Peak Resources Limited (ASX:PEK) Wide Rare Earth Intersections Extend Mineralisation Further at the Ngualla Project

Sydney, Aug 18, 2011 AEST (ABN Newswire) - Peak Resources Limited (ASX:PEK) is pleased to report the second batch of assay results received from the 2011 resource drilling program at the Ngualla Rare Earth Project in southern Tanzania.

The results from a further ten reverse circulation (RC) holes extend the rare earth mineralisation in the Southern Rare Earth Zone a further 250m to the southwest with several new wide drill intersections from surface. Extensive primary mineralisation in fresh rock carbonatite beneath the enriched weathered profile is also confirmed.

Results from the most southern drill traverse completed to date show that the rare earth mineralisation still remains open to the south and west. The limits of the mineralisation in the Southern Rare Earth Zone have also not yet been determined to the north or at depth.

The Company is pleased with the rapid progress at Ngualla since the release of assay results from the discovery drill holes at the end of September 2010 to the positive results from the current drilling program. Together they demonstrate the potential for Ngualla to be one of the largest and better grade new rare earth discoveries in recent years. Peak has rights to earn 80% of the project, which also has the potential to host large, near surface deposits of niobium - tantalum and phosphate.

A maiden JORC compliant rare earth resource estimate is expected to be completed by the end of the first quarter of 2012.

All 10 holes for which results have just been received intersected +1% rare earth mineralisation. Most of the holes also intersected significant widths of higher grade including:

- NRC024: 34m at 1.82% REO from 86m to EOH
- NRC025: 14m at 2.00% REO from surface
- NRC033: 30m at 2.93% REO from surface
- NRC034: 40m at 2.93% REO from surface and 9m at 4.75 % REO from 84m
- NRC037: 68m at 3.33% REO from surface and 14m at 1.22% REO from 106m to EOH
- NRC038: 60m at 1.94% REO from 42m
- NRC039: 56m at 5.83% REO from surface and 44m at 1.50% REO from 76m to eoh
- NRC041: 39m at 4.39% REO from surface, 17m at 2.51% REO from 43m and 14m at 2.94% REO from 64m

The highest grade mineralisation occurs from surface within the ferruginous weathered zone of the Ngualla Carbonatite where grades vary from 3% to 7% REO within an area of 650m x 500m. There is potential to increase the area of mineralisation since the limits have not yet been determined to the north, south and west. Several holes for which assays are currently awaited have intersected deep ferruginous weathering up to 140m vertical depth in areas of known mineralisation.

The new results also confirm extensive primary REO mineralisation within fresh carbonatite, which is significant in terms of additional tonnage potential. Primary mineralisation in the unweathered carbonatite typically grades from 1% to 2.5% REO.

Many holes end in this mineralisation at 120m down hole, indicating it to be open at depth. As with the weathered zone mineralisation, the extent of the primary mineralisation has also not yet been determined to the north, south and west.

A total of 71 reverse circulation (RC) drill holes for 9,032m have now been completed of the total 22,000m 2011 drilling program. With assays from just 18 of these holes received to date and analytical data from 54 completed holes currently outstanding, a steady flow of new assay results is expected over the coming weeks. The Company will continue to provide regular updates regarding progress and results as they come to hand.

For the complete Peak Resources announcement including figures, please refer to the following link:
http://media.abnnewswire.net/media/en/docs/ASX-PEK-553615.pdf

Contact

Alastair Hunter Executive Chairman Tel: +61-8-9316-9599 Email: alastair@peakresources.com.au http://www.peakresources.com.au