Peako Limited announced further drill assays from its Phase 1 reverse circulation (RC) drill program at the Eastman PGE Project (Eastman Project or the Project) in the Kimberley region of Western Australia. The new assays are in addition to encouraging PGE assay results from reconnaissance exploration drilling at The Gap Prospect, located within the Eastman Project, which were announced to the market earlier this month. The new assay results from the Phase 1 drilling campaign have confirmed further PGE endowment at the Eastman Project's Euston, Louisa, Grand Central, Brumby and Waterloo prospects, with significant intercepts including: 12m @ 1.45g/t PdEq (1.03g/t 3E) from 46m (PRC0052), including 3m @ 2.72g/t PdEq (2.25g/t 3E) from 52m within 65m @ 0.72g/t PdEq (0.33g/t 3E) from surface.

5m @ 1.45g/t PdEq (1.04g/t 3E) from 77m (PRC0048) within 41m @ 0.73g/t PdEq (0.37g/t 3E) from 56m. 22m @ 1.14g/t PdEq (0.65g/t 3E) from 57m (PRC0045) within 62m @ 0.7g/t PdEq (0.36g/t 3E) from 36m. Peako's 2022 Phase 1 RC drill program, which incorporated 35 drillholes over various prospects for 4,138m, was designed to enable a first-pass test of PGE endowment across the ultramafic stratigraphy, along the 16.5km strike of the Eastman Intrusive Complex.

The drill program involved wide-spaced RC drill fences drilled across eight PGE prospects. Initial results, including those announced on 13 October 2022, have already provided the basis for additional follow-up drilling this year to target higher grade prospects defined to date along the strike of the Eastman Intrusion Complex. Drill assays from wide-spaced sections across five prospects in the Eastern part of the Eastman Intrusion Complex have now been received and define significant PGE zones up to 65m wide that envelope higher-grade `reef zones'.

The shallow drilling to date has shown broad zones of anomalous PGE mineralisation that typically extend from surface to depths up to 100m below surface. In all cases mineralization remains open down dip and along strike. Recent assay results have shown that Palladium and Platinum PGE mineralisation at Eastman is accompanied by rarer PGE metals of Rhodium (Rh), Iridium (Ir), Ruthenium (Ru), and Osmium (Os).

RC samples from selected PGE zones have been submitted for separate analysis using the nickel sulphide (NiS) fire assay analytical technique to quantify the rarer PGE metals following the initial PGE results. The results reported in this announcement will be updated to include the rarer PGE metals when assays become available. Peako anticipates assay results from the Phase 1 RC drilling campaign at the Blackadder and Longhorn prospects within the Eastman Project will be available shortly.

The Company is also planning a follow-up 2,000m Phase 2 RC drilling campaign at the Eastman Project with step out drilling at three prospects directed to target higher-grade PGE mineralisation. This program is anticipated to commence before the end of this month. Of note is the northern ultramafic horizon which forms a relatively continuous zone in excess of 4km.

Only 8 drillholes across 3 drill fence lines were completed over this strike length in the company's first pass RC program with significant PGE mineralisation intercepted on each drill fence. Continuity between the prospects at surface was confirmed by recent tectono-stratigraphic mapping but is yet to be tested by drilling, with mineralisation open between prospects and along strike. The Company reports individual grades for each of the elements palladium, platinum, gold, nickel, copper and cobalt as well as an aggregate 3E value, being the aggregate of Pd, Pt and Au.

Peako cautions that while many PGE explorers report 3E grades, such grades, being aggregates, do not reflect the varying value contribution of each element. As such, 3E PGE mineralisation with a high proportion of Palladium, such as that reported from the Eastman Project, will have a higher value than the same grade 3E PGE mineralisation calculated from a different project that is comprised largely of Platinum, due to the higher value of Palladium per gram compared to Platinum. Accordingly, Peako has calculated Palladium Equivalent (PdEq) grades in order to reflect the potential contributions of the elements to contribute to a resource and assist in providing a concise indication of the potential value of mineralisation at Eastman.

Palladium Equivalent (PdEq) calculation represents the total metal value for each metal, multiplied by the conversion factor, summed and expressed in Equivalent Palladium (PdEq) grade. Given the Eastman Project's stage of development, no metallurgical test work has yet been conducted. However, it is the Company's opinion that all elements included in the metal equivalent calculation (palladium, platinum, gold, nickel, copper and cobalt) have a reasonable potential to be recovered and sold.

Based on the similar Panton deposit, located approximately 185km to the north-east, the Company has assumed metallurgical recoveries based on the Panton deposit model. Metal recoveries used in the palladium equivalent calculations are shown below: Palladium 80%, Platinum 80%, Gold 70%, Nickel 45%, Copper 67.5% and Cobalt 60%. Metal prices used are also shown below: Palladium USD 1,700/oz, Platinum USD 1,300/oz, Gold USD 1,700/oz, Nickel USD 18,500/t, Copper USD 9,000/t and Cobalt USD 60,000/t. Metal equivalents were calculated according to the follow formula: PdEq (Palladium Equivalent g/t) = Pd(g/t) +0.76471 x Pt(g/t) +0.875 x Au(g/t) +1.90394 x Ni(%) + 1.38936 x Cu(%) + 8.23 x Co(%).

Peako cautions that while it considers Panton a similar style deposit to Eastman, actual metallurgical recoveries at Eastman may differ from those at Panton. Further, that its opinion that all elements included in the metal equivalent calculation have a reasonable potential of being recovered and sold relies on defining sufficient mineable economic resources.