Peak Resources Limited (ASX:PEK) Ngualla Rare Earths Project Drilling Update

Perth, Nov 19, 2010 AEST (ABN Newswire) - As advised to the ASX on 10 November, the Company has commenced an extensive diamond and RC drilling programme on the central area of the Ngualla Carbonatite. Currently one diamond drilling rig and one RC drilling rig are in operation at Ngualla.

The Company has now committed to a third (multipurpose) drill rig which is expect on site within the next few days.

Difficult ground conditions have been encountered since the commencement of drilling, with drilling having intercepted iron rich clays and cavities, resulting in progress being considerably slower than had been anticipated. Additionally, with the close out of the current exploration season approaching, the directors considered it appropriate to maximise data generation for this programme by the addition of a third drill rig. Therefore, with an additional larger drill rig becoming available within the region, a decision was made to immediately commit to this additional capacity. With three drill rigs soon to be operational at Ngualla the Company hopes to increase daily production.

While samples from the current drilling have yet to be submitted for assay, visual observation of material on site from diamond and RC drilling indicates it to be similar to that obtained from drill holes NRC-001 and NRC-002 completed at the end of July. Assay results from NRC-001 and NRC-002, released to ASX on 27 September 2010, reported up to 40m at 3.20% total rare earth oxide (TREO) to end of hole (NRC-001), within which higher grade,+5% TREO, intercepts were included.

Further updates will be provided on receipt of information.

Contact

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