Peel Mining Limited (ASX:PEX) Receives Positive Gold Results From Apollo Hill Gold Project

Perth, June 28, 2011 AEST (ABN Newswire) - Peel Mining Limited (ASX:PEX) is pleased to report that recent drilling completed at its 100%-owned Apollo Hill gold project has returned numerous significant gold mineralised intercepts, with gold intersected in all drillholes. Significant drill results are listed in Table 1 (see link at the bottom of the release).

In April/May 2011, Peel completed an approximately 3,600 metre RC and diamond drilling programme that was designed to provide representative gold-mineralised material for additional metallurgical testwork; and to increase sample density to allow for the extension of the Apollo Hill resource model. Results contained herein are for the RC part of the drilling programme which represents the bulk of the drilling completed, with diamond drilling results still awaited.

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. Peel anticipates a revised resource estimate for Apollo Hill will be completed by August.

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.

About Apollo Hill

In November 2010, Peel became the 100%-owner of the Apollo Hill gold project in the North Eastern Goldfields of Western Australia. The Apollo Hill gold project comprising about 120 km2 of granted tenure and about 240 km2 of tenure under applications, is located 60 kilometres southeast of Leonora, and is focused on the advanced Apollo Hill gold deposit, an extensively mineralised gold system.

In December 2010, Peel reported a maiden resource estimate for the Apollo Hill and Ra deposits. The highlights of this work were: an inferred 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 is 150m below surface; the 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; and good potential exists to increase resources with minimal further drilling.

Apollo Hill and Ra Deposits

At Apollo Hill, two zones of mineralisation have been identified: West (or Main) Zone and the East Zone. The current resource extends for 600m in strike length and Peel expects to increase this to the south-east (grid south) with recently completed drilling. The gold mineralisation dips to the north-east at 45-60 degrees and is accompanied by quartz veins and carbonate-pyrite alteration associated with a structurally deformed mafic-felsic lithological contact. Mineralisation is present at surface.

The Ra gold deposit is covered by a layer of transported material, with mineralisation hosted by dolerite rock and dipping 30-60 degrees to the northeast. The current resource at Ra has a strike length of approximately 300m with mineralisation open along strike and at depth.

For the complete Peel Mining announcement including drillhole data tables, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/546807.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