PEEL MINING LIMITED — Interim / Quarterly Report 2015

Jan 29, 2015

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Peel Mining Limited

ABN Quarter ended ("current quarter")

42 119 343 734 31 December 2014

Consolidated statement of cash flows

			Current Quarter	Year to Date
Cash flows related to operating activities			$A'000	(6 months)$A'000
1.1	Receipts from product sales and related debtors		-	-
1.2	Payments for	(a) exploration & evaluation	-	-
	(b) development		-	-
	(c) production		-	-
	(d) administration		(161)	(361)
1.3	Dividends received		-	-
1.4	Interest and other items of a similar naturereceived		-	-
1.5	Interest and other costs of finance paid		-	-
1.6	Income taxes paid/received		-	-
1.7	Other:
	(a) R&D tax offset		-	76
	Net Operating Cash Flows		(161)	(285)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a) prospects		-	-
		(b) equity investments	-	-
		(c) other fixed assets	(12)	(33)
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:
		(a) Payments for exploration & evaluation	(524)	(1,500)
	(b) Transfers(to)/from for security
	deposits		(30)	(50)
	(c) Interest received		15	38
		(d) Proceeds from Farm-in arrangement	652	652
	Net investing cash flows		101	(893)
1.13	Total operating and investing cash flows (carriedforward)		(60)	(1,178)

1.13	Total operating and investing cash flows
	(brought forward)	(60)	(1,178)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	-	32
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 share issues	-	(2)
	Net financing cash flows	-	30
	Net increase (decrease) in cash held	(60)	(1,148)
1.20	Cash at beginning of quarter/year to date	2,027	3,115
1.21	Exchange rate adjustments to item 1.20	-	-
1.22	Cash at end of quarter	1,967	1,967

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 1.23 represents payments to directors for director's fees, superannuation and rental of office space.

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 Nil

Financing facilities available

Add notes as necessary for an understanding of the position.

		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 (*)	746
4.2	Development	-
4.3	Production	-
4.4	Administration	238
	Total	984

(*) Estimated exploration and evaluation cash outflows disclosed above at 4.1 includes $520,000 of expenditure forecast for the March quarter in relation to the Memorandum of Agreement (MoA) with Japan Oil, Gas and Metals National Corporation (JOGMEC), which was approved by the Foreign Investment Review Board on 7th November 2014. Details of the MoA can be found in the company's ASX Announcement released on 30 September 2014. Peel expects to receive cash calls of $348,000 from JOGMEC, in addition to those at 1.12(d), to fund this exploration.

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
5.1	Cash on hand and at bank	667	127
	Deposits at call	1,300	1,900
	Bank overdraft	-	-
	Other (Farm-in Agreement funds)	-	-
	Total: cash at end of quarter (item 1.22)	1,967	2,027

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 tenements	EL 6884	Tenement owner	100%	0%
	relinquished, reduced or lapsed	EL 7633	Tenement owner	100%	0%
		EL 7403	Tenement owner	100%	0%
		EL 8217	Tenement owner	100%	0%
6.2	Interests in mining tenements	E40/0337	Tenement owner	0%	100%
	acquired or increased	EL 8307	Tenement owner	0%	100%
		EL 8326	Tenement owner	0%	100%
		EL 8314	Tenement owner	0%	100%
		EL 8247	Tenement owner	0%	100%
		EL 8336	Tenement owner	0%	100%

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 note 3)(cents)	per security (seenote 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	132,485,969	132,485,969
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(description and	1,000,000	Nil	Exercise Price$0.50	Expiry Date28/11/2015
	conversion factor)	1,500,000	Nil	$0.50	28/11/2015
		280,000	Nil	$0.50	30/06/2015
7.8	Issued during
	quarter	1,000,000	Nil	0.07	5/12/2017
7.9	Exercised during
	quarter
7.10	Expired during
	quarter	Nil	Nil
7.11	Debentures
	(totals only)
7.12	Unsecured notes
	(totals only)

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: 30 January 2015

(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.