Peak Rare Earths Limited has been informed that Shenghe Resources Holding Co Ltd. ("Shenghe") has agreed to acquire a 19.9% interest in Peak from Appian Pinnacle Holdco Limited ("Appian"), through its subsidiary, Shenghe Resources (Singapore) Pte Ltd. Peak was not involved in any discussions or negotiations between Appian and Shenghe. A notice of initial substantial holding reflecting Shenghe's investment is expected to be lodged by Shenghe with the Company and the ASX in accordance with the Corporations Act. The Peak Board will review these materials and the transaction with its advisors having regard to the interests of all of Peak's shareholders.

The Peak Board will provide shareholders with any further information as required. This transaction is at the shareholder level and will not impact the strategy, day-to-day operations, management or employees of Peak. Shenghe will not be entitled to, and Appian will no longer enjoy, Appian's previous shareholder rights, which included director nomination rights, capital raising notifications and information and consultation rights.

As a result, Rebecca Morgan, a nominee director of Appian, has resigned as a non-executive director of the Company.