PEAKO LIMITED — Capital/Financing Update 2016

Sep 26, 2016

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ASX RELEASE

27 September 2016

Peako Executes Sunday Creek Project Access Agreement

Peako Limited (“Peako” or the “Company”) (ASX: PKO) advises that it has executed a Land Access & Minerals Exploration Agreement (Agreement) with the Western Desert Lands Aboriginal Corporation (WDLAC), the representative body for the Martu Traditional Owners of the Sunday Creek project area in Western Australia.

The Agreement paves the way for the granting of an Exploration Licence over the application area E45/3278 by the Western Australian Department of Mines and Petroleum (DMP) whilst ensuring that the traditional owners’ rights and culture will be recognised and respected.

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Peako minerals exploration application areas location map E45/3278 (shown in red)

Peako Limited ABN 79 131 843 868 Level 21 500 Collins Street Melbourne t +61 3 8610 4709 e info@peako.com.au w www.peako.com.au

Peako’s Sunday Creek project comprises two applications (E45/3278 and E45/3345) located in the Rudall River Province of the Paterson region of Western Australia. The region is well known for its uranium potential, hosting Australia’s fifth largest uranium deposit at Kintyre. The prospect is polymetallic, containing copper and lead.

As well as its Sunday Creek tenement applications, Peako has two other tenement applications, as shown in the table below:

Prospect name	Application No	Size(km2)	Application date
SundayCreek	E45/3278	60.80	30 July2008
SundayCreek	E45/3345	9.60	15 December 2008
Broadhurst	E45/3477	182.40	10 August 2009
Mt Sears	E45/3292	150.40	30 June 2008

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Rudall River Province Four Application Areas

The Sunday Creek and Mount Sears areas were first explored by others between 1978 and 1981. Exploration activities at Sunday Creek included geochemical sampling, field mapping, airborne and ground magnetic and radiometric surveying, 6 percussion holes for a total of 489 metres and 11 diamond holes (704 m in total). All but one were located within the application areas.

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The Sunday Creek Prospect (E45/3278 and E45/3345) was identified as a radiometric anomaly, with subsequent rock chip samples containing copper, uranium and lead. Radiometric anomalies were also followed up with soil geochemical surveys, which produced low assay responses, mainly due to sand cover. Rock chip samples along the contact produced elevated copper and uranium responses and several of these anomalies were drilled, returning several mineralized intersections.

Reconnaissance drilling was done at very wide spacing of 4km and the prospective contact of 20km strike length remains largely untested, with only four drill holes completed. In addition, drill holes were generally shallow and possibly positioned outside the main target zone.

The lack of high resolution data available at the time (1978-1981) resulted in extremely limited structural interpretation by previous explorers. Also, the geological knowledge and the prospective validity of the region for uranium mineralization have increased considerably since the subsequent finding of the Kintyre uranium deposit in 1985 by CRA Exploration Pty Ltd and now operated by Cameco Corporation.

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