core sector communique

MALLEE BULL RETURNS 72m @ 3.51% COPPER EQUIVALENT

Highlights:

· MBDD002 returns cumulative intercept of 72m @ 3.51% CuEq* (2.11% Cu, 41 g/t Ag, 1.13 g/t Au, 384 g/t Co) comprising two broad zones of high-grade, copper-dominant sulphide mineralisation:

o Massive sulphide zone – 41m @ 3.56% CuEq* (1.71% Cu, 33 g/t Ag, 1.84 g/t Au, 616 g/t Co) from 363m including higher grade zones of:

§ 2m @ 4.38% CuEq* (2.31% Cu, 38 g/t Ag, 2.09 g/t Au, 605 g/t Co)

§ 13m @ 5.11% CuEq*(3.11% Cu, 52 g/t Ag, 1.59 g/t Au, 828 g/t Co)

o Stringer sulphide zone – 31m @ 3.45% CuEq* (2.65% Cu, 51 g/t Ag, 0.18 g/t Au, 78 g/t Co) from 415m including higher grade zones of:

§ 12m @ 5.05% CuEq* (4.06% Cu, 64 g/t Ag, 0.21 g/t Au, 92 g/t Co)

§ 6m @ 4.90% CuEq*(3.35% Cu, 100 g/t Ag, 0.38 g/t Au, 79 g/t Co)

· MBDD002 is part of ~4,000m diamond drilling programme targeting down-dip/plunge mineralisation at Mallee Bull and is more than 100m down-dip from nearest previous drilling.; drilling is continuing.

· Five drillholes have been completed to date (including MBDD002); all have intersected significant sulphide mineralisation.

· MBDD004 (40m south of MBDD002) intersects a 30m massive sulphide zone from 357m followed by 13m stringer/breccia sulphide zone (assays awaited).

Peel Mining Limited (ASX: PEX) is pleased to report that sample assay results returned from diamond drillhole MBDD002 at the Mallee Bull copper-polymetallic discovery confirm the presence of several broad zones of high-grade, copper-polymetallic mineralisation. Mallee Bull is located 100 km south of Cobar in NSW and is subject to an $8.3m farm-in agreement with CBH Resources Ltd (a subsidiary of Tokyo Stock Exchange-listed Toho Zinc), whereby CBH has the right to earn an interest of up to 50% in the project over a three-year period. Peel remains exploration operator.

MBDD002 was designed to test the down-dip/plunge continuity of mineralisation at Mallee Bull, and encouragingly has intersected the most significant mineralisation encountered to date. The true width of mineralisation is estimated to be 60-65% of the downhole width or ~25m for the massive sulphide zone and ~19m for the stringer/breccia sulphide zone. MBDD002 is part of a 4,000m diamond drilling programme at Mallee Bull targeting down-dip/plunge mineralisation.

A strong massive sulphide mineralised zone comprising pyrite-pyrrhotite-chalcopyrite was intersected from about 363m downhole. This zone was initially dominated by pyrite/pyrrhotite, progressively grading into strong chalcopyrite (copper) mineralisation with strong accessory gold, silver and cobalt values. A strong stringer/matrix sulphide zone comprising pyrite-pyrrhotite-chalcopyrite-galena-sphalerite followed further downhole with accessory gold and silver values.

The styles of mineralisation present at Mallee Bull are similar to those found elsewhere in the Cobar district including at the world-class CSA mine, one of Australia’s highest grade copper mines. Cobar-style deposits are typically short in strike length but long in the vertical plane.

Geological logging of Phase 2 drillholes completed to date shows all drillholes to be mineralised. MBDD001, drilled at the southern end of Mallee Bull, intersected several zones of moderate stringer/breccia sulphides starting at about 430m downhole. MBDD002, drilled 80m north of MBDD001, intersected a 41m massive sulphide zone starting at 363m downhole and a 31m stringer/breccia sulphide zone at 415m downhole.

MBDD003, drilled 140m north of MBDD001, returned a 13m zone of semi-massive sulphides from 367m downhole followed by several zones of moderate stringer/breccia mineralisation. MBDD004, drilled 40m north of MBDD001, intersected a 30m zone of massive sulphide at 357m downhole followed by a 14m stringer/breccia zone at 387m.

MBDD005, collared immediately behind MBDD004, intersected a 5m semi-massive sulphide zone at about 410m downhole, followed by several moderate stringer/breccia zones. Gyroscopic survey data indicates MBDD005’s drill trace swung significantly to the south, thereby not testing immediately down-dip of MBDD004. The true width of mineralisation intercepted in MBDD001 to MBDD005 is estimated to be 60-65% of the downhole widths. Assays for drillholes MBDD003 to MBDD005 will be available over the coming weeks.

Drilling completed to date indicates that high-grade copper-dominant polymetallic sulphide mineralisation at Mallee Bull has a strike length of ~120m, comes to within 150m of surface, and now extends to at least 400m below surface and is open in multiple directions including at depth. The balance of the Phase 2 diamond drilling programme will test down dip from MBDD002.

Commenting on the result, Peel Managing Director Rob Tyson said:

“The assay results from MBDD002 are outstanding. The broad and strong mineralisation reinforces Mallee Bull’s economic potential and ranks it amongst the most promising Greenfield discoveries in recent times for both NSW and Australia in general. The increasing scale and tenor of mineralisation at deeper levels within Mallee Bull bodes well for future exploration.”