Peak Resources Limited (ASX:PEK) Ngualla Project Continues to Grow on New Rare Earth Results

Perth, Sep 1, 2011 AEST (ABN Newswire) - Peak Resources Limited (ASX:PEK) is pleased to report encouraging assay results received from an additional 15 drill holes of the 2011 resource drilling program currently in progress at the Ngualla Rare Earth Project in southern Tanzania.

The latest wide intersections continue to extend the area of consistent bedrock rare earth mineralisation in the Southern Rare Earth Zone.

The new results include the widest and deepest intersection received to date in drill hole NRC053. They also include the second highest grade intersection (NRC043) returned so far, located on the extreme south west corner of the current drill pattern. The rare earth mineralisation remains open to the north, south, east, west and with depth.

Rare earth mineralisation has now been intersected from surface over an area of 600m x 660m, to a maximum drilled vertical depth of 155m.

Mineralisation at Ngualla is similar in style to Mt Weld (Lynas Corporation Ltd) (ASX:LYC) in Western Australia, being rare earth enrichment within the deeply weathered regolith profile of a large carbonatite. Typical grades range from 3% to 7% REO from surface in the ferruginous weathered zone, which varies in thickness from zero to over 120m vertical. There is also widespread primary rare earth mineralisation extending to depth within fresh rock carbonatite beneath the weathered zone, with typical grades of 1% to 2.5% REO.

Ngualla is a virgin exploration discovery by Peak, with the first holes completed in the project drilled in June 2010. The latest results continue to demonstrate that Ngualla is one of the largest and better grade new rare earth discoveries of recent years. The project also has potential to host large, near surface deposits of niobium - tantalum and phosphate.

Currently Peak, as operator and manager, is earning 80% equity in the Ngualla Project by carrying Joint Venture partner Zari Exploration Ltd (Zari) through to completion of a bankable feasibility study. On 26th August 2011 Peak announced it had entered into a conditional agreement to take 100% ownership of the Ngualla Project through the acquisition of Zari.

This year's 22,000m drilling program is approaching the half-way point. Operations are continuing on site with a total of 76 RC holes for 9,588m now completed within the Southern Rare Earth Zone. Drilling also recently commenced in the South West Alluvial Zone with 20 aircore holes for 533m completed to 29th August 2011.

Peak is awaiting assay results from an additional 73 completed drill holes, which will ensure a steady flow of results in the coming weeks. Several of these holes intersected deep ferruginous weathering up to 140m vertical depth in areas of known mineralisation. The Company will continue to provide regular updates regarding progress and results as they come to hand.

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 Limited announcement including figures and tables, please view:
http://media.abnnewswire.net/media/en/docs/69304-ASX-PEK-555465.pdf

Contact

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