ASX Release19th December 2012

DEVELOPING A NEW RARE EARTH DISCOVERY

Peak Resources Limited Level 2, 46 Ord Street, West Perth, Western Australia 6005. PO Box 603, West Perth, Western Australia 6872. ASX: PEK OTCQX: PKRLY ACN 112 546 700 Telephone: +61 8 9200 5360 info@peakresources.com.au www.peakresources.com.au

Non-Executive Chairman: Alastair Hunter Managing Director: Richard Beazley Technical Director: Dave Hammond Non-Executive Director: Jonathan Murray Company Secretary: Jeff Dawkins

Ngualla drilling program update and new high grade results

Peak Resources Limited (Peak; ASX: PEK; OTCQX: PKRLY), is pleased to provide an update on results received to date

from the 2012 drilling program and report additional new high grade drill results received from its 100%-owned Ngualla

Rare Earth Project in Tanzania.

The 2012 program of 13,600m of RC and diamond drilling in the priority area of the Southern Rare Earth Zone targeted for first

production is now complete and field activities have ceased until the end of the rains in April 2013.

The 2012 drilling will allow for the estimation of a large Measured Mineral Resource and provide the definition required for a

detailed mine plan and schedule for the project.

Drilling completed in 2012 defines a continuous zone of high grade mineralisation from surface defined by several holes

averaging over 5% REO down their entire length, extending to vertical depths of over 100m and including individual 2m

composite samples grading up to 9.53% REO. The high grade zone extends over a strike length of 350m and width of 100m or

more. This zone was not identified by drilling used to complete the maiden Mineral Resource in February 2012 and is expected

to increase the amount of high grade mineralisation within this part of the deposit.

Results received to date also extend the Southern Rare Earth Zone a further 300m to the south, and at depth in several areas.

Drill results highlights:

New assay results received from a further 25 drill holes of the 2012 program include:

NDD012: 140m at 4.66%REO* from surface to end of hole

NDD013: 160m at 5.06%REO from surface to end of hole

NDD017: 145.8m at 4.62%REO from 23.9m

NRC268: 134m at 4.45%REO from surface

NRC271: 80m at 4.40%REO from surface

Assay results for the remaining 13 holes are awaited and a revised Mineral Resource estimate is on schedule for completion

by the end of the first Quarter 2013.

*REO = Total Rare Earth Oxide. See Table 3 for drill intersection details and Table 2 for individual rare earth distribution.

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ASX Release 19th December 2012

Background

The Ngualla Rare Earth Project in Tanzania is a recent discovery that ranks as the

fifth largest rare earth deposit* in the world outside of China. It is also the highest

grade of the large undeveloped deposits.

*See Table 2 for Mineral Resource classification details and Table 3 for breakdown of individual REO’s

Ngualla has several fundamental geological aspects that offer distinct advantages

for development over other rare earth projects. These include the large size of

the deposit, the outcropping, high grade mineralisation amenable to open cut

mining with low strip ratios, favourable mineralogy for processing and the lowest

uranium and thorium levels of any major rare earth deposit in the world.

These favourable aspects are reflected in the results of the scoping study and

preliminary economic assessment released to the ASX on 3rd December 2012,

which indicate very low capital and operating costs compared to other rare earth

projects.

The long mine life (+25 years), high net present value (US$1.57billion), high internal rate of return (53%) and a rapid payback

within three years represent an attractive investment proposition for the potential cornerstone investors and strategic partners

with whom Peak is currently in discussions.

Data from the drilling program just completed will support a revised Mineral Resource estimate and move more of the high

grade rare earth mineralisation in the priority area of the deposit targeted for first production from Inferred and Indicated into

the Measured Mineral Resource classification.

Further optimisation of the proven metallurgical process and the construction of a pilot plant will also contribute to the basis of

the feasibility studies. Production of high purity separated rare earth oxide products from solvent extraction test work by mid-

2013 for assessment by off take customers.

Figure 1: Maiden Mineral Resource block model coloured by REO % grade and drill holes (as at maiden Mineral Resource, 29th February 2012) on satellite image draped over topography, Ngualla Carbonatite.

Location of Peaks 100% owned Nguala Project, Tanzania

Block Model REO%

A 1 to 2%

A 2 to 3%

A >3%

! Drill holes A Bastnaesite Zone

OPEN OPEN

OPENPe

rimet

er of Carbonatite

Northern Zone

South West Alluvials

550m

Mt Mapuma

Bastnaesite Zone Southern Rare Earth Zone

Perim

eter

of C

arbo

natite

!Mbeya

Dar Es Salaam

UGANDA

KENYA

ZAMBIA

MALAWI

Lake Victoria

Indian Ocean

Lake Rukwa

Ngualla Project

Lake Nyasa

T A N Z A N I A

N

400km0 100 200

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ASX Release 19th December 2012

9147

500

mN

9148

000

mN

9148

500

mN

482500 mE482000 mE

750m

D

D

DDDDDD

D

D

DDD

D

Southern Rare Earth Zone

South West Alluvial Zone

OPEN

OPENOPEN

OPEN

250m0 100

N

Drill holes max REO %:! 0 to 1! 1 to 2! 2 to 3 ! 3 to 5 ! >5! 2012 Drill program Completed hole, results awaited

Block Model REO%: A 3 to 4%A > 4%

Bastnaesite Zone

Bastnaesite Zone

NRC266

NRC267

NRC263

NRC262NRC252/253

NRC254

NRC265

NRC260

NRC259

NRC251

NRC257NRC258

NRC261

NRC270

NDD016

NRC264

NRC268

NRC255

NRC271

NDD012

NDD013

NDD017

NDD014

NRC256

NRC266

NRC267

NRC263

NRC262NRC252/253

NRC254

NRC265

NRC260

NRC259

NRC251

NRC257

NRC269

NRC258

NRC261

NRC270

NDD016

NRC264

NRC268

NRC255

NRC271

NDD012

NDD013

NDD017

NDD014

NRC256

140m @ 4.66% from surface to EOH

88.26m @ 5.21% from surface

145.8m @ 4.62% from 23.9m

62m @ 4.15% from surface

115m @ 3.27% from surface to EOH

106m @ 3.54% from surface

134m @ 4.45% from surface

160m @ 5.06% from surface to EOH

80m @ 4.40% from surface

Figure 2: Plan of new rare earth intersection highlights (new results hole numbers labelled) and drilling completed to date coloured by maximum down hole REO%, holes drilled and awaiting results and Ngualla Mineral Resource block model (+3% REO)

Drilling ProgramInfill and extension drilling that commenced in May 2012 in the priority area of the Southern Rare Earth Zone targeted for first

production has been successfully completed prior to the onset of rains for a total of 130 holes for 13,600m of reverse circulation

(RC) and diamond drilling.

Assay results from a further 25 drill holes of the 2012 drilling program have been received and include:

NDD012: 140m at 4.66%REO* from surface to end of holeincluding:

84m at 5.39%REO from surface

NDD013: 160m at 5.06%REO from surface to end of hole

NDD014: 155.5m at 3.71%REO from surface including:

88.26m at 5.21%REO from surface

NDD017: 145.8m at 4.62%REO from 23.9m

NRC255: 62m at 4.15%REO from surface

NRC256: 115m at 3.27%REO from surface

NRC264: 106m at 3.54%REO from surface

NRC268: 134m at 4.45%REO from surface

NRC271: 80m at 4.40%REO from surface

*REO = Total Rare Earth Oxide. See Table 3 for drill intersection details and Table 2 for individual rare earth distribution.

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ASX Release 19th December 2012

9147

500

mN

9148

000

mN

9148

500

mN

482500 mE482000 mE

750m

D

D

DDDDDD

D

D

DDD

D

South West Alluvial Zone

OPEN

OPENOPEN

OPEN

250m0 100

N

Drill holes max REO %:! 0 to 1! 1 to 2! 2 to 3 ! 3 to 5 ! >5! 2012 Drill programA 2012 Drilling highlightsA 2011 Drilling highlights Completed hole, results awaited

Block Model REO%: A 3 to 4%A > 4%

Bastnaesite Zone

Bastnaesite Zone

Zone of deep continuoushigh-grade mineralisation

Extension ofmineralisation

Zone of deep continuoushigh-grade mineralisation

Extension ofmineralisation

NDD010

NRC245

NRC242

NRC183

NRC027

NRC185

NRC195

NRC228

NRC234

NAC545

NAC232NAC237

NRC168

NRC180

NRC176

151m @ 5.15% from surface to EOH

102m @ 5.51% from surface to EOH

140m @ 5.21% from surface to EOH

121m @ 4.86% from surface to EOH

16m @ 2.60% from 10m

46m @ 2.29% from 50m

127m @ 5.15% from surface to EOH

103m @ 5.25% from surface to EOH

160m @ 5.25% from surface to EOH

144m @ 5.14% from surface to EOH

112m @ 5.16% from surface to EOH

77.8m @ 4.53% from surface

31m @ 2.66% from surface to EOH

24m @ 2.43% from 26m

41m @ 2.96% from surface

50m @ 1.38% from surface

Southern Rare Earth Zone

Figure 3: Southern Rare Earth Zone drill plan showing new continuous zone of deep weathering containing high grade rare earth enrichment (2012 intersections shown in yellow) and 2012 intersections defining a 300m extension to the Southern Rare Earth Zone

The new results continue to confirm the robust nature and continuity of this enriched, near surface weathered mineralisation in

the heart of the bastnaesite zone targeted for first production.

Review of results from drilling completed in 2012 identifies a continuous zone of high grade mineralisation extending from

surface which contains several +5% ‘entire hole’ intersections to vertical depths of over 100m (Figure 3). This high grade zone

has a strike length of 350m and width of 100m or more.

The zone was not identified by the wider spaced drilling completed in 2011 that was used to complete the maiden Mineral

Resource of February 2012 and so it is expected to increase the amount of high grade mineralisation within this part of the

deposit.

The 2012 drilling results received to date also extend the Southern Rare Earth Zone a further 300m to the south, and at depth

in several areas through deeper drilling in the weathered zone (Figure 3).

Assay results for the remaining 13 holes are awaited and a revised Mineral Resource estimate following the JORC Code and

Guidelines is on schedule for completion by the end of the first Quarter 2013.

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ASX Release 19th December 2012

This new resource model will include metallurgical recovery parameters and allow for the definition of a detailed mine plan and

production schedule for use in feasibility studies due to commence in early 2013.

Richard Beazley Managing Director

The information in this report that relates to Exploration Results is based on information compiled and/or reviewed by Dave Hammond who is a Member of The Australasian Institute of Mining and Metallurgy. Dave 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 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”. Dave Hammond 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 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 H&S Consulting 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.

Enquiries:

Company Media

Richard Beazley Ben KnowlesManaging Director Walbrook Investor RelationsT: +61 (0) 8 920 5360 T: +61 (0) 8 6189 2230E: richard@peakresources.com.au M: +61 426 277 760W: www.peakresources.com.au E: ben.knowles@walbrookir.com.au

Derek Gradwell, SVP, Natural ResourcesMZ Group – North AmericaT: +1 949 259 4995 E: dgradwell@mzgroup.us W: www.mzgroup.us

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ASX Release 19th December 2012

Table1:SouthernRareEarthZone–diamondandRCrareearthdrillintersections,+1%REO

Selected intersections + 2% REO in italics and minimum 4m intersection width.

NDD* prefix = PQ3 diamond drill hole. NRC* prefix = RC drill hole

Hole ID East North Hole Depth (m) From (m) To (m) Interval (m) REO %

NDD012 482,396 9,148,049 140 0 140 140* 4.66(incl. 0 84 84 5.39)

NDD013 482,240 9,147,968 160 0 160 160* 5.06(incl. 0 81.77 81.77 5.81)

NDD014 482,258 9,147,912 160 0 155.5 155.5 3.71(incl. 0 88.26 88.26 5.21)

NDD016 482,155 9,147,741 67 10.7 43 32.3 4.2456.5 62 5.5 2.40

NDD017 482,160 9,147,705 180 0 20.4 20.4 2.5223.9 169.7 145.8 4.62

NRC251 482,280 9,148,241 74 0 70 70 2.67NRC252 482,324 9,148,241 37 0 33 33 3.16NRC253 482,321 9,148,241 51 0 26 26 2.15

29 51 22 2.04NRC254 482,360 9,148,241 24 0 20 20 2.98NRC255 482,356 9,148,246 120 0 62 62 4.15

66 98 32 1.59NRC256 482,398 9,148,241 115 0 115 115* 3.27NRC257 482,439 9,148,241 28 0 4 4 2.82

20 24 4 2.00NRC258 482,432 9,148,247 110 0 110 110* 2.89NRC259 482,248 9,148,415 73 10 14 4 2.56

38 42 4 1.2058 68 10 1.85

NRC260 482,212 9,148,451 120 0 75 75 2.3586 99 13 1.88

NRC261 482,079 9,148,156 120 0 32 32 4.5636 74 38 2.9584 88 4 1.1794 106 12 1.34110 114 4 1.04

NRC262 481,954 9,148,237 120 0 4 4 2.9014 36 22 1.8942 78 36 4.0596 102 6 1.55106 110 4 2.13

NRC263 481,997 9,148,246 120 0 30 30 2.4654 64 10 1.32108 118 10 1.39

NRC264 482,036 9,148,284 120 0 106 106 3.54NRC265 482,076 9,148,316 155 0 20 20 1.56

28 155 127* 3.37NRC266 482,036 9,148,321 120 0 26 26 4.18

30 34 4 2.1538 44 6 1.3248 120 72* 3.12

NRC267 482,122 9,148,280 133 0 4 4 2.498 14 6 1.5220 130 110 2.17

NRC268 482,098 9,148,107 135 0 134 134 4.45(incl. 0 28 28 5.23and 38 64 26 5.73and 68 106 38 5.25)

NRC270 482,283 9,148,101 180 0 32 32 2.5838 180 142* 2.61

NRC271 482,200 9,148,102 83 0 80 80 4.40Note: REO = total rare earth oxides including yttrium. See Table 2 for relative distribution of individual rare earth oxides. Samples are 2m composites from angled -60° west RC drilling except for NDD** holes which are PQ diamond from surface and RC holes NRC260 and NRC268 which are drilled at 90° azimuth (east). NDD014 was drilled at 0° azimuth (north). Intersections calculated using 1% REO lower cut and a maximum of 2m internal dilution. Analysis by SGS laboratory, Perth, by 4 acid digest and ICP or XRF. Co-ordinate system is Arc 1960 UTM zone 36S. * = hole ended in mineralisation.

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ASX Release 19th December 2012

Table2:ClassificationofMineralResourcesfortheNguallaRareEarthProject,1.0%and3.0%REOcut-offgrades(February2012).

Lower cut – off grade

Resource Category

Tonnage (Mt)

REO (%)*

Contained REO tonnes

1.0%REO

Measured 29 2.61 750,000

Indicated 69 2.43 1,700,000

Inferred 72 1.92 1,400,000

TOTal 170 2.24 3,800,000

3.0%REO

Measured 11 3.99 430,000

Indicated 21 4.09 850,000

Inferred 8.7 4.11 360,000

TOTal 40 4.07 1,600,000

*REO (%) includes all the lanthanide elements plus yttrium oxides. Figures above may not sum precisely due to rounding. The number of significant figures does not imply an added level of precision.

Table3-Relativecomponentsofindividualrareearthelementoxides(includingyttrium)asapercentageoftotalREOfortheNguallaSouthernRareEarthandNorthernZones(>1%REO).

OxiDE %OFTOTalREO*

lig

ht

R

are

Ear

ths

Lanthanum La2O3 27.1

Cerium CeO2 48.3

Praseodymium Pr6O11 4.74

• Neodymium Nd2O3 16.3

Samarium Sm2O3 1.65

Hea

vy

Rar

eE

arth

s

• Europium Eu2O3 0.35

Gadolinium Gd2O3 0.78

• Terbium Tb4O7 0.07

• Dysprosium Dy2O3 0.17

Holmium Ho2O3 0.02

Erbium Er2O3 0.06

Thulium Tm2O3 0.00

Ytterbium Yb2O3 0.02

Lutetium Lu2O3 0.00

Other • Yttrium Y2O3 0.52

Total% 100

(*= Mineral Resource block model at 1% REO cut). Source: Arafura Website and *= Ngualla Mineral Resource >1% REO

The blue markers (•) denote the five “critical rare earths”, which are predicted to be in undersupply in the years ahead and predicted

to command significantly higher value than other rare earths. (US DoE, ‘Critical Materials Strategy’ report, December 2011).

The critical rare earths contribute the majority of the value from Ngualla at 56% of the in ground value. Of these, neodymium is the

main single rare earth value driver, contributing 34%, (relative rare earth oxide prices: Metal Pages, 11th September 2012).