Peel Exploration Limited (ASX:PEX) Places Additional Shares To Satisfy Strong Demand

Perth, Dec 24, 2010 AEST (ABN Newswire) - Peel Exploration Limited (ASX:PEX) is pleased to announce that its recent rights issue to raise approximately A$1.5 million has closed fully subscribed.

However, to satisfy strong demand from investors wishing to take up the shortfall from the rights issue, the Directors today made a placement under ASX Listing Rule 7.1 of an additional 10.7 million shares at 7 cents, the same price as the rights issue, to raise a further A$752,000. The placement was made to a group of sophisticated investors.

The total amount raised from the rights issue and placement was approximately A$2.3 million. Funds raised will be used to continue and accelerate exploration work on Peel's newly acquired Apollo Hill gold project, May Day gold-lead-zinc project and its high-grade Attunga tungsten-molybdenum project.

Two weeks ago the Company announced a maiden resource estimate for Apollo of 11.1 Mt at 1.0 g/t Au for 341,000 ounces of gold (using 0.5 g/t gold cut off). The deposit, located 50 kilometres south-east of Leonora, extends from surface and the maximum depth of the resource estimate is 150m. It remains unexploited. Directors believe there is potential to increase the resource with minimal further drilling. An IP survey is scheduled for January 2011 with drilling planned to start in March 2011. Initial planning for a scoping study into the Apollo Hill project is under way.

Further exploration will also be carried out at the high-grade Attunga tungsten-molybdenum deposit near Tamworth in NSW where Peel has outlined a resource of 1.29 Mt at 0.61% WO3, and also at the May Day gold-lead-zinc deposit near Cobar where mineralisation remains open.

At Attunga, Peel is currently involved in discussions with a potential investor regarding a more rapid advancement of the project, which remains open at depth and along strike. Directors believe the high-grade nature of the deposit, its proximity to excellent infrastructure and services, and the potential for further discoveries, bodes well for its development potential.

Contact

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