PEEL MINING LIMITED — Interim / Quarterly Report 2021

Jan 28, 2021

DECEMBER 2020 QUARTERLY REPORT 29 JANUARY 2021

Highlights for December Quarter 2020

• Consolidation of 100% of Peel's Cobar assets, incl. Mallee Bull, May Day and Wirlong
• Maiden May Day Inferred Mineral Resource Estimate of 1.13 Mt at 1.3 g/t Au, 19 g/t Ag, 0.74% Zn, 0.50% Pb, 0.09% Cu (1.8 g/t AuEq) using 0.65 g/t AuEq cutoff
• Completion of resource definition drilling at May Day targeting a primarily Indicated Mineral Resource classification
• Significant May Day assay results reported during the quarter include:
  • o 14m @ 1.70g/t Au, 82g/t Ag, 3.75% Zn, 3.31% Pb, 1.11% Cu from 148m in MDDD003
  • o 19.8m @ 1.65g/t Au, 20g/t Ag, 1.01% Zn, 0.49% Pb, 0.11% Cu from 24.2m in MDDD007
  • o 19.4m @ 2.10g/t Au, 30g/t Ag, 0.98% Zn, 0.47% Pb, 0.13% Cu from 31.6m in MDDD009
• Drilling at Southern Nights targeting strike and dip extensions to the previously intersected Au-Pb-Ag rich sulphide mineralisation at the southern end of Southern Nights returned new massive sulphide intercepts reported during the quarter including:
  • o 4.6m @ 12.48% Zn, 4.22% Pb, 58g/t Ag, 0.36% Cu, 0.25g/t Au from 273.45m in WTRCDD243
  • o 8m @ 6.30% Zn, 2.74% Pb, 63 g/t Ag, 0.93% Cu, 0.27 g/t Au from 276m in WTRCDD244
• Internal concept study completed on Southern Nights
• Resource definition drilling at Wirlong commenced during the quarter
• Concept study for a centrally located processing plant completed by GR Engineering Services
• Initial ore sorting testwork completed for Southern Nights and Mallee Bull
• Ongoing metallurgical testwork for Southern Nights with focus on producing separate copper, lead and zinc concentrates and gold dore

Plans for March Quarter 2021

• Complete an updated Mineral Resource Estimate at May Day
• Continue resource definition drilling at Wirlong in advance of a maiden Mineral Resource Estimate
• Ongoing metallurgical testwork at May Day and Southern Nights
• Additional ore sorting testwork for May Day, Southern Nights and Mallee Bull
• Commence a concept study for May Day
• Progress the full concept study of the Company's Hub and Spoke development strategy across its South Cobar Project (SCP) assets

Corporate

Settlement of Mallee Bull Joint Venture Interest

In late December , Peel settled the acquisition of its former Joint Venture partners (CBH Resources Limited) 50% share of the Mallee Bull Joint Venture, to take Peel to 100% ownership of the project. The Company paid AUD$17 million to CBH Resources Limited to finalise settlement, after ministerial approval (the final condition precedent to the sale) was received.

Settlement of Purchase Wirlong Royalty

During the quarter, the company settled its purchase of the 1.5% Net Smelter Return (NSR) royalty over tenement EL8307 with Weddarla Pty Ltd, by paying AUD$1.2 million (excluding GST) cash. Following the acquisition, and JOGMEC's withdrawal from the Cobar Superbasin Project (as mentioned in the prior quarterly report), Peel now has 100% unencumbered ownership of all its Cobar Basin tenements.

EL8307 was part of the Cobar Superbasin Project and contains the Wirlong copper-silver deposit, as well as the Sandy Creek and Red Shaft prospects. Wirlong, discovered in 2016, represents a classic Cobar-style VMS copper deposit analogous to the CSA mine. Peel commenced drilling at Wirlong during the quarter with objective of establishing a copper-rich Maiden Mineral Resource Estimate.

Sale of Saturn Metals Limited interest

In mid-November, the Company completed the sale of its remaining holding of 4,000,001 shares in Saturn Metals Limited (ASX: STN). The sale was primarily block traded to institutional investors. The sale proceeds of $2,921,756.93 (before costs) are being utilised to continue advancing the Company's "Hub & Spoke" Development Strategy at its South Cobar Project.

COVID-19

During quarter, the Company continued its precautionary measures as part of its in response to the COVID-19 pandemic. OHS policies continued to be strongly adhered to and monitored to ensure that risk around COVID-19 is minimised for all employees and contractors. Peel continued its field drilling program utilizing predominately NSW-based staff, to minimize air travel. The Company will continue to monitor the situation in relation to COVID-19, and the government's advice around the pandemic, and will seek to act in accordance with this advice to ensure a safe working environment for all its staff.

Pre-development Activities

South Cobar Project Hub & Spoke Strategy

Peel's Cobar assets – now referred to as the South Cobar Project (SCP) – include the above mentioned consolidation of Mallee Bull, May Day deposits and the Cobar Superbasin Project tenure. The company is now focused on a Hub and Spoke development strategy for the project, which centered on establishing critical mass via high quality mineral resource definition at each of Peel's deposits to support a new substantial centrally located processing plant.

Figure 1 - Hub and Spoke Development Model

During the quarter, Peel engaged GR Engineering Services (GRES) to complete a conceptual polymetallic mill design as part of the "Hub and Spoke" model, with the mill envisaged to be centrally located amongst Peel's projects. Post quarter end GRES completed a preliminary process plant technical report for the South Cobar Project that considers crushing, grinding, gravity, flotation and cyanidation process stages for the recovery of gold, silver, copper, lead and zinc relevant to the various mineralisation styles within Peel's deposits. The detailed report will form the basis for future preliminary studies.

Peel also engaged ore sorting specialists Steinert and Tomra to conduct ore sorting testwork on Southern Nights and Mallee Bull mineralisation to establish the potential, at the mine site, of concentrating grade and reducing tonnes to minimise transport and processing costs to develop a new model of delivering higher grade to a regional processing plant. The initial test work was finalized post quarter end with encouraging results.

STEINERT's testwork on Southern Nights mineralisation demonstrated strong recovery and upgrade potential: two size range samples returned on average ~93% Zn, ~91% Pb, ~91% Ag, ~87% Cu, and ~82% Au recoveries to an average of ~54% of the feed mass (~46% of feed mass rejection) increasing the Pb and Zn grades by 61% and 64%, respectively. TOMRA's testwork on Mallee Bull mineralisation achieved significant waste mass reductions while maintaining very high copper recoveries (≥95% for the highergrade Breccia Copper and Massive Sulphide Copper samples). A lower grade Breccia Copper sample upgraded from 0.59% Cu to 1.05% Cu with 77% Cu recovery and 56% mass rejection.

Positive results from ore-sorting at Southern Nights and Mallee Bull deposits provide encouragement for the inclusion of this pre-concentration technology into future process plant design and, as a result Peel has engaged GR Engineering to integrate ore-sorting technology into an updated processing plant technical report.

Figure 2 - South Cobar Project Technical Report Conceptual Flowsheet

Exploration Activities

May Day - Gold, Silver, Zinc, Lead, Copper; Western NSW (PEX 100%)

The maiden Inferred Mineral Resource Estimate (MRE) for the May Day deposit was updated during the quarter in accordance with the JORC Code (2012 Edition) using a 0.65g/t AuEq cu off grade. The maiden MRE is based on historic drilling data from 169 open-hole percussion holes, 62 RC holes and 21 diamond holes for a combined 12,676m. The grade estimates include only RC and diamond drilling data. No results from Peel's recently completed drill programme were included in the estimate dataset. Full details of the resource can be found in the announcement released 16 December 2020 – "May Day Inferred Mineral Resource Estimate". Table 1 presents the estimates by oxidation zone.

Oxidation	Tonnes		Metal Grades				Contained Metal
Zone	Kt	AuEqg/t	Aug/t	Agg/t	Zn%	Pb%	Cu%	AuEqKoz	AuKoz	AgKoz	ZnKt	PbKt	CuKt
Oxide	206	1.3	1.3	13	-	-	-	8.6	8.6	8.6	-	-	-
Fresh	924	1.9	1.3	20	0.90	0.61	0.11	56.4	38.6	594	8.32	5.64	1.02
Total	1,130	1.8	1.3	19	0.74	0.50	0.09	65.1	47.2	680	8.32	5.64	1.02

The figures in this table are rounded to reflect the precision of the estimates and include rounding errors.

The MRE for the May Day deposit of 1.13 Mt at 1.3 g/t Au, 19 g/t Ag, 0.74% Zn, 0.50% Pb, 0.09% Cu (1.8 g/t AuEq); containing:

• 47,200 oz gold
• 680,000 oz silver
• 8,320 t zinc
• 5,640 t lead
• 1,020 t copper
• (65,100 oz gold equivalent)

May Day mineralisation is shear-hosted/related with primary sulphides comprising pyrite-sphaleritegalena-chalcopyrite. Assays received to date show strong, continuous, and wide gold-polymetallic intercepts, confirming substantial true width (~25m) at relatively shallow depths. A high-grade core proximal to the hanging wall is evident with an approximate true thickness of up to ~12m. Recent results compliment previously received assays which also confirmed good down-dip continuity (minimum 180m down dip continuity from the base of the pit) of the May Day mineral system.

During the quarter, 10 diamond holes and 19 reverse circulation (RC) holes were drilled at the May Day deposit with the drill programme concluding in late November with a total of 14 diamond holes, for a total of 1,631m, and 45 RC holes, for a total of 8,984m. At time of writing, finalised assay results have been returned for 30 holes, while results have been partially received or still pending for 28 holes. One hole has been used for metallurgical testing purposes.

Highlights from RC assays returned and released to the market during the quarter include:

• 19.8m @ 1.65g/t Au, 20g/t Ag, 1.01% Zn, 0.49% Pb, 0.11% Cu from 24.2m within 35m @ 1.08g/t Au, 13g/t Ag, 1.29% Zn, 0.39% Pb, 0.08% Cu from 19m in MDDD007
• 19.4m @ 2.10g/t Au, 30g/t Ag, 0.98% Zn, 0.47% Pb, 0.13% Cu from 31.6m within 34m @ 1.45g/t Au, 21g/t Ag, 0.85% Zn, 0.4% Pb, 0.1% Cu from 25m in MDDD009
• 8m @ 2.88g/t Au, 43g/t Ag, 1.10% Zn, 0.65% Pb, 0.13% Cu from 106m within 27m @ 1.03g/t Au, 25g/t Ag, 1.15% Zn, 0.77% Pb, 0.13% Cu from 106m in MDRC012
• 32m @ 1.37g/t Au, 73g/t Ag, 4.51% Zn, 2.62% Pb, 0.53% Cu from 84m within 46m @ 0.98g/t Au, 53g/t Ag, 3.43% Zn, 1.97% Pb, 0.38% Cu from 84m in MDRC017
• 18m @ 1.66g/t Au, 30g/t Ag, 0.73% Zn, 0.45% Pb, 0.17% Cu from 188m within 33m @ 1.09g/t Au, 18g/t Ag, 0.46% Zn, 0.27% Pb, 0.1% Cu from 180m in MDRC026
• 6m @ 2.41g/t Au, 68g/t Ag, 1.7% Zn, 1.5% Pb, 0.38% Cu from 211m within 26m @ 1.05g/t Au, 24g/t Ag, 0.57% Zn, 0.47% Pb, 0.12% Cu from 191m in MDRC027
• 29m @ 1.71g/t Au, 33g/t Ag, 0.88% Zn, 0.66% Pb, 0.14% Cu from 84m within 54m @ 1.18g/t Au, 29g/t Ag, 0.85% Zn, 0.58% Pb, 0.11% Cu from 72m in MDRC028
• 8m @ 1.22g/t Au, 23 g/t Ag, 0.38% Zn, 0.20% Pb, 0.05% Cu from 102m and 6m @ 1.78g/t Au, 8 g/t Ag, 0.07% Zn, 0.05% Pb, 0.01% Cu from 133m in MDRC036
• 6m @ 3.32g/t Au, 99g/t Ag, 1.43% Zn, 1.96% Pb, 0.6% Cu from 132m in MDRC041
• 20m @ 2.24g/t Au, 32g/t Ag, 0.97% Zn, 0.37% Pb, 0.10% Cu from 74m within 45m @ 1.27g/t Au, 25g/t Ag, 0.99% Zn, 0.48% Pb, 0.09% Cu from 74m in MDRC043
• 10m @ 1.9g/t Au, 35g/t Ag, 1.11% Zn, 0.78% Pb, 0.18% Cu from 127m within 25m @ 1.04g/t Au, 23g/t Ag, 0.63% Zn, 0.44% Pb, 0.1% Cu from 117m in MDRC044
• 15m @ 1.79g/t Au, 26g/t Ag, 0.36% Zn, 0.25% Pb, 0.06% Cu from 287 within 57m @ 1.02g/t Au, 15g/t Ag, 0.22% Zn, 0.15% Pb, 0.04% Cu from 254m in MDRC052
• 18m @ 1.83g/t Au, 29g/t Ag, 0.52% Zn, 0.34% Pb, 0.10% Cu from 103m within 38m @ 1.26g/t Au, 25g/t Ag, 0.75% Zn, 0.52% Pb, 0.08% Cu from 102m in MDRC054

Significantly, strong mineralisation remains open down dip of the deepest drillholes on a number of sections, including MDDD002 and MDRC052, presenting a future exploration target.

Metallurgical testwork is currently underway with pit optimisation work to accompany Mineral Resource Estimation. It is envisaged that May Day has the potential to supply initial feed for a conceptual mill, as part of the Hub and Spoke development strategy, in the southern part of the Cobar Basin.

Next Steps

An update to the May Day Mineral Resource Estimate to predominately Indiciated classsification is anticipated in the March Quarter and the commencement of an internal concept study.

Figure 3 - May Day drilling cross section, including historic pit.

Figure 4 - May Day drill plan

Mallee Bull - Copper, Silver, Gold, Lead, Zinc; Western NSW (PEX 100%)

At Mallee Bull, the Company plans to undertake infill resource drilling in an effort to define a predominantly Indicated classified resource. An existing internal scoping study for Mallee Bull will then be updated to reflect its potential contribution to the conceptual Hub and Spoke development model. Currently, the Mallee Bull deposit has a JORC compliant Mineral Resource of 6.76 million tonnes at 1.8% copper, 31 g/t silver, 0.4 g/t gold, 0.6% lead and 0.6% zinc (2.6% copper equivalent) containing approximately 175,000t copper equivalent (using a 1% copper equivalent cut-off).

Next Steps

Peel has completed planning in preparation for resource infill/definition drilling which is anticipated to comprise ~15,000m diamond drilling designed primarily to establish Indicated Resource classification. This drilling is anticipated to commence during the current half year. Other activities that will be undertaken at Mallee Bull will include metallurgical testwork, geotechnical studies, underground mining studies, and resource modeling and estimation.

Southern Nights - Zinc, Lead, Silver, Copper, Gold; Western NSW (PEX 100%).

The Southern Nights deposit is located on the western edge of the Cobar Superbasin, ~130 km south of Cobar or ~30km northwest of Mount Hope and is host to the polymetallic VMS-type deposit. Mineralisation straddles a broad zone of intense tectonic brecciation and hydrothermal alteration (sericite-chlorite with local silicification) and occur as sub-vertical elongate shoots/lenses. Drilling by Peel

to date has focused on defining the geometry and extent of large-scale Zn-rich mineralisation at Southern Nights.

During the quarter assay results were returned for drillholes completed in the previous quarter at Southern Nights. The drillholes were designed to test for southerly extensions to the mineral system and to follow-up previously intersected gold-rich mineralisation seen in WTRCDD238. Five reverse circulation (RC) holes with diamond tails were completed (WTRCDD242-WTRCDD246) at the southern end of Southern Nights with assay results returned for WTRCDD243 and WTRCDD244.

Significant new massive sulphide Zn-Pb-Ag-Cu-Au mineralisation was returned with better assays including:

• 4.6m @ 12.48% Zn, 4.22% Pb, 58g/t Ag, 0.36% Cu, 0.25g/t Au from 273.45m in WTRCDD243
• 8m @ 6.30% Zn, 2.74% Pb, 63 g/t Ag, 0.93% Cu, 0.27 g/t Au from 276m in WTRCDD244

The massive sulphide mineralisation returned in WTRCDD244 occurs ~35m south of the resource model and remains open to the southwest; follow-up drilling is planned to continue to grow this major mineral system.

Assays remain pending for drillholes WTRCDD242, 245 and 246 all of which intercepted disseminated to stringer/semi-massive sulphides (pyrite dominant). Elsewhere at Southern Nights, four diamond tail extensions were made to previously completed RC pre-collars, with assays pending at the time of reporting.

Next Steps

Planning for infill and extensional drilling at Southern Nights has been completed. Detailed metallurgical testwork focused on improved metal selectivity and recoveries, as well as ore sorting with trials remain ongoing at the time of reporting.

Wagga Tank - Zinc, Lead, Silver, Copper, Gold; Western NSW (PEX 100%).

The Wagga Tank deposit is located on the western edge of the Cobar Superbasin, ~130 km south of Cobar or ~30km northwest of Mount Hope situated 800m north of Southern Nights and is host to the polymetallic VMS-type deposit. Mineralisation straddles a broad zone of intense tectonic brecciation and hydrothermal alteration (sericite-chlorite with local silicification) and occur as sub-vertical elongate shoots/lenses. Drilling by Peel to date has focused on defining the geometry and extent of the Zn-Pb-Ag-Au-Cu rich mineralisation at Wagga Tank.

Next Steps

Planning of resource definition drilling targeting a shallow oxide gold target at Wagga Tank has commenced and is subject to regulatory approvals and access negotiations. Metallurgical testwork will continue in the coming quarter, as part of a scoping study on this project.

Wirlong - Copper, Silver; Western NSW (PEX 100%).

Wirlong is located ~75km south of Cobar or about 40km north of May Day. Wirlong represents a classic Cobar-style Cu-Ag deposit analogous to the CSA mine. The prospect is pre-resource, however internal modelling shows good potential to establish a copper-rich Maiden Mineral Resource Estimate. Strong copper mineralisation commences at ~60m below surface and has been defined to at least 600m below surface. The deposit remains open along strike and at depth.

During the quarter the Company commenced a resource definition drilling programme to establish a Maiden copper-dominant resource. The resource definition program consists of ~11,000m of drilling and is anticipated to be completed in the June quarter of 2021. Drilling at Wirlong has been designed to drill test the upper ~300m of the Wirlong Central zone where high-grade copper (chalcopyrite) mineralisation is believed to be structurally controlled on a NW-SE orientation.

A total of five drillholes were completed during the quarter (WLRC067-WLRC072) with early drilling encountering significant deviation in actual drillhole trace vesus design. Drillholes WLRC068, WLRC069 and WLRC071 have each intersected substantial copper mineralisation over downhole widths of approximately 10m, 15m and 25m respectively with assay results pending for all of the drillholes at the time of reporting. Significantly, the mineralisation is consistent with the position of an electromagnetic conductor plate, and also with a revised structural model, further supporting Peel's geophysical and geological modelling.

Next Steps

Drilling will continue during the quarter in order to establish a maiden resource at the deposit. Preliminary metallurgical testwork, as well as ore sorting trials are planned, along with, resource modelling and estimation and a scoping study.

Finance

At the end of the quarter the Company had AUD$ 5.16 million cash at bank.

Included in the Appendix 5B – Section 6 are amounts paid to the Directors of the Company during the September quarter totalling $146,136, comprising $133,455 of normal remuneration payments of Director and Managing Director fees and $12,681 of associated superannuation. Payments of $8,800 were made to Mr Simon Hadfield (Peel Mining's Chairman) for rental of office space and associated costs, along with $9,900 for conference expenses to a Company part owned by Mr Hadfield.

This announcement has been authorised by the Board of Directors of the Company.

For further information, please contact: Rob Tyson – Peel Mining, Managing Director +61 (0)420 234 020.

Competent Persons Statements and Mineral Resource Estimates

The information in this report that relates to Exploration Results is based on information compiled by Mr Rob Tyson, who is a fulltime employee of the company. Mr Tyson is a member of the Australasian Institute of Mining and Metallurgy. Mr Tyson has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as Competent Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) 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 information in the form and context in which it appears. Exploration results are based on standard industry practices, including sampling, assay methods, and appropriate quality assurance quality control (QAQC) measures.

Past Exploration results reported in this announcement have been previously prepared and disclosed by Peel Mining Ltd in accordance with JORC 2012. The Company confirms that it is not aware of any new information or data that materially affects the information included in these market announcements. The Company confirms that the form and content in which the Competent Person's findings are presented here have not been materially modified from the original market announcement. Refer to www.peelmining.com.au for details on past exploration results.

May Day

Oxidation	Tonnes			Metal Grades							Contained Metal
Zone	Kt	AuEqg/t	Aug/t	Agg/t	Zn%	Pb%	Cu%	AuEqKoz	AuKoz	AgKoz	ZnKt	PbKt	CuKt
Oxide	206	1.3	1.3	13	-	-	-	8.6	8.6	8.6	-	-	-
Fresh	924	1.9	1.3	20	0.90	0.61	0.11	56.4	38.6	594	8.32	5.64	1.02
Total	1,130	1.8	1.3	19	0.74	0.50	0.09	65.1	47.2	680	8.32	5.64	1.02

The information in this announcement that relates to Mineral Resource estimates is based on information compiled by Mr Jonathon Abbott, who is a Member of The Australian Institute of Geoscientists. Mr Abbott is a full time employee of MPR Geological Consultants Pty Ltd and 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 2012 edition of the "Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves". Mr Abbott consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Mallee Bull

ResourceClassification	Kt	CuEq %	Cu %	Ag g/t	Au g/t	Pb %	Zn %
Indicated	1,340	2.15	0.91	30	0.4	0.96	1.23
Inferred	5,420	2.7	2	31	0.4	0.5	0.4
Total Resource	6,760	2.6	1.8	31	0.4	0.6	0.6

The information referred to in this announcement in relation to the Mallee Bull Resource Estimate is based on information compiled by Mr Jonathon Abbott, a Competent Person who is a Member of the Australian Institute of Geoscientists. At the time of calculating the Resource Estimate Mr Abbott was a full-time employee of MPR Geological Consultants Pty Ltd and is an independent consultant to Peel Mining Ltd. Mr Abbott has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code of Reporting of Mineral Resources and Ore Reserves'. Mr Abbott consented to the release of the matters based on his information in the form and context in which it appears.

Wagga Tank – Southern Nights

Southern Nights Mineral Resource Estimate
ResourceClassification	Tonnes (Kt)	Zn(%)	Pb(%)	Ag(g/t)	Cu(%)	Au(g/t)
Indicated	2,540	5.90	2.30	88.9	0.19	0.33
Inferred	1,600	3.7	1.4	59	0.3	0.3
Total Resource	4,140	5.0	2.0	77	0.2	0.3
Wagga Tank Mineral Resource Estimate
ResourceClassification	Tonnes (Kt)	Zn(%)	Pb(%)	Ag(g/t)	Cu(%)	Au(g/t)
Indicated	410	4.67	2.52	64.3	0.50	0.53
Inferred	400	5.3	2.3	98	0.3	0.5
Total Resource	810	5.0	2.4	81	0.4	0.5
	Combined Southern Nights-Wagga Tank Mineral Resource Estimate
ResourceClassification	Tonnes(Kt)	Zn(%)	Pb(%)	Ag(g/t)	Cu(%)	Au(g/t)
Indicated	2,950	5.73	2.33	85.5	0.23	0.36
Inferred	2,000	4.0	1.6	67	0.3	0.3
Total Resource	4,950	5.0	2.0	78	0.3	0.4

The information in this report that relates to Exploration Results and sampling information is based on information compiled by Mr Jason McNamara who, at the time of reporting, was a fulltime employee of the company. Mr McNamara is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr McNamara has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as Competent Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr McNamara consents to the inclusion in this report of the matters based on information in the form and context in which it appears. Exploration results are based on standard industry practices, including sampling, assay methods, and appropriate quality assurance quality control (QAQC) measures.

The information in this announcement that relates to grade estimation and Mineral Resource estimates for Southern Nights-Wagga Tank is based on information compiled by Mr Jonathon Abbott, who is a Member of The Australian Institute of Geoscientists. Mr Abbott is a full time employee of MPR Geological Consultants Pty Ltd and 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 2012 edition of the "Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves". Mr Abbott consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

This release may include aspirational targets. These targets are based on management's expectations and beliefs concerning future events as of the time of the release of this document. Targets are necessarily subject to risks, uncertainties and other factors, some of which are outside the control of Peel Mining that could cause actual results to differ materially from such statements. Peel Mining makes no undertaking to subsequently update or revise the forward-looking statements made in this release to reflect events or circumstances after the date of this release.

Figure 5 - Southern Nights drill plan

Figure 6 - South Cobar Project Tenements and Prospects

Peel Mining Limited ACN 119 343 734 Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. E: info@peelmining.com.au www.peelmining.com.au ASX: PEX

Drill Holes drilled in the quarter ended of 31 December 2020

Hole ID	Easting	Northing	Azi	Dip	Final Depth (m)
MDDD001*	406716.9	6411856.7	166.28	-53.04	153.10
MDDD002*	406694.1	6411935.0	165.36	-63.37	327.90
MDDD003*	406709.1	6411876.9	166.43	-60.07	200.00
MDDD004	406802.0	6411812.0	166.00	-58.00	80.00
MDDD005	406777.0	6411817.0	166.00	-47.00	78.10
MDDD006	406750.0	6411815.0	166.00	-47.00	81.70
MDDD007	406725.0	6411814.0	165.70	-44.82	84.20
MDDD008	406725.0	6411813.0	167.06	-44.81	81.90
MDDD009	406700.0	6411812.0	166.00	-47.00	80.60
MDDD010	406676.0	6411809.0	166.00	-50.00	92.10
MDDD011	406652.0	6411803.0	166.00	-55.00	94.80
MDDD012	406815.0	6411863.0	166.00	-45.00	122.10
MDDD013	406618.0	6411827.0	166.00	-45.00	121.80
MDRCDD007*	406785.8	6411884.6	166.00	-60.00	234.80

May Day Diamond Drillhole Collars

*Drillholes completed in quarter ended 30 September 2020.

May Day RC Drillhole Collars

Hole ID	Easting	Northing	Azi	Dip	Final Depth (m)
MDRC012*	406738.90	6411862.10	164.99	-58.03	153.00
MDRC013*	406741.00	6411854.00	166.00	-53.00	162.00
MDRC014*	406732.00	6411893.00	166.00	-60.00	210.00
MDRC015*	406727.00	6411912.10	165.77	-60.19	228.00
MDRC016*	406724.00	6411922.00	164.60	-62.11	258.00
MDRC017*	406765.00	6411861.00	166.26	-53.19	150.00
MDRC018*	406764.00	6411870.00	165.96	-59.96	186.00
MDRC019*	406759.00	6411890.00	164.63	-60.07	192.00
MDRC020*	406748.90	6411928.00	166.36	-60.51	260.00
MDRC021*	406789.00	6411868.00	164.07	-49.85	150.00
MDRC022*	406691.00	6411846.00	166.00	-53.60	138.00
MDRC023*	406690.00	6411854.00	166.00	-56.00	150.00
MDRC024*	406683.00	6411882.10	166.00	-60.00	198.00
MDRC025*	406678.00	6411901.00	166.00	-60.00	246.00
MDRC026*	406673.00	6411920.00	165.40	-60.70	258.00
MDRC027*	406668.00	6411939.00	164.87	-60.01	300.00
MDRC028*	406666.00	6411844.00	165.90	-52.70	150.00
MDRC029*	406665.00	6411851.00	166.40	-59.80	180.00
MDRC030*	406662.00	6411866.10	166.99	-60.57	192.00
MDRC031*	406652.00	6411904.10	163.60	-61.80	270.00
MDRC032*	406641.00	6411844.10	166.70	-53.00	150.00
MDRC033*	406635.00	6411868.00	167.00	-60.40	214.00
MDRC034*	406630.90	6411888.00	164.90	-59.90	240.00

Peel Mining Limited ACN 119 343 734

Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. E: info@peelmining.com.au www.peelmining.com.au ASX: PEX

Hole ID	Easting	Northing	Azi	Dip	Final Depth (m)
MDRC035	406618.00	6411835.00	165.60	-53.50	142.00
MDRC036*	406787.90	6411874.00	163.76	-56.07	150.00
MDRC037*	406780.00	6411904.90	164.75	-60.29	210.00
MDRC038*	406774.90	6411925.00	166.75	-59.96	240.00
MDRC039	406816.00	6411866.00	164.40	-52.91	162.00
MDRC040	406813.00	6411877.90	166.05	-56.75	150.00
MDRC041	406808.90	6411891.90	165.09	-59.88	180.00
MDRC042	406804.90	6411911.90	166.34	-59.81	222.00
MDRC043	406716.00	6411850.00	166.82	-50.35	130.00
MDRC044	406712.00	6411867.00	166.98	-56.82	170.00
MDRC045	406699.00	6411916.00	166.53	-63.45	260.00
MDRC046	406616.00	6411843.00	166.40	-59.90	180.00
MDRC047	406611.00	6411863.10	166.80	-59.40	202.00
MDRC048	406600.00	6411804.00	165.70	-52.90	82.00
MDRC049	406597.00	6411815.00	166.60	-60.00	124.00
MDRC050	406589.90	6411843.10	166.40	-59.80	154.00
MDRC051	406717.10	6411951.00	167.33	-65.30	330.00
MDRC052	406743.00	6411949.00	166.00	-60.00	330.00
MDRC053	406770.00	6411944.00	165.13	-59.76	270.00
MDRC054	406666.00	6411848.00	166.00	-57.00	162.00
MDRC055	406663.00	6411959.00	166.39	-59.88	307.00
MDRC056	406783.00	6411894.00	167.06	-61.91	192.00

*Drillholes completed in quarter ended 30 September 2020.

Wirlong Collars

Hole ID	Easting	Northing	Azi	Dip	Final Depth (m)
WLRC067	418337	6447002	210.00	-54.00	144
WLRC068	418341	6447001	199.23	-59.82	268
WLRC069	418344	6447006	188.00	-70.64	310
WLRC070	418363	6446959	185.00	-60.00	173
WLRC071	418358	6447025	210.00	-60.00	352
WLRC072	418362	6446962	200.90	-51.00	252

Southern Nights Collars

Hole ID	Easting	Northing	Azi	Dip	Final Depth (m)
WTRCDD243*	378310	6385700	85.05	-60.30	372.7
WTRCDD244*	378310	6385670	85.00	-60.00	350.0

* Assay results returned in the current quarter ended 31 December 2020 for drillholes completed in the previous quarter ended 30 September 2020.

Peel Mining Limited Tenement Holdings

TENEMENT	PROJECT	LOCATION	OWNERSHIP	CHANGE IN QUARTER
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%
EL8114	Yara	Cobar, NSW	100%
EL8117	Illewong	Cobar, NSW	100%
EL8125	Hillview	Cobar, NSW	100%
EL8126	Norma Vale	Cobar, NSW	100%
EL8201	Mundoe North	Cobar, NSW	100%
EL8307	Sandy Creek	Cobar, NSW	100%
EL8314	Glenwood	Cobar, NSW	100%
EL8345	Pine Ridge	Cobar, NSW	100%
EL8534	Burthong	Cobar, NSW	100%
EL7461	Gilgunnia	Cobar, NSW	100%	50% ownership increase
ML1361	May Day	Cobar, NSW	100%	50% ownership increase
EL6695	Wagga Tank	Cobar, NSW	100%
EL7226	Wongawood	Cobar, NSW	100%
EL7484	Mt View	Cobar, NSW	100%
EL8414	Mt Walton	Cobar, NSW	100%
EL8447	Linera	Cobar, NSW	100%
EL8751	Nombinnie	Cobar, NSW	100%
EL6961	McGraw	Cobar, NSW	100%
EL7711	Ruby Silver	Armidale, NSW	100%
EL8326	Attunga	Attunga, NSW	100%
EL8450	Beanbah	Cobar, NSW	100%
EL8451	Michelago	Cooma, NSW	100%
EL8656	Marigold	Cobar, NSW	100%
EL8655	Brambah	Cobar, NSW	100%
EL8872	Gromit	Cobar, NSW	100%
EL8900	Florida	Cobar, NSW	100%
EL8721	Bilpa	Broken Hill, NSW	100%
EL8722	Cymbric Vale	Broken Hill, NSW	100%
EL8790	Comarto	Broken Hill, NSW	100%
EL8791	Devon	Broken Hill, NSW	100%
EL8877	Thunderdome	Broken Hill, NSW	100%
EL8909	Grassmere North	Broken Hill, NSW	100%
ELA6029	Thunderdome South	Broken Hill, NSW	Application

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity
Peel Mining Limited
ABNQuarter ended ("current quarter")
42 119 343 734	31 December 2020

Consolidated statement of cash flows		Current quarter$A'000	Year to date(6 months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)exploration & evaluation	-	-
	(b)development	-	-
	(c)production	-	-
	(d)staff costs	(157)	(288)
	(e)administration and corporate costs	(183)	(407)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	17	27
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	13	78
1.8	Other (provide details if material)	(2)	3
1.9	Net cash from / (used in) operatingactivities	(312)	(587)

2.		Cash flows from investing activities
2.1		Payments to acquire or for:
	(a)	entities	-	-
	(b)	tenements	-	-
	(c)	property, plant and equipment	(33)	(37)
	(d)	exploration & evaluation	(20,536)	(21,476)
	(e)	investments	-	-
	(f)	other non-current assets	-	-

Consolidated statement of cash flows		Current quarter$A'000	Year to date(6 months)$A'000
2.2	Proceeds from the disposal of:
	(a)entities	-	-
	(b)tenements	-	10
	(c)property, plant and equipment	-	-
	(d)investments	2,893	2,893
	(e)other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	(48)
2.6	Net cash from / (used in) investingactivities	(17,676)	(18,658)

3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities(excluding convertible debt securities)	-	17,143
3.2	Proceeds from issue of convertible debtsecurities	-	-
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of equitysecurities or convertible debt securities	(29)	(935)
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financingactivities	(29)	16,208

4.	Net increase / (decrease) in cash andcash equivalents for the period
4.1	Cash and cash equivalents at beginning ofperiod	23,179	8,199
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	(312)	(587)
4.3	Net cash from / (used in) investing activities(item 2.6 above)	(17,676)	(18,658)
4.4	Net cash from / (used in) financing activities(item 3.10 above)	(29)	16,208

Consolidated statement of cash flows		Current quarter$A'000	Year to date(6 months)$A'000
4.5	Effect of movement in exchange rates oncash held	-	-
4.6	Cash and cash equivalents at end ofperiod	5,162	5,162

5.	Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts	Current quarter$A'000	Previous quarter$A'000
5.1	Bank balances	5,162	8,199
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	5,162	8,199

6.	Payments to related partiesof the entityand theirassociates	Current quarter$A'000
6.1	Aggregate amount of payments to related parties and theirassociates included in item 1	165
6.2	Aggregate amount of payments to related parties and theirassociates included in item 2	-
	Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and anexplanation for, such payments.

7.	FinancingfacilitiesNote: the term "facility' includes all forms of financingarrangements available to the entity.Add notes as necessary for an understanding of thesources of finance available to the entity.	Total facilityamountat quarterend$A'000	Amount drawnatquarter end$A'000
7.1	Loan facilities	-	-
7.2	Credit standby arrangements	-	-
7.3	Other (please specify)	-	-
7.4	Total financing facilities	-	-
7.5	Unused financing facilities available at quarter end		-
7.6Include in the box below a description of each facility above, including the lender, interestrate, maturity date and whether it is secured or unsecured. If any additional financingfacilities have been entered into or are proposed to be entered into after quarter end,include a note providing details of those facilities as well.

8.	Estimated cash available for future operating activities	$A'000
8.1	Net cash from / (used in) operating activities (item 1.9)	(312)
8.2	(Payments for exploration & evaluation classified as investingactivities) (item 2.1(d))	(20,536)
8.3	Total relevant outgoings (item 8.1 + item 8.2)	(20,848)
8.4	Cash and cash equivalents at quarter end (item 4.6)	5,162
8.5	Unused finance facilities available at quarter end (item 7.5)	-
8.6	Total available funding (item 8.4 + item 8.5)	5,162
Estimated quarters of funding available (item 8.6 divided by8.7item 8.3)		0.25
	Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as "N/A".Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.
8.8	If item 8.7 is less than 2 quarters, please provide answers to the following questions:
	8.8.1Does the entity expect that it will continue to have the current level of net operatingcash flows for the time being and, if not, why not?
	Answer: No, during the quarter the company settled the purchase of 50% of the Mallee BullJoint Venture for AUD$17 million and settled the purchase of the 1.5% Net SmelterReturn (NSR) royalty over tenement EL8307 with Weddarla Pty Ltd, by payingAUD$1.2 million. Both of these payments were extraordinary in nature.
	8.8.2Has the entity taken any steps, or does it propose to take any steps, to raise furthercash to fund its operations and, if so, what are those steps and how likely does itbelieve that they will be successful?
	Answer: The company has sufficient cash reserves to continue with its current activities,however, the Company acknowledges that additional capital will be required withinthe next 12 months to meet the Company's goals.

8.8.3	Does the entity expect to be able to continue its operations and to meet its businessobjectives and, if so, on what basis?
	Answer: Yes, the company expects it will be able to continue with its operations and meet itsbusiness objectives as planned.
	Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
• 2 This statement gives a true and fair view of the matters disclosed.

Date: 29/01/2021

Authorised by: The Board of Directors (Name of body or officer authorising release – see note 4)

Notes

• 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
• 1. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
• 1. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
• 1. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee – eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
• 1. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.