EL 6613 covers an area of approximately 126 square kilometres and is located 300 kilometres north of Sydney in the New England Fold Belt of eastern Australia, or about 15 kilometres east of Tamworth, New South Wales. Within EL 6613, there are two specific project areas of interest; numerous historic copper mines/workings in the vicinity of Dungowan as well as a number of historic gold workings in the vicinity of Limbri.

The licence area is considered prospective for polymetallic VHMS mineralisation, syngenetic (volcanic-related), exhalative gold mineralisation, and epigenetic structurallycontrolled gold mineralisation related to regional deformation, metamorphism and granite-intrusive phases.

Dungowan Prospect

The Dungowan project area, in the central portion of the EL 6613, is host to numerous historic copper mines and workings. The most significant copper deposits - Fishers (also known as Dungowan), Trough Gully, Mulla Creek, Woolomin, and Mt Pleasant - were mostly worked about the turn of the 20th Century, and appear to represent polymetallic VHMS mineralisation.

The polymetallic (copper-zinc-silver-gold) deposits all share common characteristics indicating a common origin. They are largely conformable with the enclosing sediments and volcanics, occurring as lenses (either singly or in groups) measuring up to 60 metres long and up to 4 metres thick, and extending down to at least 40 metres. The sulphide lenses are invariably closely associated with mafic volcanics, jaspers and cherts. Development of supergene enriched copper zones (chalcocite) is a feature of the Mulla Creek and Fishers deposits.

Fishers (aka Dungowan) copper mine was worked between 1899-1900, and 1968-1974 for reported production of 2,643 tonnes at an average grade of 13.4% copper. The main lode (Cathedral stope) was reportedly at least 23m long and up to 3m wide. A series of exploration programmes (including New South Wales Geological Survey investigations) completed in the late 1960s/early 1970s culminated in drilling in 1972 comprising 11 holes for 382m. Peel Exploration believes that the drilling insufficiently tested the deposit - the deepest hole being 56m. No significant exploration has been completed since that time.

Trough Gully copper mine was worked between 1899-1916 for reported production of 2,752 tonnes ore. Workings were reportedly up to 14 ft in width, at least 140 ft in length and 100 ft in proven depth. The lode finished in mineralisation and remains open to the north, south and down dip. Eight underground channel samples taken by the New South Wales Geological Survey returned average grades of 2.2% copper, 1.2% zinc, 13ppm silver, and trace gold. Figure 2 - EL 6613 Location, Geology and Mineral Deposits 14

Mulla Creek copper mine was worked between 1911-1913 for secondary copper ore, with further driving and sinking between 1968-1979. The copper mineralisation is believed to extend over a strike length of 150m.

Woolomin copper prospect was worked between 1910-1912 for secondary copper while Mt Pleasant copper prospect also produced minor secondary copper.

Peel Exploration believes that these historic copper deposits are highly prospective for economic polymetallic VHMS mineralisation. The close proximity of the deposits indicates a strong metallogenic environment, and provides the opportunity to define multiple small-medium sized, high grade polymetallic orebodies.

Limbri Prospect

The Limbri project area in the northern end of EL 6613 comprises a series of historic gold workings (some with associated manganese) which appear to be hosted by jasperoidal chert horizons of the Woolomin Beds. The chert horizons that host the gold mineralisation can extend for hundreds of metres to kilometres along strike, and therefore represent potentially large target areas. The Limbri area has been subject to some small-scale mining during the early to mid 1900s. A number of small gold plus manganese workings occur around the town of Limbri and gold anomalous sedimentary rocks (mainly cherts and jaspers) have been reported in the area by previous explorers.

Peel Exploration believes that the Limbri area is potentially prospective for syngenetic (volcanic-related), exhalative gold mineralisation; and/or epigenetic structurallycontrolled gold mineralisation related to regional deformation, metamorphism and granite-intrusive phases. The Company believes that the area has not been adequately tested and holds potential for economic gold mineralisation