PEEL MINING LIMITED — Capital/Financing Update 2007

May 16, 2007

Exploring forgotten mineral fields

MEDIA RELEASE

17 May 2007

PEEL EXPLORATION LIMITED POSTS STRONG START ON ASX

Peel Exploration Limited (ASX: PEX) recorded a strong start to trading today on the ASX, following the conclusion of its oversubscribed \$3 million IPO.

Peel Exploration Chairman Michael Kiernan said the initial response to trading of the Company's securities on the ASX was a positive sign for the future.

"The board of Peel Exploration is extremely pleased with the Company's strong debut on the ASX and we would like to extend our gratitude to our shareholders and advisors who have supported the Company's IPO so strongly", he said.

"We are now looking forward to getting down to business and commencing exploration in earnest over the Company's 700 square kilometres of 100%-owned fenure.

"The coming months will see Peel Exploration undertake the systematic exploration of largely forgotten mineral fields within the highly prospective New England Fold Belt.

"The New England Fold Belt has yielded some truly world-class mineral deposits the likes of Mount Morgan, Gympie, Mount Rawdon, Cracow, Timbarra and Hillgrove, yet remarkably, the region remains under-explored.

"Exploration of the Company's project areas is already underway and we look forward to the results as they come to hand," Mr Kiernan said.

END.

For further information, please contact:

Rob Tyson Executive Director - Peel Exploration Tel: 08 9382 3955

Warrick Hazeldine Purple Communications Tel: 08 9485 1254 Mob: 0417 944 616