PEAKO LIMITED — Capital/Financing Update 2015

Jul 1, 2015

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2 July 2015

Australian Securities Exchange 2 The Esplanade PERTH WA 6000

ASX Code: PKO

Sale of South Block A Interests

Peak Oil & Gas Limited (Peak) announces that following receipt of approval of shareholders in General Meeting on 1 May 2015, it has now sold the Company’s indirect interest in South Block A and associated intercompany debt for consideration of $800,000.

Peak ‘s wholly owned subsidiary Peak Oil & Gas (Australia) Pty Ltd (POGA) has executed a deed with respect to the sale of the one issued share in Peak Oil & Gas (SBA) Pte Ltd and assignment of debt (Deed) with Bow Energy International Holdings Inc (Bow), a subsidiary of ACL International Ltd, a company listed on the Ventures Board of the Toronto Stock Exchange.

Pursuant to the Deed, POGA has transferred to Bow, the one issued share of Peak Oil & Gas (SBA) Pte Ltd and assigned to Bow the benefit of the $4,164,673 intercompany debt owed by Peak Oil & Gas (SBA) Pte Ltd to POGA.

Peak Oil & Gas (SBA) Pte Ltd is the holder of 75% of the shares in Renco Elang Energy Pte Ltd, the 51% participant and Operator in the South Block A Production Sharing Contract, in North Sumatra. Granted in 2009, the South Block A Production Sharing Contract is currently in Year 6 of the extended Initial Exploration Period with an exploration well required to be drilled in order to satisfy the Firm Work Commitment obligation of the permit.

The Peak Board sought proposals and considered numerous avenues for a transaction, mindful of Peak’s need to fund its ongoing participation in South Block A in a timely fashion, Peak’s need to address its debt situation and Peak’s general financial position.

Proceeds of sale are as follows:

$700,000 Reduction of Peak’s debt to Octanex NL (“ Octanex ”) $100,000 Retained by POGA as working capital for corporate overheads

Peak’s remaining exploration interests are shown in the table below.

Country	Project	Asset	Direct Interest	Economic Interest
Philippines	SC6 Cadlao	Oil & Gas	25.00%1	16.25%2
Australia	SundayCreek	Uranium	100.00%3

1 Interest earned by Peak and held on trust by Cadlao Development Company Limited (Cadco) and subject to arbitration

2 Prospective interest held through VenturOil Philippines Inc, subject to dispute.

3 Access subject to execution of the relevant Heritage Agreement with Western Desert Lands Aboriginal Corporation

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Additionally, Peak will continue to review opportunities for additional assets to create value for shareholders.

Debt to Octanex

As previously reported to members, Peak has an outstanding debt to Octanex for monies advanced by Octanex to Peak and predominantly spent by Peak to fund the acquisition of 2D seismic and other expenditure on the SBA PSC. At present Peak and POGA can only postpone their requirement to repay the amount owed to Octanex, which, with interest, is approximately $1,965,000 prior to application of the $700,000 outlined above. Octanex has to date exercised its discretion to grant extensions of the Due Date for repayment of Peak’s and POGA’s debt on a rolling 60 day cycle.

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