Peak Minerals : Copper Mineralisation Extends Across Earaheedy Project

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ASX ANNOUNCEMENT

ASX Codes: PUA, PUAOD

02 December 2021

Copper Mineralisation Extends Across Earaheedy Project

Highlights

• Drilling confirms and extends historic copper mineralisation at Cork Tree and Merah Prospects
• 26 air core holes drilled totaling 1,280m, intersections of particular interest were:

• • 3m @ 1.57% Cu from 86 m to EOH
  • • Including 1m @ 2.16% Cu
  • 4m @ 1.2% Cu from 21m (EHAC0024)
  • • including 1m @ 4.12% Cu
  • 6m @ 0.35% Cu from 27m (EHAC0022)
  • 3m @ 0.31% Cu from 52m (EHAC0024)
• A mineralisation envelope (1.1km by 2.0km) defined by historic sampling programs has been extended to the south by 1km and indicates proximity to primary mineralisation.

Figure 1. Peak Minerals 2021 drilling maximum Cu intercepts with historic drilling max Cu intercepts.

Peak Minerals Limited

Registered Office: Level 4, 100 Albert Road, South Melbourne VIC 3205

Email: [e-mail]

ACN: 072 692 365 www.peakminerals.com.au

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Peak Minerals Limited (ASX: PUA) (Peak Minerals or the Company) is pleased to announce results from its drill program at the Earaheedy Project completed in June 2021. The purpose of the drill program was to:

1. Test previously identified, near surface, copper anomalism and
2. Test the potential for basement mineralisation at the Cork Tree and Merah Prospects.

A total of 26 holes were drilled with a final meterage of 1,280m (See Appendix A: Table 1). Drilling was aimed at stepping out from recorded historic mineralisation, except for two holes which were drilled within 10m of known mineralisation to confirm grades. Stepping out from the mineralised envelope yielded significant results; 1.57% copper in EHAC0012 from 86m (See Figure 1). The mineralisation is hosted in sediments with chert horizons. The full extent of this mineralisation at depth is not known as the hole ended early when the rig was unable to penetrate further. Summary of intersections are shown in Table 1.

Copper mineralisation in this area is interpreted to be part of a larger system. Sedimentary copper systems are known to have haloes of lead-zinc mineralisation away from the main heat ('copper') source; Mt Isa in Queensland is an example of this. This is supported within the Earaheedy Basin by the recent discovery of Chinook by Rumble Resources (ASX: RTR), 80km to the east (See Figures 3 and 4 which show interpreted geology).

CEO Jennifer Neild commented:

"These assay results are encouraging. We wanted to first confirm the historic results and then test the extent of the secondary copper mineralisation. The drilling expanded the copper envelope an additional 1km to the south but seeing an intersection of 3m at 1.57% Cu from 86m depth is exciting stuff. There is copper beneath the secondary copper at surface. Today, geologists have a more wholistic view of these mineral systems, we don't ignore evidence like this. We need to analyse geochemistry and map the structures which drive sediment hosted systems."

Table 1. Summary of mineralised intersections from 2021 drill program >0.20% Cu.

Hole ID		From (m)	To (m)	Interval	Cu %	Pb (ppm)	Zn (ppm)
EHAC0007	35	36	1	0.23	17	597
EHAC0012	86	89	3	1.57	5	110
		including		1	2.16	5	135
EHAC0022	27	33	6	0.35	18	709
EHAC0024	21	25	4	1.20	37	102
		including		1	4.12	16	41
		29	30	1	0.31	26	77
	52	55	3	0.31	49	392

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Overview

The Earaheedy Project is located 28km southeast of Degrussa Copper-gold Mine. The tenure comprises the western extremity of the Earaheedy basin and consists of the Cork Tree and Merah Prospects. Rumble Resources (ASX:RTR) are currently drilling out their Chinook Pb-Zn-Ag deposit approximately 80km to the east within the same basin.

The Cork Tree Prospect was discovered by WMC (BHP) in the 1970's. Historic diamond drilling completed by CRA, see ASX release dated 21 September 2020 - Option to acquire highly prospective copper portfolio in WA and Equity Placement to raise $2,000,000, intersected quartz-sulphide veins with anomalous copper (see Figure 2). Peak Minerals have given the prospect depth one kilometer to the south.

Figure 2. Mineralisation shown in orange over historic drilling and recent Peak Minerals drilling. Extension of copper oxide as dashed line.

In 2021, the Company's geologists prospected the Earaheedy Project and came across gossans with visible copper mineralisation as malachite. This reinvigorated interest and Peak is challenging the exploration strategy that had previously been defined years before.

The Model

Based on the available historic data, the secondary copper on surface is interpreted to have migrated up basin structures (growth faults) and created copper rich silica caps on surface. The lack of anomalous Pb, Zn and Ag suggests that the western part of the Earaheedy basin is closer to this interpreted heat source, where Cu mineralisation will precipitate. The Pb, Zn and Ag minearlisation stays in solution for longer and travels along planes of stratigraphic weakness forming away from this heat source (Figure 3 and 4).

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Figure 3. Earaheedy conceptual cross-section showing relationship between mineralisation and structures.

Figure 4. Current interpretation of geology.

Mineralisation

Drillhole EHAC0012 has extended mineralisation over 1km to the south from historic drilling (Figure 1 and Figure 2). Mineralisation consists of malachite within quartz and ironstone. This drillhole terminated in mineralisation, due to the capability of the rig, and the hole will have to be

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extended in a future drill program. Drillhole collar information is summarised in Appendix A: Table 1.

The primary source of the widespread secondary copper mineralisation is currently unknown but is interpreted to be related to the Sweetwaters Well Member of the Yelma Formation (Figure 4). The secondary copper mineralisation occurs in pockets associated with quartz ironstone identified as the overlying Frere Formation. This mineralisation is focused along faults interpreted from the detailed gravity acquired by the Company in February 2021.

Rock Chip Sampling

Rock chip sampling completed in May 2021, confirmed a gossan zone south of the Cork Tree Prospect that is defined by a veined and brecciated outcrop (Figure 2). This zone is historically untested by drilling and returned anomalous copper values up to 628ppm Cu (see Appendix A:

Table 2). An east-west drill line across the anomaly returned anomalous pathfinder geochemistry with low level copper values. Further interpretation of this geochemistry is required.

Additional Work

The Company is keen to develop its exploration model through a systematic work approach.

The extension of hole EHAC0012, which terminated in copper mineralisation may be the key to unlocking primary sediment hosted Cu mineralisation.

Further work on this project will be refined by electromagnetic (EM) and/or induced polarisation (IP) surveying to determine the potential for basement mineralisation and possible depth to source. There is scope to apply for a co-funded drill program as little is understood of the western extent of the Earaheedy basin and drilling conditions require either an RC or diamond drill rig.

Competent Person's Statement

The information in this announcement that relates to Exploration Results is based on information compiled by Ms Barbara Duggan, who is a Member of the Australian Institute of Geoscientists. Ms Duggan is employed by Peak Minerals Limited. Ms Duggan has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she 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'. Ms Duggan consents to the inclusion in this announcement of the matters based on her information in the form and context in which it appears.

The information in this announcement that relates to Exploration Results is extracted from the Company's ASX announcement ASX release dated 21 September 2020 - Option to acquire highly prospective copper portfolio in WA and Equity Placement to raise $2,000,000. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore