PEEL MINING LIMITED — Capital/Financing Update 2025

Apr 15, 2025

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PEX:ASX
ASX ANNOUNCEMENT 16 [th] April 2025
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SOUTH COBAR COPPER PROJECT

PRE-FEASIBILITY STUDY PROGRESS UPDATE

• Study work for the South Cobar Copper Project pre-feasibility study, predicated on the Mallee Bull and Wirlong copper deposits supplying ore for a 1.1 Mtpa standalone processing scenario, is largely complete.

• Recent successful copper and gold drilling campaigns at Wagga Tank and publication of an upgraded open pit MRE for Wagga Tank containing 3.56Mt at 0.59% Cu, 0.63g/t Au, 33g/t Ag, 0.64% Pb and 0.70% Zn (1.82% CuEq[1] ) for approximately 21.1kt Cu, 72.5koz Au, 3.77Moz Ag, 22.9kt Pb, and 24.9kt Zn provides potential open pit pathway to development.

• Evaluation of the Wagga Tank MRE will be incorporated into the study work for the PFS as it has the potential to significantly lower upfront capital costs and reduce the development timeframe from the scenario currently contemplated by the PFS.

• Investigations into alternative processing solutions are also ongoing.

Peel Mining Ltd ( ASX Code: PEX ) ( “Peel” or “the Company” ) is pleased to provide a progress update on the South Cobar Copper Project Prefeasibility Study (PFS).

The South Cobar Copper Project is a staged development plan for the broader South Cobar Project which initially focused on development of Company’s copper dominate Mallee Bull and Wirlong deposits. These deposits are located approximately 100km south of Cobar NSW, within the Cobar Basin.

Recent copper and gold drilling success at Wagga Tank, resulting in the release of an upgraded open pit mineral resource estimate, (as released to the market on 15 April 2025, “Significant Resource Upgrade at Wagga Tank” (see Table 1) requires evaluation in development considerations and PFS study work.

Additionally, the Cobar Region has significant spare milling capacity in the existing process plants in the district. The Company continues to assess and investigate utilisation of this capacity to process Peel’s material as an alternative to building a stand-alone processing facility at Mallee Bull.

Utilisation of existing infrastructure could substantially reduce upfront capital outlay, permitting timeframes, construction and operating risks and reduce potential environmental impacts associated with building a new processing facility.

1 The Wagga Tank Mineral Resource Estimate (MRE) and associated Competent Persons Statements were published in ASX announcement dated 15 April 2025 and titled “Significant resource upgrade at Wagga Tank”. The MRE. and the CuEq calculation for Wagga Tank MRE are outlined in Tables 1 & 3 on page 6 of this announcement.

Peel Mining Limited P: (08) 9382 3955 E: info@peelmining.com.au Unit 1, 34 Kings Park Road, West Perth WA 6005

ACN 119 343 734

PO Box 849, West Perth WA 6872 www.peelmining.com.au

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Study Update – Pre-feasibility Study work completed

PFS Mineral Resource Estimate

The South Cobar Project Global Mineral Resource Estimate update was released in January 2023 incorporating drilling to September 2022. In this release, the underground copper resources at Mallee Bull and Wirlong increased to 10.64Mt (see Table 2), with Indicated Resources making up 74% of the total copper resource base. This copper-rich resource formed the basis of the South Cobar Copper Project prefeasibility study.

The Wagga Tank Open Pit MRE announced to the ASX on 15 April 2025 requires additional work including drilling and further resource modelling to enable its incorporation in development considerations and PFS study work.

Mining Studies

Cut-off grade analysis has been completed on preliminary draft production targets. Stope Shape generation has been completed on Mineral Resource block models which were completed on Mallee Bull and Wirlong. Detailed mine design and mining studies have been completed using a combination of primary/secondary transverse sublevel open stoping (SLOS), using cemented rock fill (CRF) in the primary stopes, and bench stoping, using unconsolidated rock fill (RF) at both Mallee Bull and Wirlong. Capital Development, Operational Development, Backfill, Ventilation and Equipment Selection were also considered as part of these Mining Studies.

Geotechnical and Geochemical Analysis

Geotechnical assessments of the South Cobar Copper Project. The evaluation expects all rockmass conditions to be classified as “Good” in the Q’ Rockmass quality rating. Due to the limited dataset across all the projects and the presence of localised adverse ground conditions, GCE have assumed ‘Fair’ conditions in the development ground support assessment. Further work is required to derisk the early stages of the project when decline development is within the upper weathered zone at Mallee Bull. Comminution and SMC testing of both Mallee Bull and Wirlong samples have been completed along with Waste Rock Geochemistry. No adverse outcomes were received.

Processing Plant and Tailings Storage Facilities studies

Significant metallurgical test work completed in late 2022/early 2023 formed the basis of a process flowsheet study, design and capital and operating cost estimate for a 1.1 Mt/a single stage floatation processing plant facility located at Mallee Bull.

The Company has also considered future lead-zinc processing potential at the proposed Mallee Bull process plant with the current copper-only plant designed to allow for future circuit expansion for lead-zinc processing.

A TSF study has been completed with a conceptual TSF location and boundary developed for a central thickened discharge system with a storage capacity of approximately 10 million tonnes over the design life, at Mallee Bull. TSF and mill ponds have been designed along with pump sizing requirements taken into account.

Power Solutions

A Hybrid Power Solution based on an efficient and reliable solar PV (14.3MW) + Battery (16.4 MWh) + Diesel system (11.2MW). The power supply solution located at Mallee Bull combines solar PV (tracking), with the storage capacity of batteries and redundancy of diesel thermal generation to deliver a reliable power supply with low emissions at a low Levelised Cost of Electricity (LCOE).

www.peelmining.com.au

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Approximately 41% of energy will be supplied by renewable energy. The Wirlong Mine will be run solely off diesel generation, with a minimum capacity of ~2MW.

The Company is also assessing the potential to access additional renewable power sources including wind power. The Cobar district is currently subject to several wind farm infrastructure studies, and Peel, in its capacity as a local landowner is in discussions in this regard.

Non-Processing infrastructure

Study work surrounding non processing surface infrastructure has been undertaken for the Mallee Bull and Wirlong projects, including workshops; administration buildings; core yard and geology block; magazine; potentially acid forming (PAF) waste rock stockpiling area; non-acid forming (NAF) waste rock stockpiling area; water storage facility; site access roads and internal roads; fuel storage areas; water management infrastructure, 140 person accommodation camp and other ancillary infrastructure.

Water

As part of water studies conducted by the Company, 7 water bores have been drilled at Mallee Bull and 6 at Wirlong. This formed the basis of the Company’s study work, including water balance studies and supply of water to the mines and processing plant at Mallee Bull. Water infrastructure and capital costs have been estimated. It is noted that further water exploration, modelling and assessment is required to determine the optimum water infrastructure and to ensure ongoing water security.

Environment, Heritage, Permitting and Community.

Extensive Environmental and Heritage studies have been undertaken at both the Mallee Bull and Wirlong sites to assess the impacts and commence management planning for future mining approvals. Site rehabilitation cost estimates and biodiversity credit costs associated with the projects have been estimated.

It is noted that further study work would be required under the Environmental Impact Statement (EIS) which would be required prior to development approval and mining licences. The Company has conditional approvals in place at both sites to commence exploration declines under Review of Environmental Factors (REF) approvals.

Extensive Community and Heritage consultation has been undertaken as part of the REF approval process and the company is continuing to work with the Registered Aboriginal Parties, Cobar Shire Council and local landholders and community members.

Study Update – Opportunities being further assessed

Open pit mineralisation – Wagga Tank

The recent drilling success at Wagga Tank resulting in the release of an upgraded open pit resource adds new shallow copper-gold-silver mineralisation to the South Cobar Project’s global resource base. Incorporating these resources has the potential to provide a lower initial capital cost. Further study work is required to complete this assessment.

The updated Wagga Tank Open Pit MRE delivered the following:

• Wagga Tank pit constrained MRE of 3.56Mt at 0.59% Cu, 0.63g/t Au, 33g/t Ag, 0.64% Pb and 0.70% Zn (1.82% CuEq1) (See Table 1)

• Open Pit MRE contains approximately 21.1kt Cu, 72.5koz Au, 3.77Moz Ag, 22.9kt Pb, and 24.9kt Zn.

• Updated global resource base increased to 22.91Mt at 1.03% Cu, 0.37g/t Au, 35g/t Ag, 0.72% Pb and 1.45% Zn contains approximately 235kt Cu, 271koz Au, 25.4Moz Ag, 166kt Pb, and 331kt Zn (See Table 3).

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Exploration – Open Pit

Following drilling of the shallow mineralisation at Wagga Tank, the Company has identified several other near surface targets adjacent to Wagga Tank, and also at the Chuchi and Nombinnie prospect areas. Follow up drilling is planned to investigate if the Company can expand upon resources at open pittable depths, for inclusion at the front end of the project’s mine schedule.

Alternative Processing Solutions

Within the Cobar Basin there are existing mills which are underutilised with spare or idle processing capacity. The company is continuing to assess the treatment of ores from the South Cobar Copper Project in an existing mill. This could significantly reduce the scale and complexity of the proposed development resulting in reduced upfront capital, along with simplifying permitting paths, and optimising of existing infrastructure. Trucking costs associated with ore haulage would increase under this scenario.

Alternative Mining Techniques

The Company has identified the potential to use bulk mining techniques including sublevel caving and open pit mining to optimise recovery of the ore bodies at Mallee Bull and Wirlong. This opportunity remains to be fully investigated however significant per unit cost reductions are known to be associated with bulk mining techniques.

Cost improvements

Peel will continue to monitor market conditions and intends to pursue cost reductions wherever possible.

NSW Government Assistance

Project Funding

The Company was provided with co-funding grant of $500,000 for the prefeasibility study work for the South Cobar Copper Project by the NSW Government through its Critical Minerals Activation Fund. The Company is grateful for the funding provided, which has been instrumental in advancing the early-stage development studies and assessment of this key critical metals project in NSW. The NSW Government’s commitment to supporting critical minerals projects is crucial for driving innovation and securing a sustainable future for the state.

Royalty Relief

NSW government has announced a critical minerals strategy including a $250 million royalty deferral initiative for critical minerals projects (copper inclusive) and will examine the implementation of a rapid assessment framework for minerals mining projects. The deferral scheme would be for the first 5 years of a project’s life. The details are still to be published but a deferral scheme of this nature would potentially defer royalty payments for the first 5 years of the Project’s life.

Study Update – Next Steps

The detailed data that has been generated for the PFS provides Peel with a strong foundation for ongoing assessment of various development pathways. The recently published Wagga Tank Open Pit MRE provides a clear opportunity to incorporate the additional material from Wagga Tank into a revised development scenario to evaluate the potential for a lower initial capital costs, and any other benefits it might present.

www.peelmining.com.au

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This announcement has been approved for release by the Peel Mining Limited Chairman Mark Okeby. For further information on Peel Mining Limited please contact:

Rob Tyson Peel Mining Limited Executive Director – Technical Ph: +61 (0)420 234 020

Ryan Woodhouse Peel Mining Limited Company Secretary Ph: +61 (8) 9382 3955

Funding Acknowledgement

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The prefeasibility study work for the South Cobar Copper Project was proudly co-funded by the NSW Government through its Critical Minerals Activation Fund. We are grateful for the funding provided, which has been instrumental in advancing the early-stage development studies and assessment of this key critical metals project in NSW. The NSW Government’s commitment to supporting critical minerals projects is crucial for driving innovation and securing a sustainable future for the state.

www.peelmining.com.au

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Peel Mining Limited Resources noted in this release

Table 1 – Wagga Tank Open Pit Mineral Resource Estimate Summary

	MRE Category	Wagga Tank Pit-Constrained MRE as at April 2025 ($A40/60/t NSR cut-offs)	Wagga Tank Pit-Constrained MRE as at April 2025 ($A40/60/t NSR cut-offs)	Wagga Tank Pit-Constrained MRE as at April 2025 ($A40/60/t NSR cut-offs)	Wagga Tank Pit-Constrained MRE as at April 2025 ($A40/60/t NSR cut-offs)	Wagga Tank Pit-Constrained MRE as at April 2025 ($A40/60/t NSR cut-offs)	Wagga Tank Pit-Constrained MRE as at April 2025 ($A40/60/t NSR cut-offs)	Wagga Tank Pit-Constrained MRE as at April 2025 ($A40/60/t NSR cut-offs)	Wagga Tank Pit-Constrained MRE as at April 2025 ($A40/60/t NSR cut-offs)	Wagga Tank Pit-Constrained MRE as at April 2025 ($A40/60/t NSR cut-offs)	Wagga Tank Pit-Constrained MRE as at April 2025 ($A40/60/t NSR cut-offs)	Wagga Tank Pit-Constrained MRE as at April 2025 ($A40/60/t NSR cut-offs)	Wagga Tank Pit-Constrained MRE as at April 2025 ($A40/60/t NSR cut-offs)
		Tonnes (Kt)	CuEq1 (%)	Cu (%)	Au (g/t)	Ag (g/t)	Pb (%)	Zn (%)	Cont Cu (kt)	Cont Au (koz)	Cont Ag (Moz)	Cont Pb (kt)	Cont Zn (kt)
Total	Ind	1,210 2.37 0.79 0.51 34 1.41 1.70 9.5 19.7 1.33 17.0 20.5 2,350 1.53 0.49 0.70 32 0.25 0.19 11.6 52.8 2.44 5.9 4.4
	Inf
	Subtotal	3,560 1.82 0.59 0.63 33 0.64 0.70 21.1 72.5 3.77 22.9 24.9

1 The CuEq calculation for Wagga Tank is based on copper, gold, silver, lead and zinc prices of A$14,458/t, A$3,647/oz, A$43.90/oz, A$3,283/t and A$4,267/t respectively. Metallurgical metal recoveries have been set for the Oxide, Transition and Fresh zones respectively as: 85/65/45% for Cu, 85/73/61% for Au, 85/81/77% for Ag, 0/39/78% for Pb, 0/45/90% for Zn. These parameters give the following formulae: Oxide: CuEq (%) = Cu (%) +(0.811 x Au (g/t) + 0.0098 x Ag (g/t); Transition: CuEq (%) = Cu (%) + 0.911 x Au (g/t) + 0.0122 x Ag (g/t) + 0.136 x Pb (%) +0.204 x Zn (%); Fresh: CuEq (%) = Cu (%) + 1.099 x Au (g/t) + 0.0167 x Ag (g/t) + 0.394 x Pb (%) + 0.59 x Zn (%). It is the Company’s opinion that all elements included in the copper equivalent grades have reasonable potential to be recovered and sold.

Table 2 - South Cobar Project Copper Mineral Resource Estimate Summary

		South Cobar Project Copper MREs as atJanuary 2023($A80/t NSR cut-off)	South Cobar Project Copper MREs as atJanuary 2023($A80/t NSR cut-off)	South Cobar Project Copper MREs as atJanuary 2023($A80/t NSR cut-off)	South Cobar Project Copper MREs as atJanuary 2023($A80/t NSR cut-off)	South Cobar Project Copper MREs as atJanuary 2023($A80/t NSR cut-off)	South Cobar Project Copper MREs as atJanuary 2023($A80/t NSR cut-off)	South Cobar Project Copper MREs as atJanuary 2023($A80/t NSR cut-off)	South Cobar Project Copper MREs as atJanuary 2023($A80/t NSR cut-off)	South Cobar Project Copper MREs as atJanuary 2023($A80/t NSR cut-off)	South Cobar Project Copper MREs as atJanuary 2023($A80/t NSR cut-off)	South Cobar Project Copper MREs as atJanuary 2023($A80/t NSR cut-off)
	MRE
Deposit		Tonnes						Cont Cu	Cont Ag	Cont Zn	Cont Pb	Cont Au
	Category		Cu (%)	Ag (g/t)	Zn (%)	Pb (%)	Au (g/t)
		(kt)						(kt)	(moz)	(kt)	(kt)	(koz)
	Ind	5,590 1.93 27 0.13 0.21 0.38 108 4.85 7.3 11.7 68 750 1.87 21 0.04 0.08 0.11 14 0.51 0.3 0.6 2.7
Mallee Bull	Inf
	Subtotal	6,340 1.92 26 0.12 0.19 0.35 122 5.36 7.6 12.3 71
	Ind	2,290 1.92 6 0.08 0.03 0.03 44 0.47 1.9 0.6 1.9 2,010 1.54 6 0.07 0.01 0.03 31 0.37 1.4 0.3 1.7
Wirlong	Inf
	Subtotal	4,300 1.75 6 0.08 0.02 0.03 75 0.84 3.3 0.9 3.6
	Ind	7,880 1.93 21 0.12 0.16 0.28 152 5.33 9.2 12.4 70 2,760 1.63 10 0.06 0.03 0.05 45 0.87 1.7 0.9 4.4
Combined	Inf
	Total	10,640 1.85 18 0.10 0.12 0.22 197 6.20 10.8 13.3 74

Table 3 - South Cobar Project Global Mineral Resource Estimate Summary

		South Cobar Project MRE as at April 2025(various NSR cut-offs)	South Cobar Project MRE as at April 2025(various NSR cut-offs)	South Cobar Project MRE as at April 2025(various NSR cut-offs)	South Cobar Project MRE as at April 2025(various NSR cut-offs)	South Cobar Project MRE as at April 2025(various NSR cut-offs)	South Cobar Project MRE as at April 2025(various NSR cut-offs)	South Cobar Project MRE as at April 2025(various NSR cut-offs)	South Cobar Project MRE as at April 2025(various NSR cut-offs)	South Cobar Project MRE as at April 2025(various NSR cut-offs)	South Cobar Project MRE as at April 2025(various NSR cut-offs)	South Cobar Project MRE as at April 2025(various NSR cut-offs)
	MRE
Deposit		Tonnes						Cont Cu	Cont Au	Cont Ag	Cont Pb	Cont Zn
	Category		Cu (%)	Au (g/t)	Ag (g/t)	Pb (%)	Zn (%)
		(kt)						(kt)	(koz)	(moz)	(kt)	(kt)
	Ind	14,730 1.16 0.39 35 0.82 1.52 170 185 16.8 120 224 8,180 0.79 0.33 33 0.55 1.31 64 86 8.7 45 107
All	Inf
	Total	22,910 1.03 0.37 35 0.72 1.45 235 271 25.4 166 331

Complete details of the above Mineral Resource and associated Competent Persons Statements were published in ASX announcement dated 15 April 2025 titled “Significant resource upgrade at Wagga Tank”. Peel is not aware of any new information or data that materially affects the information included in that Mineral Resource, and that all assumptions and technical parameters underpinning the estimates continue to apply and there have been no adverse material changes.

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FORWARD LOOKING STATEMENT

This document may contain certain forward-looking statements which have not been based solely on historical facts but rather on Peel Mining’s expectations about future events and on a number of assumptions which are subject to significant risks, uncertainties and contingencies many of which are outside the control of Peel Mining and its directors, officers and advisers. Forward-looking statements include, but are not necessarily limited to, statements concerning Peel Mining’s planned exploration programme, strategies and objectives of management, anticipated dates and expected costs or outputs. When used in this document, words such as "could", "plan", "estimate", "expect", "intend", "may", potential", "should" and similar expressions are forward-looking statements. Due care and attention has been taken in the preparation of this document and although Peel Mining believes that its expectations reflected in any forward looking statements made in this document are reasonable, no assurance can be given that actual results will be consistent with these forward-looking statements. This document should not be relied upon as providing any recommendation or forecast by Peel Mining or its directors, officers or advisers. To the fullest extent permitted by law, no liability, however arising, will be accepted by Peel Mining or its directors, officers or advisers, as a result of any reliance upon any forward looking statement contained in this document.

COMPETENT PERSONS STATEMENTS

The information in this announcement that relates to Mineral Resource estimates is based on information compiled by Mr Jonathon Abbott, who is a Member of The Australian Institute of Geoscientists. Mr Abbott is a director of Matrix Resource Consultants Pty Ltd and 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 2012 edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves”. Mr Abbott consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Exploration Results, geological interpretation and information informing Mineral Resources estimates is based on information compiled by Mr Robert 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.

PREVIOUS RESULTS

Previous results referred to herein have been extracted from previously released ASX announcements. Previous announcements and reports are available to view on www.peelmining.com.au and www.asx.com.au. 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.

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Figure 1– Peel Cobar Basin tenure and deposit locations

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