Peak Resources Limited (ASX:PEK) to Acquire 100% Interest in Ngualla Rare Earth Project

Sydney, Aug 26, 2011 AEST (ABN Newswire) - Peak Resources Limited (ASX:PEK) has entered into a conditional agreement to acquire all the issued capital of Tanzanian Joint Venture partner Zari Exploration Ltd (Zari). The acquisition will give Peak 100% ownership of the Ngualla Rare Earth Project in Tanzania (Ngualla Project) and offer the Company a greater flexibility of options in taking the project forward for the benefit of current Peak shareholders. Currently, Peak as operator and manager is earning 80% equity in the Ngualla Project by carrying Zari through to the completion of a bankable feasibility study. The acquisition is conditional upon Peak:

- completing financial and legal due diligence of Zari to its satisfaction;

- becoming entitled to not less than 100% of the Zari shares;

- obtaining Peak shareholder approval; and

- obtaining the requisite approvals from the relevant Tanzanian authorities.

Payment for the acquisition to Zari shareholders is through a combination of cash and shares consisting of US$6 million cash and the issuing of 24.266475 million Peak shares.

Rationale and Advantages for Peak

Peak has, over the past 18 months, aggressively explored the Ngualla Carbonatite and developed the project into a significant new rare earth discovery. Additionally the project is highly prospective for niobium, tantalum and phosphate, with significant mineralised drill intersections returned from the limited reconnaissance work completed to date to the north of the Rare Earth Zone. The Company's current focus is to complete the major drilling program now in progress at Ngualla where recently released results have significantly extended the mineralised zones, and further confirm the encouraging grade and width of the mineralisation. The maiden resource estimate is scheduled for completion in the first quarter of 2012.

In commenting on the Announcement, Mr Alastair Hunter, Executive Chairman of Peak Resources Limited said:

"We see that the proposed acquisition of the project at this stage in its development has the potential to add significant additional value for current shareholders. The acquisition of Zari affords Peak absolute control of the Ngualla Project and gives Peak much greater flexibility to advance the Ngualla Project, opening up new potential opportunities for future funding requirements".

"The Company believes the next six to twelve months will be a very productive and exciting period in terms of exploration results and the advancement of the project to maiden rare earth resource status. We look forward to keeping our shareholders updated on our progress on the Ngualla Project over the coming months".

Contact

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