Peel Mining Limited (ASX: PEX) (Peel or the Company) is pleased to provide an update on predevelopment operations for its South Cobar Project in New South Wales, including positive metallurgical testwork results from its Wirlong deposit, achieving recoveries of 96.9% Cu.

Peel's South Cobar Project (SCP), comprises the Mallee Bull, Wirlong, Southern Nights, Wagga Tank and May Day deposits and associated development-focused activities.

Peel is seeking to establish critical mass via the definition of high-quality mineral resources at each of the Company's deposits to support a substantial operation possessing economy of scale and mine life. The Mallee Bull and Wirlong copper dominant deposits present an opportunity to take advantage of a strong copper market, simplifying the notional sequencing of the deposits and metallurgical processes, and allowing for the potential staging of capital

PEEL'S DIRECTOR OF MINING JIM SIMPSON COMMENTED: 'Whilst Peel's South Cobar Copper Project comprises at least four deposits, we are focused on developing the Mallee Bull and Wirlong copper assets as a priority, notionally reducing the complexity of operation whilst focusing on our highest value minerals. By sequencing deposits with copper followed by lead and zinc, upfront capital is reduced in mine development and processing plant capital. The excellent drill results and metallurgical testwork from Wirlong are very encouraging and we believe this deposit will be a good compliment to the Mallee Bull project

WIRLONG METALLURGICAL TESTWORK

Metallurgical testwork has recently focused on the Company's Wirlong Copper deposit, in anticipation of the planned release of a maiden mineral resource later this year. No previous metallurgical testwork has been conducted on samples from Wirlong. First pass metallurgical testwork consisted of a preliminary batch flotation test on one composite sample from Wirlong drillhole WLDD009. The mineralised interval from 265m to 290m was selected for testwork with initial assaying yielding an average copper grade of 2.75% Cu. The interval encompasses several metres of hanging wall and footwall on each end of the high-grade stringer chalcopyrite mineralisation. The testwork program was conducted by ALS Metallurgy Lab in Burnie, Tasmania, and was designed to establish a preliminary flowsheet and assess recoverability of the Wirlong copper mineralisation into a flotation concentrate. The sample went through a primary grind of P80 75micron and 'rougher' float followed by a regrind of P80 13 micron and a two-stage 'cleaner' float process. This initial program was based around previous testwork performed on samples from Peel's Mallee Bull deposit and provides scope to further optimise grade and recoveries. Following initial grind establishment, a high-quality copper concentrate was generated via sequential flotation processes.

Contact:

Rob Tyson

Tel: +61 (0)420 234 020

COMPETENT PERSONS STATEMENTS AND MINERAL RESOURCE ESTIMATES

The information in this report that relates to Exploration Results is based on information compiled by Mr 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.

Past Exploration results reported in this announcement have been previously prepared and disclosed by Peel Mining Ltd in accordance with JORC 2012. The Company confirms that it is not aware of any new information or data that materially affects the information included in these market announcements. The Company confirms that the form and content in which the Competent Person's findings are presented here have not been materially modified from the original market announcement.

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