Extract from Annual Report "While the delivery of the BFS and...

Extract from Annual Report
"While the delivery of the BFS and the rally in the NdPr price have been very positive news for Peak there were some changes made to Tanzanian mining legislation in July 2017 which created some uncertainty and had a negative impact on our share price. The Company sought advice from an in-country international legal firm and concluded that, while the new legislation will result in some significant changes to the regulatory framework in Tanzania governing natural resources, it appeared to be focused on precious and base metal producers with Mining Development Agreements containing historic concessions. Importantly, Peak does not hold any such agreements and therefore is not affected by those particular changes. PAGE 5 Peter Harold Non-Executive Chairman The legislative changes that appear to apply to Ngualla are a 16% minimum Free Carried Interest in the Project and a 1% clearing fee. While these changes will impact the returns to existing shareholders in the Project, the Company believes the impacts will be manageable. Importantly, the Government of Tanzania has always been supportive of Peak and its development plan for Ngualla. The local community and regional authorities are also strongly supportive. The Company will continue to monitor the implementation of these legislative changes and will engage with the Tanzanian government during the mining licence application process to ensure a mutually beneficial outcome can be achieved for the successful development of the Ngualla Project."

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