Peel Mining Limited (ASX:PEX) ('Peel' or the 'Company') is pleased to report the discovery of strong gold mineralisation associated with a new high-grade zone at the southern end of the Southern Nights deposit from the recent resource upgrade drilling program at the 100%-owned Wagga Tank-Southern Nights project, located south of Cobar in western New South Wales.

From August through December 2019, a program of 11,000m of RC/diamond drilling, primarily designed to develop a higher confidence Mineral Resource Estimate, was completed at Wagga TankSouthern Nights. Drilling wastargeted towards the Wagga Tank, Southern Nights and the Corridor Zone (located between Wagga Tank and Southern Nights). A recent review of results indicates adequate drilling has now been completed to commence Mineral Resource Estimation work with an upgraded resource anticipated for March quarter 2020. This resource will form the basis for further concept study work to progress the project towards development.

Recently received assays add further confidence in a new high-grade zone located 500m south of the high-grade Southern Nights Central Zone, in an area with only limited drilling, near the boundary of the existing resource model. Drillholes WTRCDD229 and WTRCDD238 returned mineralisation akin to that in the Southern Nights Central Zone. Encouragingly, mineralisation in WTRCDD238 included some of the highest-grade gold mineralisation intersected at Southern Nights to date. Significantly, this mineralisation remains completely open to the south.

Peel Mining Managing Director Rob Tyson commented: 'The high-grade gold associated with the mineralisation in drillhole WTRCDD238 is a very welcome development for the Southern Nights system, all the more exciting as this area remains completely open to the south. More importantly, a recent review of resource upgrade drilling indicates good infill and extensional coverage has been established, supporting an update of the Mineral Resource Estimate. We look forward to providing an updated resource this quarter.'

Wagga Tank-Southern Nights Resource Drilling

Resource upgrade drilling of the Southern Nights deposit continued until early December with drilling at Wagga Tank completed earlier in the campaign. During the holiday period, a review of drilling results with regards to geological modelling and resource estimation was undertaken indicating that adequate drilling has now been completed to update the Mineral Resource Estimate.

As foreshadowed, recently received assays from drillhole WTRCDD238 confirm a new high-grade zone located 500m south of the high-grade Southern Nights Central Zone in an area with only limited drilling, near the boundary of the existing resource model. Encouragingly, mineralisation in WTRCDD238 included some of the highest-grade gold mineralisation intersected at Southern Nights to date. Significantly, this mineralisation remains completely open to the south.

Drillhole WTRCDD238 intersected several zones of massive sulphide mineralisation, including an approximately 6m interval of very high-grade gold-zinc-lead-silver mineralisation with additional disseminated and massive zinc-lead-copper-silver-gold mineralisation extending further downhole.

Contact:

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Previous Results

Previous results referred to herein have been extracted from previously released ASX announcements. Previous announcements and reports are available to view on www.peelmining.com.au and www.asx.com.au. Additional information regarding Wagga Tank is available in the Company's quarterly reports from September 2016 through to September 2019. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

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