rd JANUARY 2018

SOUTHERN NIGHTS SURGES WITH MULTIPLE HIGH-GRADE HITS

New high-grade zinc-lead-silver-gold intercepts returned, with better assays including:
- o 46m @ 17.01% Zn, 9.57% Pb, 272 g/t Ag, 1.22 g/t Au from 201m in WTRCDD033, including 16m @ 25.66% Zn, 15.01% Pb, 361 g/t Ag, 0.86 g/t Au from 218m; and 10m @ 31.45% Zn, 16.92% Pb, 590 g/t Ag, 3.2 g/t Au from 237m
- o 29m @ 6.10% Zn, 1.08% Pb, 0.6% Cu, 22 g/t Ag, 0.55 g/t Au from 204m in WTRCDD043
- o 10m @ 6.01% Zn, 3.09% Pb, 85 g/t Ag, 0.21 g/t Au from 234m* in WTRC061
- o 8m @ 15.21% Zn, 4.93% Pb, 179 g/t Ag, 0.43 g/t Au from 215m* in WTRCDD062
- o 18m @ 8.58% Zn, 3.02% Pb, 40 g/t Ag, 0.08 g/t Au from 180m in WTRC063
- o 6m @ 3.38% Zn, 1.38% Pb, 1399 g/t Ag, 2.22 g/t Au from 181m* in WTRC064
- o 14m @ 5.28% Zn, 1.81% Pb, 87 g/t Ag, 0.09 g/t Au from 215m in WTRC065
- o 11m @ 4.31% Zn, 2.04% Pb, 110 g/t Ag, 0.19 g/t Au from 192m in WTRC066
- o 7m @ 2.98% Zn, 0.83% Pb, 0.16% Cu, 68 g/t Ag, 0.62 g/t Au from 174m* in WTRC076
Resumption of field activities with 3 drill rigs at Wagga Tank/Southern Nights; 1 drill rig at Wirlong; 2 geophysical crews (IP and gravity)
High-grade mineralisation defined over >300m strike; open in all directions
Anomalous Zn-Pb in RAB drilling over >2.7km strike; open in all directions
Significant mineralisation intercepted between Southern Nights and Wagga Tank

Figure 1: WTRCDD033 - 229m: Pale brown sphalerite + galena + minor chalcopyrite, with black chloritic mudstone.

Peel Mining (ASX:PEX) ("Peel" or the "Company") is pleased to report that recent results from its 100% owned Wagga Tank/Southern Nights project, south of Cobar in western New South Wales, reinforce the view that it has discovered a major high-grade zinc-rich mineral system. Assay results recently received from drilling undertaken prior to the Christmas/New Year break underscore the extensive and high-grade nature of zinc-lead-silver-gold mineralisation present at the Southern Nights prospect.

As previously reported, a diamond tail extension to drillhole WTRCDD033 intersected spectacular massive sphalerite-galena sulphide mineralisation. Assay results have confirmed that WTRCDD033 ranks as Peel's best-ever drillhole intercept, having returned 46m @ 17.01% Zn, 9.57% Pb, 272 g/t Ag, 1.22 g/t Au from 201m. This mineralisation is in addition to that previously reported – 92m @ 2.81% Zn, 0.98% Pb, 19 g/t Ag, 0.2 g/t Au from 108m, including 9m @ 8.84% Zn, 2.07% Pb, 14 g/t Ag, 0.58 g/t Au from 188m (see ASX announcement 30 October 2017).

Following a shutdown for the Christmas/New Year holidays, field activities have recommenced. Drilling at Southern Nights is continuing, with two double shift diamond rigs currently working. First-pass RC drilling at Fenceline/The Bird prospect, located ~5km east of Wagga Tank/Southern Nights, has also recently commenced, while a fourth RC/diamond rig has resumed drilling at the Wirlong prospect (JOGMEC Farm-in/JV). In addition, 2 geophysical crews (IP and gravity) are working in the Wagga Tank/ Southern Nights area.

In-line with recent results, Peel has begun planning for a systematic resource drill-out of the Southern Nights area. First pass metallurgical testwork is also anticipated to commence over the coming weeks.

Southern Nights Drilling

Southern Nights, located ~1km south of the high-grade (Zn-Pb-Ag-Au-Cu) Wagga Tank deposit, was identified in September 2017 by drillhole WTRCDD021 (456.6m) as hosting significant Wagga Tankstyle mineralisation. Follow-up drilling undertaken since mid-October has focused on testing the strike and depth potential of mineralisation. As of 22 January, 33 RC drillholes (for 7,448m), 13 RC/diamond drillholes (for 4,660.3m), 1 diamond drillhole (for 315.4m), and 103 RAB drillholes (for 8,637m) had been completed as part of this program. At least 12 RC drillholes require diamond tails.

An expanded drilling programme at Southern Nights commenced in November 2017, with multiple RAB, RC and diamond rigs. Recent work has been designed to target the contact between the Wagga Tank and Vivigani stratigraphic units, where significant Zn-Pb-Ag-Au mineralisation is known to occur. The bulk of recent RC and diamond drilling has been focused at the main Southern Nights area where high-grade mineralisation has been identified over ~300m strike. RAB drilling has been designed to test for geochemical anomalism and to attempt to locate the contact between the Wagga Tank and Vivigani stratigraphic units. RAB drilling has extended the strike of Zn-Pb anomalism to ~2.7km, with mineralisation open in all directions.

Interpretation of drilling at Southern Nights indicates a sub-vertical mineralised system, with a likely steep (70-80 degrees) westerly dip which implies true widths of between approximately 30-50% of the downhole intervals reported for all west-oriented (270 degree collar azimuth) drillholes, and between 70-90% for east-oriented (085/090 degree collar azimuth) drillholes. The most recent significant assay results received from Southern Nights to date are shown in Table 1 on the following page. Previously released significant results are listed in Table 2.

Table 1 - Southern Nights Latest Significant Assay Results
------------------------------------------------------------	--	--	--

Hole ID	From	To (m)	Width	Zn %	Pb %	Cu %	Ag (g/t)	Au (g/t)
	(m)		(m)
WTRCDD033	201	247	46	17.01	9.57	-	272	1.22
including	218	234	16	25.66	15.01	-	361	0.86
and including	237	247	10	31.45	16.92	-	590	3.2
WTRCDD042	188	192	4	2.82	1.09	-	5	0.27
and	216	221	5	1.59	0.54	-	9	0.06
and	257	261.3	4.3	1.18	0.53	-	3	-
WTRCDD043	203.2	297	93.8	3.35	0.59	0.42	14	0.4
including	204	233	29	6.10	1.08	0.60	22	0.55
and including	241	243	2	1.73	0.74	3.59	49	3.85
and including	245	250	5	5.26	0.38	0.61	16	0.36
and including	254	257	3	7.13	2.05	0.09	16	0.4
and	386	388	2	2.99	0.56	-	12	0.2
WTRC054	133	143	10	0.57	0.21	-	27	0.14
and	149	155	6	1.26	0.53	-	5	-
WTRC055	144	150	6	2.02	0.65	-	14	0.13
and	156	165	9	1.84	0.78	-	7	-
WTRC056	110	114	4	0.90	1.00	-	5	-
WTRC057	163	169	6	1.66	0.58	-	74	-
and	183	185	2	2.39	0.07	-	7	-
WTRCDD059	209	216*	7	1.52	0.25	-	13	-
WTRCDD060	208	218*	8	3.86	1.43	-	35	0.08
WTRC061	234	244*	10	6.01	3.09	-	85	0.21
including	239	240	1	39.3	20.7	0.05	470	0.55
WTRCDD062	215	223*	8	15.21	4.93	0.14	179	0.43
including	218	223*	5	20.26	5.59	0.19	206	0.54
WTRC063	180	198	18	8.58	3.02	-	40	0.08
including	181	187	6	22.56	8.16	0.10	92	0.07
WTRC064	181	187*	6	3.38	1.38	-	1399	2.22
WTRC065	213	253	40	2.99	1.03	-	40	-
including	215	229	14	5.28	1.81	-	87	0.09
WTRC066	192	223	31	2.72	1.17	-	44	0.07
including	192	203	11	4.31	2.04	-	110	0.19
and	232	242	10	1.56	0.25	-	3	-
and	248	263	15	1.62	0.25	-	6	0.06
WTRC067	224	233*	9	1.03	0.38	-	18	-
WTRC072	132	139	7	2.29	1.94	-	43	-
WTRC073	137	140	3	0.63	0.39	-	61	-
and	142	145	3	1.61	0.62	-	7	-
WTRC076	174	181*	7	2.98	0.83	0.16	68	0.62

* = end-of-hole or pre-collar

WTRCDD033 (501.4m) was collared 270 azi and was extended with a 301.4m diamond tail following an RC drillhole ending in mineralisation. WTRCDD033 returned 92m @ 2.81% Zn, 0.98% Pb, 19 g/t Ag, 0.2 g/t Au from 108m (including 9m @ 8.84% Zn, 2.07% Pb, 14 g/t Ag, 0.58 g/t Au from 188m) in the RC portion of the drillhole. The diamond tail intersected spectacular massive sphalerite-galena-pyrite sulphide mineralisation returning 46m @ 17.01% Zn, 9.57% Pb, 272 g/t Ag and 1.22 g/t Au from 201m. The true width of this intercept is estimated at ~15m. The images below show the mineralised zone with relevant assay results:

		g/t, 0.46 g/t Au
			42.7% Zn, 21.7% Pb, 685 g/t Ag, 0.77 g/t
	42.8% Zn, 27% Pb, 585 g/t Ag, 0.68 g/t	Au
Au			35.2% Zn, 15.8% Pb, 689 g/t Ag, 0.6 g/t
		Au
			Au	13.4% Zn, 6.1% Pb, 200 g/t Ag, 0.29 g/t
			12.4% Zn, 9.9% Pb, 280 g/t Ag, 0.52 g/t
		Au
24.6% Zn, 15.9% Pb, 392 g/t Ag, 0.32 g/t
Au
	29.3% Zn, 15.3% Pb, 391 g/t Ag, 0.43 g/tAu
Au	24.2% Zn, 19.4% Pb, 427 g/t Ag, 0.55 g/t
			23.3% Zn, 22.0% Pb, 383 g/t Ag, 0.35 g/t
	Au		33.2% Zn, 17% Pb, 290 g/t Ag, 0.78 g/t
		Au

Next Steps

RC and diamond drilling at the Wagga Tank/Southern Nights project (including Fenceline/The Bird) has recommenced with up to 15,000m of RC/diamond drilling and up to 10,000m of RAB drilling planned over the coming months. Drilling will be designed for: resource estimation purposes; to continue to test for strike and dip extensions; and to test other targets in the general Wagga Tank area. Additional airborne and surface geophysical surveys are also planned to assist with targeting. First-pass metallurgical testwork is also planned.

Previous Results

Previous resultsreferred to herein have been extracted from previously released ASX announcements, most recently including "Drilling Success Continues at Wagga Tank and Wirlong"; "Exceptional Zinc-Rich Discovery at Wagga Tank"; "High-Grade Discovery Confirmed"; "New High-Grade Zinc Intercepts Expand Southern Nights"; and "Southern Nights Returns Further High-Grade Intercepts" published on 7 th September 2017; 19th & 30th October 2017, 13th November 2017 and 18th December 2017 respectively. Previous reports are available to view on www.peelmining.com.au and www.asx.com.au. Additional information regarding Wagga Tank is available in the Company's quarterly reports from September 2016 through to September 2017. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

Hole ID	From (m)	To (m)	Width (m)	Zn %	Pb %	Ag (g/t)	Au (g/t)
WTRCDD021	289	293	4	3.38	1.00	13	0.06
and	346	349	3	3.07	1.23	26	0.06
and	390	410	20	2.40	0.80	44	0.08
WTRC031	100	145	45	0.87	0.41	27	-
and	180	185*	5	2.23	0.51	28	0.12
WTRCDD033	108	200*	92	2.81	0.98	19	0.20
Including	139	197	58	3.88	1.19	28	0.28
including	188	197	9	8.84	2.07	14	0.58
WTRCDD035	127	145	18	3.45	1.11	38	0.05
and	190	216*	26	25.45	9.92	215	1.19
including	194	215	21	31.02	12.05	258	1.43
WTRC037	118	127	9	1.26	0.30	42	0.30
and	148	158	10	16.28	11.17	387	0.63
including	149	155	6	26.18	18.00	608	0.98
WTRC038	147	154	7	4.22	1.33	21	0.07
and	190	192	2	5.40	4.98	92	0.27
WTRC039	161	183	22	8.48	3.06	115	0.24
including	174	182	8	16.21	6.18	248	0.28
WTRCDD042	177	187*	10	2.83	0.96	9	0.20
WTRCDD043	195	203*	8	15.26	7.44	177	0.97
WTRC045	174	185	11	1.80	0.58	24	0.12
WTRC046	142	162	20	2.88	1.39	6	-
and	167	172	5	2.95	1.17	8	-
and	192	204	12	4.48	1.88	20	-
including	193	200	7	6.34	2.70	24	-
WTRC047	111	195	84	2.03	0.73	20	-
including	185	192	7	6.34	1.51	119	-
WTRC048	194	250	56	1.44	0.49	6	-
WTRC049	182	211*	29	2.17	0.55	7	0.08
WTRC050	146	182	36	1.15	0.53	34	-
WTRC051	180	196	16	0.93	0.32	30	-
WTRC052	168	181	13	3.13	1.08	38	0.07
including	168	172	4	6.57	2.09	75	0.13
WTRC053	159	166	7	2.38	0.64	44	0.1

* = end-of-hole or pre-collar

For further information, please contact:

Rob Tyson – Peel Mining, Managing Director +61 (0)420 234 020 Luke Forrestal – M&C Partners, Account Director +61 (0)411 479 144

Table 3 – Southern Nights Drill Collars

Hole ID	Northing	Easting	Dip	Azi (grid)	Max Depth (m)
WTRC031	6386191	378621	-60	270	185
WTRC034	6386350	378577	-60	270	199
WTRC036	6386339	378501	-60	85	265
WTRC037	6386389	378620	-60	270	259
WTRC038	6386271	378620	-60	270	289
WTRC039	6386228	378624	-60	270	259
WTRC040	6386474	378625	-60	270	253
WTRC041	6386445	378619	-60	270	253
WTRC044	6386307	378397	-60	270	253
WTRC045	6386191	378606	-60	270	228
WTRC046	6386423	378654	-60	270	211
WTRC047	6386108	378620	-60	270	205
WTRC048	6386030	378620	-60	270	253
WTRC049	6385950	378620	-60	270	211
WTRC050	6385870	378620	-60	270	265
WTRC051	6385790	378620	-60	270	204
WTRC052	6386311	378430	-50	90	199
WTRC053	6386341	378442	-50	90	175
WTRC054	6386390	378470	-50	90	217
WTRC055	6386430	378500	-55	90	186
WTRC056	6386500	378540	-60	90	240
WTRC057	6386980	378580	-60	90	210
WTRC058	6386500	378500	-60	90	162
WTRC061	6386350	378400	-60	90	244
WTRC063	6386270	378420	-60	90	223
WTRC065	6386190	378420	-60	90	271
WTRC066	6386110	378420	-60	90	277
WTRC067	6386980	378520	-60	90	235
WTRC068	6386270	378380	-60	90	204
WTRC072	6386820	378520	-60	90	179
WTRC073	6386660	378500	-60	90	218
WTRC074	6386430	378420	-60	90	235
WTRC076	6386820	378480	-60	90	181
WTRCDD021	6386354	378698	-60	270	456.6
WTRCDD033	6386352	378620	-60	270	501.4
WTRCDD035	6386312	378620	-60	270	255.4
WTRCDD042	6386343	378442	-60	85	261.3
WTRCDD043	6386311	378425	-60	85	399.2
WTRCDD059	6386430	378460	-60	90	300.5
WTRCDD060	6386390	378430	-60	90	363.3
WTRCDD062	6386310	378380	-60	90	299.2
WTRCDD064	6386229	378423	-60	90	265.5
WTRCDD069	6386230	378381	-60	90	402.2
WTRCDD070	6386390	378380	-60	90	397.1
WTRCDD071	6386310	378340	-60	90	494.5
WTRCDD075	6386354	378362	-60	80	263.2*

* Denotes drilling continuing at time of reporting

Figure 1 – Wagga Tank/Southern Nights Plan (Zn/Pb Histogram/1VD Magnetics)

Peel Mining Limited ACN 119 343 734

Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. E: [email protected]

Figure 2 – Southern Nights Section 6386370N (Zn/Pb Histogram)

Figure 3 – Southern Nights Long Section (Zn/Pb Histogram)

Wagga Tank Background

Wagga Tank 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. Mineralisation straddles the contact between the volcaniclastic facies and the siltstone-slate facies where there is a broad zone of intense tectonic brecciation and hydrothermal alteration (sericitechlorite with local silicification). Mineralisation is believed to sub-vertical in nature.

Mineralisation at Wagga Tank comprises a near surface oxide gold zone, a possible supergene-enriched copper-gold-silver zone, and a primary zinc-lead-silver -rich massive sulphide zone starting at the base of oxidation (~120m below surface). Historic drilling comprised 20 percussion drillholes and 22 diamond drillholes (some completed as percussion pre-collar/diamond tail combinations). All drillholes intersected mineralisation to some degree, with 24 intercepting significant values including:

32m @ 3.00 g/t Au, 24 g/t Ag from 10m
20m @ 3.11 g/t Au, 63 g/t Ag from 28m
30m @ 1.93 g/t Au 24 g/t Ag from 8m
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
18.15m @ 5.86% Zn, 3.00% Pb, 32 g/t Ag, 1.01 g/t Au from 222.85m
24m @2.73% Cu, 0.56 g/t Au, 13 g/t Ag from 86m

Peel Mining Limited ACN 119 343 734

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

20.3m @ 2.17% Cu, 0.76 g/t Au, 9 g/t Ag from 184.4m
13.55m @ 4.6% Cu, 1.14 g/t Au, 470 g/t Ag from 119.75m

At The Bird (Fenceline) prospect (approx. 4km East of Wagga Tank), a similar geological environment to Wagga Tank is believed to exist, along with significant historic drill intercepts being reported:

6m @ 5.4% Zn, 3.9% Pb, 44 g/t Ag, 0.83 g/t Au from 84m
10m @ 2.3 g/t Au from 80m
13.9m @ 12.4% Pb, 1.3% Zn, 64 g/t Ag, 2 g/t Au from 118.2m
9m @ 4.9% Pb, 3.1% Zn, 1.1 g/t Au from 118m

In 2016, Peel acquired 100% of the Wagga Tank licences in a non-dilutive acquisition for $40k and 2% NSR. No significant exploration including drilling has occurred since 1989. In late 2016, Peel commenced a maiden 18-drillhole programme designed to confirm historic drill data; highlights have included:

27m @ 10.00% Zn, 6.41% Pb, 89 g/t Ag, 0.42 g/t Au, 0.21% Cu from 240m
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
13m @ 3.34 g/t Au, 0.83% Cu, 0.77% Zn, 0.28% Pb, 20 g/t Ag from 299m
15m @ 8.5% Zn, 4.11% Pb, 114 g/t Ag, 1.57 g/t Au, 0.3% Cu from 280m
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
25m @ 1.07% Cu, 8 g/t Ag, 0.27 g/t Au from 208m
33m @ 1.01% Cu, 0.27 g/t Au from 120m
5m @ 6.60% Zn, 2.30% Pb, 55 g/t Ag, 0.40% Cu, 0.34 g/t Au from 295m
7m @ 3.15 g/t Au, 1.1% Cu from 78m
11m @ 7.15% Zn, 2.31% Pb, 58 g/t Ag from 396m
6m @ 8.52% Zn, 2.97% Pb, 12 g/t Ag from 282m
6m @ 1.50% Cu from 92m

For further information, please see Peel's ASX quarterly reports commencing September 2016 through to September 2017.

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.

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

Criteria	JORC Code explanation	Commentary
Samplingtechniques	Nature and quality of sampling (eg cut channels,random chips, or specific specialised industrystandard measurement tools appropriate to theminerals under investigation, such as down holegamma sondes, or handheld XRF instruments, etc).These examples should not be taken as limiting thebroad meaning of sampling.Include reference to measures taken to ensuresamplerepresentivityandtheappropriatecalibration of any measurement tools or systemsused.Aspects of the determination of mineralisation thatare Material to the Public Report.In cases where 'industry standard' work has beendone this would be relatively simple (eg 'reversecirculation drilling was used to obtain 1 m samplesfrom which 3 kg was pulverised to produce a 30 gcharge for fire assay'). In other cases moreexplanation may be required, such as where there iscoarse gold that has inherent sampling problems.Unusual commodities or mineralisation types (egsubmarine nodules) may warrant disclosure ofdetailed information.	Diamond and reverse circulation (RC)drilling were used to obtain samples forgeological logging and assaying.Diamond core was cut and sampled at 1mintervals. RC drill holes were sampled at1m intervals and split using a cone splitterattached to the cyclone to generate a splitof 2-4kg to ensure sample representivity.Multi-element readings were taken of thediamond core and RC drill chips using anOlympusDeltaInnov-XportableXRFmachine or an Olympus Vanta portableXRF machine. Portable XRF machines areroutinely serviced, calibrated and checkedagainst blanks/standards.
Drillingtechniques	Drill type (eg core, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic, etc)and details (eg core diameter, triple or standardtube, depth of diamond tails, face-sampling bit orother type, whether core is oriented and if so, bywhat method, etc).	Drilling to date has been a combination ofdiamond, reverse circulation and rotary airblast. Reverse circulation drilling utilised a5 1/2 inch diameter hammer. A blade bitwas predominantly used for RAB drilling.NQ and HQ coring was used for diamonddrilling.
Drillsamplerecovery	Method of recording and assessing core and chipsample recoveries and results assessed.Measures taken to maximise sample recovery andensure representative nature of the samples.Whether a relationship exists between samplerecovery and grade and whether sample bias mayhave occurred due to preferential loss/gain offine/coarse material.	Core recoveries are recorded by the drillersin the field at the time of drilling andchecked by a geologist or technicianRC and RAB samples are not weighed on aregular basis due to the exploration natureofdrillingbutnosignificantsamplerecovery issues have been encountered ina drilling program to date.Diamondcoreisreconstructedintocontinuous runs on an angle iron cradle fororientationmarkinganddepthsarechecked against the depths recorded oncore blocks. Rod counts are routinelyundertaken by drillers.Whenpoorsamplerecoveryisencountered during drilling, the geologistand driller have endeavoured to rectify theproblem to ensure maximum samplerecovery.Sample recoveries at Wirlong and MalleeBull to date have generally been high.Sample recoveries at Wagga Tank havebeenvariablewithbrokengroundoccurring in places and poorer samplerecoveries encountered. Insufficient data

Criteria	JORC Code explanation	Commentary
Logging	Whethercoreandchipsampleshavebeen	is available at present to determine if arelationship exists between recovery andgrade. This will be assessed once astatisticallyvalidamountofdataisavailable to make a determination.Sample recoveries at Southern Nights havebeen generally high to date.Allcoreanddrillchipsamplesare
	geologically and geotechnically logged to a level ofdetail to support appropriate Mineral Resourceestimation,miningstudiesandmetallurgicalstudies.Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc) photography.The total length and percentage of the relevantintersections logged.	geologically logged. Core samples areorientated and logged for geotechnicalinformation. Drill chip samples are loggedat 1m intervals from surface to the bottomof each individual hole to a level that willsupportappropriatefutureMineralResource studies.Logging of diamond core, RC and RABsamples records lithology, mineralogy,mineralisation,structure(DDHonly),weathering, colour and other features ofthe samples. Core is photographed as bothwet and dry.All diamond, RC drill holes in the currentprogram were geologically logged in fullexcept at Wagga Tank where logging is stillunderway.
Sub-samplingtechniquesandsamplepreparation	If core, whether cut or sawn and whether quarter,half or all core taken.If non-core, whether riffled, tube sampled, rotarysplit, etc and whether sampled wet or dry.For all sample types, the nature, quality andappropriatenessofthesamplepreparationtechnique.Quality control procedures adopted for all subsampling stages to maximise representivity ofsamples.Measures taken to ensure that the sampling isrepresentative of the in-situmaterial collected,includingforinstanceresultsforfieldduplicate/second-half sampling.Whether sample sizes are appropriate to the grainsize of the material being sampled.	Drill core was cut with a core saw and halfcore taken.The RC drilling rigs were equipped with anin-built cyclone and splitting system, whichprovidedonebulksampleofapproximately 20kg and a sub-sample of 2-4kg per metre drilled.All samples were split using the systemdescribed above to maximise and maintainconsistent representivity. The majority ofsamples were dry.Bulk samples were placed in green plasticbags, with the sub-samples collectedplaced in calico sample bagsField duplicates were collected by resplitting the bulk samples from largeplasticbags.Theseduplicatesweredesigned for lab checks.A sample size of 2-4kg was collected andconsideredappropriateandrepresentative for the grain size and styleof mineralisation.
Qualityofassaydataandlaboratorytests	The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial or total.For geophysical tools, spectrometers, handheld XRFinstruments,etc,theparametersusedindetermining the analysis including instrument makeand model, reading times, calibrations factorsapplied and their derivation, etc.Nature of quality control procedures adopted (eg	ALS Laboratory Services were used for Auand multi-element analysis work carriedon out on 3m to 6m composite samplesand 1m split samples.The laboratory techniques below are for allsamplessubmittedtoALSandareconsidered appropriate for the style ofmineralisation defined at Mallee Bull,

Peel Mining Limited ACN 119 343 734

Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. E: [email protected]

Criteria	JORC Code explanation	Commentary
	standards, blanks, duplicates, external laboratorychecks) and whether acceptable levels of accuracy(ie lack of bias) and precision have been established.	CobarSuperbasinandWaggaTankProjects:oPUL-23 (Sample preparationcode)oAu-AA25 Ore Grade Au 30gFA AA Finish, Au-AA26 OreGrade Au 50g FA AA FinishoME-ICP41 35 element aquaregiaICP-AES,withanappropriate Ore Grade basemetal AA finishoME-ICP61 33 element 4 aciddigestICP-AES,withanappropriate Ore Grade basemetal AA finishoME-MS61 48 element 4 aciddigest ICP-MS and ICP-AES,with an appropriate OreGrade base metal AA finishAssaying of samples in the field was byportable XRF instruments: Olympus DeltaInnov-X or Olympus Vanta Analysers.Reading time for Innov-X was 20 secondsper reading with a total 3 readings persample. Reading time for Vanta was 10 &20 seconds per reading with 2 readings persample.TheQA/QCdataincludesstandards,duplicatesandlaboratorychecks.Duplicates for drill core are collected bythe lab every 30 samples after the coresampleispulverised.Duplicatesforpercussion drilling are collected directlyfrom the drill rig or the metre sample bagusing a half round section of pipe. In-houseQA/QC tests are conducted by the lab oneach batch of samples with standardssupplied by the same companies thatsupply our own.
Verification ofsampling andassaying	The verification of significant intersections by eitherindependent or alternative company personnel.The use of twinned holes.Documentationofprimarydata,dataentryprocedures, data verification, data storage (physicaland electronic) protocols.Discuss any adjustment to assay data.	Allgeologicalloggingandsamplinginformation is completed in spreadsheets,which are then transferred to a databasefor validation and compilation at the Peelheadoffice.Electroniccopiesofallinformation are backed up periodically.Noadjustmentsofassaydataareconsidered necessary.
Locationofdata points	Accuracy and quality of surveys used to locate drillholes (collar and down-hole surveys), trenches, mineworkings and other locations used in MineralResource estimation.Specification of the grid system used.Quality and adequacy of topographic control.	A Garmin hand-held GPS is used to definethe location of the samples. Standardpractice is for the GPS to be left at the siteof the collar for a period of 5 minutes toobtain a steady reading. Collars areroutinely picked up after by DGPS. Downhole surveys are conducted by the drillcontractorsusingeitheraReflexgyroscopic tool with readings every 10m

Criteria	JORC Code explanation	Commentary
		after drill hole completion or a Reflexelectronic multi-shot camera will be usedwithreadingsfordipandmagneticazimuth taken every 30m down-hole.QA/QC in the field involves calibrationusing a test stand. The instrument ispositioned with a stainless steel drill rod soas not to affect the magnetic azimuth.Grid system used is MGA 94 (Zone 55). Alldown-holemagneticsurveyswereconverted to MGA94 grid.
Data spacingand	Data spacing for reporting of Exploration Results.Whether the data spacing and distribution is	Data/drill hole spacing is variable andappropriate to the geology and historical
distribution	sufficient to establish the degree of geological andgrade continuity appropriate for the MineralResource and Ore Reserve estimation procedure(s)and classifications applied.Whether sample compositing has been applied.	drilling.3m to 6m sample compositing has beenapplied to RC drilling at Mallee Bull for goldand/or multi-element assay.
Orientation ofdatainrelationtogeologicalstructure	Whether the orientation of sampling achievesunbiased sampling of possible structures and theextent to which this is known, considering thedeposit type.If the relationship between the drilling orientationand the orientation of key mineralised structures isconsidered to have introduced a sampling bias, thisshould be assessed and reported if material.	Most drillholes are planned to intersect theinterpreted mineralised structures/lodesas near to a perpendicular angle aspossible (subject to access to the preferredcollar position).
Samplesecurity	The measures taken to ensure sample security.	The chain of custody is managed by theproject geologist who places calico samplebags in polyweave sacks. Up to 5 calicosample bags are placed in each sack. Eachsack is clearly labelled with:oPeel Mining LtdoAddress of LaboratoryoSample rangeDetailed records are kept of all samples
		that are dispatched, including details ofchain of custody.
Auditsorreviews	The results of any audits or reviews of samplingtechniques and data.	Data is validated when loading into thedatabase. No formal external audit hasbeen conducted.

Table 1 - Section 2 - Reporting of Exploration Results for Mallee Bull/Cobar Superbasin/Wagga Tank Projects

Criteria	JORC Code explanation	Commentary
Mineraltenement andlandtenurestatus	Type,referencename/number,locationandownership including agreements or material issueswiththirdpartiessuchasjointventures,partnerships,overridingroyalties,nativetitleinterests, historical sites, wilderness or nationalpark and environmental settings.	The Mallee Bull prospect is wholly locatedwithinExplorationLicenceEL7461"Gilgunnia". The tenement is subject to a50:50 Joint Venture with CBH ResourcesLtd, a wholly owned subsidiary of TohoZinc Co Ltd.
	The security of the tenure held at the time ofreporting along with any known impediments toobtaining a licence to operate in the area.	The Cobar Superbasin Project comprises ofmultiple exploration licences that aresubject to a farm-in agreement withJOGMEC whereby JOGMEC can earn up to50%.The Wagga Tank Project comprises of

Peel Mining Limited ACN 119 343 734

Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. E: [email protected]

Criteria	JORC Code explanation	Commentary
		EL6695, EL7226, EL7484 and EL7581 andare 100%-owned by Peel Mining Ltd,subject to 2% NSR royalty agreement withMMG Ltd.The tenements are in good standing and noknown impediments exist.
Explorationdone by otherparties	Acknowledgment and appraisal of exploration byother parties.	Work at Mallee Bull was completed in thearea by several former tenement holdersincluding Triako Resources between 2003and 2009; it included diamond drilling, IPsurveys,geologicalmappingandreconnaissancegeochemicalsamplingaround the historic Four Mile Goldfieldarea. Prior to Triako Resources, PasmincoExploration explored the Cobar Basin areafor a "Cobar-type" or "Elura-type" zinclead-silverorcopper-gold-lead-zincdeposit.Work at Wagga Tank was completed bymultiplepreviousexplorersincludingNewmont, Homestake, Amoco, Cyprus,Arimco,GoldenCross,PasmincoandMMG.Minimal exploration has beencompleted at the Wagga Tank area since1989.
Geology	Deposit type, geological setting and style ofmineralisation.	The Mallee Bull prospect area lies withintheCobar-MtHopeSiluro-Devoniansedimentaryandvolcanicunits.ThenorthernCobarregionconsistsofpredominantly sedimentary units withtuffaceous member, whilst the southernMt Hope region consists of predominantlyfelsic volcanic rocks; the Mallee Bullprospect seems to be located in an area ofoverlapbetweenthesetworegions.Mineralization at the Mallee Bull discoveryfeatures the Cobar-style attributes of shortstrike lengths (<200m), narrow widths (5-20m) and vertical continuity, and occurs asa shoot-like structure dipping moderatelyto the west.Wagga Tank, is believed to be a volcanichosted massive sulphide (VHMS) or Cobarstyle deposit, and is located ~130 km southof Cobar on the western edge of the CobarSuperbasin. The deposit is positioned atthe western-most exposure of the Mt.Keenan Volcanics (Mt. Hope Group) whereit is conformably overlain by a poorlyoutcropping, distal turbidite sequence ofcarbonaceousslateandsiltstone.Mineralisation is hosted in a sequence ofrhyodaciticvolcanicandassociatedvolcaniclastic rocks comprising polymicticconglomerate, sandstone, slate, crystallithic tuff and crystal tuff. This sequence

Criteria	JORC Code explanation	Commentary
		facesnorthwest,strikesnortheastsouthwest and dips range from moderatewesterly,tovertical,andlocallyoverturned to the east. Mineralisationstraddlesthecontactbetweenthevolcaniclastic facies and the siltstone-slatefacies where there is a broad zone ofintensetectonicbrecciationandhydrothermal alteration (sericite-chloritewith local silicification).
DrillholeInformation	A summary of all information material to theunderstanding of the exploration results including atabulation of the followinginformation for allMaterial drill holes:oeasting and northing of the drill hole collaroelevation or RL (Reduced Level – elevation abovesea level in metres) of the drill hole collarodip and azimuth of the holeodown hole length and interception depthohole length.If the exclusion of this information is justified on thebasis that the information is not Material and thisexclusion does not detract from the understandingof the report, the Competent Person should clearlyexplain why this is the case.	All relevant information material to theunderstanding of exploration results hasbeen included within the body of theannouncement or as appendices.No information has been excluded.
Dataaggregationmethods	InreportingExplorationResults,weightingaveraging techniques, maximum and/or minimumgrade truncations (eg cutting of high grades) andcut-off grades are usually Material and should bestated.Where aggregate intercepts incorporate shortlengths of high grade results and longer lengths oflow grade results, the procedure used for suchaggregation should be stated and some typicalexamples of such aggregations should be shown indetail.The assumptions used for any reporting of metalequivalent values should be clearly stated.	No length weighting or top-cuts have beenapplied.No metal equivalent values are used forreporting exploration results.
Relationshipbetweenmineralisationwidthsandinterceptlengths	These relationships are particularly important in thereporting of Exploration Results.If the geometry of the mineralisation with respectto the drill hole angle is known, its nature should bereported.If it is not known and only the down hole lengths arereported, there should be a clear statement to thiseffect (eg 'down hole length, true width notknown').	True widths are generally estimated to beabout 90-100% of the downhole widthunless otherwise indicated.Southern Nights (part of the Wagga Tankproject) true widths are unknown at thispoint due to the early stage nature ofinvestigation.
Diagrams	Appropriate maps and sections (with scales) andtabulations of intercepts should be included for anysignificant discovery being reported These shouldinclude, but not be limited to a plan view of drill holecollar locations and appropriate sectional views.	Refer to Figures in the body of text.
Balancedreporting	Where comprehensive reporting of all ExplorationResults is not practicable, representative reportingof both low and high grades and/or widths shouldbe practiced to avoid misleading reporting of	All results are reported.

Peel Mining Limited ACN 119 343 734

Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. E: [email protected]

Criteria	JORC Code explanation	Commentary
	Exploration Results.
Othersubstantiveexplorationdata	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 andmethod of treatment; metallurgical test results;bulk density, groundwater, geotechnical and rockcharacteristics;potentialdeleteriousorcontaminating substances.	No other substantive exploration data areavailable.
Further work	The nature and scale of planned further work (egtests for lateral extensions or depth extensions orlarge-scale step-out drilling).Diagrams clearly highlighting the areas of possibleextensions,includingthemaingeologicalinterpretations and future drilling areas, providedthis information is not commercially sensitive.	Future work at Mallee Bull and CobarSuperbasin Project will include geophysicalsurveying and RC/diamond drilling tofurther define the extent of mineralisationattheprospects.Downholeelectromagnetic (DHEM) surveys will beused to identify potential conductivesourcesthatmayberelatedtomineralisation.Drilling at Southern Nights/Wagga Tank iscontinuing and further geophysical surveysare planned.

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PEEL MINING LIMITED Capital/Financing Update 2018

65545_rns_2018-01-22_595a5ab3-0502-42f0-9a04-c90c701a546d.pdf

rd JANUARY 2018