PEEL MINING LIMITED — Interim / Quarterly Report 2023

Jul 30, 2023

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ASX: PEX
JUNE 2023 QUARTERLY REPORT 31 [st] JULY 2023
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HIGHLIGHTS FOR JUNE QUARTER 2023

South Cobar Project

• Mallee Bull exploration decline REF permitting awaiting regulatory approval.

• Wirlong and Southern Nights-Wagga Tank exploration decline REFs in progress.

• Pre-Feasibility work for South Cobar Project progressing with GR Engineering Services (GRES) commencing study work on a stand alone processing facility.

Exploration

• Cobar regional exploration targets continue to be progressed with ongoing fieldwork and soil sampling.

• Peel Far West tenements (near Broken Hill) review and target generation commenced.

Financial

• $12.05M cash at bank at the end of the quarter.

Peel Mining Limited CEO & Managing Director, Jim Simpson, commented:

“Peel has continued to progress its pre-development and pre-feasibility study work for its South Cobar Project with underground mine studies and mining schedules being completed in the quarter. GRES has commenced processing study work on a stand alone processing plant. The Exploration Decline REF at Mallee Bull is awaiting regulatory approval.”

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Wilkerboon Camp Site, South Cobar Project

Peel Mining Limited P: (08) 9382 3955 E: info@peelmining.com.au

ACN 119 343 734

PO Box 849, West Perth WA 6872 www.peelmining.com.au

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

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SOUTH COBAR PROJECT

Peel Mining’s South Cobar Project hosts a significant Mineral Resource containing 216kt copper, 322kt zinc, 22Moz silver, 151Kt Lead and 204 koz gold within an approximate 50km radius of Mallee Bull deposit.

Peel holds 3,400km[2] of exploration tenure within the Cobar Basin, one of the richest polymetallic regions in Australia.

The Cobar Basin is home to the CSA Copper mine, which recently sold to New York Stock Exchange listed Metals Acquisition Corporation Ltd, for total consideration of US$1.1B by its long time owners Glencore plc. The Company welcomes Metals Acquisition Corporation to the district and wishes them success for the future. Metals Acquisition Corporation holds the South Shuttleton deposit (EL6223) adjacent to Peel Mining’s Wirlong Project and on our 100% owned Shuttleton Pastoral Lease.

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Figure 1: Peel Mining Limited’s South Cobar Project

www.peelmining.com.au

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PRE-DEVELOPMENT ACTIVITIES

ENVIRONMENT AND PERMITTING

Review of Environmental Factors (REF) for Mallee Bull

The Review of Environmental Factors (REF) for the Mallee Bull exploration decline is awaiting approval from the NSW Resources Regulator and relevant government agencies. The submission of the REF is a regulatory requirement for the Resource Regulator to assess and determine the permissibility of the construction of an exploration decline at Mallee Bull under Part 5 of the Environmental Planning and Assessment Act 1979 .

During the quarter, the Resources Regulator requested further information regarding the REF. The company also presented to the Rehabilitation and Securities Panel (RASP) in early May 2023 as part of the determination process for the Mallee Bull REF. A draft Environmental Management Plan for the project was developed and submitted to the Resource Regulator as part of this process. .

The conceptual Exploration Decline (depicted in Figure 2) has been designed for the purposes of the Review of Environmental Factors (REF) submission to the NSW Resources Regulator.

Meetings have been held with the Credit Supply Taskforce to assess options available for Peel Mining regarding the application and retirement of biodiversity credits. Field surveys commenced during the quarter to assess potential land that could be utilized on Peel Mining’s property for the development of a Biodiversity Stewardship Site, which would allow for the creation of biodiversity credits. An Expression of Interest has also been submitted for cost estimates of biodiversity credits through the Credit Supply Taskforce.

Review of Environmental Factors (REF) for Wirlong & Southern Nights

Study work has commenced for the permitting processes associated with an REF for an exploration decline at Wirlong. Specialist consultants have commenced the required Biodiversity, Heritage, Water, Traffic, Noise and Air Quality studies for Wirlong. 90% of the field work for biodiversity and heritage has been completed including field work conducted by Registered Aboriginal Parties. The draft groundwater and traffic assessments were completed in the quarter. Seasonal surveys will be conducted for biodiversity in late September/early October 2023 to finalise the Biodiversity Development Assessment Report (BDAR).

Briefing letters on the Southern Nights/Wagga Tank Exploration Project were provided to relevant regulators in the quarter. Specialist consultants have been engaged to complete studies for the Southern Nights-Wagga Tank REF.

PRE-FEASIBILTY WORK

With the completion of the mine designs and schedules at Mallee Bull, Wirlong and Southern Nights, GR Engineering Services have commenced a study for a standalone processing facility, designed to fit with the Company’s copper first stategy. The study will provide preliminary plant design information, as well as capital and operating costs for the PFS.

www.peelmining.com.au

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Figure 2: Mallee Bull Conceptual Exploration Decline for the REF

www.peelmining.com.au

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EXPLORATION ACTIVITIES

REGIONAL EXPLORATION AND TARGET GENERATION

During the quarter, the Company continued regional exploration and target generation on its South Cobar tenure. Peel has approximately 3,200km[2] of highly prospective tenure (see figure 3). Desktop analysis, field mapping and reconnaissance, surface soil sampling, rock-chipping, and historic drillhole re-assaying were completed at identified priority prospects including May Day, Florida, Mundoe, Fenceline + The Bird, Double Peak, Sandy Creek, Nombinnie, Marigold and Bedooba and Iris Vale NE. The Company will progress exploration with a view to drill testing the highest priority targets in due course.

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Figure 3: South Cobar Tenure, Projects & Prospects.

www.peelmining.com.au

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PEEL FAR WEST – CURNAMONA PROJECT

Peel’s Curnamona licences EL8877 (Thunderdome), EL9108 (Thunderdome South), EL9586 (Thunderdome Central) & EL9535 (Coultra South), comprising 97 units (~300km[2] ) located ~50km to the northwest and southwest of Broken Hill in the Curnamona Province, are considered prospective for copper, gold, lead, zinc, silver, nickel and PGEs. The Curnamona Province contains widespread sulphide mineralisation typically occurring in a thick carbonate-rich horizon associated with a major redox boundary. Aeromagnetics clearly highlights the redox boundary and the relative position of the prospective mineralised horizon. This redox boundary is host to Havilah Resources Limited’s’ 1.1Mt Cu, 3.1 Moz Au Kalkaroo deposit. Peel’s Thunderdome (and possibly Thunderdome South) tenements are considered to host this horizon, with only limited exploration having been undertaken due to Quaternary/Tertiary cover associated with the Mundi Mundi Plains.

During the quarter Inspection of drillcore from several key prospects was undertaken and approval sought for sampling of historic core. The Company also applied for ground in South Australia under the South Australian Governments Exploration Release Area program. ERA1236 (824km[2] ) and ERA1240 (797km[2] ) are located across the South Australian border from the Curnamona Project and are considered prospective for Mutooroo-style copper-cobalt deposits. A decision on the outcome of the application is expected in the coming months.

The key prospects located within Peel’s Curnamona tenure comprise of:

BHT Trend (Woolshed/Polygonum, Ardetoo, Grid 2, Rathole North, Rathole)

The BHT Trend is considered prospective for Broken Hill Type and IOCG mineral systems and has five prospects (noted above) defining it over ~20km strike on the western margin of EL8877. The BHT Trend’s geological setting comprises the Broken Hill Group, host to the Broken Hill deposits, and the stratigraphically lower Thackaringa Group, host to copper-gold mineralisation such as the Kalkaroo deposits.

The Traverses/Black Gate/Dome 5

It is considered likely that the BHT Trend continues along the eastern flank of EL8877, and also within (as domal bodies) EL8877. Limited drilling has confirmed the potential for BHT and IOCG mineralisation at the associated The Traverses, Black Gate and Dome 5 prospects.

UB-1

The UB-1 anomaly is represented by an intense bullseye magnetic and gravity geophysical anomaly on the north-eastern edge of EL9108. The target is intrusive-related copper-nickel-platinoids associated with pyroxenite. Diamond drillhole DDUB-1, drilled by Broken Hill South in 1966, is the only drillhole to date to successfully target this anomaly, intercepting magnetite-rich pyroxenite at ~165m below surface, with highly anomalous copper/platinoids reported. More recent exploration has included 3D IP geophysics which defined a conductive feature ~400m north of DDUB-1 which is thought to be possibly related to increased sulphide mineralisation.

www.peelmining.com.au

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Figure 4: Curnamona Project

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CORPORATE

At the end of the quarter, the Company had $12.058 million cash at bank. Included in the Appendix 5B – Section 6 are amounts paid to the Directors of the Company during the June quarter totalling $243,602, comprising of remuneration payments to Directors and the Managing Director including superannuation.

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

For further information, please contact:

Jim Simpson – Peel Mining Limited – CEO & Managing Director: +61 (8) 9382 3955 Rob Tyson – Peel Mining Limited – Executive Director - Technical: +61 (0)420 234 020

www.peelmining.com.au

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COMPETENT PERSON STATEMENT

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 and Mineral Resource Estimates 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, and all material assumptions and technical parameters underpinning Mineral Resource Estimates in the relevant market announcement continue to apply and have not materially changed. Refer to www.peelmining.com.au for details on past exploration results and Mineral Resource Estimates.

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.

www.peelmining.com.au

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PEEL MINING LIMITED TENEMENT HOLDINGS

TENEMENT	PROJECT	LOCATION	OWNERSHIP	CHANGE INQUARTER
EL6695	Wagga Tank	Cobar,NSW	100%
EL6961	McGraw	Cobar,NSW	100%
EL7226	Wongawood	Cobar,NSW	100%
EL7461	Gilgunnia	Cobar,NSW	100%
EL7484	Mt View	Cobar,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%
EL8126	Norma Vale	Cobar,NSW	100%
EL8201	Mundoe North	Cobar,NSW	100%
EL8307	SandyCreek	Cobar,NSW	100%
EL8314	Glenwood	Cobar,NSW	100%
EL8326	Attunga	Attunga,NSW	100%
EL8345	Pine Ridge	Cobar,NSW	100%
EL8447	Linera	Cobar,NSW	100%
EL8450	Beanbah	Cobar,NSW	100%
EL8534	Burthong	Cobar,NSW	100%
EL8655	Brambah	Cobar,NSW	100%
EL8656	Marigold	Cobar,NSW	100%
EL8751	Nombinnie	Cobar,NSW	100%
EL8872	Gromit	Cobar,NSW	100%
EL9483	Brambah South	Cobar,NSW	100%
EL9539	Pangee Creek	Cobar,NSW	100%	100%
EL9284	Florida	Cobar,NSW	100%
EL9398	McGraw East	Cobar,NSW	100%
ML1361	MayDay	Cobar,NSW	100%
EL8877	Thunderdome	Broken Hill,NSW	100%
EL9108	Thunderdome South	Broken Hill,NSW	100%
EL9586	Thunderdome Central	Broken Hill,NSW	100%	100%
EL9535	Coultra South	Broken Hill,NSW	100%	100%
EL8414	Mt Walton	Cobar,NSW	13%
EL8451	Michelago	Cooma,NSW	13%

www.peelmining.com.au

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Rule 5.5

Appendix 5B

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

Name of entity Peel Mining Limited ABN Quarter ended (“current quarter”) 42 119 343 734 30 June 2023

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 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 (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- - - - (245) (321) - 124 - - - 14	- - - - (836) (1,130) - 436 - - 250 93
	(428)	(1,187)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (e) investments (f) other non-current assets	- - (5) (1,145) - -	- - (104) (10,145) - -

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

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

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (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) 2.6 Net cash from / (used in) investing activities	- - - - - - - 25	- - - 896 - - - 41
	(1,125)	(9,312)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - - - - - - - -	- - - - - - - - -
	-	-
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	13,611 (428) (1,125) -	22,557 (1,187) (9,312) -

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

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

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	-	-
	12,058	12,058
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	1,558 10,500 - -	1,573 12,038 - -
	12,058	13,611
6. Payments to related parties of the entity and their associates		Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 244 6.2 Aggregate amount of payments to related parties and their associates 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 an explanation for, such payments.		244
		-

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

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

7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities - - Credit standby arrangements - - Other (please specify) - - Total financing facilities - - Unused financing facilities available at quarter end - Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		-	-
		-	-
		-	-
		-	-
8.	Estimated cash available for future operating activities		$A’000
8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8	Net cash from / (used in) operating activities (item 1.9) (428) (Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) (1,145) Total relevant outgoings (item 8.1 + item 8.2) (1,573) Cash and cash equivalents at quarter end (item 4.6) 12,058 Unused finance facilities available at quarter end (item 7.5) - Total available funding (item 8.4 + item 8.5) 12,058 Estimated quarters of funding available (item 8.6 divided by item 8.3) 7.67 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. If item 8.7 is less than 2 quarters, please provide answers to the following questions: 8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?		(428) (1,145) (1,573) 12,058 -
			12,058
	Answer: N/a
	8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: N/a
	8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	Answer: N/a
	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.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

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

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:

31/07/2023

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.

2. 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.

3. 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.

4. 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”.

5. 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.

ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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