Peak Resources (ASX:PEK) Recommences Drilling Within the Ngualla Rare Earth Project

Perth, Nov 10, 2010 AEST (ABN Newswire) - Peak Resources (ASX:PEK) is pleased to announce it has recommenced drilling within its rare earth project at Ngualla in Southern Tanzania. The Ngualla Project is focused on a 3.5km diameter carbonatite that recent work by the Company has shown to be highly prospective for rare earth metals, niobium, tantalum and phosphate.

The current drilling program is designed to provide an initial test of a total 2km x 700m area in the central core of the carbonatite where surface sampling and recent scout reverse circulation (RC) drilling indicate strong enrichment in Rare Earths, Niobium and Phosphate. The target area includes in part the four shallow RC holes drilled in late July 2010 that returned (previously reported - see ASX release of 27/09/2010) intersections up to:

- NRC-1 0-40m 40m at 3.20% total rare earth oxide (TREO) to end of hole

- NRC-3 0-30m 30m at 0.38% Nb2O5 and 150ppm Ta2O5 plus 26m @ 14.7% P2O5 to end of hole

Two drill rigs, a diamond rig and an RC rig, are currently on site. The diamond drill rig will twin RC drill holes NRC-1 to NRC-4 with two diamond holes extending deeper into fresh rock to provide geological information in both the weathered and primary zones as well as samples for specific gravity (SG) measurements, preliminary metallurgical test work and geochemical analysis of the core.

An RC rig will test an 800m x 800m zone of high rare earth anomalism based on surface soil sampling in the south and a 1,500m x 1,000m zone of niobium, tantalum and heavy rare earth anomalism in similar sampling to the north. The RC drilling program is designed to determine the lateral and depth extent of the mineralisation already intersected by the scout RC holes. Results from this program are intended to provide sufficient information to implement an initial resource definition drilling programme within the central core area in the 2011 field season.

Further market updates will be provided as information comes to hand.

Contact

Alastair Hunter Chairman Tel: +61-8-9316-9599 Fax: +61-8-9316-9588 http://www.peakresources.com.au