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PEEL MINING LIMITED Capital/Financing Update 2009

Aug 24, 2009

65545_rns_2009-08-24_19191e40-3bbe-491e-b63d-9223d3223854.pdf

Capital/Financing Update

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==> picture [231 x 72] intentionally omitted <==

[Address]

Dear Shareholder,

NON‐RENOUNCEABLE ENTITLEMENT ISSUE

Peel Exploration Limited ( Company ) has announced to ASX Limited ( ASX ) a non‐renounceable entitlement issue on the basis of one (1) new Share for every three (3) Shares held by Shareholders at an issue price of 10 cents per Share to raise approximately $1,030,892 ( Offer ).

The entitlement issue will result in the issue of approximately 10,308,917 new shares in the Company.

The Offer is not underwritten.

The Prospectus relating to this issue has been lodged with the Australian Securities and Investments Commission and ASX and is available on the ASX website at www.asx.com.au for inspection. The timetable and important dates of the issue are set out below:

Event Date
Lodgement of Prospectus and Appendix 3B 21 August 2009
Notice sent to Shareholders 25 August 2009
Ex Date 26 August 2009
Record Date for determining Shareholder entitlements 1 September 2009
Prospectus despatched to Shareholders 7 September 2009
Closing Date of Offer 25 September 2009
Securities quoted on a deferred settlement basis 28 September 2009
Notify ASX of under‐subscriptions 30 September 2009
Despatch date/Shares entered into Shareholders’ security holdings 2 October 2009
  • These dates are determined based upon the current expectations of the Directors and may be varied in accordance with the Listing Rules.

The purpose of the issue is to raise approximately $1,030,892 and the funds raised are planned to be used as follows:

Proceeds of the Offer
Attunga Tungsten Deposit infill drilling
Attunga project regional drilling and geophysics
Other Projects
Working Capital
Expenses of the Offer
Total
$
350,000
250,000
250,000
153,066
27,826
$1,030,892

Peel Exploration Limited ACN 119 343 734

Level 1, 79 Hay St, Subiaco, WA 6008. Ph: (08) 9382 3955. Fax (08) 9388 1025. E: [email protected]. www.peelex.com.au

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The capital structure of the Company on completion of the issue will be as follows:

Shares

Number
Share currently on issue 30,926,750
Shares offered pursuant to the Offer 10,308,917
Total Shares on issue on completion of the Offer 41,235,667*
  • Assumes the offer is fully subscribed.

Options

Number
Quoted exercisable at $0.20 on or before 30 November 2010 22,473,250
Unquoted exercisable at $0.30 on or before 30 April 2011 1,000,000
Unquoted exercisable at $0.30 on or before 30 November 2010 7,500,000
Unquoted exercisable at $0.25 on or before 30 November 2010 600,000
Options offered pursuant to the Offer Nil
Total Options on issue after completion of the Offer 31,573,250

In calculating entitlements under the entitlement issue fractions will be rounded up to the nearest whole number.

The offer under the Prospectus is made to Shareholders with registered addresses in Australia and New Zealand. Overseas shareholders should contact the Company Secretary with any queries.

Full detail of the issue will be contained in the Prospectus that will be mailed to all shareholders who are registered on the record date. Shareholders eligible to participate should read the Prospectus carefully.

Yours faithfully

==> picture [109 x 73] intentionally omitted <==

Mr Robert Tyson Managing Director Peel Exploration Limited

Peel Exploration Limited ACN 119 343 734

Level 1, 79 Hay St, Subiaco, WA 6008. Ph: (08) 9382 3955. Fax (08) 9388 1025. E: [email protected]. www.peelex.com.au