SOURCE: Peak Resources Limited

Peak Resources Limited

October 15, 2012 09:00 ET

Peak Resources Announces Appointment of Chief Financial Officer/Company Secretary

WEST PERTH, AUSTRALIA--(Marketwire - Oct 15, 2012) - Peak Resources Limited (Peak) (ASX: PEK) (OTCQX: PKRLY), the developer of a potentially low cost, long term rare earth project in Tanzania, today announced the appointment of Mr. Jeff Dawkins as its Chief Financial Officer. This appointment is effective as of 15 October 2012.

Mr. Dawkins will join Peak at a crucial stage in the development of its Ngualla Rare Earth Project in southern Tanzania following the completion of metallurgical work that demonstrated 'Proof of Concept' with a simple sulphuric acid leaching process as announced on 23 August 2012.

"The capacity and acumen of Mr. Dawkins is exactly what Peak needs as the project nears the completion of the Ngualla Scoping Study, with the engagement of strategic partners and off take customers and the development of the business for production in early 2016," stated managing director Richard Beazley.

Mr. Dawkins is an Australian Chartered Accountant with more than 20 years' experience in professional and corporate roles in Perth, London and Singapore. Mr. Dawkins holds a Bachelor of Business Degree from Curtin University and a Graduate Diploma in Applied Finance and Investment.

He has a strong background in mining and has worked with various mining Companies involved with gold, copper, rare earth and iron ore.

His previous appointment was as Chief Financial Officer of Archipelago Resources Plc ("Archipelago"), from November 2006 until February 2012, during which time Archipelago successfully developed and put into production the Company's flagship asset being the 150koz per annum Toka Tindung Gold Project ("Toka Project") in Indonesia.

Whilst at Archipelago, Mr. Dawkins was responsible for all financial, corporate and administrative matters and in particular was responsible for developing and maintaining relationships with Archipelago's bankers and secured US$80m in debt funding required to complete the construction of Toka Project.

Mr. Dawkins also instigated and managed a review of Archipelago's corporate and tax structure which resulted in implementing a redesign of the corporate structure and the relocation of the Group's head office from Perth to Singapore which delivered significant financial and operational benefits.

Mr. Dawkins has also worked for Deloitte and has held senior finance roles with listed resource companies including Marengo Mining Ltd, Lynas Corporation, Schlumberger and Weatherford.

Safe Harbor Statement

The information in this document has been prepared as of October 15, 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, minesite 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 minesites 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 by-product 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 on Form 20-F for the year ended December 31, 2011, as well as the Company's other filings with the Canadian 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. Marc Legault, a Qualified Person and the Company's Vice-President, Project Development, reviewed the technical information disclosed herein. For a detailed breakdown of the Company's reserve and resource position see the July 18th, 2012 press release on the Company's website. That press release also lists the Qualified Persons for each project.

About Peak Resources

Peak is developing the Ngualla Project, a potentially low cost, long term rare earth project located in southwest Tanzania. Ngualla has been ranked as the fifth largest deposit in the world outside China, and the highest grade of the top seven.

Ngualla has a Mineral Resource of 170 million tonnes grading 2.24% of rare earth oxides (REO). Within the resource there is a highly weathered and near-surface zone estimated at 40 million tonnes at 4.07% REO, equivalent to 1.6 million tonnes of contained REO (see Table 1 below for resource classifications). Ngualla is also a bulk deposit which is largely outcropping. These attributes place the project among the world's most notable rare earth discoveries of recent years.

Ngualla is a potential low cost open pit mine due to its shallow outcropping high grade mineralisation. The initial sighter metallurgical test work to date has been completed using a sulphuric acid leach process route suggesting a relatively less complex, potentially cheaper capital outlay and shorter time to production.

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