PEAKO LIMITED — Capital/Financing Update 2021

Jun 14, 2021

15 June 2021

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$2.5M Capital Raisings to Fund East Kimberley Exploration

Highlights

• ~$2.5 million capital raising to fund East Kimberley Exploration

• Firm commitments received for a Placement to raise $2 million (before costs)

• Peako to undertake a Share Purchase Plan (SPP) to raise ~$500k

• Peako will be funded for a drilling and exploration program that extends into October, providing ongoing news flow and potential catalysts

• Aircore drilling underway testing 10 targets under cover with scout RC drilling program to test hard rock targets to follow

Peako Limited (ASX: PKO) is pleased to announce that it has received firm commitments for a two-tranche placement to sophisticated and professional investors to raise approximately $2 million at an issue price of $0.035 a share together with a one (1) for (2) unlisted option with a strike price of $0.055 and an expiry date of 30 June 2022 ( Placement ).

The Placement was arranged and cornerstoned by Fresh Equities Pty Ltd.

The Placement has been supported by the Company’s major shareholder, the Albers Group, which will participate in tranche 2 of the placement and subscribe for $250,000 of shares, subject to shareholder approval.

In addition to the Placement, the Company will offer eligible existing shareholders the right to participate in a Share Purchase Plan ( SPP ) to raise up to a further $500,000 at the same price and terms as the Placement.

The Placement of 57,142,858 fully paid ordinary shares (Shares) at $0.035 per Share together with a one (1) for (2) unlisted option with a strike price of $0.055 and an expiry date of 30 June 2022 to sophisticated, professional and institutional investors received strong interest during the Company’s bookbuild. The Placement will be undertaken in two tranches:

• The first tranche of the Placement, comprising 42,857,142 shares ($1,500,000) ( Tranche 1 ) will be issued using the Company's placement capacity under ASX Listing Rules 7.1.

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21,428,571 unlisted options with a strike price of $0.055 and an expiry date of 30 June 2022 will be granted to the Tranche 1 investors subject to shareholder approval which is expected to be obtained at a General Meeting to be held in late July 2021.

• The second tranche of the Placement is subject to shareholder approval which is expected to be obtained at a General Meeting to be held in late July 2021, and is comprised of 14,285,716 Shares ($500,000) and 7,142,858 unlisted options with a strike price of $0.055 and an expiry date of 30 June 2022 (including 7,142,857 Shares and 3,571,428 unlisted options to the Albers Group) ( Tranche 2 Placement ).

The funds raised will be used to advance exploration activities at the Company’s East Kimberley project.

The current aircore drilling program is testing 10 targets under cover. Following completion of the aircore program, Peako plans to commence a scout RC/DD drilling program to test a set of priority hard rock targets.

Peako Chairman Geoff Albers said the proceeds of the capital raising would ensure that the Company was fully-funded to advance its East Kimberley drilling project this field season.

“Investors can look forward to strong exploration news-flow as we execute our drilling campaign aimed at testing multiple targets”.

“I would like to thank the investors who have participated in the Placement and shareholders generally for their continued support.”

Share Purchase Plan (SPP)

In addition to the Placement, the Company will be offering eligible existing shareholders the right to participate in a Share Purchase Plan (SPP) to raise up to a further $500,000. Eligible existing shareholders will have the opportunity to purchase up to $30,000 worth of Shares at the same price as the Placement, irrespective of the size of their shareholding, without incurring brokerage or transaction costs.

The Company may elect to close the SPP early and/or scale-back applications. The SPP is not underwritten. Only shareholders with a registered address in Australia and New Zealand, will be eligible to participate in the SPP.

The SPP will be made available to Eligible Shareholders registered at 5:00pm (EST) on the record date of 11 June 2021 (Record Date).

Up to approximately 14,285,714 shares and 7,142,857 unlisted options will be issued under the SPP.

The terms and conditions of the SPP will be set out in a SPP Offer Booklet that will be released on ASX and provided to Eligible Shareholders in accordance with the timetable.

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Purpose of the Placement and SPP

Peako intends to apply the funds raised from the Placement and SPP for the following:

• To fund exploration work at its East Kimberley project including aircore and scout RC drilling; and

• To fund general corporate activities and capital raising costs.

Indicative Timetable

The indicative timetable for the Placement and SPP is as follows:

Event	Date
SPP Record Date (5pm EST)	11 June 2021
Announcement of SPP	15 June 2021
Opening Date of SPPDispatch of SPP offer document to eligible Shareholders	22 June 2021
Notice of Meeting Dispatched to shareholders to approve Tranche1 Placement Options and Tranche 2 Placement Shares andOptions	28 June 2021
Closing Date of SPP (5PM EST)	13 July 2021
Announcement of Results of SPP	16 July 2021
Issue of Shares and grant of options under SPP	20 July 2021
General Meeting to approve Tranche 1 Placement Options andTranche 2 Placement Shares and Options	28 July 2021
Issue of Tranche 1 Placement Options and Tranche 2 PlacementShares and Options	30 July 2021

• These dates are indicative only and subject to change. The Directors reserve the right to close the SPP early.

ENDS

All the dollar amounts in this announcement are in Australian dollars unless otherwise indicated. For further information, visit: www.peako.com.au or please contact:

Rae Clark

Director, Peako Limited | +61 3 8610 4702 | info@peako.com.au

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