New Shallow Gold Mineralisation At Peel Exploration Limited (ASX:PEX) Kensington

Perth, Oct 12, 2010 AEST (ABN Newswire) - Peel Exploration Ltd (ASX:PEX) is pleased to announce that recent shallow RAB drilling at the Kensington prospect within the Company's Attunga project has yielded encouraging new gold mineralisation. The Attunga project lies within EL6884, approximately 20 kilometres north of Tamworth, and is 100%-owned by Peel Exploration.

Better results from recent drilling at Kensington include the following intercepts:

- 24.5m at 0.74 g/t Au from 1.5m including 13m at 1.02 g/t Au from 13m* in KRAB006;
- 12m at 0.61 g/t Au from 13m in KRAB014; and

- 14m at 1.78 g/t Au from 17m including 4m at 2.94 g/t Au from 21m in KRAB019.

It should be noted that mineralisation remained present at the end of the holes in drillholes KRAB006 and KRAB019. Peel designed the shallow RAB drilling programme at Kensington to target tungsten and gold mineralisation. Historic data reported the presence of a large, shallow, low grade tungsten occurrence. While the drilling completed to date has returned only low order tungsten mineralisation, Peel is encouraged by the intersection of new shallow gold mineralisation.

The results from this RAB drilling provide further evidence of substantial gold mineralisation at Kensington and have highlighted the potential of the system to yield a shallow gold resource target. Previous drilling at Kensington included an RC programme by Peel in 2008 and a diamond drilling programme completed in 1987. Both of these programmes intercepted wide zones of low grade gold mineralisation including several areas of higher grade.

A follow-up RAB drill programme to better define possible shallow mineralised extensions at Kensington is now underway, incorporating a limited RAB programme at the Kensington NW gold prospect, some 2km to the northwest. Rock chip sampling at Kensington NW has previously returned anomalous gold values up to 1 g/t gold associated with an outcropping breccia system.

Gold mineralisation at Kensington occurs within a package of structurally deformed sediments and remains open along strike to the northwest and southeast, and down dip.

For the complete Peel Exploration Limited announcement including figures and tables, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/63921-ASX-PEX-508999.pdf

Contact

Peel Mining Limited T: +61-8-9382-3955 F: +61-8-9388-1025 E: info@peelex.com.au WWW: www.peelex.com.au