PEEL MINING LIMITED — Investor Presentation 2018

Jan 28, 2018

29 January 2018

To: Peel Mining Limited Shareholders Subject: Saturn Metals Limited; Initial Public Offering Investor Presentation

Dear Shareholder,

If you are a Peel Mining Limited (ASX:PEX) (Peel) Shareholder who held your shares at 10 January 2018, you are invited to participate as a priority applicant in Peel's initial public offering of Saturn Metals Limited (Saturn). In accordance with its announcement on 8 September 2017, and the approval of Peel shareholders obtained at the Company's general meeting held on 10 October 2017, Peel has disposed of its 100% interest in the Apollo Hill Gold Project in Western Australia (Apollo Hill Project) to its wholly owned subsidiary, Saturn.

Saturn is in the process of listing on the Australian Securities Exchange (ASX) by way of an initial public offering, and has issued a prospectus dated 10 January 2018 (Prospectus) to raise up to $7,000,000 (before costs) (Offer). Funds raised under the Offer will be used to progress Saturn's exploration activities at the Apollo Hill Project. The Prospectus can be found on Saturn's website: www.saturnmetals.com.au.

In this regard, Peel is pleased to make available the Saturn Metals IPO Investor Presentation. This presentation draws solely on information from the Prospectus and should be read in conjunction with the Prospectus. Subsequent to this release, the presentation can also be found on Saturn's website: www.saturnmetals.com.au.

Eligible Peel shareholders are encouraged to review these materials and in order to participate in the Priority Offer, they can apply at the offer website via www.saturnmetals.com.au, using their Holder Identification Number (HIN) or Security Holder Reference Number (SRN). The Priority Offer closing date is 5 February 2018.

Should you have any questions regarding Saturn, or the offer of Shares under the Priority Offer, you may contact either Saturn or the Lead Manager to the Offer, Patersons Securities Limited, using the contact details below. Alternatively, more information can be found on Saturn's website at www.saturnmetals.com.au and in the Prospectus.

Yours Sincerely

Rob Tyson Managing Director Peel Mining Limited

Contact details in relation to the Offer:

• Saturn Metals Limited Managing Director: Ian Bamborough or Company Secretary: Ryan Woodhouse Telephone: +61 8 9382 3955
• Patersons Securities Limited Telephone: 1300 582 256

This letter is not intended to be an offer for subscription, invitation, recommendation or sale with respect to any shares in any jurisdiction. The proposed offering of Shares by Saturn is made under the Prospectus prepared in accordance with the Corporations Act 2001 (Cth) and lodged with the Australian Securities and Investments Commission on 10 January 2018.

You should carefully consider the Prospectus before deciding whether to acquire Shares in Saturn. Any person wishing to subscribe for Shares in Saturn will need to complete an application form (for either the Priority Offer or the general offer to the public) that will be in or will accompany the Prospectus.

Recipients of this letter should make their own independent assessment of the information contained in the Prospectus and/or seek their own independent professional advice in relation to the Prospectus and/or any action taken on the basis of this letter or the Prospectus.

Spin-Out and IPO

A new Australian gold explorer in a multi million ounce gold province ASX:STN

Ian Bamborough Managing Director January 2018

www.saturnmetals.com.au

Investment Highlights

• Saturn Metals Limited ("Saturn Metals" or the "Company") is a spin-out of Peel Mining Limited's (ASX:PEX) 100% owned Apollo Hill Gold Project ("Apollo Hill") located in Western Australia.
• Premium land position in a multi million ounce gold province Apollo Hill is located 50km south-east of Leonora in Western Australia within close proximity to existing mine infrastructure.
• 12012 JORC compliant inferred resource of 17.2Mt at 0.9g/t for 505,000 ounces of gold using a 0.5g/t cut-off to a maximum depth of 180m*. Potential exists to materially upgrade the resource in the near and medium terms with planned exploration.
• Saturn Metals is seeking to raise a minimum of $4.5 million (and up to $7 million) of new equity capital at 20c per share pursuant to the IPO.
• Compelling pre-money valuation of $4.0m with a market capitalisation of $8.5m-$11.0m at listing.
• Clear strategy to add shareholder value via a 3 pronged approach to:
  • grow existing Apollo Hill resources base by targeting along strike potential; hits along strike from the Resource including 5m @ 25.9 g/t Au 1
  • aim to increase average grade of existing resource base through the targeting of newly identified high grade plunging shoots; intersections including 5.3m @ 10.3g/t Au 1
  • test regional targets including Bobs Bore (intersections including 9m @ 10.9g/t Au) and Yerilla (intersections including 17m @ 6.04g/t Au) 1

Experienced Board

IAN BAMBOROUGH (BSc (Hons), MSc, MBA, MAIG, GAICD)

Managing Director

Mr Bamborough is a geologist with 20 years leadership experience in the mining industry. Mr Bamborough developed his career with Newmont Mining Corporation and was more recently managing director of ASX listed Spectrum Rare Earths Limited. Mr Bamborough has previously served as a director on the Northern Territory Mining Board, and currently holds directorships with private exploration and mining companies Roman Road Pty Ltd and Reef Mining Pty Ltd.

ROBERT TYSON (B App Sc, GDipAppFin, MAusIMM) Executive Chairman

Mr Tyson is a geologist with more than 20 years resources industry experience having worked in exploration and mining-related roles for companies including Cyprus Exploration Pty Ltd, Queensland Metals Corporation NL, Murchison Zinc Pty Ltd, Normandy Mining Ltd and Equigold NL. Mr Tyson is the managing director of Peel Mining Limited, a role he has held for 11 years since the Company's inception.

ANDREW VENN (BBus, GDipAppFin, FFin) Non-Executive Director

Mr Venn has over 20 years mining industry experience and currently holds a senior executive position for a major mining contractor. Mr Venn has previously held senior positions across financing and operations for Argonaut Limited, Orica Mining Services and ICI Explosives and is a Fellow of the Financial Services Institute of Australia.

RYAN WOODHOUSE Company Secretary

Mr Woodhouse has 10 years of experience in the mining and energy industries in the area of accounting and governance. He holds a Bachelor of Commerce from Curtin University and is a member of the Institute of Chartered Accountants

Apollo Hill Gold Project

• Excellent location 50km south-east of Leonora in Western Australia in world class multi million ounce gold province close to existing gold infrastructure
• 100% ownership of more than 1,000km2 of contiguous ground
• Existing 2012 JORC compliant inferred resource of 17.2Mt at 0.9g/t for 505,000 ounces of high grade vein gold opportunities within resource area (refer to the Prospectus and IGR for full report and JORC Table 1)
• Underexplored large scale district gold play
• Key Gold Fertile Structures including the Keith Kilkenny Lineament
• Early production study opportunities with metallurgy suggesting a simple flow sheet (potential for dig, truck and toll)
• Underexplored ground due to a varied ground holding and commodity cycles

WA

Apollo Hill

A major gold system poised for rapid growth

• IPO funds will used to rapidly test for additional ounces and new higher grade ounces
• Expansive gold mineralised system at 40m-70m wide Drilling to Only 200m deep More than 1.2kms long
• The system remains open in all directions
• Favourable proportion of mineralised to non mineralised material in evident in this view

Apollo Hill – Resource Picture (0.5Moz)

• JORC (2012) compliant inferred resource of 17.2Mt at 0.9g/t for 505,000 ounces of gold using a 0.5g/t cut-off with a maximum depth of 180m1

Apollo Hill – Potential for Resource Upgrade

Potential for rapid growth

• Extensional drilling has yielded extremely exciting results:
  • 5m @ 26g/t Au 600m step out northerly strike extension
• Only shallow sparse historic RAB AC Drilling
• Further drilling through cover required
• RC drilling now required
• Potential for rapid growth

Apollo Hill - Potential for Resource Upgrade

Next steps:

• Infill/extensional drill programs
• Targeting a material resource upgrade to the current >505koz

Stacked, High-Grade Gold Lodes – A New Theory

Requires high priority drill testing

• Drilling could see upgrade to the grade profile with opportunities for narrower vein, high-grade gold
• A stacked system of gold bearing structures is interpreted to dissect the Apollo and Ra gold system from North to South
• 'Text book' geological structures known as 'Riedel' shears with plunging gold shoots evident
• Historical wide spaced drilling undertaken within the Apollo Hill deposit has not yet assessed this exciting new opportunity
• Focused infill drilling at optimum orientation is planned

Stacked, High-Grade Gold Lodes – A New Theory

Proof of concept could see an increase to the overall grade of the Mineral Inventory

Apollo Hill - Simple Metallurgy

Metallurgical test work has shown excellent gold extraction characteristics for easily recoverable gold

Conventional

• More than 60% recovery by gravity separation alone
• Greater than 92% gold recovery via conventional gravity/cyanidation combination (at only 300 µm grind)

Leaching

• In column leach tests (representative of Heap Leaching)
• Coarse grind size gold recovery was highly encouraging with high permeability and low agglomeration requirements

Grind Size	Au Recovery	Recoveryafter twoweeks
-8mm	77%	67%
-4mm	69%	54%

Apollo Hill

Early production study

• Higher-grade oxide/transitional open pit potential
• At a 1.2g/t Au cut -off, approximately 2.4Mt of material at 1.6g/t Au for 126Koz of gold is available within the 2012 JORC Inferred Resource estimate
• This material is localised in a limited numnber of distinct geographical areas within the top 50 -60m of both the Ra and Apollo Hill deposits
• This shallow higher -grade component could offer exciting potential for start -up options and nearer term production scenarios
• A favourable proportion of mineralised to non mineralised material is evident in this cross section
• Further modelling and studies are planned and required on this concept
• Studies will also consider truck and toll treatment options through existing mills in the district

Key Strategic Location

First class neighbours

• Central position in Eastern Goldfields
• Surrounded by gold majors and successful mid-tier gold producers
• Multiple regional targets in addition to the Apollo Hill resource area: Bobs Bore, Yerilla, 40G area
• Ground encompasses much of the gold fertile and highly prospective and sought after Keith Kilkenny Lineament

WA

Bobs Bore

Highly prospective regional targets

• Bobs Bore – 9m @ 10.9g/t Au near bottom of hole
• Located 3.5km NE of Apollo -Ra deposits on the Keith Kilkenny Structure
• Located directly on the gold prospective Keith Kilkenny Lineament
• Sparse Drilling – only one section of three AC/RC holes
• Under cover – no known effective drilling along strike
• Drilling open at depth

Yerilla Shear

Highly prospective regional targets

• 17m @ 6.04g/t Au from 86m; fence line RC intersection with only limited follow up work
• 5km Long Trend of Significant Intersections on the Yerilla Shear and folded rocks
• Historic production from the greater area over 17,700 oz
• Strong geophysical targets along strike of old workings

40G Trend

Highly prospective regional target

• ~4km Trend with limited historic drilling
• Peak gold values in rock chips include:
  • 42.9 g/t Au (over 1.3oz Au)
  • 10.9 g/t Au
  • and 7.39 g/t Au
• 40G RAB Intersection of 8m @ 0.9g/t Au from bottom of hole (mineralisation open to the south)
• Two percussion holes at Golden Emu:
  • 4m @ 3.38g/t Au
  • 4m @2.53g/t Au
• Historic production (Roscommon Old Emu 192 tonnes at 10.9g/t Au for 2.1Kg of gold)
• Mineralisation in granitoid bodies Geological parallels to Sunrise Dam

Capital Structure and Raising

• Saturn Metals is seeking to raise a minimum of A$4.5 million (and up to a maximum of A$7 million) through the issue of at least 22.5 million ordinary fully paid shares at an issue price of 20c per share (and up to a maximum of 35 million shares at an issue price of 20c per share).
• PEX shareholders will have the opportunity to participate in the IPO on a priority basis.
• The indicative capital structure of the Company based on the minimum subscription of A$4.5 million could be as follows:

	Shares	Options	PerformanceRights	AmountRaised	Market Cap	%Ownership
Existing Shareson Issue *	20,000,001	4,000,000	1,500,000	-	$4,000,000	47%
IPO OfferedShares (min)	22,500,000	-	-	$4,500,000	$4,500,000	53%
TOTAL	42,500,001	4,000,000	1,500,000	$4,500,000	$8,500,000	100%

*Please see the Saturn Metals Limited Prospectus for ownership details.

Planned Exploration Schedule 2018

• Targeting ~20,000m of drilling
• Multiple drilling phases scheduled results flow
• Clear strategy to add shareholder value 3 pronged approach will aim to:
  • grow existing Apollo Hill resources base by targeting along strike potential; hits along strike from the Resource including 5m @ 25.9 g/t Au1
  • increase average grade of existing resource base through the targeting of newly identified high grade plunging shoots; intersections including 5.3m @ 10.3g/t Au1
  • test regional targets including Bobs Bore (intersections including 9m @ 10.9g/t Au1 ) and Yerilla (intersections including 17m @ 6.4g/t Au1 )

Planned ExplorationActivity	Jan		Feb	Mar	Apr	May	June	July	Aug	Sept	Oct	Nov	Dec	Physicals
Airborne Magnetics														~600km2
Ground Gravity														~200km2
Apollo & Ra RC Resource Drilling				P										~4,000m
Apollo & Ra Extensional Drilling		Gene	Priori	redic										~2,500m
Apollo Plunging Shoot Drilling(RC DDH)		ralOffe	tyOffe	tedList										~2,500m
Regional Aircore Drilling		r Ope	r Opens	ingDat										~9,000m
Regional RC Drilling		ns		e										~1,800m

18 1 Results and Resource reported in the Independent Geologist's Report (IGR) (along with JORC Table 1), in the Company's Prospectus, and shown in fuller context earlier in this presentation.

Use of IPO Funds

Allocation of funds	$4.5m	$7m
Mineral Exploration	2,692,500	4,433,500
Expenses of the IPO	562,000	712,000
Administration costs	950,000	1,050,000
Working capital	295,500	804,500
Total Proceeds	4,500,000	7,000,000

Indicative Timetable

Event	2018
Lodgment of Prospectus with ASIC & ASX	10 January
Exposure Period begins	10 January
PriorityOffer Record Date	9 January
Opening Date (Priority Offer)	18 January
Closing Date (Priority Offer)	5 February
Opening Date (Public Offer)	6 February
Closing Date (Public Offer)	23 February
Dispatch of Holding Statements	2 March
Expected date for Shares to commence trading on the ASX	15 March

ASX Peer Comparison

Company	ASX Code	Market Cap	EV	EV/Resources
Gold Road Resources	GOR	$600m	$345.7m	$102.28/oz
Echo Resources	EAR	$153m	$152.9m	$88.9/oz
Capricorn Metals	CMM	$60m	$54.2m	$111.83/oz
Saturn Metals	STN	$8.5m	$4m	$8/oz

Source: Bloomberg, ASX Announcements

Disclaimer

The Company has prepared this presentation. Whilst the information contained in this presentation has been prepared with all reasonable care from information provided by the Company and from sources, which the Company believes are reliable, no responsibility or liability is accepted by the Company for any errors or omissions or misstatements, however caused.

To the maximum extent permitted by law, the Company, its directors officers, employees and agents disclaim liability for any loss or damage which may be suffered by any person thought the use or reliance on anything contained in or omitted in this presentation. Certain information in this presentation refers to the intentions of the Company, but these are not intended to be forecasts, forward looking statements or statements about future matters for the purposes of the Corporations Act or any other applicable law.

The occurrence of events in the future are subject to risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to differ from those referred to in this presentation. Accordingly, the Company, its directors officers, employees and agents do not give any assurance or guarantee that the occurrence of the events referred to in this presentation will actually occur as contemplated.

The Company recommends investors obtain their own independent financial and accounting advice before making any financial investment in reliance upon information contained in this publication.

Competent Person The information in this report that relates to exploration targets and exploration results is based on information compiled by Ian Bamborough, a Competent Person who is a Member of The Australian Institute of Geoscientists. Ian Bamborough is a fulltime employee and Director of the Company, in addition to being a potential shareholder in the Company. Ian Bamborough 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 for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Ian Bamborough consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.