PEEL MINING LIMITED — Interim / Quarterly Report 2011

Jul 28, 2011

29 July 2011

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JUNE 2011 QUARTERLY REPORT

Peel Mining Limited ASX code: PEX ACN: 119 343 734

Unit 1, 34 Kings Park Rd West Perth, WA 6005

Highlights for June quarter 2011

 4-Mile silver-zinc-lead discovery:

 Sphalerite and galena intersected in all drillholes.

Ph: (08) 9382 3955 Fax: (08) 9388 1025 E: info@peelex.com.au Web: www.peelex.com.au

Contact:

Rob Tyson Managing Director rtyson@peelex.com.au _________

About Peel Mining Limited:

• The Company’s five 100%-owned projects cover approximately 500 km[2] of highly prospective tenure in NSW and WA.

• The Apollo Hill gold project is a major, protruding, shear-hosted, gold mineralised system that remains open down dip and along strike.

• Ruby Silver project contains several historic high-grade silver mines with minimal modern exploration.

• May Day gold-lead-zinc VMS deposit on granted mining lease near Cobar offers exciting exploration potential.

• Attunga Tungsten Deposit – a high grade tungsten deposit located near excellent infrastructure.

• 88 million shares on issue.

• $9 Market Cap at 29 July 2011.

 Downhole EM survey confirms moderate-strong off-hole conductor remains untested by current drilling.

 Follow-up drilling and downhole EM completed – results awaited.

 Apollo Hill drilling completed:

• 21 RC drillholes for 3,276m and 2

• diamond drillholes for 310m.

 Designed to extend Apollo Hill resource model a further 200m south and to a minimum depth of 150m below surface.

 Resource estimation currently underway with completion expected in early August.

 High-grade Ruby silver project exploration underway:

 Mapping and surface geochemical sampling confirms prospectivity.

 IP geophysical survey returns strong chargeable IP responses coincident with Rockvale and Tulloch mine workings.

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Plans for September quarter 2011

 Follow-up drilling at 4-Mile discovery.

• Resource upgrade at Apollo Hill.

• RC drilling at Ruby Silver project.

Peel Mining Limited – Quarterly Report June 2011

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Exploration

May Day Project: Gold, Lead, Zinc, Silver, Copper; Western NSW (PEX 100%). Tenements: ML1361 (May Day), EL7461 (Gilgunnia). Targets: Volcanogenic Massive Sulphide mineralisation.

4-Mile Silver-Zinc-Lead Discovery

As reported last quarter, recent exploration drilling at the 4-Mile prospect has resulted in the discovery of significant silver-zinc-lead mineralisation. 4-Mile is located within Peel’s 100%-owned May Day-Gilgunnia project (EL7461), about 100 km south of the Cobar. The drilling consisted of an east-west line of three RC drillholes at approximately 40m spacing, for a total of 663m, targeting a newly-recognised coincident electro-magnetic (EM) and magnetic geophysical anomaly located within the historic 4-Mile goldfield. Table 1 summarises significant drill assay results (see Appendix 1 for technical details).

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Figure 1 – 4-Mile RTP Magnetics

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Figure 2 – 4-Mile VTEM

Visible sulphide mineralisation including sphalerite and galena was intersected in zones up to 10m wide, within all three drillholes. Other accessory sulphide minerals observed includes pyrrhotite, pyrite, arsenopyrite and chalcopyrite. The sulphides occur within a package of sediments comprising carbonaceous shales and siltstones. True width is unknown at this stage although it appears that mineralisation is shallowing to the east, possibly indicating a moderate westerly dip, in which case the drill intercepts reported would be close to true. All drillholes remained anomalous in silver-leadzinc-arsenic at the bottom of holes.

Peel Mining Limited – Quarterly Report June 2011

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Table 1 – Significant 4-Mile Assays Round 1 RC Drilling

Hole ID	Northing	Easting	Azimuth (true)	Dip	Final Depth	From (m)	To (m)	Interval (m)	Ag (g/t)	Au (g/t)	Cu (%)	Pb (%)	Zn (%)
4MRC001	6413351	415281	090	-60	225	165	168	3	9	0.06	0.03	0.65	0.50
						194	199	5	21	0.15	0.27	0.87	1.88
						205	206	1	22	0.24	0.09	1.49	1.50
4MRC002	6413348	415326	090	-60	219	138	143	5	11	0.15	0.04	1.28	2.10
						164	165	1	4	0.82	0.01	0.10	0.15
						173	174	1	7	0.18	0.03	0.32	0.59
						213	214	1	20	0.05	0.15	0.95	1.23
4MRC003	6413352	415359	090	-60	219	110	120	10	24	0.09	0.03	1.17	2.20
						133	134	1	26	0.02	0.09	1.22	0.24
						176	179	3	14	0.15	0.11	0.85	1.55
						205	208	3	8	0.07	0.01	0.43	0.97

Late in the quarter, a further downhole electro-magnetic (DHEM) survey resulted in the identification of a strong off-hole EM anomaly. The DHEM survey was undertaken following the completion of a second round of RC drilling (2 holes for 402m) at 4-Mile. This RC drilling was designed to follow-up the previously intersected significant silver-lead-zinc-gold-copper mineralisation.

The off-hole anomaly is interpreted to be caused by a moderately dipping, high conductance source, located about 40 metres northwest and about 190m downhole of 4MRC004. The estimated time constant of the conductor is about 13 milliseconds.

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Figure 3 – 4-Mile perspective view of DHEM anomaly with proposed drillhole in red

Subsequent to the quarter’s end, Peel completed a third round of RC drilling targeting the off-hole conductor along with additional DHEM. Final results for this work and the second round of drilling are expected to be reported shortly.

Peel Mining Limited – Quarterly Report June 2011

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The 4-Mile prospect is located less than 10 kilometres east of Peel’s 100%-owned May Day goldsilver-lead-zinc deposit (ML1361), where drilling last year by Peel confirmed the down-dip continuation of mineralisation to more than 200m below surface.

Apollo Hill Project: Gold; Northeastern Goldfields WA (PEX 100%).

The Apollo Hill gold project, located about 50 kilometres southeast of Leonora, is focused on the advanced Apollo Hill gold deposit, an extensively mineralised gold system. Apollo Hill is 100%-owned by Peel Mining Ltd.

In December 2010, Peel reported a maiden resource estimate for the Apollo Hill and Ra deposits. The highlights of this work were: an inferred resource at Apollo Hill and Ra deposits estimated at 11.1 Mt at 1.0 g/t Au for 341,000 ounces of gold (using 0.5 g/t gold cut off); maximum depth of the resource estimate is 150m below surface; the Apollo Hill deposit extends to surface and remains unexploited; mineralisation at Apollo Hill and Ra deposits remains open at depth and along strike to the south of both deposits.

Apollo Hill Drilling

During the quarter, Peel completed an approximately 3,600 metre RC and diamond drilling programme that was designed to increase sample density to allow for the extension of the Apollo Hill resource model; and to provide representative gold-mineralised material for additional metallurgical testwork. Table 3 summarises significant Apollo Hill drill assay results (see Appendix 2 for technical details).

The RC drilling component comprised 21 drillholes for 3,276 metres of drilling. This drilling was designed primarily to enable the extension of the existing Apollo Hill resource model a further 200 metres (grid) south, and to a minimum depth of about 150 metres below surface. Peel anticipates a revised resource estimate for Apollo Hill will be completed in August.

The diamond drilling component comprised 2 drillholes for 310 metres of HQ diamond core drilling. This drilling was designed primarily to provide sufficient material for further metallurgical testwork. This testwork has been deferred until a more appropriate time.

About Apollo Hill

At Apollo Hill, two zones of mineralisation have been identified: West (or Main) Zone and the East Zone. The current resource extends for 600m in strike length and Peel expects to increase this to the south-east (grid south) with recently completed drilling. The gold mineralisation dips to the northeast at 45-60 degrees and is accompanied by quartz veins and carbonate-pyrite alteration associated with a structurally deformed mafic-felsic lithological contact. Mineralisation is present at surface.

The Ra gold deposit is covered by a layer of transported material, with mineralisation hosted by dolerite rock and dipping 30-60 degrees to the northeast. The current resource at Ra has a strike length of approximately 300m with mineralisation open along strike and at depth.

Peel Mining Limited – Quarterly Report June 2011

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Figure 4 – Apollo Hill Inferred Resources and Peel Drilling

Peel Mining Limited – Quarterly Report June 2011

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Table 2 – Drillhole collars

HOLE_ID	Easting	Northing	RL	Azi-Mag	Dip	Depth(m)	Hole-Type
PADD01 PADD02 PARC01 PARC02 PARC03 PARC04 PARC05 PARC06 PARC07 PARC08 PARC09 PARC10 PARC11 PARC12 PARC13 PARC14 PARC15 PARC16 PARC17 PARC18 PARC19 PARC20 PARC21	371059 371018 371409 371451 371494 371374 371417 371459 371416 371326 371376 371219 371256 371299 371344 371304 370968 371339 371349 371324 371215 371315 371297	6774417 6774517 6774002 6774047 6774092 6774097 6774139 6774182 6774225 6774139 6774185 6774196 6774236 6774191 6774243 6774279 6774604 6774238 6774250 6774333 6774370 6774379 6774438	361 364 356 363 364 359 360 356 359 364 365 361 369 371 371 379 366 372 370 377 368 383 384	45 225 225 225 225 225 225 225 225 225 225 225 225 225 225 225 225 225 225 225 225 225 225	-67 -60 -60 -70 -70 -70 -70 -70 -70 -60 -60 -60 -60 -60 -60 -60 -60 -60 -60 -60 -60 -60 -70	201.5 108.4 80 120 160 100 160 210 210 100 160 80 140 120 71 200 160 45 180 240 200 260 280	DDH DDH RC RC RC RC RC RC RC RC RC RC RC RC RC RC RC RC RC RC RC RC RC

Table 3 – Significant assays (> 0.5 g/t Au)

Hole_ID	From	To	Interval	**Au_ppm **
PARC01 PARC01 PARC01 PARC01	2 41 60 70	3 43 62 71	1 2 2 1	3.08 1.5 2.2 1.21
PARC02 PARC02 PARC02 PARC02 PARC02 PARC02 PARC02 PARC02 PARC02 PARC02 PARC02	13 23 37 41 53 62 81 89 97 100 105	16 24 40 42 54 65 82 90 98 103 106	3 1 3 1 1 3 1 1 1 3 1	2.22 1.38 1.05 2.11 1.06 1.02 1.58 2.68 1.39 1.79 1.9
PARC03 PARC03 PARC03 PARC03 PARC03 PARC03 PARC03 PARC03 PARC03 PARC03 PARC03 PARC03	10 18 29 35 52 75 78 106 118 123 134 147	11 19 30 37 53 76 80 107 119 124 135 149	1 1 1 2 1 1 2 1 1 1 1 2	0.78 2.82 1.35 1.09 1.16 4.13 2.25 3.61 1.6 2.23 2.02 2.4

Hole_ID	From	To	Interval	**Au_ppm **
PARC03 PARC03 PARC03	154 156 159	155 157 160*	1 1 1	1.62 1.51 8.95
PARC04 PARC04 PARC04 PARC04 PARC04 PARC04 PARC04	0 17 56 59 63 81 88	13 18 57 61 64 82 89	13 1 1 2 1 1 1	3.19 1.48 0.82 1.16 2.5 0.86 1.09
PARC05 PARC05 PARC05 PARC05 PARC05 PARC05 PARC05 PARC05 PARC05 PARC05 PARC05	30 38 47 82 87 93 96 123 132 143 147	34 39 49 83 88 94 97 124 133 145 149	4 1 2 1 1 1 1 1 1 2 2	0.84 0.55 0.52 0.63 3.35 1.24 1.72 9.63 1.21 0.95 0.91
PARC06 PARC06 PARC06 PARC06 PARC06 PARC06 PARC06 PARC06	5 37 69 72 75 89 91 93	6 38 71 73 76 90 92 94	1 1 2 1 1 1 1 1	2.15 0.86 2.36 1.26 2.28 0.66 0.93 0.68

Peel Mining Limited – Quarterly Report June 2011

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Hole_ID	From	To	Interval	**Au_ppm **
PARC06 PARC06 PARC06 PARC06 PARC06 PARC06 PARC06 PARC06 PARC06 PARC06	103 111 132 154 167 170 179 182 204 207	104 112 133 155 168 171 180 183 205 208	1 1 1 1 1 1 1 1 1 1	2.8 2.04 2.63 0.55 1.1 9.08 1.67 1.03 1.6 1.01
PARC07 PARC07 PARC07 PARC07 PARC07 PARC07 PARC07 PARC07 PARC07 PARC07 PARC07 PARC07 PARC07 PARC07 PARC07 PARC07 PARC07 PARC07 PARC07 PARC07	36 51 55 63 89 93 102 107 110 118 135 139 166 170 175 177 192 196 202 207	37 52 58 65 91 94 103 109 111 120 136 140 167 172 176 190 194 197 204 208	1 1 3 2 2 1 1 2 1 2 1 1 1 2 1 13 2 1 2 1	0.54 0.5 3.38 1.17 3.42 2.05 0.69 1.21 0.68 6.65 0.79 0.57 0.85 0.53 0.52 2.37 1.53 0.81 2.28 0.78
PARC08 PARC08 PARC08 PARC08 PARC08 PARC08 PARC08 PARC08 PARC08 PARC08 PARC08	0 44 51 55 62 66 71 75 78 82 91	1 46 53 58 64 68 72 76 80 84 92	1 2 2 3 2 2 1 1 2 2 1	1.52 0.57 2.48 0.81 1.5 0.85 0.7 0.81 1.55 1.53 9.59
PARC09 PARC09 PARC09 PARC09 PARC09 PARC09 PARC09 PARC09 PARC09 PARC09 PARC09 PARC09 PARC09 PARC09 PARC09	1 11 29 41 48 71 82 88 91 98 105 110 112 127 130	8 13 30 42 49 72 83 90 92 100 106 111 114 128 131	7 2 1 1 1 1 1 2 1 2 1 1 2 1 1	1.23 1.36 8.83 1.14 0.81 0.76 0.65 1.3 0.64 0.92 1.2 0.5 3.55 1.23 5.76

Hole_ID	From	To	Interval	**Au_ppm **
PARC09 PARC09 PARC09 PARC09	139 141 145 155	140 143 147 156	1 2 2 1	0.57 3.72 1.66 1.72
PARC10 PARC10 PARC10 PARC10 PARC10 PARC10 PARC10	2 4 8 21 32 41 51	3 6 9 23 33 42 52	1 2 1 2 1 1 1	0.59 6.53 0.6 0.78 0.64 10.6 2.62
PARC11 PARC11 PARC11 PARC11 PARC11 PARC11 PARC11 PARC11 PARC11 PARC11 PARC11	13 25 31 37 40 74 78 93 97 113 136	14 27 32 38 42 75 83 95 99 114 137	1 2 1 1 2 1 5 2 2 1 1	0.52 1.28 1.28 0.58 1.34 0.67 1.59 0.59 0.86 0.77 5.1
PARC12 PARC12 PARC12 PARC12 PARC12 PARC12 PARC12 PARC12 PARC12 PARC12 PARC12 PARC12 PARC12	37 39 42 62 70 75 85 95 97 107 111 114 119	38 41 43 64 73 76 86 96 98 110 112 115 120*	1 2 1 2 3 1 1 1 1 3 1 1 1	2.63 4.15 0.77 1.41 1.43 1.73 0.96 0.9 1.48 1.21 0.57 0.71 1.42
PARC13 PARC13	37 53	39 54	2 1	1.96 0.93
PARC14 PARC14 PARC14 PARC14 PARC14 PARC14 PARC14 PARC14 PARC14 PARC14 PARC14 PARC14 PARC14	6 16 27 105 116 121 136 144 157 165 173 175 181	13 17 29 107 117 122 137 148 161 171 174 176 182	7 1 2 2 1 1 1 4 4 6 1 1 1	2.22 1.88 1.25 1.39 0.83 0.84 0.77 2.3 1.37 1.65 1.34 2.62 0.68
PARC15 PARC15 PARC15 PARC15 PARC15 PARC15	21 23 61 87 119 128	22 24 63 89 120 129	1 1 2 2 1 1	1.39 1.12 1.27 1.4 2.04 0.67

Peel Mining Limited – Quarterly Report June 2011

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Hole_ID	From	To	Interval	**Au_ppm **
PARC15	132	133	1	1.28
PARC17	29	30	1	0.66
PARC17	31	32	1	1.15
PARC17	35	36	1	0.73
PARC17	58	59	1	6.92
PARC17	63	64	1	0.66
PARC17	67	68	1	0.6
PARC17	78	81	3	0.66
PARC17	84	87	3	1.29
PARC17	98	99	1	1.13
PARC17	120	121	1	0.89
PARC17	152	154	2	1.46
PARC17 PARC17 PARC17	157 167 177	158 171 179	1 4 2	1.48 1.86 6.48
PARC18	4	5	1	0.92
PARC18	28	29	1	0.51
PARC18	33	34	1	0.86
PARC18	65	66	1	0.82
PARC18	67	68	1	9.72
PARC18	69	71	2	0.54
PARC18	76	77	1	0.65
PARC18	113	114	1	0.63
PARC18	147	154	7	0.89
PARC18	178	182	4	0.94
PARC18	185	186	1	1.23
PARC18	188	189	1	0.55
PARC18	191	203	12	1.37
PARC18	209	210	1	1.38
PARC18 PARC18 PARC18	215 217 222	216 218 223	1 1 1	0.83 0.82 0.56
PARC19	18	19	1	1.54
PARC19	25	27	2	3.95
PARC19	41	42	1	0.59
PARC19 PARC19 PARC19 PARC19 PARC19 PARC19 PARC19 PARC19 PARC19 PARC19	67 69 79 85 119 126 132 135 138 143	68 71 80 86 120 128 133 136 140 144	1 2 1 1 1 2 1 1 2 1	1.26 1.45 2.58 0.51 1.57 1.55 1.55 3.84 1.12 2.24
PARC20 PARC20 PARC20 PARC20 PARC20 PARC20 PARC20 PARC20 PARC20 PARC20 PARC20	28 58 65 67 72 83 113 121 141 143 146	29 60 66 68 73 84 114 122 142 145 150	1 2 1 1 1 1 1 1 1 2 4	5.28 0.57 0.54 0.95 2.89 1.18 0.96 0.6 1.21 2.49 5.84

Hole_ID	From	To	Interval	**Au_ppm **
PARC20	152	153	1	6.60
PARC20	164	165	1	0.86
PARC20	176	177	1	1.01
PARC20	188	190	2	0.80
PARC20	198	199	1	1.70
PARC20	209	210	1	0.67
PARC20	213	216	3	1.79
PARC20	218	220	2	0.56
PARC20	224	225	1	0.84
PARC20	226	227	1	1.06
PARC20	228	229	1	0.66
PARC20	242	243	1	5.48
PARC21 PARC21 PARC21	1 11 17	2 12 18	1 1 1	0.57 0.51 0.60
PARC21	69	70	1	1.5
PARC21	76	77	1	0.63
PARC21	92	94	2	0.57
PARC21	151	152	1	1.95
PARC21	188	189	1	1.17
PARC21	197	199	2	0.74
PARC21	205	206	1	0.53
PARC21	208	209	1	1.52
PARC21	223	224	1	3.03
PARC21	239	240	1	0.77
PARC21	250	251	1	0.75
PARC21	258	259	1	0.52
PARC21	261	262	1	0.53
PARC21	274	275	1	2.00
PADD001 PADD001 PADD001	3 23 72	10 37 78	7 14 6	3.54 0.92 1.89
PADD001	83	87	4	2.45
PADD001	104	105	1	11.75
PADD001	183	190	7	4.10
PADD002	30	50	20	1.55

Peel Mining Limited – Quarterly Report June 2011

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Ruby Silver Project: Silver, Gold; Northeastern NSW (PEX 100%).

Ruby Silver project is located approximately 30 km east of Armidale in north-eastern New South Wales and comprises a 60 km[2] exploration licence (EL7711), 100%-owned By Peel Mining Ltd, covering the historic Ruby-Tulloch-Rockvale silver-field.

IP Geophysical Survey

During the quarter, Peel undertook an 18 line kilometre IP survey over the historic Tulloch silver mine and Rockvale arsenic mine areas in preparation for an upcoming drill programme. This work identified multiple zones of strong shallow chargeable anomalism, many of which are coincident or proximal to known historic workings. These chargeable IP responses are interpreted as areas of possibly concentrated sulphide mineralisation and will be high-priority targets for future drill programmes.

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Figure 5 - Ruby IP Chargeability - Slice Constant 60m Below Surface

At Rockvale, eight 200m-spaced lines of IP were completed covering an area of about 1.8 km[2] . Elevated chargeable IP responses were returned over a broad zone about 400m wide and over 1km in strike, with scattered strong chargeable responses also present. This area is also semi-coincident with a zone of lower resistivity, which is interpreted as possibly being associated with alteration and/or structural deformation. Many of the strongest IP responses appear to be very close to (less than 50m), or at surface.

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Peel Mining Limited – Quarterly Report June 2011

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Mapping by Peel at Rockvale has identified several, possibly intersecting, lines of lode that appear to be structurally-controlled, and the results of the IP survey appear to support the assumed positions of these lodes. Of note, the strongest IP response occurs on the northern-most line of the Rockvale survey, with anomalism remaining open in this direction. Peel has recently lodged an exploration licence application over any possible extensions to this response.

At Tulloch, five 200m-spaced lines of IP were completed covering an area of about 1.1 km[2] . Multiple moderate-strong zones of chargeable response were defined, and similar to Rockvale, these zones appear to represent intersecting structural features. The strongest IP trend runs almost east-west and is about 400m wide and 600m long. This trend remains open to the northeast. Encouragingly, the central IP responses, closest to the Tulloch workings, are coming from a depth of about 40m.

Geological/Geochemical Mapping Sampling

During the quarter, Peel also completed a first-pass reconnaissance mapping and rock chip/dump sampling programme at the Tulloch, G Reef, Happy Valley and Rockvale areas. This sampling returned very high silver and gold values. Samples were collected from shaft dumps at the Rockvale, G Grid and Happy Valley areas from rock chips along the line of lode at Rockvale. See Appendix 3 for technical details.

Table 4 – Ruby Silver rock chip summary

Sample ID	Northing	Easting	Ag (g/t)	Au (g/t)	As (%)	Cu (%)	Pb (%)	Zn (%)	Description
PT01	6638345	401532	7.0	25.2	0.01	0.29	0.02	0.01	Tulloch mine dump - quartz vein and minor hornfels hosting fine to medium grained pyrite, chalcopyrite and minorgalena.
PT02	6638298	401421	1370	0.75	13.55	0.03	0.83	0.37	Tulloch mine dump - quartz veins with common breccia textures host massive to disseminated, fine to coarsegrained chalcopyrite and sphalerite.
PT03	6638057	399821	483	4.32	1.95	0.03	0.36	0.05	Happy Valley shaft dump - quartz veins with minor finegrained sulphides,minor scorodite.
PT04	6637764	400167	192	6.15	4.54	<0.01	2.27	0.11	G Grid shaft dump - quartz veins hosting abundant coarsegalena,sphalerite & arsenopyrite.
PR01	6637752	403354	67.5	0.06	1.09	0.09	0.09	<0.01	Rockvale lode rockchip - quartz-arsenopyrite & arsenopyrite-pyrite in alteredgranite.
PR02	6637332	403045	16.9	0.47	>15.0	0.02	0.07	<0.01	Rockvale lode rockchip - altered ferruginous granite with boxworks & scorodite.
PR03	6637229	402966	185	0.28	2.29	0.11	0.17	0.3	Rockvale lode rockchip - goethite & scorodite- stained altered granite with disseminated to massive arsenopyrite.
PR04	6637696	403255	13.3	0.20	0.19	0.02	0.25	0.1	Rockvale lode rockchip - quartz veins with boxworks.

Ongoing reconnaissance geological mapping and sampling programmes over the Tulloch, G Reef/Happy Valley and Rockvale areas has delineated the Rockvale line of lode at surface for more than 1000m, and on strike with the Ruby silver mine. Mapping and sampling currently underway has now identified that the G-Reef lode is traceable in outcrop for 700m in length. In places the lode zone is up to 5m wide and is associated with sericitised granite.

About Ruby Silver Project

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Peel Mining Limited – Quarterly Report June 2011

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In February 2011, Peel was granted EL7711 covering the historic Ruby-Tulloch-Rockvale silverfield located approximately 30 km east of Armidale, New South Wales. The area contains numerous historic silver mines, workings and prospects including: the Ruby silver mine which produced 350,000 ounces silver at 620 g/t silver; and the Tulloch silver mine which produced 50,000 ounces silver at 6,200 g/t silver. The area has been subject to limited modern exploration and drilling.

Attunga Project: Gold, Tungsten, Molybdenum, Copper; Northeastern NSW (PEX 100%).

Tenements: EL6883 (Mt Patterson), EL6884 (Attunga).

Targets: Intrusive-Related Gold System and/or Orogenic style gold mineralisation; skarn style tungsten-molybdenum mineralisation and skarn-style precious/base metals mineralisation.

No fieldwork was undertaken during the quarter.

Yerranderie: Silver, Lead, Gold; Central NSW (PEX 100%).

Tenement: EL7356.

Targets: Silver-lead-gold mineralisation in surface waste and tailings dumps.

No fieldwork was undertaken during the quarter.

For further information, please contact Managing Director Rob Tyson on mobile 0420 234 020.

The information in this report that relates to Exploration Results is based on information compiled by Mr Robert Tyson who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Tyson has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Persons as defined in the 2004 Edition of the ‘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 their information in the form and context in which it appears.

Appendix 1

1. All drillholes were drilled reverse circulation using 5.5” face sampling hammer.

2. Drill chips were collected in plastic bags at 1m intervals. Sample recoveries were considered adequate for all samples.

3. Drillchips were logged in detail based on lithology, mineralisation, and alteration.

4. Samples for analysis were collected by hand spearing rock chip material.

5. Samples were submitted as 1m or 4m composite intervals.

6. Samples were analysed at ALS Chemex utilising methods: Au‐AA25 for Au (fire assay); ME‐ICP61 for multi-element including Ag, Cu, Pb, Zn; Pb-OG62 for >1% Pb; and Zn-OG62 for >1% Zn.

7. Standards for Au and base metals were routinely included (approximately 5% of all samples). Duplicates were also included (approximately 2% of all samples).

8. Drillhole collars were surveyed by handheld GPS (Garmin GPS72).

9. Downhole surveys were routinely run at approximately every 60m downhole and at the end of each hole.

Appendix 2

1. All drillholes listed above were drilled reverse circulation using 5.5” face sampling hammer.

2. Drill chips were collected in plastic bags at 1m intervals. Sample recoveries were considered adequate for all samples.

3. Samples for analysis were collected by splitting from rig mounted cyclone.

4. Samples were submitted as 1m intervals.

5. Samples were analysed at ALS Chemex utilising method Au‐AA30 for Au (50g fire assay).

6. Standards for Au were routinely included (approx. 5% of all samples). Duplicates were also included (approx. 5% of all samples).

7. Drillhole collars were surveyed by DGPS (GDA94 Zone 51).

8. Downhole surveys were routinely run at approximately every 30m downhole and at the end of each hole.

Appendix 3

1. Rock chips were collected from dump material or outcrop.

2. Samples were analysed at ALS Chemex utilising methods: Au‐AA25 for Au (fire assay); ME‐ICP61 for multi-element including Ag, Cu, Pb, Zn; Ag-OG62 for >100 ppm Ag; and Pb-OG62 for >1% Pb.

3. Sample locations were surveyed by handheld GPS.

11

Peel Mining Limited – Quarterly Report June 2011