Peel Mining Limited Annual Report 2013

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FY2013 Annual Report · Peel Mining Limited

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2007

www.peelmining.com.au

Annual Report 2013

Corporate Directory

Directors
Simon Hadfield Chairman
Rob Tyson Managing Director
Graham Hardie Non-Executive Director

Company Secretary
Ryan Woodhouse

Registered Office
1/34 Kings Park Road West PeRth WA 6005
telephone: +61 8 9382 3955
Facsimile: +61 8 9388 1025

Stock Exchange Listing
securities of Peel Mining Limited are listed on the
Australian securities exchange (AsX)
AsX Code: PeX

ACN
119 343 734

Share Registry
Computershare investor Services Pty ltd
Level 2, Reserve Bank Building
45 st Georges tce PeRth WA 6000
telephone: +61 8 9323 2000
Facsimile: +61 8 9323 2033

Solicitors to the Company
Steinepreis Paganin
Lawyers and Consultants
Level 4, the Read Buildings
16 Milligan st PeRth WA 6000

Auditors
BdO Audit (WA) Pty ltd
38 station street suBiACo WA 6008

Website
www.peelmining.com.au

Contents

Chairman’s report
Review of operations
schedule of tenements
Directors’ report
Consolidated statement of profit and loss and other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the consolidated financial statements
Directors’ declaration
Auditor’s independence declaration
independent auditor’s report
Corporate governance statement
shareholder information

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51

Peel mining limited AnnuAl RepoRt 2013

SeCtion 1

Chairman’s Report

Dear Shareholder,

I am happy to report that Peel Mining Limited made significant advances in the 2012/13 year.

The major achievement was the consolidation of the Mallee Bull project near Cobar in New South Wales as a major
copper discovery. More than 10,000 metres of diamond drilling at Mallee Bull returned some outstanding results, including
84 metres @ 4.42% copper, 38 g/t silver and 0.14 g/t gold from 575m and many other very high-grade intersections.
Copper mineralisation now extends from about 150m below surface to more than 700m below surface.

This programme of drilling followed the execution in July 2012 of a farm-in agreement with CBH Resources Limited, a
subsidiary of Tokyo-listed Toho Zinc, under which CBH would spend $8.33 million in three stages to earn 50% of the
Mallee Bull project. In July 2013 CBH elected to proceed with the final stage, which involves spending $3.33 million on
exploration in the current 12-month period to increase its stake in Mallee Bull to 50%.

It is planned that this current round of exploration will test for further extensions of the Mallee Bull deposit and also test
other anomalies and prospects nearby. It is anticipated that a maiden resource estimate for Mallee Bull will be completed
by about the end of the current financial year and that work will have begun to investigate mining scenarios and options.
Cobar-style deposits are typically deep, pipe-like structures, often occurring as a cluster of lenses, similar to the Glencore-
Xstrata-owned, 140-year-old CSA copper mine at Cobar, which is the richest copper mine in Australia.

During the year, Peel also consolidated its ground holdings around the Mallee Bull tenement, with further pegging and
the purchase of new tenure giving the Company one of the largest landholdings in the region with more than 3,000km2.
Your company is now carrying out systematic surveying, mapping and soil sampling over its new 100%-owned tenements
located near Mallee Bull, working up new targets for further investigation in what your board regards as one of Australia’s
best exploration addresses.

We would like to thank our partner CBH/Toho Zinc for their excellent contribution towards achieving our common goal of
success over the past year and look forward to a long and prosperous cooperative partnership.

During the year, Peel raised significant new capital, predominantly through placements to institutional investors, and at
30 June 2013 had cash of approximately $6.2 million. In this respect, Peel’s board welcomes Acorn Capital, Playtpus
Asset Management and the many other retail and professional investors who are reading this report for the first time.

Accordingly, Peel is now in a strong financial position, able to contribute to funding the advancement of Mallee Bull once
CBH reach 50% ownership, as well as the systematic exploration of Peel’s 100%-owned tenure. It is anticipated that in
the coming year, Peel will carefully use shareholder’s capital to explore its Cobar Superbasin Project and also to complete
further exploration at its Apollo Hill gold project in Western Australia, its high-grade Attunga tungsten project in northern
New South Wales and its Rise and Shine gold project in New Zealand.

I would like to thank Peel’s Managing Director Mr Rob Tyson and our excellent technical and practical team for a great
effort during what can only be described as a very successful year. I would also like to thank my fellow non-executive
director Graham Hardie for his staunch support and enthusiasm during the year and also non-executive director Craig
McGown, who retired during the year, for his strong input and help.

The past year has been challenging for many investors and companies involved in the resources sector. I can assure you,
however, that your board does not take your Companies’ successes for granted and intends navigating Peel through
these trying times to a prosperous and robust future.

I look forward to a successful 2013/14 year.

Yours sincerely

Simon Hadfield
CHAIRMAN
30th September 2013

Peel mining limited AnnuAl RepoRt 2013
SeCtion 2

Review of operations

Background
At September 2013, Peel held six key mineral projects comprising granted exploration licences and licences under application.
• Gilgunnia (EL7461 and ML1361) containing the Mallee Bull copper-polymetallic discovery and the May Day polymetallic
deposit (located on a 100 hectare mining lease). The tenure also hosts the historic Gilgunnia and 4-Mile goldfields.
Exploration during the reporting period confirmed Mallee Bull as a major copper discovery; one of the region’s most
important discoveries in recent times. Drilling results returned from Mallee Bull during the year were amongst some
of the highest grade copper intersections reported in the world. Mallee Bull bears many similarities to other major
Cobar-style deposits, including the CSA mine, Australia’s highest grade copper mine. During the year, CBH Resources
Limited, a wholly-owned subsidiary of Tokyo Stock Exchange-listed Toho Zinc, commenced earning up to 50% of the
Gilgunnia project through total staged expenditure of $8.33 million. At June 2013, CBH elected to proceed with the
final stage of earn-in through spending $3.33 million.

• Cobar Superbasin Project (CSP) is a package of tenements (ELs and ELAs) covering more than 3,000km2 of

prospective stratigraphy within the Cobar Superbasin. The tenements are considered prospective for Cobar-style and
VHMS polymetallic deposits. The package includes EL7519, which abuts EL7461 (Gilgunnia) and was purchased from
Oz Minerals Ltd, and EL7403 immediately north of Mallee Bull. EL7519 contains several strong magnetic anomalies
which Peel believes have not been adequately tested. EL7403 contains the Sandy Creek prospect, which Peel
believes is analogous to Mallee Bull at an early stage of exploration, as well as several other historic copper prospects
which have received minimal exploration attention. The package also hosts the Mundoe prospect where drilling by
Peel during the year returned significant base and precious metal values. During the year, Peel commenced a major
programme of geochemical sampling over prospective areas to assist in prioritisation in advance of drill testing.
• Apollo Hill contains two significant gold deposits – Apollo Hill and the Ra Zone – for an inferred resource estimate of

505,000 oz gold. These deposits exhibit the hallmarks of a major mineralised Archean system, showing extensive and
intense hydrothermal alteration and deformation. During the year, substantial metallurgical testwork was completed
examining the characteristics of Apollo Hill ore. This work was undertaken as a pre-cursor to looking at Apollo Hill’s
potential from a heap-leach gold operation perspective.

• Rise and Shine contains multiple workings associated with the Rise and Shine Shear Zone, and the Cromwell Lode in
the nearby Bendigo Goldfield. The Rise and Shine Shear Zone is considered structurally similar to the Hydes-Macraes
Shear Zone that hosts the multi-million ounce Macraes gold mine, while the Cromwell lode has produced about
150,000 oz grading about 10 g/t gold.

• Ruby Silver contains numerous historic silver and gold mines/workings/prospects including the very high grade Ruby
and Tulloch silver mines. Hydrothermal mineralisation associated with quartz/carbonate veins containing narrow
silver-rich (up to 60,000 g/t) massive sulphide pods and shoots.

• Attunga contains numerous historic gold, tungsten, molybdenum and copper mines/workings/prospects. Peel has
outlined a high-grade tungsten-molybdenum resource at the Attunga Tungsten Deposit (1.29 Mt at 0.61% WO3 and
0.05% Mo), and also identified significant gold mineralisation at the Kensington gold prospect, and gold-copper-
molybdenum mineralisation at the Attunga Copper Mine prospect.

Figure 1 – Peel Mining ChieF geologist
MiChael oates and ddh1’s shorty

Peel mining limited AnnuAl RepoRt 2013Review of operations
SeCtion 2

Details on Assets

Gilgunnia/Mallee Bull Project
The Gilgunnia/Mallee Bull project, located about 100km south of Cobar in western NSW, contains the Mallee Bull copper-
polymetallic discovery, the May Day polymetallic deposit and the historic Gilgunnia and 4-Mile goldfields. During the year,
Peel and CBH Resources Limited commenced an agreement, under which CBH Resources has the right to earn up to
50% of the Gilgunnia project through staged expenditure of $8.33 million. Further information is provided below.

Exploration over the reporting period has focused on the Mallee Bull copper-polymetallic discovery where exploration
during the reporting period has confirmed Mallee Bull as a major copper discovery; one of the region’s most important
discoveries in recent times. Mallee Bull was initially recognised in January 2011, when a strong electromagnetic (EM) and
coincident magnetic anomaly was identified in the 4-Mile Goldfield following an airborne EM survey (VTEM). Investigation
commenced immediately culminating in the discovery of multiple zones of strong polymetallic (Au-Ag-Cu-Pb-Zn)
mineralisation including massive sulphides. Further information is provided below.

Mallee Bull Discovery and CBH Resources Farm-in
In late 2010, an airborne electromagnetic geophysical survey (VTEM) was flown over the May Day and
4-Mile/Butchers Dog areas. Butchers Dog is a discrete, relatively large, 20nT magnetic anomaly located to the immediate
north of the historic 4-Mile goldfield. In early 2011, interpretation of the data resulted in the recognition of a coincident late
time conducting anomaly and magnetic high. The Mallee Bull anomaly is proximal to the historic 4-Mile goldfield area, a
series of surface and underground gold workings located about 10km east of the May Day deposit

Peel completed a ground-based geophysical (fixed-loop TEM) survey which confirmed the existence of a moderate-
strong conductor and in March 2010, a programme of three RC drillholes for a total of 663m targeting the geophysical
anomaly was completed. This drilling resulted in the discovery of strongly anomalous polymetallic (gold-silver-copper-
lead-zinc) mineralisation in all three drillholes. Accessory sulphide minerals observed included pyrrhotite, pyrite, and
arsenopyrite.

Systematic exploration followed and involved several rounds of additional drilling (4 more RC drillholes plus a diamond tail)
and several downhole geophysical (DHEM) surveys. This work culminated in discovery drillhole 4MRC007 intersecting
multiple zones of strong copper-dominated polymetallic mineralisation including massive sulphides. In late August 2011,
Peel announced that drillhole 4MRCDD006 intersected a 10m zone of massive sulphide averaging more than 20%
combined lead-zinc plus silver-gold, and a 6.65m semi-massive zone averaging better than 3% copper plus silver-gold.
Mineralisation included chalcopyrite, sphalerite, galena, pyrrhotite, pyrite, and arsenopyrite.

Mallee Bull is interpreted to be positioned in a favourable geological and structural position, sited on the “nose” of an
anticline – a suitable high-stress environment, and occurring in a geological sequence of turbidite and volcaniclastic
sediments interpreted to be age equivalent of the Chesney and Great Cobar Slate Formations found in the immediate
Cobar region. Mineralisation occurs either as massive sulphide or breccia/stringer styles and occurs within a package of
brecciated volcaniclastic and turbidite sediments comprising siltstones and mudstones and is interpreted as occurring as
a shoot-like structure dipping moderately to the west. Drill intercepts in Table 1 are construed as being close to true width.

In September and October 2011, Peel completed further ground-based geophysics including high-resolution magnetics
and gravity surveys, and additional downhole and fixed loop EM surveys. In February 2012, Peel completed a Phase 1
follow-up 5,817m RC/diamond drilling programme designed to test along strike and down dip of previously intersected
mineralisation. Drilling was carried out on an approximate 40m by 40m grid pattern and comprised a series of RC and RC
pre-collar/diamond tail drillholes.

Most drillholes intersected zones of copper-polymetallic mineralisation comprising intervals of massive sulphide and/or
stringer mineralisation, including visible chalcopyrite, sphalerite and galena with accessory sulphide minerals including
pyrrhotite, pyrite, and arsenopyrite. See Peel’s 2012 Annual Report for a full list of assay data.

In May 2012, Peel and CBH Resources Limited reached an agreement, under which CBH Resources has the right to
earn up to 50% of the Gilgunnia project through staged expenditure of $8.33 million. CBH, which is wholly-owned by
Tokyo Stock Exchange-listed Toho Zinc Co. Ltd, is an Australian-based mineral resources company producing zinc, lead
and silver from the Endeavour Mine north of Cobar and the Rasp mine at Broken Hill. CBH brings a wealth of technical
expertise and resources to Mallee Bull, particularly with regards to mining and development.

The key terms of the Farm-in Agreement between Peel and CBH are:
• Agreement covers all of the May Day-Gilgunnia project assets (ML1361 and EL7461) including Mallee Bull copper-

polymetallic discovery.

• Peel to be responsible for exploration activities (operator).

Peel mining limited AnnuAl RepoRt 2013Review of operations
SeCtion 2

• Stage 1 of the Farm-in sees CBH earn a 15% interest in the project by making a payment of $1 million to Peel
(received July 2012) as contribution to past expenditure and by contributing $1.5 million to eligible exploration
expenditure within a 12 month period (completed).

• Stage 2 of the Farm-in sees CBH (at its election) earn an additional 15% interest in the project (30% total interest) by

contributing a further $2.5 million to eligible exploration expenditure within a 12 month period (completed).

• Stage 3 of the Farm-in sees CBH (at its election) earn an additional 20% interest in the project (50% total interest)
by contributing a further $3.33 million to eligible exploration expenditure within a 12 month period (underway as at
September 2013).

• CBH may elect to form a joint venture at the end of any stage and the parties can then elect to contribute on pro-rata

basis or be diluted according to an industry-standard dilution formula.

Phase 2 Exploration
In July 2012, diamond drilling recommenced at Mallee Bull, as part of Stage 1 of CBH Resources’ $8.3m farm-in.
This Phase 2 exploration was completed by November 2012 and comprised 4,822m of diamond drilling targeting
down-dip/plunge mineralisation. Highly encouraging results were returned. The following is summary of the drilling results:

Drillhole MBDD001, drilled at the southern extent of Mallee Bull, returned 5m at 0.85% Cu, 9 g/t Ag, 0.62 g/t Au and
248 g/t Co from 431m and 3m at 1.07% Cu, 30 g/t Ag, 2.09 g/t Au, and 49 g/t Co from 447m.

Drillhole MBDD002 (80m north of MBDD001) intersected a broad zone of mineralisation with a cumulative intercept of
72m at 3.51% CuEq* (2.11% Cu, 41 g/t Ag, 1.13 g/t Au, 384 g/t Co) comprising two discrete zones of mineralisation
– a massive sulphide zone of 41m at 1.71% Cu, 33 g/t Ag, 1.84 g/t Au, 616 g/t Co from 363m and a stringer/breccia
sulphide zone of 31m at 2.65% Cu, 51 g/t Ag, 0.18 g/t Au, 78 g/t Co from 415m.

Drillhole MBDD003 (140m north of MBDD001) returned a cumulative intercept of 58m at 3.15% CuEq* (2.36% Cu,
44 g/t Ag, 0.30 g/t Au, 97 g/t Co) comprising four zones of mineralisation – 10m at 1.12% Cu, 47 g/t Ag, 0.95 g/t Au,
377 g/t Co from 367m; 12m at 1.58% Cu, 39 g/t Ag, 0.14 g/t Au, 39 g/t Co from 386m; 14m at 1.92% Cu, 56 g/t Ag,
0.30 g/t Au, 37 g/t Co from 409m; and 22m at 3.62% Cu, 38 g/t Ag, 0.09 g/t Au, 40 g/t Co from 444m.

Drillhole MBDD004 (40m north of MBDD001) returned a thick zone of massive and stringer sulphide mineralisation
comprising 42m at 1.99% CuEq* (1.01% Cu, 23 g/t Ag, 0.91 g/t Au, 250 g/t Co) from 356m.

Drillhole MBDD005 (40m north of MDD001) was designed to test down dip of MBDD004 however, swung substantially
off-section to the south. Several moderate zones of mineralisation were returned comprising – 5m at 1.75% Cu, 31 g/t Ag,
0.21 g/t Au, 110 g/t Co from 414m and 5m at 1.44% Cu, 68 g/t Ag, 0.34 g/t Au, 46 g/t Co from 421m.

Drillhole MBDD006 (100m north of MBDD001) returned a cumulative intercept of 51m at 2.19% CuEq* (1.45% Cu,
26 g/t Ag, 0.54 g/t Au, 162 g/t Co) comprising three zones of mineralisation – 7m at 1.09% Cu, 29 g/t Ag, 1.74 g/t Au,
520 g/t Co from 396m; 13m at 1.91% Cu, 31 g/t Ag, 0.12 g/t Au, 44 g/t Co from 405m; and 31m at 1.90% 1.61% Cu,
13 g/t Ag, 0.17 g/t Au, 52 g/t Co from 444m.

Drillhole MBDD007 (60m north of MBDD001) designed for downhole EM geophysics and as a platform for wedge drilling
intersected strong alteration from ~580m below surface with moderate mineralisation returned – 4 m at 26 g/t Ag, 0.11 g/t
Au, 0.98% Pb, 1.58% Zn from 584m; 4m at 75 g/t Ag, 0.91 g/t Au, 1.82% Pb from 617m; and 4m at 1.55% Cu, 10 g/t Ag,
0.14 g/t Au, 132 g/t Co from 647m.

Drillhole MBDD008 (140m north of MBDD001), designed to test down dip from MBDD003, intersected 35m of semi-
massive-to-massive pyrite-pyrrhotite-galena-sphalerite-chalcopyrite sulphide mineralisation from 374m followed by
several zones of variable pyrrhotite-chalcopyrite stringer/breccia mineralisation from 442m. Significant assays returned
included 35m at 3.42% Pb, 1.51% Zn, 0.65% Cu, 54 g/t Ag, 1.16 g/t Au, 318 g/t Co from 374m; 8m at 1.23% Cu,
12 g/t Ag, 0.09 g/t Au) from 461m; 21m at 1.48% Cu, 24 g/t Ag, 0.25 g/t Au) from 479m; and 4m at 3.93 g/t Au from
504m.

Drillhole MBDD009 (80m north of MBDD002) was designed to test a very strong conductor centred at ~500m below
surface as defined by downhole EM. MBDD009 intersected a broad zone of variable stringer/breccia chalcopyrite-
pyrrhotite sulphide mineralisation from 533m that assayed 69m at 4.01% CuEq* (3.48% Cu, 34 g/t Ag, 0.14 g/t
Au) from 533m including a high grade zone of 18m @ 10.69% Cu Eq* (9.35% Cu, 83 g/t Ag, 0.43 g/t Au) from 542m.
This intercept is the most significant to date and, coupled with the results from other Phase 2 drilling, indicates that
mineralisation at Mallee Bull is possibly increasing in width and tenor at deeper levels.

The true width of mineralisation intersected in Phase 2 drilling is estimated to be about 55-65% of the downhole intervals,
except for MBDD007 and MBDD009 where the true-width is estimated to be about 40-45% of the downhole intervals.

Peel mining limited AnnuAl RepoRt 2013Review of operations
SeCtion 2

See Table 1 for a summary of Phase 2 drilling results.

TAble 1 – PHASe 2 MAllee bull SignificAnT Drill ASSAy reSulTS

Hole iD

norTHing eASTing

Azi

DiP

finAl
DePTH
(M)

froM
(M)

To
(M)

WiDTH
(M)

cu (%)

Ag
(g/T)

Au
(g/T)

co
(g/T)

Pb
(%)

zn
(%)

MBDD001

6413290

415162

090

-81

489.9

6413370

415167

090

-77

468.8

MBDD002

including

and

including

and

MBDD003

6413430

415172

090

-76

507.8

including

MBDD004

including

MBDD005

6413330

415160

090

-76

453.9

6413330

415158

090

-81

474.8

MBDD006

6413394

415165

090

-83

486.9

MBDD007

6413350

415162

090

-90

771.8

MBDD008

including

6413430

415170

090

-83

525.8

MBDD009

6413370

415163

090

-87

642.8

including

431

447

363

381

391

415

418

433

367

386

409

444

453

356

384

414

421

396

405

444

584

617

647

374

394

461

479

504

457

499

533

542

547

436

450

404

383

404

446

430

439

377

398

423

466

464

398

419

426

403

418

475

588

621

651

409

469

500

508

463

503

602

560

551

0.85

1.07

1.71

2.31

3.11

2.65

4.06

3.35

1.12

1.58

1.92

3.62

5.40

1.01

2.53

1.75

1.44

1.09

1.91

1.61

0.03

0.07

1.55

0.65

0.78

1.23

1.48

0.07

0.06

0.19

3.48

9.35

100

17.99

143

0.62

2.09

1.84

2.09

1.59

0.18

0.21

0.38

0.95

0.14

0.30

0.09

0.11

0.91

0.38

0.21

0.34

1.74

0.12

0.17

0.11

0.91

0.14

1.16

0.74

0.09

0.25

3.93

0.13

0.67

0.14

0.43

0.39

248

616

605

829

377

250

265

110

520

132

318

289

121

0.09

0.46

0.15

0.18

0.74

0.97

1.41

1.51

0.77

0.10

0.40

0.49

0.20

0.16

0.10

0.11

0.19

0.25

0.08

0.98

1.82

0.07

3.42

7.27

0.18

0.01

0.02

1.56

0.46

0.23

0.30

0.23

0.05

0.37

0.06

0.08

0.52

0.65

0.93

1.11

0.50

0.04

0.06

0.10

0.08

0.10

0.42

0.10

0.15

0.03

1.58

0.02

0.03

1.51

3.01

0.05

0.01

3.10

0.19

0.05

0.07

0.10

Phase 3 Drilling
In February 2013, Phase 3 Exploration (Stage 2 of the Mallee Bull farm-in agreement) commenced. This drilling was
completed by June 2013 and predominantly targeted down-dip/plunge mineralisation. Further strong results were
returned. The following is summary of the drilling results:

Drillhole MBDD009W1 was designed to test a large gap in drillhole spacing, intersecting ~60m downdip from drillhole
MBDD002. MBDD009W1 confirms the continuation of high-grade copper mineralisation between MBDD002 and
MBDD009. Important mineralisation occurred as a broad zone of stringer/breccia chalcopyrite-pyrrhotite sulphide
mineralisation returning 53m @ 4.77% CuEq* (4.08% Cu, 42 g/t Ag, 0.22 g/t Au) from 470m. Within the stringer/
breccia zone is an interval of intense chalcopyrite-rich sulphide mineralisation that returned 12m @ 9.13% Cu, 86 g/t Ag,
0.33 g/t Au (10.46% Cu Eq*) from 472. The true width of the mineralised zones in drillhole MBDD009W1 is interpreted to
be ~50% of the downhole intercepts.

Drillhole MBDD009W2 was designed to test a strong DHEM response estimated to be centred ~50m to the north, and
about 570m downhole of drillhole MBDD009. Drillhole MBDD009W2 intersected several zones of mineralisation: a 3m
zone of semi-massive pyrite-pyrrhotite-dominant sulphide mineralisation returning 0.08% Cu, 18 g/t Ag, 0.85 g/t Au, 257
ppm Co from 484m; a 24m zone of massive pyrite-pyrrhotite-dominant sulphide mineralisation averaging 0.39% Cu,
33 g/t Ag, 1.39 g/t Au, and 310 g/t Co from 494m; and a 21m zone of variable chalcopyrite-pyrrhotite stringer/breccia
mineralisation returning 2.22% Cu, 40 g/t Ag, 0.11 g/t Au from 706m. The true width of the above mineralised zone is
estimated to be ~40% of the downhole width.

Peel mining limited AnnuAl RepoRt 2013Review of operations
SeCtion 2

Drillhole MBDD009W2W1, designed to test a strong DHEM conductor, intersected several zones of important
mineralisation: a zone of pyrite-pyrrhotite-rich massive sulphides returning 11m @ 0.55% Cu, 1.62 g/t Au,
24 g/t Ag and 124 g/t Co from 496m; a broad zone of variable stringer/breccia sulphide mineralisation returning
84m @ 4.42% Cu, 38 g/t Ag, 0.14 g/t Au from 575m including a zone of intense chalcopyrite-dominant
mineralisation returning 26m @ 11.39% Cu, 80 g/t Ag, 0.20 g/t Au from 626m, and a zone of quartz-healed
breccia with lesser chalcopyrite-dominant sulphide mineralisation from 666m which included 6m @ 0.7% Cu,
15 g/t Ag, 0.13 g/t Au from 669m. The zone of mineralisation at 575m represents the highest grade mineralisation
intercepted at Mallee Bull to date, and is positioned ~60m down dip of mineralisation in MBDD009. The true width of the
intercepts is estimated at about 35-40% of the downhole intercept.

Drillhole MBDD009W3 was designed to test for a southerly extension to mineralisation at ~500m below surface and
intersected a 10m zone of strong mineralisation: 10m @ 4.54% Cu, 31 g/t Ag, 0.13 g/t Au from 502m, with the true
width of the mineralised zone estimated to be ~6m.

Drillholes MBDD011 and MBDD011W1 were drilled from a footwall position and were designed to test a broad strong
chargeability anomaly located to the east of Mallee Bull and to test for mineralisation at deeper levels within Mallee Bull.
Drillhole MBDD011 intersected a highly altered and sheared zone interpreted as a possible “feeder” structure. Peel is
encouraged by the presence of such a zone and notes that Cobar-style deposits typically “pinch and swell” and generally
occur as clustered and stacked bodies.

A 9 hole RC drilling programme for a total 1,621m was completed within EL7461 in April 2013, testing several newly
discovered IP anomalies as well as several areas of anomalous geochemistry. Several drillholes returned anomalous
geochemistry however results were generally not significant. See Table 2 for a summary of Phase 3 drilling results.

Figure 2 – Peel Mining’s alister Janetzki geoCheMiCal saMPling

Peel mining limited AnnuAl RepoRt 2013Review of operations
SeCtion 2

Figure 3 – Mallee Bull seCtion 6413390n

Peel mining limited AnnuAl RepoRt 2013Review of operations
SeCtion 2

Drilling completed to date indicates that high-grade copper-dominant polymetallic sulphide mineralisation at Mallee Bull
has a strike length of ~120m, comes to within 150m of surface, and now extends to at least 700m below surface and is
open in multiple directions. At the time of writing, Phase 4 exploration (Stage 3 of the Mallee Bull farm-in agreement) was
underway with an initial focus on testing for potential additional mineralised bodies in close proximity to Mallee Bull.

TAble 2 – PHASe 3 MAllee bull SignificAnT Drill ASSAy reSulTS

Hole iD

norTHing eASTing

Azi DiP

finAl
DePTH
(M)

froM
(M)

To
(M)

WiDTH
(M)

cu
(%)

Ag
(g/T)

Au
(g/T)

co
(g/T)

Pb
(%)

zn
(%)

MBDD009W1

6413369

415162

095

-87

567.8

including

MBDD009W2

6413369

415162

095

-87

852.7

MBDD009W2W1

6413369

415162

095

-87

760.7

including

MBDD009W3

6413369

415162

095

-87

610.1

MBDD010

6413626

415115

151

-77

735.8

MBBDD010W1

MBDD011

MBDD011W1

MBRC-LOO

MBRC001

MBRC002

MBRC003

MBRCDD004

GRC001

GRC002

GRC003

GRC004

GRC005

GRC006

GRC007

GRC008

GRC009

MBWRC001

MBWRC002

6413626

6413522

6412980

6413248

6412444

6413038

6413525

6414819

6414921

6414939

6415029

6415102

6415022

6416090

6415021

6414940

6411441

6410979

415115

415815

415335

415495

415281

416172

415401

416801

416832

415027

415088

415074

415090

415149

415050

151

244

415175

270

418442

419544

-77

-65

-90

-60

-90

736.3

1195.8

1192.8

109

120

378.8

250

148

100

470

472

484

494

706

496

575

626

669

456

502

512

634

709

996

523

484

487

518

727

507

659

652

675

461

512

515

666

714

1000

4.08

9.13

0.08

0.39

2.22

0.55

4.42

11.39

0.7

4.53

0.11

3.62

1.12

0.43

0.22

0.34

0.85

1.39

0.11

1.62

0.14

0.20

0.13

0.11

0.13

0.21

0.13

257

310

0.30

0.54

0.35

0.32

0.05

0.31

0.22

124

0.29

0.23

0.1

0.11

0.8

1.60

2.21

5.42

Mineralogy/Metallurgy
In late 2013, Peel received the results of a preliminary mineralogical investigation utilising QEMSCAN. Initial
observations indicate that the gold and silver present in the massive sulphides is primarily occurring as an electrum
alloy while the copper present in the stringer/breccia zone is primarily occurring as chalcopyrite. The liberation
characteristics for copper present in the stringer zone are considered encouraging with ~80% of the contained
copper free or liberated at a grind size 125 microns (P100). At the time of writing, initial metallurgical testwork trials
were nearing completion.

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Butcher’s Dog Magnetic Anomaly
In November 2011, 3D inversion modelling was performed on the total magnetic intensity (TMI) data collected
during the VTEM survey of the 4-Mile area. As a result, a 3D volume of the anomalous susceptibility was calculated.
Interpretation of the data shows a large magnetic feature located about 1km north of Mallee Bull. This feature,
named the Butcher’s Dog prospect, is assumed to be positioned under the axial plane of the 4-Mile anticline, with
its core (susceptibility 4 x 10-3 SI) interpreted to be 500-1000m below surface. The top of the magnetic source is
interpreted to be between 300-500m below surface.

In February 2012, Peel completed one deep drillhole targeting Butcher’s Dog. Drillhole BDRCDD001 was drilled as a
vertical hole to a depth of 680m. No satisfactory explanation for the magnetic anomaly was observed from geological
logging or downhole geophysics. In late 2013, DHEM survey data collected from Butchers Dog drill hole BDRCDD001
was re-appraised, and a moderate-to strong offhole anomaly identified. The newly identified DHEM anomaly is thought
to be located within 200m of the bottom of hole and correlates well with the trend of magnetic anomalism.

Peel believes that there is good potential for the Butchers Dog anomaly to be associated with mineralisation akin to that
at Mallee Bull; mineralisation associated with Mallee Bull produces both magnetic and electromagnetic anomalism and
exploration efforts at Mallee Bull have been successfully guided by DHEM surveys. At the time of writing, the identified
conductor had had its geometry further refined with additional DHEM surveying and a single deep diamond drillhole had
been completed. Results were pending.

Figure 4 – Mallee Bull/ButCher’s dog 3d inversion oF tMi with dheM ConduCtor Plates

Wirchilleba Station Purchase
In April 2012, Peel secured a 12-month option-to-purchase agreement over portions of Wirchilleba Station, which includes
the immediate footprint of the Mallee Bull copper-polymetallic discovery. In early 2013, Peel exercised the option to
purchase the land comprised of Western Lands Lease 3456 (F/I 1339/762952) for a purchase price of $800,000. Peel
had paid an option fee of $80,000 which was used as a deposit on the purchase, and subsequent to the quarter’s

Peel mining limited AnnuAl RepoRt 2013Review of operations
SeCtion 2

end settlement of the sale was concluded. This purchase will provide Peel with security of tenure and land access as
exploration at Mallee Bull progresses.

Information regarding drilling/assaying data
1. Drilling was completed as RC percussion or HQ or NQ diamond core.
2. Sample recoveries were considered adequate for all samples.
3. Drillcore has been logged in detail based on lithology, mineralisation, and alteration.
4. Samples for analysis were collected by splitting of RC samples or by sawing core in half.
5. Samples were submitted as 1m or 4m composites for RC sample splits or as 1m or 4m composite half-core intervals.
6. Samples were analysed at ALS Chemex utilising methods: Au‐AA25 for Au (fire assay); ME‐ICP41, ME-ICP61 or ME

MS61 for multi-element including Ag, Cu, Pb, Zn; Ag-OG46 for >100 g/t Ag; Cu-OG46 for >1% Cu; Pb-OG46 for >1%
Pb; and Zn-OG46 for >1% Zn.

7. Drillhole collars were surveyed by DGPS.
8. Downhole gyroscopic surveys were run continuously.

*Copper Equivalent Calculation Explanation:
• The copper equivalent (CuEq) calculation represents the total metal value for each metal, multiplied by the conversion factor,
summed and expressed in equivalent copper percentage. These results are exploration results only and no allowance is
made for recovery losses that may occur should mining eventually result, nor metallurgical flowsheet considerations.

• The copper equivalent calculation is intended as an indicative value only. No metallurgical testwork has been

completed to date however it is the Company’s opinion that all the elements included in the copper equivalent
calculation have a reasonable potential to be recovered.

• Copper equivalent conversion factors and long-term price assumptions used follow:

Copper Equivalent Formula (CuEq) = (Cu (ppm) x 0.0075 + Ag (ppm) x 0.96 + Au (ppm) x 50.00 + Co (ppm) x 0.025)/0.0075;

• Price Assumptions – Cu (US$7,500/t), Ag (US$30/oz), Au (US$1,500/oz), Co (US$25,000/t).
• Pb and Zn have not been used in copper equivalent calculation.

May Day
May Day was discovered in 1898 and was initially developed as an underground copper-lead-silver mine. Exploration in
the 1970s identified high grade gold-base metal mineralisation to a depth of about 250m below surface. Exploration in
the late 1980s defined a shallow gold resource, which eventually lead to the development in 1996 of a small-scale mining
operation comprising an open pit with a heap leach gold circuit.

In the period since acquisition in late 2009 through June 2011, Peel completed multiple phases of exploration involving:
an initial due diligence site visit inclusive of geological mapping and rock chip sampling; geophysical surveys comprising
gravity and Induced Polarisation; remodeling of airborne magnetic data; laser scanning and survey pick-up of the open pit
and historic drillholes; an RC drilling programme; early-warning metallurgical testwork; and a helicopter-borne geophysical
survey (VTEM).

Several geophysical surveys were also completed in advance of drilling and to provide additional geological information
about the local geological environment. An approximately 12km2 gravity survey and a 15 line kilometre Induced
Polarisation (IP) survey was undertaken over the immediate May Day mine environment and 2 kilometres along strike
to the northeast. This data, along with regional airborne magnetic data shows that a moderate-to-strong chargeable IP
anomaly and a deep (greater than 400m depth) magnetic anomaly is associated with the May Day deposit.

In May 2010, Peel completed a programme of 10 RC drillholes for 1,877m of drilling at the May Day gold-base metal deposit,
located about 100km south of Cobar in central-western New South Wales. This drilling programme was primarily designed to
test for down-dip extensions to known mineralisation. Better drill results included the following intercepts:
• 16m at 1.78 g/t Au, 42 g/t Ag, 0.25% Cu, 0.95% Pb, 1.33% Zn from 159m in MDRC002
• 24m at 0.96 g/t Au, 20 g/t Ag, 0.07% Cu, 0.70% Pb, 0.85% Zn from 120m in MDRC004
• 27m at 2.12 g/t Au, 27 g/t Ag, 0.11% Cu, 0.43% Pb, 0.75% Zn from 120m in MDRC005
• 3m at 1.33 g/t Au, 98 g/t Ag, 0.92% Cu, 7.29% Pb, 8.19% Zn from 140m in MDRC006
• 10m at 2.15 g/t Au, 28 g/t Ag, 0.06% Cu, 0.34% Pb, 0.39% Zn from 213m in MDRC010

Results returned confirm down dip extensions and that mineralisation is shear-related and occurs as a sub-vertical
lense/shoot. Mineralisation occurs at or near the interbedded contact of a fine-grained sedimentary hangingwall and
a porphyritic volcanic footwall, is associated with silica/talc alteration, and includes disseminated through to massive
sphalerite-galena-pyrite-pyrrhotite-chalcopyrite sulphides. The true width is estimated to be about 65% of the reported
intercepted widths.

Peel mining limited AnnuAl RepoRt 2013Review of operations
SeCtion 2

Drill results support the theory that the May Day deposit possibly represents remobilised mineralisation or “leakage” from
a deeper mineralised system. Interpretation of magnetic data indicates the source of a magnetic high anomaly to be
located at greater than 400m below surface.

Early-warning metallurgical testwork on a single sample of May Day mineralisation to determine potential extraction
characteristics returned excellent results, key findings of this testwork being:
• encouraging grind characteristics were observed;
• gravity gold extraction yielded 45% of gold reporting to 0.6% mass;
•
• 24 hour cyanidation yielded 71% of gold reporting to 2% of mass.

flotation extraction yielded 77% of gold, 88% of zinc, 52% of lead, and 46% of copper reporting to 13% mass; and

Late in 2010, Peel completed a helicopter-borne geophysical survey (VTEM) over the May Day area. No anomalies were
detected.

Developments at the nearby Mallee Bull prospect add significant value to the Gilgunnia project and support the
prospectivity of the May Day deposit. Further work at May Day will involve a deep drilling programme targeting the
magnetic anomaly at depth.

Cobar Superbasin Project (CSP)
During the year, Peel considerably strengthened its strategic position within the Cobar Superbasin by pegging and
acquiring additional highly-prospective tenure. In total, Peel now 100%-controls an area in excess of 3,000km2, one of the
largest landholdings in the Cobar Superbasin.

Figure 5 – Peel Mining CoBar suPerBasin tenure

During 2013, Peel commenced a programme of systematic exploration of its 100%-owned tenure. This work involves the
identification and work-up of targets through desktop review, geochemical and geophysical surveys, geological mapping
and drill testing, where warranted.

Peel mining limited AnnuAl RepoRt 2013Review of operations
SeCtion 2

Early in the year, Peel completed a 350 line kilometre “HeliTEM” airborne EM survey covering a portion of EL7519
“Gilgunnia South”, part of the ground acquired from Oz Exploration Pty Ltd, a subsidiary of Oz Minerals Ltd (ASX: OZL).
Gilgunnia South contains several very strong magnetic anomalies (MD1 and MD3) that remain unexplained. Several
anomalies were identified and follow-up exploration involving geochemical sampling was underway at the time of
reporting.

Figure 6 – gilgunnia south geoCheM Points over tMi

In the December quarter 2013, Peel reported that EL7976 “Mundoe” had been granted. Mundoe is located about 90km
west of Condobolin in NSW, or about 50km south of Mallee Bull.

EL7976 is centred on the Mundoe prospect, which is defined by a 2km long multi-element geochemical anomaly,
coincident geophysical anomalies, and encouraging historic drill results. Mundoe was first identified in the 1970s as a
“bulls-eye” magnetic anomaly. Follow-up exploration in early 1980s included geological mapping, RAB drilling, IP and
gravity geophysical surveys, and a single diamond drillhole where a best result of 3m @ 2.90% Zn, 0.87% Pb, 30 g/t Ag
and 0.4 g/t Au from 88m was returned.

In December 2012, a 9-hole for 1,753m RC drilling programme at Mundoe was completed with encouraging results
returned over 600m strike indicating that the sediment-hosted mineralisation is most likely easterly-dipping, meaning that
downhole widths are close to true widths. Peel is highly encouraged by the results to date and further work is planned.
See Table 3 for a summary of drilling results.

Peel mining limited AnnuAl RepoRt 2013Review of operations
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TAble 3 – MunDoe SignificAnT Drill ASSAy reSulTS

Hole iD

norTHing

eASTing

Azi

DiP

DePTH
(M)

froM
(M)

To
(M)

WiDTH
(M)

cu (%)

Ag
(g/T)

Au
(g/T)

MURC1

6361563

420900

265

-62

151

MURC2

6361565

420960

265

-62

202

including

MURC3

including

MURC4

MURC5

including

MURC6

MURC7

including

MURC8

MURC9

6361957

420760

265

-62

140

6361960

420800

270

-62

292

6361763

420800

265

-65

274

6362242

6361472

420400

420960

6361467

6362058

420920

420720

260

265

-65

196

202

148

109

130

124

140

106

112

111

132

107

148

145

119

118

281

283

129

153

163

111

101

152

132

176

171

112

103

0.14

0.36

0.29

0.68

0.73

1.24

0.29

0.4

2.07

0.31

0.57

Pb
(%)

0.55

zn
(%)

0.11

0.23

0.22

0.77

0.15

0.17

1.27

0.22

0.59

0.08

0.25

0.06

1.27

0.3

0.09

0.15

0.18

0.67

0.33

0.86

0.12

180

0.25

0.1

0.39

0.13

0.22

0.12

Figure 7 – Mundoe seCtion 6361760n

Peel mining limited AnnuAl RepoRt 2013Review of operations
SeCtion 2

In late 2013, Peel reached agreement with private party Weddarla Pty Ltd to purchase strategic exploration licence
EL7403 “Sandy Creek”, located about 20km north of the Mallee Bull copper-polymetallic deposit, and about 80km south
of Cobar NSW. A review of exploration data related to the namesake Sandy Creek prospect was completed and there
are strong similarities to results yielded from early-stage exploration at Mallee Bull, including a similar geological and
structural environment along with coincident magnetic and electromagnetic anomalies. Historically, a strong downhole
electromagnetic (DHEM) anomaly has also been identified at the Sandy Creek prospect, as well as strong geochemical
anomalism supported by high-grade polymetallic historic drilling results.

Subsequent to end of the reporting period, the acquisition of Sandy Creek was finalised. Initial exploration of Sandy Creek
by Peel utilising a high-powered DHEM survey confirmed the presence of a strong offhole anomaly that remained practically
untested by previous drilling. Peel has recently completed a diamond drillhole testing this anomaly and results are pending.

Elsewhere in the Cobar Superbasin Project, Peel has identified multiple new prospects for follow-up investigation. At the
time of reporting exploration of these targets is ongoing.

Apollo Hill
The Apollo Hill gold project, located about 50km southeast of Leonora, WA, contains two significant gold deposits; Apollo
Hill and the Ra Zone. In June 2010, entered into an option agreement with Hampton Hill Mining NL (ASX:HHM) to acquire
the entire issued capital of Apollo Mining Pty Ltd, the 100%-owner of the Apollo Hill gold project in the North Eastern
Goldfields of WA. In November 2010, Peel elected to exercise its option to acquire Apollo Hill. The key terms of the sale
agreement saw Peel issue 11 million fully paid ordinary shares to HHM in consideration for Apollo Hill, and HHM granted a
5% gross overriding royalty on Apollo Hill gold production exceeding 1 million ounces.

The Apollo Hill gold project exhibits the hallmarks of a major mineralised system, showing extensive and intense
hydrothermal alteration and deformation. Two significant gold deposits, Apollo Hill and the Ra deposit, have been
identified to date and remain open in several
directions.

Fimiston Mining Limited discovered Apollo
Hill in December 1986 during a drill program
aimed at finding the source of abundant
eluvial gold at the base of a prominent hill
in the area. Active drilling since then has
outlined extensive gold mineralisation and
alteration over a one kilometre strike length,
which is up to 250m wide and dips 45-60
degrees to the east.

Multiple gold mineralisation events are
interpreted to have occurred at Apollo Hill
during a complex deformational history.
Gold mineralisation is accompanied by
quartz veins and carbonate-pyrite alteration
associated with a mafic-felsic contact.

The Apollo Hill gold project straddles a
major shear zone, known as the Apollo
shear zone, which is a component of the
Keith Kilkenny Fault system. This shear zone
is largely concealed beneath transported
overburden, often associated with the Lake
Raeside drainage system, and previous
surface geochemical sampling and shallow
RAB drilling has consequently been of limited
effectiveness. Deeper drilling by previous
explorers has largely focussed on the only
locality where this shear zone is exposed
at surface, Apollo Hill itself, and also on a
nearby parallel trend termed the Western
trend (Ra deposit).

Peel mining limited AnnuAl RepoRt 2013Review of operations
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Peel undertook various due diligence work programs on Apollo Hill during the option period. As part of this, in September
2010, Peel undertook an Aboriginal Heritage and work program clearance survey utilising the services of consulting
anthropologist Daniel de Gand and Wongatha Aboriginal Heritage Consultants, the outcome, of which was positive with
large areas of the project area cleared for future exploration access.

Also as part of due diligence, Peel undertook preliminary metallurgical testwork on two representative samples of Apollo
Hill mineralisation to determine potential extraction characteristics. This testwork showed excellent overall gold extraction
kinetics with 98.68% and 98.76% total gold extracted for Sample 1 (15-16m – AD002) and Sample 2 (154-155m – AD002),
respectively. Additionally, both samples contained a significant amount of gravity recoverable gold, greater than 80%,
with relatively low base metal levels and organic carbon levels below detectable level indicating very little chance of preg-
robbing occurring during cyanidation.

In December 2010, Peel reported a maiden resource estimate for the Apollo Hill and Ra deposits. The highlights of this
work were:
• Maiden resource at Apollo Hill and Ra deposits estimated at 11.1 Mt at 1.0 g/t Au for 341,000 ounces of gold (using

0.5 g/t gold cut off).

• Maximum depth of the resource estimate was 150m below surface.
• Apollo Hill deposit extends to surface and remains unexploited.
• Mineralisation at Apollo Hill and Ra deposits remains open at depth and along strike to the south of both deposits.
• Potential increase in resources with minimal further drilling.

In line with the potential to increase resources at Apollo Hill through minimal further drilling, in April 2011, Peel commenced
a programme of infill and extensional drilling. By June 2011, Peel had completed an approximately 3,600 metre RC and
diamond drilling programme that was designed to increase sample density to allow for the extension of the Apollo Hill
resource model; and to provide representative gold-mineralised material for additional metallurgical testwork.

The RC drilling component comprised 21 drillholes for 3,276 metres of drilling. This drilling was designed primarily to
enable the extension of the existing Apollo Hill resource model a further 200 metres (grid) south, and to a minimum depth
of about 150 metres below surface. The diamond drilling component comprised 2 drillholes for 310 metres of HQ diamond
core drilling. This drilling was designed primarily to provide sufficient material for further metallurgical testwork.

In September 2011, Peel reported a 48 per cent increase in the resource estimate for Apollo Hill, to 505,000 ounces
contained gold. The updated resource estimate – which was estimated by Hellman and Schofield Pty Ltd (H&S) and
incorporated the results of drilling undertaken by Peel – totals 17.2 million tonnes at 0.9 g/t Au for 505,000oz of gold (using
a 0.5 g/t gold cut-off) across the Apollo Hill and Ra deposits.

The updated resource estimate highlights the potential of the Apollo Hill Project for future economic extraction. The
updated resource estimate at a range of gold cut-off grades is shown below:

cuT off

APollo Hill

ToTAl

TAble 2 – SePTeMber 2011 APollo Hill inferreD reSource eSTiMATeS To 180 MeTreS DePTH (190Mrl)

Au g/T

koz

Au g/T

koz

0.2

0.4

0.5

0.6

0.8

1.0

1.2

2.4

1.5

1.2

1.0

0.7

0.5

0.4

0.7

1.0

1.1

1.2

1.4

1.6

1.8

0.5

0.8

0.9

1.0

1.2

1.4

1.6

691

566

463

386

270

180

103

Note: The significant figures in above reflect the precision of estimates and include rounding errors.

45.4

23.5

17.2

13.0

7.7

4.5

2.4

Au g/T

koz

0.5

0.8

0.9

1.0

1.2

1.4

1.6

745

614

505

424

302

206

126

Peel Mining believes that the shallow and extensive nature of mineralisation at the Apollo Hill gold project suggests that
the project has reasonable prospects for eventual economic extraction.

Metallurgical Testwork
Metallurgical testwork on Apollo Hill mineralisation was undertaken during financial year 2012. Results confirm that Apollo
Hill gold mineralisation is readily amenable to gravity gold and cyanide leaching recovery techniques. The key outcomes
from this testwork to date are:

Head Assay Characteristics
• Assays indicate clean, coarse-grained gold mineralisation with variable assay repeatability.

Peel mining limited AnnuAl RepoRt 2013Review of operations
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Comminution Characteristics

• SMC testwork indicates hard to very-hard rock strength of larger particle sizes (DWI average of 11.3 kWh/m3); HPGR

should be considered.

• Bond Ball Mill Work Index indicates medium hardness of smaller particle sizes (BWI average of 14.3 kWh/t).
• Bond Abrasion Index indicates low abrasiveness of ore (BAI of 0.055 Ai); low steel ball consumption and low wear on

crushing and grinding equipment, pipework, etc.

Gold Extraction Characteristics
• Excellent gravity gold extraction with 88% recovery at 75 µm; 68% recovery at 500 µm.
• Excellent gravity plus cyanide leach gold extraction (48hrs) with 99% recovery at 75 µm; 96% recovery at 500 µm;

moderate cyanide consumption, low lime consumption.

• Moderate to good cyanide leach gold extraction at coarse grind/fine crush sizes: 86% at 2mm; 72% at 4mm; 73% at

6mm; moderate cyanide consumption, low lime consumption.

2012/13 Activities
In 2012, Peel acquired mining licence M39/296 from Birimian Gold Limited. M39/296 is immediately along strike
(southeast) from the Apollo Hill resource and is considered to have good potential to host additional gold resources.
During 2012, Peel completed a field reconnaissance trip to Apollo Hill with a focus on mining licence M39/296 and
regional exploration. A number of prospects were identified for follow-up and a substantial geochemical survey has now
been planned.

In 2013, Peel completed an additional aboriginal heritage survey to clear areas identified for follow-up exploration. Also
during 2013, a programme of work was submitted for the Apollo Hill licences E39/1198 and M39/296 and subsequently
approved by the WA Department of Mines and Petroleum. The programme of work is for up to 24 Aircore/RC holes and is
designed to test for mineralised extensions to the main mineralised zone at Apollo Hill. Drilling is planned to commence in
October 2013.

Rise and Shine
In November 2011, Peel was awarded EP 53088 and EP 53111 covering the Rise & Shine gold project. The Rise & Shine
gold project, located about 20km northeast of Cromwell in Central Otago, New Zealand, hosts multiple historic gold

workings with historic production
estimated at more than 180,000
ounces gold.

EP 53111 was the subject of a
competitive permit allocation
process (NAA) initiated in late 2010
and encompasses the Rise &
Shine Shear Zone and the historic
Bendigo goldfield, whilst EP 53088
provides a regional exploration
buffer surrounding EP 53111. Gold
mineralisation is known to be
associated within the Rise & Shine
Shear Zone, with multiple lode and
alluvial gold workings occurring
over a strike length of at least
4km. The historic Bendigo “reefs”
comprise a series of sub-vertical
lodes with workings up to 130m
below surface.

The Rise & Shine Shear Zone appears to be structurally similar to the Macraes Shear Zone, host to the multi-million
ounce Macraes gold mine. The Rise & Shine Shear Zone represents a gold mineralised low-angle deformation zone
formed in a compressional environment and comprises a zone of hydrothermally altered schist. Alteration comprises
variable silicification, sericitisation, chloritisation and widespread carbonate alteration. The shear is about 50m thick and is
traceable for at least 7km, strikes 140 degrees, and dips to the northeast.

Substantial amounts of exploration have previously been completed at Rise & Shine however the majority of work has
been directed at historic workings sited at the base of the Rise & Shine Creek Valley. Peel believes that the Rise & Shine

Peel mining limited AnnuAl RepoRt 2013Review of operations
SeCtion 2

Shear Zone could possibly be “flatter” than previously assumed offering potential for large-tonnage, low-grade grade gold
deposits extending up-dip from previously defined mineralisation. To that end, Peel plans to complete a programme of RC
drilling aimed at testing this model.

The Rise and Shine Shear Zone contains three prospects: Alluvials; Rise and Shine mine; and Come in Time mine.
These are inferred to represent mineralised “shoots” possibly similar to the shoots at the Macraes goldfield. Potential
mineralisation in the permit area comprises the possible up-dip extension of the Rise and Shine Shear Zone, along with
potential for higher grade lenses of mineralisation down plunge within the shoots, similar to the higher grade lenses within
the Macraes Shear Zone.

The bulk of the hard rock gold production came from the Bendigo goldfield. The Bendigo reefs comprise sub vertical
lodes in psammitic or semi-psammitic schist. The geological relationship of the Bendigo Reefs to the Rise and Shine
Shear Zone is uncertain. These lodes comprise a swarm of E-trending, narrow, vertical to sub-vertical shears composed
of crushed schist, quartz veins, stringers, and puggy clay.

The reefs at the Bendigo Goldfield were mined from 1865 to 1913 and sporadically through to 1942. Historic gold
production was at least 180,000 oz, of which about 150,000 oz was produced from the Cromwell Lode. The Cromwell
Lode was mined over a strike of 400m, and is reported to have been traced for another 1200m to the east. Thickness
ranged from 0.6 – 1.8m, averaging 0.9m with an average grade of about 10 g/t gold. BHP concluded that a deep diamond
drilling programme was required to assess gold potential beneath the worked lodes. Minimal modern exploration has
been completed.

No field work was undertaken during the reporting period whilst Peel focussed on its Mallee Bull and Cobar Superbasin
projects. Exploration planning for Rise and Shine is largely complete and, subject to access and regulatory approval, is
planned for early 2014.

Attunga
Attunga is located about 20km north of Tamworth, NSW. Within the Attunga project, there are three specific areas of
interest: the Attunga Tungsten Deposit; the Attunga Copper Mine prospect and the Kensington gold-tungsten prospect.
The Attunga Project area is considered prospective for tungsten-molybdenum skarn-type mineralisation, base/precious
metal skarn-type mineralisation, and gold (+/-tungsten) intrusive-related gold system type mineralisation.

Attunga Tungsten Deposit
During the period 2007-2009, Peel completed multiple phases of exploration at the Attunga Tungsten Deposit including
the completion of an independent JORC-compliant resource estimation in April 2008. A high-grade inferred tungsten-
molybdenum resource was defined with results including 1.29 Mt at 0.61% WO3 and 0.05% Mo for 9,400t contained WO3
equivalent using a 0.2% WO3 equivalent cutoff.

In March 2009, Peel completed initial metallurgical testwork resulting in the production of high grade WO3 concentrate
along with a potential process flowsheet. The potential process flow sheet identified would involve staged crushing and
grinding, conventional gravity concentration (spirals), drying of gravity concentrates, removal of magnetic gangue material
(garnet) via magnetic circuit, and flotation of fine (-75 micron) spiral tails. Secondary processing/mineral dressing would
involve further flotation work.

In June 2009, Peel announced that new drilling at Attunga had returned high grade tungsten intercepts including 27m at
0.54% WO3 and 0.06% Mo from 19m (including 2m at 3.38% WO3 and 0.27% Mo) from 22m in RC drillhole AP1-026, and
2m at 0.59% WO3 and 0.03% Mo from 58m in RC drillhole AP1-027.

In 2010, Peel completed an in-house conceptual study into development options for the Attunga Tungsten Deposit with
results indicating that a low capital expenditure operation could yield positive returns. Peel believes that the deposit’s
small, high grade nature and proximity to excellent infrastructure and services bodes well for its future advancement/
potential development.

In late 2012, Peel commenced a review of the Attunga Tungsten Deposit with a view to advancing the project.

Subsequent to the end of the reporting period, in August 2013 Peel completed a single diamond drillhole at Attunga for
metallurgical purposes. Results for this hole remained pending. Peel notes that the price of tungsten concentrates and
tungsten products is close to historic highs, and accordingly is seeking interest to advance the Attunga Project.

Attunga Copper Mine
The Attunga Copper Mine, located about 800m north of the Attunga Tungsten Deposit was discovered in 1902 and
worked over various periods up until World War 2. Total recorded production was about 1,600t ore grading ~6% copper,
~8 g/t gold and ~150 g/t silver. Other significant metals present include bismuth, and molybdenum.

Peel mining limited AnnuAl RepoRt 2013Review of operations
SeCtion 2

In May 2009, Peel completed a drilling programme targeting the historic Attunga Copper Mine workings and an EM
anomaly. While thick clays prevented the effective testing of the EM anomaly, drilling to the south of the historic workings
resulted in the discovery of polymetallic mineralisation. Drillhole ACM-004 returned 75m at 1.02 g/t Au, 0.87% Cu, 0.09%
Mo, 0.06% Bi, and 22 g/t Ag from 136m including 27m at 1.60 g/t Au, 1.66% Cu, 0.18% Mo, 0.1% Bi, and 39 g/t Ag from
136m. The true width of the above intervals is construed to be approximately 25% of the downhole intercepts.

Between March and May 2010, Peel completed a programme of six diamond drillholes for 944m drilling that returned
encouraging mineralisation up-dip of ACM-004 with an interval of 5.6m at 0.44% Mo, 0.70 g/t Au, 12 g/t Ag, 0.45% Cu,
1.9 g/t Re from 48m and 1.4m at 22.70 g/t Au, 13 g/t Ag, 0.72% Cu from 55m.

The results from the Attunga Copper Mine confirm the presence of significant molybdenum-gold-copper skarn
mineralisation that remains open in several directions and provides encouragement that the Attunga skarn deposits are
possibly part of a larger metalliferous system, perhaps including a porphyry/mineralised granite source.

No further work was completed at the Attunga Copper Mine in 2012 or 2013.

Kensington gold prospect
The Kensington gold prospect, located about 5km north of the Attunga Tungsten Deposit, comprises a series of historic
gold workings (pre-WW1) across 800m strike with mineralisation outcropping, and covered by a 1,500m long, +100 ppb
gold geochemical anomaly, open in several directions.

In July 2008, Peel completed an RC drilling programme encountering widespread gold mineralisation with better results
including 9m at 1.4 g/t Au from 15m, 5m at 2.76 g/t Au from 60m, 14m at 0.78 g/t Au from 24m and 13m at 1.07 g/t Au.

In July 2010, Peel completed a RAB drilling programme at Kensington and Kensingto NW designed to test a reported
shallow tungsten occurrence and to test for additional near-surface gold. Encouraging gold mineralisation was returned
from multiple drillholes.

Peel designed the shallow RAB drilling programme at Kensington to target tungsten and gold mineralisation. Historic data
had indicated the presence of a large, shallow, low grade tungsten occurrence however drilling completed to date has
discounted this possibility.

The results from this RAB drilling provide encouragement to the possibility of substantial, near surface, gold mineralisation
at Kensington. Gold mineralisation at Kensington occurs within a package of structurally deformed sediments and remains
open to the northwest and southeast, and down dip.

Peel believes that Kensington holds good potential to host a significant gold system with mineralisation remaining open.

No work was completed during 2012 or 2013.

Ruby Silver
In 2011, Peel was granted an exploration licence covering the historic Ruby-Tulloch-Rockvale silverfield. Peel has since
been granted an additional licence adjacent to the Ruby silver project. Ruby Silver is located approximately 30km east of
Armidale in north-eastern New South Wales.

The Ruby Silver project encompasses much of the central part of the Rockvale Adamellite which hosts silver-gold-arsenic
mineralisation both at its margin and within the intrusion on northeast/northwest fracture zones, possibly associated with aplite
dykes. Major known deposits are the Ruby and Tulloch silver mines and the Rockvale arsenic mine. There are, however, many
other underexplored prospects and anomalies within the project, adding to its prospectivity for silver and gold.

The Ruby silver mine, associated with an outcropping aplite dyke, has a lode up to 1.4 metres wide and was worked to
a depth of 120 metres between 1895 and 1905. Historic production is estimated to be about 350,000 ounces silver at a
recovered grade of ~600 g/t Ag.

In 1968, a nine-hole diamond drill program was undertaken to test the main workings at Ruby. Records of this work are poor,
but it is known that the first hole intersected 5.08 metres at a grade of ~6,700 g/t Ag from 90.5 metres downhole. True width
was estimated at about 3 metres. Three of the other drillholes intersected old workings, while values in a further three were
reported only as “low”. No results were recorded for the other two drillholes. No further drilling has been completed at Ruby.

Results from an historic IP geophysics survey completed in 1969 suggest that sulphide mineralisation possibly extends
well beyond the known silver-rich shoot at Ruby, and presents future exploration targets.

At the Tulloch mine, mined between 1913 and 1928, an estimated 50,000 ounces silver at a recovered grade of ~6,200 g/t
Ag have been won. The silver mineralisation is developed in fissures associated with three obliquely intersecting sets of
shears near the contact of sediments.

Peel mining limited AnnuAl RepoRt 2013Review of operations
SeCtion 2

The Rockvale arsenic mine was discovered in 1923, and in the period to 1928, produced 2,950 tonnes of ore containing
about 600 tonnes of white arsenic. Mineralisation occurs as irregular shoots in altered aplite within the Rockvale
Adamellite. Mineralisation is predominantly pyrite-arsenopyrite, but silver-gold-lead mineralisation (similar to both the Ruby
and Tulloch mines) is recorded.

Peel’s Activities
During 2011, Peel undertook an 18 line kilometre IP survey over the historic Tulloch silver mine and Rockvale arsenic mine
areas in preparation for an upcoming drill programme. This work identified multiple zones of strong shallow chargeable
anomalism, many of which are coincident or proximal to known historic workings. These chargeable IP responses are
interpreted as areas of possibly concentrated sulphide mineralisation and will be high-priority targets for future drill
programmes.

Also in 2011 Peel also completed several reconnaissance mapping and rock chip/dump sampling programme at the
Tulloch, G Reef, Happy Valley and Rockvale areas. This sampling returned very high silver and gold values. Samples
were collected from shaft dumps at the Rockvale, G Grid and Happy Valley areas from rock chips along the line of lode at
Rockvale. See Appendix 3 for technical details.

Ongoing reconnaissance geological mapping and sampling programmes over the Tulloch, G Reef/Happy Valley and
Rockvale areas has delineated the Rockvale line of lode at surface for more than 1000m. Mapping and sampling has also
identified that the G-Reef lode is traceable in outcrop for 700m in length. In places the lode zone is up to 5m wide and is
associated with sericitised granite.

In May 2012, Peel completed a maiden RC drilling programme at Ruby Silver comprising 15 holes for 1,483m. The
programme was designed to test IP chargeability anomalies, and to also test beneath historic workings at the Rockvale and
Tulloch mines. Several narrow, high-grade silver intercepts were recorded with better results including:
• PRRC009 – 2m @ 32 g/t Ag from 9m, 3m @ 227 g/t Ag from 20m and 3m @ 267 g/t Ag, 0.82% Pb, 0.39% Zn from

115m;

• PRRC010 – 5m @ 145 g/t Ag, 0.23 g/t Au from 93m; and
• PRRC013 – 2m @ 173 g/t Ag from 16m and 1m @ 71 g/t Ag from 24m.

Best results were obtained from drilling directed at the Tulloch Lode. High-grade mineralisation was intersected below
the base of old workings. Significantly, several shallow high-grade results were returned from near surface in a previously
unidentified parallel lode.

No exploration was undertaken during 2013 due to the Company’s focus on its core projects.

Yerranderie
During the reporting period, tenement EL7356 “Yerranderie” was relinquished following its expiry on 23rd June 2013.

Morawa
In 2012, Peel was granted a single exploration licence covering a small greenstone belt located about 20km north
of Morawa. The area is considered to have potential to host VMS-style base-precious metals. No exploration was
undertaken during 2013 due to the Company’s focus on its core projects.

The information in this report that relates to Exploration Results is based on information compiled by Mr Robert Tyson, who is a Member
of the Australasian Institute of Mining and Metallurgy. Mr Tyson has sufficient experience which is relevant to the styles of mineralisation
and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the
2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr Tyson consents to
the inclusion in this report of the matters based on the information in the form and context in which it appears.

Peel mining limited AnnuAl RepoRt 2013Review of operations
SeCtion 2

Schedule of tenements

HOLDeR

PeeL iNteRest

Peel Mining Ltd

100%

HOLDeR

PeeL iNteRest

Peel Mining Ltd

100%

HOLDeR

PeeL iNteRest

Peel Mining Ltd

100%

NUMBeR

eL6883

eL6884

eL7633

ML1361

eL7461

eL7711

eL7856

eL7519

eL7976

eLA4562

eLA4575

eLA4576

eL8112

eL8113

eL8125

eL8126

eL8114

eL8115

eL8117

eLA4707

NUMBeR

e39/1198

P31/1797

P39/4586

P39/4587

P39/4588

P39/4589

P39/4590

P39/4591

P39/4592

P39/4677

P39/4678

P39/4679

P39/4789

e31/0800

e39/1236

e39/1644

e40/0296

e40/0303

M39/0296

e70/4252

NUMBeR

eP53111

eP53088

New South Wales

PROjeCt

Attunga

Attunga Garnet

May Day

Gilgunnia

Ruby silver

Ruby silver east

Gilgunnia south

Mundoe (euabalong)

tara

Manuka

Mirrabooka

yackerboon

irisvale

Hillview

Norma Vale

yara

Burthong

illewong

Mundoe North

Western Australia

PROjeCt

Apollo Hill

Bob's Bore

27 Well

Bulyairdie

isis

Karrakarook

New Zealand

PROjeCt

Rise and shine

Mt Moka

Rob Tyson
MANAGING DIRECTOR

exPiRy

21.09.2013

01.11.2012

16.01.2016

04.03.2012

22.02.2011

1/11/2013

3/5/2012

11/10/2014

8/04/2015

19/06/2015

26/06/2016

26/06/2015

26/06/2016

application pending

exPiRy

30/03/ 2014

08/06/2018

30/03/2017

Renewal pending

08/06/2018

17/02/2013

29/08/2013

6/03/2017

29/09/2014

5/01/2017

exPiRy

19/10/2016

Peel mining limited AnnuAl RepoRt 2013SeCtion 4

Directors Report

Your directors present their report on the consolidated entity (referred to hereafter as “the Group”) comprising Peel Mining
Limited and the entities it controlled at the end of, or during the financial year ended 30 June 2013.

Directors
The following persons were directors of Peel Mining Limited during the financial year and up to the date of this report.

S Hadfield
R Tyson
G Hardie

Directors’ interests in shares and options

Directors’ interests in shares and options as at the date of this report are set out in the table below.

DiReCtOR

Graham Hardie

Robert tyson

simon Hadfield

sHARes DiReCtLy AND iNDiReCtLy HeLD

15,322,890

7,030,000

3,812,564

OPtiONs

500,000

1,000,000

500,000

Principal activities
The principal continuing activity of the Group is the exploration for economic deposits of minerals. For the period of this
report, the emphasis has been on base and precious metals.

Results
The loss of the Group for the financial year after providing for income tax amounted to $1,475,928 (2012: $527,337),
including exploration expenditure written off of $53,455 and share based payment expense of $543,301 for options
granted to directors and employees. The net assets of the group have increased by $6,114,453 since 30 June 2012. This
increase is primarily a result of the capital raising of $5,096,000 that was completed in June 2013.

Dividends
No dividends were paid or proposed during the year.

Review of operations
A review of the operations of the Group during the financial year and the results of those operations are contained in
pages 3 to 22 in this report.

Corporate structure
The Group comprises Peel Mining Limited, a limited Company incorporated and domiciled in Australia and its 100%
owned subsidiaries Peel Environmental Services Limited and Apollo Mining Pty Ltd also both incorporated and domiciled
in Australia.

Significant changes in the state of affairs
Contributed equity increased during the financial year by $7,268,000, before costs, through the issue of:
i. 6,000,000 ordinary shares at $0.315 each for cash. The cash received from the increase in contributed equity will be
used to purchase Wirchiliba Station (on which the Mallee Bull project lies) and continue the company’s exploration
programs.

ii. 10,400,000 ordinary shares at $0.49 each for cash. The cash received from the increase in contributed equity will
principally be used to contribute to funding the progression of the Mallee Bull project once a joint venture is formed

iii. 2,500,000 ordinary shares at $0.10 each as consideration for the acquisition of a mining lease.
iv. 400,000 ordinary shares from the exercise of employee share options at $0.08 each for cash.

Details of the changes in contributed equity are disclosed in note 12 to the financial statements.

The Directors are not aware of any other significant changes in the state of affairs of the Group occurring during the
financial year, other than disclosed in this report.

Matters subsequent to the end of the financial period

Settlement of Wirchiliba
Settlement of Wirchiliba Station, on which Peel Mining Limited’s flagship Mallee Bull project is located, was completed
on 30 September 2013. Peel Mining Limited acquired 7974 ha land for $720,000 (after previously taking out an $80,000
option on the land) to secure access to the Mallee Bull project going forward.

Peel mining limited AnnuAl RepoRt 2013Directors Report
SeCtion 4

Stage 3 of Mallee Bull Farm-in Agreement with CBH Resources commences
Stage 3 of the Mallee Bull Farm-in agreement with CBH Resources Limited commenced, with $600,000 in cash calls
being paid between balance date and the date of this report.
Sandy Creek acquisition complete and initial exploration underway
Peel Mining Limited has completed the acquisition of the Sandy Creek tenement from Weddarla Pty Ltd, for 2,214,286
ordinary Peel Mining shares. Initial exploration is underway.
No other matter or circumstance has arisen since 30 June 2013 that has a significant affect or may.
Likely developments and expected results
As the Group’s areas of interest are at an early stage, it is not possible to postulate the likely developments and any
expected results.

Information on directors
Simon Hadfield – Non-Executive Chairman
Mr Hadfield has more than 30 years company management experience and has held directorships in publicly-listed
industrial and resource companies. Mr Hadfield is Managing Director of Resource Information Unit Pty Ltd. No other
directorships held in the prior 3 years.

Mr Hadfield holds 3,812,564 shares in Peel Mining Limited and 500,000 share options with an exercise price of $0.50.

Robert Maclaine Tyson B.App Sc(Geol).GradDip Applied Finance(SIA) – Executive Director
Mr Tyson is a geologist with more than 20 years resources industry experience having worked in exploration and mining-
related roles for companies including Cyprus Exploration Pty Ltd, Queensland Metals Corporation NL, Murchison Zinc
Pty Ltd, Normandy Mining Ltd and Equigold NL. Mr Tyson has more than five years of senior management experience.
Mr Tyson holds 7,030,000 shares in Peel Mining Limited and 1,000,000 share options with an exercise price of $0.50. No
other directorships held in the prior 3 years.

Graham Hardie FCA – Non-Executive Director
Mr Hardie is the principal of Hardie Finance Corporation, a private Perth-based property development company, and is
also the principal of Entertainment Enterprises, a private Perth-based hospitality company. He is a Fellow of the Institute
of Chartered Accountants and a former partner in a leading Chartered Accounting firm. He has extensive commercial and
financial experience and has held board positions on a number of public companies in the mining, media, transport and
retail industries. No other directorships held in the prior 3 years.

Mr Hardie holds 15,322,890 shares in Peel Mining Limited and 500,000 share options with an exercise price of $0.50.

Craig McGown FCA – Non-Executive Director (Resigned as of 9th April 2013)
Mr McGown is an Investment Banker with over 35 years experience consulting to companies in Australia and
internationally, particularly in the natural resource sector. He holds a Bachelor of Commerce degree, is a Fellow of the
Institute of Chartered Accountants and an Affiliate of the Securities Institute of Australia. Mr McGown is the former
Chairman of DJ Carmichael Pty Limited. He is currently a director of the corporate advisory business New Holland Capital
Pty Limited and a Non-Executive Director of Bass Metals Ltd and Non-Executive Chairman of Pioneer Resources Limited.
Mr McGown was previously the Non-Executive Chairman of Entek Energy Limited, before resigning 28 February 2011.
Mr McGown retired as non-executive director of Peel Mining Limited on the 9th April 2013. At the time of his retirement Mr
McGown held 1,875,000 shares in Peel Mining Limited and 500,000 share options with an exercise price of $0.50.

Company Secretaries

Mr R Woodhouse CA
Appointed to the position of company secretary in June 2012, Mr Woodhouse is a Member of the Institute of Chartered
Accountants and has more than 6 years of accounting, governance and commercial experience within the mining and
energy industries.

Meetings of Directors
Director’s attendance at Directors meetings are shown in the following table:

DiReCtOR

R tyson

s Hadfield

G Hardie

C McGown*

*Retired as Non-executive Director during the year

NUMBeR HeLD WHiLst iN OffiCe

NUMBeR AtteNDeD

Peel mining limited AnnuAl RepoRt 2013Directors Report
SeCtion 4

Remuneration report (audited)
The remuneration report is set out under the following headings:
a) Principles used to determine the nature and amount of remuneration
b) Details of remuneration
c) Service agreements
d) Share-based compensation and
e) Additional information.
a) Principles used to determine the nature and amount of remuneration
The objective of the remuneration framework of Peel Mining Limited is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with achievement of strategic objectives
and the creation of value for shareholders. The Board believes that executive remuneration satisfies the following key
criteria:
• competitiveness and reasonableness
• acceptability to shareholders
• performance linkage/alignment of executive compensation
•
• capital management.

transparency

These criteria result in a framework which can be used to provide a mix of fixed and variable remuneration, and a blend of
short and long-term incentives in line with the Company’s limited financial resources.

Board and senior management
Fees and payments to the Directors and other key management personnel reflect the demands which are made on, and
the responsibilities of, the Directors and the senior management. Such fees and payments are determined by the Board
and reviewed annually.

Company policy in relation to issuing options and remunerating executives is that directors are entitled to remuneration out
of the funds of the Company but the remuneration of the non-executive Directors may not exceed in any year the amount
fixed by the Company in general meeting for that purpose. The aggregate fees of the non-executive directors has been
fixed at a maximum of $300,000 per annum to be apportioned among the non-executive Directors in such a manner as
they determine (refer below). Directors are also entitled to be paid reasonable travel, accommodation and other expenses
incurred in consequence of their attendance at Board meetings and otherwise in the execution of their duties as Directors.

Remuneration is not linked to past group performance but rather towards generating future shareholder wealth through
share price performance. Peel Mining Limited listed on 11 May 2007 at 20c per share and the share price at 30 June 2013
was 33c (2012: 7.8c). The shares recorded high and low points of 74c and 6.4c during the year, and were trading at 38c
on 16 September 2013. The company has recorded a loss each financial year to date as it carries out exploration activities
on its tenements. No dividends have been paid.

b) Details of remuneration
Details of the nature and amount of each element of the remuneration of each of the Directors of Peel Mining Limited and
other key management personnel of the Group during the year ended 30 June 2013 are set out in the following table.

Table 1: Director and senior executive remuneration
POst eMPLOyMeNt

sHORt-teRM
eMPLOyMeNt
BeNefits

LONG-teRM
BeNefits

sUPeRANNUAtiON

LONG-seRViCe
LeAVe

sHARe
BAseD
PAyMeNt

OPtiONs

tOtAL

OPtiONs As
ReMUNeRAtiON

15,509

4,500

2,376

8,567

39,952

210,917

105,459

7,240

398,753

159,959

151,625

28,776

111,156

534,534

1,010,228

52.89%

65.93%

69.55%

6.51%

2013

Directors

RM tyson – Managing Director

s Hadfield – Non exec Chairman

G Hardie – Non exec Director

C McGown* – Non exec Director

Other key management personel

D Hocking** – joint Co. secretary

R Woodhouse – joint Co. secretary

Total

CAsH sALARy
AND fees

172,327

50,000

41,666

26,400

95,349

435,742

*Retired as Non-executive Director during the year
**Retired as Joint Company Secretary during the year

Peel mining limited AnnuAl RepoRt 2013Directors Report
SeCtion 4

sHORt-teRM
eMPLOyMeNt
BeNefits

CAsH sALARy
AND fees

POst
eMPLOyMeNt

LONG-teRM
BeNefits

sHARe BAseD
PAyMeNt

BONUses,
OtHeR
BeNefits

CONsULtiNG
fees

sUPeRANNUAtiON

LONG-
seRViCe
LeAVe

OPtiONs

tOtAL

OPtiONs As
ReMUNeRAtiON

2012

Directors

RM tyson – Managing Director

s Hadfield – Non exec Chairman

C McGown – Non exec Director

G Hardie – Non exec Director

Other key management personel

135,000

50,000

D Hocking- joint Co. secretary

80,400

R Woodhouse*-joint Co. secretary

total

16,443

381,843

*Ryan Woodhouse was appointed on the 30th April 2012.

12,150

4,500

7,236

1,480

34,366

147,150

54,500

3,400

87,636

3.88%

17,923

416,209

1. Options do not represent cash payments to Directors and executives and options granted may or may not be

exercised by the Directors and executives. Options are not linked to the performance of the company.

c) Service agreements
Remuneration and other terms of employment for the Directors and executives are not formalised in Service/Appointment
agreements. Major provisions of employment are set out below:

R Tyson
There is no written contract for Mr Tyson, who received payments and benefits totalling $398,753 (2012:$147,150) in his
role as executive director of the Company.

S Hadfield
There is no written contract for Mr Hadfield, who received payments and benefits totalling $159,959 (2012:$54,500) in his
role as a director of the Company.

G Hardie
There is no written contract for Mr Hardie, who received payments and benefits totalling $159,959 (2012:$54,500) in his
role as a director of the Company.

C McGown (Resigned 9th April 2013)
There is no written contract for Mr McGown, who received payments and benefits totalling $151,625 (2012:$54,500) in his
role as a director of the Company.

R Woodhouse
There is no written contract for Mr Woodhouse, who received payments and benefits totalling $111,156 (2012:$17,923) in
his role as Company Secretary.

d) Share-based compensation

Directors
During the year options over shares were issued to directors, after approval by shareholders at the company’s 2012
annual general meeting. 2,500,000 options in total were issued (see table below) to the Managing Director and the non-
executive directors, each having a exercise price of 50 cents and an expiry date of 28th November 2015. These options all
vest immediately.

Employees
Options over shares in Peel Mining Limited may be granted under the Peel Mining Limited Employee Option Plan
which was created in June 2008 and approved by shareholders at annual general meeting. The Employee Option Plan
is designed to provide long-term incentives for employees to deliver long-term shareholder returns. Under the plan,
participants are granted options 50% of which vest immediately and the remainder vest after twelve months provided the

Peel mining limited AnnuAl RepoRt 2013
Directors Report
SeCtion 4

employees are still employed by the Company at the end of the vesting period. Participation in the plan is at the Board’s
discretion and no individual has a contractual right to participate in the plan or to receive any guaranteed benefits.

Details of options over ordinary shares in the company provided as remuneration to each director and key management
personnel of Peel Mining Limited are set out below. When exercisable, each option is convertible into one ordinary share of
Peel Mining Limited. Further information on the options is set out in note 24 to the financial statements.

NAMe

Directors

Rob tyson

simon Hadfield

Graham Hardie

Craig McGown

Other key management personnel

Ryan Woodhouse

D Hocking

NUMBeR Of OPtiONs GRANteD DURiNG yeAR

NUMBeR Of OPtiONs VesteD DURiNG yeAR

2013

2012

2013

2012

1,000,000

500,000

200,000

1,000,000

500,000

100,000

The assessed fair value at grant date of options granted to the individuals is allocated equally over the period from grant
date to vesting date and the amount is included in the remuneration tables above. Fair values at grant date have been
determined using Black-Scholes option pricing model that takes into account the exercise price, the term of the option,
the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected
dividend yield and the risk-free interest rate for the term of the option.

The terms and conditions of each grant of options affecting remuneration in the previous, this or future reporting period is
as follows:

GRANt DAte

DAte VesteD & exeRCisABLe

exPiRy DAte

exeRCise PRiCe

VALUe PeR OPtiON At
GRANt DAte

18 December 2012

18 December 2012 (100%)

28th November 2015

11 july 2012

11 july 2012 (50%)
11 july 2013 (50%)

31 july 2014

50 cents

8 cents

22 cents

4 cents

No options were exercised by directors of Peel Mining Limited or other key management personnel during the year.

e) Additional information

Details of remuneration: cash bonuses, options
No cash bonuses have been paid by the Company.

Share-based compensation: options
Other than options granted and exercised under the Company Employee Option Plan, as described in (d) above, there
were no options issued to or exercised by directors of Peel Mining Limited or other key management personnel during the
year.

Use of remuneration consultants
During the year ended 30 June 2013, the Group did not employ the services of a remuneration consultant to review its
existing remuneration policies and to provide recommendations in respect of both executive short-term and long-term
incentive plan design.

Voting and comments made at the company’s 2012 Annual General Meeting
Peel Mining Limited received more than 99% of “yes” votes on its remuneration report for the 2012 financial year. The
company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices.

End of Audited Remuneration Report

Peel mining limited AnnuAl RepoRt 2013
Directors Report
SeCtion 4

Shares under option
Unissued ordinary shares of the Company under option at the date of this report are as follows:

DAte OPtiONs GRANteD

11 july 2012 (employees)

18 December 2012 (Directors)

6 september 2013 (employees)

exPiRy DAte

31 july 2014

28 November 2015

30 june 2015

issUe PRiCe Of sHARes

NUMBeR UNDeR OPtiON

8 cents

50 cents

600,000

2,500,000

320,000

No option holder has any right under the options to participate in any other share issue of the company.

Shares issued on the exercise of options
The following ordinary shares of the Company were issued during the year on the exercise of options.

DAte Of exeRCise

11 October 2012

27 March 2013

issUe PRiCe Of sHARes

NUMBeR Of sHARes issUeD

2013

CeNts

2012

CeNts

2013

NUMBeR

350,000

50,000

2012

NUMBeR

indemnification and insurance of Directors and officers
During the financial year the Company paid a premium of $8,769 (2012: $7,895) to insure the directors and company
secretary of the Group. The policy insures each person who is or was a director or company secretary of the Group
against certain liabilities arising in the course of their duties. The directors have not disclosed the amount of the premiums
paid as such disclosure is prohibited under the terms of the policy.

Proceedings on behalf of the company
No person has applied for leave of Court to bring proceedings on behalf of the Group or intervene in any proceedings
to which the Group is a party for the purpose of taking responsibility on behalf of the Group for all or any part of those
proceedings. The Group was not a party to any such proceedings during the year.

environmental regulation
Peel Mining Limited holds exploration licences and mining leases issued by the NSW Department of Primary Industry,
the WA Department of Mining and the New Zealand Petroleum & Minerals Department. These licences specify guidelines
for environmental impacts in relation to exploration activities. The licence conditions provide for the full rehabilitation of
the areas of exploration in accordance with the respective Departments’ guidelines and standards. There have been no
significant known breaches of the licence conditions.

greenhouse gas and energy Data reporting requirements
The Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which requires
entities to report annual greenhouse gas emissions and energy use. The directors have assessed that there are no current
reporting requirements, but may be required to do so in the future.

Auditor’s independence Declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is
included at the end of this financial report.

Auditor
BDO Audit (WA) Pty Ltd continues in office under section 327 of the Corporations Act 2001.

non-Audit Services
The company may decide to employ the auditor on assignments additional to their statutory audit duties where the
auditor’s expertise and experience with the company are important. There were no non-audit services provided by the
auditors or their related entities during the year.

This report is made in accordance with a resolution of the Board of Directors and signed for on behalf of the board by:

rob Tyson
Executive director
Perth, Western Australia
30th September 2013

Peel mining limited AnnuAl RepoRt 2013SeCtion 5

Consolidated statement of comprehensive income

for THe yeAr enDeD 30 June 2013

Revenue from continuing operations

share-based remuneration to employees

Depreciation expense

employee and directors’ benefit expenses

exploration expenditure written off

Administration expenses

Loss before income tax

income tax expense

NOte

2013 $

77,502

(543,301)

(37,916)

(411,694)

(53,455)

(507,064)

CONsOLiDAteD

2012 $

68,673

(15,318)

(320,659)

(260,033)

(527,337)

Loss from continuing operations after income tax

(1,475,928)

(527,337)

other comprehensive income/loss

total comprehensive loss for the year is attributable to the members of
Peel exploration Limited

(1,475,928)

(527,337)

Loss for the year is attributable to the members of Peel Mining Limited

(1,475,928)

(527,337)

Basic and diluted loss per share

(0.005)

The above Consolidated Statement of Profit or Loss and Other Comprehensive income should be read in conjunction with the
accompanying notes

Peel mining limited AnnuAl RepoRt 2013

SeCtion 6

Consolidated statement of financial position

for THe yeAr enDeD 30 June 2013T

NOte

2013 $

CONsOLiDAteD

2012 $

Current Assets

Cash and cash equivalents

trade and other receivables

Total Current Assets

Non-Current Assets

security deposits

Plant and equipment

exploration assets

Total Non-Current Assets

Total Assets

Current Liabilities

trade and other payables

Borrowings

Total Current Liabilities

Total Liabilities

Net Assets

Equity

Contributed equity

Accumulated losses

Option reserve

Total Equity

6,360,673

212,913

6,573,586

229,904

228,090

7,071,419

7,529,413

14,102,999

342,629

63,307

405,936

13,697,063

17,136,805

(4,562,765)

1,123,023

13,697,063

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

629,049

30,883

659,932

162,056

86,855

6,864,104

7,113,015

7,772,947

190,337

7,582,610

10,089,725

(3,086, 837)

579,722

7,582,610

Peel mining limited AnnuAl RepoRt 2013SeCtion 7

Consolidated statement of changes in equity

for THe yeAr enDeD 30 June 2013

consolidated

Balance at 1 July 2011

Loss for the year

total comprehensive income/loss for the year

Transactions with equity holders in their capacity as equity holders:

issue of share capital

share issue expenses

share based payments

Balance at 30 June 2012

Loss for the year

ContRibuteD
equity $

ACCuMuLAteD
LoSSeS $

ReSeRveS $

totAL equity $

7,384,925

(2,559,500)

579,722

5,405,147

(527,337)

2,733,724

(28,924)

(1,475,928)

10,089,725

(3,086,837)

579,722

543,301

(527,337)

2,733,724

(28,924)

7,582,610

(1,475,928)

7,268,000

(220,920)

543,301

total comprehensive income/loss for the year

Transactions with equity holders in their capacity as equity holders:

issue of share capital

share issue expenses

share based payments

7,268,000

(220,920)

Balance at 30 June 2013

17,136,805

(4,562,765)

1,123,023

13,697,063

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Peel mining limited AnnuAl RepoRt 2013Consolidated statement of cash flows

SeCtion 8

for THe yeAr enDeD 30 June 2013

Cash flows from operating activities

Payments to suppliers and employees

interest received

Net cash outflow from operating activities

cash flows from investing activities

Payment for mineral exploration expenditure

Payment of security deposits

Refund of security deposits

Payments for purchase of plant and equipment

Proceeds from disposal of interest in e&e asset through farm-out

Net cash outflow from investing activities

Cash flows from financing activities

Proceeds from issues of shares

transaction costs of issue of shares

Net cash inflow from financing activities

Net increase /decrease in cash and cash equivalents

Cash and cash equivalents at the start of the year

Cash and cash equivalents at the end of the year

NOte

2013 $

2012 $

CONsOLiDAteD

(1,007,321)

54,466

(952,855)

(4,931,757)

(120,000)

55,000

(115,844)

5,000,000

(112,601)

7,018,000

(220,920)

6,797,080

5,731,624

629,049

6,360,673

(519,416)

68,673

(450,743)

(2,938,108)

(105,000)

60,000

(84,312)

(3,067,420)

2,643,724

(28,924)

2,614,800

(903,363)

1,532,412

629,049

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

Peel mining limited AnnuAl RepoRt 2013
SeCtion 9

notes to the consolidated financial statements

1. Statement of Significant Accounting Policies
The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have
been consistently applied to all the years presented, unless otherwise stated. The financial report includes the financial
statements for the consolidated entity which comprises Peel Mining Limited and the subsidiaries it controlled at the end
of, or during the financial year ended 30 June 2013.

(a) basis of preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards,
other authoritative pronouncements of the Australian Accounting Standards Board, Australian Accounting Interpretations
and the Corporations Act 2001. Peel Mining Limited is a for-profit entity for the purpose of preparing the financial
statements.

Compliance with IFRS
The financial statements and notes of Peel Mining Limited comply with International Financial Reporting Standards (IFRS).

Historical cost convention
These financial statements have been prepared under the historical cost convention.

(b) Principles of consolidation
The consolidated financial statements are those of the consolidated entity, comprising Peel Mining Limited (the parent
entity) and Apollo Mining Pty Ltd and Peel Environmental Services Limited (the controlled entities) which Peel Mining
Limited controlled during the year and at reporting date (“the Group”). A controlled entity is any entity that Peel Mining
Limited has the power to control the financial and operational policies so as to obtain benefits from its activities.

Information from the financial statements of the subsidiary is included from the date the parent company obtains control
until such time as control ceases. Where there is a loss of control of a subsidiary, the consolidated financial statements
include the results for the part of the reporting period during which the parent company has control.

Subsidiary acquisitions are accounted for using the acquisition method of accounting.

The financial statements of subsidiaries are prepared for the same reporting period as the parent entity, using consistent
accounting policies.

All intercompany balances and transactions, including unrealised profits arising from intra-group transactions,
have been eliminated in full. Unrealised losses are eliminated except where costs cannot be recovered.

Investments in subsidiaries are carried at cost in the parent entity.

(c) revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefit will flow to the group and the revenue
can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised.

Interest income
Revenue is recognised as the interest accrues using the effective interest rate method.

(d) income tax
The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on
the national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.

Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax assets
and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry-forward of unused tax assets and unused tax losses can be utilised. A deferred
income tax asset is not recognised where the deferred income tax asset relating to the deductible temporary difference
arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit nor taxable profit or loss or when the deductible temporary
difference is associated with investments in subsidiaries, associates or interests in joint ventures, in which case a deferred
tax asset is only recognised to the extent that it is probable that the temporary difference will reverse in the foreseeable
future and taxable profit will be available against which the temporary difference can be utilised.

Peel mining limited AnnuAl RepoRt 2013notes to the consolidated financial statements
SeCtion 9

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax to be utilised.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the
asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted at the reporting date.
Income taxes relating to items recognised directly in equity are recognised in equity and not in profit and loss for the year.

(e) impairment of assets
At each reporting date, the group assesses whether there is any indication that an asset may be impaired. Where an
indicator of impairment exists, the company makes a formal estimate of recoverable amount. Where the carrying amount
of an asset exceeds its recoverable amount the asset is considered impaired and is written down to its recoverable
amount.

Recoverable amount is the greater of fair value less costs to sell and value in use. It is determined for an individual asset,
unless the asset’s value in use cannot be estimated to be close to its fair value less costs to sell and it does not generate
cash inflows that are largely independent of those from other assets or groups of assets, in which case, the recoverable
amount is determined for the cash-generating unit to which the asset belongs. The estimated future cash flows are
discounted to their present value using a pre-tax discount rate reflecting current market assessments of the time value
of money and the risks specific to the asset. No impairment losses (2012: $nil) have been recognised for the year ending
30 June 2013.

(f) cash and cash equivalents
For statement of cash flows preparation purposes, cash and cash equivalents includes cash on hand and deposits held
at call with financial institutions. Bank overdrafts are shown within borrowings in the current liabilities on the statement of
financial position.

(g) Trade and other receivables
Trade receivables, which generally have 30 to 90 day terms, are recognised initially at fair value and subsequently at
amortised cost less an allowance for any uncollectible amounts. An allowance for doubtful debts is made when there
is objective evidence that the group will not be able to collect the debts. The allowance for bad debts is recognised in a
separate account. Bad debts are written off when identified.

(h) other financial assets – security deposits
The Group classifies its financial assets as loans and receivables. Management determines the classification at initial
recognition and where applicable re-evaluates this designation at the end of each reporting period. Loans and receivables
are carried at amortised cost using the effective interest method. The group assesses at the end of each financial period
whether a financial asset is impaired.

Security deposits are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market.

(i) fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for
disclosure purposes.

The carrying value less impairment provision of trade receivables and payables are assumed to approximate their
fair values due to their short-term nature. The fair value of financial liabilities for disclosure purposes is estimated by
discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar
financial instruments.

(j) Plant and equipment
All assets acquired, including plant and equipment are initially recorded at their cost of acquisition, being the fair value
of the consideration provided plus incidental costs directly attributable to the acquisition. Depreciation on Plant and
equipment is calculated using the straight-line method to allocate their cost or revalued amounts over their estimated
useful lives from the time the asset is held ready for use as follows:
• Plant
• Vehicles
• Office equipment
• Computer software

3-5 years
3-5 years
3-5 years
3-5 years

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount.

Peel mining limited AnnuAl RepoRt 2013

notes to the consolidated financial statements
SeCtion 9

An item of plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its
use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between net disposal
proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is derecognised.

(k) exploration and evaluation expenditure
All exploration and evaluation expenditure are capitalised under AASB 6 Exploration for and Evaluation of Mineral
Resource. Mineral interest acquisition, exploration and evaluation expenditure incurred is accumulated and capitalised
in relation to each identifiable area of interest. These costs are only carried forward to the extent that the Group’s right
to tenure to that area of interest are current and either the costs are expected to be recouped through successful
development and exploitation of the area of interest (alternatively by sale) or where areas of interest have not at reporting
date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable
reserves, and active, and significant operations are being undertaken in relation to, the area of interest.

Amortisation is not charged on costs carried forward in respect of areas of interest in the development phase until
production commences.

The policy has resulted in exploration expenditure of $53,455 (2012: $nil) being written off during the year.

(l) Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year
which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. They are recognised
initially at fair value and subsequently at amortised cost.

(m) contributed equity
Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax,
from the proceeds. Incremental costs directly attributable to the issue of new shares or options for the acquisition of a
business are not included in the cost of the acquisition as part of the purchase consideration.

If the entity acquires its own equity instruments, e.g. as the result of a share buy-back, those instruments are deducted
from equity and the associated shares are cancelled. No gain or loss is recognised in the profit or loss and the
consideration paid including any directly attributable incremental costs (net of income taxes) is recognised directly in
equity.

(n) earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential
ordinary shares.

(o) goods and services tax
Revenues, expenses and assets are recognised net of goods and services tax (GST), except where the amount of GST
incurred is not recoverable from the taxation authority. In these circumstances the GST is recognised as part of the cost of
acquisition of the asset or as part of the expense item.

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable is included as
a current asset in the statement of financial position.

Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from
investing and financing activities which are recoverable from the taxation authority are classified as operating cash flows.

(p) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief decision maker has been identified as the Board of Directors.

Peel mining limited AnnuAl RepoRt 2013notes to the consolidated financial statements
SeCtion 9

(q) Share based Payments
Share-based compensation benefits to directors, employees and consultants are provided at the discretion of the Board.

The fair value of options granted is recognised as an expense with a corresponding increase in equity. The fair value is
measured at grant date and recognised over the period during which the recipient becomes unconditionally entitled to the
options.

The fair value at grant date is independently determined using a Black-Scholes option pricing model that takes into
account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price
volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

The fair value of the options granted is adjusted to reflect market vesting conditions, but excludes the impact of any non-
market vesting conditions (for example, profitability). Non-market vesting conditions are included in assumptions about the
number of options that are expected to become exercisable. At each reporting date, the entity revises its estimate of the
number of options that are expected to become exercisable. The employee benefit expense recognised each period takes
into account the most recent estimate. The impact of the revision to original estimates, if any, is recognised in the profit or
loss with a corresponding adjustment to equity.

(r) leases
Leases of property, plant and equipment where the group, as lessee, has substantially all the risks and rewards of
ownership are classified as finance leases (note 11). Finance leases are capitalised at the lease’s inception at the fair value
of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations,
net of finance charges, are included in other short-term and long-term payables. Each lease payment is allocated between
the liability and finance cost. The finance cost is charged to the profit or loss over the lease period so as to produce
a constant periodic rate of interest on the remaining balance of the liability for each period. The property, plant and
equipment acquired under finance leases is depreciated over the asset’s useful life or over the shorter of the asset’s useful
life and the lease term if there is no reasonable certainty that the group will obtain ownership at the end of the lease term.

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the group as lessee are
classified as operating leases (note 36). Payments made under operating leases (net of any incentives received from the
lessor) are charged to profit or loss on a straight-line basis over the period of the lease.

Lease income from operating leases where the group is a lessor is recognised in income on a straightline basis over the
leaseterm (note 20). The respective leased assets are included in the balance sheet based on their nature.

(s) new accounting standards and interpretations
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2013
reporting periods and have not yet been applied in the financial report. The Group’s assessment of the impact of these
new standards and interpretations is set out below.

AASB 9 Financial Instruments and AASB 2009 Amendments to Australian Accounting Standards arising from AASB
9 and AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) (effective for
annual reporting periods beginning on or after 1 January 2015).
AASB 9 addresses the classification, measurement and de-recognition of financial assets and financial liabilities. Adoption
of AASB 9 is only mandatory for the year ending 30 June 2016. The entity has not yet made an assessment of the impact
of these amendments.

AASB 10 Consolidated Financial Statements (effective for the annual reporting periods commencing on or after
1 January 2013).
AASB 10 introduces certain changes to the consolidation principles, including the concept of de facto control and
changes in relation to the special purpose entities. When this standard is first adopted for the year ended 30 June 2014,
there will be no impact on transactions and balances recognised in the financial statements because the entity does not
have any special purpose entities or because the new definition of control does not change the classification of any of the
entities investments in subsidiaries, joint arrangements or associates.

AASB 11 Joint Arrangements (effective for the annual reporting periods commencing on or after 1 January 2013).
AASB 11 introduces certain changes to the accounting for joint arrangements. Joint arrangements will be classified as
either joint operations (where parties with joint control have rights to assets and obligations for liabilities) or joint ventures
(where parties with joint control have rights to the net assets of the arrangement). Joint arrangements structured as a
separate vehicle will generally be treated as joint ventures and accounted for using the equity method. When this standard
is first adopted for the year ended 30 June 2014, there will be no impact on transactions and balances recognised in the
financial statements because the entity has not entered into any joint arrangements.

Peel mining limited AnnuAl RepoRt 2013notes to the consolidated financial statements
SeCtion 9

AASB 11 Joint Arrangements (effective for the annual reporting periods commencing on or after 1 January 2013).
This standard is applicable to annual reporting periods beginning on or after 1 January 2013. The standard defines which
entities qualify as joint ventures and removes the option to account for joint ventures using proportional consolidation.
Joint ventures, where the parties to the agreement have the rights to the net assets will use equity accounting. Joint
operations, where the parties to the agreements have the rights to the assets and obligations for the liabilities will account
for the assets, liabilities, revenues and expenses separately, using proportionate consolidation. The adoption of this
standard from 1 July 2013 will not have a material impact on the consolidated entity.

AASB 12 Disclosure of Interest in Other Entities (effective for the annual reporting periods commencing on or after
1 January 2013).
AASB 12 introduces new disclosure requirements for interests in associates and joint arrangements, as well as new
requirements for unconsolidated structured entities. As this is a disclosure standard only, there will be no impact on
amounts recognised in the financial statements. However, additional disclosures will be required for interests in associates
and joint arrangements, as well as for unconsolidated structured entities.

AASB 13 Fair Value Measurement (effective for annual reporting periods commencing on or after 1 January 2013).
AASB 13 establishes a single framework for measuring fair value of financial and non-financial items recognised at fair
value on the consolidated statement of financial position or disclosed in the notes to the financial statements. When this
standard is adopted for the first time for the year ended 30 June 2014, additional disclosures will be required about fair
values.

AASB 2012-9 Presentation of Financial Statements (effective for annual reporting periods commencing on or after
1 July 2013).
AASB 101, amended in June 2012, introduces amendments to align the presentation items of other comprehensive
income with US GAAP. The group will apply the amended standard from 1 July 2013. When this standard is adopted for
the first time for the year ended 30 June 2014, additional disclosures will be required about fair values. However, there will
be no impact on any of the amounts recognised in the financial statements.

AASB 2012-4 Amendments to Australian Accounting Standards – Remove individual Key Management Personnel
Disclosure Requirements (effective from 1 July 2013).
When this standard is first adopted for the year ended 30 June 2014 the Group will show reduced disclosures under Key
Management Personnel note to the financial statements.

AASB 2012-9 Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive
Income (effective from 1 July 2013).
AASB 2012-9 will align the presentation of items of other comprehensive income (OCI) with US GAAP. When this standard
is first adopted for the year ended 30 June 2013, there will be no impact on amounts recognised for transactions and
balances for 30 June 2013 (and comparatives).

AASB 119 Employee Benefits (effective for annual periods commencing on or after 1 January 2013)
Elimination of the ‘corridor’ approach for deferring gains/losses for defined benefit plans, actuarial gains/losses on
remeasuring the defined benefit plan obligation/asset to be recognised in OCI rather than in profit or loss, and cannot be
reclassified in subsequent periods, subtle amendments to timing for recognition of liabilities for termination benefits, and
employee benefits expected to be settled (as opposed to due to settled under current standard) within 12 months after the
end of the reporting period are short-term benefits, and therefore not discounted when calculating leave liabilities. Annual
leave not expected to be used within 12 months of end of reporting period will in future be discounted when calculating
leave liability. This standard has no impact as there are no annual leave provision amounts that are non-current. The group
will apply this from 1 July 2013.

AASB 2012-5 Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive
Income (effective periods commencing on or after from 1 January 2013).
When this standard is first adopted for the year ended 30 June 2013, there will be no material impact.

interpretation 20 Stripping costs in the Production Phase of a Surface Mine and AASb 2011-12 Amendments
to Australian Accounting Standards arising from interpretation 20
This interpretation and its consequential amendments are applicable to annual reporting periods beginning on or after 1
January 2013 The Interpretation clarifies when production stripping costs should lead to the recognition of an asset and
how that asset should be initially and subsequently measured. The Interpretation only deals with waste removal costs that
are incurred in surface mining activities during the production phase of the mine. The adoption of the interpretation and
the amendments from 1 July 2013 will not have a material impact on the consolidated entity.

Peel mining limited AnnuAl RepoRt 2013notes to the consolidated financial statements
SeCtion 9

(t) critical accounting estimates and judgements
The directors evaluate estimates and judgements incorporated into the financial report based on historical knowledge and
best available current information.

The Company makes estimates and judgements in applying the accounting policies. Critical judgements in respect of
accounting policies relate to exploration assets, where exploration expenditure is capitalised in certain circumstances.
Recoverability of the carrying amount of any exploration assets is dependent on the successful development and
commercial exploitation or sale of the respective areas of interest.

Capitalisation and carrying amount of capitalised mining license
The mining leases acquired are carried in the consolidated statement of financial position at cost. The directors have
determined that the acquisition cost approximates to the fair value of the asset.

Share-based payment transactions
The group measures the cost of equity-settled share-based payment transactions with employees by reference to the
fair value of the equity instruments at the grant date. The fair value is determined using a Black-Scholes model. The
accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the
carrying amounts of assets and liabilities within the next annual reporting period but may impact expenses and equity.

Impairment of capitalised exploration and evaluation expenditure
It is the group’s policy to capitalise costs relating to exploration and evaluation activities. The future recoverability of
capitalised exploration and evaluation expenditure is dependent upon a number of factors, including whether the group
decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation
asset through sale.

Factors that could impact future recoverability include the level of reserves and resources, future technological changes
which could impact the cost of mining, future legal changes (including changes to environmental restoration obligations)
and changes to commodity prices.

To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future,
profits and net assets will be reduced in the period in which the determination is made.

2. financial risk Management
overview
The Company and Group have exposure to the following risks from their use of financial instruments:
• Credit risk
• Liquidity risk
• Market risk

credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Group’s receivables from customers. The Group manages its credit
risk on financial instruments, including cash, by only dealing with banks licensed to operate in Australia and credit ratings
of AA.

Trade and other receivables
The Group operates in the mining exploration sector and does not have trade receivables. It is not exposed to credit risk in
relation to trade receivables.

Exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum
exposure to credit risk at the reporting date was:

Cash and cash equivalents

trade and other receivables

CARRyiNG AMOUNt – CONsOLiDAteD

NOte

2013 $

2012 $

6,360,673

212,913

629,049

30,883

Impairment losses
None of Group’s other receivables are past due. At 30 June 2013 the Group does not have any collective impairments on
its other receivables.

Peel mining limited AnnuAl RepoRt 2013notes to the consolidated financial statements
SeCtion 9

liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when
due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s
reputation. The Group manages liquidity by maintaining adequate reserves by continuously monitoring forecast and actual
cash flows.

Typically the Group ensures it has sufficient cash on hand to meet expected operational expenses for a period of 180
days, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that
cannot reasonably be predicted, such as natural disasters.

30 June 2013

trade and other payables

30 June 2012

trade and other payables

CARRyiNG AMOUNt
$

CONtRACtUAL
CAsH fLOWs $

CONsOLiDAteD

6MtHs OR Less $

405,936

374,277

190,337

Market risk
Market risk is the risk that changes in market prices, such as interest rates, foreign exchange rates and equity prices will
affect the Group’s income or the value of its holdings of financial instruments. The objective of managing market risk is to
manage and control market risk exposures to within acceptable limits, while optimising returns.
The Group does not have any risks associated with foreign exchange rates or equity prices.

interest rate risk
Interest rate risk is the risk that the Group’s financial position will be adversely affected by movements in interest rates that
will increase the costs of floating rate debt or opportunity losses that may arise on fixed rate borrowings in a falling interest
rate environment. The Group does not have any borrowings and is, therefore, not exposed to interest rate risk in this area.
Cash and cash equivalents at variable rates exposes the group to cashflow interest rate risk. The Group is not exposed to
fair value interest rate risk as all of its financial assets and liabilities are carried at amortised amount.

Profile
At the reporting date the interest rate profile of the consolidated entity’s interest-bearing financial instruments was:

Variable rate instruments

VARiABLe AVeRAGe
iNteRest RAte

CARRyiNG AMOUNt
2013

CONsOLiDAteD

CARRyiNG AMOUNt
2012

short term cash deposits

3.976%

6,360,673

629,049

Cash flow sensitivity analysis for variable rate instruments of the consolidated entity
At 30 June 2013 if interest rates had changed +/- 100 basis points from year end rates with all other variables held
constant, equity and post-tax loss would have been $14,759.28 lower (2012: $5,273).

fair values
The carrying values of all financial assets and financial liabilities, as disclosed in the statement of financial position,
approximate their fair values.

3. Revenue

interest received

Expenditure

Loss before income taxes includes the following

specific expenses:

superannuation

Operating lease payments

Directors fees

employee costs

2013 $

77,502

33,170

36,000

155,166

256,528

CONsOLiDAteD

2012 $

68,673

8,930

36,000

163,500

157,159

Peel mining limited AnnuAl RepoRt 2013notes to the consolidated financial statements
SeCtion 9

4. Income tax

income tax expense

Current tax

Deferred tax

numerical reconciliation of income tax expense to prima facie tax payable:

Loss from continuing operations before income tax

At the statutory income tax rate of 30% (2011: 30%)

Assessable income

expenditure not allowed for income tax purposes:

Assessable income

Non-deductible expenses

Deductible exploration expenditure

tax loss not brought to account

income tax benefit reported in the statement of comprehensive income

2013 $

(1,475,928)

(442,778)

1,500,000

179,028

(1,562,195)

325,946

CONsOLiDAteD

2012 $

(527,337)

(158,201)

158,201

The Group has tax losses arising in Australia of $ 9,345,662 (2012: $ 8,615,998) available indefinitely for offset against future profits of
the Group. No deferred tax asset has been recognised in respect of these losses at this point in time as the Group is still engaged in
exploration activities. In the year to 30 June 2013 the Group also had an unrecognised deferred tax asset in respect of equity raising
costs of $152,903 (2012: $86,627). The deferred tax liability arising from capitalised exploration costs and licence acquisitions have
been recognised and offset by the deferred asset balances above.

5. Cash and cash equivalents

Cash at bank and in hand

term deposit with a financial institution

Refer to Note 2 for the policy on financial risk management

6. Trade and other receivables

Gst recoverable from taxation authority

interest accrued on term deposits

No receivables are past due or impaired

7. Receivables (non-current)

security deposits on mining tenements

No receivables are past due or impaired

8. Plant and equipment

Plant and equipment

At cost

Less accumulated depreciation

Reconciliation

Carrying amount at beginning of year

Additions

Depreciation expense

Closing balance

9. Exploration assets

At cost

Reconciliations

Opening balance

Acquisition of exploration lease

Other exploration expenditure

impairment expense

Proceeds from farm out of exploration lease

Closing balance

2013 $

40,673

6,320,000

6,360,673

2013 $

189,930

22,983

212,913

2013 $

229,904

2013 $

377,013

148,923

228,090

86,855

179,151

(37,916)

228,090

2013 $

7,071,419

6,864,104

250,000

5,010,770

(53,455)

(5,000,000)

7,071,419

CONsOLiDAteD

2012 $

35,148

593,901

629,049

CONsOLiDAteD

2012 $

28,088

2,795

30,883

CONsOLiDAteD

2012 $

162,056

CONsOLiDAteD

2012 $

197,862

111,007

86,855

17,860

84,313

(15,318)

86,855

CONsOLiDAteD

2012 $

6,864,104

4,281,595

90,000

2,492,509

6,864,104

the recoverability of the carrying amount of the exploration and evaluation assets is dependent on the successful development and commercial
exploitation, or alternatively the sale, of the respective areas of interest.

During the year, stage-1 and stage-2 of the farm-in by CBH Resources Limited (CBH) to the Group’s Mallee Bull Project was completed. this saw CBH
pay the Group $1,000,000 as a re-imbursement for previous expenditure and contribute $4,000,000 to exploration on the project to earn an initial 30%.
these amounts have been included in the Groups Consolidated statement of Cashflows and Consolidated statement of financial Position, however
per the group’s accounting policy, the contributions are off-set against the expenditure incurred resulting in no gain or loss recognised (net effect) in the
capitalised exploration expenditure asset.

Peel mining limited AnnuAl RepoRt 2013notes to the consolidated financial statements
SeCtion 9

10. Subsidiary company

the consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting
policy described in note 1(b):

Name

Peel environmental services Limited

Apollo Mining Pty Ltd

11. Trade and other payables

trade payables

Accrued expenses & other payables

finance Lease

12. Contributed equity

(a) Share capital

Ordinary shares fully paid

(b) Movements in ordinary share capital

Opening balance, 1 july

shares issued pursuant to placement

shares issued pursuant to a ‘Rights issue’

shares issued as a result of exercise of options

transaction costs on share issues

Closing balance, 30 june

COUNtRy Of
iNCORPORAtiON

CLAss Of
sHARes

Australia

Ordinary

2013 $

299,260

43,009

63,307

405,936

eqUity HOLDiNG

2013 %

2012 %

100

CONsOLiDAteD

2012 $

137,809

52,528

190,337

NUMBeR Of
sHARes

CONsOLiDAteD AND PAReNt eNtity

2013

NUMBeR Of
sHARes

2012

129,871,683

17,136,805

110,571,683

10,089,725

110,571,683

16,400,000

10,089,725

6,986,000

87,757,315

7,384,925

21,964,368

750,000

100,000

2,635,724

90,000

8,000

(28,924)

400,000

32,000

(220,920)

129,871,683

17,136,805

110,571,683

10,089,725

shares issued as consideration for the acquisition of a mining/exploration
lease

2,500,000

250,000

Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of and
amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll each share is
entitled to one vote.

(d) Options

information relating to options issued during the year is set out in notes 13 and 24.

(e) Capital risk management

in employing its capital (or equity as it is referred to on the statement of financial position) the company seeks to ensure that it will be able to
continue as a going concern and in time provide value to shareholders by way of increased market capitalisation or dividends. in the current stage
of its development, the company has invested its available capital in acquiring and exploring mining tenements. As is appropriate at this stage, the
company is funded entirely by equity. As it moves forward to develop its tenements towards a production stage, the company will adjust its capital
structure to support its operational and strategic objectives, by raising additional capital or taking on debt, as is seen to be appropriate from time to
time given the overriding objective of creating shareholder value. in this regard, the board will consider each step forward in the development of the
company on its merits and in the context of the then capital markets, in deciding how to structure capital raisings.

13. Reserves

(i) Accumulated losses

Opening balance 1 July

Loss for the year

Closing balance, 30 June

(ii) Share-based payments reserve

Opening balance, 1 july

Option expenses (employee options)

Closing balance, 30 June

Nature and purpose of reserve

2013 $

(3,086,837)

(1,475,928)

(4,562,765)

579,722

543,301

1,123,023

CONsOLiDAteD

2012 $

(2,559,500)

(527,337)

(3,086,837)

579,722

the share-based payment reserve represents the fair value of equity benefits provided to Directors and employees as part of their remuneration for
services provided to the Company paid for by the issue of equity.

Peel mining limited AnnuAl RepoRt 2013notes to the consolidated financial statements
SeCtion 9

Share options and reserve movements

CONsOLiDAteD AND PAReNt eNtity

Opening balance, 1 July

expired during year

issued to employees and directors

exercised

Closing balance, 30 June

exercisable at 8 cents each on or before 30 March 2013

exercisable at 50 cents each on or before 28 November 2015

exercisable at 8 cents each on or before 31 july 2014

2013

579,722

OPtiONs

300,000

543,301

(100,000)

OPtiONs

200,000

3,100,000

(400,000)

2,900,000

1,123,023

2,500,000

400,000

200,000

2012

579,722

the expected life of the options is based on historical data and is not necessarily indicative of exercise patterns that may occur. the expected
volatility reflects the assumption that the historical volatility is indicative of future trends, which may also not necessarily be the actual outcome. No
other features of options granted were incorporated into the measurement of fair value (Note 24).

14. Remuneration

Amounts paid or due and payable to the auditors BDO Audit (WA) Pty Ltd:

Auditing or reviewing the financial report

Non-assurance services

15. Contingencies

2013 $

41,845

CONsOLiDAteD

2012 $

31,691

12,161

43,852

the Group has a contingent liability for the year ended 30 june 2013 due to Weddarla Pty Ltd for the purchase of a tenement. the liability is for
shares to the value of $775,000, at a deemed price to be determined upon completion of the condition precedent being Ministers approval for the
transfer to occur. the group had no contingent assets or liabilities for 2012.

16. Expenditure commitments

Under the terms of mineral tenement licences held by the company, minimum annual expenditure obligations are required to be expended during
the forthcoming financial year in order for the tenements to maintain a status of good standing. this expenditure may be subject to variation from
time to time in accordance with Department of industry and Resources regulations.
expenditure commitments contracted for at the reporting date but not recognised as liabilities are as follows:

Within one year

Later than one year but not later than five years

Later than five years

17. Segment Information

2012 $

1,174,880

1,671,140

20,000

2,866,020

CONsOLiDAteD

2013 $

278,793

444,960

69,000

792,753

Management has determined that the Group has one reportable segment, being mineral exploration within Australasia. the Group is focused only
on mineral exploration and the Board monitors the group based on actual versus budgeted exploration expenditure incurred. this internal reporting
framework is the most relevant to assist the Board with making decisions regarding the Group and its ongoing exploration activities, while also
taking into consideration the results of exploration work that has been performed to date.

CONsOLiDAteD

Revenue from external sources

Reportable segment (loss)

Reconciliation of reportable segment (assets)

Reportable segment assets

Cash

Unallocated segment Assets

Total Assets

Reconciliation of reportable segment (loss)

Reportable segment (loss)

Other revenue

Unallocated: – Corporate expenses

Loss before tax

2013 $

(91,371)

7,299,509

6,360,673

442,817

14,102,999

(91,371)

77,502

(1,462,059)

(1,475,928)

2012 $

(17,292)

6,950,959

629,049

192,939

7,772,947

(17,292)

68,673

(578,718)

(527,337)

Peel mining limited AnnuAl RepoRt 2013notes to the consolidated financial statements
SeCtion 9

18. Related parties

Transactions with related parties
During the year Peel Mining Limited and its subsidiaries (see note 10) had no transactions with related parties other than the transactions shown in
note 23.

19. Events occurring after the Reporting date

Settlement of Wirchiliba

settlement of Wirchiliba station, on which Peel Mining Limited’s flagship Mallee Bull project is located, was completed on 30 August 2013. Peel
Mining Limited acquired 7974 ha land for $720,000 (after previously taking out an $80,000 option on the land) to secure access to the Mallee Bull
project going forward.

Stage 3 of Mallee Bull Farm-in Agreement with CBH Resources commences

stage 3 of the Mallee Bull farm-in agreement with CBH Resources Limited commenced, with $600,000 in cash calls being paid between balance
date and the date of this report.
Sandy Creek acquisition complete

Peel Mining Limited completed the acquisition of the sandy Creek tenement from Weddarla Pty Ltd, for 2,214,286 ordinary Peel Mining shares on
the 2nd August 2013.
No other matters or circumstances have arisen since the end of the financial period which significantly affected or may significantly affect the
operations of the group, the results of those operations or the state of affairs of the group in future financial years.

20. Reconciliation of the cash flows from operating activities to
loss after income tax

CONsOLiDAteD

Net cash outflow from operating activities

share-based payments

Depreciation

impairment

Change in operating assets and liabilities

increase in receivables

Decrease/(increase) in payables

Loss after income tax

21. Non-cash investing and financing activities

Acquisition of a exploration lease by issue of:

2,500,000 ordinary shares at 10 cents each

750,000 ordinary shares at 12 cents each

Acquisition of plant and equipment by means of finance lease

22. Loss per share

Basic loss per share

Loss from continuing operations attributable to the ordinary equity holders of the company

Reconciliation of loss used in calculation of earnings per share

Loss used in calculating basic loss per share

Weighted average number of shares used as the denominator

Weighted average number of shares used in calculating basic earnings per share

2013 $

(952,855)

(543,301)

(37,916)

(53,455)

182,030

(70,431)

(1,475,928)

2013 $

250,000

69,790

2012 $

(450,743)

(15,318)

(41,106)

(20,170)

(527,337)

CONsOLiDAteD

2012 $

90,000

CONsOLiDAteD

2013 $

(0.013)

2012 $

(0.005)

(1,475,928)

(527,337)

CONsOLiDAteD

NUMBeR Of
sHARes 2013

NUMBeR Of
sHARes 2012

114,709,183

101,132,746

Effect of dilutive securities
Options on issue at reporting date could potentially dilute earnings per share in the future. the effect in the current year is to reduce the loss per
share hence they are considered anti-dilutive. Accordingly the diluted loss per share has not been disclosed.

23. Key Management Personnel Disclosures

(a) Compensation of key management personnel

short-term employee benefits

Post-employment benefits

Long-term benefits

share-based payments

(b) Shares issued on exercise of compensation options

there were no shares issued on exercise of compensation options during the year by key management pesonnel.

CONsOLiDAteD

2013 $

2012 $

435,742

39,952

534,534

381,843

34,366

1,010,228

416,209

Peel mining limited AnnuAl RepoRt 2013notes to the consolidated financial statements
SeCtion 9

30 jUNe 2013

Directors

R tyson

s Hadfield

G Hardie

C McGown*

Executives

R Woodhouse

D Hocking

BALANCe At
tHe stARt Of
tHe yeAR

GRANteD As
COMPeNsAtiON

exPiReD
DURiNG yeAR

exeRCiseD

OtHeR
CHANGe*

BALANCe At
eND Of tHe
yeAR

VesteD AND
exeRCisABLe

UNVesteD

100,000

1,000,000

500,000

200,000

100,000

(500,000)

1,000,000

500,000

200,000

100,000

All vested options are exercisable at the end of the year.
*Holding as per date of retirement on the 8th April 2013

30 jUNe 2012

Directors
Executives

D Hocking

BALANCe At
tHe stARt Of
tHe yeAR

GRANteD As
COMPeNsAtiON

exPiReD DURiNG
yeAR

exeRCiseD

BALANCe At
eND Of tHe
yeAR

VesteD AND
exeRCisABLe

UNVesteD

100,000

All vested options are exercisable at the end of the year.

(d) Share holdings of Directors – Shares in Peel Mining Limited (number)

30 jUNe 2013

Directors

G Hardie

R tyson

s Hadfield

BALANCe At
1 jULy 2012

ReCeiVeD DURiNG
tHe yeAR ON tHe
exeRCise Of OPtiONs

OtHeR CHANGes
DURiNG tHe yeAR

BALANCe At
30 jUNe 2012

15,029,095

7,000,000

4,812,564

293,795

15,322,890

7,000,000

4,812,564

Of the balance at 30 june 2012, the amounts held nominally in respect of each director are: R tyson 4,500,000 and s Hadfield 1,250,000.

30 jUNe 2012

Directors

G Hardie

R tyson

s Hadfield

C McGown

BALANCe At
1 jULy 2011

ReCeiVeD DURiNG
tHe yeAR ON tHe
exeRCise Of OPtiONs

OtHeR CHANGes
DURiNG tHe yeAR

BALANCe At
30 jUNe 2012

12,023,276

5,000,000

3,710,051

1,500,000

3,005,819

2,000,000

1,102,513

375,000

15,029,095

7,000,000

4,812,564

1,875,000

Of the balance at 30 june 2012, the amounts held nominally in respect of each director are: R tyson 4,500,000 and s Hadfield 1,250,000.

(e) Other transactions with key management personnel

simon Hadfield, is a director of Resource information Unit Pty Ltd (RiU). RiU provides head office accommodation and secretarial services and
charges the Company management fees on a monthly basis. total fees charged to the Company by RiU for the year ended 30 june 2013 were
$36,000 (2012: $36,000). During the year the Company placed advertisements to the value of $9,300 (2012: $5,100) in a publication owned and
operated by RiU and participated in conferences, to the value of $20,000 (2012: $13,744) organised by RiU Conferences Pty Limited, another
company of which Mr Hadfield is a director. these amounts are included in loss for the year within administration expenses and on the statement of
financial position within trade and other payables at year end.

Aggregate amounts of each of the above types of other transactions with key management personnel of Peel Mining Limited:

Amounts recognised as expense

Management fees – rental