Peel Mining : Latest Drilling Highlights Mallee Bull's High-Grade Core

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PEX:ASX

ASX ANNOUNCEMENT

7th FEBRUARY 2022

LATEST DRILLING HIGHLIGHTS MALLEE BULL'S HIGH-GRADE CORE

KEY POINTS

MALLEE BULL

• Latest assays from Mallee Bull resource upgrade drilling yield new high-grade copper mineralisation:
  MBDD064
  o 58m @ 4.96% Cu, 59g/t Ag, 0.20g/t Au from 585m including:
• • 31m @ 7.62% Cu, 78g/t Ag, 0.24g/t Au from 589m

MBDD058

1. 48m @ 3.61% Cu, 36g/t Ag, 0.22g/t Au from 484m including:
2. • 15.93m @ 6.25% Cu, 57g/t Ag, 0.25g/t Au from 504.7m
   • 7.28m @ 4.48% Cu, 52g/t Ag, 0.28g/t Au from 524m

MBDD056

1. 31m @ 3.21% Cu, 32g/t Ag, 0.22g/t Au from 396m including:
2. • 5m @ 10.60% Cu, 68g/t Ag, 0.39g/t Au from 419.1m

MBDD073

1. 14.3m @ 2.14% Cu, 21g/t Ag, 0.21g/t Au from 484m o 9.5m @ 2.30% Cu, 18g/t Ag, 0.14g/t Au from 517m

MBDD054

• 1. 9m @ 2.36% Cu, 44g/t Ag, 0.44g/t Au from 382m
• Drillholes MBDD054, 056, 058, and 064 are located in the centre of the Mallee Bull and highlight the deposit's exceptional high-grade core
• Drillhole MBDD073 is located on the northern end of Mallee Bull and indicates continuation of the resource to the north
• Review of Mallee Bull resource drilling completed in Dec 2021 identified opportunity to improve resource quality with targeted infill drilling; drilling commenced mid-Jan 2022
• All drilling completed prior to Christmas has now been logged and processed with assays pending for 19 drillholes.
• Peel expects to deliver a Mallee Bull resource update within Mar Q 2022

WIRLONG

• Latest assays from Peel's ongoing resource drilling at Wirlong copper deposit in NSW yield further strong copper intercepts, with new results including:
  WLDD047 (partial results)
  o 4m @ 2.04% Cu, 3g/t Ag from 526m o 5m @ 6.75% Cu, 11g/t Ag from 544m
• Assays for 3 drillholes are pending; 4 drillholes are now being processed; with a further 12 drillholes currently awaiting processing. These results and any additional drilling will be used in an upcoming resource upgrade expected in mid-2022.
• Review of Wirlong resource drilling completed in Dec 21 identified opportunity to grow and infill the deposit through targeted drilling.

Peel Mining Limited

P: [phone]

1. [e-mail] 1, 34 Kings Park Road, West Perth WA 6005

ACN 119 343 734

PO Box 849, West Perth WA 6872 www.peelmining.com.au

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Peel Mining Limited (ASX:PEX) (Peel or the Company) is pleased to report that ongoing drilling at its 100%-owned Mallee Bull and Wirlong copper deposits in NSW has returned further high-grade copper- mineralised intercepts.

Resource drilling at both prospects was paused for the Christmas/NY period, with reviews of both Wirlong and Mallee Bull resource drilling completed to determine opportunity to increase the resource quality and scale for economic study work. This work has now been completed with targeted infill drilling at Mallee Bull now underway.

Additional to the recently released maiden resource estimation at Wirlong, Peel expects to deliver a Mallee Bull resource update in the March quarter 2022, as part of Peel's copper first development strategy. Wirlong and Mallee Bull are part of Peel's South Cobar Project, centred around 100km south of Cobar in Western NSW.

PEEL MINING MANAGING DIRECTOR ROB TYSON COMMENTED:

"Resource drilling at Mallee Bull has delivered a number of exceptional copper-rich intervals, highlighting the incredible tenor of chalcopyrite present in the heart of the mineral system. These results provide strong encouragement that the upcoming resource upgrade will demonstrate the high-grade nature of Mallee Bull and its economic importance as the Company progresses our copper-first strategy."

MALLEE BULL

Mallee Bull resource upgrade drilling is part of Peel's strategy to advance each of its deposits to higher confidence mineable resources to provide an economic study, as part of the Company's copper first development strategy.

The 2017 resource estimate for Mallee Bull (see Table 1) comprises 6.76Mt at 1.8% Cu, 31g/t Ag, 0.4g/t Au, 0.6% Pb, 0.6% Zn (2.6% CuEq) containing approximately 119,000t Cu, 6.6Moz Ag, 83,000oz Au, 38,000t Pb, 38,000t Zn) (using a 1% CuEq cut-off). Refer to Peel Mining's ASX Announcement dated 6th July 2017 "Mallee Bull Resource Grows by 65% to 175,000t CuEq" for further details.

As previously reported, Peel has identified significant copper mineralisation in drilling recently completed as part of resource definition drilling, with recently returned assays from MBDD054, MBDD056, MBDD058, MBDD064 and MBDD073 further confirming these observations:

MBDD064

1. 58m @ 4.96% Cu, 59g/t Ag, 0.20g/t Au from 585m including:
2. • 31m @ 7.62% Cu, 78g/t Ag, 0.24g/t Au from 589m

MBDD058

1. 48m @ 3.61% Cu, 36g/t Ag, 0.22g/t Au from 484m including:
2. • 15.93m @ 6.25% Cu, 57g/t Ag, 0.25g/t Au from 504.7m
   • 7.28m @ 4.48% Cu, 52g/t Ag, 0.28g/t Au from 524m

MBDD056

1. 31m @ 3.21% Cu, 32g/t Ag, 0.22g/t Au from 396m including:
2. • 5m @ 10.60% Cu, 68g/t Ag, 0.39g/t Au from 419.1m

MBDD073

1. 14.3m @ 2.14% Cu, 21g/t Ag, 0.21g/t Au from 484m o 9.5m @ 2.30% Cu, 18g/t Ag, 0.14g/t Au from 517m

MBDD054

1. 9m @ 2.36% Cu, 44g/t Ag, 0.44g/t Au from 382m

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Significantly, MBDD073 is situated on the northern extent of the current resource model for Mallee Bull proper and has returned the best results to date to the north. Visible mineralisation in the adjacent down-dip holes confirm the resource remains open at depth to the north, below the sparsely drilled Mallee Bull North area (approx. 200m north). Table 7 shows all significant resource upgrade drilling intercepts returned to date.

Although mineralisation at Mallee Bull commences at ~60m below surface and has been defined to at least 800m below surface, remaining open along strike and at depth, the bulk of Mallee Bull's contained copper is located from ~350m below surface where resources are predominantly of an Inferred nature. The resource upgrade drilling program, comprising ~27,000m to date, is primarily designed to convert Inferred classified resources to Indicated classification for an economic study. At the time of reporting, 19 drillholes have assays pending (samples in lab).

A review of all Mallee Bull drilling was conducted late last year to determine the amount of drilling required in 2022 to have enough resource confidence to publish reserves and an economic study. Two double shifting multi-purpose drill rigs are now back on site at Mallee Bull, with 2 holes already completed and another 2 ongoing. An update of the mineral resource at Mallee Bull is expected in the March Quarter 2022.

The true width of Mallee Bull intercepts reported is estimated to be approximately 40-60% of the downhole widths.

WIRLONG

The resource upgrade drilling is in line with Peel's strategy to advance each of its deposits to mineable resources, as part of the Company's copper first development strategy.

The 2021 resource estimate for Wirlong (see Table 2) comprises 2.45Mt at 2.4% Cu, 8.7g/t Ag containing approximately 57,900t Cu, 686Koz Ag (using a A$90/t NSR cut-off). Refer to Peel Mining's ASX Announcement dated 29th November 2021 "High Grade Maiden Copper Resource at Wirlong" for further details. There are a number of holes still to be assayed with recent returned assays as per below.

Recently returned assays confirm new mineralised high-grade intercepts; better assays include:

WLDD047 (partial results)

1. 4m @ 2.04% Cu, 3g/t Ag from 526m o 5m @ 6.75% Cu, 11g/t Ag from 544m

The above results were not available in time to be included in the recently released maiden MRE for Wirlong.

Tables 7 & 8 show all significant resource drilling intercepts returned to date.

A review of all Wirlong Central zone drilling was conducted late last year to determine the amount of drilling required in 2022 to have enough resource confidence to publish reserves and an economic study. Drilling will re-commence at the conclusion of the current drilling program at Mallee Bull. An update of the mineral resource at Wirlong is expected by mid-2022.

Drilling at Wirlong was designed to test the upper part of the Wirlong Central zone, where high-grade copper (chalcopyrite) mineralisation is structurally controlled on a NW-SE orientation, locally known as the John Owen Fault. Wirlong Central zone mineralisation is also interpreted to be influenced by the interaction between the John Owen Fault and the regional scale N-S trending Woorara fault, creating a sinistral strike slip fault zone encompassing en echelon vein arrays.

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The true width of intercepts reported for mineralisation associated with the John Owen Fault is estimated to be approximately 40-60% of the downhole widths. The true width of mineralisation distal to the John Owen Fault is more variable depending on vein array orientations relative to the respective drillhole. Further drilling is required in the south-east part of the Wirlong Central zone to determine accurate true widths in this area.

MALLEE BULL BACKGROUND

The Mallee Bull copper deposit is located approximately 100km south of Cobar in western NSW and is situated on a 20,000-acre pastoral lease owned by Peel Mining.

In 2010, Peel was granted exploration lease EL7461 which encompassed the historic Gilgunnia and 4- Mile goldfields. Exploration initially focused on the known polymetallic potential of the May Day deposit located within ML1361 (wholly contained within EL7461) until a 2010 airborne electromagnetic geophysical survey resulted in the recognition of a coincident late time conducting anomaly and magnetic high proximal to the historic 4-Mile goldfields. The anomaly was confirmed by a subsequent ground-based geophysical survey in early 2011, and follow-up RC and diamond drilling resulted in the discovery of strongly anomalous polymetallic (Cu-Pb-Zn-Ag-Au) mineralisation.

In 2012, CBH Resources entered a farm-in agreement to acquire 50% of the Mallee Bull and May Day projects for $8.3m expenditure. During the JV partnership, seven drill programs were completed at Mallee Bull, providing the basis for the reporting of a maiden mineral resource in 2014 and an updated mineral resource in 2017 (see Table 1). In 2020, Peel regained 100% control of the Mallee Bull and May Day deposits.

Table 1: Mallee Bull 2017 Mineral Resource estimate based on 1% CuEq cutoff grade. Figures in this table are rounded to reflect the precision of the estimates and include rounding errors.

	Resource			Tonnes			CuEq %			Cu %			Ag g/t			Au g/t			Pb %			Zn %
	Classification			(Kt)
	Indicated		1,340		2.15		0.91		30		0.4		0.96		1.23
	Inferred		5,420		2.7		2.0		31		0.4		0.5		0.4
	Total Resource		6,760		2.6		1.8		31		0.4		0.6		0.6

Since discovery in 2011, drilling activities at Mallee Bull and proximal targets have comprised 125 RAB holes, 153 RC holes (including 42 with diamond tails), and 102 diamond holes (including 11 wedge holes) for a total of ~9,500m of RAB drilling, ~28,400m of RC drilling, and ~56,800m of diamond drilling at end 2021. Mineralisation at Mallee Bull commences at ~60m below surface and has been defined to at least 800m below surface and remains open along strike and at depth. Other exploration activities completed at Mallee Bull and surrounds include extensive surface geochemical sampling, geological mapping, and numerous airborne, surface and downhole geophysical surveys.

Mallee Bull is interpreted to be in a favourable geological and structural position; it is situated in an interpreted high-stress environment of the "nose" of an anticline and occurs in a geological sequence of turbidite and volcaniclastic sediments which are thought to be age equivalent to the Chesney and Great Cobar Slate Formations found in the immediate Cobar region. Mineralisation occurs either as massive sulphide or hydrothermal breccia styles within a package of brecciated volcaniclastic and turbidite sediments comprising siltstones and mudstones and is interpreted to occur as a shoot/lens- like structure dipping moderately to the west. The deposit is currently subdivided into three lenses: Silver Ray, Union, and Mallee Bull.

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WIRLONG BACKGROUND

Table 2: Wirlong Maiden Resource Estimate Summary as at November 2021. 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.

Resource	Tonnes (Kt)	Cu (%)	Ag (g/t)	Contained	Contained
Classification				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

Wirlong is within Peel's 100%-owned EL8307, located ~80km SSE of Cobar or ~35km N of Peel's 100%- owned Mallee Bull copper deposit. It is defined by 2km strike of sheared and intercalated volcanics and sediments; large multi-element soil geochemical anomalies; and coincident/semi-coincident geophysical anomalies. It has since proven to represent a very large hydrothermal system hosting significant copper mineralisation along more than 2.5km strike length and to depths of up to 950m. Some of the better copper intercepts returned from discovery phase of drilling at the Wirlong prospect include:

• 9m @ 3.29% Cu, 18 g/t Ag from 70m in WLRC035
• 27m @ 5.3% Cu, 23 g/t Ag from 286m in WLRC026
• 31m @ 3.19% Cu, 11 g/t Ag from 299m in WLRC052
• 9m @ 8% Cu, 17g/t Ag, 0.21 g/t Au from 616m in WLDD001
• 17m @ 4.59% Cu, 8 g/t Ag from 738m in WLRCDD043

Peel completed three diamond drillholes at Wirlong Central in late 2019/early 2020 to test a new structural model (NW-SE) for the controls on high-grade copper mineralisation. Refer to Peel Mining's ASX Announcement dated 3rd April 2020 "Wirlong Drill Results and Covid-19 update" for further details. Assay results returned significant intercepts in all three drillholes with results including:

• 4.26m @ 2.22% Cu, 7 g/t Ag from 380m and 0.74m @ 14.3% Cu, 66 g/t Ag from 396.2m in WLDD003
• 1.15m @ 7.71% Cu, 30 g/t Ag from 54.45m and 30m @ 1.64% Cu, 8 g/t Ag from 305m (incl. 14m @ 2.63% Cu, 12 g/t Ag) from 320m in WLDD004
• 5.9m @ 3.19% Cu, 13 g/t Ag from 347.1m in WLDD005

Down-hole EM was completed on drillholes WLDD003 and WLDD004 with modelling defining a late- time conductor, with approximate dimensions of 120m x 150m and its geometry consistent with the new structural model. High-grade copper mineralisation at Wirlong Central has been defined from near surface to more than 600m below surface and remains open in all directions. From November 2020 to December 2021, a further 22 RC holes (including 1 with a diamond tail), and 54 diamond holes were drilled for a total of ~5,900m of RC drilling, and ~23,300m of diamond drilling into Wirlong Central.

This announcement has been approved for release by the Peel Mining Limited Board of Directors. For further information on Peel Mining Limited please contact:

Rob Tyson	Alex Cowie
Peel Mining Limited	NWR Communications
Managing Director	Public/Investor Relations
Ph: [phone]	Ph: [phone]
www.peelmining.com.au

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