ASX ANNOUNCEMENT 9 th MAY 2017 NEW MALLEE BULL MET TESTING...

ASX ANNOUNCEMENT 9 th MAY 2017 NEW MALLEE BULL MET TESTING YIELDS EXCELLENT RESULTS; INFILL DRILLING UNDERWAY • Metallurgical drillhole MBDD028 at Mallee Bull’s T1 lens returns best zinc-lead-silver intercept to date: o 13.5m @ 21.1% Zn, 14.1% Pb, 268 g/t Ag from 82m; final assays (incl. Au) pending1 • Preliminary metallurgical testwork on zinc-lead-silver mineralisation yields excellent overall metal recoveries of up to 90.3% Zn, 92.3% Pb, and 82.3% Ag, producing separate Pb and Zn concentrates with grades of 55.6% Pb, 13.1% Zn, 780 g/t Ag and 49.6% Zn, 2.4% Pb, 75 g/t Ag respectively; full elemental analysis (incl. Au) remain pending • Metallurgical testwork remains ongoing with improvements anticipated • Infill drilling program comprising ~27 drillholes for ~4,000m at T1 commences today • Infill drilling and additional metallurgical testwork results to underpin prefeasibility study Peel Mining (ASXEX) (“Peel”, “the Company”) is pleased to advise of excellent preliminary metallurgical (flotation) testwork results from the high-grade, near surface T1 zinc-lead-silver lens at Peel’s 50%-owned Mallee Bull deposit near Cobar in western NSW. These results support Peel’s view that T1 potentially represents an attractive early production opportunity that can be pursued ahead of the development of Mallee Bull’s predominant copper-silver-gold mineralisation. T1 is defined as sphalerite-galena-pyrite rich massive and stringer sulphide mineralisation, varying from 2-20m true thickness, commencing at ~50m below surface, extending to at least 120m below surface, and with a known strike extent of ~60m.