PEEL MINING LIMITED — Capital/Financing Update 2017

Apr 10, 2017

11[th] APRIL 2017

ASX ANNOUNCEMENT

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WIRLONG INTERCEPT RETURNS 17m @ 4.59% COPPER

• WLRCDD043 returns 17m @ 4.59% Cu, 8 g/t Ag from 738m

• High-grade copper mineralisation defined from near surface to ~600m below surface

• Drillhole WLRCDD044, designed to test down-dip from WLRCDD043, continuing

• Offhole geophysical anomaly north of WLRCDD043 represents likely extensions to copper mineralisation

Peel Mining (ASX:PEX) (“Peel”, “the Company”) is pleased to confirm the best copper intercept reported to date at its 60%-owned Wirlong prospect near Cobar in western NSW. The intercept of 17m @ 4.59% Cu and 8g/t Ag from 738m was returned from drillhole WLRRCDD043 and has extended the down-dip continuity of strong copper mineralisation at Wirlong to ~600m below surface.

Drilling

Drillhole WLRCDD043 intersected very strong copper mineralisation comprising 17m @ 4.59% Cu, 8 g/t Ag from 738m , extending the down-dip continuity of strong copper mineralisation to ~600m below surface. Significant assay intervals for WLRCDD043 are included in Table 2 below. The true width of mineralisation is interpreted to be ~14m. Logging and assaying of the mineralisation shows very pure chalcopyrite with only minor accessory pyrrhotite and pyrite sulphides.

Significantly, a substantial “offhole” downhole electromagnetic geophysical anomaly centred north of WLRCDD043 points to possible extensions to substantial copper mineralisation. The encouraging indications from WLRCDD043 prompted the decision to drill another hole, WLRCDD044, testing downdip from WLRCDD043, which is continuing at the time of reporting.

Phase four investigations at Wirlong commenced in late 2016. The most recent drilling at Wirlong has seen the completion of five RC drillholes (WLRC038 to WLRC042 for 2,150m) and one RC precollar/diamond tail drillhole (WLRCDD043 for 891.6m). The majority of the programme (drillholes WLRC038-WLRC042) was designed to test for mineralisation along strike from recent important copper intersections and, encouragingly, all drillholes intersected copper mineralisation (see ASX announcement 21 March 2017).

Drillhole WLRCDD043 was designed to test for mineralisation at ~600m below surface, down dip of previous high-grade intersections including: 4.9m @ 4.3% Cu, 13 g/t Ag from 402.1m and 22m @ 1.0% Cu, 4 g/t Ag from 332m in WLRCDD015; 9m @ 8.0% Cu, 17 g/t Ag, 0.21 g/t Au from 616m and 38m @ 1.18% Cu, 4 g/t Ag from 450m in WLDDD001; 26m @ 1.21% Cu, 5 g/t Ag from 227m in WLRCDD024 and 9m @ 3.29% Cu, 0.60% Zn, 18 g/t Ag from 70m in WLRC035 .

Testing for Cobar-style mineralisation at Wirlong

The recent drilling at Wirlong is part of ongoing investigations into the potential for Peel’s NSW tenure to host Cobar-style deposits. Cobar-style deposits are renowned for vertical continuity of mineralisation. Australia’s highest grade copper mine, the CSA mine, is an example of a Cobar-style deposit, showing strong vertical development of mineralisation to more ~2,000m below surface. CSA has produced over one million tonnes of copper since commencement of modern mining in ~1965. Whilst substantively more investigation is required, indications of a Cobar-style analogue for Wirlong are promising.

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

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1.89% Cu, 4 g/t Ag
10.75% Cu, 21 g/t Ag
N.S.A.
5.98% Cu, 10 g/t Ag
1.92% Cu, 3 g/t Ag
9.75% Cu, 3 g/t Ag
4.28% Cu, 6 g/t Ag
5.13% Cu, 8 g/t Ag
2.11% Cu, 4 g/t Ag
0.61% Cu, 1 g/t Ag
0.85% Cu, 1 g/t Ag
7.5% Cu, 11 g/t Ag
5.49% Cu, 10 g/t Ag
N.S.A.
12.15% Cu, 18 g/t Ag
8.23% Cu, 13 g/t Ag
1.33% Cu, 8 g/t Ag
Figure 1 - Chalcopyrite-dominant mineralisation in WLRCDD043 (738-755m)
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Peel Mining Limited ACN 119 343 734 Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. E:info@peelmining.com.au www.peelmining.com.au

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Wirlong background

Wirlong is defined by historic copper workings, a >2km multi-element geochemical anomaly, and various geophysical anomalies. The prospect is part of Peel’s Cobar Superbasin Project, subject to a farm-in agreement with Japan Oil, Gas, Metals National Corporation (JOGMEC). JOGMEC has earned a 40% interest through expenditure of $4 million, and is now earning a further 10% interest through an additional $3 million expenditure.

For further information, please contact:

Rob Tyson – Peel Mining Managing Director (+61 420 234 020). Luke Forrestal – Media + Capital Partners (+61 411 479 144).

Competent Persons Statements

The information in this report that relates to Exploration Results is based on information compiled by Rob Tyson who is a fulltime employee of the company. Mr Tyson is a member of the Australasian Institute of Mining and Metallurgy. Mr Tyson has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as Competent Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) 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 information in the form and context in which it appears. Exploration results are based on standard industry practices, including sampling, assay methods, and appropriate quality assurance quality control (QAQC) measures.

The information in this report that relates to the Mallee Bull Mineral Resource estimates, and reported by the Company in compliance with JORC 2012 in a market release dated 27 May 2014 is based on information compiled by Jonathon Abbott, a Competent Person who is a Member of the Australian Institute of Geoscientists. Jonathon Abbott is a full-time employee of MPR Geological Consultants Pty Ltd and is an independent consultant to Peel Mining Ltd. Mr Abbott has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Abbott consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. As at the date of this report, there has been no material changes to the Mallee Bull Resource estimates.

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

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9m @ 3.29% Cu,
18 g/t Ag
9m @ 8% Cu,
17 g/t Ag
17m @ 4.59% Cu,
4.9m @ 4.3% Cu,
13 g/t Ag 8 g/t Ag
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Figure 2 – Wirlong Plan (Copper Histogram/RTP Magnetics/DHEM Plates)

Peel Mining Limited ACN 119 343 734

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

www.peelmining.com.au

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9m @ 3.29% Cu, 18
g/t Ag (off-section)
4.9m @ 4.3% Cu,
13 g/t Ag
9m @ 8% Cu,
17 g/t Ag
17m @ 4.59% Cu,
8 g/t Ag
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Figure 3 – Wirlong Section 6446878N (Copper Histogram/VRMI Magnetics/DHEM Plates)

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

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9m @ 3.29% Cu,
18 g/t Ag
4.9m @ 4.3% Cu,
13 g/t Ag
9m @ 8% Cu,
17 g/t Ag
17m @ 4.59% Cu,
8 g/t Ag
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Figure 4 – Wirlong Long Section (Looking East - Copper Histogram/VRMI Magnetics)

Peel Mining Limited ACN 119 343 734

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

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Figure 5 – Wagga Tank Project Tenement Map

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

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Peel Mining Cobar Background

Peel Mining Ltd has been active in the Cobar Superbasin since March 2010. In that time, Peel has grown to become NSW’s predominant greenfield’s explorer, gaining the largest single company holding in the Cobar Superbasin.

The Mallee Bull Project/CBH JV (50% Peel) is centred on the namesake Mallee Bull copper deposit, discovered in August 2011. Mallee Bull represents one of the highest grade, undeveloped copper resources in Australia with a maiden resource estimate published in May 2014:

Cut off CuEq %	Category	Kt		Grade	Grade
			CuEq	Cu %	_Ag g/t _	_Aug/t _
1.0	Indicated	620	2.22	1.73	29.0	0.54
	Inferred	3,300	2.8	2.4	32	0.3
	Total	3,920	2.7	2.3	32	0.3

Upcoming activities at Mallee Bull are to include T1 met-testwork and scoping; as well as a resource update.

Peel (CSP) Pty Ltd/JOGMEC JV (Peel 60%; JOGMEC earning up to 50%) comprises 15 tenements covering ~2,500 sqkm. JOGMEC is earning up to 50% by up to $7m expenditure. Investigations so far have resulted in the discovery of a significant copper mineralised system at the Wirlong prospect. Wirlong has received minimal modern exploration and is defined by >2 km strike of sheared volcanics and sediments; large multi-element soil geochemical anomalies; and coincident/semi-coincident geophysical anomalies (K/Th radiometric, magnetic, IP, EM, gravity)

Drill highlights to date include:

• 9m @ 8.0% Cu, 17 g/t Ag, 0.21 g/t Au from 616m (incl. 2.82m @ 21.85% Cu, 46 g/t Ag, 0.62 g/t Au from 619.68m) and 38m @ 1.18% Cu, 4g/t Ag from 450m in WLDD001

• 4.9m @ 4.3% Cu, 13g/t Ag from 402.1m (incl. 0.9m @ 19.5% Cu, 58 g/t Ag from 402.1m) and 22m @ 1.0% Cu, 4g/t Ag from 332m in WLRC015

• 26m @ 1.21% Cu, 5 g/t Ag from 227m and 10m @ 1.01% Cu, 4 g/t Ag from 288m in WLRCDD024

• 9m @ 3.29% Cu, 18 g/t Ag from 70m in WLRC035

• Drilling currently ongoing

Wagga Tank (Peel 100%) is located ~130 km S of Cobar, ~50 km SW of Malle Bull. Effectively “landbanked” by majors since last drilling in 1989. Mineralisation is defined as a reactivated VHMS (or Sedex?) sulphide deposit. Mineralisation straddles the contact between volcaniclastics and siltstone-slates; broad zone of intense tectonic brecciation and hydrothermal alteration. 42 historic drillholes; highlights include:

• 32m @ 3.00 g/t Au, 24 g/t Ag from 10m

• 20m @ 3.11 g/t Au, 63 g/t Ag from 28m

• 25.9m @ 8.74% Zn, 3.39% Pb, 82 g/t Ag from 141.6m

• 15.7m @ 10.39% Zn, 4.43% Pb, 69 g/t Ag from 215.6m

• 24m @ 2.73% Cu, 0.56 g/t Au, 13 g/t Ag from 86m

• 20.3m @ 2.17% Cu, 0.76 g/t Au, 9 g/t Ag from 184.4m

Peel’s maiden 18-drillhole programme (7 drillholes require extension) targeting primary mineralisation confirms historic data; highlights include:

• 12m @ 3.09% Cu, 97 g/t Ag, 1.36 g/t Au from 92m

• 8m @ 8.54% Zn, 6.20% Pb, 134 g/t Ag, 1.45% Cu from 173m

• 27m @ 10% Zn, 6.41% Pb, 89 g/t Ag, 0.42 g/t Au, 0.21% Cu from 240m (eoh)

• 15m @ 8.5% Zn, 4.11% Pb, 114 g/t Ag, 1.57 g/t Au, 0.3% Cu from 280m

• 17m @ 2.65 g/t Au, 0.54% Cu, 11 g/t Ag from 211m (eoh)

• 16m @ 3.27 g/t Au, 0.35% Cu, 1.1% Zn, 0.57% Pb, 12 g/t Ag from 226m

Drilling and investigation at Wagga Tank is planned to resume in the coming June quarter.

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

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Table 1 – Wirlong Drill Collars

Hole ID	Northing	Easting	Dip	Azi	Max Depth(m)
WLRC038	6446975	418106	-52	81	475
WLRC039	6447128	418348	-49	85	366
WLRC040	6446633	418142	-51	80	451
WLRC041	6446639	418140	-51	60	522
WLRC042	6446505	418198	-50	82	335.6
WLRCDD043	6446800	417837	-61	63	891.6
WLRCDD044	6446860	417680	-70	65	Underway

Table 2 – Wirlong Significant Assays (>0.5% Cu, Pb, Zn)

Hole ID	From m	To m	**Ag ppm **	**Auppm **	**Cuppm **	Pbppm	**Znppm **
WLRCDD043	576	577	4	0.01	3960	2860	8460
WLRCDD043	670	671	1.6	0.04	213	1200	7480
WLRCDD043	699	700	1.7	0.11	5660	107	79
WLRCDD043	725	726	2.3	0.08	14700	64	311
WLRCDD043	726	727	3	0.09	19250	84	445
WLRCDD043	727	728	6.2	0.09	25600	511	657
WLRCDD043	733	734	2.8	0.01	17250	28	418
WLRCDD043	738	739	4	-0.01	18900	272	905
WLRCDD043	739	740	20.7	-0.01	107500	270	3160
WLRCDD043	741	742	9.5	-0.01	59800	8	1180
WLRCDD043	742	743	3	-0.01	19150	8	476
WLRCDD043	743	744	15.1	0.06	97500	214	1830
WLRCDD043	744	745	6.2	0.01	42800	36	623
WLRCDD043	745	746	8.3	0.02	51300	30	486
WLRCDD043	746	747	3.5	0.01	21100	14	259
WLRCDD043	747	748	1	-0.01	6100	9	158
WLRCDD043	748	749	1.4	-0.01	8470	29	179
WLRCDD043	749	750	11.2	0.01	75000	85	897
WLRCDD043	750	751	9.8	0.01	54900	73	830
WLRCDD043	752	753	18.3	0.07	121500	122	2190
WLRCDD043	753	754	12.6	0.06	82300	225	1430
WLRCDD043	754	755	3.3	-0.01	13300	210	386
WLRCDD043	761	762	0.8	0.01	5570	7	89
WLRCDD043	763	764	1.4	0.01	8850	9	333
WLRCDD043	780	781	30.8	0.05	18700	10050	19050
WLRCDD043	781	782	20	0.03	6030	16950	52300
WLRCDD043	782	783	3.4	0.01	1355	2090	5860
WLRCDD043	783	784	10	0.01	2630	10350	6140
WLRCDD043	784	785	15.1	0.04	2430	12800	27500

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

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Table 1 - Section 1: Sampling Techniques and Data for Mallee Bull/Cobar Superbasin/Wagga Tank Projects

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 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.  Multi-element readings were taken of the diamond core and RC drill chips using an Olympus Delta Innov-X portable XRF tool. Portable XRF tools are routinely serviced, calibrated and checked against blanks/standards.
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, reverse circulation and rotary air blast. Reverse circulation drilling utilised a 5 1/2 inch diameter hammer. A blade bit was predominantly used for RAB drilling. NQ and HQ coring was used for diamond drilling.
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  RC and RAB 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 at Wirlong and Mallee Bull to date have generally been high.  Sample recoveries at Wagga Tank have been variable with broken ground occurringinplaces andpoorer sample

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

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Criteria	JORC Code explanation	Commentary
		recoveries encountered. Insufficient data is available at present to determine if a relationship 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, RC and RAB samples records lithology, mineralogy, mineralisation, structure (DDH only), weathering, colour and other features of the samples. Core is photographed as both wet and dry.  All diamond, RC drill holes in the current program were geologically logged in full except at Wagga Tank where logging is still underway.
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 rigs were 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 maximise 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 mineralisation.
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 controlprocedures adopted(eg	 ALS Laboratory Services were used for Au and multi-element analysis work carried on out on 3m to 6m composite samples and 1m split samples. The laboratory techniques below are for all samples submitted to ALS and are considered appropriate for the style of mineralisation defined at Mallee Bull: o PUL-23(Samplepreparation

Peel Mining Limited ACN 119 343 734 Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. E:info@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.	code) o Au-AA25 Ore Grade Au 30g FA AA Finish, Au-AA26 Ore Grade Au 50g FA AA Finish o ME-ICP41 35 element aqua regia ICP-AES, with an appropriate Ore Grade base metal AA finish o ME-ICP61 33 element 4 acid digest ICP-AES, with an appropriate Ore Grade base metal AA finish o ME-MS61 48 element 4 acid digest ICP-MS and ICP-AES, with an appropriate Ore Grade base metal AA finish  Assaying of samples in the field was by portable XRF instrument Olympus Delta Innov-X Analyser. Reading time was 20 seconds per reading with a total 3 readings per sample.  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 pulverised. Duplicates for percussion drilling are collected directly from the drill rig or the metre 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 samples. Standard practice is for the GPS to be left at the site of the collar for a period of 5 minutes to obtain a steady reading. Collars are picked up after by DGPS. Down-hole surveys are conducted by the drill contractors using either a Reflex gyroscopic tool with readings every 10m after drill hole completion or 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 usinga test stand. The

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

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Criteria	JORC Code explanation	Commentary
		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 down-hole 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.  3m to 6m sample compositing has been applied to RC drilling at Mallee Bull for gold and/or multi-element assay.
Orientation of data in relation to geological structure	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the 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.	 Most drillholes are planned to intersect the interpreted mineralised structures/lodes as near to a perpendicular angle as possible (subject to access to the preferred collar position).
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 labelled 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 for Mallee Bull/Cobar Superbasin/Wagga Tank Projects

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 50:50 Joint Venture with CBH Resources Ltd, a wholly owned subsidiary of Toho Zinc Co Ltd.  The Cobar Superbasin Project comprises of multiple exploration licences that are subject to a farm-in agreement with JOGMEC whereby JOGMEC can earn up to 50%.  The Wagga Tank Project comprises of EL6695, EL7226, EL7484 and EL7581 and are 100%-owned by Peel Mining Ltd, subject to 2% NSR royalty agreement with MMG Ltd.  The tenements are ingood standingand no

Peel Mining Limited ACN 119 343 734

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

www.peelmining.com.au

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Criteria	JORC Code explanation	Commentary
		known impediments exist.
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	 Work at Mallee Bull was completed in the area by several former tenement holders including 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.  Work at Wagga Tank was completed by multiple previous explorers including Newmont, Homestake, Amoco, Cyprus, Arimco,Golden Cross,Pasmico and MMG.
Geology	 Deposit type, geological setting and style of mineralisation.	 The Mallee Bull 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 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 dipping moderately to the west.  Wagga Tank, a volcanic-hosted massive sulphide (VHMS) deposit, is located ~130 km south of Cobar on the western edge of the Cobar Superbasin. The deposit is positioned at the western-most exposure of the Mt. Keenan Volcanics (Mt. Hope Group) where it is conformably overlain by a poorly-outcropping, distal turbidite sequence of carbonaceous slate and siltstone. Mineralisation is hosted in a sequence of rhyodacitic volcanic and associated volcaniclastic rocks comprising polymictic conglomerate, sandstone, slate, crystal-lithic tuff and crystal tuff. This sequence faces northwest, strikes northeast-southwest and dips range from moderate westerly, to vertical, and locally overturned to the east. Mineralisation straddles the contact between the volcaniclastic facies and the siltstone-slate facies where there is a broad zone of intense tectonic brecciation and

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

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Criteria	JORC Code explanation	Commentary
		hydrothermal alteration (sericite-chlorite with local silicification).
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.	 All relevant information material to the understanding of exploration results has been included within the body of the announcement or as appendices.  No information has been excluded.
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 90-100% of the downhole width unless otherwise indicated.
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 be practiced to avoid misleading reporting of Exploration Results.	 All results are reported.
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	 No other substantive exploration data are available.

Peel Mining Limited ACN 119 343 734 www.peelmining.com.au

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

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Criteria	JORC Code explanation	Commentary
	characteristics; potential deleterious or contaminating substances.
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 and Cobar Superbasin Project will include geophysical surveying and RC/diamond drilling to further define the extent of mineralisation at the prospects. Down hole electromagnetic (DHEM) surveys will be used to identify potential conductive sources that may be related to mineralisation.  Drilling at Wagga Tank is continuing and geophysical surveys are alsoplanned.

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