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PEEL MINING LIMITED Capital/Financing Update 2007

Sep 5, 2007

65545_rns_2007-09-05_ecfcd056-45cf-4934-a8e5-34fba1294dab.pdf

Capital/Financing Update

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6 September, 2007

The Australian Stock Exchange, ASX Company Announcements Office, Level 4, 20 Bridge St, Sydney, NSW 2000

Dear Sir,

RIGHTS ISSUE CLOSED OVERSUBSCRIBED

Peel Exploration Limited (ASX:PEX) is pleased to announce that its one for two nonrenounceable rights issue dated 31 July 2007 was strongly supported by shareholders and, including shortfall applications, has closed oversubscribed.

The Prospectus was for a non-renounceable rights issue of up to 15,000,000 one cent options expiring 30 November 2010, exercisable at 20 cents each (PEXO).

Quotation is sought for the 15,000,000 options which were allotted on 6 September 2007.

These securities have been allocated to the issuer sponsored sub-register.

The issued capital of the Company following allotment is:

Quoted Ordinary Fully Paid Shares 15,110,000
Not quoted and in Escrow to 17 May 2008 1,000,000
Not quoted and in Escrow to 17 May 2009 13,890,000
Quoted Options expiring 30 November 2010 15,000,000
Not quoted Options expiring 30 November 2010 15,000,000

The distribution of holders of Quoted 31 November 2010 options is:

1 - 1,000 5
1,001 – 5,000 78
5,001 – 10,000 155
10,001 – 100,000 140
100,001 and over 19

Following allotment, the top 20 holders (listed following) of the Quoted 31 November 2010 options hold 64.55% of that class of options.

Peel Exploration Limited (ACN 119 343 734) Telephone (08) 9382 3955 Facsimile (08) 9388 1025 Email [email protected] Level 1, 79 Hay Street, Subiaco, Western Australia 6008

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Top 20 Optionholders:

Top 20 Optionholders:
Crawley Investments Pty Ltd 1,622,874
Mr Laurence James Kiernan 1,622,874
Mr Robert Maclaine Tyson 1,172,874
Ms Lisa Duperouzel 750,000
Mrs Linda Sala Tenna 750,000
Salamar Pty Ltd 672,873
Mr Simon Hadfield 500,000
Classic Capital Pty Ltd 495,748
Blue Crystal Pty Ltd 300,000
Katana Capital Limited 300,000
Ron & Liz Nominees Pty Ltd 225,000
Mr Jordan Tyson & Mr Flynn Tyson 200,000
Mr Paul Hodder & Mr James Ramsay & Mr Daniel Foster Investments A/C> 150,000
Mr Scott Paul Jones & Mr Rodney Malcolm Jones & Miss Carol Robin
Jones
150,000
KB33 Capital Pty Ltd 150,000
Wonder Holdings Pty Ltd 145,000
Maj Pty Ltd 125,000
Mr Denis Ivan Rakich 125,000
Sams Marketing Pty Ltd 125,000
Hoperidge Enterprises Pty Ltd 100,000

Peel Exploration Limited would like to thank all shareholders who took part in the entitlement for their continued support.

Yours faithfully,

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Rob Tyson Executive Director

Peel Exploration Limited (ACN 119 343 734)

Telephone (08) 9382 3955 Facsimile (08) 9388 1025 Email [email protected] Level 1, 79 Hay Street, Subiaco, Western Australia 6008