Peak Gold reports third quarter results for 2007



    (All figures are in US dollars unless stated otherwise)

    VANCOUVER, Nov. 28 /CNW/ - Peak Gold Ltd. (PIK:TSX-V) ("Peak Gold") today
reported net earnings of $1.2 million, after recording $1.0 million
stock-based compensation charges, for the quarter ended September 30, 2007.

    
    Third Quarter Highlights

    -   Gold production of 53,900 ounces

    -   Gold sales of 55,000 ounces

    -   Total cash costs of $303 per ounce (net of by-product sales)(1)

    -   Earnings from operations for the Peak Mines were $6.5 million. Loss
        from operations for the Amapari Mine were $1.6 million

    -   Consolidated operating cash flows of $7.8 million

    -   On November 15, 2007, the Company filed an independent technical
        report for the Amapari Mine. The Proven and Probable Mineral Reserve
        as of September 30, 2007 is 302,100 contained ounces of gold. The
        Measured and Indicated Mineral Resource(2) is 1.047 million contained
        ounces of gold. The Inferred Mineral Resource is 1.351 million
        contained ounces of gold.

    -   Private placement of special warrants to raise gross proceeds of
        approximately $110 million is expected to close on November 28, 2007

    For the period January 1, 2007 to September 30, 2007, gold and copper
production and sales for the Amapari Mine and the Peak Mines are presented
below.

    -------------------------------------------------------------------------
                                     Amapari Mine    Peak Mines      Total
    -------------------------------------------------------------------------
    Production
                Gold oz              72,000          87,500          159,500
      Copper (000s) lbs              N/A             5,742           5,742
    -------------------------------------------------------------------------
    Sales
                Gold oz              73,500          88,400          161,900
      Copper (000s) lbs              N/A             4,684           4,684
    -------------------------------------------------------------------------
    Note: This table includes results for the period prior to the acquisition
    of the Amapari Mine and the Peak Mines on April 3rd and April 27th,
    respectively.
    

    Peak Mines

    Production for this quarter at the Peak Mines in Australia was
31,703 ounces of gold and 1,932,000 pounds of copper. Mill throughput was an
operational record this quarter at 182,835 tonnes and reflects improved
underground production and increased milling capacity. Total cash costs for
the quarter were $176 per ounce which reflects consistent copper concentrate
sales and continued cost containment despite a strengthening Australian
dollar.
    The development of the surface decline connection to the underground
workings at the Peak Mines is on schedule and expected to be completed in
December 2007. This decline is expected to provide increased reliability of
production, enable cost savings and improve access to additional ore reserves.

    Amapari Mine

    Gold production for this quarter at the Amapari Mine in Brazil has
increased to 22,200 ounces from 17,300 over the same period in the prior year.
The higher gold production is a result of higher gold grades combined with
improved grade control. This quarter was a record for ore processed with
519,400 tonnes. Gold recovery was adversely affected by increased saprolite
content on the heaps and heavy rain occurrences during heap formation. Total
cash costs for the quarter decreased to $491 per ounce from $539 per ounce
over the same period in the prior year due mainly to higher production, cost
savings during the quarter, and the inclusion in inventory of gold in
solution. However, the cost savings achieved during the quarter were partially
offset by the strengthening of the Brazilian currency (real).
    "Peak Gold is continuing to work on improving recoveries of the oxides
and efficiency of its mining operations at Amapari," said President and Chief
Executive Officer, Julio Carvalho.
    Peak Gold filed an independent technical report on November 15, 2007 for
its Amapari Mine in Brazil. The Proven and Probable Mineral Reserve Estimate
as of September 30, 2007 is 3.806 million tonnes at 2.47 grams of gold per
tonne or 302,100 contained ounces of gold. The Measured and Indicated Mineral
Resource Estimate (inclusive of reserves) as of September 30, 2007 is
14.237 million tonnes at 2.29 grams of gold per tonne or 1.047 million
contained ounces of gold. The Inferred Mineral Resource Estimate as of
September 30, 2007 increased to 13.039 million tonnes at 3.22 grams of gold
per tonne or 1.351 million contained ounces of gold compared to 1.92 million
tonnes at 2.47 grams of gold per tonne or 152,000 contained ounces of gold
estimated as of December 31, 2006.
    "During this quarter we continued to evaluate mining assets for potential
acquisitions. We remain confident that we will deliver on our growth strategy
and increase production via acquisitions," said President and Chief Executive
Officer Julio Carvalho.
    Peak Gold will hold a conference call on Wednesday, November 28, 2007 at
10:00 a.m. (PT) to discuss these results. You may join the call by dialing
toll free 1-888-789-9572 or 1-416-695-7806 for calls from outside Canada and
the U.S. You can listen to a recorded playback of the call after the event
until Wednesday, December 26, 2007 by dialing 1-800-408-3053 or 1-416-695-5800
for calls outside Canada and the U.S. Passcode: 3240618 followed by the number
sign.

    Peak Gold is a new intermediate gold producer with a strong foundation
for growth. To learn more about us, please visit our website at
www.peakgold.com.

    Please <a href="http://www.peakgold.com/_resources/financials/PIKQ32007.pdf">click here</a> to download the full third quarter report.

    
    (1) Peak Gold has included a non-GAAP performance measure, total cash
        cost per gold ounce, throughout this news release. The Company
        reports total cash costs on a sales basis. In the gold mining
        industry, this is a common performance measure but does not have any
        standardized meaning, and is a non-GAAP measure. The Company follows
        the recommendations of the Gold Institute standard. The Company
        believes that, in addition to conventional measures, prepared in
        accordance with GAAP, certain investors use this information to
        evaluate the Company's performance and ability to generate cash flow.
        Accordingly, it is intended to provide additional information and
        should not be considered in isolation or as a substitute for measures
        of performance prepared in accordance with GAAP.

    (2) Measured and Indicated Mineral Resources are inclusive of Mineral
        Reserves
    

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

    This News Release contains "forward looking statements", within the
meaning of applicable Canadian Securities legislation. Forward-looking
statements include, but are not limited to, statements with respect to the
future price of gold and copper, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing and amount
of estimated future production, costs of production, capital expenditures,
costs and timing of the development of new deposits, success of exploration
activities, permitting time lines, currency exchange rate fluctuations,
requirements for additional capital, government regulation of mining
operations, environmental risks, unanticipated reclamation expenses, title
disputes or claims and limitations on insurance coverage. Generally, these
forward-looking statements can be identified by the use of forward-looking
terminology such as "plans", "expects", or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts" ,"intends" ," anticipates", or
"does not anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could", "would",
"might" or "will" or "will be taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of Peak Gold to be materially different
from those expressed or implied by such forward-looking statements, including
but not limited to: risks related to the integration of acquisitions; risks
related to international operations; actual results of current exploration
activities; actual results of current reclamation activities; conclusions of
economic evaluations; changes in project parameters as plans continue to be
refined; future prices of gold and copper; possible variations in ore
reserves, grade or recovery rates; failure of plant; equipment or processes to
operate as anticipated; accidents; labor disputes and other risks of the
mining industry; delays in obtaining governmental approvals or financing or in
the completion of development or construction activities, as well as those
factors discussed in the section entitled "Risk Factors" in Peak Gold's Filing
Statement dated April 2, 2007, available at www.sedar.com. Although Peak Gold
has attempted to identify important factors that would cause actual results to
differ materially from those contained in forward-looking statements, there
may be other factors that cause results not to be as anticipated, estimated,
or intended. There can be no assurance that such statements will prove to be
accurate. As actual results and future events could differ materially from
those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements that are incorporated by
reference herein, except in accordance with applicable securities laws.

    CAUTIONARY NOTE REGARDING RESERVES AND RE

SOURCES Readers should refer to continuous disclosure documents filed by Peak Gold since April 3, 2007 available at www.sedar.com, for further information on mineral reserves and resources, which is subject to the qualifications and notes set forth therein.

For further information:

For further information: Mélanie Hennessey, Vice President, Investor
Relations, Peak Gold Ltd., 3110-666 Burrard Street, Vancouver, British
Columbia, V6C 2X8, Telephone: (604) 696-4100, Toll-free: (888) 220-2760, Fax:
(604) 696-4110, Email: info@peakgold.com, Website: www.peakgold.com; Vanguard
Shareholder Solutions: 1205-1095 West Pender Street, Vancouver, British
Columbia, V6E 2M6, Telephone: (604) 608-0824, Toll Free: (866) 398-1088,
Email: ir@vanguardsolutions.ca

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