PEEL MINING LIMITED — Capital/Financing Update 2013

Dec 19, 2013

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ASX / MEDIA RELEASE 20 DECEMBER 2013

EXPLORATION UPDATE – MALLEE BULL RESOURCE DEFINITION DRILLING UNDERWAY

• MBDD017, drilled as a metallurgical drillhole, extends known Mallee Bull mineralisation to ~800m below surface, >50m deeper than previously identified

• MBDD017 also identifies a high-grade copper zone at ~220m below surface, follow-up drilling planned

• MBDD016, targeting an offhole DHEM anomaly, intersects several narrow high grade copper zones, more than 400m away from Mallee Bull

• Resource definition drilling at Mallee Bull now underway for maiden resource estimate by May 2014

Peel Mining is pleased to report that investigations at the Company’s flagship Mallee Bull project continue to produce positive results. Recent exploration efforts at the Mallee Bull/Gilgunnia Project have been focused on identifying potential new sources of mineralisation, supplementary to that already recognised at Mallee Bull, however, in line with exploration planning, resource definition drilling has now resumed at Mallee Bull with a maiden resource estimate expected by May 2014. Exploration continues to be funded by way of the Stage 3 earn-in requirement of the $8.33m farm-in agreement with CBH Resources Ltd.

Current planning sees CBH complete its Stage 3 farm-in requirements by mid-March 2014, at which time a 50:50 joint venture will form. With cash reserves of ~$4.7m at hand, Peel is well-capitalised to fund its share of exploration in the New Year.

Recent activities at the Mallee Bull/Gilgunnia Project have comprised diamond and RC drilling, and various surface and downhole geophysical surveys and modeling.

MBDD012, MBDD015, MBDD016 Drillhole Summaries

Drillhole MBDD012 (483.3m) was designed to test a moderate offhole DHEM anomaly identified at ~250m downhole in MBDD011. This anomaly is located in close proximity to significant lead-zinc-silver mineralisation observed over a 4m zone at ~390m in MBDD011.

MBDD012 intercepted a broad zone of variable, but generally weak, sphalerite-galena-pyrrhotitepyrite mineralisation occurring as veinlets from ~350m downhole to end-of-hole. This mineralisation is coincident with an increase in chlorite alteration. Follow-up DHEM surveying of MBDD012 indicated that the primary DHEM target remained untested and follow-up drilling with MBDD015 and MBDD016 targeting this anomaly was completed.

MBDD015 (168.3m) was terminated prematurely following drilling problems.

MBDD016 (395.4m) was drilled from effectively the same collar position as MBDD015 and intercepted several locally strong though limited copper mineralised zones: 1m @ 4.95% Cu, 49 g/t Ag, 0.21 g/t Au from 275m and 1m @ 5.49% Cu, 41 g/t Ag, 0.88 g/t Au from 288m. These intercepts occur more than 400m east of Mallee Bull. The mineralisation was accompanied by moderate to strong chlorite and patchy but intense

Peel Mining Limited ACN 119 343 734 Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. Fax (08) 9388 1025. E:rtyson@peelmining.com.au www.peelmining.com.au

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sericite alteration with plentiful high-strain quartz veins. The mineralisation is identical to the Mallee Bull footwall/stringer style mineralisation and occurs within rhythmically bedded mudstone through sandstone.

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Figure 1 – MBDD016 - 1m @ 4.95% Cu, 49 g/t Ag, 0.21 g/t Au from 275m

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Figure 2 – MBDD016 - 1m @5.49% Cu, 41 g/t Ag, 0.88 g/t Au from 288m

DHEM surveying of MBDD016 indicates that the mineralisation is open up and down dip and followup exploration is planned in due course. The discovery of strong footwall/stringer-style mineralisation at distance from Mallee Bull is considered very encouraging.

MBDD017, MBDD017W1, MBDD017W2 Drillhole Summaries

Drillhole MBDD017 and wedges, drilled primarily to provide fresh material for additional metallurgical testwork purposes, was collared in an up-dip position above Mallee Bull and drilled down the dip of mineralisation at Mallee Bull. As expected, extensive zones of mineralisation were intersected, however it should be noted that given the down-dip nature of drilling no true width estimates are possible.

MBDD017 was also designed to stay within mineralisation for as long as possible in an attempt to extend the known depth of mineralisation. In this regard, MBDD017W2 was successful in intercepting stringer-style chalcopyrite mineralisation to about 825m downhole, or more than 800m below surface. This represents an increase of more than 50m in vertical extent of Mallee Bull mineralisation.

Also of note in MBDD017 was the intersection of a shallow, high grade copper interval within the hanging wall massive sulphide zone grading 13m @ 5.5% Cu, 59 g/t Ag, 1.68 g/t Au from 225m (~215m

Peel Mining Limited ACN 119 343 734 Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. Fax (08) 9388 1025. E:rtyson@peelmining.com.au www.peelmining.com.au

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below surface). As previously noted, no true width can be determined from this intercept, however this zone does appear to correlate well with high copper values seen in several other nearby drillholes. Importantly, this area appears lightly drilled offering the potential to define an area of high-grade copper-rich mineralisation close to surface. Accordingly, further drilling around this zone is planned.

It should be noted also that only partial assays for MBDD017 have been received with the remainder pending.

MBDD013, MBDD014, MBRCDD007, MBRCDD008 Drillhole Summaries

Drillholes MBDD013 (618.5m) and MBDD014 (799.9m) were completed targeting a recently identified geophysical anomaly generated from a magnetotelluric (MT) survey completed over the Mallee Bull and Butcher’s Dog prospect areas. Preliminary 2D modelling of the data identified an anomaly located approximately 500m north of Mallee Bull. Drillholes MBDD013 and MBDD014 targeted this anomaly.

Both drillholes intercepted minor zones of variable, narrow, chalcopyrite-pyrrhotite-pyritearsenopyrite-sphalerite mineralisation similar in style to Mallee Bull footwall/stringer mineralisation with associated chlorite and silica-alteration, however no significant assays were returned.

3D modelling of the MT data was recently received and indicated that the anomaly’s position was possibly further south than originally interpreted. Drillholes MBRCDD007 (459.5m) and MBRCDD008 (489.5m) were targeted toward this new position and completed recently. Again both drillholes encountered broad zones of minor mineralisation including pyrrhotite-sphalerite veinlets and alteration comprising chlorite and silica. Assays remain pending although aren’t thought to be significant. DHEM surveying of MBRCDD007 was recently completed and initial interpretation indicates that the MT anomaly may be explained by a small inhole response that reflects a zone of increased pyrrhotite mineralisation.

Resource Definition Drilling

In line with exploration planning, drilling recently recommenced at the Mallee Bull deposit as part of a resource definition drilling programme to enable a maiden resource estimate by May 2014. This drilling is designed to fill some of the large areal gaps within the existing Mallee Bull drilling dataset.

Initially, drilling is being targeted at a zone of low drill density at about the 350m below surface level. Several drillholes are also planned to test for a shallow high-grade component to Mallee Bull recently identified in MBDD017, followed by several deeper drillholes to deeper levels within Mallee Bull where high grade material has been returned previously.

Drilling has now paused for the Christmas/New Year period but will resume in mid-January with 2 rigs initially on the ground. Peel wishes all its shareholders a safe and happy Christmas and New Year.

For further information, please contact Rob Tyson on +61 420 234 020.

The information in this report that relates to Exploration Results is based on information compiled by Mr Robert Tyson, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Tyson is the Managing Director of Peel Mining Limited. Mr Tyson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr Tyson consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Peel Mining Limited ACN 119 343 734 Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. Fax (08) 9388 1025. E:rtyson@peelmining.com.au www.peelmining.com.au

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Background on Mallee Bull copper-polymetallic deposit and CBH farm-in

In March/April 2011, Peel began targeting a newly-recognised coincident EM and magnetic geophysical anomaly located within the historic 4-Mile goldfield. The 4-Mile goldfield comprises up to 60 shafts and workings spread over an area covering about 1,000m by 500m.

Initial drilling resulted in the discovery of highly anomalous silver-lead-zinc mineralisation. Follow-up drilling completed in July/August 2011 intersected massive and stringer/breccia sulphide mineralisation containing strong Cu-Ag-Au-Pb-Zn-Co values within a broad zone of deformation and alteration. By mid-2013, Mallee Bull had proven to be a major copper discovery with high-grade mineralisation present from around 150m below surface to at least 750m below surface, baring the hallmarks of a classic Cobar-style polymetallic deposit.

CBH Resources farmed-in to Mallee Bull in May 2012, whereby CBH has the right to earn an interest of up to 50% in the project over a three-year period through an $8.33m spend. Peel remains responsible for exploration activities through this period. CBH Resources is an Australian-based mineral resources company producing zinc, lead and silver from the Endeavour Mine north of Cobar, and the Rasp mine in Broken Hill. The company is 100%-owned by Tokyo Stock Exchange-listed Toho Zinc.

Annexure 1 – Mallee Bull/Butchers Dog Drill Collars

Hole ID	Northing	Easting	Azi	Dip	Final Depth (m)
MBDD012	6413470	415587	90	-60	483.3
MBDD013	6414013	415370	90	-70	618.5
MBDD014	6414001	415169	90	-70	799.9
MBDD015	6413415	415640	95	-60	168.3
MBDD016	6413415	415645	96.8	-61	395.4
MBDD017	6413360	415379	280	-76	776
MBDD017W1	6413360	415379	280	-76	892.6
MBDD017W2	6413360	415379	280	-76	1048.3
MBRCDD005	6413428	415048	83.5	-60	490
MBRCDD006	6413428	415052	93	-60	450
MBRCDD007	6413680	415401	85	-62	459.5
MBRCDD008	6413600	415401	75	-62	489.5
MBRCDD009	6413270	415050	64	-63	300
MBRCDD010	6413271	415055	73.5	-63	450
MBRCDD011	6413350	415048	73	-63	500
MBRCDD012	6413350	415052	64	-64	480

Annexure 2 - Drill Assay Results (ppm)

Hole ID	From	To	Ag	Au	Cu	Pb	Zn
MBDD012	387	388	3.2	0.02	86	3970	8880
MBDD012	417	418	1.4	0.02	293	1470	5040
MBDD012	418	419	1.7	0.15	168	2130	7780
MBDD012	445	446	3.2	0.01	493	6060	17550
MBDD013	108	109	7.6	0.1	369	5710	10250
MBDD013	109	110	9.8	0.26	352	6350	13500

Peel Mining Limited ACN 119 343 734

Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. Fax (08) 9388 1025. E:rtyson@peelmining.com.au www.peelmining.com.au

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Hole ID	From	To	Ag	Au	Cu	Pb	Zn
MBDD013	334	335	21.3	0.05	688	4050	4670
MBDD013	336	337	2.8	0.03	283	972	5190
MBDD013	359	360	11.3	0.21	7700	64	145
MBDD016	275	276	48.5	0.21	49500	3770	6330
MBDD016	280	281	6.2	0.05	317	7260	9880
MBDD016	288	289	41.2	0.88	54900	2250	2910
MBDD017	160	161	9.7	0.05	74	3720	8750
MBDD017	177	178	10.4	0.88	634	1830	1550
MBDD017	178	179	52.4	0.9	60200	3120	3980
MBDD017	179	180	53.5	0.24	31100	4450	4340
MBDD017	194	195	20.6	0.3	5280	1835	2850
MBDD017	197	198	7.5	0.63	4370	1110	2120
MBDD017	203	204	25.1	0.38	428	21800	5830
MBDD017	204	205	10.3	1.15	409	5120	2660
MBDD017	206	207	8.4	0.53	283	4380	4150
MBDD017	207	208	16.7	0.46	1450	6490	7370
MBDD017	219	220	15.7	0.11	2180	7380	2110
MBDD017	220	221	11.5	0.08	1040	7440	1495
MBDD017	221	222	10	0.05	673	5360	1260
MBDD017	222	223	7.7	0.04	1030	6280	498
MBDD017	224	225	25.1	0.25	33800	782	1190
MBDD017	225	226	59.7	2.12	70000	1645	2140
MBDD017	226	227	58.1	1.8	60000	1775	2080
MBDD017	227	228	89.4	2.69	67900	4120	2190
MBDD017	228	229	75	1.91	69700	2830	1900
MBDD017	229	230	72.7	1.77	61400	2410	1560
MBDD017	230	231	61.3	1.1	55300	1920	1270
MBDD017	231	232	50.7	1.09	69500	1015	1440
MBDD017	232	233	63.5	2.35	66500	1345	1620
MBDD017	233	234	74	2.27	70800	1535	1530
MBDD017	234	235	67	2.37	50900	1570	1170
MBDD017	235	236	37.4	1.31	15050	1495	870
MBDD017	236	237	34.9	0.82	27000	1035	938
MBDD017	237	238	13	0.33	7270	821	379
MBDD017	240	241	15.7	1.44	1400	2080	1660
MBDD017	241	242	15.2	1.21	2210	2160	2220
MBDD017	242	243	7.7	0.47	6220	551	532
MBDD017	243	244	12.3	0.56	10550	855	1250
MBDD017	244	245	31.3	1.48	26800	1970	5330
MBDD017	245	246	71.3	4.08	23900	7360	12250
MBDD017	246	247	15	0.67	4750	1700	904
MBDD017	254	255	11.2	0.6	4500	992	255
MBDD017	255	256	26.2	0.33	10400	3150	784
MBDD017	261	262	23.3	0.17	4850	888	313
MBDD017	286	287	20.8	0.2	3800	1845	462
MBDD017	299	300	8	1.32	1220	1555	409

Peel Mining Limited ACN 119 343 734 Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. Fax (08) 9388 1025. E:rtyson@peelmining.com.au www.peelmining.com.au

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Figure 3 – Mallee Bull/Butchers Dog Drill Plan December 2013

Peel Mining Limited ACN 119 343 734 Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. Fax (08) 9388 1025. E:rtyson@peelmining.com.au www.peelmining.com.au

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Table 1 - Section 1: Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	 Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to the Public Report.  In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	 Diamond drilling and reverse circulation (RC) drilling were used to obtain samples for geological logging and assaying.  Diamond core was cut and sampled at 1m intervals. RC drill holes were sampled at 1m intervals and split using a cone splitter attached to the cyclone to generate a split of 2-4kg to ensure sample representivity.
Drilling techniques	 Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by _what method, etc). _	 Drilling to date has been a combination of diamond and reverse circulation. Reverse circulation drilling utilized a 5 ½ inch diameter hammer. Diamond drilling ranged from PQ to NQ coring.
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries and results assessed.  Measures taken to maximise sample recovery and ensure representative nature of the samples.  Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	 Core recoveries are recorded by the drillers in the field at the time of drilling and checked by a geologist or technician. Overall core recoveries to date are >95%.  RC samples are not weighed on a regular basis due to the exploration nature of drilling but no significant sample recovery issues have been encountered in a drilling program to date.  Diamond core is reconstructed into continuous runs on an angle iron cradle for orientation marking and depths are checked against the depths recorded on core blocks. Rod counts are routinely undertaken by drillers.  When poor sample recovery is encountered during drilling, the geologist and driller have endeavoured to rectify the problem to ensure maximum sample recovery.  Sample recoveries to date have generally been high. Insufficient data is available at present to determine if a relationship

Peel Mining Limited ACN 119 343 734 Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. Fax (08) 9388 1025. E:rtyson@peelmining.com.au www.peelmining.com.au

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Criteria	JORC Code explanation	Commentary
		exists between recovery and grade. This will be assessed once a statistically valid amount of data is available to make a determination.
Logging	 Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.  Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.  The total length and percentage of the relevant intersections logged.	 All core and drill chip samples are geologically logged. Core samples are orientated and logged for geotechnical information. Drill chip samples are logged at 1m intervals from surface to the bottom of each individual hole to a level that will support appropriate future Mineral Resource studies.  Logging of diamond core and RC sample records lithology, mineralogy, mineralisation, structural, (DDH only), weathering, colour, and other feature of the samples. Core is photographed as both wet and dry.  All diamond and RAB drill holes in the current program were geologically logged in full.
Sub-sampling techniques and sample preparation	 If core, whether cut or sawn and whether quarter, half or all core taken.  If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples.  Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.  Whether sample sizes are appropriate to the grain size of the material being sampled.	 Drill core was cut with a core saw and half core taken.  The RC drilling rig was equipped with an in-built cyclone and splitting system, which provided one bulk sample of approximately 20kg and a sub-sample of 2-4kg per metre drilled.  All samples were split using the system described above to maximize and maintain consistent representivity. The majority of samples were dry.  Bulk samples were placed in green plastic bags, with the sub-samples collected placed in calico sample bags.  Field duplicates were collected by re- splitting the bulk samples from large plastic bags. These duplicates were designed for lab checks.  A sample size of 2-4kg was collected and considered appropriate and representative for the grain size and style of mineralization.
Quality of assay data and laboratory tests	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.  For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.  Nature of quality control procedures adopted (eg	 ALS Laboratory (Orange) was used for all analysis work carried out on the 1m drill chip samples and drill core samples. The laboratory techniques below are for all samples submitted to ALS and are considered appropriate for the style of mineralization defined at the Mallee Bull prospect: o PUL-23 and CRU-22 (Sample preparation codes) o ME-ICP41 35 Element Aqua

Peel Mining Limited ACN 119 343 734 Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. Fax (08) 9388 1025. E:rtyson@peelmining.com.au www.peelmining.com.au

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Criteria	JORC Code explanation	Commentary
	standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	Regia ICP-AES. o Au-AA25 Ore Grade Au 30g FA AA finish  The QA/QC data includes standards, duplicates and laboratory checks. Duplicates for drill core are collected by the lab every 30 samples after the core sample is pulverized. Duplicates for percussion drilling are collected directly from the drill rig or the meter sample bag using a half round section of pipe. In house QA/QC tests are conducted by the lab on each batch of samples with standards supplied by the same companies that supplyour own.
Verification of sampling and assaying	 The verification of significant intersections by either independent or alternative company personnel.  The use of twinned holes.  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.  Discuss any adjustment to assay data.	 All geological logging and sampling information is completed in spreadsheets, which are then transferred to a database for validation and compilation at the Peel head office. Electronic copies of all information are backed up periodically.  No adjustments of assay data are considered necessary.
Location of data points	 Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.  Specification of the grid system used.  Quality and adequacy of topographic control.	 A Garmin hand-held GPS is used to define the location of the drill hole collars. Standard practice is for the GPS to be left at the site of the collar for a period of 10 minutes to obtain a steady reading. Collars are picked up after by DGPS. Down hole surveys are conducted by the drill contractors using predominantly a Reflex gyroscopic tool with readings every 10m after drill hole completion. On occasion a Reflex electronic multi-shot camera will be used with readings for dip and magnetic azimuth taken every 30m down hole. QA/QC in the field involves calibration using a test stand. The instrument is positioned with a stainless steel drill rod so as not to affect the magnetic azimuth.  Grid system used is MGA 94 (Zone 55). All downhole magnetic surveys were converted to MGA94grid.
Data spacing and distribution	 Data spacing for reporting of Exploration Results.  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.  Whether sample compositing has been applied.	 Data/drill hole spacing is variable and appropriate to the geology and historical drilling.  No sample compositing is used in this report; all results detailed are the product of 1m down hole sample intervals.
Orientation of data in relation to	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the	 Most drillholes are planned to intersect the interpreted mineralized structures/lodes as near to a

Peel Mining Limited ACN 119 343 734 Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. Fax (08) 9388 1025. E:rtyson@peelmining.com.au www.peelmining.com.au

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Criteria	JORC Code explanation	Commentary
geological structure	deposit type.  If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	perpendicular angle as possible (subject to access to the preferred collar position). MBDD017, MBDD017W1, MBDD017W2 were drilled predominantly for metallurgical purposes, and were drilled down the plunge of the mineralisation, consistent with its overriding purpose.
Sample security	 The measures taken to ensure sample security.	 The chain of custody is managed by the project geologist who places calico sample bags in polyweave sacks. Up to 5 calico sample bags are placed in each sack. Each sack is clearly labeled with: o Peel Mining Ltd o Address of laboratory o Sample range  Detailed records are kept of all samples that are dispatched, including details of chain of custody.
Audits or reviews	 The results of any audits or reviews of sampling techniques and data.	 Data is validated when loading into the database. No formal external audit has been conducted.

Table 1 - Section 2 - Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.  The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	 The Mallee Bull prospect is wholly located within Exploration Licence EL7461 “Gilgunnia”. The tenement is subject to a farm-in agreement (JV) with CBH Resources Ltd, a wholly owned subsidiary of Toho Zinc Co Ltd. Peel has a 70% interest in the tenement.  The tenement is in good standing and no known impediments exist.
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	 Work was completed in the area by former tenement holders Triako Resources between 2003 and 2009; it included diamond drilling, IP surveys, geological mapping and reconnaissance geochemical sampling around the historic Four Mile Goldfield area. Prior to Triako Resources, Pasminco Exploration explored the Cobar Basin area for a “Cobar-type” or “Elura-type” zinc-lead-silver or copper- gold-lead-zinc deposit.
Geology	 Deposit type, geological setting and style of mineralisation.	 The prospect area lies within the Cobar- Mt Hope Siluro-Devonian sedimentary and volcanic units. The northern Cobar region consists of predominantly sedimentary units with tuffaceous member, whilst the southern Mt Hope region consists of predominantly felsic volcanic rocks; the Mallee Bull prospect seems to be located in an area of overlap

Peel Mining Limited ACN 119 343 734 Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. Fax (08) 9388 1025. E:rtyson@peelmining.com.au www.peelmining.com.au

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Criteria	JORC Code explanation	Commentary
		between these two regions. Mineralization at the Mallee Bull discovery features the Cobar-style attributes of short strike lengths (<200m), narrow widths (5-20m) and vertical continuity, and occurs as a shoot-like structure dippingmoderatelyto the west.
Drill hole Information	 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length.  If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	 Refer to Annexure 1 in the body of text.
Data aggregation methods	 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.  Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.  The assumptions used for any reporting of metal equivalent values should be clearly stated.	 No length weighting or top-cuts have been applied.  No metal equivalent values are used for reporting exploration results.
Relationship between mineralisation widths and intercept lengths	 These relationships are particularly important in the reporting of Exploration Results.  If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.  If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not _known’). _	 True widths are generally estimated to be about 60% of the downhole width, except for MBDD017 where no true width is determinable because of the down-dip nature of the drillhole.
Diagrams	 Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	 Refer to Figures in the body of text.
Balanced reporting	 Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should	 All results are reported.

Peel Mining Limited ACN 119 343 734 Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. Fax (08) 9388 1025. E:rtyson@peelmining.com.au www.peelmining.com.au

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Criteria	JORC Code explanation	Commentary
	be practiced to avoid misleading reporting of Exploration Results.
Other substantive exploration data	 Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	 No other substantive exploration data are available.
Further work	 The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).  Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	 Future work at Mallee Bull will include diamond drilling to further define the extent of mineralization at the prospect. Infill drilling has started and planned to continue, with the aim of defining a JORC code complaint resource. Down hole electromagnetic (DHEM) surveys will be used to identify potential conductive sources that may be related to mineralization.

Peel Mining Limited ACN 119 343 734 Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. Fax (08) 9388 1025. E:rtyson@peelmining.com.au www.peelmining.com.au