THOR ENERGY PLC — Interim / Quarterly Report 2019

Feb 28, 2019

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RNS Number : 4194R

Thor Mining PLC

28 February 2019

28 February 2019

THOR MINING PLC

Half-Yearly Report for the six months ended 31 December 2018

HIGHLIGHTS

·   Molyhil Tungsten and Molybdenum Project (Australia): Completion of an upgraded Definitive Feasibility Study (DFS) demonstrated; a low capital investment, and operating costs in the lowest quartile, driving attractive returns and a very early return on capital.

·   Completion of the acquisition of an interest in the nearby Bonya tenements with 13 outcropping tungsten deposits, plus the small Bonya copper resource, providing significant potential to extend the profitable life of the proposed Molyhil operation.

·   Pilot Mountain Tungsten Project (USA): Scoping Study released in September 2018, indicates potential for a profitable 12-year mine life, while a revised mineral resource estimate boosted tungsten resources, and included zinc for the first time.

·   Kapunda Copper (Australia): Substantial CRCP research grant for the Australian Commonwealth Government, along with demonstration of project proof of concept.

REVIEW OF OPERATIONS

COMMODITY PRICES

Tungsten pricing fell by approximately 20% early in the half year, then settled at between US$260/mtu and US$270/mtu.  Despite this reduction the Molyhil project remains very well positioned with expected production costs of US$90/mtu, in the first quartile of global production costs.  Molybdenum pricing has maintained the gains made in early 2018, and continues to sit in the US$11/lb to US$12/lb range.

Molyhil Tungsten/Molybdenum project (NT, Australia) (100% Thor)

The Molyhil project is located 220 kilometres north-east of Alice Springs (320km by road).

In August 2018, Thor announced an updated definitive feasibility study DFS for its wholly-owned Molyhil tungsten project, with robust outcomes.

A full background on the project is available on the Thor Mining website www.thormining.com/projects .

Table A. Molyhil DFS Key Features (announced 23 August 2018)

http://www.thormining.com/-/thor/lib/docs/asx%20releases/20180823%20ASX%20Molyhil%20DFS.pdf

Project NPV (@5%) post tax & royalties	A$101 million	All Equity Case
Project IRR post tax & royalties	59%	All Equity Case
Project finance requirement	US$43million
Project Capex	A$69 million
Break even APT tungsten price	US$230/mtu
Life of Mine C1 Cash Cost	US$90/mtu
Life of Mine EBITDA	A$239 million
Payback from 1st production	< 18 months
Project Life	7 years	Potential for underground extension plus Bonya
Average feed grade	0.29% WO₃	0.48% WO₃ after ore sorting
	0.12% Mo	0.20% Mo after ore sorting
Operating throughput Crushing & Sorting Milling/Flotation etc	531,000 tpa 324,000 tpa	After ore sorting
Annual Production Average	125,000 mtu *	Approximately 1.2% of global market * 1mtu = 10Kg of contained WO₃

Following the completion of the DFS, the Company has appointed a Corporate Advisor to assist with finalising offtake agreements for the scheelite and molybdenite concentrates, and with project financing.

Bonya (Tungsten, Copper, Vanadium)

Thor completed the acquisition of an interest in the Bonya licence area close to Molyhil during the period.    An initial drilling program is expected to commence March 2019.

During the period, the Company announced a maiden resource estimate for the Bonya copper deposit of 230,000 tonnes, grading 2.0% Copper (Cu), containing 4,600 tonnes of copper.

Table B: Bonya Copper Inferred Resource Estimate - Announced 26 November 2018

BONYA COPPER		Resource	Copper
000t	Grade %	Contained metal (t)
Inferred	Oxidised	20	1.0	200
	Fresh	210	2.0	4,400
	Sub-Total	230	2.0	4,600

Note:

·     40% owned by Thor Mining Plc

·     The Company is not aware of any changes which could affect this resource estimate

Pilot Mountain Tungsten project (Nevada, USA) (100% Thor)

The Pilot Mountain Project, acquired in 2014, is located approximately 200 kilometres ("km") south of the city of Reno and 20km east of the town of Mina located on US Highway 95. 

The Pilot Mountain Project is comprised of four tungsten deposits: Desert Scheelite, Gunmetal, Garnet and Good Hope.  All are in close proximity, approximately three km, of each other and have been subjected to small-scale mining activities at various times during the 20th century.

A full background on the project is available on the Thor Mining website www.thormining.com/projects.

Pilot Mountain Scoping Study (announced 6 September 2018)

www.thormining.com/-/thor/lib/docs/asx%20releases/20180907%20Pilot%20Mountian%20Scoping%20Study.pdf

Table C: Desert Scheelite production supplemented with 120,000 tpa from Garnet and improved recovery and cost factors

		Net Pre-Tax Income (US$ million)	Opex - US$/mtu produced	Payback Period
Base Case		US$125	242	36 months
Add Contribution from Garnet	120,000tpa ore	US$202	215	18 months
Scheelite Recovery - 85% improvement plus Garnet	85% recovery	US$297	182	15 months
Mining costs 15% lower with higher volumes	15%	US$317	171	12 months

Table D: Pilot Mountain Resource Summary 2018 - Announced 13 December 2018

	Resource		WO3			Ag			Cu		Zn
		MT	Grade %	Contained metal (t)		Grade g/t		Contained metal (t)	Grade %	Contained metal (t)	Grade %		Contained metal (t)
Garnet	Indicated		-	-
Inferred	1.83	0.36	6,590
	Sub Total	1.83	0.36	6,590
Desert Scheelite	Indicated	9.01	0.26	23,400		20.73		187	0.15	13,200	0.41		37,100
Inferred	1.69	0.25	4,300		12.24		21	0.16	2,800	0.19		3,200
	Sub Total	10.70	0.26	27,700		19.38		207	0.15	16,000	0.38		40,300
Summary	Indicated	9.01	0.26	23,400
Inferred	3.53	0.31	10,890
Pilot Mountain Total		12.53	0.27		34,290

Note:

·  100% owned by Thor Mining PLC

·  All figures are rounded to reflect appropriate levels of confidence.  Apparent differences may occur due to rounding

·  Cut-off grade 1,500ppm WO₃

·  The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.

Kapunda Copper Project (SA Australia - Thor earning into 45% effective interest)

The Company is earning a 45% effective interest in the Kapunda Copper Project in South Australia, via an agreement to earn up to a 60% interest in a newly incorporated private Australian company, Environmental Copper Recovery SA Pty Ltd. ("ECR"), initially via convertible loan notes of up to A$1.8 million, which will be used to fund field test work and feasibility activities at Kapunda over the next 3 years.  In turn ECR has entered into an agreement to earn, in two stages, up to 75% of the rights over metals which may be recovered via in-situ recovery ("ISR") contained in the Kapunda deposit from Australian listed company, Terramin Australia Limited ("Terramin" ASX: "TZN")

Kapunda is located approximately 90 kilometres north of Adelaide, and has ready access to substantial nearby infrastructure.

A full background on the project is available on the Thor Mining website www.thormining.com/projects.

In July 2018, the Company advised that the Australian Government Ministry for Science, Jobs and Innovation announced an offer to ECR for research funding of A$2,851,303, over a 30 month period, for the Kapunda In-Situ Copper and Gold Recovery Trial.

In December 2018, Thor announced that proof of concept for ISR at Kapunda had been established improving the level of confidence in technical aspects of the proposed development from both an environmental and a copper production perspective.

Capital Raisings

During the period, the Company's cash balances were augmented via the exercise of 52,699,789 warrants and options, at various exercise prices, raising £625,623 at an average conversion price of 1.19 pence.

Board Changes

During the period Paul Johnson, Non-Executive Director, resigned from the Board of Thor.  The Board wish to thank Paul for his contribution to the Company during his tenure.

Comprehensive Income

The comprehensive income statement records a comprehensive loss of £455,000 (2017: £779,000 loss) after taking into account unrealised exchange loss of £49,000 (2017: £239,000 loss).

Mick Billing

Executive Chairman

28 February 2019

Competent Person's statements

The information in this report that relates to exploration results, and exploration targets, is based on information compiled by Richard Bradey, 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.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

Condensed Consolidated Statement of Comprehensive Income For the 6 months ended 31 December 2018
	Note	£'000	£'000	£'000
		6 months ended 31 December 2018	6 months ended 31 December 2017	Year ended 30 June 2018
		Unaudited	Unaudited	Audited
Administrative expenses		(40)	(39)	(92)
Corporate expenses		(335)	(342)	(705)
Share based payments expense		(22)	(6)	(229)
Unrealised gain on financial assets		-	-	-
Realised gain on financial assets		-	-	-
Exploration expenses	3	(16)	(159)	(245)
Write off/Impairment of exploration assets	3	-	-	-
Operating Loss		(413)	(546)	(1,271)
Interest received		5	-	13
Interest paid		-	-	(1)
Sundry Income		2	6	10
Loss before Taxation		(406)	(540)	(1,249)
Taxation		-	-	-
Loss for the period		(406)	(540)	(1,249)
Other comprehensive income:
Exchange differences on translating foreign operations		(49)	(239)	(471)
Other comprehensive income for the period, net of income tax		(49)	(239)	(471)
Total comprehensive income for the period		(455)	(779)	(1,720)
Basic loss per share	2	(0.06)p	(0.12)p	(0.23)p

Condensed Consolidated Statement of Financial Position For the 6 months ended 31 December 2018
	Note	£'000	£'000	£'000
		31 December 2018	31 December 2017	30 June 2018
		Unaudited	Unaudited	Audited
ASSETS
Non-current assets
Intangible assets - deferred exploration costs	3	10,778	10,051	10,133
Investments at cost		103	103	103
Loan receivable (Convertible note)	4	167	116	113
Deposits to support performance bonds		20	21	21
Plant and equipment		18	25	22
Total non-current assets		11,086	10,316	10,392
Current assets
Cash and cash equivalents		1,048	1,321	1,374
Trade receivables and other assets		62	62	49
Total current assets		1,110	1,383	1,423
Total assets		12,196	10,699	11,815
LIABILITIES
Current liabilities
Trade and other payables		(188)	(213)	(286)
Provisions		(43)	(22)	(50)
Non-interest bearing liabilities		-	-	-
Interest bearing liabilities		(5)	(10)	(9)
Total current liabilities		(236)	(245)	(345)
Interest bearing liabilities		-	(5)	-
Total non-current liabilities		-	(5)	-
Total liabilities		(236)	(250)	(345)
Net assets		11,960	11,449	11,470
Equity
Issued share capital	5	3,682	3,671	3,675
Share premium	5	20,631	18,930	19,693
Foreign exchange reserve		2,135	2,416	2,184
Merger reserve		405	405	405
Share based payments reserve		295	107	297
Retained losses		(15,188)	(14,080)	(14,784)
Total equity		11,960	11,449	11,470

Condensed Consolidated Statement of Change in Equity
For the 6 months ended 31 December 2018
	£'000			£'000	£'000		£'000				£'000			£'000	£'000
	Issued share capital			Share premium	Retained losses	Foreign Currency Translation Reserve					Merger Reserve			Share Based Payment Reserve		Total
Balance at 1 July 2017	3,648			16,641	(13,554)		2,655				405			115	9,910
Loss for the period	-			-	(540)		-				-			-	(540)
Foreign currency translation reserve	-			-	-		(239)				-			-	(239)
Total comprehensive loss for the period	-			-	(540)		(239)				-			-	(779)
Transactions with owners in their capacity as owners
Shares issued	23			2,339	-		-				-			-	2,362
Cost of shares issued	-			(50)	-		-				-			-	(50)
Share options issued	-			-	-		-				-			6	6
Share options exercised	-			-	14		-				-			(14)	-
At 31 December 2017	3,671			18,930	(14,080)		2,416				405			107	11,449
Balance at 1 July 2017		3,648	16,641		(13,554)			2,655	405			115			9,910
Loss for the period		-	-		(1,249)			-	-			-			(1,249)
Foreign currency translation reserve		-	-		-			(471)	-			-			(471)
Total comprehensive  (loss) for the period		-	-		(1,249)			(471)	-			-			(1,720)
Transactions with owners in their capacity as owners
Shares issued		27	3,105		-			-	-			-			3,132
Cost of shares issued		-	(53)		-			-	-			-			(53)
Share options exercised		-	-		19			-	-			(19)			-
Share options issued			-		-			-	-			201			201
At 30 June 2018		3,675	19,693		(14,784)			2,184	405			297			11,470
Balance at 1 July 2018	3,675			19,693	(14,784)		2,184				405			297	11,470
Loss for the period	-			-	(406)		-				-			-	(406)
Foreign currency translation reserve	-			-	-		(49)				-			-	(49)
Total comprehensive loss for the period	-			-	(406)		(49)				-			-	(455)
Transactions with owners in their capacity as owners
Shares issued	7			942	-		-				-			-	949
Cost of shares issued	-			(4)	-		-				-			-	(4)
Share options issued	-			-	-		-				-			-	-
Share options exercised	-			-	2		-				-			(2)	-
At 31 December 2018	3,682			20,631	(15,188)		2,135				405			295	11,960

Condensed Consolidated Statement of Cash Flow
For the 6 months ended 31 December 2018
	£'000	£'000	£'000
	6 months ended 31 December 2018	6 months ended 31 December 2017	Year ended 30 June 2018
	Unaudited	Unaudited	Audited
Cash flows from operating activities
Operating Loss	(413)	(546)	(1,271)
Sundry income	2	5	10
(Increase)/decrease in trade and other receivables	3	(29)	(66)
Decrease in trade and other payables	(9)	(35)	(43)
Increase/(decrease) in provisions	(6)	2	30
Depreciation	4	4	9
Share settled expense & share-based payments	22	6	229
Net cash outflow from operating activities	(397)	(593)	(1,102)
Cash flows from investing activities
Interest received	9	1	9
Interest paid	-	-	(1)
Purchase of property, plant and equipment	-	(7)	(9)
Purchase of Investment	-	(103)	(103)
Loan advanced (convertible note)	(56)	(116)	(113)
Payments for exploration expenditure	(427)	(502)	(688)
Net cash outflow from investing activities	(474)	(727)	(905)
Cash flows from financing activities
Loans repaid	-	(29)	(28)
Finance lease funding repaid	(5)	(4)	(8)
Net issue of ordinary share capital	561	2,266	3,009
Net cash inflow from financing activities	556	2,233	2,973
Net decrease in cash and cash equivalents	(315)	913	966
Non-cash exchange changes	(11)	3	3
Cash and cash equivalents at beginning of period	1,374	405	405
Cash and cash equivalents at end of period	1,048	1,321	1,374

Notes to the Half-yearly Report

For the 6 months ending 31 December 2018

1.      PRINCIPAL ACCOUNTING POLICIES

(a)    Presentation of Half-yearly results

The half-yearly results have not been audited, but were the subject of an independent review carried out by the Company's auditors, Chapman Davis LLP.  Their review confirmed that the figures were prepared using applicable accounting policies and practices consistent with those adopted in the 2018 annual report and to be adopted in the 2019 annual report.  The financial information contained in this half-yearly report does not constitute statutory accounts as defined by Section 435 of the Companies Act 2006.

The half-yearly report has been prepared under the historical cost convention.

The Directors acknowledge their responsibility for the half-yearly report and confirm that, to the best of their knowledge, the interim consolidated financial statements for the six months ended 31 December 2018 have been prepared in accordance with International Financial Reporting Standards, including IAS 34 "Interim Financial Statements", and complies with the requirements for companies with securities admitted to trading on the AIM Market of the London Stock Exchange. This half-year report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual report for the year ended 30 June 2018. 

The Directors are of the opinion that on-going evaluations of the Company's interests indicate that preparation of the accounts on a going concern basis is appropriate.

(b)    Basis of consolidation

The consolidated financial statements comprise the financial statements of Thor Mining PLC and its controlled entities.  The financial statements of controlled entities are included in the consolidated financial statements from the date control commences until the date control ceases. All inter-company balances and transactions have been eliminated in full.

The financial statements of subsidiaries are prepared for the same reporting period as the parent Company, using consistent accounting policies.

2.         LOSS PER SHARE

No diluted loss per share is presented as the effect of exercise of outstanding options is to decrease the loss per share.        

	£'000	£'000	£'000
	6 months ended 31 December 2018	6 months ended 31 December 2017	Year ended 30 June 2018
	Unaudited	Unaudited	Audited
Loss for the period	(406)	(540)	(1,249)
Weighted average number of Ordinary shares in issue Loss per share - basic	667,334,721 (0.06)p	453,883,040 (0.12)p	545,367,864 (0.23)p

Notes to the Half-yearly Report

For the 6 months ending 31 December 2018

3.         DEFERRED EXPLORATION COSTS

	£'000	£'000	£'000
	31 December 2018	31 December 2017	30 June 2018
Cost	Unaudited	Unaudited	Audited
At commencement	10,133	9,867	9,867
Additions	376	404	680
Acquisition	301	-	-
Exchange gain/(loss)	(32)	(220)	(414)
Write off exploration tenements for year	-	-	-
At period end	10,778	10,051	10,133
Impairment
At commencement	-	-	-
Exchange loss	-	-	-
Impairment for period	-	-	-
At period end	-	-	-
Net book value at period end	10,778	10,051	10,133

Having reviewed the deferred exploration and evaluation expenditure at 31 December 2018, the directors are satisfied that no write off or provision for impairment is required.

In the half year ended 31 December 2018, the Group acquired the Bonya tenements, being a 40% interest in EL29701 and 100% of EL29599.  Consideration was A$550,000 (£301,000) paid by the issue of 14,527,205 shares at A$0.03786.  Refer ASX Announcements 25 September 2018, 19 April 2018 and 28 March 2018.

In the half year ended 31 December 2017, the Group incurred £159,000 in exploration related expenses that were expensed rather than capitalised to deferred exploration costs.  £94,000 was a cash settlement of US$125,000 in satisfaction of a pre-existing commitment to pay US$1,500,000 upon first production at Pilot Mountain in Nevada, USA. The remaining £65,000 related to work undertaken on exploration activities on projects that the Group does not have a direct ownership interest, including the Kapunda Project (refer Note 4), the Western Shaw project and exploration due diligence on the US Lithium Project.

4.         LOAN RECEIVABLE (CONVERTIBLE NOTE)

On 2 August 2017, the Group signed a binding term sheet to acquire an interest in the historically mined Kapunda copper deposit in South Australia (Kapunda).  The Group is investing in an incorporated private Australian company, Environmental Copper Recovery SA Pty Ltd (ECR), initially via convertible notes of up to A$1.8 million, which will be used to fund field test work and feasibility activities at Kapunda over a three-year period.  The Group made the first advance to ECR of AUD$200,000 (£116,000) during the year ended 30 June 2018.  A further advance of A$100,000 (£56,000) was made during the half year ended 31 December 2018. The balance of the loan at 31 December 2018 is £167,000 after allowing for a foreign currency translation loss of £5,000.  Conversion of the convertible notes are at the sole discretion of Thor, and will result in Thor holding up to 60% equity interest in ECR.  The term sheet also provides that Thor has immediate Board control of ECR.

In turn, ECR has an agreement to earn a 50% interest in the rights over metals which may be recovered via in-situ recovery at the Kapunda deposit, from Australian ASX listed, Terramin Australia Limited (ASX: TZN), for expenditure of A$2.0 million on field test work.  ECR can then opt to earn a further 25% interest through additional expenditure of A$4.0 million.

5.         SHARE CAPITAL	£'000	£'000	£'000
	31 December 2018	31 December 2017	30 June            2018
	Unaudited	Unaudited	Audited
Issued fully paid (Nominal Value)
982,870,766 'Deferred Shares' of £0.0029 each	2,850	2,850	2,850
7,928,958,483 'A Deferred Shares' of £0.000096 each	761	761	761
Ordinary shares of £0.0001 each	71	60	64
	3,682	3,671	3,675
	Number	Number	Number
	31 December 2018	31 December 2017	30 June            2018
	Unaudited	Unaudited	Audited
Movement in share capital
Ordinary Shares of 0.01 pence
At commencement	648,573,546	373,013,208	373,013,208
Shares issued for cash	-	121,736,111	131,736,111
Warrants exercised	52,699,789	108,782,217	142,696,647
Shares issued to service providers	1,100,000
Shares issued for acquisition	14,527,205	1,127,580	1,127,580
At period end	716,900,540	604,659,116	648,573,546
	£'000	£'000	£'000
	31 December 2018	31 December 2017	30 June            2018
Nominal Value	Unaudited	Unaudited	Audited
At commencement	3,675	3,648	3,648
Issued for cash (including warrants exercised)	5	23	27
Issued for acquisition	2	-	-
At period end	3,682	3,671	3,675

6.         TURNOVER AND SEGMENTAL ANALYSIS - GROUP

The Group has a number of exploration licenses, and mining leases, in Australia and the US State of Nevada.  All exploration licences in Australia are managed as one portfolio. The decision to allocate resources to individual Australian projects in that portfolio is predominantly based on available cash reserves, technical data and the expectations of future metal prices. The Group acquired the exploration assets in the US State of Nevada on 27 October 2014.  All of these US licenses are located in the one geological region.  Accordingly, the Group has identified its operating segments to be Australia and the United States. This is the basis on which internal reports are provided to the Directors for assessing performance and determining the allocation of resources within the Group.     

	£'000	£'000	£'000	£'000
Half Year ended 31/12/2018	Head office/ Unallocated	Australia	United States	Consolidated
Revenue
Interest & Sundry Income	7	-	-	7
Total Segment Revenue	7	-	-	7
Total Segment Expenditure	(175)	(238)	-	(413)
Loss from Ordinary Activities before Income Tax	(168)	(238)	-	(406)
Income Tax Benefit/(Expense)	-	-	-	-
Loss after Income Tax	(168)	(238)	-	(406)
As at 31/12/2018	Head office/ Unallocated	Australia	United States	Consolidated
Assets and Liabilities
Segment assets	-	8,756	2,265	11,021
Corporate assets	1,175	-	-	1,175
Total Assets	1,175	8,756	2,265	12,196
Segment liabilities	-	(209)	-	(209)
Corporate liabilities	(27)	-	-	(27)
Total Liabilities	(27)	(209)	-	(236)
Net Assets	1,148	8,547	2,265	11,960

Notes to the Half-yearly Report

For the 6 months ending 31 December 2018

6.         TURNOVER AND SEGMENTAL ANALYSIS - GROUP (continued)

		£'000		£'000		£'000		£'000
Half Year ended 31/12/2017		Head office/ Unallocated		Australia		United States		Consolidated
Revenue
Interest & Sundry Income		6		-		-		6
Total Segment Revenue		6		-		-		6
Total Segment Expenditure		(153)		(299)		(94)		(546)
Loss from Ordinary Activities before Income Tax		(147)		(299)		(94)		(540)
Income Tax Benefit/(Expense)		-		-		-		-
Loss after Income Tax		(147)		(299)		(94)		(540)
	As at 30/06/2018		Head office/ Unallocated		Australia		United States		Consolidated
Assets and Liabilities
Segment assets		-		8,589		1,722		10,311
Corporate assets		1,504		-		-		1,504
Total Assets		1,504		8,589		1,722		11,815
Segment liabilities		-		(320)		-		(320)
Corporate liabilities		(25)		-		-		(25)
Total Liabilities		(25)		(320)		-		(345)
Net Assets		1,479		8,269		1,722		11,470

7.         POST BALANCE SHEET EVENTS

On 5 February 2019, Thor announced confirmation of extensive tungsten mineralisation (including high grade zones) from the first stage of exploration at the Samarkand deposit, one of thirteen known tungsten deposits within the Bonya project.  The Bonya tenement is held jointly (Thor 40%) with Arafura Resources Limited (ARU: 60%) adjacent to the Molyhil mine project in the Northern Territory of Australia.  Thor Mining is the joint venture operator.

Other than the above matter, there were no material events arising subsequent to 31 December 2018 to the date of this report which may significantly affect the operations of the Group, the results of those operations and the state of affairs of the Group in the future.

DIRECTORS, SECRETARY AND ADVISERS

Directors     Michael Robert Billing (Executive Chairman)

David Edward Thomas (Non-executive Director)

Alastair Middleton (Non-executive Director)

Richard Bradey (Executive Director)

Paul Johnson (Non-executive Director) - resigned 13 July 2018

	In UK	In Australia
Registered Office and Directors' business address	Salisbury House London Wall London, EC2M 5PS United Kingdom	58 Galway Avenue Marleston, South Australia Australia 5033
Company Secretaries	Stephen Frank Ronaldson	Ray Ridge
Website	www.thormining.com	www.thormining.com
Nominated Adviser to the Company	Grant Thornton UK LLP 30 Finsbury Square London EC2A 1AG United Kingdom
Auditors to the Company	Chapman Davis LLP 2 Chapel Court London SE1 1HH United Kingdom
Solicitors to the Company	Druces LLP Salisbury House London Wall London, EC2M 5PS United Kingdom
Registrars	Computershare Investor Services Plc The Pavilions Bridgewater Road Bristol BS99 6ZY United Kingdom	Computershare Investor Services Pty Ltd Level 5, 115 St Grenfell St Adelaide, South Australia Australia 5000

INDEPENDENT REVIEW REPORT TO THOR MINING PLC

Introduction

We have been engaged by the Company to review the interim consolidated financial statements for the six months ended 31 December 2018 comprising the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Consolidated Statement of Changes in Equity, Consolidated Statement of Cash Flows, and related notes.  We have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.

This report is made solely to the Company in accordance with guidance contained in ISRE 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

Directors' Responsibilities

The half-yearly financial report is the responsibility of, and has been approved by the Directors.  The Directors are responsible for preparing the half-yearly financial report in accordance with the rules of the London Stock Exchange Plc for Companies trading securities on the AIM Market.  As disclosed in Note 1 the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union.  The condensed set of financial statements included in this half-yearly financial report have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the half-yearly financial report based on our review. 

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Auditing Practices Board for use in the United Kingdom.  A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.  Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 December 2018 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.

CHAPMAN DAVIS LLP

Chartered Accountants

2 Chapel Court

London SE1 1HH

28 February 2019

Enquiries:

Mick Billing	+61 (8) 7324 1935	Thor Mining PLC	Executive Chairman
Ray Ridge	+61 (8) 7324 1935	Thor Mining PLC	CFO/Company Secretary
Colin Aaronson/ Richard Tonthat/ Ben Roberts	+44 (0) 207 383 5100	Grant Thornton UK LLP	Nominated Adviser
Nick Emerson	+44 (0) 1483 413 500	SI Capital Ltd	Joint Broker
David Hignell / Rob Rees / Isabella Pierre	+44 (0)20 3861 6625	Northland Capital Partners Limited	Joint Broker
Tim Blythe/ Camilla Horsfall	+44 (0) 207 138 3222	Blytheweigh	Financial PR

Updates on the Company's activities are regularly posted on Thor's website www.thormining.com, which includes a facility to register to receive these updates by email, and on the Company's twitter page @ThorMining.

About Thor Mining PLC

Thor Mining PLC (AIM, ASX: THR) is a resources company quoted on the AIM Market of the London Stock Exchange and on ASX in Australia.

Thor holds 100% of the advanced Molyhil tungsten project in the Northern Territory of Australia, for which an updated feasibility study in August 2018¹ suggested attractive returns.

Adjacent Molyhil, at Bonya, Thor holds a 40% interest in deposits of tungsten, copper, and vanadium, including an Inferred resource for the Bonya copper deposit².

Thor also holds 100% of the Pilot Mountain tungsten project in Nevada USA which has a JORC 2012 Indicated and Inferred Resources Estimate³ on 2 of the 4 known deposits.  The US Department of the Interior has confirmed that tungsten, the primary resource mineral at Pilot Mountain, has been included in the final list of Critical Minerals 2018.

Thor is also acquiring up to a 60% interest Australian copper development company Environmental Copper Recovery SA Pty Ltd, which in turn holds rights to earn up to a 75% interest in the mineral rights and claims over the resource⁴ on the portion of the historic Kapunda copper mine in South Australia recoverable by way of in situ recovery. 

Thor has an interest in Hawkstone Mining Limited, an Australian ASX listed company with a 100% Interest in a Lithium project in Arizona, USA.

Finally, Thor also holds a production royalty entitlement from the Spring Hill Gold project⁵ of:

•  A$6 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for up to A$1,500 per ounce; and

•  A$14 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for amounts over A$1,500 per ounce.

Notes

¹ Refer ASX and AIM announcement of 23 August 2018

² Refer ASX and AIM announcement of 26 November 2018

³ Refer AIM announcement of 13 December 2018 and ASX announcement of 14 December 2018

⁴ Refer AIM announcement of 10 February 2016 and ASX announcement of 12 February 2018

⁵ Refer AIM announcement of 26 February 2016 and ASX announcement of 29 February 2016

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

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