Peel Mining Limited (ASX: PEX) ('Peel' or the 'Company') advises that its 100% owned subsidiary, Peel Far West Pty Ltd has entered into a binding purchase agreement to sell its non-core Koonenberry Project exploration licences to Odin Metals Limited (ASX: ODM) ('Odin').

The Koonenberry Project exploration licences (EL8721, EL8722, EL8790, EL8791 and EL8909) (together, the 'Licences') are located East of Broken Hill, NSW and covers the under-explored Koonenberry Belt.

The consideration payable by Odin Metals Limited to PFW (or its nominee) to acquire a 100% ownership interest in the Licences is: the issue of 50,000,000 fully paid ordinary shares in Odin ('Consideration Shares'), subject to Odin first obtaining shareholder approval for the issue under Listing Rule 7.1 and a 1% net smelter return royalty, payable quarterly from the date on which saleable mineral or metallic product is first produced from the Licences.

Completion of the Proposed Sale is subject to the satisfaction or waiver of a number of conditions, including PFW obtaining approval under s 121 of the Mining Act 1992 (NSW) for the transfer of the Licences, Odin conducting due diligence to its satisfaction by 17 March 2021 and Odin obtaining shareholder approval under Listing Rule 7.1 to issue the Consideration Shares. The Consideration Shares will be escrowed for 12 months from the date that Odin obtains shareholder approval under Listing Rule 7.1.

Odin Metals Limited is an Australian Stock Exchange listed exploration company, with a focus on base metals. Further information in respect of the Proposed Sale is set out in the ASX announcement released by Odin on 18 February 2021.

The sale of the non-core Licences will allow the Company to focus on its 'Hub & Spoke' Development Strategy at its South Cobar Project. The South Cobar Project includes the Mallee Bull, May Day, Southern Nights, Wagga Tank and Wirlong deposits which are all now 100% owned.

Peel Mining Limited Managing Director Rob Tyson commented: 'The Koonenberry Project is a prospective area that was pegged by Peel Far West Pty Ltd in early 2018, however given the Company's focus has been on consolidating and developing its 100% owned South Cobar Project, we have not been able to give the tenements the exploration attention they require. We believe that the team at Odin Metals Limited will give the project new life and we look forward to sharing in their success as a major shareholder.'

Contact:

Rob Tyson

Tel: +61 (8) 9382 3955

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