2nd March 2017 Ngualla Mineral Resource estimate re-stated to include barite Peak Resources Limited ( “Peak” or “the Company” ; ASX Code: PEK ) is pleased to re-issue the Mineral Resource estimate for its Ngualla Rare Earth Project in Tanzania to include a further commodity – the industrial mineral barite. As part of the work programs for the Ngualla Rare Earth Project Feasibility Study, which remains on track for completion in the near term, it has become apparent that a high grade barite stream is produced during rare earth processing. The Company wishes to keep the market informed of the potential for barite, which, although it will not be included in the Feasibility Study, will be evaluated subsequently as a potential upside for the Project. Highlights: The Mineral Resource estimate for the Weathered Bastnaesite Zone mineralisation at a 1% rare earth oxide (REO) lower grade cut-off is: 21.3 million tonnes at 4.75% REO* and 37.7% barite for 1,010,000 tonnes of contained REO and 8.03 million tonnes of contained barite. The Weathered Bastnaesite Zone Mineral Resource is included within and is a subset of the total Mineral Resource estimate for the Ngualla Project at a 1% REO lower grade cut-off of: 214.4 million tonnes at 2.15% REO* and 16.6% barite for 4,620,000 tonnes of contained REO and 35.6 million tonnes of contained barite. The REO component of the Ngualla Mineral Resource estimate remains unchanged from that reported on 22 February 2016 (ASX Announcement ‘Higher Grade Mineral Resource for Ngualla Rare Earth Project’). There may be potential for barite to become a future by-product once a rare earth operation is established at Ngualla and on completion of further studies. The Feasibility Study for the Ngualla Rare Earth Project based on the unchanged +1% REO Weathered Bastnaesite Zone Mineral Resource excludes any barite by-product and remains on track for completion late in the first quarter or early second quarter 2017 and this remains the Company’s priority focus and the main value driver for the project. * total rare earth oxides plus Y 2O3. See Tables 1 and 2 for JORC classification of Mineral Resource estimates. Peak’s Managing Director Mr. Darren Townsend said “Barite presents another potential opportunity to add value to a future rare earth operation at Ngualla and will form part of further studies after completion of the BFS”. Peak Resources Limited Ground Floor, 5 Ord Street, West Perth, Western Australia 6005. PO Box 603, West Perth 6872. ASX: PEK ACN 112 546 700 Telephone: +61 8 9200 5360 [email protected] www.peakresources.com.au Company Secretary: Graeme Scott Non-executive Chairman: Peter Harold Managing Director: Darren Townsend Technical Director: Dave Hammond Non-Executive Directors: Jonathan Murray & John Jetter Technical Report The industrial mineral barite (barium sulphate, BaSO 4) is a major component of the host rock to the REO mineralisation at Ngualla, particularly in the Weathered Bastnaesite Zone that is the basis of the Feasibility Study currently nearing completion. Metallurgical testwork completed by Peak has indicated that relatively pure barite is expected to report to one of the rare earth waste streams during processing. The initial stage of the beneficiation circuit, which is designed to upgrade and recover the rare earth mineral bastnaesite, also recovers a separate stream containing approximately 90% of the barite in the feed at a purity of greater than 90% barite, a potential product which may already meet (“Drilling Mud” specifications - see Barite Market Summary following). Preliminary studies have shown that this barite stream can be further treated using additional physical separation equipment such as hydrocyclones and magnetic separators to produce a higher specification “Chemical Grade” product. This product contains greater than 95% barite with a low iron content (less than 0.5%). In light of this potentially economic by-product of a future rare earth operation at Ngualla, Peak commissioned SRK Consulting (Australasia) Pty Ltd (SRK) to include the reporting of barite as a by- product within the rare earth Mineral Resource estimate at a 1% lower grade cut off REO. The Mineral Resource estimates are classified in accordance with the 2012 edition of The Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012). The rare earth oxide (REO) component of the Mineral Resource estimate, the supporting data, estimation methodology and Material Information remain unchanged from the 2016 Mineral Resource estimate completed by SRK and are reported in ASX Announcement ‘Higher Grade Mineral Resource for Ngualla Rare Earth Project’ of 22 February 2016. Metallurgical, engineering and marketing studies on the economic potential of barite as a by-product at Ngualla require further studies and test work. A barite by-product will not form part of the current Feasibility Study on the Ngualla Rare Earth Project that is on track for completion late in the first quarter or early second quarter 2017. Barite rather represents a potential future upside to the project, together with other commodities known to occur within the project that include fluorite, phosphate and niobium. The Weathered Bastnaesite Zone Mineral Resource The large size of the Ngualla Rare Earth deposit allows Peak to select only the most favourable mineralisation for development during the first decades of the project’s life. The weathered Bastnaesite Zone mineralisation is a particularly high grade and consistent style of rare earth mineralisation within the deposit that allows for a less complex metallurgical process and drives Ngualla’s lower capital and operating costs when compared to other rare earth development projects (ASX Announcement ‘Ngualla Project Study delivers substantial Capex and Opex savings’ of 16 March 2016). Figure 1: Oblique view looking north of the Ngualla Carbonatite and total All Resources Ngualla Mineral Resource block model coloured by REO grade (left) and barite (right). Located at the geological core of the Ngualla Carbonatite (Figure 1), the weathered bastnaesite mineralisation consists of highly weathered ferruginous bedrock, gravel and ferricrete. Rare earths are contained within the fluorocarbonate mineral bastnaesite within a barite and iron oxide rich host rock with quartz. The weathered Bastnaesite Zone mineralisation is also defined as containing less than 10% calcium and very low phosphorous of less than 0.3%. The Mineral Resource estimate for the Weathered Bastnaesite Zone mineralisation at a 1% REO lower grade cut-off is: 21.3 million tonnes at 4.75% REO and 37.7% barite for 1,010,000 tonnes of contained REO and 8.03 million tonnes of contained barite. See Table 1 for classification of Mineral Resource and Table 3 for breakdown of individual rare earth oxide grades and relative distributions as a proportion of total REO. The Weathered Bastnaesite Zone Mineral Resource estimate is contained within and is a subset of the Total All Ngualla Mineral Resource estimate. The weathered Bastnaesite Zone +1% REO Mineral Resource is of high confidence and is well defined, with 99% classified in the Measured and Indicated JORC Resource categories with the majority (90%) being in the highest category (Measured). Table 1 : Mineral Resource estimate Summary – Weathered Bastnaesite Zone + 1% REO* Contained REO Lower cut-off JORC Resource Tonnage REO BaSO tonnes 4 grade Category (Mt) (%) (%) ('000) Measured 18.9 4.75 900 37.8 Indicated 1.9 4.85 90 38.3 1% REO Inferred 0.5 4.43 20 31.5 Total 21.3 4.75 1,010 37.7 *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. See Table 3 for relative distributions of individual rare earths as a proportion of total REO. Figures may not sum due to rounding. Barite grade is derived from geochemical assays for barium and the assumption, supported by extensive mineralogical studies, that barium is present as barite. Figure 2: The location of drilling over the 2016 Mineral Resource block model coloured by barite grade. The high grade weathered mineralisation occurs from surface and extends to depths of over 140m. Grades are evenly distributed and the morphology of the mineralisation enables low cost open pit mining with very low strip ratios (ASX Announcement ‘Ngualla Project Study delivers substantial Capex and Opex savings’ of 16 March 2016). The Total All Ngualla Mineral Resources Estimate The Weathered Bastnaesite Zone Mineral Resources estimate reported above is included within and is a subset of the Total All Mineral Resource for the Ngualla Project at a 1% REO lower grade cut-off, which is: 214.4 million tonnes at 2.15% REO and 16.6% barite for 4,620,000 tonnes of contained REO and 35.6 million tonnes of contained barite See Table 2 for classification of Mineral Resource and Table 4 for relative distributions of individual rare earth oxide grades and relative distributions as a proportion of total REO. The Total All Ngualla Mineral Resource estimate Weathered Bastnaesite Zone Mineral Resource estimate is contained within and is a subset of the Total All Ngualla Mineral Resource estimate includes the Weathered Bastnaesite Mineral Resource. Figure 3: Perspective view of the Ngualla Resource block model (+1% REO) sliced in a south-westerly direction, looking west, showing high grade barite mineralisation within the Weathered Bastnaesite Zone on Ngualla Hill. Table 2: Mineral Resource estimate Summary - Total All Ngualla Mineral Resource estimate + 1% REO Contained REO Lower cut-off JORC Resource Tonnage REO BaSO tonnes 4 grade Category (Mt) (%) (%) ('000) Measured 86.1 2.61 2,250 20.2 Indicated 112.6 1.81 2,040 13.8 1% REO Inferred 15.7 2.15 340 17.6 Total 214.4 2.15 4,620 16.6 * The total All Ngualla Mineral Resources +1% REO includes and contains the weathered Bastnaesite Zone Mineral Resource +1% REO shown in Table 1.