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PEEL MINING LIMITED Share Issue/Capital Change 2008

Sep 1, 2008

65545_rns_2008-09-01_d8a7f51d-fffe-4886-a262-eb23e36c306b.pdf

Share Issue/Capital Change

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Exploring forgotten mineral fields

2 September 2008

Manager of Company Announcements Australian Securities Exchange Exchange Centre Level 3 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam

PROPOSED ISSUE OF SECURITIES – DIRECTOR OPTIONS

In accordance with Listing Rule 3.10.3, Peel Exploration Limited ( Company ) wishes to advise that it proposes to grant director options to Mr Craig McGown, a NonExecutive Director of the Company as set out below.

Class ofSecurity Numberto beissued Principal terms IssuePrice Purpose of issue Shareholderapprovalrequired Issuetoclass
DirectorOptions 1,000,000 Exercise price of$0.30 on orbefore 30 April2011 (Non-quoted) Nil To provide costeffective considerationto Mr McGown for hisongoing commitmentand contribution tothe Company Shareholderapprovalwill besought atthe 2008AnnualGeneralMeeting No

The Company will provide shareholders with the Notice of Annual General Meeting where approval for the issue of the options will be sought. The Company will also lodge an Appendix 3B at the appropriate time in accordance with the Listing Rules of Australian Securities Exchange.

Yours faithfully

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DAVID HOCKING COMPANY SECRETARY

Peel Exploration Limited ACN 119 343 73 4 Telephone (08) 9382 3955 Fax (08) 9388 1025 Email [email protected] Level 1, 79 Hay Street, Subiaco, Western Australia 600 8

www.peelex.com.au