PEEL MINING LIMITED — Capital/Financing Update 2013

Oct 10, 2013

11 OCTOBER 2013

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ASX / MEDIA RELEASE

EXPLORATION UPDATE – MALLEE BULL, COBAR SUPERBASIN

• Butcher’s Dog drillhole BDDD001 intercepts broad zone of pyrrhotite and chlorite alteration coincident with target downhole electromagnetic (DHEM) conductor plate; DHEM survey of BDDD001 identifies new very strong (170 milliseconds time constant) offhole conductor

• Magnetotellurics (MT) geophysics survey identifies new anomaly ~500m north of Mallee Bull; diamond drillhole underway

• Excellent preliminary metallurgical results for Mallee Bull stringer (footwall) mineralisation with ~25% copper-in-concentrate returned at 90-95% copper recovery

• Wirchilleba Station purchase (covering Mallee Bull footprint) completed

• Sandy Creek drillhole PSCDD001 targeting strong DHEM anomaly returns several broad zones of mineralisation/alteration with significant base metal intercepts returned including:

• 19m @ 16 g/t Ag, 0.33% Cu, 2.64% Pb, 0.31% Zn from 493m including;

  • 4m @ 48 g/t Ag, 0.50% Cu, 9.63% Pb, 1.1% Zn from 493m

Peel Mining is pleased to report that investigations at the Company’s flagship Mallee Bull project, and also at the Company’s 100%-owned Cobar Superbasin 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. Promising results continue to be received, with work funded by way of the Stage 3 earn-in requirement of the $8.33m farm-in agreement with CBH Resources Ltd.

Mallee Bull/Gilgunnia Project (PEX 70%, CBH 30% and earning up to 50%)

Recent activities at the Mallee Bull/Gilgunnia Project have comprised diamond and RAB drilling, various surface and downhole geophysical surveys, mineralogical and metallurgical studies and the purchase of part of Wirchilleba Station. See below for further information.

BDDD001 Drillhole (Butcher’s Dog) Summary

Drillhole BDDD001 was designed to test a strong DHEM offhole conductor recognised at the Butcher’s Dog prospect north of Mallee Bull. Butcher’s Dog is defined by coincident magnetic and electromagnetic anomalies and is located under the axis of a regional scale anticline; proximal to a northeasterly trending shear/structure mapped at Mallee Bull and intercepted in MBDD011. Drillhole BDDD001 (1223.4m) intercepted a broad zone of disseminated and veinlet pyrrhotite mineralisation coincident with variable chlorite alteration and minor/trace chalcopyrite/galena and sphalerite; commencing at ~800m downhole and continuing to the drillholes end. Assay results remain pending.

Follow-up DHEM surveying of BDDD001 indicates that the primary DHEM target was intersected and was associated with a zone of abundant pyrrhotite mineralisation and chlorite alteration. The DHEM survey also identified a new, very strong offhole anomaly (~170 millisecond time constant) beneath PSCDD001’s drillhole position. Peel is encouraged by the very broad pyrrhotite and chlorite alteration returned in the drillhole and notes that disseminated pyrrhotite alteration halos can be associated with Cobar-style deposits and is a characteristic of Mallee bull. Follow-up work is planned.

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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New strong offhole
conductor (170 ms)
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Figure 1 – BDDD001 Oblique Section showing alteration and DHEM plates

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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RFDD001 Drillhole Summary

Drillhole RFDD001 (524.9m) was designed to test a coincident geochemical and stratigraphic target located on the eastern flank of the Mallee Bull anticline at the Rabbits Foot prospect, approximately 1km east of Mallee Bull. RFDD001 intercepted a thick zone of volcaniclastic material with variable pyrrhotite alteration and minor sphalerite and galena mineralisation. Assay results remain pending

MBDD012 Drillhole Summary

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. Galena, sphalerite and pyrite are known to be poor conductors and therefore any conductor in close proximity to this zone is potentially prospective.

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. Assay results remain pending.

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Figure 2 – Mallee Bull/Butcher’s Dog Geology and Drillhole Location Plan

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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Geophysics

A substantial programme of high-powered DHEM surveying utilising the DigiAtlantis receiver sensor has been completed at Mallee Bull and Butchers Dog recently, with additional surveys now underway. At Mallee Bull, DHEM has confirmed the general geometry of mineralisation encountered to date and has identified a strong offhole anomaly off MBDD010 for follow-up drill testing. As previously mentioned, DHEM of BDDD001 identified a new, very strong offhole anomaly beneath PSCDD001’s drillhole position.

A magnetotelluric (MT) geophysical survey was also completed recently over the Mallee Bull and Butcher’s Dog prospects. MT is a deep penetrating geophysical technique and has proven successful in detecting mineralisation at other Cobar Basin deposits (CSA and Elura mines). Preliminary 2D review of the data indicates that it successfully identified the Mallee Bull deposit, and has also identified a new anomaly located approximately 500m north of Mallee Bull. Drillhole MBDD013 is now underway targeting this anomaly. 3D modelling of the MT data is also underway.

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MT anomaly
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Figure 3 – Mallee Bull North MT 2D Section

A downhole magnetometric resistivity (MMR) geophysical survey was also completed in drillhole MBDD007 at Mallee Bull recently. Interpretation of the MMR data defined several conductive sources with data correlating well with DHEM modelling and the known Mallee Bull mineralisation as defined by drilling to date.

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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RAB Drilling

A programme of close-spaced angled rotary air blast (RAB) drilling was designed to cross the nose of the regional anticline near Mallee Bull targeting a magnetic anomaly located in this area and also to test near historic workings of the Four Mile gold field. The concept was to test for a shallow gold deposit using the nearby May Day gold mine as an analogue. May Day was originally worked as an underground copper-lead-zinc deposit before a shallow open cut gold operation was developed in the late 1990s. Generally low gold values were returned, however elevated base metals and pathfinder elements (as shown by portable XRF) were returned from several drillholes in close proximity to Mallee Bull. Follow-up work is planned.

Mallee Bull Mineralogy and Metallurgy

Two sets of core intervals from MBDD009W2W1 were sent to ALS Metallurgy in Burnie, Tasmania for initial flotation and particle mineralogy assessment. These sets represented the two dominant styles of mineralisation identified at Mallee Bull to date, i.e. Stringer Sulphide (or footwall lode) and the Massive Sulphide or (hangingwall lode). It is estimated that Stringer Sulphide mineralisation accounts for approximately 80% of all mineralisation intercepted to date whilst the Massive Sulphides account for the balance (20%).

Mineralogical assessments show two very different sulphide textures:

• The Stringer Sulphide mineralisation contains only traces of pyrite or pyrrhotite and is some 85% volume non-sulphide gangue. Chalcopyrite shows excellent liberation from nonsulphides and the minor arsenopyrite present. At a grind p80=106um the 50% liberation size for chalcopyrite is 150um.

• The Massive Sulphide mineralisation contains some 60% volume of pyrite and pyrrhotite (9:1 ratio) with around 35% volume of non-sulphide gangue. Minor presence of sphalerite and galena with chalcopyrite at around 1% of volume. The chalcopyrite shows strong association with pyrite to fine size. At a grind of p80=106um the chalcopyrite has a 50% liberation size of some 38um. (Above 38um Cp is <50% liberated and below 38um is >50% liberated.)

The Stringer Sulphide composite yielded excellent flotation results with concentrates of ~25% copper at a recovery between 90-95% returned from testwork. Further assessments to define an overall grade and recovery after cleaning are planned.

The Massive Sulphide composite demonstrated reduced recovery and grade from roughing floats due largely to the strong association of pyrite and chalcopyrite. It is noted that Massive Sulphide mineralisation intercepted to date has shown considerable variability; from base-metal rich to basemetal poor; and the sample sent for testwork fits the latter category. Further assessments using stronger pyrite depression routines in roughing, and a variety of Massive Sulphide mineralisation are planned.

Peel is highly encouraged by these results, as they indicate that the bulk of mineralisation at Mallee Bull as defined by drilling to date (i.e. Stringer Sulphide) is potentially recoverable via simple metallurgical processes.

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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Wirchilleba Station Settlement

Peel recently completed the purchase of part of Wirchilleba Station in accordance with an option agreement executed in April 2012. Consideration for Western Lands Lease 3456, comprising 7,974 hectares, was $800,000. Peel purchased the property to secure long-term access and to assist in fasttracking future development at Mallee Bull.

Cobar Superbasin Project (PEX 100%)

Progress of Peel’s 100%-owned Cobar Superbasin project (including Sandy Creek) is continuing with recent activities comprising diamond drilling, surface and downhole geophysical surveys, surface geochemical surveys and geological mapping. See below for further information.

PSCDD001 Drillhole (Sandy Creek) Summary

Drillhole PSCDD001 (639.2m) was recently completed at the newly acquired Sandy Creek project targeting the namesake Sandy Creek prospect. Drillhole PSCDD001 was designed to test a strong DHEM offhole conductor and intersected several broad zones of mineralisation/alteration including: a 25m zone of disseminated pyrrhotite-dominant sulphides from 237m; and a 19m zone of variable pyrrhotite-dominant sulphides from 493m including a 4m zone of strong galena-dominant mineralisation averaging 48 g/t Ag, 0.50% Cu, 9.63% Pb, 1.1% Zn from 493m. The true width of these intercepts is estimated to be close to the downhole intercept.

Follow-up high-powered DHEM indicates that the anomaly remains open in multiple directions. PSCDD001 confirms the potential of Sandy Creek to host economic mineralisation and Peel notes that Sandy Creek bares many similarities to Mallee Bull at an early stage of exploration.

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Figure 4 – Sandy Creek Section 6435030N

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 5 – Sandy Creek Geology and Drill Location Plan

Other Cobar Superbasin Activity

An extensive review of historical data and preliminary field work has been undertaken on Peel’s broader 100%-owned Cobar Superbasin Project. This work has resulted in the definition of many prospects that warrant closer scrutiny. More than 7,000 multi-element portable XRF samples have been collected since exploration commenced with sampling interrupted due to an extended period of wet ground conditions over winter.

Eight prospects are now deemed as “priority one”; they are Bedooba, Tara, Tara 4, Burthong “S” Grid, Mundoe, A5 (Peel-4), Wirlong and Red Shaft. A priority one target has multiple characteristics similar to the known economic deposits of the Cobar Superbasin. Exploration of Peel’s Cobar Superbasin Project is continuing.

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 - Sandy Creek Significant Drill Assay Results

Hole ID	Northing	Easting	Azi	Dip	Final Depth (m)	From (m)	To (m)	Width (m)	Cu (%)	Ag (g/t)	Au (g/t)	Pb (%)	Zn (%)
PSCDD001	6435015	414940	090	-56	639.2	224	226	2	0.08	15	0.18	1.12	2.37
						237	262	25	-	4	-	0.41	0.89
						456	460	4	0.07	7	-	1.35	2.65
						473	475	2	-	3	-	0.89	1.09
						493	512	19	0.33	16	-	2.64	0.31
including						493	497	4	0.50	48	0.04	9.63	1.13

Table 2 – Mallee Bull/Butcher’s Dog/Rabbits Foot Diamond Drilling Collar Details

Hole ID	Northing	Easting	Azi	Dip	Final Depth (m)
MBDD012	6413470	415587	090	-60	483.3
MBDD013	6414013	415371	090	-70	Still underway
RFDD013	6413200	416304	270	-60	d 524.9

Table 3 – Mallee Bull RAB Collar Details

Hole ID	Northing	Easting	Azi	Dip	Final Depth (m)
MBRAB023	6412905	415737	360	-60	141
MBRAB024	6412955	415729	360	-60	114
MBRAB025	6413005	415731	360	-60	110
MBRAB026	6413069	415738	358	-60	100
MBRAB027	6413098	415742	360	-60	102
MBRAB028	6413135	415739	360	-60	105
MBRAB029	6413175	415739	360	-60	108
MBRAB030	6413218	415741	360	-60	144
MBRAB031	6413260	415747	360	-60	124
MBRAB032	6413301	415743	360	-60	103
MBRAB033	6413339	415738	360	-60	103
MBRAB034	6413382	415735	360	-60	102
MBRAB035	6413422	415734	360	-60	105
MBRAB036	6413466	415735	360	-60	106
MBRAB037	6413185	415979	270	-60	105
MBRAB038	6413182	415938	270	-60	124
MBRAB039	6413192	415899	270	-60	136
MBRAB040	6413181	415857	270	-60	149
MBRAB041	6413182	415818	270	-60	130
MBRAB042	6413182	415780	270	-60	67
MBRAB043	6413178	415700	90	-60	149
MBRAB044	6413181	415658	90	-60	149
MBRAB045	6413182	415623	90	-60	144
MBRAB046	6413179	415582	90	-60	149
MBRAB047	6413181	415538	90	-60	135

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	Northing	Easting	Azi	Dip	Final Depth (m)
MBRAB048	6413179	415501	90	-60	149
MBRAB049	6413178	415460	90	-60	137
MBRAB050	6413170	415416	90	-60	121
MBRAB051	6413173	415384	90	-60	150
MBRAB052	6413180	415341	90	-60	149
MBRAB053	6413179	415301	90	-60	148
MBRAB054	6413181	415259	90	-60	124

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 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 2004 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.

Information regarding drilling/assaying data

1. Drilling was completed as HQ or NQ diamond core, or RAB blade/percussion.

2. Sample recoveries were considered adequate for all samples.

3. Drillcore and drill chips have been logged in detail based on lithology, mineralisation, and alteration.

4. Samples for analysis were collected by sawing core in half, or by spear sampling RAB drill samples.

5. Samples were submitted as 1m or 4m composite half-core intervals, or as 5m composites for RAB drill samples.

6. Samples were analysed at ALS Chemex utilising methods: Au‐AA25 for Au (fire assay); ME‐ICP41, ME-ICP61 or ME MS61 for multielement including Ag, Cu, Pb, Zn; Ag-OG46 for >100 g/t Ag; Cu-OG46 for >1% Cu; Pb-OG46 for >1% Pb; and Zn-OG46 for >1% Zn. RAB multi-element analysis was completed using an Innovex portable XRF.

7. Diamond drillhole collars were surveyed by DGPS (GDA94) and downhole gyroscopic surveys were run continuously. RAB drillholes were surveyed using a Garmin 62 GPS.

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