Peak Resources Limited (ASX:PEK) Non-Renounceable Entitlement Issue

Perth, Australia (ABN Newswire) - Peak Resources Ltd. (ACN 112 546 700) (ASX:PEK) (OTCMKTS:PKRLY) (Company) advises that it intends to undertake a one (1) for five (5) pro rata non-renounceable entitlement issue (Entitlement Issue or Offer) of approximately 55,111,377 fully paid ordinary shares (New Shares) at an issue price of $0.06 per New Share to raise up to approximately $3,306,683.

The Offer will include one (1) free attaching option to acquire a Share (New Option) for every one (1) New Share subscribed for and issued. The New Options will be exercisable at $0.10 each on or before 30 June 2015.

Eligible shareholders will comprise those shareholders with a registered address in Australia or New Zealand or any other shareholders in other jurisdictions to whom the Company decides to make offers.

The Company proposes to use the proceeds of the Offer as follows:

(a) fund the completion of the Preliminary Feasibility Study and Reserve estimate on the Ngualla Rare Earth Project in Tanzania (Project);

(b) continue discussions with a number of potential cornerstone investors and off take customers;

(c) fund the commencement of a Definitive Feasibility Study (including metallurgical optimisation and environmental permitting) on the Project; and
(d) fund the costs of the Offer and provide additional working capital.

Following completion of the Offer, the Company will have issued approximately 55,111,377 New Shares and 55,111,377 New Options resulting in total Shares on issue of approximately 330,668,263 and total options on issue of approximately 114,712,295.

About Peak Resources Limited:

Listed on the Australian Stock Exchange (ASX:PEK) in November 2006 and based in Perth, Western Australia, Peak Resources Ltd. is developing the Ngualla Rare Earths Project in southern Tanzania. Peak also holds a number of gold projects comprising a mix of brownfield, greenfield and advanced exploration prospects in the highly prospective Lake Victoria Goldfields area of Tanzania.

Peak’s goal is to generate shareholder value through:

- Development of the exciting new high-grade, low uranium and thorium Ngualla Rare Earth discovery into production

- Exploring for niobium-tantalum and phosphate at Ngualla to generate a pipeline of additional commodities

- Discovery of new gold deposits within its large, highly prospective portfolio of exploration projects in Tanzania

- Aggressive new project acquisition programmes in East Africa

Peak’s head office is located in Perth, Western Australia with an exploration office in Mwanza, Tanzania.

Source:

Peak Resources Ltd.

Contact:

Peak Resources Ltd.
T: +61-8-9200-5360
F: +61-8-9226-3831
WWW: www.peakresources.com.au