ASX ANNOUNCEMENT 29 JULY 2015

FOLLOW-UP DRILLING UNDERWAY AT T1, MALLEE BULL

Peel Mining Limited (ASX: PEX) is pleased to announce that follow-up drilling is now underway at its
50%-owned flagship Mallee Bull project near Cobar in Western NSW. The planned exploration programme comprises a minimum of 2,400m RC and has been designed to test for extensions to very high grade near-surface zinc-lead-silver-gold mineralisation recently intercepted at the T1 target at Mallee Bull.

T1 Target

21 RC drillholes for 3,787m were recently completed at the T1 geophysical target at Mallee Bull to test for new mineralisation, supplementary to the main Mallee Bull copper-silver-gold deposit. T1 is a near- surface, strong chargeable IP, low resistivity anomaly and is coincident with a gravity high. As previously reported, all drillholes intersected zinc-lead-silver-gold mineralisation to varying degrees, with nine of the twenty-one drillholes intersecting high-grade mineralisation to within 50m of surface. Standout results included MBRC028 returning 7m @ 21.39% Zn, 12.74% Pb, 203 g/t Ag and 0.58 g/t Au from 71m and MBRC024 which returned 12m @ 20.30% Zn, 14.81% Pb, 308 g/t Ag and 1.59 g/t Au from 83m.
Mineralisation comprises sphalerite-galena-pyrite sulphides in stringer to massive accumulations within fresh turbidite sediments of the Shume Formation, and is interpreted to pinch and swell as lenses and shoots, dipping at about 45 degrees to the west. Mineralisation remains open in all directions with drilling to date having tested 60m of ~300m strike length at >50 mrads IP chargeability and 60m of ~300m strike length of modelled gravity high. The planned programme will test immediately along strike from the most recently completed drilling.
Previous drilling at Mallee Bull has intercepted substantial zinc-lead rich mineralisation, most notably on the northern end of the current resource model where it has been defined to more than 500m below surface, which remains open. This mineralisation may represent the downdip continuation to the mineralisation currently being intercepted at T1. No resource estimates have been made for zinc- lead mineralisation to date. T1 potentially offers a substantial lift to the quantum of this mineralisation.

For further information, please contact Rob Tyson on +61 420 234 020.

Competent Persons Statements

The information in this report that relates to Exploration Results is based on information compiled by Rob Tyson who is a fulltime employee of the company. Mr Tyson is a member of the Australasian Institute of Mining and Metallurgy. Mr Tyson has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as Competent Persons as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Tyson consents to the inclusion in this report of the matters based on information in the form and context in which it appears. Exploration results are based on standard industry practices, including sampling, assay methods, and appropriate quality assurance quality control (QAQC) measures.

Peel Mining Limited ACN 119 343 734

Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. Fax (08) 9388 1025.

E:[email protected] www.peelmining.com.au