PEEL MINING (ASX: PEX) ANNOUNCEMENT

FOLLOW-UP DRILLING CONFIRMS COBAR-STYLE DISCOVERY

New high-grade polymetallic mineralisation at Mallee Bull prospect (previously known as 4-Mile) confirms exciting new Cobar-style discovery

Highlights:

· 5,000m follow-up RC/diamond drilling at the Mallee Bull prospect commenced late November 2011 (May Day Project, 100km south of Cobar, NSW).

· Initial assays return high-grade copper-dominant polymetallic mineralisation from multiple drillholes; further assays pending.

• Better assays include:

o 4MRC015 - 6m @ 2.00% Cu, 64 g/t Ag, 0.43 g/t Au, 0.52% Pb, 0.22 % Zn, 0.02% Co from 208m;

o 4MRC016 - 11m @ 2.71% Cu, 36 g/t Ag, 0.26 g/t Au, 0.11% Pb, 0.07% Zn, 0.03% Co from 233m; and

o 4MRC019 - 10m @ 2.66% Cu, 41 g/t Ag, 0.51 g/t Au, 0.42% Pb, 0.22% Zn, 0.03% Co from 237m.

· Strike of mineralisation extended to at least 120m and open in multiple directions.

· Drilling recommencing this week following Christmas/New Year shutdown.

Perth-based explorer Peel Mining Limited (ASX: PEX) is pleased to report that follow-up RC/diamond drilling at the Mallee Bull prospect (previously known as 4-Mile), part of its 100%-owned May Day-Gilgunnia Project located about 100km south of Cobar in NSW, has intersected further high-grade Cobar-style polymetallic mineralisation.

Peel’s Managing Director, Mr Rob Tyson, said the Company was highly encouraged and increasingly confident in the discovery following confirmation of Cobar-style polymetallic mineralisation at Mallee Bull.

“These results confirm that the Mallee Bull prospect is host to high-grade copper-dominant polymetallic mineralisation similar to that found at other major deposits located in the Cobar district. Given the early stage of exploration, Mallee Bull represents a possible game-changer for Peel,” Mr Tyson said.

The Mallee Bull prospect, which was initially identified in early 2011 as a coincident electro-magnetic and magnetic geophysical anomaly, is located within the historic 4-Mile goldfield. Multiple phases of exploratory drilling culminated in the discovery of high-grade Cobar-style mineralisation in August 2011.