PEEL MINING LIMITED — Investor Presentation 2009

May 13, 2009

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STOP PRESS
12‐May‐2009
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Exploring forgotten mineral fields

RIU Sydney Resources Round‐up Sofitel Wentworth Sydney – May 13, 2009

ASX: PEX Managing Director – Rob Tyson

Disclaimer

The views expressed here other than historical fact constitute forward‐looking statements. Forward‐looking statements are based upon estimates and assumptions considered reasonable by the Company, albeit subject to uncertainties and contingencies of unknown factors that may cause variation in such forward‐looking statements beyond the Company’s ability to control or predict. Nothing in this release should be construed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

Competent Persons Statement

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 is Managing Director of Peel Exploration Ltd. 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

Peel Exploration Ltd (ASX: PEX)

Portfolio

• skarn‐style tungsten (scheelite) mineralisation

• skarn‐style precious/polymetallic metal mineralisation

• stockwork/sheeted vein style gold mineralisation

Highlights

• maiden resource for Attunga Tungsten Deposit and subsequent identification of metallurgical process route

• polymetallic skarn discovery at Attunga Copper Mine

• delineation of extensive gold mineralisation at Kensington

Strategy

• expand resources at Attunga Tungsten Deposit

• test new polymetallic targets at Attunga Copper Mine

• test area between Attunga Copper Mine and Attunga Tungsten Deposit

Capital & Corporate

Capital Structure

• Market Capitalisation (@ 17 cps)

$5.3 million

• Fully paid shares

30.9 million

• Options (various exercise prices)

30.5 million

• Top 20

approx 60%

PEX People

• Simon Hadfield – Chairman

• Craig McGown – Non‐executive Director

• Rob Tyson – Managing Director

• David Hocking – Company Secretary

• Michael Oates – Project Geologist

• Steve Leggett – Field and Tenements Manager

Tenements

Our assets – ~ 600 km[2]

• Attunga: tungsten‐gold‐copper‐moly

• Dungowan: copper‐zinc‐silver‐gold

• Barry: copper‐zinc‐silver‐gold

• Waverley: silver‐lead‐zinc

• Armidale: gold‐antimony‐silver‐lead‐zinc

• Mt Tennyson East: moly‐tungsten

• Yerranderie ELA: silver‐lead‐gold

PEX Appeal

Why PEX?

• Low‐cost, efficient company focused on economic success

• Attunga Tungsten Deposit amongst richest tungsten deposits in Australia

• Attunga Tungsten Deposit seen minimal modern exploration, open at depth

• Attunga Copper Mine discovery shows strong gold‐copper‐moly‐silver‐bismuth mineralisation next to Attunga Tungsten Deposit

• Wider Attunga Project offers additional prospectivity for gold, copper, moly & tungsten mineralisation

• Attunga Project located near excellent infrastructure & low‐cost, skilled labour

• Low MCap, tight share register

Attunga – a forgotten mineral field

Attunga Project Area

• 250km[2] ‐ granted Sep 2007

• Intrusive‐related gold system (IRGS) model

• Attunga Tungsten Deposit – amongst richest tungsten deposits in Australia

• Attunga Copper Mine – strong gold‐ copper‐moly mineralisation

• Kensington – extensive gold mineralisation

• Numerous other tungsten and gold prospects

• Minimal modern exploration

• Located 20 km North of Tamworth – excellent infrastructure and low‐cost skilled labour

Fig 2. Attunga Project Geology & Tenements

Attunga – a forgotten mineral field revisited

Attunga – an intrusion‐related gold system

Key geological points

• Classic IRGS model– IRGS can be large

• Lithologically and structurally complicated area

• Intersection of major structures (Peel Fault, Bendemeer Lineament, Glen Dhu splay fault, Splinter splay fault)

• Associated with geochemically suitable major intrusives (Inlet Monzonite, Moonbi Adamellite and the Attunga Creek Adamellite)

• Chemically reactive wallrock packages ‐ limestones, calc silicates , serpentinites and carbonaceous shales

• Wide variety of intrusion‐related mineralisation styles and widespread gold mineralisation

• New England Orogen proven host for IRGS (Tooloom and Timbarra)

• Minimal modern exploration

Fault‐hosted, sheeted and stockwork vein systems: Kensington Au‐W

Intrusion‐hosted systems: Attunga Mo‐ Au

Skarn‐hosted systems: Attunga Copper Mine and Attunga Tungsten Deposit

Hornfels‐hosted breccia and vein systems: Mount Patterson Au

Attunga – in an IRGS environment

Attunga IRGS

Attunga – an excellent location

Key non‐geological points

• 100% owned by Peel Exploration Ltd

• 400 km north of Sydney, 20 km north of Tamworth

• Proximal to excellent infrastructure (road, rail, power & water)

• Proximal to skilled local workforce (Tamworth population ~42,000)

• Predominantly freehold landholders

• No native title issues

• Immediate land access and drilling agreements in‐place

Attunga Tungsten Deposit

Peel’s activity

• 1969 – discovered, drilled (25 drillholes), idled

• Sep 2007 – EL6884 granted, resource modeling initiated

• Oct 2007 – resampling finds new high‐grade intercept: 2.44m @ 4.3% WO3 and 0.23% Mo

• Mar 2008 – resampling finds new high‐grade intercept: 12m @ 0.65% WO3 and 0.07% Mo

• Apr 2008 – independent JORC‐compliant inferred resource: results include 1.29 Mt @ 0.61% WO3 and 0.05% Mo

• Aug 2008 – Peel intercepts 42m @ 2.09% WO3 and 0.17% Mo from 21m (incl. 2m @ 24.21% WO3 and 1.71% Mo from 22m)

• Mar 2009 – initial met‐testwork completed with process flow sheet identified, high grade WO3 concentrates produced

• Sep 2007‐current – historic data collection, geos across 40 years contacted

Attunga Tungsten Deposit

Attunga Tungsten Deposit is high‐grade

Peer comparisons

Company	Project	Resource Mt	WO3 %	Contained WO3 equivalent
Paradigm Metals (PDM)	White Rock	0.26	0.70	2,015
King Island Scheelite (KIS)	King Island	13.40	0.64	85,760
Peel Exploration (PEX)	Attunga	1.26	0.61	9,379
Vital Metals (VML)	Watershed	15.10	0.46	69,300
Noah Resources (NOA)	Mount Paynter	0.25	0.45	1,433
Queensland Ores (QOL)	Wolfram Camp	0.95	0.41	5,660
Thor Mining (THR)	Molyhil	3.73	0.33	19,023
Heemskirk Consolidated (HSK)	Los Santos	5.24	0.25	13,002
Vital Metals (VML)	Mt Mulgine ‐ Hill	5.10	0.24	12,240
Wolf Minerals (WLF)	Hemerdon Ball	97.40	0.22	225,481
Vital Metals (VML)	Mt Mulgine ‐ Trench	84.00	0.19	159,180
Hazelwood Resources (HAZ)	Cookes Creek	8.97	0.17	15,530

Attunga Tungsten Deposit cross section

Attunga Tungsten Deposit met‐testwork

Key points

• NAGROM completed phase 1 met‐testwork

• Scheelite grain size predominantly +100 micron

• +75 to ‐125 micron grind sweetspot yielded 80% of WO3 to 16% of circuit mass via spirals

• +75 to ‐125 micron spiral cons upgraded via magnets to 47% WO3 grade cons with 79% recovery

• Flotation testwork on ‐75 micron tails/fines and spiral/magnetic cons yielded positive upgrade and recovery of WO3 (approx 2x grade @ 95% recovery per cycle)

• Moly predominantly occurs as powellite – leach work of fine ground cons shows potential for separation of WO3 and moly

Attunga Tungsten Deposit flowsheet

Tungsten market

A strategic metal:

• Tungsten’s primary demand is hard metals used in manufacturing/mining industry, also has military applications

• Global consumption ~90,000 tpa, doubled in decade

• China dominates market (up to 85%), operations increasingly mature, lower grade

• Western users subject to China’s stranglehold

• Many Western developments unlikely to start due to CapEx/technical issues

• May 2009: price remained relatively strong: ~US$19,000/t APT, ~US$13,500/t cons

• Potential future supply crunch

Attunga Copper Mine – polymetallic discovery

Another forgotten gem?

• 800m North of Attunga Tungsten Deposit – genetically‐related

• Polymetallic skarn – historic production of 1,600t @ 6% Cu, 8 g/t Au, 150 g/t Ag

• Accessory metals include moly, bismuth, +/‐ tungsten, rhenium

• Unexplored ‐ PEX first to drill

• ACM‐004 – 76m @ 1.0 g/t Au, 0.86% Cu, 0.09% Mo, 0.06% Bi and 22 g/t Ag incl. 27m @ 1.6 g/t Au, 1.66% Cu, 0.18% Mo, 39 g/t Ag, and 0.1% Bi

• Sub‐vertical mineralisation

• Mineralisation open

• Untested historic IP anomalies and unexplained EM anomaly

• Deeper source potential – mineralised granite/porphyry feeder?

Attunga Copper Mine/Tungsten Deposit geology

Attunga skarn model

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W‐Mo skarn
Cu‐Au skarn
Mineralised feeder
granite? (Au‐Cu)
Inlet Monzonite
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Kensington – extensive gold mineralisation

Stockwork/sheeted vein gold‐tungsten system

• 5 km north of Attunga Skarn Deposits

• 1971: percussion drilling program defines extensive, shallow tungsten mineralisation – substantial low‐grade tungsten resource subsequently reported

• 1987: ~800m diamond drilling program identifies widespread gold mineralisation, results include: 108m at 0.74 g/t Au (KEN‐6) and 13m at 1.1 g/t Au (KEN‐7)

• July 2008: ~1,200m RC drilling program confirms extensive gold mineralisation, every drillhole mineralised

• Mar 2009: 100m dipoles IP survey completed generating multiple chargeability anomalies, possible feeder structures identified

• May 2009: Drilling planned

Kensington – extensive gold mineralisation

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4m @ 0.87 g/t Au from 35m
8m @ 0.71 g/t Au from 90m 13m @ 1.07 g/t Au from 49m
3m @ 0.59 g/t Au from 74m
4m @ 0.87 g/t Au from 4m
49m @ 0.32 g/t Au from 94m
5m @ 1.58 g/t Au from 1m
21m @ 0.75 g/t Au from 57m
14m @ 0.75 g/t Au from 24m
22m @ 0.4 g/t Au from 43m 26m @ 0.45 g/t Au from 94m
2m @ 1.06 g/t Au from 43m
13m @ 1.07 g/t Au from 0m
109m @ 0.7 g/t Au from 8m
171m @ 0.32 g/t Au from 4m
19m @ 0.51 g/t Au from 0m
22m @ 0.37 g/t Au from 30m
45m @ 0.32 g/t Au from 61m
6m @ 0.6 g/t Au from 33m
65m @ 0.47 g/t Au from 26m 9m @ 1.4 g/t Au from 15m
5m @ 2.75 g/t Au from 60m
4m @ 1.79 g/t Au from 117m
2m @ 0.6 g/t Au from 9m
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Other Peel assets

Other Peel Exploration Project Areas

• Rationalisation underway – Attunga, early cashflow focus

• EL7272 – Mt Tennyson East contains historic moly‐tungsten prospects, indications that tungsten‐moly mineralisation is an extension to Moly Mines’ Mt Tennyson molybdenum deposit

• EL6613 – Dungowan contains numerous historic copper mines/workings with high‐ grade copper mineralisation at Fishers copper mine (2,643t of ore at 13.4% Cu)

• EL6614 – Barry centred on cluster of copper workings, exploration in 1971 highlighted copper values with no follow‐up ever completed

• EL6719 – Historic Waverley silver‐lead‐zinc workings with limited work by Peel returning anomalous silver, lead, zinc

• EL6722 – Armidale contains several historic silver mines plus gold, antimony, tungsten and molybdenum workings, minimal modern exploration

• ELA3647 – Yerranderie silver field, high grade tailings/dumps never retreated, possible low cost, cash flow

Programme Targets

12‐18 months

• measured/indicated resource at Attunga Tungsten Deposit

• scoping study Attunga Tungsten Deposit

• inferred resource at Attunga Copper Mine

• measured/indicated resource at Yerranderie

Work focus

• diamond/RC drilling: Attunga Tungsten Deposit, Attunga Copper Mine, Kensington,

• Geophysics: IP and EM at Attunga skarns

• Geological/structural mapping at Attunga skarns

• Auger sampling/met‐testwork at Yerranderie

Additional capital

• $2 million

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STOP PRESS
12‐May‐2009
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