PEEL MINING LIMITED — Interim / Quarterly Report 2007

Jul 22, 2007

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

==> picture [450 x 479] intentionally omitted <==

----- Start of picture text ----- Peel Exploration LimitedABN Quarter ended (“current quarter”) 42 119 343 734 30 June 2007Consolidated statement of cash flowsCurrent quarter Year to dateCash flows related to operating activities $A’000 (3.months)$A’0001.1 Receipts from product sales and related debtors1.2 Payments for (a) exploration and evaluation (45) (45) (b) development (c) production (d) administration (44) (44)1.3 Dividends received1.4 Interest and other items of a similar nature received 13 131.5 Interest and other costs of finance paid1.6 Income taxes paid1.7 Other (provide details if material)Net Operating Cash Flows (76) (76)Cash flows related to investing activities1.8 Payment for purchases of: (a)prospects (3) (3)(b)equity investments(c) other fixed assets1.9 Proceeds from sale of: (a)prospects(b)equity investments(c)other fixed assets1.10 Loans to other entities1.11 Loans repaid by other entities1.12 Other (provide details if material)Net investing cash flows (3) (3)1.13 Total operating and investing cash flows (carriedforward) (79) (79)----- End of picture text -----

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13Total operating and investing cash flows(brought forward)	1.13Total operating and investing cash flows(brought forward)	1.13Total operating and investing cash flows(brought forward)	(79)	(79)
Cash flows related to financing activities1.14Proceeds from issues of shares, options, etc.1.15Proceeds from sale of forfeited shares1.16Proceeds from borrowings1.17Repayment of borrowings1.18Dividends paid1.19Other - Costs of issue of sharesNet financing cash flows			3,000(80) (185)	3,000(80) (185)
			2,733	2,733
Net increase (decrease) in cash held1.20Cash at beginning of quarter/year to date1.21Exchange rate adjustments to item 1.201.22Cash at end of quarter			2,6543	2,6543
			2,657	2,657
Payments to directors of the entity and associates of the directorsPayments to related entities of the entity and associates of the related entities
1.231.24		Aggregate amount of payments to the parties included in item 1.2Aggregate amount of loans to the parties included in item 1.10		Current quarter$A'000
				Nil
				Nil
1.25Explanation necessaryfor an understandingof the transactionsNon-cash financing and investing activities2.1Details of financing and investing transactions which have had a material effect on consolidatedassets and liabilities but did not involve cash flowsNil2.2Details of outlays made by other entities to establish or increase their share in projects in which thereportingentityhas an interestNil		Explanation necessaryfor an understandingof the transactions
	Nil
	Details of outlays made by other entities to establish or increase their share in projects in which thereportingentityhas an interest
	Nil

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1	Loan facilities
3.2	Credit standby arrangements

Amount available	Amount used
$A’000	$A’000
Nil	Nil
Nil	Nil

Estimated cash outflows for next quarter

• $A’000

• 4.1 Exploration and evaluation 150

• 4.2 Development Total 150

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.	Current quarter$A’000	Previous quarter$A’000
5.1Cash on hand and at bank5.2Deposits at call5.3Bank overdraft5.4Other (provide details)	442,613	3
Total: cash at end of quarter(item 1.22)	2,657	3

Changes in interests in mining tenements

6.1Interests in miningtenements relinquished,reduced or lapsed6.2Interests in miningtenements acquired orincreased	Tenementreference	Nature of interest(note (2))	Interest atbeginningofquarter	Interest atend ofquarter
	EL6613EL6614EL6719EL6622ELA3177ELA3182	Mineral explorationMineral explorationMineral explorationMineral explorationMineral explorationMineral exploration	100%100%100%100%-nil--nil-	100%100%100%100%100%100%

• See chapter 19 for defined terms.

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Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price persecurity (see note3) (cents)	Amount paid up persecurity (see note 3)(cents)
7.1Preference+securities(description)7.2Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buy-backs,redemptions
7.3+Ordinarysecurities7.4Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buy-backs	30,000,000	15,110,000
	15,000,000	15,000,000	20 cents
7.5+Convertibledebt securities(description)7.6Changes duringquarter(a) Increasesthrough issues(b) Decreasesthroughsecuritiesmatured,converted
7.7Options(description andconversionfactor)7.8Issued duringquarter7.9Exercised duringquarter7.10Expired duringquarter	7,500,0007,500,000		Exercise price20 cents30 cents	Expiry date30 Nov 201030 Nov 2010
7.11Debentures(totals only)
7.12Unsecurednotes(totalsonly)

• See chapter 19 for defined terms.

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Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: ... ......... Date: ..25[th] July 2007 (Director/Company secretary)

Print name: David Hocking .........................................................

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

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