Peako : Quarterly Activities/Appendix 5B Cash Flow Report

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29 July 2022

ASX:PKO

Quarterly Activities Report 30 June 2022

Highlights

• 4,500m RC drill program to test the PGE endowment of ultramafic targets at the Eastman Intrusion commenced in first week of July.
• Field component of a tectono-stratigraphic architectural study on the Eastman Intrusion Complex was completed and has defined a new framework and model for PGE mineralisation
• Primary focus for the 2022 work programs is on the Eastman Intrusive Complex, targeting a potentially major PGE resource discovery.
• Reconnaissance soil sampling over previously untested ultramafic intrusives at Eastman South is well advanced.

PROJECTS

East Kimberley Project

Tenement Position

Peako's exploration focus is its large ground-holding in the East Kimberley region of Western Australia totaling 4,029 km2 (Figure 1).

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Figure 1 Peako's East Kimberley Tenement Package

Previous Exploration

Despite sporadic campaigns over the past 50 years, historical exploration within the area of Peako's tenements, primarily guided by occurrences of surface gossan and geochemical anomalies, has provided consistent encouragement for 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 and complex stratigraphy/structure, despite highly favourable host rocks, structure and known mineralisation across the area.

Peako's exploration strategy is underpinned by the application of data-driven science to define and prioritise targets for efficient field testing programs necessary for economic discovery.

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Diverse Opportunities

Peako's tenements host a diverse Palaeoproterozoic 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 Intrusive Belt (c. 1850-1835 Ma) are well developed.

The geological diversity within Peako's tenement package has driven the search for a wide range of commodities, with the Koongie Park Formation having demonstrated prospectivity for base (Cu-Pb-Zn) and precious (Ag, Au) metals mineralisation, whilst the Lamboo Ultramafic belt has demonstrated prospectivity for base (Ni, Cu) and precious metal (Au, PGE and REE) mineralisation.

Eastman PGE Project

Peako's Eastman Intrusion is a large underexplored intrusive complex that Peako considers prospective for a major PGE resource.

The Eastman Intrusion is located within the Central Zone of the Halls Creek Oregon, where an array of mineralised layered mafic-ultramafic intrusive complexes are defined with an established mineral endowment (refer Figure 1).

Known endowment from layered intrusions in the Halls Creek Oregon includes:

• Savannah - 15Mt 1.40% Ni, 0.62% Cu
• Copernicus - 0.825 Mt @1.24% Ni, 0.81% Cu
• Panton - 6.9 Moz 3E PGE resource

Recent drilling by Pantoro at the Lamboo Intrusion (Figure 1) has also defined wide PGE intercepts, with resource drilling currently in progress.

Eastman Intrusion

The Eastman Intrusion is interpreted to extend along strike for approximately 16.5km; divided into an Eastern and Western zone by a granite intrusion. The Eastern Zone extends for ~9.4km with 2.5km under cover, and the Western zone for 7.1km, mostly under cover.

The Eastman Intrusion is a layered mafic to ultramafic intrusive complex comprised predominately of pyroxenite, anorthosite and gabbro. The pyroxenite forms the basal unit with the gabbro and anorthosite overlaying it. The sequence has been variously folded and faulted in places resulting in structural repetition of the sequence. Having multiple layers of the sequence adds considerably to the prospectivity of the intrusive complex.

Widespread anomalous PGE intercepts from sparse, wide-spaced historical drilling over the 16.5km extent of the Eastman Intrusion indicate an extensive PGE mineralised system (refer Figure 2). Historical exploration was focused on the outcropping ~6.9 km length of the intrusive complex, with a bias to evaluating relatively short discontinuous chromitite lenses within the sequence. PGE mineralisation however is shown to be stratabound within the ultramafic intrusives, unlike the discontinuous strataform chromite-rich layers.

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Figure 2 Eastman Intrusion with interpreted geology and location of historical drillholes

Analogue Intrusions

The Eastman Intrusion appears geologically similar to the nearby Panton and Lamboo Intrusions. The three intrusive complexes each have the same ultramafic-mafic rock types and similar intrusion sequencing (refer Figure 3 - scale common to all). Moreover, historical work at all three intrusive complexes has focused on stratiform chromite layers in the ultramafic rocks.

Figure 3 Panton, Lamboo and Eastman Intrusions

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Recent drilling by Future Metals NL at Panton, and Pantoro Limited at Lamboo, have defined stratabound PGEs across mafic-ultramafic rocks at both complexes. Significant intercepts from recent drilling at Panton and Lamboo include:

Panton Intrusive Complex Future Metals (ASX:FME)

• 39.48m @ 1.20 g/t PdEq (0.81 g/t 3E & 0.17% Ni) from 37.1m1
• 20.6m @ 2.14 g/t PdEq (1.79 g/t 3E & 0.20% Ni) from 39m1
• 30.6m @ 1.21 g/t PdEq (0.75 g/t 3E & 0.21% Ni) from 83m1

Lamboo Intrusive Complex Pantoro (ASX:PNR)

• 31m @ 2.42 g/t 3E from surface2
• 38m @ 2.34 g/t 3E from 1m2
• 100m @ 1.10 g/t 3E from surface, inc. 66m @ 1.34 g/t 3E from surface3

Definition of PGEs across mafic-ultramafic rocks at the Panton and Lamboo intrusions presents a different evaluation space for the Eastman Intrusion with a high level of upside, as previous exploration at the Eastman Intrusion focused on the discontinuous stratiform chromitite lenses rather than targeting the wider more extensive PGE-rich stratabound mineralisation that has become recognised within the mafic-ultramafic layers of the intrusive complex.

2022 Field Campaign

RC drilling

Peako received Programme of Work (POW) approval for its reverse circulation (RC) drilling program and completed all groundwork preparations during the Quarter. The drill rig arrive at the Eastman PGE Project in the first week of July and commenced drilling which is currently ongoing.

Peako's planned 4500m RC drill program was designed to complete first pass wide spaced testing across the Eastman Intrusion's 16.5km strike length to define zones with higher-grade stratabound PGE-rich mineralisation within the ultramafic complex. The configuration of the drill program incorporate multiple wide-spaced drill fences to test PGE endowment of the complete ultramafic stratigraphy (refer Figure 4).

The drill program also includes a number of targeted drill sections defined from new and historical data including select areas with elevated PGE soil and rock indicators at surface (refer Figure 4). Additional drill targets include testing of chromite-rich ultramafic layers across the intrusive complex as well as untested soil and rock anomalies, and VTEM target zones.

1. Future Metals NL, 8 March 2022
2. Pantoro Limited, 6 September 2021
3. Pantoro Limited, 15 November 2021

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