PEAKO LIMITED — Interim / Quarterly Report 2020

Jan 27, 2021

Quarterly Activities Report 31 December 2020

==> picture [108 x 88] intentionally omitted <==

HIGHLIGHTS

• 10 high priority areas have been targeted on the Eastman E80/4990 tenement for assessment and drilling during the upcoming 2021 field season.

• The priority targets were defined using Peako’s comprehensive data library integrated with recent field work, incorporating a range of encouraging features such as anomalous gold geochemistry (soil, rock, drilling), geophysics (VTEM, magnetics), prospective geology and structure, as well as encouraging satellite SWIR alteration indicators.

• Assay results from reconnaissance rock chip sampling in late 2020 also re-confirmed both gold and base metal prospectivity across several of these target areas and included rock chip results with grades up to 3.7 g/t Au.

• Acquisition of the remaining 40% interest in E80/4990 Eastman Tenement, to complete a 100% acquisition.

• Western Australian Government EIS Round 22 co-funded Drilling Grant award of up to $170,000

• Planning and staffing for Peako’s 2021 field season that will incorporate aircore drilling of high priority targets, regional mapping of northern tenement and RC drill testing of key prospects later in the field season, pending drill rig availability.

PROJECTS

East Kimberley Copper-Gold Project

Peako’s exploration focus is its large consolidated ground-holding across five exploration tenements in the East Kimberley region of Western Australia incorporating an a 1,999 km[2] area (Figure 1) comprising two granted tenements (E80/4990 and E80/5182) and three areas under application (E80/5346, E80/5472 and E80/5220).

Systematic exploration across the East Kimberley has largely lagged behind many of Australia’s Proterozoic provinces with past exploration programs broadly characterised by sporadic campaigns incorporating numerous explorers across multiple commodities and fragmented, non-contiguous tenement holdings over the past 50 years. Historical exploration, primarily guided by occurrences of surface gossan and geochemical anomalies, has provided consistent encouragement of the area’s economic potential. At the same time, discovery efforts have been consistently hindered by a mix of cover, subcrop, poorly understood regolith, deep weathering, complex stratigraphy/structure, despite highly favourable host rocks, structure and known mineralisation across the area. A substantial focus of Peako’s activities has centred on realising the value of the historical datasets within our consolidated tenement package by aligning this data into a validated, nonfragmented framework. This approach has maximised value and constrained geochemical, geological, and structural frameworks whereby targeted and effective exploration can springboard. Our integrated SQL-based data platform, as well as recent data satellite and reconnaissance rock chip datasets, are pivotal to the definition of robust high quality targets for testing in the approaching field season.

Page 1 of 10

==> picture [489 x 356] intentionally omitted <==

Figure 1 Peako’s East Kimberley tenement holdings and location of major gold deposits and gold occurrences (DMIRS database).

Geological Setting

The Eastman (E80/4990) and Wirana (E80/5182) tenements host a diverse Paleoproterozoic succession that is widely intruded by multiple granitoid phases and deformed by multiple orogenic episodes. The area represents the western-most window of the Halls Creek Orogen where volcanic successions of the bimodal Koongie Park Formation volcanic belt (c. 1845 Ma) and the Lamboo Ultramafic ( LUM ) intrusive belt (c. 18501835 Ma) are well developed. Moreover, recent satellite imagery and rock geochemistry define an array of multistage, poorly defined and constrained granitoid intrusions across the tenements that include granite, granodiorite, diorite, monzogranite and granophyre. The geological diversity within the tenement package has driven the search for a wide range of commodities by present and past explorers. The Koongie Park Formation ( KPF ) has demonstrated prospectivity for base (Cu-Pb-Zn) and precious (Ag, Au) metals with postulated mineralisation styles varying from VHMS to SVAL-hybrid styles, to epithermal and skarnoid mineralisation associated with widespread carbonate facies in the KPF stratigraphy. In addition, mafic to ultramafic intrusions of the Lamboo Ultramafic complex have demonstrated prospectivity for base metal (Ni, Cu) and precious (Au, PGE) metals with potential mineralisation styles varying across magmatic, cumulate to intrusion or orogenicrelated gold associated with deep crustal-tapping fertile structures.

Peako’s most recent tenement application E80/5520 is located 35km east of Halls Creek (Figure 1) in an area that has undergone minimal historical exploration due to widespread Cenozoic cover sequences across the tenement. Interpreted geology identifies fertile LUM rock types with known gold, nickel and base metal prospects in exposed areas adjacent to the tenement. A major 500km long NE-SW trending fault system (Springvale-Billabong Fault) is interpreted in central portions of the E80/5520 tenement, and could provide a splayed structural setting prospective for structurally localised gold systems similar to those observed at Nicholsons gold mine proximal to the Nicholsons shear zone some 20 kms to south (refer Figure 1).

Page 2 of 10

Recent Activities

Activities by Peako in 2018 and 2019 focussed on the evaluation of base metal potential at the known Landrigan and Eastman prospects. Programs of work incorporated Induced Polarisation (IP) and RC drill testing of defined IP target zones supported by a Round 19 Exploration Incentive Scheme co-funded drilling grant from the Western Australian government. Peako’s 2019 RC drilling program incorporated a total of 15 holes for 2,398m with VHMS/SVAL-style mineralisation confirmed at Landrigan with assay intercepts including: 6m at 6.52% Cu 27.27g/t Ag and 1.16g/t Au (PLRC004), and 15m at 1.04% Cu, 8.88g/t Ag and 0.38 g/t Au including 6m at 1.61% Cu, 7.23g/t Ag and 0.62g/t Au (PLRC011). Key results from 2019 RC drilling was delineation of an endowed mineralized structure with anomalous Cu-Au-Ag over a 200m strike with the structure remaining open in dip and strike. 2019 RC drill results also underpinned our improved geological and structural model of the KPF at Landrigan and Eastman but also refocussed Peako’s efforts in 2020 to a phase of digital capture of data coincident to delays in planned field work due to the outbreak and duration of the ongoing global Covid-19 pandemic. Our philosophy to capture more than five decades of historical multi-faceted, multicommodity geological data over the E80/4990 tenement was embraced to maximise our knowledge of geology and potential mineralisation models to fully realise the prospectivity of the area and to define and prioritise high quality robust targets for efficient field testing programs aimed at economic discovery in the upcoming field season.

Substantial efforts over the last year has focussed on the extraction and capture of assay and spatial geology data from historical reporting and maps. These datasets are now being migrated into an SQL database that will empower critical streamlined work flows for all forward data capture, GIS and 3D visualisation software and will maximise data integration to drive our dynamic geological understanding across the tenement areas.

A key outcome of data compilation work has been the recognition of a latent gold potential across the Eastman E80/4990 tenement (Figure 2) widely overlooked by past explorers. For many past explorers, gold was peripheral to their base metal and PGE exploration focus at the time, where many historical explorers did not analyse soil, rock or drill samples for gold. The recognition of this latent gold potential across Peako’s Eastman E80/4990 tenement led to the commencement of our “Golden Opportunities” initiative.

==> picture [489 x 270] intentionally omitted <==

Figure 2 Historical gold assay including rock, soil and drillhole on E80/4990 that demonstrate the latent gold potential of the area.

Page 3 of 10

Potential gold prospectivity on the Eastman E80/4990 tenement is widely validated by a known gold signature that is particularly pronounced at the Landrigan and Eastman prospects and across the Lamboo Ultramafic sequence. Examples include Peako’s 2019 RC drilling results such as PLRC004 with 6m at 1.16g/t Au and 27.27g/t Ag and PLRC001 with 7m at 1.1 g/t Au and 7.51 g/t Ag, as well as historical rock chip results that have returned Au grades up to 11.7g/t Au. Petrology results from 2019 RC samples at Landrigan also define at least some of the gold to occur as free grains hosted by deformed quartz veins.

Rock Chip Results

During the quarter a short reconnaissance field program was completed to validate a number of defined target areas largely overlooked by past explorers on tenement E80/4990. Rock samples were analysed for Au and a multi-element suite of 33 elements using the Intertek laboratory in Perth. Reconnaissance rock chip sampling results were highly encouraging and confirmed both the gold and base metal potential at several target areas (refer announcement dated 13 November 2020 and Figure 3). Results included:

• Gossanous quartz vein stockwork with 3.7 g/t Au and 2.3 g/t Ag,

• Gossan outcrop with 0.9 g/t Au, 1.6 g/t Ag and 14.3% Cu

• Altered ultramafic with 0.5 g/t Au and 0.5% Cu

• Gossan outcrop with 123 g/t Ag and 74.1% Pb

• Altered porphyry with 30.1 g/t Ag and 3.2% Cu

• Altered porphyry with 25.5 g/t Ag and 1.2% Cu

Multielement geochemistry also defined a suite of altered intrusions at many targets areas associated with anomalous metal values. Further work is required to establish the fertility of the various intrusions and affiliation, if any, to gold and base metal mineralisation potential.

==> picture [489 x 244] intentionally omitted <==

Figure 3 Outcrop and rock chip samples from the recent field sampling program including: A) Location of sample T56_001 with 3.7 g/t Au & 2.3 g/t Ag (Target 56), B) Cu-bearing gossanous outcrop (Target 50 including sample T50_003 with 0.1 g/t Au, 14.4 g/t Ag & 20.0% Cu, and Pieces of gossanous Cu-oxide bearing samples (C & D) from Target 16 that include C) T16_010 @ 0.4 g/t Au, 2.0 g/t Ag & 5.0% Cu, and D) T16_014 @ 0.9 g/t Au, 1.1 g/t Ag & 14.3% Cu.

Page 4 of 10

Priority Targets for Aircore Drill Testing

A suite of ten high priority target areas are defined on the Eastman tenement for early follow-up and drill testing during the impending 2021 field season (Figure 4). Target areas are defined from a mix of favourable geology, structure, demonstrated anomalism in rock and/or soil geochemistry, outstanding geophysical targets (VTEM and magnetics) amongst the mix. Furthermore, the targets can be divided into two types based on either KPF or LUM host rock sequences, as follows:

• KPF (six targets) within bimodal volcanic to volcaniclastics with interbedded carbonate & ironstone facies intruded by multistage, multi-compositional porphyry intrusions with targets having potential for base metal and gold endowment.

• LUM (four targets) affiliated with structurally complicated peridotite to pyroxenite cumulate layers dissected by large cataclastic quartz vein sulphide-bearing shear zones intruded by multistage granitoid/porphyry. Ultramafic units have ubiquitous soil gold anomalism (Au >7 ppb) potentially affiliated with fertile crustal structures.

The spread of priority targets across E80/4990 represent a suite of targets at different stages in our exploration pipeline where some targets have little to no previous exploration, whilst other targets are advanced with previous detailed mapping, geochemistry, drilling, magnetics-radiometrics and an array of geophysical targets including VTEM and TEM.

==> picture [489 x 271] intentionally omitted <==

Figure 4 High priority target areas on the E80/4990 Eastman tenement for immediate follow up in the 2021 field season.

Wirana E80/5182

The Wirana (E80/5182) tenement incorporates an area of 421.9 km2 contiguous to Peako’s Eastman (E80/4990) tenement (Figure 1). Regional geology and recently completed Worldview-3 imagery over the tenement confirm the area to contain prospective host rock sequences including LUM, Marboo Formation and numerous granitoid intrusions of undefined affiliation. The tenement has a widespread suite of historical base and precious metal prospects at Glidden, Pond Spring, Taylor River, Lilyhole, Mt Ramsay as well multi-prospect fields at Hells Gates and Me No Savvy; the latter contained within Peako’s E80/5472 application (Figure 5). The complete area has only undergone precursory work by historical explorers.

Page 5 of 10

During the quarter Peako initiated precursory interpretation of worldview and a literature review over the Wirana tenement, with data capture and full interpretation of this area scheduled to be complete prior to field programs in April. The outcomes of our interpretation will prioritise areas for a phase of reconnaissance field checking, mapping and rock sample program early in the field season, where subsequent aircore or drilling exploration activities can be rolled out to priority target areas later in the field season, as appropriate.

==> picture [489 x 393] intentionally omitted <==

Figure 5 Wirana E80/5182 tenement area and location of key historical prospects.

WA Government EIS Award

During the quarter Peako was awarded a Western Australian Government Exploration Incentive Scheme (“EIS”) Round 22 grant to co-fund further exploration drilling at its East Kimberley Copper-Gold Project. The EIS grant is for an amount of $170,000, structured as a contribution of up to $150,000 towards 50% of direct drilling costs to be incurred during the twelve months ending 31 December 2021 and up to $20,000 towards mobilization costs.

This Round 22 EIS grant is additional to Peako’s Round 21 EIS grant of $150,000 for drilling undertaken in the twelve months to 30 June 2021. Peako has a total of $320,000 available through co-funded grants for drilling purposes.

Page 6 of 10

Forward Work Program & 2021 Field program

Planning and arrangements are currently underway for Peako to undertake an intensive exploration campaign during the 2021 field season to test our most robust targets. Peako’s aim is to have continuous presence in the field throughout the 2021 field season and advance its East Kimberley holdings as rapidly as feasible towards discovery.

Field work is to commence following the wet season, as soon as access is possible around early to mid April. Peako’s 2021 field season will be configured in two parts with the first half incorporating final target ground validation, relogging of located historical diamond core, preparatory work and aircore drilling of key target areas. During this early phase, between 6000m to 8000m of aircore drilling is planned to test the priority targets defined on Eastman E80/4990. At the same time reconnaissance mapping and rock sampling of the northern Wirana tenement is planned to define targets for drill (aircore/RC) follow-up later in the field season.

The later portion of the field season is being planned for RC and/or diamond drill testing of successful phase 1 targets pending availability of a drill rig. In the target pipeline, advanced targets such as the Louisa prospect that incorporate a wide range historical datasets (geochemistry, geophysics and drilling) could potentially represent walk up drill targets once the field checking validation is complete.

Paterson Province, Sunday Creek

Peako’s Broadhurst (Sunday Creek) Project tenement is located in the Rudall River area of the Paterson Province of Western Australia (Figure 6). Peako also has three long standing applications for exploration licences located close to its Broadhurst Project tenement. Historical geological mapping indicates bedrock geology of the project area is largely carbonaceous shales and siltstones of the Broadhurst Formation, and lesser quartz sandstone and siltstone of the underlying Coolbro Sandstone Formation.

==> picture [425 x 316] intentionally omitted <==

Figure 6 The Sunday Creek - Broadhurst tenement area in the Paterson Province, Western Australia.

Page 7 of 10

The Broadhurst tenement is under-explored and hosts an array of encouraging features that indicate the potential of the area for Nifty (Cu) or Maroochydore (Cu-Co) style mineralisation. Historic exploration has been minimal and fragmented, comprising of a ‘revolving door’ of explorers divided in commodity focus between Base Metals or Uranium. Only very limited, precursory drilling has been completed on the tenement (a total of 6 holes for 1,243m) all testing for Uranium, with base metal mineralisation targets in the Broadhurst Formation remaining untested.

CORPORATE

During the quarter Peako raised a total of $1,010,171 before costs via a fully subscribed pro-rata nonrenounceable rights issue. 31,567,848 new shares were issued and 31,567,848 options exercisable at $0.055 with expiry date of 30 June 2022 were granted.

During the quarter Peako increased its interest in the Eastman tenement E80/4990 (Figure 1) to 100%. Having earned a 60% interest in the tenement under a Farmin and Joint Venture Agreement, Peako agreed to buy the remaining 40% interest in the tenement from Sandrib Pty Ltd for consideration comprising a payment of $90,000, issue of 2,647,059 shares in Peako and a grant of a 0.10% (one tenth of a percent) net smelter royalty capped at $500,000.

REFERENCES

The information in this report that relates to Exploration Results was previously reported in ASX announcements listed below. The Company is not aware of any new information or data that materially affects the information included in each relevant market announcement.

Further details can be found in the following Peako ASX announcements.

13 November 2020		East Kimberley Exploration Update
20 August 2020		East Kimberley Exploration Update
30 April 2020		Quarterly Activities Report
30 January2020		Further Sampling Confirms Cu-Au-Ag Drill Results at Landrigan
28 November 2019		East Kimberley Drilling Results Extend Known Copper-Gold Mineralisation
30 September 2019		Extension of East Kimberley Copper-Gold RC Drilling Program
23 September 2019		RC Drilling Commences at East Kimberley Copper-Gold Project
23 May2019		Drilling Grant Awarded
28 November 2018		Projects Update
31 October 2018		Quarterly Activities Report
15 August 2018		IP Geophysical Survey to Commence Shortly at Eastman

Page 8 of 10

Competent Person Declaration

The information in this report that relates to Exploration Results is based on information compiled or reviewed by Dr Darryl Clark who is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) . Dr Clark is a director of and consultant to Peako Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Clark consents to the inclusion in this report of the matters based on information provided by him and in the form and context in which it appears.

==> picture [100 x 36] intentionally omitted <==

Rae Clark, Director 28 January 2021

Page 9 of 10

Additional Information Required by Listing Rules 5.3.3 and 5.4.3

Tenements held/applied for at the end of the quarter and their location

Tenement	Peako interest	Tenement status
Western Australia(East Kimberley Region)
E 80/4990	100%	Granted
E 80/5182	100%	Granted
E 80/5346	100%	Application
E80/5472	100%	Application
E80/5520	100%	Application
Western Australia(Paterson Province)
E 45/3278	100%	Granted
E 45/3345	100%	Application
E 45/3477	100%	Application
E 45/3292	100%	Application

Tenements acquired during the quarter and their location

Nil.

Tenements disposed of during the quarter and their location

Nil.

Beneficial percentage interests held in farm‐in or farm‐out agreements at the end of the Quarter:

E80/4990 – Peako increased its interest in the Eastman tenement E80/4990 to 100% following completion of the transaction with Sandrib Pty Ltd announced on 16[th] October 2020. Having earned a 60% interest in the tenement under a Farmin and Joint Venture Agreement, Peako agreed to buy the remaining 40% interest in the tenement from Sandrib Pty Ltd for consideration comprising a payment of $90,000, issue of 2,647,059 shares in Peako and a grant of a 0.10% (one tenth of a percent) net smelter royalty capped at $500,000.

Payments to related parties during the quarter included in Appendix 5B – Quarterly Cash Flow Report

Payments were made to directors and their associates during the quarter totalling approximately $278,000. Payments were for contracted services including consulting fees, office costs and administrative support.

Page 10 of 10