Peak Resources : Investor Presentation - Cape Town conferences

Peak and NdPr at the Heart of

the Electrification Revolution

1

CEO Presentation Cape Town 2020

Disclaimer

• The information in this document has been prepared as at January 2020. The document is for information purposes only and has been extracted entirely from documents or materials publicly filed with the Australian Stock Exchange and/or the Australian Securities and Investments Commission. This presentation is not an offer or invitation to subscribe for or purchase securities in the Company. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions.
• 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, mine site 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 mine sites 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 for the year ended 30 June 2019, as well as the Company's other filings with the Australian Securities Exchange. The Company does not intend, and does not assume any obligation, to update these forward-looking statements and information.

Compliance Statement:

• Information relating to Infrastructure, project execution, cost estimating, metallurgical test work, exploration results, Mineral Resource estimates and Ore Reserve estimates is extracted from the report entitled "Lower price deck delivers similar BFS results for Ngualla" created on the 12th of October 2017 and is available to view onhttp://www.peakresources.com.au/asx-announcements/. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

1

The Investment Proposition

• The right commodity at the right time - Neodymium (Nd) and Praseodymium (Pr)
• The standout Ngualla Rare Earth Deposit - high grade and rich in NdPr
• Potential to provide a strategic 'outside of China" rare earth processing hub - Teesside,UK
• Fully permitted and piloted process - Mining License pending
• The right team to deliver - real rare earth operations experience

2

The right commodity at the right time - NdPr

• The supply demand balance of NdPr is set to be disrupted by the electrification of our society, initiated by electric cars, buses and trucks becoming mainstream applications.
• The new EU emission standards indirectly represent an EV quota. Consequently, the market anticipates that 50% of total sales will need to be electrified by 2030.
• Demand is projected to exceed current supply capacity by 2021, with increased consumption of 2,000t NdPr every year till 2040.

3

Rare Earth Market - Demand vs Supply Outlook

• Sustained increase in NdPr price expected due to increasing demand from EV and no new supply

Anticipated supply demand imbalance

Source: Peak Resources Limited based on individual company and industry announcements

4

Rare Earth Market - Historical Price Volatility

• NdPr Price moves sharply in response to supply and demand

2011 Trade Dispute China ceased rare earth exports to Japan during trade dispute.

Price moved from $32/kg to $194/kg in approximately 6 months (+100% increase each month)

2017 Supply Tightening Chinese government cracking down on plants with poor environmental performance, resulting in shortage of supply. As plants conformed to enforced changes supply restored.

Price moved from $45/kg to $81/kg in less than 3 months

Source: Asian Metals

5

Rare Earth Market - Price Projections

Average: US$115/kg NdPr

	140
USD/kg)	120
(Dom China,	100							Average: US$85/kg NdPr
80
Price								Average: US$60/kg NdPr
NdPr	60
Forecast	40
	20					Roskill Base		Roskill High	Roskill Low
	0
	2022	2023	2024	2025	2026	2027	2028	2029	2030

Source: Roskill

6

The standout Ngualla rare earth deposit - Tanzania

Ngualla rare earth project is one of the largest, highest grade & lowest Cost NdPr rare earth projects globally

• Mineral Resource: JORC 214.4mt at 2.15% REO
• Ore Reserve: JORC 18.5mt at 4.80% REO; 21.3% NdPr
• Mining: Low Strip Ratio of 1.77
• Mine Life: 26 years using 22% of the Resource
• Ownership: 100% owned by Peak Resources Ltd.

#The material assumptions underpinning Ore Reserve, production target, capital and operating costs are disclosed in theworld's lowest cost rare earth projects" continue to apply and have not materially changed. ## See ASX Announcement"Ngualla Rare Earth Project - Updated Ore Reserve" as of 12 April 2017

ASX Announcement dated 12 April 2017 "BFS positions Ngualla as one of the"Higher grade Resource for Ngualla nearly 1 million "andASX Announcement

7

Peer Comparison - Market Capitalisation

• Peer Comparison presented of advanced stage (DFS completed) NdPr-focussed companies
• Quality of the Ngualla deposit and strategic value of the Teesside Rare Earth Separator not reflected in Market Valuation

51

Market Capitalisation

(A$m, 31 December 2019)

312

117

96

	PEAK	HASTINGS	ALKANE	ARAFURA
	Note: Alkane Market Capitalisation higher due to additional
Source: Individual Companies ASX Announcements	operational projects (gold assets)		8

Mineral Resources and Ore Reserves Comparison

Mineral Resource

Ore Reserve

	5%			The highest ore grade…
							The Weathered Bastnaesite
								Zone, which makes up the
								Ore Reserve, is naturally
(%REO)	4%							enriched in REO
3%
REO Grade
2%

1%

0%

PEAK HASTINGS ALKANE ARAFURA

Source: Individual Companies ASX Announcements

Contained NdPr (000's tonnes)

1,000

800

600

400

200

0

The most NdPr…

Ore Reserve represents only 22% of the total Mineral Resources, supporting 26 year mine life. Development of remaining resources has significant future potential.

PEAK HASTINGS ALKANE ARAFURA

9

A strategic 'Outside of China' Rare Earth Processing Hub - UK

• The Teesside Rare Earth Separator is a significant differentiator over Peak's peers.
• Low Capex and Opex due to mild operating conditions and 70% Ce rejection. Unit operating cost for one kg NdPr oxide of US$ 32.24 (calculated from the total OPEX of US$91m divided only by the NdPr output). i.e. no credits have been included for Ce, La, SEG and Heavy rare earth products.
• The Teesside Separator to become a rare earth separation hub. Look to other sources of supply to supplement Tanzanian concentrate.
• Annual Production (Phase 1);
• • 2,810t NdPr Oxide
  • 7,995t La Carbonate
  • 3,475t Ce Carbonate
  • 625t SEG Carbonate
• Phase 2 Operations to include
• • Double production capacity
  • magnet recycle
  • heavy RE separation
  • metal conversion
  • magnet JV

10

Teesside Rare Earth Processing Hub

• Peak's Teesside Rare Earth Separator will be located at Wilton International's Teesside Industrial Zone in Tees Valley, North East England.
• Teesside benefits from existing site infrastructure located within a major UK exporting region which is home to existing heavy industries including mineral processing, automotive and advanced manufacturing.
• Existing infrastructure includes road, rail, air and sea connections providing access to European and Asian markets.
• Tees Valley is located alongside the UK's 3rd largest port by volume within close proximity to competitively priced chemicals, water disposal and treatment facilities required for the refining process.
• Power is generated on-site and is also connected to the UK National Grid providing power security, avoiding the need for significant capital outlay.
• Teesside benefits from an available skilled workforce and local government and community support.
• CAPEX: US $165m incl. 10% contingency plus %5 owners costs
• OPEX: US $40m p.a.

Tees Valley

London

11

Compelling Project Economics

US $32.24 is the breakeven point for positive cash flow only from the projected 2,810t p.a. NdPr sales; OCBRITDA = Operating cost before royalties, interest, tax, depreciation and amortisation.
*See ASX Announcement: "Lower price deck delivers similar BFS results for Ngualla" dated 12 October 2017
# See ASX Announcement:Process optimisation study boosts Ngualla's operating margin" dated 28 August 2017
BFS Price deck: NdPr Mixed Oxide 2N Min 75% Nd2O3 US $77.50/kg; Cerium* US$ 02.20/kg; Lanthanum* US $03.70/kg; SEG & Mixed Heavy*US $08.00/kg	12

The Project on a Page

NGUALLA		NGUALLA		TEES VALLEY
ORE BODY		MINE AND PROCESS PLANT		SEPARATOR

• High grade 4.80% REO
• Large deposit
• Bastnaesite mineralogy
• Mineralisation from surface
• Very low U and Th (15 and 53 ppm)
• Thick blanket morphology
• Low in reagent consuming minerals

• Soft, free dig Ore
• Simple, small open pit mine
• Low waste: Ore strip ratio (1.77)
• Zero offsite discharge + water recycle
• High Grade (45% REO), low mass concentrate
• Proven piloted process

• Selective leach process
• Low strength acids- no acid roast
• Modular plastic tanks
• Small SX separation plant
• Bulk, low-cost reagents available
• Pre-existingutilities
• Existing waste management facilities

Low production cost	Ethically sustainable	Aligned to EV markets
Long life	High value, separated products

NGUALLA RARE EARTH PROJECT: UNDERSTOOD - DE-RISKED - COMPETETIVE - MANAGABLE - READY TO BE DELIVERED

See ASX Announcement: "BFS positions Ngualla one of worlds lowest cost RE Projects" dated 12 April 2017 and ASX Announcement: "Process optimisation study boosts Ngualla's operating margin" dated 28 August 2017	13

Corporate Snapshot

Capital Structure (as at 31 December 2019)

	Share Price (ASX:PEK)	3.9¢
	Shares on Issue (Undiluted)	1,305.3m
	52 Week Range	2.0¢/6.6¢
	Market Capital	A $50.9m
	Cash As At 31 December 2019 Peak Resources	A $2.9m
	Enterprise Value	$48.0m
	Listed Options
	(Exercisable at $0.06 expiring 14 June 2020)	61.1m
	Unlisted Options Outstanding
	(Exercise Price A$0.035- A$0.15)	160.8m
	Unlisted Performance Rights	10m
	1 Month Liquidity	20.5m shares for ~$0.8m
	6 Month Liquidity	185m shares for ~$8.1m
	12 Month Liquidity	430m shares for ~$19.6m
	*ASX Volumes only

12 Month Share Price Performance

Top Shareholders

Appian Pinnacle Holdco Limited	435,488,554	33.36%
International Finance Corporation	94,870,449	7.27%
J P Morgan Nominees Australia Limited	47,476,639	3.64%
Sambold Pty Ltd	16,325,000	1.25%
CRX Securities Pty Ltd	14,500,000	1.11%
Directors and Management	8,845,104	0.68%

14

Why Peak Resources?

Peak Resources is set to become the leading rare earth operator outside of China

• The right Asset
• The right Market
• The right Team
• The right Investment

See ASX Announcement: "BFS positions Ngualla one of worlds lowest cost RE Projects" dated 12 April 2017 and ASX Announcement: "Process optimisation study boosts Ngualla's operating margin" dated 28 August 2017

ASX:PEK

15

Peak Resources Limited

Ground Floor,

5 Ord Street,

West Perth,

Western Australia 6005

PO Box 603, West Perth 6872. ASX: PEK ACN 112 546 700 Contact details:

Telephone: [phone] [e-mail]

Chief Executive Officer:

Rocky Smith

Company Secretary:

Graeme Scott

Non-Executive Chairman:

Peter Meurer

Non-Executive Directors:

Rob Sennitt, Jonathan Murray, Tony Pearson