Peako : Quarterly Activities Report – 31 March 2017

27 April 2017

ASX Limited Level 4

Rialto Tower North 525 Collins Street

MELBOURNE VIC 3000

ASX Code: PKO

QUARTERLY ACTIVITIES REPORT 31 March 2017 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 the granted Exploration Licence E45/3278, and three at the applications stage. They were the cornerstone of Peako's portfolio of mineral assets when it first listed on ASX as Raisama Limited in 2009.

Exploration activities have commenced with the acquisition of past exploration data, the assessment of which will inform and shape our exploration work program for the Sunday Creek project.

Paterson

Figure 1 Paterson Province Projects Location Map

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 have been 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, with discussions ongoing.

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 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 spacing of 4km and a prospective contact of 20km strike length is considered to remain largely untested.

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.

After numerous years of low uranium prices, there are signals that uranium prices may recover. Uranium demand is forecast to increase in the coming years; more than 60 new nuclear reactors are under construction, 160 are planned and a further 300 are porposed1. The low uranium prices of recent years have resulted in reduced uranium exploration activities, which, combined with potential increased demand for uranium, can be expected to result in a rising market for uranium.

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. In December 2016 the arbitration commenced by Peako against Cadlao Development Company Limited (Cadco) and Blade Petroleum Limited (Blade) in relation to the Cadco Buy-back Right was terminated by the Arbitrator at Peako's request. Cadco had failed to respond to any communication from Peako or the Arbitrator for more than two years and Peako recently learned that Blade Petroleum Limited is in liquidation. As such, the arbitration was considered to have little prospect of a meaningful outcome. Peako reserves it rights in relation to the Cadco Buy-back Right, but at this stage assesses there to be little likelihood of realizing value for that Right.

Rae Clark

Director and Company Secretary

1 http://www.world-nuclear.org/information-library/current-and-future-generation/plans-for-new-reactors- worldwide.aspx

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	Granted
ELA45/3345	Application
ELA45/3477	Application
ELA45/3292	Application

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 Agreements

Nil.

Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during the Quarter:

Nil.