The Ngualla Carbonatite is a roughly circular volcanic pipe with a diameter of approximately 3.8km. A

 central north south orientated ridge is surrounded by areas covered in alluvium up to 30m thick. Some of the mineralisation at Ngualla is similar in style to that at Mt Weld (Lynas Corporation Ltd) in Western Australia and Zandkopsdrift (Frontier Rare Earths Ltd) in South Africa, being REO, phosphate and tantalum – niobium enrichment in a deeply developed regolith profile above a large carbonatite. Mineralisation is also contained in extensive alluvial deposits around these central hills of weathered carbonatite.

There is no previous drilling on this project. Peak commenced exploration of the carbonatite in late 2009 and has already completed surface sampling, mapping, an airborne geophysical survey and two significant phases of drilling.

Peak is encouraged by the results to date and the significant upside to the project and is continuing to aggressively explore this exciting new discovery.

Alluvial Deposits
Aircore drilling by Peak in July 2010 identified extensive zones of REO, niobium-tantalum and / or phosphate mineralisation in unconsolidated alluvial sediments, and also phosphate in the weathered bedrock beneath. The alluvial deposits are up to 30m thick and surround central hills of outcropping weathered carbonatite. Highly encouraging mineralised intersections were returned from this program including:

NAC082:	28m at 3.27% TREO from surface
NAC362:	20m at 2.97% TREO from surface
NAC366:	12m at 3.57% TREO from surface to eoh

Mineralisation >2% TREO has been identified by the aircore drilling within an alluvial channel to average depths of 12m over a 550m x 350m area to the southwest of Mt Ngualla. The higher grade zone is open and untested for a further 240m to the northeast, where grades increase towards the apparent bedrock source of the TREO’s at Mt Ngualla.

In addition to REO’s, large areas of niobium – tantalum and phosphate mineralisation were also identified by the shallow aircore drilling program. Grades of 10 to 20% phosphate (P2O5) were returned from both the transported alluvial cover and the weathered bedrock (saprolite) below. Phosphate intersections included:

NAC348:	8m at 11.7% phosphate from surface (alluvial) and 12m at 15.7% phosphate from 14m (weathered bedrock)
NAC327:	18m at 13.1% phosphate from surface to eoh (alluvial and weathered bedrock) and niobium – tantalum:
NAC378:	16m at 0.50% Nb2O5 and 44ppm Ta2O5 from 4m to eoh
NAC333:	10m at 0.57% Nb2O5 and 129ppm Ta2O5 from 4m
NAC280:	10m at 0.51% Nb2O5 and 148ppm Ta2O5 from surface

Large areas of alluvial sediments over the carbonatite have yet to be tested by drilling, and many of the current holes ended in mineralisation. Significant upside remains for all these commodities, with mineralisation open and untested in several directions.

Carbonatite Central Bedrock Zone
More recently, the central hills have been identified as a bed rock source for this alluvial mineralisation. Four wide spaced and shallow reconnaissance RC holes completed in July 2010 at the end of the aircore program all returned mineralised intersections including:

NRC001:	40m at 3.21% TREO from surface to eoh
NRC003:	30m at 0.38% Nb2O5 and 150ppm Ta2O5 from surface to eoh with the hole also ending in 26m at 14.7% phosphate

Mineralisation is hosted within the in situ regolith profile of the deeply weathered carbonatite. Peak has rapidly followed up these encouraging results with deeper RC and diamond drilling in November - December 2010 across the centre of the 800m x 1km high tenor REO surface sampling anomaly that covers the central hill. 

The Company looks forward to receiving assay results from this program in early 2011 and plans to aggressively expand its drilling activities at Ngualla as soon as possible after the rainy season ends in April 2011.

The priority focus of future drilling will be to test both the bedrock and alluvial Rare Earth Oxide zones of mineralisation with the objective of providing sufficient data for an initial resource estimate as rapidly as possible.

Continued exploration success at the Ngualla Project is seen by the Directors as being a major driver of shareholder growth in 2011.