SOURCE: Peak Resources Limited

Peak Resources Limited

November 15, 2012 13:32 ET

Peak Resources Announces Positive Drill Results for Ngualla Rare Earth Project

WEST PERTH, AUSTRALIA--(Marketwire - Nov 15, 2012) - Peak Resources Limited ("Peak" or "the Company") (ASX: PEK) (OTCQX: PKRLY), the developer of a potentially low cost, long term rare earth project in Tanzania, today announced positive results from metallurgical testing of rare earth mineralization samples from its 100%-owned Ngualla Rare Earth Project in Tanzania. Ngualla is the world's fifth largest rare earth deposit (outside China) and the highest grade of the top seven.

Using a simple and cost effective sulphuric acid leach process, Peak generated results showing rare earth leach extraction rates of up to 96.5% and an average rate 80% across the central portion of the Southern Rare Earth Zone (SREZ), the Bastnasite Zone that is targeted for initial production by early 2016.

Richard Beazley, Managing Director of Peak Resources, said, "The high recoveries achieved over a wide area support the Company's chosen simple sulphuric acid leach process for Ngualla's rare earth mineralisation. This means a relatively simple processing plant, lower capital costs and faster start-up."

The 112 new samples add to the 38 samples previously tested, providing a high level of confidence and will allow a solid geometallurgical model to be constructed for project feasibility studies due to commence in early 2013. Samples are representative of a range of rare earth grades 1.11% to 11.0% collected across an 850m x 800m area and from depths of 0 to 120m from surface across the whole SREZ.

Peak is in the process of completing a scoping study at Ngualla, which will include a preliminary economic assessment of the project. The scoping study is on track for completion before the end of December 2012.

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 south west 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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