Neodymium and Praseodymium ‘NdPr’ Biggest Blind Spot in the Global Commodity Market Peak Resources - Becoming one of world’s lowest cost fully integrated NdPr producers BEHIND EACH BATTERY IS A MOTOR Over 90% of all new energy vehicles will be equipped with an NdFeB permanent magnet motor. 0.5-1kg per is the incremental demand for neodymium (Nd) and praseodymium (Pr) for each internal combustion vehicle (ICV) which gets replaced by an electric vehicle (BEV,PHEV,HEV). 20 th March 2019
Disclaimer The information in this document has been prepared as at February 2019. 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 2017, 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 on http://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 ann ouncement. 2
Peak Resources - Introduction 10 Year Share Price Peak Resources Limited (ASX:PEK) is focussed on developing one of the world’s largest, highest grade and lowest cost Neodymium (Nd) and Praseodymium (Pr) (NdPr) rare earth projects . NdPr is a key ingredient in NdFeB Permanent Magnet Motors (PPMs) which are widely used in electric vehicle (EV) motors and direct drive wind turbines The Ngualla Project, located in Tanzania, has existing JORC Compliant Reserves of 18.5 mt at 4.8% Rare Earth Oxide (REO) equating to 887,000t contained REO. Peak holds a 75% interest in the Ngualla Project alongside Appian Natural Resources Fund (20%) and International Finance Corporation (5%). 10 Year NdPr Price Peak is looking to become the second fully integrated producer of NdPr Oxide outside of China with its Tees Valley Refinery to be constructed at the UK’s third largest port, close to existing infrastructure and supplies of low-cost chemical reagents whilst providing access to European and Asian markets. The NdPr price outlook is decidedly bullish with increased demand being driven by the adoption of EV and wind energy technologies . China’s historic supply dominance of rare earths, ~ 90% of the global supply, is undergoing structural changes due to environmental and supply side reforms which will reduce the overall volumes and availability of spot material in the market. Source :Asian Metal and Argus Metals International 3
Investment Highlights One of the Highest Grade, Lowest Cost NdPr Projects Globally: Estimated US $32.24/kg neodymium & praseodymium (NdPr) breakeven point for positive cash flows assuming no other sales revenues from other rare earth material except NdPr, total pre- production CAPEX of US $365m and OPEX of US $91m p.a. over a 26 year LOM with a post-tax NPV 8 of US $612m and IRR 22% at NdPr price of US $77.50/kg. Simple Geology and Mining : Large, high grade 4.8%, soft bastnasite ore body with mineralisation from surface allowing low cost free- dig open pit operation with a low strip ratio of 1.77:1. The Right Team : Extensive industry experience with Rocky Smith (CEO) ex-MD of Molycorp’s Mountain Pass Rare Earth Complex, Michael Prassas (GM Sales), ex-Global Sales Account Manager Catalysis and newly appointed Peter Meurer (Chairman), current Non-Executive Chairman of Nomura Australia and former Vice Chairman of Citi and Merrill Lynch. Advanced Project : BFS completed, Tanzanian environmental certificates received, Teesside Refinery fully permitted - environmental certificate and Planning Permission received, further Project optimisation completed and mining licence application submitted. Proven processing capabilities: Fully proven piloted process, Mineralogy which is low in reagent consumption, High Grade 45% REO, low mass concentrate, Selective leach process, Low strength acids- no acid roast, use of conventional construction material e.g. Modular plastic tanks Exposure to Forecast Increases in NdPr Price : Peak offers excellent leverage to the favourable NdPr price outlook with 90% of revenue to be generated from NdPr. Tight Capital Structure : Circa 800m shares on issue with 34% held by top 10 including Appian Natural Resource Fund (14.06%) and International Finance Corp/World Bank (3.99%). Compelling Valuation : With an EV of circa A $21m, Peak offers a compelling value proposition against its ASX listed peers. 4
Corporate Snapshot 12 Month Share Price Performance Capital Structure (as at 11 March 2019) Share Price (ASX:PEK) 2.6¢ Shares on Issue (Undiluted) 799.3m 52 Week Range 2.0¢/5.2¢ Market Capital A $20.8m Cash As At 31 December 2018 Peak Resources A $4.1m Appian Debt due September 2019 A $ 1.9m Enterprise Value $18.6m Listed Options 61.1m (Exercisable at $0.06 expiring 14 June 2020) Top Shareholders Unlisted Options Outstanding (Exercise Price A$0.035- A$0.15) 133.5m Appian Pinnacle Holdco Limited 112,351,377 14.06% Unlisted Performance Rights A$0.03 – A$0.15 International Finance Corporation 31,846,257 3.98% J P Morgan Nominees Australia Limited 30,835,210 3.86% 1 Month Liquidity 8m shares for ~$212k CRX Investments Pty Ltd 16,427,337 2.06% 6 Month Liquidity 55m shares for ~$1.6m Sambold Pty Ltd 16,325,000 2.04% 12 Month Liquidity 144m shares for ~$5.04m Board (P. Meurer, D. Townsend & J. Murray) 3,888,753 0.49% 5
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