PEEL MINING LIMITED — Capital/Financing Update 2017

Sep 7, 2017

8[TH ] SEPTEMBER 2017

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ASX / MEDIA RELEASE

PEEL SET TO UNLOCK APOLLO HILL VALUE THROUGH IPO

Peel Mining Limited (ASX:PEX) (“Peel”, “the Company”) is pleased to announce plans to vend its 100%-owned Apollo Hill Gold Project in Western Australia into a newly established, 100%-owned subsidiary, Saturn Metals Limited (Saturn), and list the subsidiary on the ASX via an initial public offering (Public Offer).

The Apollo Hill project is located 60km south-east of Leonora, comprises more than 996km[2 ] of granted tenure and applications and is centred on the advanced Apollo Hill gold deposit (see http://www.peelmining.com.au/projects/apollo-hill for more information).

Ahead of the planned listing, Peel’s 100%-owned subsidiary Apollo Mining Pty Ltd (Apollo), which holds the Apollo Hill assets, has entered into an agreement to sell its interest in the tenements and contractual rights and obligations to Saturn.

The proposed transaction will see Saturn issue to Peel, as Apollo’s nominee, 20,000,000 fully paid ordinary shares as consideration for the Apollo Hill assets. Following the sale, Saturn will look to undertake a capital raising via a Public Offer with a view to listing on the ASX. Under the Public Offer, Saturn will seek to raise up to $7,000,000 through the issue of up to 35,000,000 fully paid ordinary shares at an issue price of $0.20. Peel Mining Limited shareholders will be given a priority offer to take up shares in the new listing.

The Directors of Peel believe that by vending the assets into Saturn and floating the company, Apollo Hill will benefit significantly from reduced competition for capital and increased management attention. Peel will retain exposure to the upside potential at Apollo Hill through its direct equity holding, whilst being able to fully focus on the development and exploration of its exciting portfolio of projects in NSW.

Peel Managing Director Rob Tyson said: “ The Apollo Hill gold assets were originally acquired as the Company’s flagship assets, however the discovery of the Mallee Bull copper deposit in NS’s Cobar Basin effectively put Peel in the fortunate position of having two flagships. Over time, Peel’s attention has firmly fixed on the exciting potential of our landholding in Cobar. It is now time to unlock the inherent value in the wonderful Apollo Hill real estate by giving it a true life of its own .”

The Company intends to hold a General Meeting of shareholders, at 10.00am on 10[th] October 2017 to approve the disposal of the assets under ASX listing rule 11.4, prior to the commencement of the IPO process.

For further information, please contact:

Rob Tyson – Peel Mining Managing Director (+61 420 234 020).

Luke Forrestal – M+C Partners, Account Director (+61 417 479 144)

Peel Mining Limited ACN 119 343 734

tel: (08) 9385 3955. email info@peelmining.com.au

PO Box 849, West Perth WA 6872. Unit 1, 34 Kings Park Road, West Perth WA 6005 www.peelmining.com.au