Peel Mining : High Grade Maiden Copper Resource At Wirlong

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PEX:ASX

ASX ANNOUNCEMENT

29th NOVEMBER 2021

HIGH GRADE MAIDEN COPPER RESOURCE AT WIRLONG

WITH EXCELLENT POTENTIAL FOR FUTURE RESOURCE GROWTH

KEY POINTS:

• Maiden Indicated and Inferred Mineral Resource Estimate (MRE) for Wirlong delivers
  2.45Mt @ 2.4% Cu, 8.7g/t Ag for 57,900t contained copper and 686,000oz contained silver.
• Wirlong MRE contains five lenses with the MBX lens hosting 1.38Mt @ 2.9% Cu, 10.5g/t Ag.
• The MRE uses a A$90/t Net Smelter Return (NSR) cutoff to generate mineable shapes (utilising Stope Shape Optimisation) including minimum mining widths and internal dilution.
• The MRE, combined with ongoing infill and extensional drilling, provides the basis for scoping study work to better understand the potential development opportunities available.
• Wirlong remains open along strike and down dip, particularly to the southeast following on from recently reported drillhole WLDD040 which returned 205m @ 1.4% Cu, 3g/t Ag from

434m1.

Table 1- Wirlong Maiden Resource Estimate Summary as at November 2021

WIRLONG MAIDEN MINERAL RESOURCE ESTIMATE

Resource	Tonnes (Kt)	Cu	Ag	Contained	Contained
Classification		(%)	(g/t)	Cu (t)	Ag (oz)
Indicated	860	2.3	9.1	19,800	252,000
Inferred	1,590	2.4	8.5	38,200	435,000
Total Resource	2,450	2.4	8.7	57,900	686,000

Note: The Wirlong MRE utilises A$90/tonne NSR cut-off mineable shapes that include minimum mining widths and internal dilution. Figures are rounded to reflect the precision of estimates and include rounding errors.

Peel Mining Ltd (ASX Code: PEX) ("Peel" or "the Company") is pleased to report a maiden Indicated & Inferred Mineral Resource Estimate for its 100% owned Wirlong copper deposit located ~70km SSE of Cobar in Western NSW. The MRE provides Peel with further foundation to its copper first development strategy, adding further copper-rich resources to Peel's high-grade Mallee Bull copper deposit.

PEEL MINING MANAGING DIRECTOR ROB TYSON COMMENTED:

"We are very pleased to deliver a maiden high-grade copper resource for Wirlong, further bolstering Peel's Cobar Basin global resources, and particularly the Company's copper first strategy.

"The strong copper mineralisation hosted within the main MBX lens has provided a solid base for the MRE, hosting around 69% of the MRE's contained copper, while the other lenses highlight the widespread copper endowment and the clear potential for Wirlong to grow.

"This MRE is an excellent foundation, and it is anticipated that ongoing infill and extensional drilling will improve and expand this copper-rich mineral system."

1 - See ASX announcement dated 27/10/2021 - "Peel achieves 205m @ 1.4% Copper at Wirlong

Peel Mining Limited	ACN 119 343 734
P: [phone]	PO Box 849, West Perth WA 6872
E:[e-mail]	www.peelmining.com.au

Unit 1, 34 Kings Park Road, West Perth WA 6005

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WIRLONG BACKGROUND

Wirlong is located within Peel's 100%-owned EL8307 and EL8126. Peel was initially drawn to the area by the presence of historic copper workings, a topographic high, a >2km multi-element surface geochemical anomaly and coincident or semi-coincident magnetic (>3km), radiometric, gravity, IP and electromagnetic anomalies. Exploratory drilling at Wirlong in early 2015 identified significant primary copper mineralisation with follow-up drilling in late 2015 yielding strong copper mineralisation and confirming the potential of the prospect. Mineral Resource Estimate drilling to date has focused on a relatively confined zone covering ~350m of strike of the greater prospect area.

Higher grade intervals from recently reported drillhole WLDD040 were included in the MRE, however the influence of this mineralisation was moderated by its relative location on the edge of the block model. The Wirlong mineral system remains open along strike and down dip of the MRE study area and infill and extensional drilling remains ongoing at the time of reporting, with further processing of core and assay results pending for 20 drillholes. Results from drilling received beyond that included in the MRE will inform subsequent MRE updates as Wirlong continues to evolve.

MINERAL RESOURCE ESTIMATE

The MRE has been constrained and reported within mineable shapes generated at A$90/t NSR with a minimum mining width of three metres and includes internal dilution. The MRE for the Wirlong deposit is reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code (2012)).

Table 2 - Wirlong Maiden Mineral Resource Estimate (by Domain) as at November 2021

WIRLONG MAIDEN MINERAL RESOURCE ESTIMATE

	Domain		Resource			Tonnes (Kt)		Cu		Ag		Contained			Contained
		Classification				(%)		(g/t)		Cu (t)			Ag (oz)
			Indicated	450	3.1	11.3	13,900		163,000
	MBX	Inferred	930	2.8	10.1	26,000		302,000
			Sub-total	1,380	2.9	10.5	39,900		465,000
			Indicated	170	1.3	6.7	2,200		37,000
	B	Inferred	170	1.6	4.9	2,700		27,000
			Sub-total	340	1.4	5.8	4,900		63,000
			Indicated	120	1.5	6.4	1,800		25,000
	C	Inferred	120	1.5	7.0	1,800		27,000
			Sub-total	240	1.5	6.7	3,600		52,000
			Indicated	70	1.9	8.1	1,300		18,000
	D	Inferred	290	2.0	7.0	5,800		65,000
			Sub-total	360	2.0	7.2	7,100		83,000
			Indicated	50	1.1	4.8	600		8,000
	E	Inferred	70	1.5	5.0	1,100		11,000
			Sub-total	120	1.3	4.9	1,600		19,000
			Indicated			860		2.3		9.1		19,800			252,000
	All		Inferred			1,590		2.4		8.5		38,200			435,000
			Total Resource			2,450		2.4		8.7		57,900			686,000

Note: The Wirlong MRE utilises A$90/tonne NSR cut-off mineable shapes that include minimum mining widths and internal dilution. Figures are rounded to reflect the precision of estimates and include rounding errors.

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An Indicated and Inferred MRE of 2.45Mt @ 2.4% Cu and 8.7g/t Ag has been constrained and reported within AU$90/t NSR mineable shapes. Significantly, 860Kt @ 2.3% Cu and 9.1 g/t Ag of Indicated classified MRE has been constrained and reported within A$90/t NSR mineable shapes, accounting for ~35% of the MRE tonnes and ~34% of contained Cu metal. See Table 2 for full Mineral Resource Estimate breakdown by domain.

The Wirlong Indicated & Inferred MRE is the product of 41,612m of RC and diamond drilling completed by Peel since 2014. The bulk (~79%) of that drilling has been focused on the high- grade MBX (Massive Breccia Mineralisation) lens following its recognition in late 2018.

The MRE has been completed by independent mining consultant Mr Jonathon Abbott of MPR Geological Consultants Pty Ltd (MPR). Mr Abbott accepts responsibility for the block modelling and the MRE. Mr Robert Tyson, an employee of Peel Mining, accepts responsibility for the geological interpretation, sampling and analytical data upon which the MRE is based. NSR calculations and mineable shape creation was completed by Antcia Consulting Pty Ltd.

Figure 1 - Wirlong Block Model Tonnage/Grade Curve - Indicated & Inferred

Indicated + Inferred

	8					4
	7
	6					3	TONNES (MILLION)
	5
CU %	4					2
3
2					1
	1
	0					0
	0	100	200	300	400	500

CUT OFF NSR$

Cu %		SSO Cu		Tonnes		SSO Tonnes

Note: Figure 1 shows NSR-tonnage curves from evaluation of the combined models on a block-by-block basis for cut offs of A$0 to A$500/tonne in A$10 increments relative to the combined Mineral Resource Estimates.

NET SMELTER RETURN

For the reporting of the MRE, a Net Smelter Return (NSR) value has been used to reflect the polymetallic nature of mineralisation. NSR in A$/t, represents the potential economic value of mineralisation net of all costs after it leaves site, and was applied to each block within the block model after estimation. The NSR (A$/t) formula includes assumptions regarding metal prices, exchange rates, metallurgical recoveries, metal marketing terms (including payabilities and deductions/penalties), freight, smelting and refining charges, and royalties.

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The NSR formula is:

NSR = (metal grades x metallurgical recoveries x payabilities x A$ metal prices) less (concentrate freight and treatment charges, penalties and royalties)

Metal price assumptions were based on late 2021 Australian dollar metal pricing and are listed in Table 3; metallurgical recovery assumptions are listed in Table 4.

MINING ASSUMPTIONS

The MRE is constrained and reported within mineable shapes produced by Deswik's Stope Shape Optimiser using an NSR cut-off of A$90/t. SSO runs were performed by Antcia Consulting Pty Ltd with NSR inputs supplied by Peel Mining. The mineable shapes were based upon the smallest mineable unit (SMU) for the SSO shapes being 5m long, 5m high, with a minimum mining width of 3m. These inputs were used to provide a balance between practical mining and mineralisation shapes.

CUT-OFF VALUES

The reported MRE includes internal dilution, where required, representing mineralisation estimated at below the A$90/t NSR cut off but does not include footwall or hanging wall dilution outside the mineralised domains. The cut-off value includes assumptions regarding mine operating, processing and site administration costs. Material at this cut-off within mineable shapes, is considered by Peel to have reasonable prospects of eventual economic extraction.

Table 3 - Metal price assumptions used in MRE

COMMODITY PRICE	PRICE ASSUMPTION
A$ Copper Price	13,014/tonne
A$ Silver Price	32.87/ounce

Figure 1 shows Wirlong's full block model tonnage/grade curve for Indicated and Inferred classified estimates at incremental A$10 NSR cutoffs ranging from $A0/t to A$500/t with SSO modelling from A$80/t to A$100/t shown as bold.

METALLURGY AND CONCEPTUAL PROCESSING FLOWSHEET

Metallurgical testwork completed by Peel at ALS Burnie has guided the company's metallurgical assumptions for the Wirlong MRE. Work to date has comprised a series of sequential and locked cycle flotation tests.

As a result, Peel has assumed a conceptual sequential processing flowsheet for the project comprising a single copper sulphide flotation process. Cumulative metallurgical recoveries for copper and silver are listed in Table 4. Metallurgical testwork at ALS Burnie remains ongoing. It is Peel Mining's opinion that all elements included in the conceptual processing flowsheet have a reasonable potential to be recovered and sold.

Table 4 - NSR metallurgical recovery assumptions used in MRE

METAL	CUMULATIVE RECOVERY (%)
Copper	95
Silver	65

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WLDD040

Figure 2 - MBX Lens long section looking southwest showing Indicated and Inferred SSO model blocks

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