PEEL MINING LIMITED - Investor Presentation 2013

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Peel Mining Limited (ASX:PEX) Diggers and Dealers – August 2013

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High-grade Copper in the Cobar Superbasin Rob Tyson, Managing Director Investor Presentation

(Image: DDH1 Rig 17)

www.peelmining.com.au

Disclaimer & Competent Persons Statement

• 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 Mining 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 .
The information in this report that relates to mineral resource estimation for Apollo Hill is based on work completed by Mr Jonathon Abbott who is a full time employee of Hellman and Schofield Pty Ltd and a member of the Australasian Institute of Mining and Metallurgy. Hellman & Schofield was not required to review the quality or validity of the sampling data, as Peel Mining are accepting responsibility for these aspects of the estimates. Mr Abbott 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 Abbott consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this report relating to the Attunga resources is based on information compiled by Mr Murray Hutton, who is a Member of the Australian Instituteof Geoscientists and is employed by Geos Mining. He has sufficient relevant experience to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for Reporting of Mineral Resources and Ore Reserves.’ Mr Hutton consents to the inclusion in this report of this information in the form and context in which it appears.

Capital and Corporate

• Capital structure

Fully paid shares: 132 million Cash: ~$6.3 million (+ $3.3m via farm-in) Options: 3 million Top 20 investors: ~58% Market cap (@ 42 cps): $55 million Directors’ holding: ~21%

• Business model

– Identify and acquire undervalued/prospective mineral assets

Add value through systematic exploration

– Monetise (through JV/sale/IPO) or take to production

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3 Year Chart
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Board and Technical Team

Small leadership team with blend of technical and commercial backgrounds; focus on maximising returns

• Board/Management

Maximising PEX’s discovery potential:
Rob Tyson (Managing Director)
Simon Hadfield (Chairman)
Graham Hardie (Non-exec Director)
Ryan Woodhouse (Co. Secretary)

• Technical team

Michael Oates (Chief Geologist)
Steve Leggett (Operations Manager)
David Vaarwerk (Database Geologist)
Angus Hornabrook (Consulting Geologist)
Low admin/corp costs at ~$200K per quarter
Small, efficient, skilled, technical/operations team
High exploration success rate
Focus on drill testing – only way to prove orebodies
Maximising every dollar – money goes into the ground
Nancy Vickery (Consulting Geologist)
Bob Brown (Consulting Geologist)

Project Summary

Growing base-precious metal resources company

• Key assets:

Mallee Bull Copper-Polymetallic Discovery
Cobar Superbasin Project (CSP)
Apollo Hill Gold Project
Rise & Shine Gold Project
Attunga Tungsten Project
Ruby Silver Project

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Historic production
400,000 oz Ag
17.2 Mt @ 0.9 g/t
Au for 505,000 oz
CSP
1.29 Mt @ 0.61% WO3
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Historic production 180,000 oz Au

Cobar Superbasin is high-grade worldclass mineral province

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•
Cobar Superbasin pre-mining metal
Tinderra granite
inventory:
• N
ELURA
–
>2.2 Mt Cu = US$18b
–
>7 Moz Au = US$12b
CSA
GREAT COBAR – >4.7 Mt Zn = US$9.5b
MT BOPPY
PEAK NEW OCCIDENTAL – >2.8 Mt Pb = US$5.5b
McKINNONS
PERSERVERANCE PIPELINE –
>145 Moz Ag = US$4.5b
Windnok NYMAGEE
WONAWINTA –
Shelf HERA Total = US$50b
SANDY CREEK
MALLEE BULL Ag
Thule granite MAY DAY Pb Ag AuAu
Canbelego
WAGGA TANK
- Mineral
Hill Rift
MT HOPE MINE MUNDOE Zone
Erimeran granite Zn
Zn
Cu
Cu
Cobar Basin Architecture
Courtesy Vlad David
Nymagee-Wagga Structure
Buckaroon Fault
Mt Hope TroughWalters Ranges Shelf
lt
Rast Trough
Rookery Fault
Fau
ra
nea
ment
nar
e Li
Gilmor
Coo
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Cobar Superbasin pre-mining metal inventory:

“Cobar–style” Deposits vs Mallee Bull Discovery

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Cobar-style attribute	Mallee Bull
Polymetallic (Cu-Ag-Au-Pb-Zn)	
Proximity to major structures (growth/transfer faults)	
Shear-hosted	
Strongly leached near surface	
Chlorite and silica alteration	
Facies and rock competency contrasts	
Moderate to high strain zone	
Short strike length (<200m)	
Narrow widths (5-20m)	
Vertical continuity (>400m)	
Clustered/stacked lenses	

Mallee Bull Project

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CBH Resources Farm-in

Attracting CBH is testament to Mallee Bull’s pedigree

• Key Terms of Farm-in

Agreement covers EL7461 and ML1361 including Mallee Bull
Peel remains operator
Stage 1 saw CBH earn 15% interest by payment of $1m to Peel as contribution to past expenditure (received July 2012) and by contributing $1.5m to exploration (complete)
Stage 2 saw CBH earn 30% interest by contributing a further $2.5m to exploration (complete June 2013)
Stage 3 sees CBH increase to 50% interest by contributing a further $3.33m to exploration within a further 12 month period
CBH may elect to form a joint venture at the end of any stage; parties can then elect to contribute on pro-rata basis or be diluted according to an industry-standard formula
No pre-emptive rights, rights to offtake, or casting votes

Coincident Magnetic and VTEM Anomalies – Dec 2010

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Butchers Dog
Mallee Bull Mallee Bull
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Total Magnetic Intensity
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VTEM – Late Time

Mallee Bull Discovery

Perseverance and methodical exploration lead to discovery

• Location and tenure

80 km[2] of granted leases (EL and ML)
100 km south of Cobar, NSW
Good infrastructure, 3 km off major road, 15 km from Moomba-Sydney Gas Pipeline

• Geology and Mineralisation

Located in Silurian-Devonian Cobar Superbasin
Cobar-style polymetallic (Cu-Au-Ag-Pb-Zn) mineralisation

• Mallee Bull Cu-Ag-Au-Pb-Zn-Co Discovery

8 km east of May Day Au-Ag-Pb-Zn-Cu deposit; adjacent to historic 4-Mile goldfield
Coincident EM and magnetic geophysical anomalies
Favourable geological position in volcaniclastic turbidite sequence age equivalent of Great Cobar geology
Favourable structural position located on “nose” of anticline; high strain environment
Perseverance required; four rounds of drilling necessary
High-grade massive and stringer sulphides intercepted in July/August 2011

Mallee Bull Phase 1

Phase 1 drilling confirms Mallee Bull as a Cobar-style discovery

– Phase 1 RC/diamond drill programme testing to 300m below surface from discovery – Feb 2012

Better drill results include:

10m @ 9.01% Pb, 11.00% Zn, 41 g/t Ag, 0.77 g/t Au

9.3m @ 1.20% Cu, 19 g/t Ag, 0.14 g/t Au

5m @ 2.40% Cu, 28 g/t Ag, 0.60 g/t Au

7m @ 1.31% Cu, 19 g/t Ag, 0.56 g/t Au

11m @ 2.71% Cu, 36 g/t Ag, 0.26 g/t Au

5m @ 2.14% Cu, 41 g/t Ag, 1.29 g/t Au

6.65m @ 3.10% Cu, 34 g/t Ag, 0.93 g/t Au

10m @ 1.70% Cu, 46 g/t Ag, 0.27 g/t Au

7m @ 2.32% Cu, 14 g/t Ag, 0.15 g/t Au

6m @ 2.01% Cu, 64 g/t Ag, 0.43 g/t Au

10m @ 2.66% Cu, 41 g/t Ag, 0.51 g/t Au 10m @ 2.22% Cu, 33 g/t Ag, 0.44 g/t Au

Cobar-style discovery confirmed
Mineralisation open in multiple directions, including down-dip

– 12-month option to purchase part of Wirchilleba Station covering Mallee Bull footprint

Mallee Bull Phase 2

Phase 2 drilling confirms Mallee Bull as major copper discovery

Phase 2 diamond drill programme (Stage 1 CBH Farm-in Agreement) testing >400m below surface from Jul 2012 – Nov 2012
Better drill results include:

41m @ 1.71% Cu, 33 g/t Ag, 1.84 g/t Au

10m @ 1.12% Cu, 47 g/t Ag, 0.95 g/t Au

14m @ 1.92% Cu, 56 g/t Ag, 0.30 g/t Au

42m @ 1.01% Cu, 23 g/t Ag, 0.91 g/t Au

31m @ 1.61% Cu, 13 g/t Ag, 0.17 g/t Au

35m @ 0.65% Cu, 54 g/t Ag, 1.16 g/t Au, 3.42% Pb, 1.51% Zn

21m @ 1.48% Cu, 24 g/t Ag, 0.25 g/t Au

31m @ 2.65% Cu, 51 g/t Ag, 0.18 g/t Au 12m @ 1.58% Cu, 39 g/t Ag, 0.14 g/t Au

22m @ 3.62% Cu, 38 g/t Ag, 0.09 g/t Au

7m @ 1.09% Cu, 29 g/t Ag, 1.74 g/t Au 13m @ 1.91% Cu, 31 g/t Ag, 0.12 g/t Au 8m @ 1.23% Cu, 12 g/t Ag, 0.09 g/t Au

69m @ 3.48% Cu, 34 g/t Ag, 0.14 g/t Au

Strike of mineralisation = ~120m
Shallowest intercept = ~40m below surface
Deepest intercept = ~600m below surface
Mineralisation open in multiple directions, including down-dip/plunge

Mallee Bull Phase 3

Phase 3 drilling confirms Mallee Bull as high grade copper discovery

• Mallee Bull Phase 3

Stage 2 of farm-in (Phase 3) saw CBH fund $2.5m on further exploration for further 15% interest commenced early February 2013, completed June 2013
Exploration programme comprises multiple intercept deep directional diamond drilling returning further high-grade copper results to ~700m below surface including:

53m @ 4.08% Cu, 42 g/t Ag, 0.22 g/t Au 21m @ 2.22% Cu, 40 g/t Ag, 0.11 g/t Au 84m @ 4.42% Cu, 38 g/t Ag, 0.14 g/t Au 32m @ 3.62% Cu, 46 g/t Ag, 0.21 g/t Au 10m @ 4.54% Cu, 31 g/t Ag, 0.13 g/t Au

Purchase of part of Wirchilleba Station containing Mallee Bull
QEM Scan mineralogical study yields encouraging early warning results, confirming stringer copper dominated by medium-coarse grained chalcopyrite with good liberation characteristics

Mallee Bull Phase 4

Phase 4 to test for additional mineralisation, examine development options

• Mallee Bull Phase 4

Stage 3 of farm-in (Phase 4) sees CBH fund a further $3.33m on exploration for an additional 20% interest commenced July 2013
Exploration programme to initially target adding new mineralisation and to comprise:
High-powered DHEM (underway)
Directional diamond drilling targeting Butchers Dog and Mallee Bull
Alternative geophysical techniques MMR, Mise a la Mass, MT
RAB drilling of 4-Mile Goldfields
Metallurgical testwork including flotation trials
Development options concept work
Settlement of purchase of Wirchilleba Station

Mallee Bull Mineralisation (Cpy-Po Stringer Zone)

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12.30% Cu, 161 g/t Ag, 0.21 g/t Au
7.15% Cu, 41 g/t Ag, 0.10 g/t Au
22.40% Cu, 180 g/t Ag, 0.28 g/t Au
20.70% Cu, 175 g/t Ag, 0.11 g/t Au
8.26% Cu, 74 g/t Ag, 0.63 g/t Au
20.60% Cu, 143 g/t Ag, 0.54 g/t Au
12.45% Cu, 231 g/t Ag, 0.36 g/t Au
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Mallee Bull Deeps – high-grade, copper-polymetallic

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Cobar Project – June 2011

Cobar Project – June 2013

Cobar Superbasin Project (CSP) – 100% PEX

Large, highly prospective land package underwritten by Mallee Bull Farm-in

• 100%-owned and highly prospective

15 ELs and ELAs covering more than 3,062 km[2]
Largest exploration landholding in the South Cobar Superbasin
Leveraging off Mallee Bull discovery and exploration presence/infrastructure
Multiple walk-up targets including Sandy Creek, Mundoe, Bedooba, Tara, Gilgunnia South prospects
Largely underexplored/underdrilled
Preliminary tenure review completed December 2012
RC drilling at Mundoe completed 2012 – significant drill results returned over 600m strike
Major geochem (portable XRF) programme underway
Sandy Creek drill testing commencing this week

Sandy Creek: the next Mallee Bull?

• Sandy Creek key facts

20 km along strike and north of Mallee Bull
Stratigraphic equivalent to Mallee Bull
Strongly folded (high strain) structural environment
Coincident “bullseye” magnetic and strong electromagnetic anomalies (HeliTEM and DHEM)
Low resistivity, high chargeability IP anomaly
Historic drilling tested edges of DHEM conductor plate model only with SCDD02 (Pasminco) yielding encouraging results
1.4m at 12.7% Zn, 5.7% Pb, 45g/t Ag from 199.7m
3.0m at 2.0% Zn, 1.2% Pb from 426.0m
10.2m at 1.6% Cu, 7.4% Pb, 68g/t Ag from 521.8m (incl. 3.3m at 1.5% Cu, 18.0% Pb, 122g/t Ag from 523.7m) – coincident with conductor plate model
Wirlong and Redshaft copper workings never drilled with oxide copper at surface

Investment Highlights

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1
Cobar Basin = worldclass mineral province
2
Mallee Bull = high grade copper discovery
3
Strong partnership through CBH Resources Farm-in
4
Large strategic landholding with exciting prospects
5
Small team, high success rate, money goes into the ground
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Notes

1. Information regarding drilling/assaying data

2. Drilling was completed as HQ or NQ diamond core.

3. Sample recoveries were considered adequate for all samples.

4. Drillcore has been logged in detail based on lithology, mineralisation, and alteration.

5. Samples for analysis were collected by sawing core in half.

6. Samples were submitted as 1m or 4m composite half-core intervals.

7. Samples were analysed at ALS Chemex utilising methods: Au‐AA25 for Au (fire assay); ME‐ICP41, ME-ICP61 or ME MS61 for multi-element including Ag, Cu, Pb, Zn; Ag-OG46 for >100 g/t Ag; Cu-OG46 for >1% Cu; Pb-OG46 for >1% Pb; and Zn-OG46 for >1% Zn.

8. Drillhole collars were surveyed by DGPS (GDA94) and downhole gyroscopic surveys were run continuously.

* Copper Equivalent Calculation Explanation:

The copper equivalent (CuEq) calculation represents the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent copper percentage. These results are exploration results only and no allowance is made for recovery losses that may occur should mining eventually result, nor metallurgical flowsheet considerations. The copper equivalent calculation is intended as an indicative value only. No metallurgical testwork has been completed to date however it is the Company’s opinion that all the elements included in the copper equivalent calculation have a reasonable potential to be recovered.
Copper equivalent conversion factors and long‐term price assumptions used follow: Massive Sulphide Zone Copper Equivalent Formula (CuEq) = (Cu (ppm) x 0.0075 + Ag (ppm) x 0.96 + Au (ppm) x 50.00 + Co (ppm) x 0.025)/0.0075;
Stringer/Breccia Sulphide Zone Copper Equivalent Formula (CuEq) = (Cu (ppm) x 0.0075 + Ag (ppm) x 0.96 + Au (ppm) x 50.00)/0.0075;
Price Assumptions ‐ Cu (US$7,500/t), Ag (US$30/oz), Au (US$1,500/oz), Co (US$25,000/t).
Pb and Zn have not been used in copper equivalent calculation.

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Peel Mining Limited (ASX:PEX)