PEEL MINING LIMITED — Capital/Financing Update 2013

May 20, 2013

21 MAY 2013

==> picture [155 x 70] intentionally omitted <==

ASX / MEDIA RELEASE

PEEL ACQUIRES HIGH PRIORITY COBAR TARGET

Sandy Creek Project exhibits strong early-stage exploration similarities with Mallee Bull.

Peel Mining Limited (ASX: PEX) is pleased to announce it has reached agreement with private party Weddarla Pty Ltd to purchase a strategic exploration licence (EL7403 – Sandy Creek Project) located about 20 km north of the Mallee Bull copper-polymetallic deposit, and about 80 km south of Cobar, NSW.

A review of exploration data related to the namesake Sandy Creek prospect has highlighted strong similarities to results yielded from early-stage exploration at Mallee Bull including:

• Similar geological and structural environment.

• Coincident magnetic and electromagnetic anomalies including a strong downhole electromagnetic (DHEM) anomaly of about 30 milliseconds time constant.

• Strong geochemical anomalism including high-grade polymetallic historic drilling results.

Key Terms

The following is a summary of the acquisition terms agreed between Peel and Weddarla Pty Ltd:

• Peel to acquire a 100% interest in exploration licence EL7403.

• Peel to issue Weddarla Pty Ltd 1,250,000 PEX shares at $0.62 per share ($775,000) or an amount of PEX shares with a value equal to $775,000 at the completion date of 20 August 2013 or on the date that transfer of the title to Peel is completed. Peel has the right to pay up to 50% of the purchase consideration as cash.

• Weddarla to retain a 1.5% net smelter return (NSR) royalty.

• Consideration shares issued up to 1,250,000 shares are not subject to escrow while any shares issued greater than 1,250,000 but less than 2,000,000 are subject to a 3-month escrow and any shares issued greater than 2,000,000 are subject to a 6-month escrow.

The new tenement is presented on the plan included with this release.

For further information, please contact Rob Tyson on 0420 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.

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

==> picture [155 x 70] intentionally omitted <==

==> picture [454 x 644] intentionally omitted <==

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