PEEL MINING LIMITED — Interim / Quarterly Report 2014

Apr 29, 2014

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, 01/06/10.

Name of entity

Peel Mining Limited

ABN Quarter ended ("current quarter")

42 119 343 734 31 March 2014

Consolidated statement of cash flows

Cash flows related to operating activities		Current quarter$A'000	Year to date(9.months)$A'000
1.1	Receipts from product sales and related debtors		-	-
1.2	Payments for(a) exploration & evaluation(b) development(c) production(d) administration		(1,547)--(164)	(4,229)--(686)
1.3	Dividends received		-	-
1.4	Interest and other items of a similar naturereceived		34	147
1.5	Interest and other costs of finance paid		-	-
1.6	Income taxes paid		-	-
1.7	Other (provide details if material)		1,830	3,330
	Net Operating Cash Flows		153	(1,438)
	Cash flows related to investing activities
1.8	Payment for purchases of:(a) prospects		-	-
		(b) equity investments	-	-
		(c) other fixed assets	(45)	(992)
1.9	Proceeds from sale of:(a) prospects		-	-
		(b) equity investments	-	-
		(c) other fixed assets	-	-
1.10	Loans to other entities		-	-
1.11	Loans repaid by other entities		-	-
1.12	Other (provide details if material)		-	-
	Net investing cash flowsTotal operating and investing cash flows (carriedforward)		(45)	(992)
1.13			108	(2,430)

+ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows (brought
	forward)	108	(2,430)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	-	-
1.15	Proceeds from sale of forfeited shares	-	-
1.16	Proceeds from borrowings	-	-
1.17	Repayment of borrowings	-	-
1.18	Dividends paid	-	-
1.19	Other – Costs of issue of shares	-	-
	Net financing cash flows	-	-
	Net increase (decrease) in cash held	108	(2,430)
1.20	Cash at beginning of quarter/year to date	3,827	6,365
1.21	Exchange rate adjustments to item 1.20	-	-
1.22	Cash at end of quarter	3,935	3,935

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	(42)
1.24	Aggregate amount of loans to the parties included in item 1.10	Nil

• 1.25 Explanation necessary for an understanding of the transactions
  • 1.7 Cash calls (payments) from CBH Resources Limited (CBH) are part of a Farm-In Agreement of Peel Mining Limited's (Peel) Mallee Bull Project. During the quarter CBH completed funding requirements for Stage 3 of the farm-in, which saw them fund $3.33 million on exploration to earn an additional 20% of the project, taking their total interest in the project to 50%. (CBH completed stages 1 and 2 of the farmin during the previous financial year which earned CBH a 30% stake in the Mallee Bull Project.)

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows Nil

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Peel Mining Limited executed a farm-in agreement with CBH Resources Limited (farm-in now completed) pursuant to which CBH could earn a 50% interest in Peel's Mallee Bull Project. In the current quarter CBH provided funding of $1,830,000, to complete their $3,330,000 obligation to earn an additional 20% of the project. As a result of the satisfaction of the terms of the farm-in CBH now holds a 50% interest in the Mallee Bull Project.

Financing facilities available

Add notes as necessary for an understanding of the position.

+ See chapter 19 for defined terms.

		Amount available$A'000	Amount used$A'000
3.1	Loan facilities	Nil	Nil
3.2	Credit standby arrangements	Nil	Nil

Estimated cash outflows for next quarter

		$A'000
4.1	Exploration and evaluation	600
4.2	Development	-
4.3	Production	-
4.4	Administration	180
	Total	780

Reconciliation of cash

Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows)to the related items in the accounts is as follows.		Current quarter$A'000	Previous quarter$A'000
5.1Cash on hand and at bank		385	177
56	Deposits at call	3,550	3,650
800	Bank overdraft	-	-
	Other (Farm-in Agreement funds)	-	-
43	Total: cash at end of quarter (item 1.22)	3,935	3,827
899

Changes in interests in mining tenements

(Refer to Annexure of Quarterly Activity Statement)

		Tenementreference	Nature of interest(note (2))	Interest atbeginning ofquarter	Interest atend ofquarter
6.1	Interests in mining tenementsrelinquished, reduced or lapsed	EL 7461	JointinterestwithCBH Resources Ltd	70%	50%
6.2	Interests in mining tenementsacquired or increased

+ See chapter 19 for defined terms.

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 per	Amount paid up
				security (see	per security (see
				note 3) (cents)	note 3) (cents)
7.1	Preference
	+securities
	(description)
7.2	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through returns of
	capital, buy-backs,
	redemptions
7.3	+Ordinary
	securities	132,085,969	132,085,969
7.4	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through returns of
	capital, buy-backs
7.5	+Convertible debt
	securities
	(description)
7.6	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through securities
	matured, converted
7.7	Options			Exercise Price	Expiry Date
	(description and	400,000	Nil	$0.08	31/07/2014
	conversion factor)	1,000,000	Nil	$0.50	28/11/2015
		1,500,000	Nil	$0.50	28/11/2015
		320,000	Nil	$0.50	30/06/2015
7.8	Issued during	Nil	Nil
	quarter
7.9	Exercised during	Nil	Nil
	quarter
7.10	Expired during
	quarter	Nil	Nil
7.11	Debentures
	(totals only)
7.12	Unsecured notes
	(totals only)

+ See chapter 19 for defined terms.

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.

(Company secretary)

Sign here: Date: 30 April 2014

Print name: Ryan Woodhouse

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.