Discovery and Exploration of the Mallee Bull Deposit

Traditional methodology and state-of-the-art techniques

Bob Brown and Rob Tyson

DisclaimerThis presentation contains an overview of Peel Mining Ltd and its associated entities (Peel)and their respective activities and operations. The contents of this presentation, includingmatters relating to the geology of Peel’s projects, may rely on various assumptions andsubjective interpretations which it is not possible to detail in this presentation and whichhave not been subject to any independent verification.This presentation contains a number of forward-looking statements. Known and unknownrisks and uncertainties, and factors outside of Peel’s control, may cause the actual results,performance and achievements of Peel to differ materially from those expressed or impliedin this presentation.To the maximum extent permitted by law, Peel does not warrant the accuracy, currency orcompleteness of the information in this presentation, nor the future performance of Peel,and will not be responsible for any loss or damage arising from the use of the information.The information contained in this presentation is not a substitute for detailed investigationor analysis of any particular issue. Current and potential investors and shareholders shouldseek independent advice before making any investment decision in regard to Peel or itsactivities.

Presentation Structure…..

Who is Peel Mining?

What is the Mallee Bull Deposit?

Previous exploration over Mallee Bull.

Peel’s discovery, and subsequent exploration

Future activities and strategies

Who is Peel Mining Ltd?

An all-Aussie WA-based junior explorer

ASX listed as PEX since May 2007

Focused on precious, base and specialty metals

Tenement holdings in NSW and WA

Mallee Bull

Stratabound, “Cobar-style” polymetallic deposit

Cu-Zn-Pb-Ag-Au with significant Co, Sb, Bi and Sn

Lithological control dominant, but situated in a significant structural setting of regional-scale faults and folding

Resource estimate 2014: 3.93Mt 2.3% Cu, 32g/t Ag, 0.3g/t Au

Jointly owned by Peel Mining and CBH

Mallee Bull

Four Mile Goldfield

Mallee Bull Deposit Mineralisation

Massive sulphides

Mallee Bull Deposit Mineralisation

Massive sulphides

Stringer zone upper and lower surfaces

~80m

~800m

Previous Exploration

Union Corporation (Australia) 1976-78. First high resolution aeromagnetic survey. Their Anomaly 1 corresponded with Mallee Bull.

Ground magnetic survey and lines of bedrock auger geochem

Shell Company of Australia 1982-83Newmont Holdings Pty Ltd 1985-86Epoch Mining NL 1987-88Renison 1993: sampled gold field, new high resolution aeromag and radiometric survey

Previous Exploration

Previous Exploration

Pasminco Exploration 2001-2003Triako Resources Ltd 2004-2006

Previous explorers showed little interest in Anomaly1.Most explored over goldfield. Apart from aeromagnetic and radiometric survey, no new geophysics since late 1970s.

Peel’s Activities

Tenement acquired in September 2009

East-west Versa tile Transient Electromagnetic (VTEM) survey flown over site

VTEM located a coincident EM and magnetic anomaly, corresponding with Union Corp Anomaly 1

Single line of fixed loop ground EM used to constrain VTEM. Showed a clear, deep response.

Peel’s Activities

Peel’s Activities

TMI data modelled, providing 3D target

G5TMI image

Peel’s Activities

TMI data modelled, providing 3D target

Peel’s Activities

Initial RAB lines across prospect area fail to identify bedrock geochem anomalies

March 2010: 3 RC holes target EM anomaly. Strongly anomalous disseminated mineralisation in all holes. Down hole EM confirmed strong off-hole conductor.

Further four RC holes, one with diamond tail.

Peel’s Activities

All holes to that time had failed to intersect the EM conductor. Hole surveying by gyro showed strong deviation in all holes.

Gyro surveying tool

Drill hole traces showing strong southerly deviation

Peel’s Activities

Subsequent holes have been surveyed by gyro, and directional drilling used on very deep holes. All collars are surveyed by DGPS.

Directional drilling with multiple daughter holes

Peel’s Activities

Initial detailed logging of all holes, 1m magsus and in-field PXRF recording demonstrated consistent geological relationships, a marker bed slightly above mineralisation and a magnetic pyrrhotite envelope above main mineralisation

This provided an early tool for assessing near-miss or proximity to mineralisation during drilling

Peel’s Activities

Outcrop-scale surface mapping. Detailed subsurface geological model with sequence stratigraphy was developed early and updated.

Careful, consistent, detailed core and chip logging records lithologies, stratigraphy, structures, structural data, veining, alteration, sulphides, mineralisation styles, specific gravities, RQD, petrography and assay data. Invaluable for on-going deposit modelling and for overlaying with down hole and surface geophysics and geochemistry

There’s nothing new here – we maximise the data derived from drill holes – it’s worth the time and $$

Peel’s Activities

Exploration has relied heavily on various geophysical techniques to target drilling and constrain the extent of mineralisation.

Techniques used include: IP EM gravity magnetotellurics high resolution magnetics deep ground penetrating radar Orion 3D DC-IP-MT

Peel’s Activities - IP

Early 2D inversion modelling of 100m dipole-dipole IP moderately successful. Regarded as essential on high ranking targets.

Subsequent 3D offset pole-dipole surveys and 3D inversion modelling showed a response subsequently identified as weakly disseminated mineralisation equivalent to up-dip, near-surface Mallee Bull.

Regarded as worth trying if funding available.

Peel’s Activities - EM

Following the initial VTEM and single line of EM, Peel has relied heavily on down hole EM (DHEM) to identify drill targets

DHEM is regarded as essential on deeper (>150m) drilling. Not good for sphalerite.

Airborne EM is regarded favourably for high ranking targets with minimal cover, using max 200m line spacing.

DHEM plates

800m

DHEM plates with massive sulphides

DHEM plates with massive sulphides and

high grade resource shells

Peel’s Activities - EM

Drilling ~300m north of Mallee Bull commenced in 2016 following a review of historic DHEM in holes previously drilled to test magnetic and MT anomalies.

Subsequent drilling has encountered very significant Cu mineralisation at what is now Mallee Bull North. Follow-up DHEM confirms mineralisation which is open along strike and up and down dip

Lesson: reappraisal of earlier, unsuccessful holes (pyrrhotite-only) can produced unexpected positive results!

MB North

T1

Peel’s Activities - EM

Surface EM has included fixed loop EM (FLEM) and moving loop EM (MLEM)

Both techniques have identified a W-dipping conductor equivalent to Mallee Bull to maximum depth of 300m. Both give different strike directions, and are not suitable for resolving the multiple conductors in Mallee Bull. Surface EM is regarded as essential on high ranking targets.

Peel’s Activities - gravity

A ground gravity survey over Mallee Bull revealed a positive anomaly

Gravity anomaly

Mallee Bull mineralisation

envelope

Peel’s Activities - gravity

The anomaly is not coincident with the bulk of mineralisation and lies over the area of weak, near-surface mineralisation

This is similar to other deposits in Cobar region where the anomaly represents the orebody, but is offset

Gravity is regarded as essential on high ranking targets where it is suspected that a density contrast caused by sulphides or Fe chlorite alteration exist.

Drilling of local targets encountered disseminated pyrrhotite

3D inversion modelling produced multiple targets but did not recognise Mallee Bull. Some coincidence with 3D IP results

Peel’s Activities - MT

Magnetotellurics and audio frequency magnetotelluricswere used as a deep penetrating technique to explore to 1km depth at Mallee Bull and adjacent targets.

An essential tool for recognising Mallee Bull analogues regionally using 100m max line spacing

Clear resolution of strong pyrrhotite mineralisation associated with Mallee Bull

Peel’s Activities - magnetics

High resolution aeromagnetic survey – 50m line spacing throughout tenement

Mallee Bull mineralisation envelope

Survey confirmed known significant faults and mapped the oxidation base. Did not identify mineralisation.

Peel’s Activities - deep ground penetrating radar

DGPR survey undertaken in 2015 with aim of better defining structures and the extent/geometry of shallow mineralisation (<200m)

Not regarded favourably by PEX in Cobar Basin as ineffective and too expensive

One large, shallow, high chargeability, low resistivity anomaly occurs in up-dip part of Mallee Bull in an area of limited and very shallow drilling. The T1 anomaly.

Identified previously unrecognised anomalies. One coincident with high grade, deepest mineralisation (600-700m)

Peel’s Activities - Orion 3D DC-IP-MT

DC (direct current), IP (induced polarisation) and MT (magnetotellurics) data acquired in multiple directions

A 45 hole RC drilling program identified significant Zn-Pb-Ag-Au in massive sulphide, disseminated and stringer zones within and about the T1 anomaly

>10% Zn >10% Pb >250 ppm Ag

Peel’s Activities – Orion 3D DC-IP-MT survey

E-W sections

400m N-S, 150m E-W,to 250m thick

T1 massive sphalerite-galena

Peel’s Activities - seismic

Feasibility testing of Mallee Bull host rocks and mineralisation was undertaken in 2014 to determine suitability for a seismic survey

Acoustic impedance tests did not show any discernible variation between samples. The technique also doesn’t work well in near-vertical terrain

Peel’s Activities - other?

He knows how to find revenue streams….

Peel’s Future Activities and Strategies

Calculation of a new resource estimate including the T1 Pb-Zn-Ag and Mallee Bull North Cu mineralisation

Update the Mallee Bull geological and mineralisation model to accommodate new discoveries and integrate it into the regional model.

On-going exploration over Mallee Bull North and further drilling, including resource drilling, of T1. Regional application of the Mallee Bull model, using exploration methodologies developed over that deposit.

Conclusions

Peel’s success at Mallee Bull has resulted from the application of conventional methods using state of the art technology and innovative thinking

Aggressive drilling, using down hole EM, directional drilling and very accurate surveying is used to maximise spatial accuracy and data confidence

Maximum data is extracted from core and chips. Rigorous and consistent detailed logging, collection of structural, magsus, PXRF and lab assay data for all holes.

Conclusions

Early establishment of a detailed surface geological model was gradually extended into the subsurface as a working 3D framework for all other data.

The intelligent use of diverse geophysical techniques resulted in the discovery of MB, and has driven exploration by providing specific drill targets

DHEM and the Orion 3D IP techniques have proven most significant for targeting and discovery.

Thank you for listening

The Peel field team and site office