ASX ANNOUNCEMENT 19 JANUARY 2016

HIGH-GRADE COPPER DISCOVERY AT WIRLONG; MALLEE BULL UPDATE

WIRLONG PROSPECT, COBAR SUPERBASIN PROJECT

• New high-grade copper discovery confirmed at Peel/JOGMEC's Cobar Superbasin Project JV:

  • WLDD001 returns multiple significant mineralised intercepts, including:

     9m @ 8.0% Cu, 17 g/t Ag, 0.21 g/t Au from 616m (incl. 2.82m @ 21.85% Cu, 46 g/t Ag, 0.62 g/t Au from 619.68m)

     38m @ 1.18% Cu, 4 g/t Ag from 450m

     6m @ 1.23% Cu, 5 g/t Ag from 430m

     4m @ 1.14% Cu, 3 g/t Ag from 643m

  • WLRCDD015 returns multiple significant mineralised intercepts, including:

     4.9m @ 4.3% Cu, 13 g/t Ag from 402.1m (incl. 0.9m @ 19.5% Cu, 58 g/t Ag from 402.1m)

     22m @ 1.0% Cu, 4 g/t Ag from 332m

    • 3m @ 2.1% Cu, 6 g/t Ag from 451m

       2m @ 1.8% Cu, 13 g/t Ag, 1.63% Zn from 524m

• DHEM survey of WLDD001 identifies multiple on-hole and off-hole anomalies with drilling underway to test anomalies

  MALLEE BULL

• Mallee Bull drilling intersects multiple new mineralised intercepts, with better results including:

  o MBRC052 - 4m @ 1.52% Cu, 111 g/t Ag, 0.21 g/t Au, 2.52% Pb, 4.2% Zn from 197m

  o MBRCDD050W1 - 13m @ 0.86% Cu, 33 g/t Ag, 1.39 g/t Au, 0.34% Pb, 0.68%

  Zn from 407m

  o MBRCDD051 - 5m @ 2.1% Cu, 59 g/t Ag, 0.72 g/t Au from 385m, 4m @ 1.18% Cu, 23 g/t Ag, 0.12 g/t Au from 398m, 4m @ 1.87% Cu, 18 g/t Ag, 0.09 g/t Au from 463m and 4m @ 2.64% Cu, 34 g/t Ag, 0.77 g/t Au from 483m

• DHEM modelling at Mallee Bull highlights potential northerly extension to mineralisation

Figure 1 - WLDD001 - 2.82m @ 21.85% Cu, 46 g/t Ag, 0.62 g/t Au from 619.68m

Wirlong Prospect - Cobar Superbasin Project (Peel Mining Ltd 100%; JOGMEC earning up to 50%)

Peel Mining Ltd is pleased to advise that recent drilling at Wirlong, funded via JOGMEC, has intersected multiple significant mineralised intervals, confirming a new and potentially important high-grade copper discovery. Mineralisation intersected to date has the typical geochemical, geological, mineral and alteration assemblages of "Cobar-style" deposits.

Wirlong is a large prospect covering more than 2.5km strike extent, comprising a package of intercalated, sheared and altered felsic volcanics and sediments. It is defined by historic copper workings, a topographic high, a >2km strike multi-element surface geochemical anomaly, and coincident or semi coincident geophysical anomalies including magnetic, radiometric, gravity, IP and more recently electromagnetic.

Drillholes WLRCDD015 and WLDD001 were recently completed at the northern end of Wirlong returning significant new copper mineralised intercepts:

• WLDD001 returned multiple significant mineralised intercepts, including:

   9m @ 8.0% Cu, 17 g/t Ag, 0.21 g/t Au from 616m (incl. 2.82m @ 21.85% Cu, 46 g/t Ag, 0.62 g/t Au from 619.68m)

   38m @ 1.18% Cu, 4 g/t Ag from 450m

   6m @ 1.23% Cu, 5 g/t Ag from 430m

   4m @ 1.14% Cu, 3 g/t Ag from 643m

• WLRCDD015 returned multiple significant mineralised intercepts, including:

   4.9m @ 4.3% Cu, 13 g/t Ag from 402.1m (incl. 0.9m @ 19.5% Cu, 58 g/t Ag from 402.1m)

   22m @ 1.0% Cu, 4 g/t Ag from 332m

  • 3m @ 2.1% Cu, 6 g/t Ag from 451m

 2m @ 1.8% Cu, 13 g/t Ag, 1.63% Zn from 524m

WLRCDD015 (611.7m) was designed, in part, to test beneath the northern end of Wirlong's extensive multi-element geochemical anomaly, in an area with no previous drilling. Initially drilled as an RC drillhole to 402m, following completion of DHEM surveying, the drillhole was extended with a Diamond tail to test a conductor that was positioned beyond the end of hole. This conductor was explained by a 0.9m wide zone of massive chalcopyrite-dominant sulphide mineralisation.

WLDD001 was designed to follow-up WLRCDD015 and is being completed as a Diamond drillhole from surface. Drilling was completed to 728.5m prior to the Christmas break, and following completion of DHEM surveying, drilling is now being extended.

Mineralisation in WLRCDD015 and WLDD001 comprises chalcopyrite-pyrrhotite+/-sphalerite+/- galena+/-pyrite and occurs as sulphide disseminations, veins and veinlets, breccia, and massive sulphides within occasionally sheared/deformed and altered (silica-chlorite-sericite) turbidite sediments and/or felsic volcanics (rhyolite/rhyo-dacite). The true width of mineralisation remains unknown at this stage however is thought to be sub-vertical in geometry.

Extensional drilling of WLDD001 is now underway. Upon completion, the drill rig will be mobilised to a location further south, where a deep drillhole is planned to test beneath the centre of the large Wirlong multi-element geochemical anomaly. Additional geophysical surveying is also planned.

Figure 2 - Wirlong X-Section 6446975N

Figure 3 - Wirlong WLRCDD015 and WLDD001 Drill Plan