Peak Rare Earths (PEK) Corporate Presentation summary

Transformational partnership and investment

• Shenghe to invest A$96m for a 50% stake in Ngualla Group UK, fully funding the Ngualla Project and implying a 100% premium over Peak's pre-announcement share price.

• Shenghe will arrange a debt facility to cover remaining project capital costs, eliminating the need for Peak to contribute development equity funding.

• The partnership includes a 7-year take-or-pay offtake agreement for 100% of concentrate and 50% of future downstream products.

• Shenghe will participate in project EPCM/EPC/EPS execution and collaborate on technical optimisation and downstream development.

• Peak retains governance protections, including board representation and casting vote, with standstill restrictions limiting Shenghe’s Peak shareholding to 19.9% until September 2027.

Project status and technical de-risking

• Ngualla Project is described as the most advanced rare earth development project, with key licences and a framework agreement in place with the Tanzanian government.

• Completed Bankable Feasibility Study Update and FEED Study, with further optimisation underway.

• Shenghe’s technical expertise and access to rare earth reagents and Chinese engineering groups are leveraged to reduce costs and optimise development.

• Shenghe is incentivised to reduce costs and expedite development, receiving 55% of NGUK’s net earnings/losses after tax for the first 5 years.

• Project timeline targets a Final Investment Decision by 31 December 2024, with construction to commence soon after.

Strategic alignment and global positioning

• Shenghe is a major international rare earths player, with a strong track record in mining, processing, and financing, and is Peak’s largest shareholder at 19.9%.

• Shenghe’s involvement in MP Materials’ Mountain Pass restart demonstrates its technical and financial capabilities.

• Peak brings in-depth project knowledge, Tanzanian experience, and ESG commitment, while Shenghe provides technical, financial, and offtake strengths.

• The partnership positions Peak as the only rare earth developer globally with a complete offtake, development, and funding solution.

• Governance and right-of-first-refusal mechanisms are in place to protect Peak’s interests and ensure alignment.