Peel Mining Limited (ASX:PEX) Report Strong Off-Hole Anomaly at 4-Mile Silver-Lead-Zinc Discovery

Perth, June 29, 2011 AEST (ABN Newswire) - Peel Mining Limited (ASX:PEX) is pleased to report the identification of a strong off-hole EM anomaly at its recent 4-Mile silver-lead-zinc discovery. 4-Mile is located within Peel's 100%-owned May Day-Gilgunnia project (EL7461), about 100km south of Cobar, NSW.

The DHEM survey was undertaken following the completion of a second round of RC drilling at 4-Mile. This RC drilling was designed to follow-up significant silver-lead-zinc-gold-copper mineralisation intersected in an initial round of drilling in March/April 2011 (see ASX announcement - 06.05.2011). The DHEM survey was carried out on drillhole 4MRC004 (6413351N; 415241E; -65o dip toward 090o true; final depth 255m). Assays for 4MRC004and 4MRC005 remain outstanding.

The off-hole anomaly is interpreted to be caused by a flat-lying high conductance source, located about 40 metres northwest and about 190m downhole of 4MRC004. The estimated time constant of the conductor is about 13 milliseconds.

Peel is planning to undertake a third round of drill testing at 4-Mile commencing next week. Drilling will target the off-hole conductor.

About 4-Mile silver-lead-zinc discovery

4-Mile is located about 10 km east of Peel's May Day gold-silver-lead-zinc deposit. In March/April, Peel completed three RC drillholes at 40 metre spacing on an east-west line targeting a newly-recognised coincident EM and magnetic geophysical anomaly located within the historic 4-Mile goldfield. This drilling resulted in the discovery of significant silver-lead-zinc mineralisation with better assays including: 4MRC001 - 5m @ 21 g/t Ag, 0.15 g/t Au, 0.27 % Cu, 0.87% Pb, 1.88% Zn from 194m; 4MRC002 - 5m @ 11 g/t Ag 0.15 g/t Au, 1.28% Pb, 2.1% Zn from 138m; and 4MRC003 - 10m @ 24 g/t Ag, 0.09 g/t Au, 1.17% Pb, 2.2% Zn from 110m.

Contact

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