PEAKO LIMITED — Capital/Financing Update 2023

Sep 19, 2023

20 September 2023

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Entitlement Offer – 7 Day Extension to Closing Date

Highlights

• Closing date for Entitlement Offer extended to Tuesday 3 October 2023

• New Shares to be issued at $0.007 with tax benefit of up to 20% available via JMEI credits

• Participating Australian residents will receive JMEI credits that can offset directly against tax payable (or receive an equivalent refund from the ATO)

• Commitments exceeding $200,000 received from largest shareholder group

• 1 for 3 Non-Renounceable Pro-rata Offer to existing shareholders, with opportunity to apply for unaccepted shares under a Priority Shortfall Offer

• One New Option to be granted for every New Share subscribed, exerciseable at $0.02 on or before 30 November 2026

Peako Limited (ASX: PKO) ( Peako or the Company ) refers to its non-renounceable entitlement offer of 1 fully paid ordinary share ( New Share ) for every 3 Shares held by eligible shareholders to raise up to $1.098 million ( Entitlement Offer ). New Shares will be issued at $0.007 per share together with the grant of one New Option for every new Share subscribed, exercisable at $0.02 on or before 30 November 2026.

The Company announces a 7 day extension to the closing date of its Entitlement Offer to 5:00pm on Tuesday 3 October 2023.

The Company has extended the closing date due to delays in the mail, given several eligible shareholders have only received their application forms in recent days. If you have not received your application form please contact the Company directly at info@peako.com.au and we will arrange for your application form to be emailed to you.

The Company hereby advises that the indicative timetable set out in the Entitlement Issue offer is replaced with the timetable set out below.

Key indicative dates*
Announcement of Entitlement Offer	31 August 2023
RecordDatefortheEntitlement Offeron 7pm(AEST)	5 September 2023
Despatch of Offer Booklet and Entitlement and Acceptance Form toEligible Shareholders	8 September 2023
Entitlement Offer opens	8 September 2023
Entitlement Offer closes 5.00 pm (AEDT)	3 October 2023
Issue of New Shares under the Entitlement Offer	10 October2023
Normal trading of New Shares issued under the Entitlement Offer expectedto commence on ASX	11 October 2023

*The above timetable is indicative only and subject to change. The quotation of Shares is subject to ASX approval. Subject to the ASX Listing Rules and Corporations Act and other applicable laws, the Company reserve the right to vary these dates, including the Closing Date, without notice, including extending the period of the Entitlement Offer or accepting law applications, either generally or in particular cases or bringing forward the Closing Date at its discretion. Any extension of the Entitlement Offer will have a consequential effect on the issue date of the Shares.

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Commitments exceeding $200,000 received

The Company is pleased to advise that its largest Shareholder group, representing the holdings of Chairman Mr Geoff Albers and his associates ( Albers Shareholders ), has committed to take up Entitlements under the Entitlement Offer, amounting to an investment of at least $200,000.

JMEI Credits

As announced on dated 5 September 2023, the Company has been granted Junior Mineral Exploration Incentive ( JMEI ) credits for distribution to Australian resident shareholders who acquire new Peako shares (“Eligible Investors”) after 1 July 2023 and prior to 30 June 2024.

Australian resident shareholders that participate in the Entitlement Offer can expect to receive JMEI credits of up to 20% of the amount subscribed which they can offset directly against tax payable or receive a tax refund in the event that no tax is payable.

By way of illustration, assuming the Entitlement Offer is fully subscribed and raises up to approximately $1.098 million (before costs), shareholders participating in the Entitlement Offer may receive JMEI credits of up to $0.0014 (0.14 cents) per New Share. An Australian resident taxpayer subscribing for $10,000 in New Shares would, in this example, receive JMEI credits of $1,400 which would reduce their income tax payable by $1,400 (or, if no income tax was otherwise payable, result in a refund being issued by the ATO for $1,400).

The illustrative JMEI credit of $0.0014 (0.14 cents) per New Share is calculated as shown below:

New Shares Issued via Entitlement Offer (assuming full subscription)	156,910,487
Estimated greenfields expenditure for 2023/24•assuming full subscription	$850,000
•including expenditure already incurred since 1 July 2023
•excluding expenditure funded via additional future equity raising
JMEI Credits (Greenfield expenditure x 25%)	$212,500
JMEI Credit per New Share ($212,500 / 156,910,487)	$0.0014

Should additional equity be raised, other than via the number of shares represented by the current Entitlement Offer, then the JMEI credit per share calculation can be expected to differ including as follows:

• Total JMEI credit available for distribution will increase where additional greenfield exploration expenditure is incurred (up to a maximum allocation of $1,125,000)

• The total number of shares issued in the period 1 July 2023 to 30 June 2024 will increase where new shares are issued in addition to those under the Entitlement Offer

• The resulting JMEI credit/new share would change to reflect the total JMEI credit divided by the total number of shares issued between 1 July 2023 and 30 June 2024

Shareholders are encouraged to seek independent tax advice specific to their personal circumstances before participating in the Entitlement Offer.

This announcement is approved by the Board of Peako Limited

For more information

Rae Clark

Director, Peako Limited | +61 3 8610 4723 | info@peako.com.au | |

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