Peak Minerals : Nickel Sulphide Mineralisation Confirmed at Green Rocks

ASX ANNOUNCEMENT ASX Codes: PUA, PUAOD18 March 2022

onlyHighlights

Nickel Sulphide Mineralisation Confirmed at Green Rocks

• Petrography has confirmed presence of pentlandite-chalcopyritenickel-copper sulphide mineralisation at Lady Alma intrusion related to massive sulphide veins
• Intersections from drilling include:

use	o 0.13m at 4.95% Cu, 0.70% Ni
o	0.2m at 4.18% Cu, 0.15% Ni
	o 0.2m at 1.86% Cu, 0.12% Ni
	o 0.3m at 0.17% Cu, 0.46% Ni
personal	• Petrography strongly supports a Cu-Ni system being present:
source was close (within 500m)
	o	Intercumulus sulphides consist of chalcopyrite, pyrrhotite and pentlandite

consistent with similar magmatic systems

• The presence of coarse grained pentlandite confirms the nickel fertility of the system

o Scanning electron microscopy underway to determine tenor of copper and nickel minerals

• Recent remodelling of historical VTEM indicates that the drilling did not effectively test the main conductive zones which is consistent with the Company's interpretation that the

Peak Minerals Limited (ASX: PUA) (Peak or the Company) is proud to share the results from diamond drilling at the Lady Alma Prospect completed in 2021. The drill results, combined with the recently released rock chip samples1 map a small mafic-ultramafic intrusion, approximately 650m x 300m (~0.2km2). The intrusion is one of a cluster of mineralised intrusions including (in

Fororder of size) Copper Hills, Lady Alma, Rixon and Rinaldi (Figure 2). The Lady Alma intrusion consists of disseminated mineralisation and zones of brecciated mineralisation along the contact to the pyroxenite (Figure 1).

Massive sulphide stringers up to 11cm in width are present and are classified as injections of chalcopyrite, pyrrhotite and pentlandite from a proximal magmatic source.

The prospective intrusion remains untested at depth, with historical drilling focused on near surface sulphide veins and associated Cu-Au mineralisation that was previously mined.

1 Refer ASX released dated 2 Mach 2022 'Impressive Ni-Cu values over Green Rocks EM Conductors'.

Peak Minerals Limited

Registered Office: Level 1, Suite 23, 513 Hay St, Subiaco WA 6008

Email: [e-mail]

ACN: 072 692 365

www.peakminerals.com.au

use only

Figure 1. CHRDC004 from 374.4m - Polished section of sulphide mineralisation, note the coarse pentlandite (Pn) along the margin of

the massive sulphide (bright brown) in pyrrhotite (Po) (dull brown) with clasts of magnetite and amphibole.

personal

CEO, Jennifer Neild, commented:

"For a hole that did not effectively test the modelled conductors, these intersections are significant. This system is of fertile, magmatic origin, and appears to have scale. When Peak first looked at this project, the target was Cu-Au and thought to be a VMS system. This work confirms a magmatic target and one with the potential to host considerable nickel sulphide mineralisation. All the work completed over the last year has further enhanced the area with thorough geochemistry and mapping. This, combined with high resolution ground geophysics, is going to give us the best chance at unlocking this system. We are more and more confident that the source is very close. We look forward to completing ground based

Formoving loop EM across these high priority conductors prior to drill testing in Q2 CY22."

Concept

The potential of the area has historically focused on the surface Cu-Au mineralisation that was mined out in the 1900's. Previous exploration targeted a VMS system and drilled a VTEM anomaly which was not resolved. Peak reviewed available drill core and noted textural relationships indicating a magmatic system. The presence of isolated ultramafic xenoliths with chalcopyrite in a gabbroic host were observed indicating the presence of a possible mineralised body in the vicinity. The potential for this style of system was verified with rock chip samples collected in September 20202.

2 Refer ASX released dated 11 November 2020 'Copper Hills Project Update'.

Peak further hypothesized that the large showings of copper on surface are related to a cluster of mafic-ultramafic intrusions, shown as circular remanent magnetic features (Figure 2). After initial reconnaissance drilling was completed, Peak followed this up in a methodical manner, undertaking rock chip sampling, air core drilling and mapping to confirm the theory that these could be individual mafic-ultramafic intrusions. To further aid in this work, petrophysical analysis was undertaken of Lady Alma core samples and rock chips. The results suggest significant remanent

magnetism which further support the initial interpretation. Many magmatic sulphide deposits
around the world do not have obvious geophysical (magnetic or conductive signatures) due to
only
varying mineralogy, geochemistry or depth. There is no silver bullet in exploration and significant
discoveries are made with thorough and systematic geochemistry, geophysics and mapping.
personal use
For	Figure 2. Magnetic susceptibility overlain on the preliminary Heli-EM anomalies at Rixon, Lady Alma and Copper Hills. The circular

shapes of high-grade Cu assays (>1% Cu) outline intrusions. Diamond and RC holes drilled by Peak in late 2020 and early 2021 shown.

Recall that Noront's Eagle deposit is hosted within a pipe-like intrusion only 500m by 75m wide, the mineralisation is tens of metres in diameter and continues ~1500m deep. The deposit underwent considerable exploration work. Peak has now confirmed a number of these mafic- ultramafic intrusions of similar and larger size. Lady Alma at 650m x 300m in size has the potential to host significant mineralisation.

Phase 1 air core assays are expected to return within the next week or two and should confirm

the prospectivity of the Rixon intrusion. onlyDrilling

The hole was planned directly post-acquisition of the Copper Hills tenement to demonstrate the potential of the already identified Lady Alma and Copper Hills prospects and to test the stratigraphy. CHRCD004 was a diamond tail drilled off a pre-collar completed in November 2020. A second hole, CHD005A, was drilled to the north of CHRCD004 and collared from surface due to the trajectory of CHRC005 being inadequate (see Figure 2 for positions). This hole collapsed,

useand CHD005B was re-drilled from surface to 525.6m. CHD005B was steepening and the trajectory indicated it would not hit the target. This hole was terminated and wedged (CHD005B- W1) and it intersected the intrusion, albeit at a very steep angle down the contact, and was continued to try and drill through the whole stratigraphy of the intrusion. At the time only historical geophysical data and modelling was available.

personalFor

Figure 3. Section A-A' from Figure 2. Geological cross-section created from rock chip logging now adjusted for assay results. Drillholes

are shown. The reprocessed VTEM data shows conductive shapes below the subsurface.

Completion of DHEM on this hole resulted in EM plates modelled at 130m and 140m vertical depth. These are interpreted to relate to copper mineralisation along structures. No conductors were identified at depth, but this is expected, as the drilling veered away from the newly remodelled conductors by a considerable distance, not detectable by the DHEM system.

Recently, the 2015 VTEM data was reprocessed using 2.5D Inversion and Peak was able to onlyrecognize how close the hole came to hitting a more significant conductive body (see Figures 3 and 4). In Figure 4, the conductivity model shows a limb extending towards the two drillholes; weak mineralisation is seen at the point of intersection. Though Peak cannot be confident in EM data

past 200-300m, this does correlate well. usepersonal

Figure 4. Section A-A'. Conductivity model shown on a slice of the magnetic inversion data. Drillholes CHD005B-W1 and CHRC004 are shown with selected Cu intercepts. Conductivity wireframes are capped at 300m and are open at depth. Red cylinders on drillholes are >0.25% Cu.

Mineralisation

Petrography work was undertaken of selected rock chips and drill core from the Lady Alma Prospect. Zones of semi-massive to massive veining indicate the presence of 3-phase intercumulus sulphides comprising of chalcopyrite, pyrrhotite and pentlandite. This is significant as, previously, Forthe Company was targeting a copper dominant system and now there is direct evidence that the

system is fertile for hosting nickel and copper mineralisation.

In CHRCD004 (374.4m), a band of semi-massivepyrrhotite with coarse pentlandite on the margins was intersected grading 0.46% Ni and 0.17% Cu (see Figures 1 and 5). Richard 'Dick' England, who completed the petrography, noted that the polished section showed sulphides consisting of pyrrhotite, subordinate chalcopyrite, and significant minor pentlandite (Figure 2). The pentlandite is seen as coarse grains along the sharp sulphide margin. No thin section has been made of the copper stringer which grades 4.95% Cu and 0.7% Ni but pentlandite is visible with a hand lens.