september 2011 quarterly activities...

Quarterly aCtIVItIeS report

SEPTEMBER 2011

Peak Resources Ltd

Level 1, 11 Ogilvie RoadMount Pleasant, Western Australia 6153

PO Box 1271, Canning Bridge Western Australia 6153

Directors:

Alastair Hunter, Executive Chairman

Dave Hammond, Technical Director

Jonathan Murray, Non-Executive Director

Linda Paini, Company Secretary

ASX Symbol: PEK

Telephone: +61 8 9316 9599

Email: [email protected]

ACN 112 546 700

www.peakresources.com.au

HIGHLIGHTSNgualla Rare Earth Project (Southern Tanzania) Rare Earths, Phosphate, Niobium – Tantalum

Drill results received this Quarter confirm Ngualla to be a major new rare earth discovery - one of the largest and better grade of recent years.

Resource Drilling Programa large drilling program is in progress at Ngualla to provide information for a maiden JorC compliant resource estimate to be completed in the first quarter of 2012. Wide intersections continue to be received from the program and to extend the rare earth mineralisation that occurs from surface over a substantial area. Intersections include:

NRC026: 120m at 4.45% REO from surface to eoH


NRC053: 161m at 3.88% REO from12m to eoH

NRC062: 22m at 6.17% REO from 18m

NRC078*: 36m at 6.38% REO from 36m – NEw REsult


*NrC078 is a new result not previously released and demonstrates high grade mineralisation still remains open on the most northern drill line completed to date.

Rare earth mineralisation +3% REO now extends over an area of 740m x 660m and remains open in all directions.

Niobium – tantalum and Phosphate PotentialSignificant intersections of niobium – tantalum and phosphate have also been returned from the peripheral holes of the Southern rare earth Zone resource drilling program. this is encouraging as the highest tenor surface geochemical anomalies and exploration targets for these metals are located in the Northern Niobium – tantalum Zone over one kilometre to the north. results include:

NRC043: 26m at 22.6% phosphate from 2m

NRC067: 44m at 0.45% Nb2O5, 102ppm ta2O5 and 14.1% phosphate from 64m

additional rC drilling is planned to provide a further test of this second style of mineralisation once the rare earth resource drilling is completed.

Move to gain 100% ownership of Ngualla Projecton 26th august 2011 peak announced it had entered into a conditional agreement to take 100% ownership of the Ngualla project through the acquisition Zari.

the Company had $5.6million cash on hand at the end of the quarter.

2

SEPTEMBER 2011


A CarbonatiteA AlterationZone

Mt Weld A Central REO

Lanthanide Deposit

A Niobium-Tantalum Crown Deposit

Ngualla ProjectA +3% REO in Soils

A +0.5% Niobium Oxide in Soils

0 1 2km

Figure 2: Size comparison of the Mt Weld (lynas) and Ngualla (peak) Carbonatites, the distribution of mineralisation at Mt Weld, and soil anomalism and mineralisation at Ngualla.

the Quarter also saw the release of a series of encouraging additional rare earth assay results from this drilling program, which demonstrate the potential for Ngualla to be one of the largest and better grade new rare earth discoveries of recent years. these results are reported and discussed in more detail in the following sections of this report.

Currently, peak as operator and manager is earning 80% equity in the Ngualla project by carrying Joint Venture partner Zari exploration ltd (Zari) through to completion of a bankable feasibility study. on 26th august 2011 peak announced it had entered into a conditional agreement to take 100% ownership of the Ngualla project through the acquisition of Zari.

Ngualla Rare Earth Project (Southern Tanzania) Rare Earths, Phosphate, Niobium – TantalumPeak Resources – Operator Manager earning 80% (Conditional offer made to acquire 100%)

summary OverviewMineralisation at the Ngualla rare earth project in southern tanzania is similar in style to Mt Weld (lynas Corporation ltd) in Western australia, being rare earth enrichment in the deeply weathered regolith profile of a large carbonatite. (Figure 2). Ngualla is a virgin discovery by peak, with the first holes completed in June 2010.

extensive primary mineralisation has also been identified in the fresh rock beneath the weathered zone and also within sedimentary material shedding down from Mt Ngualla to the south west (Figure 3).

the Company has maintained a high level of activity at Ngualla during the Quarter with the continuation of a major resource definition drilling program.

Figure 1: location of peaks projects in tanzania

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Tanga

Moshi

Iringa

Dodoma

TaboraKigoma

Arusha

Mwanza

Singida

Morogoro

Zanzibar

Shinyanga

Dar Es Salaam

Nairobi

KENYA

ZAMBIA

DCR

BURUNDI

RWANDA

Lake Victoria

Indian Ocean

Lake Tanganyika Lake Rukwa

T A N Z A N I A

! Mbeya400km0 100 200 300

N

Ikoma

Igunga

Nkerege

Geita West (Imweru)

Igurubi

Ngualla

Bunda

3

SEPTEMBER 2011


9147

000

mN

9147

500

mN

9148

000

mN

9148

500

mN

9148

9000

mN

9148

9500

mN

483500 mE483000 mE482500 mE482000 mE481500 mE481000 mE480500 mE

D D D D D D D

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SW Alluvials

Southern Rare Earth Zone

Northern Niobium – Tantalum Zone

Fig. 2

Fig. 3

NAC366

NAC082

NRC027

NRC089

NRC073

NRC078

NRC015

26m @ 6.56% from 24m

161m @ 3.88% from surface

Mt. Ngualla

NRC043

NRC053

NRC058

NRC062

NRC66

131m @ 4.27% from surface to EOH

22m @ 6.17% from 18m and 54m @ 2.53%from 54m




16m @ 5.78% from 38m

36m @ 6.38% from 36m




Intersection labels REO %: A New resultsA Current quarter highlightsA 2010 highlights

Drill hole max REO %

! <1

! 1 to 2

! 2 to 3

! 3 to 5

! >5D Completed drilling, results awaited Surface samples REO %:

— 1.4

— 2.4

— 3.4

— 4.0

Geology A Felsic VolcanicA Fenite

Carbonatite: A Outer Zone A Intermediate Zone A Central ZoneA Ultramafic

1000m5000 250

N

REO = total rare earth oxide including yttrium OCTOBER 2011

In addition to rare earths, Ngualla also has the potential to host large, near surface deposits of niobium – tantalum and phosphate to the north of the main rare earth zone. exploration in these northern areas is at an early stage. the current program has however intersected niobium and phosphate mineralisation on the northern edges of the rare earth resource drill pattern.

Mineralogical studies show that rare earths are in the form of carbonate minerals with very low uranium and thorium levels. Metallurgical and beneficiation test work is in progress to determine optimum processing routes to concentrate and extract the rare earths.

Drilling operations are planned to continue on site until the start of rains around the end of November. a steady flow of assay results will continue to be received over the coming months, culminating in the release of a maiden rare earth resource estimate in the first quarter of 2012.

Figure 3: location of areas of planned drilling at Ngualla with key intersections and surface sampling results

4

SEPTEMBER 2011


Rare Earth Resource Definition Drilling Programthe current resource definition drilling program commenced on 24th May 2011 and is testing a total area of 2.1km2 in the Central Hills and adjacent alluvial areas with regular, grid based drilling (Figure 3).

the primary objective of the program is to provide sufficient information for a maiden JorC compliant resource estimate for both the bedrock and alluvial zones of rare earth mineralisation at Ngualla. Diamond drilling will provide additional samples for ongoing beneficiation and metallurgical test work currently in progress. two wide spaced traverses of rC drill holes are also planned after the completion of the resource drilling program to test the extent of the niobium – tantalum – phosphate mineralisation to the north of Ngualla Hill (Figure 3).

assay results from the first 60 holes of the program were received during the Quarter and intersection highlights include:

*= new intersection not previously reported. reo = total rare earth oxide including yttrium. See table 2 for details of rare earth intersections received this quarter and Figure 12 for relative distribution of individual rare earths

NRC05

3

NRC07

8

NRC07

3

NRC01

1

NRC09

0

NRC02

8

NRC02

7

NRC02

6

NRC09

2

NRC08

9

NRC06

6

NRC06

4

NRC03

6

NRC04

3

NRC05

8

NRC06

2

NRC01

5

NRC04

6

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48m @ 2.61% from surface and

8m @ 5.35% from 36m



22m @ 6.17% from 18m and

54m @ 2.53% from 54m

64m @ 5.48% from surfaceMt. NguallaMt. NguallaMt. NguallaMt. Ngualla


26m @ 6.56% from 24m56m @ 5.83% from surface




161m @ 3.88% from 12m to EOH

740m

660m

18m @ 4.41% from surface34m @ 4.36% from surface

36m @ 6.38% from 36m to EOH

16m @ 5.78% from 38m

482000 mE 482500 mE

9148

000

mE

9148

500

mE

N

250m1000 50

Intersection labels REO %:A New resultsA Current quarter highlights A 2010 highlights

REO % in soils: A >3 A >2

REO = total rare earth oxide including yttrium

SOUTHERN RARE EARTH ZONE OCTOBER 2011

Drill holes max REO %: ! 1 to 2! 2 to 3

! 3 to 5 ! >5

Planned drilling Completed holes, results awaited

D

Figure 4: plan of Southern rare earth Zone showing new results and intersection highlights from drilling to date over surface sampling contours.



NRC039: 60m at 5.52% REO from surface


NRC053: 161m at 3.88% REO from12m to eoH


NRC078: 36m at 6.38% REO from 36m*


5

SEPTEMBER 2011


results received to date demonstrate the potential for a substantial rare earth resource of encouraging grade in the Southern rare earth Zone.

rare earth mineralisation extends from surface over a distance of 660m in a north – south direction and 740m east - west on the most southern drill traverse completed to date (Figure 4). Mineralisation has been tested to a maximum vertical depth of 155m and remains open to the north, south, east, west and with depth.

typical grades range from 3% to 7% reo from surface in the ferruginous weathered zone, which varies in thickness from zero to over 120m vertical (see cross sections, Figures 5 to 8). there is also widespread primary rare earth mineralisation extending to depth within fresh rock carbonatite beneath the weathered zone, with typical grades of 1% to 2.5% reo.

the current 22,000m drilling program has now passed the half-way point. Drilling operations are continuing on site with a total of 190 holes for 12,490m completed at the end of September, including 82 rC holes for 10,422m within the Southern rare earth Zone. Drilling progress was interrupted for two weeks in august as a result of fuel supply problems in tanzania.

Drilling was recently completed in the South West alluvial Zone with 107 aircore or tricone holes for 1,974m over a 1,400m x 700m area to average depths of 18m (Figure 3). previous reconnaissance aircore drilling in the SW alluvial Zone has demonstrated +2% rare earth mineralisation within surficial sediments extends over a 550 x 350m area to average depths of 12m.

Diamond drilling is now in progress in the Southern rare earth Zone to provide additional material for metallurgical test work and density measurements for the resource estimation. two diamond holes have been completed to date.

Figure 5: Cross section 9,148,450mN, Southern rare earth Zone, with new drill results and geology. this is the most northern drill section completed to date, mineralisation remains open to the north and west.

Fresh Weathered

ColluviumColluvium

CarbonatiteCarbonatite Ultramafic

1400mRL

482400mE482200mE482000mE

EASTWEST

1600mRL

H NR

C018

H NR

C046

H NR

C016

H NR

C017

H NR

C015

H NR

C081

H NR

C045

H NR

C076

H NR

C078

Results pending

22m @ 1.71% from 64m

21m @ 1.64% from 64m to EOH 71m @ 2.81%

from 14m to EOH 16m @ 1.58% from 36m to EOH


26m @ 1.55% from 12m

84m @ 3.86% from surfaceincluding 66m at 4.42% from 8m 48m @ 5.28% from 28m

including 36m at 6.38% from 36m

8m @ 1.74% from 24m



24m @ 1.80% from 90m

14m @ 2.25% from 146m

180m

180m

120m

120m

85m

100m85m

52m

24m @ 1.27% from 154m


2011 Drill Holes Completed H New results H Results received H Results pending

SECTION 9,148,450mN NGUALLA PROJECT SOUTHERN RARE EARTH ZONEOCTOBER 2011

% REO A 1 to 2% A >2% A No Sample Recovered

Intersection Labels % REOA Weathered A Fresh

200m1000 50

photo powerful, track mounted, multi-purpose drilling rig being positioned, 24th May.

6

SEPTEMBER 2011


Fresh

Fresh

Weathered

Weathered

Colluvium

Ultramafic Carbonatite

173m

120m

180m

180m

124m120m

120m 121m 120m

173m

120m

180m

180m

124m120m

120m 121m 120m

EASTWEST

12m @ 1.83%from surface


161m @ 3.88%from 12m to EOHincluding 74m @ 4.71%from 20m

32m @ 2.38%from 16m

H NR

C051

H NR

C053

H NR

C056

H NR

C058

H NR

C060

H NR

C062

H NR

C063

H NR

C065

H NR

C067

20m @ 1.36% from 42m

12m @ 1.47% from 168m to EOH

18m @ 1.30% from 140m

40m @ 2.01% from 140m to EOH

30m @ 1.75% from 102m


32m @ 2.36%from 22m

26m @ 5.51%from 14m

18m @ 3.30%from surface 10m @ 3.30%

from surface




26m @ 2.42%from 46m

54m @ 2.53%from 54m

14m @ 1.23%from 30m

50m @ 1.31%from 48m

200m1000 50

2011 Drill holes completed: H Results received H Previously reported

SECTION 9,148,280mN

NGUALLA PROJECT SOUTHERN RARE EARTH ZONE

REO %: A 1 to 2 A >2A No Sample Recovered

Intersection labels REO %: A New results (weathered) A New results (fresh)A Previously reported

482400mE 482600mE482200mE482000mE

26.09.11

Fresh Weathered

Colluvium

Carbonatite

Ultramafic

120m 120m

120m

120m

144m

177m

98m

140m

1400mRL

482400mE482200mE

H NR

C023

H NR

C024

H NR

C025

H NR

C026

H NR

C027

H NR

C028

H NR

C029

EASTWEST







34m @ 1.82% from 86m

22m @ 1.50% from 56m

28m @ 1.83% from 92m

41m @ 1.30% from 14m

32m @ 1.47% from 144m to EOH

23m @ 2.75% from 75m

200m1000 50

SECTION 9,148,000mN NGUALLA PROJECT SOUTHERN RARE EARTH ZONESEPT 2011

% REO A 1 to 2% A >2% A No Sample Recovered

1600mRL

2011 Drill Holes Completed H Results received H Results pending

Intersection Labels % REOA Weathered A Fresh

Figure 6: Cross section 9,148,280mN, Southern rare earth Zone, with drill results received this Quarter and geology.(draft)

Figure 7: Cross section 9,148,280mN, Southern rare earth Zone, with drill results received this Quarter and geology.(draft)

7

SEPTEMBER 2011


FreshWeathered

Colluvium

Carbonatite

|

120m

120m

120m

120m

120m

112m

120m120m

1600mRL

1500mRL

1400mRL

482400mE 482600mE482200mE

H NR

C030 H NR

C032

H NR

C034

H NR

C037

H NR

C039

H NR

C041

H NR

C042

H NR

C043

EASTWEST

8m @ 1.90% from 112m to EOH 10m @ 1.72%

from 110m to EOH

16m @ 1.22% from 68m 14m @ 1.22%

from 106m to EOH


12m @ 1.73% from 100m

14m @ 1.67% from 42m

88m @ 2.38% from 20m

12m @ 3.09%from 44m

40m @ 2.93% from surface 68m @ 3.33%

from surface


39m @ 4.39%from surface 12m @ 3.27%

from 10m

26m @ 6.56%from 24m

52m @ 3.67%from 62m


9m @ 4.75% from 84m

Primary mineralisation open down dip over 370m

Mineralisation open and untested to the south and east of NRC043

200m1000 50

SECTION 9,147,800mN

NGUALLA PROJECT SOUTHERN RARE EARTH ZONESEPT 2011

REO %: A 1 to 2% A >2%

2011 Drill holes completed H Results received H Results pending

Intersection labels REO%:A Weathered A Fresh

A NSR

Figure 8: Cross section 9,147,800mN, Southern rare earth Zone, with drill results received this Quarter and geology. this is the most southern drill section completed to date, mineralisation remains open to the south and east (draft)

table 1: relative components of individual reo’s as a percentage of total reo for some large rare earth deposits (source: arafura ltd website) and the Ngualla Southern rare earth Zone mineralisation >1% reo.

Mineralogy and MetallurgyMineralogical, including scanning electron microscope (SeM), work has shown that rare earths in the Southern rare earth Zone occur as the carbonates synchysite and bastnaesite. this is considered preferable to monazite, a phosphate rich rare earth mineral which can contain deleterious levels of thorium and uranium. Very low levels of uranium and thorium are present in the Southern rare earth Zone, with mineralisation above 1% reo averaging 20ppm uranium and 38ppm thorium in drilling completed to date.

RaRE EaRths CONtENt (% Of tOtal REO)

NolaNS BoRE%

MouNTaiN PaSS %

BaiyuNEBo %

MT WEld %

Ngualla SREZ %

ligh

t re

lanthanum 19.74 33.2 27.1 25.6 27.01

Cerium 47.53 49.1 49.86 45.74 48.37

praseodymium 5.82 4.34 5.15 5.42 4.81

Neodymium 21.2 12 15.4 18.62 16.33

Samarium 2.37 0.8 1.15 2.44 1.68

europium 0.4 0.12 0.19 0.55 0.34

Hea

vy r

e

Gadolinium 1 0.17 0.4 0.97 0.76

terbium 0.08 - - 0.09 0.06

Dysprosium 0.33 - 0.3 0.16 0.14

other 0.21 0.16 0.03 0.04 0.09

yttrium 1.32 0.1 0.2 0.37 0.39

total % 100 100 100 100 100

8

SEPTEMBER 2011


analysis of the distribution of individual rare earth elements in the Southern rare earth Zone shows that Ngualla compares closely with other large rare earth deposits (see table 1 page 7).

SeM work has identified coarse grained rare earth minerals in fresh rock (see photo right) which is potentially favourable in terms of early liberation of these minerals during crushing.

Beneficiation and metallurgical test work is in progress on bulk samples of diamond core at amdel mineral laboratories in perth, Western australia, under the guidance of appointed metallurgical consultants Bateman engineering ltd to determine optimal processing routes to produce a commercially viable rare earth concentrate product.

the differing chemical and physical properties of a) the iron oxide rich, carbonate poor weathered and b) the fresh rock mineralisation may lead to different beneficiation routes being suitable for each material type. Several new diamond holes are currently being completed at Ngualla to provide additional bulk samples representative of the fresh, mixed and strongly weathered mineralisation to enable detailed beneficiation studies to be completed. Individual test work in progress includes gravity methods, magnetic separation, flotation and direct acid leach (Figure 9).

photo: SeM photograph of a sample from NrC058, 59 to 60m showing coarse bastnasite crystals (light grey), barite (white) and ankerite – (dark grey groundmass)

Figure 9: Simplified beneficiation test work diagram, Ngualla rare earth mineralisation

Heavy Liquid Separation

Gravity Separation

Magnetic Separation

Crushing&Grinding100kgbulksample

Flotation Acid Leaching

Mineralogy

Sizing

Niobium – tantalum and phosphate potentialSome drill holes on the northern and eastern edges of the Southern rare earth Zone resource drilling program have returned significant grades of niobium – tantalum and phosphate in addition to rare earths. Intersections received during the current Quarter include:

dRill HolE iNTERSEcTioN

NRC032: 8m at 1.01% Nb2O5 and 61ppm ta2O5 from 90m



dRill HolE iNTERSEcTioN


NRC067: 44m at 0.45% Nb2O5, 102ppm ta2O5 and 14.1% phosphate from 64m


See tables 3 and 4 for full drill intersection details for the 2011 resource drilling program niobium and phosphate results received to date.

these results are encouraging as they appear to represent the southern continuation of the Northern Niobium – tantalum phosphate Zone located over one kilometre to the north (see Figure 10).

exploration of this Northern Zone is at an early stage with only seven holes completed in two small portions of the target area. While drilling to date is sparse, encouraging intersections of niobium, tantalum and phosphate mineralisation were returned from drilling completed in 2010, including the previously reported:

NRC021: 22m at 0.91% Nb2O5 and 213ppm ta2O5 from surface to eoH and 14m at 20.6% phosphate from 8m to eoHNDD003: 62.3m at 0.70% Nb2O5 and 245ppm ta2O5 from surface and 60.85m at 21.0% phosphate from 1.45m

Full drill hole details are reported in the March 2011 Quarterly report

9

SEPTEMBER 2011


9148

000

mN

9148

500

mN

9148

9000

mN

9148

9500

mN

9148

5000

mN

483500 mE 484000 mE483000 mE482500 mE482000 mE481500 mE

SW Alluvials Southern Rare Earth Zone

Northern Niobium – Tantalum ZoneNRC02

1

NDD003

NDD002

NRC046

NRC017

NRC020

Mt. Ngualla

20.6m @ 0.49% Nb2O5 and 94ppm Ta2O5 from 24.3m and

5.15m @ 1.64% Nb2O5 and 214ppm Ta2O5 and 25.4% Phosphate from 51m

74m @ 0.58% Nb2O5 and 238ppm Ta2O5 from surface to EOH and

52m @ 18.2% Phosphate from 22m

44m @ 0.54% Nb2O5 and 41ppm Ta2O5 from 32m

14m @ 0.66% Nb2O5 and 133ppm Ta2O5 from 32m

62.3m @ 0.70% Nb2O5 and 245ppm Ta2O5 from surface and

60.85m @ 21.0% Phosphate from 1.45m

22m @ 0.91% Nb2O5 and 213ppm Ta2O5 from surface to EOH and

14m @ 20.6% Phosphate from 8m

1000m5000 250

N

NORTHERN NIOBIUM – TANTALUM ZONE OCTOBER 2011

Drill holes max Nb–Ta %: ! <.25! 0.25 to 0.50! 0.50 to 0.75

Surface samples Nb-Ta %:— 0.4 — 0.5 — 0.6

! 0.75 to 1.0 ! >1

— 0.7 — 0.8 — >0.8

Geology A Fenite Carbonatite:

A Outer Zone A Intermediate Zone

A Central ZoneA Ultramafic

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Figure 10: Niobium oxide soil contours and key drill intersections, Northern Niobium – tantalum phosphate Zone, Ngualla

Niobium, tantalum and phosphate mineralisation occur together from surface within a thick sequence of iron rich phosphatic sand and gravel deposits above fresh carbonatite bedrock.

these results, together with the large and high tenor surface geochemical anomaly of niobium and tantalum, support the potential for large deposits of phosphate and niobium –tantalum at Ngualla. Whilst the rare earth potential remains the first priority, peak will continue to evaluate the economic potential of this second style of mineralisation as a high priority.

Mineralogical studies have shown that phosphate occurs as apatite. Ferrocolumbite and pyrochlore have been identified as the niobium minerals. Beneficiation and metallurgical test work is in progress on a bulk sample of diamond core to determine if simple processing techniques may produce a commercial concentrate of phosphate and / or niobium - tantalum. Marketable rock phosphate concentrate grades range from approximately 30 to 40% but their value also depends on impurity levels. Some beneficiation and processing would therefore be required to achieve a saleable product.

additional rC drilling is planned in the Northern Niobium – tantalum – phosphate Zone as a part of this seasons drilling program to provide an initial test of the potential extent of this mineralisation once the rare earth resource drilling is completed.

10

SEPTEMBER 2011


acquisition of 100% of Zari Exploration ltdon 26th august 2011 peak announced it had entered into a conditional agreement to acquire all the issued capital of tanzanian joint venture partner Zari exploration ltd (Zari). the acquisition will give peak 100% ownership of the Ngualla rare earth project and offer the Company a greater flexibility of options in taking the project forward for the benefit of current peak shareholders. Currently, peak as operator and manager is earning 80% equity in the Ngualla project by carrying Zari through to the completion of a bankable feasibility study.

the acquisition is conditional upon Peak:

• completing financial and legal due diligence of Zari to its satisfaction;

• becoming entitled to not less than 100% of the Zari shares;

• obtaining peak shareholder approval; and

• obtaining the requisite approvals from the relevant tanzanian authorities.

payment for the acquisition to Zari shareholders is through a combination of cash and shares consisting of uS$6 million cash and the issuing of 24.266475 million peak shares.

peak has, over the past 18 months, developed Ngualla into a significant new rare earth discovery, with a maiden resource estimate scheduled for completion in the first quarter of 2012. Ngualla is also highly prospective for niobium – tantalum and phosphate. the Company’s Directors believe that the acquisition of 100% of the project at this stage in its development will secure for peak and its shareholders absolute control of the project and it’s further upside potential.

TaNzaNiaN Gold PRojEcTs (lake Victoria gold Field)

Field work recommenced after the end of the rain season in this part of the country with a soil sampling program being completed at the Igunga project.

a new project – Bunda - was also acquired this Quarter through an option agreement and soil sampling is expected to commence shortly to evaluate the potential for extensions to known gold workings in the vicinity.

Igunga ProjectPeak Resources – operator Manager earning 75%

the Igunga project is located in the southern lake Victoria Gold Fields 90km southwest of the Golden pride mine. Historic reconnaissance sampling has identified gold anomalism within northwest-southeast trending archaean greenstone rocks that include sub cropping banded iron formation, greywacke and felsic tuff.

a combined program of surface and augered soil sampling was completed at Igunga during the current Quarter over an area of approximately 7km2. Samples have been despatched to the laboratory and assay results are expected in the coming weeks.

Singida

Shinyanga

Geita

Buckreef

Tulawaka

Nyanzaga

Golden Ridge

Nyakafura

Buzwagi

Golden Pride

MusomaNorth Mara

Bulyanhulu

Lake Victoria

KENYA

IkomaBunda

Nkerege

Igunga

Igurubi

Geita West (Imweru)

Mwanza

NORTH

150km0 50 100

3332 34 35

Peak Resources Gold Project Location

Mine or Resource > 1 Moz Au

Mine or Resource < 1Moz Au

Gold Prospect (Barth)

Major Population Centre

DCW Major Internal Roads

Archaen Greenstone

-3

-4

-5

3.2Moz @ 1.7g/t Au

4.2Moz @ 1.4g/t Au

0.8Moz @ 9.7g/t Au

23.8Moz @ 3.3g/t Au

4.5Moz @ 1.15g/t Au

5.7Moz @ 2.8g/t Au

14.8Moz @ 10.34g/t Au

TANZANIA

Location of Lake Victoria Goldfield

!Dar Es Salaam

Figure 11: peak’s gold projects (orange) and major mines in the lake Victoria Gold Field, tanzania (draft).

11

SEPTEMBER 2011


Bunda ProjectPeak Resources – option to acquire 100%

the Bunda project is located in the northern lake Victoria Gold Fields 50km north east of Mwanza (Figure 11). Bunda is a new project acquired this quarter through an option agreement. the licence, with an area of approximately 24km2, surrounds a small excised lease containing old gold workings in sheared, highly silicified pyritic basalts.

a program of soil sampling is planned to be completed during the coming December quarter to evaluate the potential for extensions to the known mineralisation and for new occurrences of this encouraging ‘bulk tonnage’ style of gold mineralisation.

ausTRaliaN PRojEcTs (Western australia)Gold and Copper

three Rivers ProjectPeak Resources 100%

the three rivers project is located 130kms NNe of Meekatharra in Western australia and is bounded on the east and southeast by Sandfire resources Doolgoona project, and to the south by alchemy resources. the project lies approximately 25km along strike to the west of Sandfire’s De Grussa copper-gold discovery.

Soil and rock sampling completed by peak last year, together with a ground geophysical survey did not identify any immediate targets for follow-up and no field work was undertaken during the quarter.

coRPoRaTEEquity Issuesas announced in the June 2011 Quarterly report, on the 7 July 2011 the Company announced a share placement of 2,784,500 shares at $0.55 to sophisticated investors raising $1,531,475 before costs.

Cash on handpeak retained $5.6million cash at the end of the quarter.

alastair Hunter executive Chairmanthe 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.

12

SEPTEMBER 2011


table 2: Ngualla Project REO Intersections, september Quarter 2011rC drill results, Central Bedrock Zone - Intersections +1% reo and minimum 4m intersected width. Selected intersections +2% reo in italics

NRC023 481,998 9,148,008 120 0 114 114 1.98

(incl. 0 10 10 3.94)

NRC024 482,076 9,148,000 120 86 120 34* 1.82

NRC025 482,159 9,148,026 120 0 14 14 2.00

34 42 8 1.76

100 106 6 1.43

NRC026 482,242 9,148,000 120 0 120 120* 4.45

(incl. 0 64 64 5.26

and 88 120 32* 5.15)

NRC027 482,324 9,148,000 144 0 144 144* 5.14

NRC028 482,402 9,148,001 177 0 82 82 3.95

(incl. 0 56 56 5.09)

92 120 28 1.83

126 136 10 1.57

144 176 32 1.47

NRC029 482,460 9,148,000 98 0 55 55 2.17

(incl. 0 14 14 4.71)

55 98 40* 1.99

NRC030 482,084 9,147,777 120 0 108 108 2.60

NRC031 482,563 9,148,004 140 0 10 10 2.19

NRC032 482,159 9,147,779 120 0 14 14 2.18

18 120 102* 2.78

NRC033 482,641 9,148,000 120 0 42 42 2.54

52 58 6 1.34

NRC034 482,240 9,147,796 120 0 46 46 2.79

56 64 8 1.19

68 93 25 2.49

(incl. 84 93 9 4.75)

97 106 9 2.69

110 120 10* 1.72

NRC035 482,719 9,148000 28 0 4 4 1.30

12 21 9 1.45

NRC036 482,717 9,148,001 120 8 22 14 1.63

NRC037 482,320 9,147,796 120 0 68 68 3.33

78 86 8 1.23

90 96 6 1.21

106 120 14* 1.22

NRC038 482,000 9,148,202 120 0 6 6 1.90

16 22 6 1.58

30 38 8 1.46

42 102 60 1.94

116 120 4* 1.14

NRC039 482,400 9,147,801 120 0 60 60 5.52

64 72 8 1.95

76 120 44* 1.50

NRC040 482,037 9,148,200 178 0 38 38 3.36

44 52 8 1.38

58 70 12 2.29

78 82 4 1.25

116 138 22 1.89

172 178 6* 1.70

Hole id East North Hole depth (m) From (m) To (m) interval (m) REo %

13

SEPTEMBER 2011


table 2: Ngualla Project REO Intersections, september Quarter 2011 (continued)


NRC041 482,482 9,147,800 112 0 39 39 4.39

43 60 17 2.51

64 78 14 2.94

(incl. 69 74 5 6.33)

84 88 4 2.00

NRC042 482,561 9,147,803 120 0 6 6 2.85

10 22 12 3.27

(incl. 12 18 6 5.11)

32 38 6 2.07

42 56 14 1.67

NRC043 482,620 9,147,803 120 0 6 6 1.94

24 50 26 6.56

100 112 12 1.73

NRC044 482,124 9,148,203 180 0 92 92 3.13

(incl. 8 54 36 4.59)

104 110 6 1.43

114 136 22 1.29

140 180 40* 1.56

NRC045 482,205 9,148,449 180 0 50 50 3.55

54 58 4 1.40

64 86 22 1.71

90 114 24 1.80

118 122 4 1.72

128 134 6 1.44

138 142 4 1.84

146 160 14 2.25

166 172 6 1.22

NRC046 482,402 9,148,451 120 0 84 84 3.86

(incl. 8 54 66 4.42)

114 120 6* 1.12

NRC047 482,199 9,148,203 120 0 68 68 3.19

(incl. 34 58 24 4.34)

78 120 42* 1.40

NRC048 482,605 9,148,457 83 0 18 18 1.61

28 32 4 1.32

38 42 4 1.31

46 62 16 1.21

NRC049 482,241 9,148,203 129 0 4 4 1.61

10 24 14 2.38

32 125 93 3.62

NRC050 482,679 9,148,463 94 0 50 50 1.65

NRC051 481,999 9,148,282 180 0 12 12 1.83

16 48 32 2.38

84 88 4 1.08

156 160 4 1.37

NRC052 482,280 9,148,200 180 0 29 29 4.51

32 118 86 3.38

121 180 59* 1.62

NRC053 482,083 9,148,274 173 0 4 4 3.00

12 173 161* 3.88

(incl. 20 94 74 4.71)

NRC054 482,323 9,148,200 130 0 101 101 2.86

(incl. 0 32 32 5.08)

105 130 25* 1.98

14

SEPTEMBER 2011



NRC055 481,682 9,148,198 120 0 6 6 1.50

NRC056 482,159 9,148,280 120 0 36 36 3.48

42 62 20 1.36

NRC057 481,814 9,148,009 120 0 20 20 2.46

48 52 4 1.65

88 96 8 1.09

110 118 8 2.23

NRC058 482,244 9,148,282 180 0 122 122 2.06

140 158 18 1.30

168 180 12* 1.47

NRC059 481,762 9,147,998 120 0 1 16 1.57

38 44 6 1.20

94 98 4 1.44

NRC060 482,320 9,148,280 180 0 18 18 3.30

22 54 32 2.36

60 66 6 1.20

78 84 6 1.72

102 132 30 1.75

140 180 40* 2.01

NRC061 481,668 9,148,000 120 0 10 10 1.40

NRC062 482,397 9,148,281 124 0 10 10 3.30

14 40 26 5.51

(incl. 18 40 22 6.17)

54 108 54 2.53

112 122 10 1.10

NRC063 482,484 9,148,286 120 0 8 8 2.89

24 26 2 1.39

46 72 26 2.42

116 120 4* 1.58

NRC064 481,979 9,147,799 110 0 40 40 2.62

(incl. 0 18 18 4.41)

86 94 8 1.36

98 104 6 1.43

NRC065 482,561 9,148,280 120 0 34 34 1.96

NRC066 481,924 9,147,799 101 0 34 34 4.36

50 92 42 2.11

NRC067 482,639 9,148,280 121 0 12 12 2.50

18 26 8 1.10

30 44 14 1.23

48 98 50 1.31

106 112 6 1.20

NRC068 481,851 9,147,794 94 0 18 18 2.36

24 36 12 1.40

50 76 26 1.70

NRC069# 482,720 9,148,282 120 0 10 10 1.17

100 104 4 1.17

112 118 6 1.36

NRC070# 481,757 9,147,799 78 0 4 4 2.38

10 46 36 1.35

NRC071# 482,715 9,148,281 20 0 8 8 1.54

NRC072# 482,018 9,148,099 31 22 26 4 2.34

NRC073# 482,025 9,148,098 180 30 88 58 2.68

(incl. 38 54 16 5.78)

92 128 36 1.35


15

SEPTEMBER 2011



NRC074# 481,677 9,147,800 96 0 18 18 2.85

92 96 4* 1.18

NRC076# 482,120 9,148,461 180 0 8 8 1.98

12 38 26 1.55

154 178 24 1.27

NRC078# 482,027 9,148,453 120 12 17 5 2.15

20 24 4 2.78

28 76 48 5.28

(incl. 36 72 36 6.38)

80 84 4 1.35

88 120 32* 2.79

NRC081 481,955 9,148,451 120 6 12 6 1.66

NRC088 481,746 9,148,198 132 0 6 6 1.68

NRC089 482,157 9,147,928 131 0 131 131* 4.27

(incl. 0 30 30 5.60

and 62 98 36 5.05)

NRC090 482,642 9,148,100 120 0 48 48 2.61

(incl. 36 44 8 5.35)

NRC091 482,715 9,148,100 120 0 4 4 1.39

NRC092 482,243 9,147,924 122 0 103 103 1.91

107 122 15* 1.44

Note: reo = total rare earth oxides including yttrium. See Figure 12 for relative distribution of individual rare earth oxides. Samples are 2m composites from angled -60º west rC drilling. 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. # = new intersection not previously reported.


figure 12: Individual Rare Earth Oxides as a percentage of total Rare Earth Oxides

Note: average relative reo components are calculated using individual rare earth grades in samples above 1% reo in the 50 rC holes and one diamond hole for which assays have been received in the Southern rare earth Zone

CeO248.4%

La2O327.4% Nd2O316.3%

Pr6O11 4.66%

Sm2O3 1.56%

Gd2O3 0.67%

Other 0.63%Eu2O3 0.31%

16

SEPTEMBER 2011


table 3: Ngualla Project Niobium Oxide and tantalum Oxide Intersections, september Quarter 2011 all intersections with a minimum width of 8m at >0.25% niobium oxide from the 2011 rare earth resource Drilling program

Hole id East North Hole depth (m)

From (m)

To (m)

interval (m)

Nb2o3 %

Ta2o3 ppm

NRC027 482,324 9,148,000 144 28 38 10 0.28 26

NRC029 482,460 9,148,000 98 78 88 10 0.32 77

90 98 8* 0.36 46

NRC031 482,563 9,148,004 140 0 10 10 0.38 85

14 22 8 0.54 37

NRC032 482,159 9,147,779 120 52 60 8 1.01 61

72 84 12 0.41 30

NRC034 482,240 9,147,796 120 2 26 24 0.67 26

28 48 20 0.48 44

84 93 9 0.59 7

NRC037 482,320 9,147,796 120 28 46 18 0.31 23

NRC041 482,482 9,147,800 112 0 16 16 0.30 56

NRC042 482,561 9,147,803 120 16 24 8 0.55 25

NRC043 482,620 9,147,803 120 0 24 24 0.55 25

NRC045 482,205 9,148,449 180 28 50 22 0.36 53

NRC046 482,402 9,148,451 120 32 76 44 0.54 41

NRC048 482,605 9,148,457 83 0 8 8 0.31 56

30 64 34 0.42 51

NRC049 482,241 9,148,203 129 10 30 20 0.32 32

52 84 32 0.37 27

NRC050 482,679 9,148,463 94 0 14 14 0.42 116

34 52 18 0.38 111

NRC051 481,999 9,148,282 180 14 28 14 0.31 44

30 40 10 0.29 39

NRC052 482,280 9,148,200 180 74 82 8 0.28 24

NRC053 482,083 9,148,274 173 116 132 16 0.45 12

NRC056 482,159 9,148,280 120 12 20 8 0.35 29

NRC059 481,762 9,147,998 120 0 18 18 0.36 45

34 46 12 0.53 92

NRC061 481,668 9,148,000 120 0 18 18 0.43 82

NRC063 482,484 9,148,286 120 46 60 14 0.43 24

NRC065 482,561 9,148,280 120 2 12 10 0.49 39

18 34 16 0.32 36

NRC066 481,924 9,147,799 101 22 30 8 0.36 20

60 68 8 0.30 35

NRC067 482,639 9,148280 121 0 14 14 0.39 37

18 40 22 0.34 60

46 60 14 0.30 44

64 108 44 0.45 102

NRC068 481,851 9,147,794 94 0 8 8 0.42 93

24 38 14 0.39 110

53 66 12 0.43 172

82 90 8 0.28 28

NRC069# 482,720 9,148,282 120 0 10 10 0.52 126

NRC070# 481,757 9,147,799 78 28 46 18 0.32 62

NRC071# 482,715 9,148,281 20 0 8 8 0.60 113

NRC074# 481,677 9,147,800 96 0 18 18 0.40 102

NRC076# 482,120 9,148,461 180 26 38 12 0.51 135

NRC078# 482,027 9,148,453 120 62 72 10 0.30 116

NRC090 482,642 9,148,100 120 16 26 10 0.30 24

Note: Samples are 2m composites from angled -60º west rC drilling. Intersections calculated using a 0.25% Nb2o5% phosphate lower cut and a maximum of 2m internal dilution. analysis by SGS laboratory, perth, by XrF fusion for Nb and pressed powder for ta. Co-ordinate system is arc 1960 utM zone 36S. *=hole ended in mineralisation. # = new intersection not previously reported.

17

SEPTEMBER 2011


table 4: Ngualla Project Phosphate Intersections, september Quarter 2011 all intersections with a minimum width of 8m at >10% phosphate from the 2011 rare earth resource Drilling program

Hole id East North Hole depth (m) From (m) To (m) interval (m) P2o5 %

NRC033 482641 9148000 120 0 10 10 14.4

NRC041 482,482 9,147,800 112 48 60 12 16.8

NRC043 482,620 9,147,803 120 2 28 26 22.6

36 46 10 11.0

NRC048 482,605 9,148,457 83 36 60 24 11.2

NRC050 482,679 9,148,463 94 34 52 18 13.5

84 94 10* 13.6

NRC059 481,762 9,147,998 120 38 46 8 14.4

NRC061 481,668 9,148,000 120 4 16 12 15.6

NRC065 482,561 9,148,280 120 10 30 20 15.9

NRC067 482,639 9,148,280 121 18 34 16 15.3

40 60 20 15.0

64 108 44 14.1

NRC068 481,851 9,147,794 94 8 16 8 13.8

53 66 13 13.9

72 90 18 17.3

NRC090 482,642 9,148,100 120 20 40 20 16.0

Note: Samples are 2m composites from angled -60º west rC drilling. Intersections calculated using 10% phosphate 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. # = new intersection not previously reported.

september 2011 quarterly activities...

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