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 info@peakresources.com.au 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

6th December 2016

Rare Earth Refinery site selected in United Kingdom

Peak Resources Limited (“Peak”; ASX Code: PEK, or the “Company”) is pleased to announce that following an extensive global search and site evaluation process, the location of its proposed Rare Earth Refinery has been selected at Tees Valley on the north east coast of the United Kingdom.

Highlights of the Tees Valley, UK, location include:

Access to an existing industrial park with “plug and play” utilities

Close to ports, bulk low cost reagent supplies and a highly skilled workforce

Environmentally sustainable options for tailings and effluent disposal

Enhanced capital allowance for up to Euro 125 million on qualifying plant and machinery

Strong UK Government and Tees Valley Combined Authority support for the project

Close to UK and European markets (important for the lower value Cerium and Lanthanum)

Peak and its partners are developing the Ngualla Project in Tanzania into a low cost, next generation rare earth project strongly aligned to the high value, expanding magnet metal market. The Company has tailored its processing flowsheet to focus on the production of neodymium and praseodymium, which in 2015 accounted for 85% by value of the rare earths used in the permanent magnet market.

To better position itself in this market a strategic decision has been made by the Company to establish a rare earth refinery at a location with access to global shipping, cheap and reliable bulk reagent supplies (particularly hydrochloric acid and caustic soda), a skilled labour force, readily available power, water and environmentally sustainable options to dispose of tailings materials.

Wilton International Site (“Wilton”) in Tees Valley near the town of Middlesbrough in the United Kingdom (UK) is a large scale industrial park offering a “plug and play” option with existing access to reliable competitively priced power, utilities and services. Wilton is the planned home of UK listed Sirius Minerals Plc’s US $237 million materials handling and port facility for its North Yorkshire multi-nutrient Polyhalite fertilizer project. Wilton is also located within 3km of the Teesport, a deep water port where the rare earth mineral concentrate will be shipped, and close to a number of facilities that are capable of managing the tailings from the process.

Peak’s Managing Director Mr. Darren Townsend said “The choice of Tees Valley as the location for a Rare Earth Refinery is compelling. Tees Valley will be the base case in the Bankable Feasibility Study currently being completed, however, the Company is also evaluating additional routes to market scenarios to provide the Company with maximum flexibility and options relevant to today’s market environment. Whilst the long-term impact of Brexit is not yet fully understood, the devaluation of the Pound is expected to improve operating costs and the UK’s progressive stance on maintaining competitive corporate fiscal regimes post Brexit are both positives.”

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The United Kingdom’s International Trade Minister Greg Hands said: “This new plant investment firmly demonstrates the UK is open for business. It’s a boost for jobs in the North East of England and further growth for the Northern Powerhouse economy. Australia is a key trading partner and ally, and it is due to support from the Department for International Trade and our attractive, fair tax and regulation system that firms like Peak Resources recognise the UK as a place to invest and do business with.”

Councillor Sue Jeffrey, Leader of Redcar and Cleveland Borough Council and Member of Tees Valley Combined Authority, said: “The Combined Authority has worked and will continue to work closely with Peak Resources to support their project in Tees Valley. It is great that our area has been recognised as a preferred location by a company from the other side of the world, signalling a very clear indication of our global reputation for successful manufacturing.”

Technical Report

Selection of Tees Valley, UK

The United Kingdom meets all of the Company’s technical and commercial requirements offering some of the most competitive operating cost and commercial benefits. Tees Valley, in particular, is a world renowned industrial centre with an established history and expertise in the chemical industry. The area has first class infrastructure including excellent roads, mainline rail services, an international airport and the UK’s fifth largest sea port.

The Company has the support of the UK government through the Department for International Trade which includes UK Export Finance as well as locally from the Tees Valley Combined Authority. The Wilton site is also located within an Enterprise Zone with Enhanced Capital Allowance status. Companies locating in these sites can apply to receive a first year capital allowance of 100% on qualifying plant and machinery currently set to a maximum of 125 million Euros. The corporate tax rate is currently set at 20% and will reduce to 17% from 1 April 2020.

The location search was undertaken by Peak with assistance from Worley Parsons, AMEC Foster Wheeler and Deloitte over a number of phases. The initial phase was a high level global search that was gradually honed down through subsequent phases to a detailed study on a short list of 8 country locations. The primary focus for the study was on operating and capital costs, availability of bulk lower cost reagents and skilled labour and key commercial drivers.

Metallurgical Treatment Details

The mineralogy of the Ngualla Ore lends itself to a multi-stage mineral processing operation on site in Tanzania (Capex US $206 million*) consisting of barite removal by flotation, regrinding and rare earth flotation. From this a high grade (>40% rare earth oxide) processed concentrate is produced. The Company is evaluating a number of options from direct sale of this rare earth concentrate, toll treatment though third party facilities and as a base case the establishment of a Refinery in Tees Valley (Capex US $124 million*) by the Company or a refining partner.

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

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The Refinery will comprise of an alkali roast, water leach, dilute acid leach, purification and finally rare earth separation via solvent extraction.

Figure 1: Tees Valley location in the United Kingdom

The Tees Valley location has access to first rate chemical and electrical engineering resources, along with specialist contract engineering companies in Tees Valley for the planned reliability based maintenance program.

The major operating costs of the Refinery are reagents and this makes the Tees Valley location particularly attractive given the proximity via ocean freight to multiple direct and by-product suppliers in UK and EU. As an example, the current cost of hydrochloric acid at Teesside, our primary reagent, is approximately 40% below the indexed cost seen in the gulf coast of the US over the past five years.

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Figure 2: Wilton International - location and available infrastructure in Tees Valley, UK.

Likewise, the competitive local cost for utilities including power, steam, water and natural gas also make this site economically attractive.

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Figure 3: Wilton, Tees Valley. A “plug and play” solution close to European markets

Peak through its majority owned associated company Peak African Minerals will pay an option fee of £60,000 and enter into a 24 month option agreement to purchase the 16.3 hectare Invista site (See Figure 4 below) with the United Kingdom’s Homes and Communities Agency. The purchase price is approximately 2.4 million pounds.

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Figure 4: Invista Site Wlton showing Planned Refinery in black outline

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Next Steps

Peak is on track to complete the Bankable Feasibility Study for the Ngualla Project late in the first quarter or early second quarter 2017. The permitting activities for a Rare Earth Refinery have already commenced through the appointment of WYG Project Management and Technical Consultancy with the planning permission and environmental permit anticipated to be granted in 2017.

For and on behalf of Peak Resources Limited.

Darren Townsend

Managing Director

Metallurgy The information in this report 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 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 recognised 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.

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