Peako Limited announced it has received assay results from its Phase 2 reverse circulation (RC) drill program undertaken at the Company's Eastman PGE Project in the Kimberley region of Western Australia. Assay results from Phase 2 drilling provide further confidence in the potential of the Eastman Project, in particular highlighting the potential of the Brumby Prospect and surrounds. Significant intercepts from Phase 2 RC drilling include: 30m @ 1.45 g/t PdEq (1.0 g/t 3E) from 48m (PRC0074), including 6m @ 2.93 g/t (2.37 g/t 3E) from 63m; 14m @ 1.45 g/t PdEq from 70m (1.06 g/t 3E) (PRC0073), including 4m @ 2.44 g/t (1.91 g/t 3E) from 78m; 23m @ 0.83 g/t PdEq (0.54 g/t 3E) from 46m (PRC0076) and 11m @ 0.83 g/t PdEq (0.54 g/t 3E) from 74m and 7m @ 0.83 g/t PdEq (0.54 g/t 3E) from 140m and 5m @ 0.87 g/t PdEq (0.50 g/t 3E) from 162m; 6m @ 1.05 g/t (0.0.55 g/t 3E) PdEq from 26m (PRC0077) and 8m @ 1.39 g/t (0.77 g/t 3E) PdEq from 55m; 21m @ 0.83 g/t PdEq (0.48 g/t 3E) from 71m (PRC0079), including 7m @ 1.14 g/t PdEq (0.72 g/t 3E) from 85m; 21m @ 0.91 g/t PdEq (0.52 g/t 3E) from 23m (PRC0080), including 6m @ 1.16 g/t (0.71 g/t 3E) from 38m; 9m @ 1.23 g/t PdEq (0.72 g/t 3E) from 66m (PRC0081), including 3m @ 1.85 g/t PdEq (1.51 g/t 3E) from 70m.

The Phase 2 program consisted of 15 RC drill holes for a total of 2,118m, focusing on three prospects within the Eastman PGE intrusion; Brumby, Louisa and The Gap, which were identified as priority target areas following Peako's Phase 1 drill campaign earlier in 2022. Phase 2 was designed as a step-out program to test continuity and identify higher-grade PGE mineralisation along strike from previous encouraging PGE intercepts. New drill fences stepped out between 100m and 300m from previous anomalous drill holes.

Six holes were drilled at the Brumby Prospect as part of Phase 2, with results extending the strike of tested PGE mineralisation to 300m. The Brumby Prospect is located centrally within the 9.4km eastern zone of the Eastman PGE Intrusion and has an overall strike potential of at least 1.4km, as well as two additional parallel ultramafic units to the north. Phase 2 drill results from Brumby define PGE mineralisation continuously across the tested 300m strike, with a high-grade zone that is also continuous over a strike length of at least 180m.

All mineralisation at Brumby remains open along strike to both the east and west. High grade PGE mineralisation at Brumby was consistently intersected at vertical depths around 65m with the zone extending from near surface and currently open both up and down dip and along strike in both directions. Priority follow-up and step out extension drilling at Brumby across the 1.4km strike is planned for the first part of the 2023 field season and will be undertaken in conjunction with an Exploration Incentive Scheme (EIS) co-funded diamond drill program to further assess and define the PGE mineral potential of the prospect.

An additional 9 RC drill holes were also completed at The Gap and Louisa Prospects at Eastman, with all holes intercepting PGE mineralisation. The Gap and Louisa Prospects are geologically complex and require further interpretation and evaluation prior to additional drilling work programs. Peako is currently planning its 2023 exploration program, with field work expected to commence following conclusion of the Kimberley wet season. High-grade PGE results from Phase 2 drilling have identified the 1.4km Brumby segment of the Eastman Intrusion Complex as a high-priority target for step-out and infill drilling.

In 2023, drilling at Brumby will test the extent, continuity and grade of PGE mineralisation and, with ongoing positive results, transition towards resource definition drilling using a combination of RC and diamond drilling. The Company also plans to test parallel ultramafic units to the north of Brumby, where sparse historical drilling returned results up to 8m @ 1.86 g/t PdEq and 5m @ 1.19 g/t PdEq. Diamond drilling at Brumby, co-funded via a WA Government EIS grant, will provide important knowledge to assist Peako's understanding of the relationship between PGE mineralisation, stratigraphy, and structure.

This new information will enhance the Company's geological understanding of the Brumby Prospect and its contained PGE mineralisation, and will assist Peako to refine its exploration model for exploration targeting of PGE mineralization along the entire 16.5km strike of the Eastman Intrusion. As part of Peako's 2023 field program, continued reconnaissance drilling at a number of less advanced prospects, including Blackadder, Longhorn and Waterloo, is planned to continue the Company's assessment of target areas for higher-grade PGE zones. A sparsity of drilling along the 16.5 km Eastman Intrusion means its potential for high-grade PGE endowment is sparsely drill tested, and consequently significant areas remain untested across the Eastman Intrusion.

Work is in progress to further define and prioritise PGE areas for additional reconnaissance drilling to develop a pipeline of targets for systematic assessment of their economic potential.