Ngualla Project a Large New RARE EARTH Discovery Disclaimer

Ngualla Project A large new RARE EARTH discovery Disclaimer

The information in this document has been prepared as at March 7th, 2012. 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 December 31, 2010, as well as the Company’s other filings with the Australian Securities Administrators 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 is based on information reviewed by David Hammond who is a Member of the Australasian Institute of Mining and Metallurgy, David Hammond is 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 ad 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.

2 Outline

1/ Corporate Details 2/ Rare Earth Markets 3/ Ngualla Rare Earth Project 4/ Maiden Resource 5/ Project Advantages 6/ Development Schedule Investment Highlights Moving from Explorer to Developer

• Maiden Resource – 29th February 2012 • 4th largest rare earth deposit outside of China • Highest grade of the six largest deposits • Low market cap for size of resource – significant upside • 100% ownership • Distinct project advantages support Peak’s aim to be in the lower cost quartile of producers • Encouraging early stage metallurgical test results • Niobium – tantalum, phosphate and rare earth exploration upside • Scoping studies commencing

4 Corporate Details ASX: PEK 1st March 2012

Ordinary Shares on Issue: 207.1m Options outstanding: 11,041,667

Cash at 1st March: $6.6m Liquidity: 1.8 million shares per day (av. over 3 months) 52 week range: $0.26 - $0.87 IPO Date: 29 November 2006 Market Cap: $111.8m (at $0.54)

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

$0.89 –

$0.79 –

$0.69 –

$0.59 –

$0.49 –

$0.39 –

$0.29 –

$0.19 –

$0.09 – 01 July 2010 30 SEPT 2010 30 Dec 2010 31 mar 2011 30 JUNE 2011 29 SEPT 2011 29 Dec 2011 Board and Senior Management Consultants Alastair Hunter Non-executive Chairman Resource consultants: Hellman & Schofield Pty Ltd Richard Beazley Managing Director Metallurgical & mineral processing: Bateman Engineering Pty Ltd Dave Hammond Technical Director Mineral processing test laboratory: Amdel Jonathan Murray Non-executive Director Legal representation: Australia: Steinepreis Paganin Linda Paini Company Secretary Tanzania: AKO Law Brian Lloyd Exploration Manager (Tanz) Auditor: Deloitte Touche Tohmatsu

5 The Rare Earth Market

• Growth markets in renewable energy and advanced technologies

Digital technology Clean energy

• China controls 97% of supply, export restrictions, price increases, the West is searching for alternative supply

Global Rare Earth Metal Oxide Production (,000 tonnes) Rare Earth Metal Oxide Price ($US per tonne)

140 China 350,000 Nd Oxide USA Pr Oxide 120 Other 300,000 La Oxide Ce Oxide 100 250,000

80 200,000

60 150,000

40 100,000

20 50,000

1956 1965 1985 2002 2008 2004 2005 2006 2007 2008 2009 2010 2011

Source: Metal – Pages Ltd

6 Location and Infrastructure

• Tanzania – an established mining culture Ngualla Project • Third largest gold producer UGANDA 56km in Africa Lake Victoria • Access to transportation

KENYA

B363

147km TANZANIA

Dar Es Salaam

Lake Rukwa Ngualla Project Lake Rukwa

Indian B345 Ocean ! Mbeya

ZAMBIA N Lake Nyasa

0 100 200 400km Dar Es Salaam Port 750km

• OnsiteMALAWI power required A104 N

• Good potential 0 10 25 50km Mbeya for groundwater

7 Resource and exploration drilling

• Virgin discovery – August 2010 • 26,700m drilling for the resource

Max DH REO %: A 1 to 2% A 2 to 3% Northern Niobium – Tantalum, A 3 to 5% Phosphate Zone A >5% Northern Niobium – Tantalum, Phosphate Zone Max DH REO %: ! <1% OPEN ! 1 – 2% ! 2 – 3% ! 3 – 5% ! > 5%

Southern Rare Earth Zone

OPEN OPEN

SW Alluvials

8 Maiden JORC Resource 29th February 2012

• 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.

9 Global top 4 Rare Earth Deposit

• Ngualla is a large, high grade, globally significant rare earth deposit • It is the highest grade of the 6 largest deposits outside of China • Shallow resource and outcropping high grade mineralisation positions Ngualla as a potential low cost open pit mine

Project Comparisons 12 9 REO grade % 375m 8 10 Contained REO (Mt)

300m 350m Depth to base of resource 7

8 6

5 6 240m 155m 450m 4 REO Grade (%)

4 3 Contained REO (Mt) 126m 600m 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

Source: Company filings and Technology Metals Research Ngualla (High Grade)

10 Neodymium Dysprosium

Critical Rare Earths 4 (high)

Lithium Europium Terbium

5 rare earths are forecast to Critical 3 Tellurium Yttrium be in critical undersupply: Near-Critical Not Critical Nickel Cerium Lanthanum

• Neodymium, 2 Cobalt Manganese Gallium Praseodymium • Dysprosium Indium • Europium Samarium

• Terbium Importance to clean energy 1 (low) • Yttrium 1(low) 2 3 4 (high) Supply risk

Critical REO as % of total

20.0 Eu 15% La 11% 20% – 19.8 17.0 Dy 3% 16.1 Pr 10% 15% – Gd 2% 12.2

10% – Ce 20% Sm 1% Y 1% 5% – Other 1% Nd 35% 0 – Ngualla SREZ Ngualla SW Mountain Baiyunebo Mt Weld alluvials Pass Ngualla has a typical mix of critical 54% of the in ground value at Ngualla is rare earths and compares well with from these 5 critical RE’s. Neodymium other large deposits is the major contributor at 35% La2O3 27.4%

11 Peer Comparison – Value Upside

• Peak currently has a low market cap for the deposit size and quality • Potential to add value through advancing the Ngualla Project

Market Capital per REO Contained Tonnes $1,400.00 $1,337.89 Market Cap $1,200.00 118.0 Market Capitalisation (A$M)

$1,000.00 $971.53

$800.00

$600.00 $545.08

Market Cap per REO tonne $400.00 $336.88 $136.69 $276.83

$200.00 $102.70 $118.81 $60.23 $68.81 $26.54 $30.53 00.00 Peak Greenland Avalon Quest Frontier Kimberley RE’s Arafura Rare Element Tasman Metals Alkane Molycorp Lynas M & E Major Ngualla Kvanefjeld Nechalacho Strange Zandkorpsdrift Cummins Nolans Bear Norra Karr Dubbo Mountain Mount Project Lake Range Bore Lodge Pass Weld

Source: Technology Metals Research and Bloomberg. 5th March 2012.

12 Mineralisation 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

WEST 39m @ 4.39% EAST 56m @ 5.83% from surface from surface

1700mRL Alluvial and weathered 52m @ 3.67% NRC041 NRC039 bedrock mineralisation NDD008 H NRC042 from 62m H H H NRC043 NRC037 H H NRC034 34m @ 4.36% Alluvial and weathered H NRC032 from surface bedrock mineralisation H

NRC030 H 1600mRL

NRC064 150m H 112m NRC066 H 120m 120m 120m 44m @ 1.50% 120m from 76m to EOH 120m 120m

120m 1500mRL 88m @ 2.38% 200m from 20m Fresh rock mineralisation

101m 94m Fresh rock mineralisation 110m 700m

0 50 100 200m 481800mE 482000mE 482200mE 482400mE 482600mE SECTION 9,147,800mN Intersection labels REO%: Block Model REO %: Drill REO %: NGUALLA PROJECT A Weathered 1 to 2% 3 to 4% A 1 to 2% A 3 to 4% SOUTHERN RARE EARTH ZONE FEBRUARY 2012 A Fresh 2 to 3% >4% A 2 to 3% A >4%

13 Resource Upside

Block Model

OPEN

Ngualla Hill OPEN

SW Alluvials

Southern Rare Earth Zone A

150m OPEN OPEN 700m

1km OPEN Southern Rare Earth Zone

OPEN Mineralisation is open to the REO %: A north, south and with depth >4% B A 3 to 4% OPEN below 150m A 2 to 3% A 1 to 2%

14 Mineralogy and mineralisation styles WEST EAST

144m @ 5.14% 56m @ 5.09% from surface to EOH from surface

Colluvium NRC027 NRC028 H H NRC029

NRC025 H

H NRC023 NRC024 H H Oxide Weathered 3 – 8% REO 1600mRL Iron oxide, barite, Rare earths occur as the Fresh Fresh leached of carbonates synchysite and carbonates basnaesite with very low 98m 1 20 22m @ 1.50% uranium and thorium levelsm from 56m 12 0m 14 4m 12 12 – averaging just 21ppm U 0m 0m and 35ppm Th in the 28m @ 1.83% Fresh from 92m 114m @ 1.98% 34m @ 1.82% 1 17 1.540 to 2.5% REO from surface from 86m Southern Rare Earth Zone 7m m mineralisation above 32m @ 1.47% Coarse euhedral from 144m to EOH 1% REO.Ultramafic RE minerals

Carbonatite Photo 1: SEM photograph of a sample from NRC058, 59 to 60m showing coarse bastnaesite crystals (light grey), barite (white) and ankerite (dark grey groundmass).

0 100 200m 1400mRL 50 482200mE 482400mE Section 9,148,000mN (detail) SECTION 9,148,000mN 2011 Drill Holes Completed Intersection Labels % REO % REO H A 15 NGUALLA PROJECT Results received A Weathered 1 to 2% H A SOUTHERN RARE EARTH ZONE Results pending A Fresh >2% SEPT 2011 A No Sample Recovered Metallurgy

Iron Oxide Mineralisation Primary Carbonate Mineralisation • Preliminary leach extraction rates • Simple gravity beneficiation shows of 88% REO. promise in preliminary sighter tests. • T est work in progress to evaluate • Mineralisation may be amenable simple processing route to to conventional gravity / flotation concentrate production for near beneficiation for concentrate surface high grade mineralisation. production.

NDD006-Tray4-Weathered-carbonatite

16 Northern Zone Exploration Upside

Intersections up to: 119m at 0.71% Nb2O5 and 162ppm Ta2O5 from surface to EOH 58m at 21.2% P2O5 from 4m 66m at 1.56% REO from 10m NGUALLA PROJECT 3D Projection

Max DH Nb2O5 % OPEN 0.50 – 0.75 >0.75

Max DH Nb2O5 % Northern Niobium – Tantalum, ! <0.25 OPEN Phosphate Zone ! 0.25 – 0.50 ! 0.50 – 0.75 ! > 0.75

1km

OPEN

Southern Rare Earth Zone

17 Ngualla – a Quality Rare Earth Project • Location – accessible infrastructure • Tanzania – established mining friendly legal & taxation system • 100% clean ownership • 4th largest RE deposit in the world outside of China • Highest grade of the 6 largest deposits

18 Ngualla – a Quality Rare Earth Project • Highest grades at surface, on a hill (low strip open cut) • Very low uranium and thorium levels • Weathered material may be amenable to simple acid leach • Fresh mineralisation – conventional gravity / flotation • Exploration upside – Nb, Ta, P and REO ... on the road to development

19 Development Program for Rare Earth Production

Commenced Metallurgical Characterisation Supply Agreements Zari JV Aquisition Maiden Resource Statement Production Start Up

Milestones Metallurgical Flow Sheet Development Pilot Plant Trials

1st Year Drill Program

3rd Year Drill Program

4th Year Drill Program RE Exploration & Resource Drilling

2010 2011 2012 2013 2014 2015 2016

Scoping Study

Pre-Feasability Study

Definitive Feasability Study

to RE Production Construction Potential Pathway Pathway Potential

EXPLORER DEVELOPER MINER

20 Peak Resources Limited Head Office: Level 2, 46 Ord St, West Perth WA 6872 Ph: +61 8 9200 5360 Fax:+61 8 9226 3831 www.peakresources.com.au ASX Code: PEK Richard Beazley Managing Director [email protected] David Hammond Technical Director [email protected] Alastair Hunter Non-executive Chairman [email protected]