Peako : Quarterly Activities Report – 30 September 2016

27 October 2016‌

ASX Limited Level 4

Rialto Tower North 525 Collins Street

MELBOURNE VIC 3000

ASX Code: PKO

QUARTERLY ACTIVITIES REPORT 30 September 2016 PROJECTS Paterson Province Projects, Western Australia

Peako's Paterson Province Projects; the Sunday Creek and Mount Sears initiatives, comprise a ~403km2 tenement package in the Rudall River area of the Paterson Province of Western Australia. The Paterson region is well known for its gold, base metals and uranium potential, hosting Australia's fifth largest uranium deposit at Kintyre. Uranium occurrences are known in both the Sunday Creek and Mount Sears prospects. Both prospects are considered polymetallic.

Peako's tenement package comprises four tenements (one of which is granted and three of which are pending) and was the cornerstone of Peako's portfolio of mineral assets when it first listed on ASX as Raisama Limited in 2009.

During the quarter, Peako executed a Land Access & Minerals Exploration Agreement (Agreement) with the Western Desert Lands Aboriginal Corporation (WDLAC), the representative body for the Martu Traditional Owners of the Sunday Creek project area in Western Australia.

Paterson

Figure 1 Paterson Province Projects Location Map

This Agreement paved the way for the granting of an Exploration Licence over the application area E45/3278 by the Western Australian Department of Mines and Petroleum (DMP) whilst ensuring that the traditional owners' rights and culture will be recognised and respected. The Exploration Licence was granted in early October 2016.

Peako Limited ABN 79 131 843 868

e [e-mail] w www.peako.com.au

Peako's Paterson Province tenement package is shown below.

Figure 2 Paterson Province Tenement Package

Submissions were also made to DMP in relation to the other three application areas (E45/3292, E45/3345 and E45/3477) in relation to both the geological model and environmental management.

The Sunday Creek area was first explored by others between 1978 and 1981. The lack of high resolution data available at that time resulted in extremely limited structural interpretation by previous explorers.

The Sunday Creek Prospect was initially identified as a radiometric anomaly without GPS or high resolution airborne data, with subsequent rock chip samples containing copper, uranium and lead. Radiometric anomalies were also followed up with soil geochemical surveys, which produced low assay responses, mainly due to sand cover. A four-hole reconnaissance drilling program was done at very wide spacing of 4km and a prospective contact of 20km strike length remains largely untested. The four drill holes were generally shallow and possibly

positioned outside the main target zone.

Figure 3 Best Uranium Hits in E45/3278 - Location of Occidental 1980 Drill Holes

The Mount Sears Prospect is located 25 kilometres east of the Sunday Creek Prospect covering an area of 150km2. A known uranium occurrence in the Mount Sears Range was discovered by Occidental Minerals Corporation in 1978 and has an associated airborne radiometric uranium anomaly. An overview of the Mount Sears project geology and historic data indicates that the project area is prospective for copper and uranium.

Peako is in the process of acquiring and assessing past exploration data which will inform and shape its exploration work program for the Sunday Creek project.

SC6 (Cadlao) - Cadlao Oilfield Re-development Project, the Philippines

Peako holds a number of disputed interests in relation to the SC6 Cadlao Oilfield re-development project in The Philippines. No activities were undertaken in relation to these interests during the quarter.

CORPORATE

Peako is proposing to consolidate its share capital on the base of one new share for every twenty shares currently held. Shareholders have been asked to vote on this resolution at the Company's annual general meeting to be held on 24 November.

Rae Clark

Director and Company Secretary

Additional Information Required by Listing Rules 5.3.3 and 5.4.3 Mining Tenements held at the end of the quarter and their location

Western Australia (Paterson Province)
ELA45/3278	Application*
ELA45/3345	Application
ELA45/3477	Application
ELA45/3292	Application

* Granted October 2016

Petroleum Tenements held at the end of the quarter and their location

The Philippines
SC-6 Cadlao	Granted

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:

Farm‐in / Other Agreements

Peako's interests in relation to the SC6 Cadlao Oilfield re-development project are held via its subsidiary Peak Oil & Gas (Australia) Pty Ltd (Peak). The interests are all disputed, as follows:

1. A 25% Cadlao joint venture interest (held in trust by Cadlao Development Company Limited (Cadco)) for Peak or, alternatively, an entitlement to receive $6.7 million as consideration for the buyback of the 25% interest; and

2. A prospective indirect economic interest held by way of a 40% shareholding held by our subsidiary, Energy Best Limited (EBL), in VenturOil Philippines Inc (VenturOil) (itself a 20% interest holder in the Cadlao Joint Venture) and a 5% interest in the Service Contract SC6 Cadlao held by VenturOil in trust for EBL. The 40% shareholding and subsequent associated funding obligation was intended to provide EBL with 75% dividend rights in respect to its 40% shareholding.

3. An aggregate 80% interest in overriding royalty interests relating to 3.3% of production held by Peak Royalties Limited

4. A loan receivable from VenturOil for US$736,188

Farm‐out Agr ee ments

Nil.

Benef icial perc entage in ter est s in farm ‐in or farm ‐out agreements acquir ed or disposed o f d uring the Quarter:

Nil.