Peak Resources Limited (ASX:PEK) Drill Results Confirm Major Rare Earth Discovery at Ngualla in Southern Tanzania

Perth, Aug 4, 2011 AEST (ABN Newswire) - Peak Resources Limited (ASX:PEK) is pleased to report the first assay results from the 2011 rare earth resource drilling program at Ngualla in southern Tanzania.

The results from eight reverse circulation (RC) holes extend the known mineralisation in the Southern Rare Earth Zone a further 390m to the south west of previous drilling and include the following wide intersections of encouraging grade from surface:

Highlights from this first batch of assay results from the 2011 program include:

NRC026: 64m at 5.26% REO from surface and 32m at 5.15% REO from 88m to EOH

NRC027: 131m at 5.23% REO from surface

NRC028: 56m at 5.09% REO from surface

The highest grade mineralisation occurs from surface within the ferruginous weathered zone of the Ngualla Carbonatite, where grades consistently average above 5% REO. The drilling also intersected REO mineralisation in the fresh carbonatite beneath the weathered profile, which is significant in terms of additional tonnage potential. Primary mineralisation in the unweathered carbonatite typically grades from 1% to 2.5% REO.

Together with previous results from the Company's maiden drilling programs in 2010, these intersections confirm a major new rare earth discovery at Ngualla. Mineralisation extends from surface to depths of up to 100m vertical (the maximum depth of drilling to date) over a 750m x 400m area.

Mineralisation still remains open to the west, north, south and with depth.

All 8 holes intersected +2% rare earth mineralisation. Most of the holes also intersected significant widths of higher grade including:

NRC023: 10m at 3.94% REO from surface

NRC026: 64m at 5.26% REO from surface and 32m at 5.15% REO from 88m to EOH

NRC027: 131m at 5.23% REO from surface and 11m at 5.05% REO from 133m to EOH

NRC028: 56m at 5.09% REO from surface

NRC029: 14m at 4.71% REO from surface and 9m at 3.41% REO from 89m to EOH

NRC030: 20m at 3.57% REO from surface and 34m at 3.52% REO from 34m

NRC032: 12m at 3.09% REO from 44m and 52m at 3.67% REO from 62m

Good progress has been made with drilling on site with a total of 65 RC drill holes for 8,200m now completed of the total 22,000m 2011 drilling program.

Drilling will continue for several months and the Company will continue to provide regular updates regarding progress and results as they come to hand. The Directors believe that Ngualla continues to demonstrate the potential to be one of the largest and better grade new rare earth discoveries in recent years. A maiden JORC compliant rare earth resource estimate is expected to be completed by the end of the first quarter of 2012.

For the complete Peak Resources announcement including tables and figures, please refer to the following link:
http://media.abnnewswire.net/media/en/docs/ASX-PEK-552165.pdf

Contact

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