Drill results highlights:

New assay results from recent drilling of the southern extension to the Southern Rare Earth Zone (SREZ) identify additional near surface mineralisation. New intersections from this area include:

NRC227: 28m at 2.57% REO* from surface
NRC228: 46m at 2.29% REO from 50m
NRC234: 41m at 2.96% REO from surface
NRC237: 31m at 2.66% REO from surface to end of hole

These near surface mineralized intersections will extend the current resource model a further 200m to the south.

Additional infill drilling continues to confirm the continuity of high grade rare earth mineralisation extending from surface to depths of over 100m vertical. New intersections include:

NRC240: 24m at 5.64% REO from surface
NRC242: 121m at 4.86% REO from surface to end of hole
NRC245: 112m at 5.16% REO from surface to end of hole
NRC248: 36m at 5.28% REO from surface
NRC250: 112m at 4.67% REO from surface
NDD011: 153.04m at 4.14% REO from surface

The current field program is nearing completion with just 8 holes remaining to complete the planned drilling.

*REO = Total Rare Earth Oxide. See Table 3 for drill intersection details and Table 2 for individual rare earth distribution.

Background:
The Ngualla Rare Earth Project is a recent discovery. The maiden Mineral Resource of 170 million tonnes at 2.24% REO* announced on 29^th February 2012 ranks as the fifth largest rare earth deposit in the world outside of China.

The total resource includes a higher grade, near surface zone of:

40 million tonnes at 4.07% REO for 1.6million tonnes of contained REO.

(*REO = total rare earth oxides including yttrium. See Table 1 for Mineral Resource classification details)

Ngualla has several fundamental geological aspects that offer distinct advantages for development over other rare earth projects. These include the large size of the deposit, the outcropping, high grade mineralisation amenable to open cut mining with low strip ratios, favourable mineralogy for processing and the lowest uranium and thorium levels of any major rare earth deposit in the world.

Peak has identified and proved a simple sulphuric acid leach processing route to produce a high grade, high purity rare earth concentrate and continues to make rapid progress towards developing Ngualla into a low cost producer.

The scoping study, which will include a preliminary economic assessment of the project, is on track for completion by end December 2012.

Drilling Program

Drilling is continuing on site to infill the area of the SREZ targeted for first production. The program is providing the detailed data and samples required to support the metallurgical test work in progress and feasibility studies due to commence in 2013.

New assay results have been received from an additional 26 drill holes completed in the southern part of the Southern Rare Earth Zone (Figure 2).

Infill holes continue to return high grade intersections from surface within weathered carbonatite with a best intersection of:

NRC245: 112m at 5.16% REO from surface to end of hole

See Table 3 for this and other new drill intersection details and Figure 2 for location map of new results

The new results continue to confirm the robust nature and continuity of this enriched, near surface weathered mineralisation in the heart of the bastnaesite zone targeted for first production.

Drill holes completed to the south of the current Mineral Resource model have intersected rare earth mineralisation from surface (Figure 2). The best new intersection in this area was:

NRC234: 41m at 2.96% REO from surface

Although slightly lower grade, these near surface mineralised intersections within weathered carbonatite extend the SREZ a further 200m to the south.

Assay results for a further 36 completed drill holes are waited and, at 5^th November 2012, just 8 holes remain to complete the current drilling program.

An updated Mineral Resource estimate will be completed according to the JORC Code and Guidelines by the end of the first quarter 2013. This new resource model will provide the detailed geological, geochemical and metallurgical information required to feed into project feasibility studies scheduled to commence in early 2013 after completion of the current Scoping Study in December 2012.

The Company will continue to provide regular updates regarding the progress of the SREZ drilling and assay results as they are received.

Appendix:

Table 1: Classification of Mineral Resources for the Ngualla Rare Earth Project, 1.0% and 3.0% REO cut-off grades (February 2012).

*REO (%) includes all the lanthanide elements plus yttrium oxides. Figures above may not sum precisely due to rounding. The number of significant figures does not imply an added level of precision.

Table 2: Relative components of individual REO’s (including yttrium) as a percentage of total REO at the Ngualla Southern Rare Earth Zone ( > 1% REO) compared to other large rare earth deposits.

Source: Arafura Website and *= Ngualla Mineral Resource >1% REO.

The bold typed rare earths denote the five “critical rare earths”, which are predicted to be in undersupply in the years ahead and predicted to command significantly higher value than other rare earths. (US DoE, ‘Critical Materials Strategy’ report, December 2011).

The critical rare earths contribute the majority of the value from Ngualla at 56% of the in ground value. Of these, neodymium is the main single rare earth value driver, contributing 34%, (relative rare earth oxide prices: Metal Pages, 11^th September 2012).

Table 3: Southern Rare Earth Zone – rare earth RC and diamond drill intersections, +1 % REO

Selected intersections + 2% REO in italics and minimum 4m intersection width.

Note: REO = total rare earth oxides including yttrium. See Table 2 for relative distribution of individual rare earth oxides. Samples are 2m composites from angled -60° west RC drilling except for NDD** holes which are PQ diamond from surface and RC holes NRC237 and NRC250 which are drilled at 090° azimuth (north). Intersections calculated using 1% REO lower cut and a maximum of 2m internal dilution. Analysis by SGS laboratory, Perth, by 4 acid digest and ICP or XRF. Co-ordinate system is Arc 1960 UTM zone 36S. * = hole ended in mineralisation.

The information in this report that relates to Exploration Results is based on information compiled and/or reviewed by Dave Hammond who is a Member of The Australasian Institute of Mining and Metallurgy. Dave Hammond is the Technical Director of the Company. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dave Hammond consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Mineral Resources is based on information compiled by Rob Spiers, who is a member of The Australasian Institute of Geoscientists. Rob Spiers is an employee of geological consultants H&S Consulting Pty Ltd. Rob Spiers has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Rob Spiers consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Safe Harbor Statement

The information in this document has been prepared as of October 15, 2012. Certain statements contained in this document constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking information under the provisions of Canadian provincial securities laws. When used in this document, the words “anticipate,” “expect,” “estimate,” “forecast,” “will,” “planned,” and similar expressions are intended to identify forward-looking statements or information.

Such statements include without limitation: statements regarding timing and amounts of capital expenditures and other assumptions; estimates of future reserves, resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of future internal rates of return, mining costs, cash costs, minesite costs and other expenses; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof; statements and information as to the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; estimates of reserves and resources, and statements and information regarding anticipated future exploration; the anticipated timing of events with respect to the Company’s minesites and statements and information regarding the sufficiency of the Company’s cash resources. Such statements and information reflect the Company’s views as at the date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements and information. Many factors, known and unknown could cause the actual results to be materially different from those expressed or implied by such forward looking statements and information. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, capital expenditures, and other costs; currency fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks; community protests; risks associated with foreign operations; governmental and environmental regulation; the volatility of the Company’s stock price; and risks associated with the Company’s by-product metal derivative strategies. For a more detailed discussion of such risks and other factors that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this document, see the Company’s Annual Report on Form 20-F for the year ended December 31, 2011, as well as the Company’s other filings with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission. The Company does not intend, and does not assume any obligation, to update these forward-looking statements and information. Marc Legault, a Qualified Person and the Company’s Vice-President, Project Development, reviewed the technical information disclosed herein. For a detailed breakdown of the Company’s reserve and resource position see the July 18^th, 2012 press release on the Company’s website. That press release also lists the Qualified Persons for each project.

About Peak Resources
Peak is developing the Ngualla Project, a potentially low-cost, long term rare earth project located in south west Tanzania. Ngualla has been ranked as the fifth largest deposit in the world outside China, and the highest grade of the top seven.

Ngualla has a Mineral Resource of 170 million tonnes grading 2.24% of rare earth oxides (REO). Within the resource there is a highly weathered and near-surface zone estimated at 40 million tonnes at 4.07% REO, equivalent to 1.6 million tonnes of contained REO (see Table 1 below for resource classifications). Ngualla is also a bulk deposit which is largely outcropping. These attributes place the project among the world’s most notable rare earth discoveries of recent years.

Ngualla is a potential low cost open pit mine due to its shallow outcropping high grade mineralisation. The initial sighter metallurgical test work to date has been completed using a sulphuric acid leach process route suggesting a relatively less complex, potentially cheaper capital outlay and shorter time to production.