Peak Resources Limited (ASX:PEK) Share Placement To Sophisticated Investors

Perth, Oct 7, 2010 AEST (ABN Newswire) - Peak Resources Limited (ASX:PEK) is pleased to advise that it has agreed to place 5 million shares at an issue price of 46 cents per share to raise gross funds of A$2,300,000.

Shares are being placed to institutional and sophisticated investor clients of Shaw Stockbroking Limited under the provisions of Section 708 of the Corporations Act.

With the Company to commence the next round of RC drilling at the Ngualla Project in Tanzania towards the end of October funds raised under the placement will be used to meet costs associated with this work, and diamond drilling now planned for the central hard rock core area of the Project. The funds will enable greater flexibility for the Company to expand the October programme as well as in the forward planning of work programmes to be undertaken in 2011.

Funds may also be applied to meet costs associated with the Company's ongoing Australian exploration programmes, in particular that associated with the Three Rivers Project where a recently completed geophysical survey is currently being evaluated and working capital requirements.

The Company anticipates proceeding to allotment of securities under the placement on or before 15 October 2010. Application is being made for quotation of securities on ASX.

Contact

Mark Maine Executive Director Tel: +61-8-9316-9599 Fax: +61-8-9316-9588 http://www.peakresources.com.au