Peak Resources Limited (ASX:PEK) Report Positive Progress At Ngualla Rare Earth Resource Drill Program

Perth, June 15, 2011 AEST (ABN Newswire) - Peak Resources Limited (ASX:PEK) is pleased to report positive progress of drilling at the Ngualla Rare Earth Project in Tanzania.

Two track mounted multi-purpose drill rigs are now in full production and 14 angled reverse circulation (RC) holes have been completed for a total 1,760m to 13th June 2011. The angled RC holes are achieving the average planned depths of 120m on the main Southern Rare Earth Zone around Ngualla Hill.

Sample recovery is improved compared to the December 2010 program, with consistently higher sample weights and less variation in sample size achieved in this early phase of the program. While continuing to seek further improvement, drill rig production rates are also higher as a result of using the more powerful drilling equipment.

Rare Earth mineralisation intersected by previous drilling in the Southern Rare Earth Zone at Ngualla is enriched in the weathered zone of the carbonatite. The new drilling has intersected deeply weathered carbonatite in several drill holes to depths up to 120m from surface. These holes are located on drill traverses 200m and 400m further south of the previous drill traverses.

The first batch of samples from the initial 10 holes was despatched from site for sample preparation in Mwanza before they are flown to SGS Laboratories in Perth, Western Australia for analysis. The first assay results are expected around the end of July. The Company will continue to provide regular updates on the progress of the drilling and assay results as they come to hand.

The drilling is designed to provide sufficient data for an initial JORC compliant resource estimate to be completed for both the bedrock and alluvial zones of rare earth mineralisation discovered by Peak in 2010.

With an estimated total of 20,000m of RC, diamond and aircore drilling in the current resource definition program, drilling may well continue to the end of October 2011 with the resource estimate expected before the end of the first quarter of 2012.

The Company has rights to earn 80% of this project that has potential to host large, near surface deposits of rare earths, niobium - tantalum and phosphate.

For the complete Peak Resources announcement including figures and tables, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/545376.pdf

Contact

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