Exploring forgotten mineral fields

MEDIA RELEASE

10 October 2007

Peel identifies high-grade tungsten-moly at Attunga

Peel Exploration is pleased to announce that re-logging and sampling of historic diamond drillhole 23 (ATT-23) from the Attunga Scheelite Deposit (previously referred to as Prospect 1) has encountered high-grade tungsten-molybdenum mineralisation that had not been previously identified. The Attunga Scheelite Deposit is contained within EL6884 and is 100%-owned by Peel Exploration.

An interval of 2.44m at 3.41% W (4.3% WO₃) and 0.23% Mo from 89.97m downhole was obtained. An additional interval of 1.09m at 0.27% W (0.34% WO₃) and 297ppm Mo from 58.83m was also returned. These intervals were calculated using a 0.2% W cutoff. The true width of these intersections is not known. Tungsten analyses were completed using pressed pellet XRF methodology by ALS Chemex. The samples have been submitted for check analyses by fusion XRF methodology.

In 1969 Geopeko Ltd reported that ATT-23 contained an intersection of 20.42m at 1.46% WO₃ from 181.97m which included 9.75m at 0.24% Mo from 185.32m, however no other mineralisation was identified within the drillhole then or since. ATT-23 is the first drillhole from the Attunga Scheelite Deposit that Peel has relogged and sampled. Geopeko completed its assaying of ATT-23 at King Island using XRF.

The Attunga Scheelite Deposit was discovered in the late 1960s by Endurance Mining Corporation Ltd and a small high-grade resource was subsequently established by Geopeko Ltd under an option agreement with Endurance. This resource was based on the results from 25 diamond holes. Subsequent explorers also ascribed resource estimates to the deposit. As the historic resources attributed to Attunga were completed before the introduction of the JORC exploration reporting code, no further details are included in this announcement. The deposit had been held under a single mining lease until its expiration in June 2007.

Mineralisation at the Attunga Scheelite Deposit consists of proximal skarns developed at the contact of a lime-rich sequence with the Inlet Monzonite. The geometry of the lode is complex, but is essentially a northerly plunging “pipe” of skarn and crystalline marble.

Importantly, all the diamond drilling completed at Attunga is now stored at the NSW Government’s drillcore library in Sydney, and is available for exploration and further sampling.

Peel plans to re-log and re-assay core with the aim of generating a resource model as soon as possible.

Rob Tyson - Executive Director.

Table 1: Drillhole Location Details

Table 2: Key assay results

Notes:

1. Samples were from sawn half core and core loss was minor through most of hole ATT-23 and is not considered to have affected results.
2. Samples were analysed at ALS Chemex utilising methods ME-ICP61s (four-acid “near total” digestion) for Mo results and W-XRF07 (pressed pellet XRF) for W results.
3. WO₃ % was calculated using a 1.261 conversion factor.

Attunga Project Regional Geology and Prospect Locations

Attunga Scheelite Deposit Cross Section

About Peel Exploration Ltd

Peel Exploration is a newly listed precious and base metals explorer with six 100%-owned tenements covering 700 km² in the New England Fold Belt region of northern New South Wales.

Peel Exploration believes the New England Fold Belt, particularly the portion located in northern NSW, represents a unique opportunity for exploration. The area has a rich mining history with numerous mineral discoveries including Mount Morgan, Gympie, Mount Rawdon, Cracow, Hillgrove, Timbarra and Twin Hills. Yet despite this rich mineral endowment, the Belt remains poorly explored with minimal modern exploration.

The Company’s portfolio of 100% owned exploration licences comprises:

1.       The Attunga Project (EL6883 & EL6884), containing numerous historic gold, tungsten and molybdenum prospects. The Attunga Project exhibits the hallmarks of an Intrusive-Related Gold System.

2.       The Dungowan Project (EL6613), containing five historic copper mines and workings. High grade copper mineralisation was reported from the Fishers copper mine with 2,643 tonnes of ore extracted at an average grade of 13.4% copper.

3.       The Barry Project (EL6614), centred on a cluster of copper and molybdenum workings. Exploration in the 1970’s returned copper values averaging some 1.7%.

4.       The Waverley Project (EL6719), centred on the historic Waverley silver-lead-zinc workings and an associated magnetic anomaly. Prospecting in the mid 1990’s returned anomalous values of up to 739 ppm silver, 14.6% zinc and 9.4% lead.

5.       The Armidale Project (EL6722), containing several historic silver mines along with numerous gold, antimony, tungsten and molybdenum workings. The area also hosts a large untested gravity anomaly which will receive exploration priority.

The Company believes the prospects offer excellent potential for the discovery of economic gold, tungsten, molybdenum, copper, zinc, lead and silver, with most prospects being polymetallic in nature.

Peel Exploration’s Project Location Map

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