Quarterly Activities/Appendix 5B Cash Flow Report

HIGHLIGHTS FOR SEPTEMBER QUARTER 2021

• Mallee Bull resource upgrade drilling ~75% complete; high-gradecopper and very high- grade zinc-lead-silvermineralisation including:
  o 36m @ 3.55% Cu, 72g/t Ag from 345m in MBDD038

1. 24.7m @ 4.33% Cu, 33g/t Ag from 414.3m in MBDD048 o 57m @ 3.70% Cu, 39g/t Ag from 614m in MBDD052

• 1. 7.85m @ 17.72% Zn, 18.13% Pb, 127g/t Ag, 0.34% Cu, 0.58g/t Au from 371.2m in MBDD046
• Wirlong maiden resource definition drilling ~85% complete; further wide high-gradecopper hits including:
  o 205m @ 1.4% Cu, 3g/t Ag from 434m including:
• 1. • 161m @ 1.53% Cu, 3g/t Ag from 434m including:
     • • 7m @ 3.63% Cu, 7g/t Ag from 458m
       • 9m @ 3.19%Cu, 9g/t Ag from 475m
       • 11m @ 4.32% Cu, 8g/t Ag from 501m
       • 10m @ 4.6% Cu, 7g/t Ag from 584m
     • 16m @ 2.02% Cu, 3g/t Ag from 622m in WLDD040
  2. 22m @ 1.36% Cu, 4g/t Ag from 256m in WLDD024

• 1. 21m @ 1.31% Cu, 6g/t Ag from 336m in WLDD022
• Wirlong maiden mineral resource estimate anticipated for release Dec Qtr.
• Permitting and Pre-development studies continuing to focus on developing the Mallee Bull and Wirlong copper assets as a priority in accordance with the company's 'Copper First'strategy
• Wirlong returns further outstanding metallurgical results from early testwork:
• 1. 95% Cu recovery to 32% Cu concentrate grade from Locked Cycle flotation
• Excellent ore-sorting results at Wirlong and Mallee Bull highlight pre-concentration potential o Wirlong achieved high waste rejection of 35% to 62% with low copper losses of <6%
  o Mallee Bull achieved high waste rejection of 17% to 41% with low copper losses of <8%

PLANS FOR DECEMBER QUARTER 2021

• Continued resource definition drilling at Wirlong targeting growth and upgrade potential
• Continued resource infill drilling at Mallee Bull ahead of an upgrade to the current mineral resource estimate
• Ongoing metallurgical and ore sorting testwork at Mallee Bull and Wirlong
• Continue REF permitting for Wirlong and Mallee Bull declines
• Progress the full concept study of the Company's development strategy across its South Cobar Project (SCP) assets

Peel Mining Limited ACN 119 343 734

Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. E: info@peelmining.com.au www.peelmining.com.au ASX: PEX

PRE-DEVELOPMENT ACTIVITIES

SOUTH COBAR PROJECT DEVELOPMENT STRATEGY

Peel's South Cobar Project (SCP), which includes its Cobar NSW assets of the Mallee Bull, Wirlong, May Day, Southern Nights and Wagga Tank deposits, has a copper focused strategy for development of the project. The SCP project is centred on establishing initial critical mass via high quality mineral resource definition at each of Peel's copper deposits, Mallee Bull and Wirlong, to support a proposed centralised processing plant located at Mallee Bull. The Wirlong deposit is approximately 40km by road from Mallee Bull.

Figure 1. South Cobar Project (SCP) Roadmap & Strategy

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.

WIRLONG METALLURGICAL TESTWORK

Metallurgical testwork has been focused on the Company's Wirlong copper deposit, ahead of the release of a maiden resource later this year. Metallurgical samples from WLDD009, WLDD011 and WLDD013 were selected as potentially representative of the grade and mineralisation styles for the anticipated resource model. The sample composites were continuous, with the two WLDD013 samples divided into a low-grade and high-grade interval to capture the likely grade variations that could exist.

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. Following initial grind establishment and two-staged "cleaner" sequential flotation process, a six-stage repetitive locked cycle test was undertaken on Wirlong samples to simulate operation of a continuous circuit where an intermediate recirculation process of the cleaner stream(s) is performed.

The results from this early-stage testwork were outstanding, with the locked cycle flotation tests yielding 95% copper recoveries to 32% copper concentrate grade. These excellent results were attributed to the purity of the chalcopyrite dominant mineralisation and the absence of any other sulphide minerals.

Peel Mining Limited ACN 119 343 734

Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. E: info@peelmining.com.au www.peelmining.com.au ASX: PEX

Figure 2. Wirlong Sequential Flotation & Locked Cycle Testing Process

Table 1: Wirlong Copper Sequential Flotation Test Results

Preliminary comminution testing (Bond Ball Mill Work Index) work was also conducted and showed that the ore to be hard typically requiring 19.5 to 20 kwh/t.

Table 3: Wirlong Preliminary Comminution Testing Results

ORE SORTING TESTWORK

Following on from the successful ore-sorting testwork conducted in January 2021, on the Mallee Bull and Southern Nights deposits - see ASX Announcement 28th January 2021 "Processing Hub Report & Promising Ore-Sorting Testwork Results", the Company submitted samples from the Wirlong and Mallee Bull deposits to undergo further ore-sorting trials at the TOMRA Sorting facility in Sydney.

Peel Mining Limited ACN 119 343 734

Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. E: info@peelmining.com.au www.peelmining.com.au ASX: PEX

For performance testing all material was crushed and screened at 8 - 19mm & 19 - 50mm with subsequent 8 - 19mm & 19 - 50mm products sorted. Less than 8mm material was considered as unsorted undersize material and would be directly milled in a conceptual full-scale operation.

The primary sorting task was to investigate the sortability of material from three samples - designated A, B & C - and attempt to provide high-recovery sorts for both size fractions. All runs utilized both DE-XRT processing to eject high-density sulphides and the EM sensor to eject any magnetic / conductive sulphides such as pyrrhotite.

Figure 3. Cu values for Wirlong Sample A, B and C

Results generated from the Wirlong testwork were very successful. Significant upgrades were achieved within all runs for the sample A, B and C. The selected samples were composited to represent variability within the deposit and as such, have varied feed grades.

Due to the well liberated nature of the sulphides and excellent classification of material types, all samples consistently produced low-grade waste fractions (less than 0.42% Cu) enabling copper recoveries to remain consistently high (greater than 94% across all runs).

Importantly A and C samples had extremely low waste grade (less than 0.1% Cu) while only Sample B had elevated waste grades, due to a higher feed grade.

Figure 4. Cu values for Mallee Bull Sample A, B and C

Results generated from the Mallee Bull testwork were also very successful. Significant upgrades were achieved within all runs for the Sample A, B and C. The selected samples were composited to represent variability within the deposit and as such, have varied feed grades.

Peel Mining Limited ACN 119 343 734

Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. E: info@peelmining.com.au www.peelmining.com.au ASX: PEX

Once again, due to the well liberated nature of the sulphides and excellent classification of material types, all samples consistently produced low-grade waste fractions (less than 0.30% Cu) enabling copper recoveries to remain consistently high (greater than 92% across all runs).

It is recommended that for best performance, the size range is kept to a maximum 3:1 top to bottom size ratio (e.g. 10-30mm). This will likely achieve an ideal balance between quality and throughput rate. Depending on size distribution of material after crushing, minor changes can be made on site during trials. Considering the effectiveness of the size fraction in this set of testwork, a 9mm minimum and 50mm maximum particle size is recommended.

ENVIRONMENT AND PERMITTING

During the June quarter the Company commissioned R.W Corkery & Co. Pty. Limited to upgrade existing Review of Environmental Factors (REF) for the proposed Mallee Bull exploration decline and associated surface infrastructures. Subsequently, the company is also looking to seek regulatory approval to develop an exploration decline and associated surface infrastructures at Wirlong.

In the September quarter, documents for the development of a proposed exploration decline and associated surface infrastructure at Mallee Bull were submitted to the relevant government agencies and to specialist consultants to address agency requirements in the REF. Further, the Company commissioned a number of environmental specialist consultants to undertake environmental assessments (biodiversity, heritage, air quality, noise and vibration assessment) at Mallee Bull in compliance with regulatory requirements.

Successful underground exploration will allow the company to seek approval for conversion to a full mining operation, with the benefit of established infrastructure. It is anticipated that theregulatory approval for the exploration decline will take between 6 to 9 months after the submission of Review of Environmental Factor (REF) to the NSW Department of Planning and Environment - Resource Regulator.

Next Steps

Following the successful first pass metallurgy and ore-sorting testwork assessment on the Wirlong deposit, the ore-sorted samples have been sent off for first pass metallurgy testwork. Furthermore, Peel has selected additional metallurgy testwork samples at Mallee Bull for further metallurgy testwork to cover various grades of of Copper,Lead and Zinc to optimize the recovery process and conceptual process flowsheet.

Environmental Assessment is expected to be completed during the upcoming quarter for the preparation and submission of Mallee Bull's Review of Environmental Factor (REF). The company is focusing on completing baseline environmental field surveys and maiden mineral resource estimation for the Wirlong deposit to start preparing for the Review of Environmental Factors (REF) permitting process for the proposed Wirlong exploration decline and associated surface infrastructure.

Peel Mining Limited ACN 119 343 734

Unit 1, 34 Kings Park Rd, West Perth, WA 6005. Ph: (08) 9382 3955. E: info@peelmining.com.au www.peelmining.com.au ASX: PEX

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