH PROJECT EU Rare Earth Refinery

IMPROVEMENTS IN LEACH RECOVERY PROCESS

COMPARED TO PFS:

 At least double the concentrate grade into less mass  Reduces leach plant size and reagent consumption  Acid consuming iron content halved  Small size drives lower Capex and Opex  Selective leaching has potential to: - Require less acid

For personal use only use personal For - Reduce gangue dissolution - Reject cerium

25 NGUALLA RARE EARTH PROJECT

Peak Resources Limited

Head Office: Ground Floor, 5 Ord Street West Perth, Western Australia 6005 Ph: +61 8 9200 5360 Fax: +61 8 9226 3831

ASX Code: PEK

[email protected]

www.peakresources.com.au For personal use only use personal For

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