EDITOR: | May 29th, 2013

Peak Resources: Revised Scoping Study delivers lower costs for Ngualla

| May 29, 2013 | No Comments
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Peak-Resources-LtdMay 29, 2012 (Source: Peak Resources) — Peak Resources Limited (Peak: ASX:PEK; OTCQX:PKRLY), is pleased to announce reductions in both operating and capital costs at its 100% owned Ngualla Rare Earth Project in Tanzania.

Peak has updated the December 2012 Scoping Study and preliminary economic assessment to reflect the significant improvements in costs and option to increase production as a result of recent positive beneficiation test work results and a higher grade and increased Mineral Resource for the weathered Bastnaesite Zone at Ngualla.

Highlights

The current May 2013 revision to the December 2012 Scoping Study shows further improvements to project economics including:

• Operating Cost of $10.18 per kg REO* equivalent productreduced 8% from $11.05
• Lower Capital Cost of US$373 million reduced 7% from $400 million (excluding contingency)
• Higher mine grade of 5.35% REO forinitial 25 years production increased from 4.35%
• Lower strip ratios of 0.89 forthe first 25 years of mining down from 3.34, reducing mining costs by 44% per kg REO produced
• Reduced sulphuric acid consumption by 45% in the hydrometallurgical (leach recovery)
process
• Extended mine life from 25 years to in excess of 50 years from the weathered Bastnaesite Zone

These enhanced results deliver an improved NPV10 and IRR of US$1.768 billion and 60%, on the December 2012 10,000 tonne per annum base case scenario

The option to double production rates to 20,000tpa REO delivers NPV10 of US$3.833 billion and IRR of 77%

Peak Executive Chairman Alastair Hunter said “This update to the Scoping Study and preliminary economic assessment quantifies the excellent results achieved from the improved resource model and beneficiation test work released in April this year. The update further confirms Ngualla’s position as a low cost operation, with the lowest capital requirement of all emerging rare earth producers.”

*REO total rare earth oxide including yttrium

Click here to see the full release


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