PEEL MINING LIMITED — Interim / Quarterly Report 2014

Jan 30, 2014

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, 01/06/10.

Name of entity

	Name of entity
	Peel Mining Limited
	ABN 42 119 343 734 Consolidated statement of cash flows
			31 December 2013
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows		Current quarter $A’000		Year to date (6.months) $A’000
		(1,768) - - (336) - 49 - - 600		(2,677) - - (527) - 113 - - 1,500
		(1,455)		(1,591)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 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 flows 1.13 Total operating and investing cash flows (carried forward)		- - (145) - - - - - -		- - (947) - - - - - -
		(145)		(947)
		(1,600)		(2,538)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(1,600)	(2,538)
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 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(1,596) 5,427 -	(2,538) 6,365 -
	3,827	3,827

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

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		(45)
		Nil
1.25	Explanation necessaryfor an understandingof 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. CBH are currently funding Stage 3 of the farm-in which will see them fund $3.33 million on exploration to earn an additional 20% of the project. CBH completed stages 1 and 2 of the farm-in during the previous financial year earning a 30% stake in the Mallee Bull Project. Estimate of Cashflows (below) – This estimate includes exploration proposed for the Mallee Bull Project which will be funded by cash calls of $1,830,000 (of a total of $3,330,000) in the next quarter. $900,000 of the $1,830,000 is due back to Peel forprepaid cash calls made duringthe currentquarter(see 2.2).

Non-cash financing and investing activities

2.1 2.2	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
	Nil
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest
	Peel Mining Limited has signed a farm in agreement with CBH Resources Limited for CBH earn an interest in Peel’s Mallee Bull Project. CBH in this quarter has provided cash calls of $600,000, as part of their $3,330,000 obligation to earn an additional 20% of the project. During the quarter, Peel prepaid $900,000 of cash-calls to assist with a timing of the calls and to ensure work continued through to the end of the quarter. It was agreed that the JV would repay the amount in the following quarter. At the date of this report, $450,000 had been repaid with the remainder due in February.

• 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 $A’000	Amount used $A’000
		Nil	Nil
		Nil	Nil

Estimated cash outflows for next quarter

4.1 4.2 4.3 4.4	Exploration and evaluation Development Production Administration	$A’000
		823
		260
	Total	1,083

• 4.1 Exploration and evaluation

• 4.2 Development

• 4.3 Production 4.4 Administration Total

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown 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
5.1 Cash on hand and at bank 56 Deposits at call 800 Bank overdraft Other (Farm-in Agreement funds)	177	327
	3,650	5,100
	-	-
43 Total: cash at end of quarter(item 1.22)	3,827	5,427
899

Changes in interests in mining tenements

(Refer to Annexure of Quarterly Activity Statement)

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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 security (see note3) (cents)	Amount paid up per security (see note3) (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 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital,buy-backs	132,085,969	132,085,969
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured,converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	400,000 1,000,000 1,500,000 320,000	Nil Nil Nil Nil	Exercise Price $0.08 $0.50 $0.50 $0.50	Expiry Date 31/07/2014 28/11/2015 28/11/2015 30/06/2015
	Nil	Nil
	Nil	Nil
	Nil	Nil
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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: 31 January 2014 (Company secretary)

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.

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