PEEL MINING LIMITED — Interim / Quarterly Report 2014

Jan 29, 2015

DECEMBER 2014 QUARTERLY REPORT 30 JANUARY 2015

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

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

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

Contact:

Rob Tyson Managing Director info@peelmining.com.au

About Peel Mining Limited:

• The Company's f iv e projects cover >3,000 km 2of highly prospective tenure in NSW and WA.
• Mallee Bull is an advanced copperpolymetallic deposit that remains open in many directions.
• Cobar Superbasin Project Farm-in Agreement with JOGMEC offers funded, highly-prospective and strategic greenfields exploration potential.
• Apollo Hill hosts a major, protruding, shear-hosted, gold mineralised system that remains open down dip and along strike.
• Attunga Tungsten Deposit is a high grade tungsten deposit.
• Ruby Silver project contains several historic high-grade silver mines.
• 132 million shares on issue for $8m Market Capitalisation at 31 Jan 2013.

Highlights for December quarter 2014

Exploration activities at Cobar Superbasin Project (under Farm-in agreement with Japan Oil, Gas and Metals National Corporation - JOGMEC) commenced with RC, diamond and RAB drilling, along with various geophysical surveys. Encouraging results have been returned including; 24m @ 0.63 g/t Au from start of hole in RSRAB035 including 6m @ 0.97 g/t Au from 12m at Red Shaft, where rock chipping had previously defined a >2 g/t Au (up to 4.99 g/t Au) anomalous zone over a 70m strike.

Review of data at the Mallee Bull resource indicates Pb-Zn mineralisation remains open to the north; down-hole electromagnetic (DHEM) survey data indicates the presence of a conductive body extending northward and along strike from known mineralisation in MBDD024 (4m @ 10.6% Pb, 10.5% Zn, 66 g/t Ag, 0.48 g/t Au from 318m) and MBDD008 (15m @ 7.27% Pb, 3.01% Zn, 73 g/t Ag, 0.74 g/t Au from 394m).

Aircore (AC) drilling completed at the main Apollo Hill/Ra Zone areas and the new 'Stockdale' prospect on E31/1039. Significant results at Apollo Hill include 5m @ 0.54 g/t Au from 30m in PAAC001 and 5m @ 0.37 g/t Au from 25m in PAAC003. Resampling of composite samples to be completed with multiple holes showing mineralisation at end of hole.

Plans for March quarter 2015

• RAB, RC and diamond drilling to continue for high priority targets in the Cobar Superbasin Project.
• Exploration at Mallee Bull to comprise innovative "Orion 3D" high resolution DC/IP and MT surveys to aid understanding of near-deposit geological environment.
• Resampling at Apollo Hill and Stockdale prospects. Planning for follow-up drilling.

Exploration

Mallee Bull Project: Copper, Silver, Gold, Lead, Zinc; Western NSW (PEX 50% and Manager, CBH 50%). Targets: Cobar-style polymetallic mineralisation; Volcanogenic Massive Sulphide mineralisation.

The Mallee Bull project is a 50:50 Joint Venture with CBH Resources Limited (CBH). A maiden JORC compliant Mineral Resource estimate was completed in May 2014, and comprises 3.9Mt at 2.3% copper, 32 g/t silver and 0.3 g/t gold for 90,000 tonnes of contained copper, 4 million ounces contained silver and 43,000 ounces contained gold (at a 1% copper equivalent cut-off); details can be found in the announcement released 27 May 2014 "High Grade Copper Resource at Mallee Bull".

The Mineral Resource estimate formed the basis of a scoping study which was completed at the end of the September quarter. This study highlighted amongst other things the benefits of increasing the scale of Mallee Bull. Encouragingly, review of data indicates the likelihood of mineralisation remaining open to the north, in particular for lead and zinc. Down-hole Electromagnetic (DHEM) surveying of diamond hole MBDD010W1 showed a high frequency anomaly at 435m down hole, which coincides with a navi-cut interval from 423.6m to 442.1m. Consequently, geological information on this area is lacking and the possibility exists for a zone of mineralisation to have been missed. Analysis of the geophysics data is highly supportive, with confirmation that a good conductive source in or very close to the hole at approximately 430m is present. With an estimate of approximately 5ms time constant, it is consistent with Pb/Zn mineralisation.

During the quarter, an additional DHEM survey was completed on hole MBDD024 (4m @ 10.6% Pb, 10.5% Zn, 66 g/t Ag, 0.48 g/t Au from 318m), which lies updip and along strike (south) of MBDD010W1, aiming to detect any conductors other than the main lodes that may be located to the north. A clear on-hole anomaly was observed at 325m down hole with the centre of conductivity of the causative body interpreted to be south of the drill hole, marrying well with mineralisation in hole MBDD008 (35m @ 3.42% Pb, 1.51% Zn, 54 g/t Ag, 1.16 g/t Au from 374m including 15m @ 7.27% Pb, 3.01% Zn, 73 g/t Ag, 0.74 g/t Au from 394m). Furthermore, the down dip portion of the causative body extends northward, coincident with the modelled plate identified from MBDD010W1.

Other work during the quarter saw exploration away from Mallee Bull with further gravity surveying and portable XRF sampling continuing to cover the broader project area and follow up on previous significant results. To the north-west of Mallee Bull, coincident Cu/Zn-Pb portable XRF anomalies were identified near a major magnetic structure along historic workings. Named 'The Crucible' prospect, subsequent rock chip sampling showed highly encouraging values for gold including 0.66 g/t Au, 0.97 g/t Au, 2.4 g/t Au and 3.16 g/t Au. A preliminary bouguer gravity survey completed over the area confirmed the presence of local highs proximal to the magnetic structure. Follow-up geochemical sampling is planned for the next quarter.

Subsequent to the quarter's end, further field activities have been undertaken or are now underway. A high-resolution (50m line spacing) airborne magnetic/radiometric survey has recently been completed over the entirety of EL7461, and an "Orion 3D" DC/IP and MT survey of approximately 5km2is now underway. Orion 3D is a cutting edge geophysical system and will assist in better understanding the neardeposit geological environment, aiming to detect and delineate zones and structures related to the emplacement of sulphide mineralisation from the surface to greater depths (up to 700m with IP chargeability and up to 1500m with MT resistivity). With its higher accuracy and resolution, the Orion 3D survey is expected to guide the next phase of exploration at Mallee Bull. Other work planned for the coming months includes airborne EM over the entire tenement and further drilling at Mallee Bull.

Figure 1: 'The Crucible' Cu soil anomaly

Figure 2: 'The Crucible' Zn soil anomaly

Cobar Superbasin Project: Copper, Silver, Gold, Lead, Zinc; Western NSW (PEX 100%).

Targets: Cobar-style polymetallic mineralisation; Volcanogenic Massive Sulphide mineralisation.

As announced last quarter, the Cobar Superbasin Project is subject to a Memorandum of Agreement (MoA) with Japan Oil, Gas, and Metals National Corporation (JOGMEC), under which JOGMEC may earn up to 50% interest by funding up to $7 million of exploration. Exploration under this MoA commenced in the December quarter following Foreign Investment Review Board (FIRB) approval, encompassing $1

million expenditure by 31 March 2015. Exploration is now well underway at the Mundoe, Sandy Creek, Red Shaft and Wirlong prospects, comprising IP and gravity surveys, RC, Diamond and RAB drilling.

Mundoe

The Mundoe prospect lies about 50km SSE of Gilgunnia (50km S of Mallee Bull), and is defined by a 2km long multi-element geochemical anomaly proximal to a magnetic anomaly. RC drilling by Peel in December 2012 returned significant results including 13m @ 28 g/t Ag, 0.76% Cu from MURC003 and 19m @ 0.33 g/t Au from 8m, 23m @ 25 g/t Ag and 0.4% Cu from 129m in MURC005. As follow-up, 3 RC drill holes were completed during the December quarter, testing for northerly and southerly extensions to the existing base and precious metal mineralisation. Significant results include 26m @ 15.2 g/t Ag, 0.33% Cu from 97m including 7m @ 29.6 g/t Ag, 0.42% Cu from 97m and 1m @ 71 g/t Ag, 2.89% Cu from 165m in MURC011, which was drilled between holes MURC003 and MURC005; 8m @ 55.3 g/t Ag, 0.15% Cu from 205m including 1m @ 56 g/t Ag, 0.45% Cu from 205m and 2m @ 138 g/t Ag, 0.13% Cu from 209m in MURC012, potentially extending known mineralisation at Mundoe approximately 100m further south.

Sandy Creek

At the Sandy Creek prospect, review of depth sections from historic IP data has shown coincident chargeable/resistivity anomalies beneath surface lead geochemical anomalies. Follow-up RC drilling commenced during the December quarter, subsequent to a detailed gravity survey which delineated a 1.4km gravity high anomaly trending N-S; semi-parallel to known mineralisation at Sandy Creek and correlating well with the re-modelled chargeable body trend.

Figure 3: Sandy Creek Drilling with Terrain Corrected Gravity Image

During the December quarter 3 RC drillholes were completed. An increase in silicification and fracturing was noted with depth, along with minor pyrite, pyrrhotite, and galena and sphalerite mineralisation. Subsequent to the quarter's end, a diamond tail was undertaken on PSCRCDD002 along with DHEM surveying. Several zones of minor-moderate sulphide mineralisation were encountered, with sulphide mineralisation dominated by pyrrhotite and pyrite with accessory galena, sphalerite and chalcopyrite. At

the time of reporting, the DHEM results were still being modelled/interpreted and drillcore remained to be cut and sampled.

Surface lead geochemical anomalies and anomalous historic RAB results at Sandy Creek were also targeted with new RAB drilling; 51 holes for a total 1,786m were completed. Portable XRF analysis of the drill chips is encouraging, with significant values for Cu, Pb and Zn present at the ends of holes highlighting the potential for mineralisation at greater depth. Results include 1m @ 0.16% Pb from 25m to EOH in PSCRAB12, 1m @ 0.23% Pb in PSCRAB024 from 17m to EOH and 1m @ 0.34% Pb in PSCRAB027 from 43m to EOH, as well as 5m @ 0.15% Cu, 0.29% Pb, 0.18% Zn from 27m in PSCRAB008 including 2m @ 0.36% Cu, 0.55% Pb, 0.43% Zn from 29m.

Further drilling at Sandy Creek is planned.

Wirlong and Red Shaft

At Red Shaft, where previous rock chipping has returned significant Cu, Au, Ag and As values, RAB drilling extended the geochemical coverage beneath zones of shallow cover with a total 40 drill holes. Portable XRF analysis of the drill chips have returned highly elevated values, and gold assays have been equally encouraging:

• 11m @ 0.19% Pb from 4m in RSRAB013, including 3m @ 0.26% Pb from 9m and 1m @ 0.32% Pb from 13m
• 7m @ 0.13% Pb, 0.09% Cu from 16m in RSRAB020, including 1m @ 0.52% Pb, 0.09% Cu from 16m
• 27m @ 0.12% Pb from 6m in RSRAB026, including 3m @ 0.24% Pb from 6m and 2m @ 0.39% Pb from 21m
• 19m @ 0.20% Pb from 1m in RSRAB032, including 3m @ 0.20% Pb from 1m, 2m @ 0.39% Pb from 6m and 1m @ 0.39% Pb from 11m
• 21m @ 0.10% Pb from 28m in RSRAB034, including 3m @ 0.20% Pb from 35m and 2m @ 0.15% Pb from 39m
• 29m @ 0.37% Pb, 0.11% Cu from 1m in RSRAB035, including 3m @ 0.68% Pb, 0.11% Cu from 2m, 3m @ 0.59% Pb, 0.12% Cu from 10m, 2m @ 0.72% Pb, 0.15% Cu from 14m and 3m @ 0.55% Pb, 0.18% Cu from 18m
• 2m @ 0.54% Pb from 8m in RSRAB037
• 6m @ 0.2 g/t Au from 6m and 5m @ 0.31 g/t Au from 30m in RSRAB026
• 2m @ 0.55 g/t Au from 54m in RSRAB034
• 24m @ 0.63 g/t Au from 0m in RSRAB035 including 6m @ 0.97 g/t Au from 12m

The surface anomalies were also tested by RC hole RSRC001, drilled to a maximum depth of 189m. Whilst no significant results were returned, preliminary analysis of the portable XRF data from the RAB drill chips show the eastern Cu-Au-Pb anomalous zone at Red Shaft to be dipping approximately 60 degrees to the west; in this case, the westerly dipping drill hole RSRC001 appears to have run near parallel to mineralisation. Subsequent drilling will dip towards the east to best hit potential mineralisation at Red Shaft.

RAB drilling at Wirlong, where portable XRF and rock chip sampling have identified significant lead anomalies, had similarly encouraging results. Geochemical sampling of all the drill chips has yet to be completed, however results so far include:

• 9m @ 0.41% Pb, 0.19% Zn from 35m in WLRAB003 including 2m @ 1.05% Pb, 0.23% Zn from 39m
• 10m @ 0.39% Pb, 0.10% Zn from 17m in WLRAB008 including 4m @ 0.55% Pb, 0.17% Zn from 21m
• 4m @ 0.27% Pb, 0.12% Zn from 23m in WLRAB009

• 9m @ 0.29% Pb from 17m in WLRAB015 including 3m @ 0.44% Pb from 23m
• 14m @ 0.26% Pb from 10m in WLRAB016

Also during the quarter, an IP survey was also completed over the Wirlong prospect area, defining a 1.1km long by 200m wide strong chargeable anomaly. This chargeable anomaly lies proximal to strong buried magnetic anomalies and beneath surface geochemical anomalies. RC and diamond drilling is soon to commence to target the anomalies between 150-300m below surface.

Figure 4: Wirlong IP Chargeability Section 6445900N showing proposed drillhole WLRC002 (green – 300m total depth); (outer brown shell represents 28 mV/V)

Burthong

At the Burthong prospect, strong coherent Pb, Zn, Cu and As soil anomalies have previously been defined by portable XRF sampling, with additional rock chip samples returning up to 50ppm Ag. To test for chargeable bodies, an IP survey was completed this quarter, delineating a coincident low order chargeable/low resistivity anomaly 50-150m west of the As anomalous zone. RAB drilling is planned as follow-up in the March quarter.

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

Targets: Archaean gold deposits.

Exploration activities at the Apollo Hill Project have targeted potential mineralisation away from the main resource zone. An 81-hole aircore (AC) drilling program was completed for a total 2,000m at two prospects; along strike from the main Apollo Hill deposits and also at the new 'Stockdale' prospect. The majority of holes were very shallow owing to difficulties in ground penetration, with the maximum hole depth at 63m. At the Apollo Hill area, four traverses of AC holes were drilled to test for a northern extension of the Ra Zone, whilst 7 AC holes were completed within M39/1198 to test for mineralisation to the south-east of the main Apollo Hill resource.

Encouragingly, the northern-most line of holes from the Ra Zone returned significant results, potentially extending mineralisation from the Ra Zone further to the north-west. These holes are amongst the deepest from the program and mineralisation occurs towards the ends of holes, indicating that any significant mineralisation present at depth is likely to have been missed by the shallow drilling. Results

include 5m @ 0.54 g/t Au from 30m in PAAC01, 11m @ 0.20 g/t Au from 35m to EOH in PAAC02 including 3m @ 0.23 g/t Au from 43m, 9m @ 0.25 g/t Au from 25m to EOH in PAAC003 including 5m @ 0.37 g/t Au, and 10m @ 0.21 g/t Au from 20m to EOH in PAAC04 including 5m @ 0.35 g/t Au from 20m. All results reported are from 5m composite samples, or lesser when the EOH occurred on a metre depth individable by the composite width. Resampling of anomalous results will be completed this quarter.

Figure 5: Apollo Hill/Ra Zone AC Drill Plan

Approximately 15km south-east of the Apollo Hill resource, lies the Stockdale prospect (located on E31/1039), where Peel has an exclusive option for a period of up to 3 years, to purchase the tenement for total consideration of $250,000 and a royalty. Limited historic exploration has been conducted in the area, however recent prospecting activities by the grantor of the option has shown the potential for primary gold mineralisation, and a total 58 AC holes were completed. As at the Apollo Hill main zone, anomalous values were returned despite the termination of all holes at shallow depths. Significant results include 5m @ 0.26 g/t Au from 30m in PSAC008 and 5m @ 0.55 g/t Au from 40m in PSAC024. All results reported are from 5m composite samples, or lesser when the EOH occurred on a metre depth individable by the composite width. Resampling of anomalous results will be completed this quarter.

Figure 6: Stockdale Prospect AC Drill Plan

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

Targets: Intrusive-Related Gold System and/or Orogenic gold mineralisation; skarn type tungstenmolybdenum mineralisation and skarn-type precious/base metals mineralisation

No fieldwork was undertaken during the quarter.

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

Targets: Silver mineralisation associated with fracture-fill quartz-carbonate veining.

No fieldwork was undertaken during the quarter.

Corporate

No corporate activity was completed during the quarter.

For further information, please contact Managing Director Rob Tyson on mobile (08) 9382 3955.

Competent Persons Statements

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 style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person 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 his information in the form and context in which it appears.

Criteria	JORC Code explanation	Commentary
Samplingtechniques	Nature and quality of sampling (eg cut channels,random chips, or specific specialised industrystandard measurement tools appropriate to theminerals under investigation, such as down holegamma sondes, or handheld XRF instruments, etc).These examples should not be taken as limiting thebroad meaning of sampling.Include reference to measures taken to ensuresamplerepresentivityandtheappropriatecalibration of any measurement tools or systemsused.Aspects of the determination of mineralisation thatare Material to the Public Report.In cases where 'industry standard' work has beendone this would be relatively simple (eg 'reversecirculation drilling was used to obtain 1 m samplesfrom which 3 kg was pulverised to produce a 30 gcharge for fire assay'). In other cases moreexplanation may be required, such as where there iscoarse gold that has inherent sampling problems.	Diamond, reverse circulation (RC) andRotary Air Blast (RAB) drilling were used toobtain samples for geological logging andassaying.Diamond core was cut and sampled at 1mintervals. RC and RAB drill holes weresampled at 1m intervals and split using acone splitter attached to the cyclone togenerate a split of 2-4kg to ensure samplerepresentivity.Multi-element readings were taken of theRC and RAB drill chips using an OlympusDelta Innov-X portable XRF tool. TheportableXRFwascalibratedagainststandards after every 30 readings.

Table 1 - Section 1: Sampling Techniques and Data for Mallee Bull/Cobar Superbasin Project

CriteriaJORC Code explanationCommentary
Unusual commodities or mineralisation types (egsubmarine nodules)may warrant disclosure ofdetailed information.
DrillingDrill type (eg core, reverse circulation, open-holeDrilling to date has been a combination oftechniqueshammer, rotary air blast, auger, Bangka, sonic, etc)diamond, reverse circulation and rotary airand details (eg core diameter, triple or standardblast. Reverse circulation drilling utilised atube, depth of diamond tails, face-sampling bit or5 1/2 inch diameter hammer. A blade bitother type, whether core is oriented and if so, bywas predominantly used for RAB drilling.what method, etc).NQ and HQ coring was used for diamonddrilling.
DrillsampleMethod of recording and assessing core and chipCore recoveries are recorded by the drillersrecoverysample recoveries and results assessed.in the field at the time of drilling andchecked by a geologist or technician.Measures taken to maximise sample recovery andensure representative nature of the samples.RC and RAB samples are not weighed on aregular basis due to the exploration natureWhether a relationship exists between sampleofdrillingbutnorecovery and grade and whether sample bias mayrecovery issues have been encountered inhave occurred due to preferential loss/gain ofdrilling programs to date.fine/coarse material.Diamondcoreiscontinuous runs on an angle iron cradle fororientationmarkingchecked against the depths recorded oncore blocks. Rod counts are routinelyundertaken by drillers.Whenpoorsampleencountered during drilling, the geologistand driller have endeavoured to rectify theproblem to ensure maximum samplerecovery.Sample recoveries to date have generallybeen high. Insufficient data is available atpresent to determine if a relationshipexists between recovery and grade. Thiswill be assessed once a statistically validamount of data is available to make adetermination.	significantsamplereconstructedintoanddepthsarerecoveryis
LoggingWhethercoreandchipsampleshavebeenAllcoreanddrillchipgeologically and geotechnically logged to a level ofgeologically logged. Core samples aredetail to support appropriate Mineral Resourceorientated and logged for geotechnicalestimation,miningstudiesandmetallurgicalinformation. Drill chip samples are loggedstudies.at 1m intervals from surface to the bottomof each individual hole to a level that willWhether logging is qualitative or quantitative insupportappropriatenature. Core (or costean, channel, etc) photography.Resource studies.The total length and percentage of the relevantLogging of diamond core, RC and RABintersections logged.samples records lithology, mineralogy,mineralisation,structureweathering, colour and other features ofthe samples. Core is photographed as bothwet and dry.All diamond, RC and RAB drill holes in thecurrent program were geologically loggedin full.Sub-samplingIf core, whether cut or sawn and whether quarter,Drill core was cut with a core saw and half	samplesarefutureMineral(DDHonly),
techniqueshalf or all core taken.core taken.

Criteria	JORC Code explanation	Commentary
andsamplepreparation	If non-core, whether riffled, tube sampled, rotarysplit, etc and whether sampled wet or dry.For all sample types, the nature, quality andappropriatenessofthesamplepreparationtechnique.Quality control procedures adopted for all subsampling stages to maximise representivity ofsamples.Measures taken to ensure that the sampling isrepresentative of the in situ material collected,includingforinstanceresultsforfieldduplicate/second-half sampling.Whether sample sizes are appropriate to the grainsize of the material being sampled.	The RC and RAB drilling rigs were equippedwith an in-built cyclone and splittingsystem, which provided one bulk sample ofapproximately 20kg and a sub-sample of 2-4kg per metre drilled.All samples were split using the systemdescribed above to maximise and maintainconsistent representivity. The majority ofsamples were dry.Bulk samples were placed in green plasticbags, with the sub-samplescollectedplaced in calico sample bags.Field duplicates were collected by resplitting the bulk samples from largeplasticbags.Theseduplicatesweredesigned for lab checks.Early stage exploration sees compositesampling completed for Au only analysis,with samples hand speared using a halfround piece of pipe with samples collectedas6mcomposites.Resamplingisundertaken using split samples which arestored with the bulk samples at the time ofdrilling.A sample size of 2-4kg was collected andconsideredappropriateandrepresentative for the grain size and styleof mineralisation.
Qualityofassaydataandlaboratorytests	The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial or total.For geophysical tools, spectrometers, handheld XRFinstruments,etc,theparametersusedindetermining the analysis including instrument makeand model, reading times, calibrations factorsapplied and their derivation, etc.Nature of quality control procedures adopted (egstandards, blanks, duplicates, external laboratorychecks) and whether acceptable levels of accuracy(ie lack of bias) and precision have been established.	ALS Laboratory (Orange) was used for Auanalysis work carried out on the 1m drillchip samples. The laboratory techniquesbelow are for all samples submitted to ALSand are considered appropriate for thestyle of mineralisation defined at Mundoe,Sandy Creek, Wirlong and Red Shaft:oPUL-23 (Sample preparationcode)oAu-AA26 Ore Grade Au 50gFA AA FinishAssaying of soil samples in the field was byportable XRF instrument Olympus DeltaInnov-X Analyser. Reading time was 20seconds per filter with a total 3 filters persample.TheQA/QCdataincludesstandards,duplicatesandlaboratorychecks.Duplicates for drill core are collected bythe lab every 30 samples after the coresampleispulverised.Duplicatesforpercussion drilling are collected directlyfrom the drill rig or the metre sample bagusing a half round section of pipe. In-houseQA/QC tests are conducted by the lab oneach batch of samples with standards

Criteria	JORC Code explanation	Commentary
Verification ofsampling andassaying	The verification of significant intersections by eitherindependent or alternative company personnel.The use of twinned holes.Documentationofprimarydata,dataentry	supplied by the same companies thatsupply our own.Allgeologicalloggingandsamplinginformation is completed in spreadsheets,which are then transferred to a databasefor validation and compilation at the Peelheadoffice.Electroniccopiesofall
	procedures, data verification, data storage (physicaland electronic) protocols.Discuss any adjustment to assay data.	information are backed up periodically.Noadjustmentsofassaydataareconsidered necessary.
Locationofdata points	Accuracy and quality of surveys used to locate drillholes (collar and down-hole surveys), trenches, mineworkings and other locations used in MineralResource estimation.Specification of the grid system used.Quality and adequacy of topographic control.	A Garmin hand-held GPS is used to definethe location of the drillholes and /orsamples. Standard practice is for the GPSto be left at the site of the collar for aperiod of 10 minutes to obtain a steadyreading. Collars are picked up after byDGPS. Down-hole surveys are conductedby thedrill contractors using either aReflex gyroscopic tool with readings every10m after drill hole completion or a Reflexelectronic multi-shot camera will be usedwithreadingsfordipandmagneticazimuth taken every 30m down-hole.QA/QC in the field involves calibrationusing a test stand. The instrument ispositioned with a stainless steel drill rod soas not to affect the magnetic azimuth.Grid system used is MGA 94 (Zone 55). Alldown-holemagneticsurveyswereconverted to MGA94 grid.
Data spacinganddistribution	Data spacing for reporting of Exploration Results.Whether the data spacing and distribution issufficient to establish the degree of geological andgrade continuity appropriate for the MineralResource and Ore Reserve estimation procedure(s)and classifications applied.Whether sample compositing has been applied.	Data/drill hole spacing is variableandappropriate to the geology and historicaldrilling.6m sample compositing has been appliedto RC drilling at Red Shaft and Mundoe forgold assay, and to RAB drilling at SandyCreek, Red Shaft and Wirlong.
Orientation ofdatainrelationtogeologicalstructure	Whether the orientation of sampling achievesunbiased sampling of possible structures and theextent to which this is known, considering thedeposit type.If the relationship between the drilling orientationand the orientation of key mineralised structures isconsidered to have introduced a sampling bias, thisshould be assessed and reported if material.	Most drillholes are planned to intersect theinterpreted mineralised structures/lodesas near to a perpendicular angle aspossible (subject to access to the preferredcollar position).
Samplesecurity	The measures taken to ensure sample security.	The chain of custody is managed by theproject geologist who places calico samplebags in polyweave sacks. Up to 5 calicosample bags are placed in each sack. Eachsack is clearly labelled with:oPeel Mining LtdoAddress of LaboratoryoSample range

Criteria	JORC Code explanation	Commentary
		Detailed records are kept of all samplesthat are dispatched, including details ofchain of custody.
Auditsorreviews	The results of any audits or reviews of samplingtechniques and data.	Data is validated when loading into thedatabase. No formal external audit hasbeen conducted.

Table 1 - Section 2 - Reporting of Exploration Results for Mallee Bull/Cobar Superbasin Project

Criteria	JORC Code explanation	Commentary
Mineraltenement andlandtenurestatus	Type,referencename/number,locationandownership including agreements or material issueswiththirdpartiessuchasjointventures,partnerships,overridingroyalties,nativetitleinterests, historical sites, wilderness or nationalpark and environmental settings.The security of the tenure held at the time ofreporting along with any known impediments toobtaining a licence to operate in the area.	The Mallee Bull prospect is wholly locatedwithinExplorationLicenceEL7461"Gilgunnia". The tenement is subject to a50:50 Joint Venture with CBH ResourcesLtd, a wholly owned subsidiary of TohoZinc Co Ltd.The following tenements of the CobarSuperbasin Project reported on in theDecember 2014 quarter are subject to aFarm-in agreement with Japan Oil, Gas andMetals National Corporation (JOGMEC):oEL8307 "Sandy Creek"oEL7976 "Mundoe"oEL8115 "Burthong"The tenements are in good standing and no
Explorationdone by otherparties	Acknowledgment and appraisal of exploration byother parties.	known impediments exist.Work was completed in the area by formertenementholdersTriakoResourcesbetween 2003 and 2009; it includeddiamond drilling, IP surveys, geologicalmapping and reconnaissance geochemicalsampling around the historic Four MileGoldfield area. Prior to Triako Resources,Pasminco Exploration explored the CobarBasin area for a "Cobar-type" or "Eluratype" zinc-lead-silver or copper-gold-leadzinc deposit.
Geology	Deposit type, geological setting and style ofmineralisation.	The prospect area lies within the Cobar-MtHope Siluro-Devonian sedimentary andvolcanic units. The northern Cobar regionconsistsof predominantly sedimentaryunits with tuffaceous member, whilst thesouthern Mt Hope region consists ofpredominantly felsic volcanic rocks; theMallee Bull prospect seems to be locatedin an area of overlap between these tworegions. Mineralization at the Mallee BulldiscoveryfeaturestheCobar-styleattributes of short strike lengths (<200m),narrowwidths(5-20m)andverticalcontinuity, and occurs as a shoot-likestructure dipping moderately to the west.
DrillholeInformation	A summary of all information material to theunderstanding of the exploration results including atabulation of the following information for allMaterial drill holes:	All relevant information material to theunderstanding of exploration results hasbeen included within the body of theannouncement or as appendices.

Criteria	JORC Code explanation	Commentary
	oeasting and northing of the drill hole collaroelevation or RL (Reduced Level – elevation abovesea level in metres) of the drill hole collarodip and azimuth of the holeodown hole length and interception depthohole length.If the exclusion of this information is justified on thebasis that the information is not Material and thisexclusion does not detract from the understandingof the report, the Competent Person should clearlyexplain why this is the case.	No information has been excluded.
Data	InreportingExplorationResults,weighting	No length weighting or top-cuts have been
aggregationmethods	averaging techniques, maximum and/or minimumgrade truncations (eg cutting of high grades) andcut-off grades are usually Material and should bestated.Where aggregate intercepts incorporate shortlengths of high grade results and longer lengths oflow grade results, the procedure used for suchaggregation should be stated and some typicalexamples of such aggregations should be shown indetail.The assumptions used for any reporting of metalequivalent values should be clearly stated.	applied.No metal equivalent values are used forreporting exploration results.
Relationship	These relationships are particularly important in the	True widths are generally estimated to be
betweenmineralisationwidthsandinterceptlengths	reporting of Exploration Results.If the geometry of the mineralisation with respectto the drill hole angle is known, its nature should bereported.If it is not known and only the down hole lengths arereported, there should be a clear statement to thiseffect (eg 'down hole length, true width notknown').	about 60% of the downhole width.
Diagrams	Appropriate maps and sections (with scales) andtabulations of intercepts should be included for anysignificant discovery being reported These shouldinclude, but not be limited to a plan view of drill holecollar locations and appropriate sectional views.	Refer to Figures in the body of text.
Balancedreporting	Where comprehensive reporting of all ExplorationResults is not practicable, representative reportingof both low and high grades and/or widths shouldbe practiced to avoid misleading reporting ofExploration Results.	All results are reported.
Othersubstantiveexplorationdata	Other exploration data, if meaningful and material,should be reported including (but not limited to):geological observations; geophysical survey results;geochemical survey results; bulk samples – size andmethod of treatment; metallurgical test results;bulk density, groundwater, geotechnical and rockcharacteristics;potentialdeleteriousorcontaminating substances.	No other substantive exploration data areavailable.
Further work	The nature and scale of planned further work (egtests for lateral extensions or depth extensions orlarge-scale step-out drilling).	Future work at Mallee Bull will includegeophysical surveying and diamond drillingtofurtherdefinetheextentofmineralization at the prospect. Drilling will

Criteria	JORC Code explanation	Commentary
	Diagrams clearly highlighting the areas of possibleextensions,includingthemaingeologicalinterpretations and future drilling areas, providedthis information is not commercially sensitive.	continue with the aim of defining a JORCcodecomplaintresource.Downholeelectromagnetic (DHEM) surveys will beused to identify potential conductivesourcesthatmayberelatedtomineralization.Future work within the Cobar Superbasintenementswillinvolvegeophysicalsurveying and RC/diamond drilling totarget existing anomalies.

Table 1 - Section 1: Sampling Techniques and Data for Apollo Hill

Criteria	JORC Code explanation	Commentary
Sampling	Nature and quality of sampling (eg cut channels,	Air Core (AC) drilling was used to obtain
techniques	random chips, or specific specialised industry	samples for geological logging and assaying
	standard measurement tools appropriate to the	AC drill holeswere sampled at 1m
	minerals under investigation, such as down hole	intervals.
	gamma sondes, or handheld XRF instruments, etc).
	These examples should not be taken as limiting the
	broad meaning of sampling.
	Include reference to measures taken to ensure
	samplerepresentivityandtheappropriate
	calibration of any measurement tools or systems
	used.
	Aspects of the determination of mineralisation that
	are Material to the Public Report.
	In cases where 'industry standard' work has been
	done this would be relatively simple (eg 'reverse
	circulation drilling was used to obtain 1 m samplesfrom which 3 kg was pulverised to produce a 30 g
	charge for fire assay'). In other cases more
	explanation may be required, such as where there is
	coarse gold that has inherent sampling problems.
	Unusual commodities or mineralisation types (eg
	submarine nodules) may warrant disclosure of
	detailed information.
Drilling	Drill type (eg core, reverse circulation, open-hole	Air core (AC) drilling was completed in the
techniques	hammer, rotary air blast, auger, Bangka, sonic, etc)	Decemberquarter.ACdrillingwas
	and details (eg core diameter, triple or standard	performed by a 750 CFM R/A 150 Rig with
	tube, depth of diamond tails, face-sampling bit or	cyclone recovery.
	other type, whether core is oriented and if so, by	A blade bit was used for all drilling.
	what method, etc).	All holes were drilled to blade refusal, or
		fresh rock.
Drillsample	Method of recording and assessing core and chip	AC samples are not weighed on a regular
recovery	sample recoveries and results assessed.	basis due to the exploration nature of
	Measures taken to maximise sample recovery and	drilling, but no significant sample recovery
	ensure representative nature of the samples.	issues have been encountered in a drilling
	Whethera relationship exists between sample	program to date.
	recovery and grade and whether sample bias mayhave occurred due to preferential loss/gain of	Whenpoorsamplerecoveryisencountered during drilling, the geologist
	fine/coarse material.	and driller have endeavoured to rectify the
		problem to ensure maximum sample
		recovery.
		Sample recoveries to date have generally
		been high. Insufficient data is available at

Criteria	JORC Code explanation	Commentary
		present to determine if a relationshipexists between recovery and grade. Thiswill be assessed once a statistically validamount of data is available to make adetermination.
Logging	Whethercoreandchipsampleshavebeengeologically and geotechnically logged to a level ofdetail to support appropriate Mineral Resourceestimation,miningstudiesandmetallurgicalstudies.Whether logging is qualitative or quantitative innature. Core (or costean, channel, etc) photography.The total length and percentage of the relevantintersections logged.	All rock chip samples are geologicallylogged. Drill chip samples are logged at 1mintervals from surface to the bottom ofeach individual hole to a level that willsupportappropriatefutureMineralResource studies.Logging of AC samples records lithology,mineralisation, weathering, colour andother features of the samples.All AC drill holes in the program weregeologically logged in full.
Sub-samplingtechniquesandsamplepreparation	If core, whether cut or sawn and whether quarter,half or all core taken.If non-core, whether riffled, tube sampled, rotarysplit, etc and whether sampled wet or dry.For all sample types, the nature, qualityandappropriatenessofthesamplepreparationtechnique.Quality control procedures adopted for all subsampling stages to maximise representivity ofsamples.Measures taken to ensure that the sampling isrepresentative of the in situ material collected,includingforinstanceresultsforfieldduplicate/second-half sampling.Whether sample sizes are appropriate to the grainsize of the material being sampled.	The AC drill rig was equipped with an inbuilt cyclone which provided one bulksample of approximately 20kgThe majority of samples were dry.Bulk samples were placed in green plasticbags.Field duplicates were collected by resplitting the bulk samples from largeplasticbags.Theseduplicatesweredesigned for lab checks.A sample size of 2-4kg was collected andconsideredappropriateandrepresentative for the grain size and styleof mineralisation.
Qualityofassaydataandlaboratorytests	The nature, quality and appropriateness of theassaying and laboratory procedures used andwhether the technique is considered partial or total.For geophysical tools, spectrometers, handheld XRFinstruments,etc,theparametersusedindetermining the analysis including instrument makeand model, reading times, calibrations factorsapplied and their derivation, etc.Nature of quality control procedures adopted (egstandards, blanks, duplicates, external laboratorychecks) and whether acceptable levels of accuracy(ie lack of bias) and precision have been established.	ALS Laboratory (Perth) was used for Auanalysis work carried out on the 5mcompositesamples.Thelaboratorytechniques below are for all samplessubmitted to ALS and are consideredappropriate for the style of mineralisationdefined at Apollo HilloPUL-23 (Sample preparationcode)oAu-AA25 Ore Grade Au 30gFA AA finishTheQA/QCdataincludesstandards,duplicatesandlaboratorychecks.Duplicatesforpercussiondrillingarecollected directly from the drill rig or themetre sample bag using a half roundsection of pipe. In-house QA/QC tests areconducted by the lab on each batch ofsamples with standards supplied by thesame companies that supply our own.
Verification ofsampling and	The verification of significant intersections by eitherindependent or alternative company personnel.	Allgeologicalloggingandsamplinginformation is completed in spreadsheets,
assaying	The use of twinned holes.	which are then transferred to a database

Criteria	JORC Code explanation	Commentary
	Documentationofprimarydata,dataentryprocedures, data verification, data storage (physicaland electronic) protocols.Discuss any adjustment to assay data.	for validation and compilation at the Peelheadoffice.Electroniccopiesofallinformation are backed up periodically.Noadjustmentsofassaydataareconsidered necessary.
Locationofdata points	Accuracy and quality of surveys used to locate drillholes (collar and down-hole surveys), trenches, mineworkings and other locations used in MineralResource estimation.Specification of the grid system used.Quality and adequacy of topographic control.	A Garmin hand-held GPS is used to definethe location of the samples. Standardpractice is for the GPS to be left at the siteof the collar for a period of 10 minutes toobtain a steady reading. Collars are pickedup after by DGPS.Grid system used is MGA94 (Zone 51).
Data spacinganddistribution	Data spacing for reporting of Exploration Results.Whether the data spacing and distribution issufficient to establish the degree of geological andgrade continuity appropriate for the MineralResource and Ore Reserve estimation procedure(s)and classifications applied.Whether sample compositing has been applied.	Data/drillspacingisvariableandappropriate to the geology and historicdrilling.5m sample compositing has been appliedto AC drilling.
Orientation ofdatainrelationtogeologicalstructure	Whether the orientation of sampling achievesunbiased sampling of possible structures and theextent to which this is known, considering thedeposit type.If the relationship between the drilling orientationand the orientation of key mineralised structures isconsidered to have introduced a sampling bias, thisshould be assessed and reported if material.	Most drillholes are planned to intersect theinterpreted mineralised structures/lodesas near to aperpendicular angle aspossible (subject to access to the preferredcollar position).
Samplesecurity	The measures taken to ensure sample security.	The chain of custody is managed by theproject geologist who places calico samplebags in polyweave sacks. Up to 5 calicosample bags are placed in each sack. Eachsack is clearly labelled with:oPeel Mining LtdoAddress of LaboratoryoSample rangeDetailed records are kept of all samplesthat are dispatched, including details ofchain of custody.
Auditsorreviews	The results of any audits or reviews of samplingtechniques and data.	Data is validated when loading into thedatabase. No formal external audit hasbeen conducted.

Table 1 - Section 2 - Reporting of Exploration Results for Apollo Hill

Criteria	JORC Code explanation	Commentary
Mineraltenement andlandtenurestatus	Type,referencename/number,locationandownership including agreements or material issueswiththirdpartiessuchasjointventures,partnerships,overridingroyalties,nativetitleinterests, historical sites, wilderness or nationalpark and environmental settings.	The 100% Peel owned Apollo Hill project islocated 60km southeast of Leonora WA,within a package of Exploration andProspectingLicences(seeTenementInformation Table) and Mining LeaseM39/296
	The security of the tenure held at the time ofreporting along with any known impediments toobtaining a licence to operate in the area.	The Stockdale prospect is located onE31/1039, held by Diana and LindsayStockdale, andis contiguous to Peel'spackage of Exploration and ProspectingLicences.

Criteria	JORC Code explanation	Commentary
		The tenements are in good standing and noknown impediments exist.
Explorationdone by otherparties	Acknowledgment and appraisal of exploration byother parties.	ThemainApolloHilldepositwasdiscovered in 1986 by Fimiston Mining Ltdduring a drill program aimed at finding thesource of abundant eluvial gold at the baseof a prominent hill in the area. ActivedrillingbyFimiston,BattleMountain(Australia)Ltd,HomestakeGoldofAustralia Ltd, Mining Project Investors PtyLtd and Hampton Hill Mining NL since thenhas outlined extensive gold mineralisationand alteration over a 1km strike length.Historic exploration over the Stockdaleprospect area has been minimal. Recentprospectingactivitieshavebeenconducted by Lindsay and Diana Stockdalehas indicated the potential for primarygold mineralisation.
Geology	Deposit type, geological setting and style ofmineralisation.	The project is located in the Archean agedNorseman-Wiluna Belt, Eastern GoldfieldsProvince of the Yilgarn Craton. The depositoccursinamineralisedstructureassociated with the 1km wide Apollo ShearZone, a component of the Keith-KilkennyFault system. Strongly deformed felsicvolcanoclastic rocks lie to the west of theApollo shear, with relatively undeformedpillow basalt and dolerite to the east.Zonesofmylonitisation,shearing,brecciation and fracturing caused by theshear is present along the contact, andresultingopenspacestructuresarefavourable for trapping ore fluids andformingoredeposits.Multiplegoldmineralisation events are interpreted tohave occurred at Apollo Hill during acomplexdeformationalhistory.Goldmineralisation is accompanied by quartzveinsandcarbonate-pyritealterationassociated with a mafic-felsic contact.
DrillholeInformation	A summary of all information material to theunderstanding of the exploration results including atabulation of the following information for allMaterial drill holes:oeasting and northing of the drill hole collaroelevation or RL (Reduced Level – elevation abovesea level in metres) of the drill hole collarodip and azimuth of the holeodown hole length and interception depthohole length.If the exclusion of this information is justified on thebasis that the information is not Material and thisexclusion does not detract from the understandingof the report, the Competent Person should clearlyexplain why this is the case.	All relevant information material to theunderstanding of exploration results hasbeen included within the body of theannouncement or as appendices.No information has been excluded.

Criteria	JORC Code explanation	Commentary
Dataaggregationmethods	InreportingExplorationResults,weightingaveraging techniques, maximum and/or minimumgrade truncations (eg cutting of high grades) andcut-off grades are usually Material and should bestated.Where aggregate intercepts incorporate shortlengths of high grade results and longer lengths oflow grade results, the procedure used for suchaggregation should be stated and some typicalexamples of such aggregations should be shown indetail.The assumptions used for any reporting of metal	No length weighting or top-cuts have beenapplied.No metal equivalent values are used forreporting exploration results.
Relationshipbetweenmineralisationwidthsandinterceptlengths	equivalent values should be clearly stated.These relationships are particularly important in thereporting of Exploration Results.If the geometry of the mineralisation with respectto the drill hole angle is known, its nature should bereported.If it is not known and only the down hole lengths arereported, there should be a clear statement to thiseffect (eg 'down hole length, true width notknown').	True widths are generally estimated to beabout 60% of the down-hole width.
Diagrams	Appropriate maps and sections (with scales) andtabulations of intercepts should be included for anysignificant discovery being reported These shouldinclude, but not be limited to a plan view of drill holecollar locations and appropriate sectional views.	Refer to Figures in the body of text.
Balancedreporting	Where comprehensive reporting of all ExplorationResults is not practicable, representative reportingof both low and high grades and/or widths shouldbe practiced to avoid misleading reporting ofExploration Results.	All results are reported.
Othersubstantiveexplorationdata	Other exploration data, if meaningful and material,should be reported including (but not limited to):geological observations; geophysical survey results;geochemical survey results; bulk samples – size andmethod of treatment; metallurgical test results;bulk density, groundwater, geotechnical and rockcharacteristics;potentialdeleteriousorcontaminating substances.	No other substantive exploration data areavailable.
Further work	The nature and scale of planned further work (egtests for lateral extensions or depth extensions orlarge-scale step-out drilling).Diagrams clearly highlighting the areas of possibleextensions,includingthemaingeologicalinterpretations and future drilling areas, providedthis information is not commercially sensitive.	Future work at Apollo Hill will includesurface geochemical sampling and resampling of significant intervals from the2014 AC drill program.

TENEMENT INFORMATION AS REQUIRED BY LISTING RULE 5.3.3 Granted tenements

TENEMENT	PROJECT	LOCATION	OWNERSHIP	CHANGE IN
				QUARTER
E31/0800	Apollo Hill	Leonora, WA	100%
E39/1198	Apollo Hill	Leonora, WA	100%
E39/1236	Apollo Hill	Leonora, WA	100%
P31/1797	Apollo Hill	Leonora, WA	100%
P39/4586	Apollo Hill	Leonora, WA	100%
P39/4587	Apollo Hill	Leonora, WA	100%
P39/4588	Apollo Hill	Leonora, WA	100%
P39/4589	Apollo Hill	Leonora, WA	100%
P39/4590	Apollo Hill	Leonora, WA	100%
P39/4591	Apollo Hill	Leonora, WA	100%
P39/4592	Apollo Hill	Leonora, WA	100%
P39/4677	Apollo Hill	Leonora, WA	100%
P39/4678	Apollo Hill	Leonora, WA	100%
P39/4679	Apollo Hill	Leonora, WA	100%
P39/4789	Apollo Hill	Leonora, WA	100%
E40/0296	27 Well	Leonora, WA	100%
E40/0303	Bulyairdie	Leonora, WA	100%
M39/0296	Isis	Leonora, WA	100%
E40/0337	The Gap	Leonora, WA	100%	Granted
EL6884	Attunga	Attunga,NSW	100%	Relinquished
EL7633	Attunga Garnet	Attunga,NSW	100%	Relinquished
EL8326	Attunga	Attunga,NSW	100%	Granted
ML1361	Mayday	Cobar,NSW	50%
EL7461	Gilgunnia	Cobar,NSW	50%
EL7711	Ruby Silver	Armidale,NSW	100%
EL7519	Gilgunnia South	Cobar,NSW	100%
EL7976	Mundoe	Cobar,NSW	100%
EL8070	Tara	Cobar,NSW	100%
EL8071	Manuka	Cobar,NSW	100%
EL8105	Mirrabooka	Cobar,NSW	100%
EL8112	Yackerboon	Cobar,NSW	100%
EL8113	Iris Vale	Cobar,NSW	100%
EL8125	Hillview Nth	Cobar,NSW	100%
EL8126	Norma Vale	Cobar,NSW	100%
EL8201	Mundoe North	Cobar,NSW	100%
EL8114	Yara	Cobar,NSW	100%
EL8115	Burthong	Cobar,NSW	100%
EL8117	Illewong	Cobar,NSW	100%
EL7403	Sandy Creek	Cobar,NSW	100%	Relinquished
EL8307	Sandy Creek	Cobar, NSW	100%	Granted
EL8216	Orana	Ivanhoe,NSW	100%
EL8217	Rose Hill	Ivanhoe,NSW	100%	Relinquished
EL8247	Gulf Creek	Barraba,NSW	100%	Granted
EL8314	Glenwood	Cobar, NSW	100%	Granted
EL8336	Brambah	Cobar, NSW	100%	Granted

Tenements under application

TENEMENT	PROJECT	LOCATION	STATUS
E31/1063	Apollo Hill South	Leonora, WA	Under application
E31/1075	Yerilla	Leonora, WA	Under application
E31/1076	Mt Remarkable	Leonora, WA	Under application
M31/486	Apollo Hill ML	Leonora, WA	Under application
E31/1087	Rise Again	Leonora, WA	Under application
P31/2068	Rise Again	Leonora, WA	Under application
P31/2069	Rise Again	Leonora, WA	Under application
P31/2070	Rise Again	Leonora, WA	Under application
P31/2071	Rise Again	Leonora, WA	Under application
P31/2072	Rise Again	Leonora, WA	Under application
P31/2073	Rise Again	Leonora, WA	Under application
ELA5089	Pine Ridge	Cobar, NSW	Under application