THOR ENERGY PLC — Capital/Financing Update 2015

Mar 22, 2015

ASX Code: "THR"

THOR

MINING PLC

Date: 23 March 2015

Company Announcements Office,
ASX Securities Limited,
20, Bridge Street,
Sydney, N.S.W. 2000

MOLYHIL TUNGSTEN PROJECT UPDATE

The Board of Thor Mining Plc ("Thor") (AIM, ASX: THR) is pleased to advise the appointment of corporate advisors to Thor for the purpose of securing project finance for the advanced Molyhil Tungsten Project, in Australia's Northern Territory.

London-based Grant Thornton UK LLP Corporate Finance has been mandated to introduce parties and lead discussions with a view to securing finance necessary for project development. A number of suitable parties have been introduced and several of these are conducting reviews of the Molyhil Tungsten Project and of Thor.

Similarly, Brookville Capital Limited and its Australian associate Grand Private Equities Pty Ltd have also been appointed to make capital introductions.

In addition, further to recent disclosure in respect of the Molyhil Feasibility Study and the project's current JORC 2012 reserve of 3.0Mt @ 0.31% WO₃, Thor is pleased to advise on a number of potential mine life extensions from nearby Exploration Targets* and project optimisation upside.

*Exploration Targets are conceptual in nature and there has been insufficient exploration to define a Mineral Resource under the JORC Code and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Table 1: Molyhil Project Extension Potential Summary

Source	Tonnage (Mt)	% WO₃	Comment
Project Optimisation	0.3 - 0.5	0.3 - 0.4	Improved resource to reserve conversion of existing Molyhil.
Exploration Targets*	6.0 - 12.0	0.3 - 0.5	Exploration targets based on proximity to known mineralisation, favourable geology and/or geophysical signature.
Total	6.3 - 12.5	0.3 - 0.5

Figure 1: Molyhil project location

Mr Mick Billing,
Executive Chairman of Thor Mining:

"We believe the Molyhil project is robust and we are pleased to have secured the services of these eminently qualified advisors, and that a number of entities are conducting a review. Project payback of 18 months is very positive, and even at the low point of tungsten pricing for the past 4 years, that payback period is still no more than 2 years. In addition the potential for a substantially longer life operation via the exploration targets identified is significant and we look forward to developing these."

THOR MINING PLC

Registered Numbers:
United Kingdom 05 276 414
Australia 121 117 673

Registered Office:
58 Galway Avenue,
MARLESTON SA, 5033
Australia

Postal Address:
PO BOX 458
MARLESTON SA, 5033
Australia

Ph: +61 8 7324 1935
Fax: +61 8 8351 5169

Email:
corporate@thormining.com

Website:
www.thormining.com

Enquiries:
Mick Billing
Executive Chairman
Thor Mining PLC
+61 8 7324 1935

Nominated Advisor
Colin Aaronson
Grant Thornton
+44 (0) 20 7383 5100

ASX Listings:
Shares: THR

AIM Listings:
Shares: THR

Directors:
Michael Billing
Michael Ashton
Gregory Durack
Trevor Ireland
David Thomas

Projects:
- Tungsten
Molyhil NT
Pilot Mountain USA
- Gold
Spring Hill NT
Dundas WA

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ASX Code: "THR"

THOR

Date: 23 March 2015

Table 2: Molyhil Tungsten Project Extension Opportunities

	Prospect	Target Range	Comment
Improved Reserve Conversion	Molyhil Resource	0.2-0.4Mt @ 0.2-0.4%WO₃	Reserve conversion enhancements via project optimisation accessible by open cut mining.
Exploration Targets*	Molyhil Resource Extension Discovery	0.1-0.2Mt @ 0.2-0.4%WO₃	Future drilling discovery of resource extensions accessible by open cut mining.
	Molyhil underground	2 - 4 Mt @ 0.4-0.6%WO₃	Target identified by unconstrained 3D magnetic modelling. Access by underground mining
	Stockyard EL22349	1 - 2Mt @ 0.2-0.4%WO₃	Geology/Magnetic targets
	Solar Farm EL22349	1 - 2Mt @ 0.2-0.4%WO₃	Geology/Magnetic targets
	Gap Track EL22349	1 - 2Mt @ 0.2-0.4%WO₃	Geology/Magnetic targets
	Think Big EL22349	1 - 2Mt @ 0.2-0.4%WO₃	Geology/Magnetic targets
Total project extension potential 6.0 - 12.6Mt @ 0.3-0.5%WO₃

Improved Reserve Conversion

Conversion of additional Molyhil resource to reserve is proposed as a result of future project optimisation including; operating cost reductions, improved process recoveries and pit design. The range of this potential is estimated to be in the order of 10% of the existing Mining Reserve.

Molyhil Resource Extension Discovery

There is good discovery potential for additional mineralisation extensional to the existing Molyhil resource from future drilling. The unit cost of drilling will drop once a permanent facility is established at the site which will allow the more exhaustive drill testing of the margins of the current resource.

Nearby Magnetic Targets

Molyhil resource was discovered in 1976 by drilling a magnetic target under shallow sediment cover. The four exploration targets listed above; Stockyard, Solar Farm, Gap Track & Think Big (Table 2) and shown below in figure 2 comprise untested magnetic targets in the vicinity of the Molyhil resource. The Molyhil area is largely blanketed under shallow (1-10metres) transported sediment preventing earlier discovery by surface prospecting. In addition the four magnetic anomalies share the Molyhil structural setting thus enhancing the potential for the discovery of Molyhil style mineralisation.

The as yet untested anomalies; Stockyard, Solar Farm, Gap Track & Think Big have been conservatively assigned Exploration Target values in the range of one quarter of the Molyhil resource.

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ASX Code: "THR"

THOR

MINING PLC

Date: 23 March 2015

Figure 2: Structural and magnetic drill targets associated with the Molyhil tungsten mineralisation.

Molyhil Underground

A fifth magnetic target has been identified via unconstrained 3D magnetic modelling of the high resolution magnetic data collected over the area of the Molyhil Mine. This target is located at depth beneath the existing Molyhil resource and proposed mine. Drill testing of this target for a potential underground resource will be undertaken once project development is underway. The exploration target value has been set at between 2 and 4 Million tonnes comparable with the existing Molyhil resource.

Figure 3: Molyhil Magnetic modelling

The Molyhil Mineral Resource is summarised in Table 3 Below:

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ASX Code: "THR"

THOR

MINING PLC

Date: 23 March 2015

Competent Person's Report

The information in this report that relates to exploration results is based on information compiled by Richard Bradey, who holds a BSc in applied geology and an MSc in natural resource management and who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Bradey is an employee of Thor Mining PLC. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Richard Bradey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Table 3: Summary of Molyhil Mineral Resource Estimate: (Reported on 30 January 2014)

Classification	Resource Tonnes	WO₃		Mo		Fe
		Grade %	Tonnes	Grade %	Tonnes	Grade %
Indicated	3,820,000	0.29	10,900	0.13	4,970	18.8
Inferred	890,000	0.25	2,200	0.14	1,250	15.2
Total	4,710,000	0.28	13,100	0.13	6,220	18.1

Notes
- Compliant with JORC 2012
- Thor Mining PLC holds 100% equity interest in this resource
- Mineral Resource reported at 0.1% combined Mo + WO₃ Cut-off and above 200mRL only
- Minor rounding errors may occur in compiled totals

The Molyhil Open Cut Ore Reserve Statement is summarised in Table 4 below

Table 4: Molyhil Open Cut Ore Reserve Statement (Reported on 29 July 2014)

Classification	Reserve '000 Tonnes	WO₃		Mo
		Grade %	Tonnes	Grade %	Tonnes
Probable	3,000	0.31	9,200	0.12	3,600
Total	3,000	0.31	9,200	0.12	3,600

Notes:
- Compliant with JORC 2012
- Thor Mining PLC holds 100% equity interest in this reserve
- Estimate has been rounded to reflect accuracy
- All estimates are on a dry tonne basis
- The reserve estimate extends to a maximum depth below surface of 150 metres

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ASX Code: "THR"

THOR

MINING PLC

Date: 23 March 2015

Table 5: Molyhil Feasibility Study Key Features

Project NPV post tax & Royalties	A$67 million
Project IRR after tax & royalties	44%	All Equity Case
Project Capex	A$70 million	All Equity Case
Life of Mine C1 Cash Cost	US$112/mtu
Life of Mine EBITDA	A$201 million
Payback from 1st production	18 months
Project Life	6 years
Average feed grade	0.31% WO₃	0.41% WO₃ after ore sorting
	0.12% Mo	0.12% Mo after ore sorting
Operating throughput
Crushing & Sorting	500,000 tpa
Milling/Flotation etc	400,000 tpa	After ore sorting
Annual Production Average	130,000 mtu *	Approximately 1.3% of global market
* 1mtu = 10Kg of contained WO₃

For further information, please contact:

THOR MINING PLC

Mick Billing

Executive Chairman

+61 8 7324 1935

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