PEEL MINING LIMITED — Capital/Financing Update 2014

Sep 21, 2014

ASX / MEDIA RELEASE

22 SEPTEMBER 2014

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PEEL AWARDED $193,500 FROM NSW GOVERNMENT FOR DRILLING AT SANDY CREEK, MUNDOE & ORANA

Peel Mining Ltd (“ Peel ”) is pleased to announce that it has been awarded a total of $193,500 under the NSW State Government’s New Frontiers Co-operative Drilling programme to help fund exploration at the Sandy Creek and Mundoe prospects within the Cobar Superbasin Project, and also at the Orana prospect near Ivanhoe, western NSW. The co-funding, on a dollar-for-dollar basis for direct drilling costs, is part of a NSW Government initiative to encourage innovative exploration in search of mineral deposits in areas of NSW not fully explored. Peel’s Mundoe and Sandy Creek prospects received cofunding commitments up to $72,250 and $67,250 respectively, and Orana $54,000.

The Mundoe prospect lies about 50km SSE of Gilgunnia and is defined by a 2km long multi-element geochemical anomaly proximal to a magnetic anomaly. Previous exploration has confirmed significant mineralisation to be present. In December 2012, Peel completed a 1,753m RC drilling programme, with better results including 13m @ 28 g/t Ag, 0.76% Cu from 106m in MURC003; and 19m @ 0.33 g/t Au from 8m, 23m @ 25 g/t Ag and 0.4% Cu from 129m in MURC005. Mineralisation at Mundoe remains open along strike and down-dip. See ASX announcement dated 8 January 2013 titled “Mundoe Drilling Confirms Copper-Polymetallic Mineralisation” for further information.

The Sandy Creek prospect is located about 20km NNE of Gilgunnia and is defined by historic workings, surface geochemical anomalies, coincident geophysical anomalies and significant drilling results. Drillhole SCDD002, drilled in 2003, returned 10.2m @ 1.6% Cu, 7.4% Pb, 68 g/t Ag from 521.8m. In August 2013, Peel completed a follow-up drillhole targeting a strong DHEM anomaly returning 4m @ 0.5% Cu, 9.63% Pb, 1.1% Zn and 48 g/t Ag from 493m. Mineralisation at Sandy Creek remains open in all directions. See ASX announcement dated 11 October 2013 titled “Exploration Update for Mallee Bull and Cobar Superbasin” for further information.

The Orana prospect is located about 30km NW of Ivanhoe, western NSW. The anomaly is defined by a strong “bulls-eye” magnetic anomaly located in the Murray Basin and buried under Quarternary cover. In 1983, a single RC drillhole was completed by CRA Exploration Pty Ltd to 127m before being abandoned due to the collapse of PVC casing. Drill chips at the bottom of hole were logged as a Devonian Acid Porphyry and showed insufficient magnetic susceptibility to explain the anomaly. A recommendation was made to redrill to 175m in order to fully test the modelled anomaly, however this drilling was not undertaken. Peel plans to complete a single drillhole to test the anomaly.

Peel’s Managing Director, Rob Tyson, said “The award of these grants by the New South Wales Government underlines the excellent prospectivity of Peel’s tenure and is a welcome initiative in the current funding climate. Peel is currently in the process of refining drilling programmes to utilise these funds, targeting previously identified anomalies, in the near future.”

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.

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