Peako : 2021 Field Campaign Commenced

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ASX RELEASE

19 April 2021 | Page 1 of 6

2021 Field Campaign Commenced

Highlights

• Peako's team is in the field at its flagship East Kimberley Project to test priority prospects
• The focus is on 29 priority targets within 9 prospect areas encompassing multiple styles of mineralisation across two distinct host rock sequences,
• 6,000+m Aircore program scheduled to start in May 2021
• Drilling supported by EIS co-funded drilling grant

Peako Limited (ASX: PKO, Peako) is pleased to advise the commencement of its 2021 field campaign at its East Kimberley gold-copper project. Peako's team have mobilised to the project area and are undertaking final target ground validation and preparatory work for our Phase 1 aircore program which is scheduled to commence in May 2021.

Figure 1 Outcrop with pervasive malachite-clay alteration at the Eastman-2 target area in the Koongie Park Formation.

Peako Limited ABN 79 131 843 868 t [phone] e [e-mail] w www.peako.com.au

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Peako has defined 29 highly prospective drilling targets across nine prospect areas on its Eastman (E80/4990) tenement for final field checking before subsequent drill testing.

The prospects have been defined using our extensive data library integrated with 2020 field work and newly acquired spectral imagery data suites. Targets incorporate a range of encouraging geological features including anomalous gold geochemistry (soil, rock, drilling), geophysics (VTEM, magnetics), prospective structure, as well as encouraging satellite spectral imagery alteration indicators.

The first phase of our 2021 field campaign incorporates field checking validation, and tightening of target zones, to be followed by initial aircore drilling of the prioritised targets, scheduled to commence in May 2021. Drill testing of between 6,000m to 8,000m will be spread across priority targets with nominal line spacings between 100m to 200m.

Subsequent RC drilling is planned for later in the field season to test new and existing high priority targets where historic datasets have defined 'walk up' drill-ready targets as well as targets with encouraging aircore results from the May aircore program.

Peako's 2021 aircore and RC drilling activities are supported by two Western Australian Government Exploration Incentive Scheme (EIS) co-funded drilling grants totalling $320,000. The Round 21 EIS grant is for an amount of$150,000 for 50% of direct drilling costs incurred prior to 30 June 2021. The Round 22 grant is for a further $150,000 amount for 50% of direct drilling costs incurred prior to 31 December 2021, as well as up to $20,000 towards mobilisation costs.

Technical Details

Priority prospect areas currently comprise 29 targets across multiple styles of mineralisation, including:

• Gold vein lodes spatially associated with structural targets (thrust and fold hinge zones)
• Gold and copper intrusion-related systems
• PGE and Cu-Ni in ultramafic sequences

The East Kimberley is known to host numerous gold deposit styles including intrusion-related, orogenic and epithermal and spanning multiple depositional and mineralising events. Approximately 260 vein and hydrothermal gold occurrences are documented by Government datasets across the region (refer Figure 2).

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Figure 2 Peako's East Kimberley tenement holdings and location of major gold deposits and gold occurrences (DMIRS database).

Gold Potential

Peako's Eastman (E80/4990) tenement area has been the subject of very little gold exploration historically with few explorers analysing their soil, rock or drill samples for gold.

The Eastman tenement's potential prospectivity for gold is validated by a known gold signature as demonstrated by Peako's 2019 RC drilling results, as well as historical rock chip results (refer Figure

1. that include rock samples with up to 11.7g/t Au. In 2019, RC drilling results identified latent gold potential at Landrigan such as PLRC004 with 6m at 1.16g/t Au and 27.27g/t Ag and PLRC001 with 7m at 1.1 g/t Au and 7.51 g/t Ag. In addition, petrology results from 2019 RC chip samples identified the gold to occur as free grains hosted by deformed quartz veins.

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Landrigan:
PLRC004: 6m @ 1.16 g/t Au & 27.27 g/t Ag	Gossan Rock Chip
PLRC001: 7m @ 1.1 g/t Au & 7.51 g/t Ag	11.7 g/t Au
EYD020: 9.6m @ 1.5 g/t Au & 12.6 g/t Ag
		ERC075: 1m @ 0.6 g/t Au
Eastman:
ERC056: 5m @ 5.76 g/t Au & 45.7 g/t Ag
ERC057: 7m	@ 0.58 g/t Au & 35.2 g/t Ag
ERC058: 9m	@ 0.51 g/t Au & 15.0 g/t Ag	ERC067: 1m @ 2.75 g/t Au
ERC060: 1m	@ 0.8 g/t Au & 5.0 g/t Ag

Figure 3 Location of anomalous gold responses

Prospect Areas

Defined prospect areas for testing during the current field season are hosted within both the Koongie Park Formation volcanic belt (KPF) and the Lamboo Ultramafic intrusive belt (LUM) with both having differing mineral potential:

• KPF (five prospects) within bimodal volcanic to volcaniclastics with interbedded carbonate and ironstone facies intruded by multistage, multi-compositional intrusions with targets having potential for base metal and gold endowment.
• LUM (four prospects) affiliated with structurally complicated peridotite to pyroxenite cumulate layers dissected by large cataclastic quartz vein sulphide-bearing shear zones intruded by multistage intrusions. Ultramafic units have ubiquitous soil gold anomalism (Au >7 ppb) potentially affiliated with fertile crustal structures.

Priority prospect areas are shown in Figure 4, with key features summarised in Table 1:

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Yellowstone &

Stein Creek

Wedge

Eastman	Bullock
Louisa
Yard 9
	Brumby
	Eastman
Eastman	Bore
East
	Eastman-2
	Area

Figure 4 High priority target areas on the E80/4990 Eastman tenement for immediate follow up in the 2021 field season

Prospect	Targets	Target Style
Brumby	3		Defined geochemical and spectral anomalies; Intrusion
			related gold, Nickel-PGE and copper targets
Eastman Bore	4		Defined geochemical and spectral anomalies; Intrusion
			related gold, Nickel-PGE and copper targets
Louisa	4		Gold lode targets with defined folds and shear zones
			association with known quartz vein arrays; intrusion
			related gold, Nickel-PGE and copper targets
Eastman-2 Area	5		Defined geochemical and spectral anomalies; Intrusion to
			skarn related gold and copper targets
Eastman East	4		Defined geochemical and spectral anomalies; Intrusion to
			skarn related gold and copper targets
Eastman Yard 9	1		Defined geochemical and spectral anomalies; Intrusion
			related gold and copper targets
Wedge	1		Defined geochemical and spectral anomalies; Intrusion
			related gold and copper targets
Yellowstone & Stein Creek	3		Intrusion related gold and copper targets
Bullock	4		Defined geochemical and spectral anomalies; Intrusion
			related gold, Nickel-PGE and copper targets
Table 1 Priority prospect areas - key features

Executive Director, Ms Rae Clark, commented "We are excited to finally have our people in the field preparing for our imminent drill program."

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