thor mining · 11/21/2013 · tungsten metal wires, electrodes, and/or contacts are used in...

26 November 2013

www.progressive-research.com This marketing communication has not been prepared in accordance with requirements designed to promote the independence of investment research. Please refer to important disclosures at the end of the document.

THR.L 0.38p

Market Cap: £4.9m

SHARE PRICE PERFORMANCE

12m high/low 0.73p/0.26p

Source: LSE data

KEY INFORMATION

Enterprise value £5.3m

Index/market FTSE/AIM

Next news H1 14 results

Gearing 12%

Interest cover N/A

PEDAL TO THE METAL

Financing supports project development Thor Mining is a mineral exploration and development company with three projects in Australia. It has a portfolio of properties in the Northern Territory of Australia and in Western Australia which include tungsten, molybdenum (Molyhil) and gold prospects (Spring Hill and Dundas). The experienced Board seeks to increase shareholder value by systematically exploring its resource portfolio. Thor aims to start production first from Spring Hill, where the cost of a small open pit with minimal surface plant, is low. The group intends open up Molyhil (its flagship project), commencing development in 2014. The latter is the subject of plans by the group to upgrade the project economics. Recent fundraisings and financing facilities will fund this work and provide for the general working capital requirements of the group.

§ Molyhill’s tungsten/molybdenum project is close to development. Thor intends to improve the economics at Molyhil through the optimisation of the project via some innovative technology and cost reductions. Further exploration to take advantage of the close proximity of other known tungsten deposits / occurrences within 60km of Molyhil should also add to the life of the project and, again, drive costs down. The first stage of agreement for scheelite concentrate off-take arrangements with a significant player in the global tungsten industry enhances the potential for near-term development.

§ Thor has had encouraging results from testing methods of ore sorting to improve the efficiency of the mining process with Molyhil showing the greatest promise initially.

§ Thor has accelerated the development of its mine at Spring Hill where it is targeting the conversion of the gold resource to a profitable mining operation within twelve months. It has an indicated resource at shallow depth of 390,000oz of gold and an agreement with Crocodile Gold for gold extraction at its nearby Union Reefs processing plant. The mine site is close to most infrastructure requirements. The results of drilling in September 2013 increased confidence levels of reserve estimates.

§ A more speculative project, Dundas has potential for discovery of world-class gold and nickel mineralisation. We expect the work at Spring Hill and Molyhil to be the initial focus for Thor.

00.10.20.30.40.50.60.70.8

Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13

THOR MINING Mining

ANALYSTS

Christopher Legg

+44 (0)20 7349 5156

[email protected]

Gareth Evans

[email protected]

FYE JUNE FY11 FY12 FY13 FY14E FY15E

Revenue 0.0 0.0 0.0 0.0 0.0

Adjusted EBITDA -2.8 -0.7 -1.1 -0.6 -0.6

Adjusted PBT -2.8 -0.7 -1.1 -0.6 -0.7

Adjusted EPS -0.6 -0.1 -0.1 -0.1 -0.1

EV/Sales n.a. n.a. n.a. n.a. n.a.

EV/ Adj. EBITDA -1.9x -7.3x -4.8x -9.4x -9.4x

P/E n.a. n.a. n.a. n.a. n.a.

Source: Company, Progressive Equity Research estimates

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TABLE OF CONTENTS THOR MINING - SUMMARY ......................................... 3 MARKET BACKDROP .................................................. 5 TUNGSTEN AND MOLYBDENUM ................................ 5

TUNGSTEN ................................................................................... 5 MOLYBDENUM .............................................................................. 7 THE GOLD MARKET ....................................................................... 8

THOR MINING PROJECTS ......................................... 10 MOLYHIL ..................................................................... 10 SPRING HILL ............................................................... 13

NEXT STEPS – GOLD ................................................................... 15 NEXT STEPS - TIN ....................................................................... 16

DUNDAS ...................................................................... 17 REALISING VALUE ..................................................... 20

MOLYHIL .................................................................................... 21 SPRING HILL .............................................................................. 24 DUNDAS ..................................................................................... 27

FY13 RESULTS AND FINANCING ............................. 28 ESTIMATES ................................................................. 29 THE MANAGEMENT TEAM ........................................ 31 RISKS AND UNCERTAINTIES ................................... 32

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THOR MINING - SUMMARY Thor Mining plc currently holds three distinctly different sets of exploration and mining tenements, two in the Northern Territory and one in Western Australia. The Molyhil tungsten-molybdenum deposit, east of Alice Springs, has indicated resources sufficient to justify immediate development of an open-cast mine, with high potential for discovery of additional tungsten resources close to the mine and in the area to the east. The Spring Hill gold deposit south of Darwin in NT also has indicated resources to support the immediate opening of a low-cost open cast gold mine, with excellent possibilities for discovery of new near-surface resources plus extensions to significant depths. Dundas is a more speculative project, but with potential for discovery of world-class gold and nickel mineralisation in an under-explored and poorly-exposed portion of a re-worked Archaean greenstone belt hosting recent very significant gold and nickel discoveries.

The Board has recently secured additional financing and will start production first from Spring Hill. It intends to open up Molyhil where the group, taking specific action to upgrade the project economics, intends to commence development in 2014.

THOR MINING PROJECTS

Source: Progressive Equity Research

Molyhil

Spring Hill

Dundas

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Molyhil Project

The Molyhil Tungsten-Molybdenum Project is situated in Australia’s Northern Territory some 250 kilometres north-east of Alice Springs.

§ The deposit: Occurs in two adjacent skarn bodies that contain outcropping molybdenite and scheelite mineralisation.

§ Work done: Since mid-2004, geophysical exploration, diamond and reverse circulation drilling programmes, surface and underground bulk sampling, metallurgical testwork and a geotechnical study.

§ Definitive Feasibility Study: Completed in 2006, the study confirmed technical and economic viability, with strong financial returns and rapid capital payback. DFS upgraded in FY 12: mine life of four years.

§ Early stage of off-take agreement: Letter of Intent with a significant global tungsten player for scheelite concentrate off-take arrangements.

§ Initiatives: Ore sorting and other cost savings leading to a further upgrade of the DFS due shortly.

Spring Hill Project

The Spring Hill Gold Project tenements are located approximately 150 km south of Darwin in the Northern Territory.

§ The project: An Indicated Resource of 450,000 oz. gold within 10.0Mt @ 1.06 grams per tonne (g/t) gold using a 0.5 g/t cut-off grade, to a maximum depth of 150 metres.

§ Work to be done: Accelerated development to extract only near surface oxide material for processing off-site. It is hoped that this measure will help to secure early environmental and regulatory approval.

§ Initiatives: Improved efficiency through on-mine ore sorting based on X-ray sensors to reject barren rock. Results of drilling in September 2013 increased confidence levels of reserve estimates for the initial open-pit and are an essential pre-cursor to shallow mining of oxide ore.

Dundas Project

The Dundas Gold Project area is located in Western Australia around 600 kilometres east of Perth.

§ The project: Is in the Albany-Fraser Province within a newly-discovered belt which includes Tropicana.

§ Work done: After being acquired in 2010, exploration work focused on sampling and shallow bedrock drilling to target deeper reverse circulation drilling.

§ Prospectivity: The Directors believe that the position relative to the greenstone belt noted above and location of tenements may impart an enhanced prospectivity to the section containing the project area.

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MARKET BACKDROP

TUNGSTEN AND MOLYBDENUM Thor’s Molyhil project is a tungsten mine which also has molybdenum deposits. The following fact boxes contain summaries of the two metals.

Tungsten

Fact Box: Tungsten

Source: USGS, WebElements, Progressive Equity Research

Name: TungstenSymbol: WAtomic number: 74Atomic weight: 183.84 (1)Standard state: solid at 298 KColour: greyish white, lustrousClassification: MetallicDiscovered: by Fausto and Juan Jose deElhuyar at 1783 in Spain.Origin of name: from the Swedish words "tungsten" meaning "heavy stone" (the origin of thesymbol W is "wolfram", named after thetungsten mineral wolframite).

Tungsten is a metal with a wide range of uses, thelargest of which is as tungsten carbide in cementedcarbides. Cemented carbides (also calledhardmetals) are wear-resistant materials used by themetalworking, mining, and construction industries.Tungsten metal wires, electrodes, and/or contactsare used in lighting, electronic, electrical, heating,and welding applications. Tungsten is also used tomake heavy metal alloys for armaments, heat sinks,and high-density applications, such as weights andcounterweights; superalloys for turbine blades; toolsteels; and wear-resistant alloy parts and coatings.Tungsten composites are used as a substitute forlead in bullets and shot. Tungsten chemicalcompounds are used in catalysts, inorganicpigments, and high-temperature lubricants.

World Resources: World tungsten resourcesare geographically widespread. China ranksfirst in the world in terms of tungsten resourcesand reserves and has some of the largestdeposits. Canada, Kazakhstan, Russia, and theUnited States also have significant tungstenresources.

Snapshot : Tungsten

Reserves

2011 2012EAustria 1.1 1.1 10 Bolivia 1.1 1.1 53 Canada 2.0 2.0 120 China 61.8 62.0 1,900 Portugal 0.8 0.8 4 Russia 3.5 3.5 250 United States N/A N/A 140 Other 2.7 3.0 760 World total (rounded) 73.0 73.5 3,237

(000s mt of contained tungsten

Mine production

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The US Geological Survey (USGS) noted that, in 2012, world tungsten supply was dominated by Chinese production and exports and that China was also the leading tungsten consumer. China’s Government has regulated its tungsten industry but, to conserve its resources and meet increasing domestic demand, it is set to expand exploration and increase ore reserves in approved mines. It will also target improvements in tungsten-processing technology and increase tungsten recovery from tailings and low-grade and mixed scheelite-wolframite ores.

The USGS also expects mine production from outside China to increase and highlights the fact that companies are working to develop tungsten deposits or restarting tungsten production from inactive mines in Asia, Australia, Europe, and North America.

Tungsten price US$/lb

Source: InfoMine.com NB: In recent years, trade in concentrates has diminished and the market has relied more on the APT quotation as a price guide since APT is the product traded in the largest quantity. Nonetheless, Ferro Tungsten remains a good proxy for the Tungsten APT price.

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Molybdenum

Fact Box: Molybdenum

Source: USGS, WebElements, Progressive Equity Research

Name: MolybdenumSymbol: MoAtomic number: 42Atomic weight: 95.96Standard state: solid at 298 KColour: grey metallicClassification: MetallicDiscovered: Carl William Scheele at 1781 inSweden.Origin of name: from the Greek word"molybdos" meaning "lead".

Molybdenum is a refractory metallic element usedprincipally as an alloying agent in steel, cast iron,and superalloys to enhance hardenability, strength,toughness, and wear and corrosion resistance. Toachieve desired metallurgical properties,molybdenum, primarily in the form of molybdicoxide or ferromolybdenum, is frequently used incombination with or added to chromium,columbium (niobium), manganese, nickel, tungsten,or other alloy metals. The versatility ofmolybdenum in enhancing a variety of alloyproperties has ensured it a significant role incontemporary industrial technology, whichincreasingly requires materials that are serviceableunder high stress, expanded temperature ranges,and highly corrosive environments. Moreover,molybdenum finds significant usage as a refractorymetal in numerous chemical applications, includingcatalysts, lubricants, and pigments. Few ofmolybdenum's uses have acceptable substitutions.

World Resources: Identified resources ofmolybdenum in the United States are about 5.4million tons, and in the rest of the world, about 14million tons. Molybdenum occurs as the principalmetal sulfide in large low-grade porphyrymolybdenum deposits and as an associatedmetal sulfide in low-grade porphyry copperdeposits. Resources of molybdenum areadequate to supply world needs for theforeseeable future.

Snapshot : Molybdenum

Reserves

2011 2012EArmenia 4.5 4.6 150 Canada 8.4 9.4 220 Chile 40.9 35.3 2,300 China 106.0 105.0 4,300 Iran 3.7 4.0 50 Kazakhstan 130 Kyrgyzstan 0.3 0.3 100 Mexico 10.9 10.9 130 Mongolia 2.0 2.0 160 Peru 19.1 19.5 450 Russia 3.9 3.9 250 United States 63.7 57.0 2,700 Uzbekistan 0.6 0.6 60 World total (rounded) 263.9 252.4 11,000

Mine production(000s mt of contained molybdenum)

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Molybdenum price US$/lb

Source: InfoMine.com

The gold market

Price

In terms of the economics of Thor’s projects, despite this year’s decline, the gold price continues to provide support for the viability of adding value in the licence areas that the company currently holds. The gold price ended 2012 at U$1,657.50/oz. That represented an increase of 8.3% over the year although the price dipped towards the end of the year. According to the World Gold Council, the 6.7% decline during the last quarter of 2012 came during a period of low volatility. It noted that gold in US dollars had an annualised volatility of 11.5% in 2012 compared to its long-term average of 16% - the third lowest quarterly volatility in the past 10 years. Despite the final quarter dip, the overall performance in 2012 was the 12th consecutive year of annual gains.

In 2013, however, the gold price has fallen by over 20% so far – with a double-digit decline in Q2 2013.

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GOLD PRICE US$/OZ

Source: World Gold Council

Demand

The World Gold Council also noted in its ‘Demand and Supply’ statistics that the 2012 annual global gold demand measured on a value basis increased to an all-time record of US$236.4bn. However, on a tonnage basis, demand was down by 4% from 2011 as a drop in consumer demand was only partly offset by an increase in demand from institutional investors and central banks.

In Q2 2013, gold demand fell by 12% to 856.3 tonnes, worth US$39bn. Lower prices were behind another surge in quarterly jewellery demand and there was record quarterly investment in gold bars and coins. However, outflows from ETFs were the principal cause of the decline over the quarter as western investors reacted to a seemingly more positive outlook for the US economy and an eventual tapering of quantitative easing.

The demand figure of US$39bn was the lowest for more than three years and. Q2 2013 saw an absolute drop in the gold price of more than US$400/oz – a 12% decline in the average quarterly price compared with Q2 2012. The price fall also had an impact on the supply side of the gold market resulting in a sharp contraction in recycling.

Supply

A 62.4t decrease in the supply of gold during the second quarter of 2013 was almost solely due to reduced quantities of recycling coming onto the market. Recycling has generated, on average, 40% of total supply over the last five years and it is highly price sensitive The supply of recycling was heavily influenced by the developing world, where consumers responded quickly to lower gold prices. Recycling dropped by 25% compared with Q2 2012 and, the WGC has noted that a resurgence in supply ‘would likely require a significant recovery in the price’.

The 672.1t of recycling supply in the first six months of the year was the lowest first-half total since 2007 – resulting from a combination of lower prices and a lower level of distress selling among consumers in developed markets. Recycled gold supplied by industrialised countries was 14% below the same period a year earlier and signs of economic recovery suggest that there is limited scope for near-term growth.

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THOR MINING PROJECTS

MOLYHIL Description

The Molyhil tungsten-molybdenum deposit lies in an area of numerous tungsten occurrences, associated with barite, fluorite, apatite and copper, in the Proterozoic Eastern Arunta Block east of Alice Springs in the Northern Territory. Indicated and inferred resources total 4.7 million tonnes at 0.22% MoS2 and 0.28% WO3, of which 1.64 million tonnes at 0.13% MoS2 and 0.42 WO3 could be mined in a shallow (122 metres) open pit. The project is 100% owned by Thor.

Molyhil Els and mineral occurrences. Red=tungsten; green=copper; orange=barite; cyan=fluorite. Background aeromagnetics and relief


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Exploration area / geology

Mineralisation at Molyhil is in steeply-plunging en-echelon lenses within a magnetite-bearing skarn, formed near the contact between calcareous rocks and granite. Detailed magnetic surveys and modelling suggest that the skarn continues to considerable depth. Unlike the other tungsten occurrences in the area, which were discovered in the 1970's by UV-lamp prospecting, Molyhil does not outcrop, but is covered by shallow alluvium and was discovered using geophysics (magnetics). The Molyhil skarn lies at the intersection of the ESE-trending Delny Shear Zone and a NE-trending fault. Magnetic anomalies at the intersection of similar faults are exploration targets for Molyhil-style skarn-hosted mineralisation.

Economic viability/potential

There appears to be considerable potential for discovery of additional skarn-hosted mineralisation in and around Molyhil, both as down-plunge extensions of the known Molyhil lenses, and as separate skarn bodies to east and west of Molyhil, as suggested by magnetic anomalies. The anomalies need to be investigated by shallow drilling and then by deeper RC and core drilling. Additional open-cast resources could provide feed for the Molyhil plant and extend project life, while deeper underground resources could support a longer-term mining operation.

Historical exploration

The numerous tungsten occurrences east of the main Molyhil EL were all discovered by UV-lamp surface prospecting and associated with the Kings Legend Amphibolite. The area has not been explored recently.

Next steps

Different types of exploration will be required, including soil geochemistry, hyperspectral imagery (remote sensing using IR and near IR) and high resolution airborne geophysics. Since this is relatively unexplored area, and the density of known mineral occurrences is high, the chances of success must be rated as very good.

Off-take arrangement

On 16 October 2013, Thor announced receipt of a Letter of Intent from US-based Global Tungsten & Powders Corp. of Pennsylvania (GTP), in respect of scheelite concentrate off-take arrangements for the Molyhil tungsten project. It provides terms for a future off-take agreement, subject to technical and legal due diligence, and also to Thor securing necessary funding to develop the Molyhil project.

The terms include off-take for around 70-75% of the annual production of scheelite concentrate from Molyhil for the current 4 planned year life-time of the mine with right of first refusal to a 2 year extension term. Pricing is based on (usual) discounts to the London Metal Bulletin (LMB) Low Tungsten APT European free-market price.

Although at an early stage, the announcement enhances the potential for the near term development of Molyhil.

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Ore sorting

Tests are currently underway to evaluate the possibility of initial ore sorting at the mine site. The process sorts near surface ore using X-ray scanning. The coarse material is scanned and segregated with mineralised material progressing through the circuit and non-mineralised material being discarded. This helps to reduce transport and milling costs.

X-ray sorting process

Source: Progressive Equity Research, Picture: Steinert X-Ray Sorting System XSS

Ore sorting is commercially used in tungsten processing and tests on Molyhil material were conducted in Australia. In early October 2013, Thor announced positive results from this follow-up ore sorting test work. Three samples totalling 41.3Kgs of ore from Molyhil were separately processed using X-Ray detection in a number of passes through a sorting machine by Applied Sorting Technologies in Melbourne. Gold test work continues in South Africa (see Spring Hill project below).

The table of results below shows that, at the mid-range of the results, Thor could process less than 65% of the ore sorted while losing between 2% & 3% of the tungsten.

Tungsten ore sorting results

Source: Thor Mining

X-‐Ray source / detector system

Ejector control unit

Feed belt

From detector system

Natural path

Deflected path

Waste Retained

Proportion of ore concentrated % Wo3 recovery % Mo recovery40.6% - 42.4% 90.4 – 92.4 73.7 – 75.662.7% - 64.2% 97.0 – 98.0 92.3 – 94.583.2% - 85.7% 99.0 – 99.6 98.0 – 98.0

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SPRING HILL Description

The Spring Hill deposit lies within the historic Pine Creek gold district, with recorded production and estimated reserves of gold in excess of ten million ounces. Major production in the late 19th century and again within the past twenty years has been from deposits in the Pine Creek and Union reefs areas, as well as from Cosmo and Mount Todd, and Cosmo-Howley is currently being developed as a very large underground and open-cast producer.

Thor Mining PLC holds equity rights to 80% of the Spring Hill resource, including current 51% project ownership. Thor is exercising rights to increase its 51% equity interest in the Spring Hill project to 80% through exploration followed by the issue of a small tranche of shares.

Spring Hill: Gold Deposits in the Pine Creek area. Gold resources (mined and calculated) in red (figure for Spring Hill subject to review). Background geology and magnetics.


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Historical production

Gold was first discovered during construction of the Trans-Continental telegraph line in 1871, and a gold-rush followed, with 15 mines operating by 1895. A resurgence of interest in the 1980's led to new mining activity, and numerous deposits have been worked by open-cast methods since then. Spring Hill was discovered about 1880, and produced about 20,000 ounces of gold between 1882 and 1884. Chinese tributors produced gold from shallow workings up to 1914, and limited underground development was undertaken sporadically between 1933 and 1996, with insignificant production. Since 1989 various companies have undertaken exploration at Spring Hill, and TM Gold, a subsidiary of Thor Mining, has been involved since 2011.

Exploration Area

Gold, base-metal, tin and uranium mineralization in this area is hosted by Palaeo-Proterozoic meta-sedimentary and meta-volcanic rocks of the Pine Creek Orogen, associated with Archaean Basement domes and younger granitoids. Gold occurs especially within the South Alligator Group and lower parts of the Finniss River Group along anticlines, strike-slip shear zones and duplex thrusts located in proximity to the Cullen Granite Batholith. Of particular stratigraphic importance are the Wildman Siltstone, the Koolpin Formation, Gerowie Tuff, Mt Bonnie Formation and the Burrell Creek Formation.

The geology

Spring Hill Els, mining tenements, geology and mineral occurrences. Red=gold; blue=tin; green=copper


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Gold mineralisation at Spring Hill is localised in siltstones and greywackes of the Mount Bonnie Formation (South Alligator Group), underlain by the Koolpin Formation and Gerowie Tuff and overlain by the Burrel Creek Formation (Finniss River Group) folded in a tight NW-SE trending anticline, plunging to the SE. Gold occurs in multiple north-south trending zones and axial planar lodes associated with the anticline, grouped as the Hong Kong zone and the historic mining centre of the Main, Middle and East lodes.

The Hong Kong zone contains a sheeted vein system which dips steeply (~70°) to the east, while the bedding in this area dips steeply to the west. The quartz veins vary in width from several millimetres to 0.5m, and contain pyrite when unweathered. The zone has a strike length of about 1000m and a width of about 100m. The historic mining centre contains three main leader veins, which are between 0.4 and 1.5m in width containing quartz with pyrite, galena and arsenopyrite. These were mainly mined in the oxidised zone where the grade averaged 30g/t Au. Bedding parallel veins and saddle reefs also occur within the mined area.

The geological setting and styles of mineralisation are essentially similar to those at the Cosmo-Howley deposits a few kilometres to the north-west (2.3 Mozs Au) and the Callie deposit (7 Mozs Au) in the Tanami belt, 400 km to the south. At these mines, gold mineralisation extends to very considerable depths, suggesting that Spring Hill gold resources could also extend substantially below the currently explored level. Preliminary deeper exploration by Thor has revealed significant gold intersections at depths greater than 300 metres below the Hong Kong Zone.


The most recent open-pit resource estimate for the Spring Hill Hong Kong, Main, Middle and East Zones, at a cut-off of 0.7g/t Au, is 379,000 oz gold within 9.5Mt @ 1.24 grams per tonne (g/t) gold. Using a lower cut-off of 0.5g/t the resource can be restated at 450,000oz gold within 10.0Mt @ 1.06 grams per tonne (g/t) gold accessible for open pit mining.

Four prospects within the Spring Hill mining tenement (Zbonski, Vein Heaven, Steve's Gulley and Pay me Well), were identified and partially investigated by previous licence-holders. These could provide additional sources of near-surface oxide ore suitable for shallow open-pit extraction, and will be further investigated by Thor.

In addition, four potential targets close to the main Spring Hill mineralised zones have been interpreted from high-resolution aeromagnetic surveys, and will also be drill-tested. Outside the Spring Hill mining tenements, there are historic gold occurrences (Union Extended and Isabel) within EL 29465 which appear not to have been investigated in detail, and could host significant open-cast and underground reserves.

Next steps – gold

Economic at current gold prices

The initial extraction plan for Spring Hill is to mine 900,000 tonnes of shallow oxide ore from an open pit, and to transport this to the Crocodile Gold processing plant at Union Reefs for gold extraction. At current gold prices, this would be economic and provide a significant income to Thor Mining, but if some preliminary concentration could be undertaken at low cost on the mine site, the economics could be further improved. Thor has previously noted that the operating cost of production identified in the study announced on 26 June 2013 was below A$1,100/ounce.

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In September 2013, Thor announced that drilling had recommenced at Spring Hill. The program was due to comprise up to 2,000 metres of reverse circulation (RC) drilling targeting near-surface mineralisation, potential extensions to high grade mineralisation and other potential satellite targets within Spring Hill lease area. The program lasted for several weeks.

Thor recently announced the results of that reverse circulation drilling campaign which eventually comprised a total of 1600 metres in 19 holes and was directed mainly at providing more detail on near-surface reserves for open-pit planning.

Two holes, infilling gaps in the Main and Middle Zones, intersected 6 metres each at 6.83 g/t Au and 5.65 gt Au respectively. Two other holes, east of the Hong Kong Zone, confirmed near-surface extensions of gold mineralisation intersected in the 2012 drilling programme but suggested that it occurs in saddle reefs, turning eastwards before outcrop. The remaining holes confirmed lower-grade near-surface gold mineralisation within the boundaries of the proposed open pit. These results increase confidence levels of reserve estimates for the initial open-pit, and are an essential pre-cursor to shallow mining of oxide ore.

In November 2013, Thor announced that new assay results, including one assay of more than 100 grams/tonne gold had been received from the RC drilling programme. The announcement noted that “insufficient information exists, currently to assess true widths of mineralisation, or how it may affect further planned work, however the grades are clearly above those seen at Spring Hill in recent times”. A more detailed announcement will be made once further information is available and assessment completed.

Enhancing the economics through sorting efficiency

Historic underground mining in the area recorded grades of between 15 and 30 grams/tonne of gold in quartz veins, and it is thought that most of the gold in the deposit is contained within broader quartz veins and narrow sheeted veins. This suggests that separation of quartz, if successful, could significantly increase the grade and reduce the tonnage of mill-feed. This will significantly reduce transport and milling costs. If significant amounts of gold are found to occur in the wall rock rather than the quartz veins, ore sorting may not be a viable option. Results from further test work are due shortly.

Next steps - tin In addition to gold, the Spring Hill licences have significant potential for economic tin mineralisation. A total of seven tin occurrences, some mined in a small way in the past, lie in or near the northern and central licences. All appear to consist of quartz vein systems with cassiterite, within the Koolpin formation (stratigraphically below the host-rocks at Spring Hill) and probably associated with granitoids to the east. One tin occurrence (the old Horseshoe Mine) coincides with a strong EM anomaly located by a recent airborne survey. The potential is indicated by the old Mt Wells mine, north of Spring Hill and outside the Thor licence areas, which has resources of 3500 tonnes of tin metal.

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DUNDAS Description

Thor Mining's Dundas ELs (EL6300872, EL6301102) lie at the southern end of the highly prospective Albany-Fraser belt, whose mineral potential has only recently been realised. This belt hosts the 10 million ounce Tropicana deposit plus at least seven other very promising gold prospects. The gold-bearing metamorphic rocks are almost completely covered by younger unconsolidated sediments which accounts for the lack of historic mining sites. Recent mineral exploration in the Dundas area has also been inhibited by restrictions within the Dundas Nature Reserve, which has only been opened to prospecting within the past few years. Thor has a 60% interest in the Dundas project.

Gold and Ni/Co prospects and deposits within the Albany-Fraser Belt, showing location of Thor Mining tenements. Background total field magnetics


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Exploration area / geology

The Thor tenements straddle geologically equivalent rocks to the Tropicana deposit in the Albany-Fraser Belt, and cover an area of promising structural complexity in the regional flexure around the Fraser Range mafics. This additional structural complexity increases the potential for localisation of gold mineralisation in fracture systems. The tenements have relatively shallow cover at around 30 metres resulting in lower exploration costs and higher potential for exploration success. The areas to the east and south-east of the Thor tenements are also geologically attractive as the flexure swings back to the south but palaeo-channels result in cover up to 100m thickness. The recent Sirius Nova magmatic nickel-cobalt discovery in Fraser Range mafics to the north-east of the tenements confirms that this area is also prospective for sulphide nickel, and preliminary geochemical sampling near the contact with Fraser Range mafics has revealed encouraging Cu and Ni values, considering the thickness of the cover.

Dundas tenements and soil sampling

Source: Thor Mining

Location of Thor tenements in relation to inferred local geology

Location of Thor tenements in relation to inferred local geology

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This is in many respects a “frontier” exploration project. The largely buried Albany-Fraser belt has only become an exploration target relatively recently, and is host to the Tropicana deposit, one of the largest recent gold discoveries in Australia. Exploration of the southern end of the belt has only been possible since late 2006, when the Dundas Nature Reserve was opened to mineral exploration activity. Despite the relatively thick cover, soil geochemistry seems to work well in this environment, so additional detailed surveys should provide more information on potential gold mineralisation as well as on Ni/Co.

Next steps

In April 2013, Thor announced that follow-up infill surface soil geochemistry at the Dundas gold project indicated encouraging nickel and copper trends. The group undertook infill grid soil X-ray fluorescence (XRF) analysis in the north eastern area of exploration tenement, E63/1102, in which Thor has a 60% interest. Results of the additional soil sampling indicated three areas of elevated nickel which were broadly coincident with elevated copper - a characteristic of the Nova discovery 70 km to the north of the Thor gold tenements. Thor was due to conduct an infill program to determine the potential for nickel focussed drill targets but only limited exploration resource has been applied.

Detailed aeromagnetic surveys, combined with electromagnetic techniques, should provide a clearer picture of the lithology and structure, and identify targets for further investigation by shallow RC drilling. This is a very prospective area for Ni/Co as well as for gold, but the lack of outcrop of older rocks and the thick cover mean that exploration must be methodical and rigorous. A major exploration programme in the Dundas tenements may have to wait for increased funding resulting from production from either or both of Spring Hill and Molyhil, but the ultimate target in Dundas could be larger than in either of the other Thor projects.

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REALISING VALUE The recent financing activities provide Thor with the capital to continue the process of developing its assets. We understand that drill costs for diamond drilling are currently A$400 per metre with reverse circulation drilling around half that number. In total, we expect Thor to initially spend up to A$4 million in exploration and drilling on its three projects.

The table below summarises our earlier, more detailed, comments on the potential of the three projects and the likely next steps:

Realising the potential


Economic viability/potential Development

Molyhil There is considerable potential for discovery of additional skarn-hosted mineralisation in and around Molyhil. The anomalies need to be investigated by shallow drilling and then by deeper RC and core drilling. Additional open-cast resources could provide feed for the Molyhil plant and extend project life, while deeper underground resources could support a longer-term mining operation.

In October 2013, Thor announced terms for a future off-take agreement with US-based Global Tungsten & Powders Corp. of Pennsylvania, in respect of scheelite concentrate. The terms include off-take for around 70-75% of the annual production of scheelite concentrate from Molyhil for the current 4 planned year life-time of the mine with right of first refusal to a 2 year extension term. Although at an early stage, the announcement enhances the potential for the near term development of Molyhil.

Spring Hill Gold: The most recent open-pit resource estimate for the Spring Hill Hong Kong, Main, Middle and East Zones, using a cut-off of 0.5g/t is 450,000oz gold within 10.0Mt @ 1.06 grams per tonne (g/t) gold accessible for open pit mining. Four prospects are suitable for shallow open-pit extraction, and will be further investigated by Thor. Four other potential targets could host significant open-cast and underground reserves.

Gold: Thor and its co-venturer, Western Desert Resources, are proposing to accelerate development at Spring Hill. Preparing for mine development following positive results of a study to extract near surface oxide ore from Spring Hill at a capital cost of less than A$5 million.

Tin: the Spring Hill licences have significant potential for economic tin mineralisationThepotential is indicated by the old Mt Wells mine, north of Spring Hill and outside the Thor licence areas, which has resources of 3500 tonnes of tin metal.

Dundas A a “frontier” exploration project which has only become an exploration target relatively recently. Exploration of the southern end of the belt has only been possible since late 2006. Despite the relatively thick cover, soil geochemistry seems to work well in this environment, so additional detailed surveys should provide more information on potential gold mineralisation as well as on Ni/Co.

Detailed aeromagnetic surveys, combined with electromagnetic techniques, should provide a clearer picture of the lithology and structure, and identify targets for further investigation by shallow RC drilling. This is a very prospective area for Ni/Co as well as for gold, but the lack of outcrop of older rocks and the thick cover mean that exploration must be methodical and rigorous.

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Molyhil Since the publication of the Definitive Feasibility Study (DFS) in June 2012, Thor has been seeking off-take and project finance agreements.

Recently, Thor’s management team has produced plans to upgrade the Molyhil project valuation from an NPV of around A$30 million to an NPV of greater than A$100 million including a reduction in capital cost. It suggests that first production could commence ‘within twelve months of securing off-take and finance.’

There was an increase in the resource estimate in FY 12 with an upgraded statement of Open Cut Ore Reserves and the completion of an upgraded Definitive Feasibility Study. The results are summarised in the tables below.

Molyhil resource estimate

Source: Thor Mining

Near-surface high grade Tungsten

Source: Thor Mining

Molyhil open cut ore reserve statement

Source: Thor Mining

Optimisation and exploration

Thor intends to improve the economics at Molyhil through the optimisation of the project and further exploration.

The former will involve reducing costs to ensure that lower grade ore and deeper ore become economic to extract. That will allow the conversion of more of the Molyhil resource to reserve and extend the life of the mine. One example of potential cost saving comes from the ore sorting trials – something which we discuss in more detail earlier in this document.

Category Tonnes (m) WO₃ (%) Mo (%) Fe (%)

Indicated 3.8 0.29 0.13 18.8

Inferred 0.9 0.25 0.14 15.2

Total 4.7 0.28 0.13 18.1

Bench Top mRL Tonnes WO₃ % WO₃ Tonnes MoS₂ (%) Fe (%)

420 47,948 0.73 350 0.13 39

400 359,207 0.57 2,044 0.23 487

380 439,589 0.48 2,096 0.22 569

360 576,270 0.29 1,690 0.20 702

Category Tonnes (M) WO₃ % WO₃ Tonnes Mo (%) Mo Tonnes

Probable 1.64 0.42 6,900 0.13 2,200

Total 1.64 0.42 6,900 0.13 2,200

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The latter will take advantage of the fact that there are 27 other known tungsten deposits / occurrences within 60km of Molyhil. As the area has seen very little exploration since the 1970s, there is high potential to extend the Molyhil resource by turning known deposits into economic resources and discovering new deposits. The group has noted that every 200,000 tonnes of additional mineable resource would add around A$10million to its estimate of Molyhil’s NPV. In the section on the Molyhil project earlier in this document, we note that high resolution airborne geophysics and ground based geophysical surveys are among the drivers of additional resource delivery. The potential improvement that Thor sees from these actions is summarised in the table below:

Molyhil NPV potential improvement

Source: Thor Mining

Revisions to Cost Assumptions at Molyhil

Thor has recently announced further details of its revisions to Operating costs and Capital costs at Molyhil. The changes are summarised in the tables below which we reproduce from Thor’s presentation. They reflect a meaningful reduction in Operating costs with a small uptick in Capital costs.

Molyhil November 2013 Operating Costs update

Costs per tonne ore processed A$ DFS June 2012 Adjustment Revised

Mining 24.23 -4.24 19.99

Plant inc' labour 28.93 -5.77 23.16

Power / Water 19.68 -5.42 14.26

Camp 7.10 -1.84 5.26

Admin 3.45 3.45

Transport 0.78 0.78

Scheelite refloat * 5.35 5.35

Total 89.52 -17.27 72.25

Cost/mtu after Mo credit (U$) 125 <90

Source: Thor Mining

Current Potential

Reserve (mt) 1.6 >3.0

Mine life (years) 4 >8

NPV (A$m) 28 >100

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Molyhil November 2013 Capital Costs update

Source: Thor Mining

DFS Cost Estimates A$m DFS Saving Identified Additional Plant Revised

Mining Plant - - 5.8 5.8

Process Plant 33 2.1 1.5 32.4

Site Services 7.7 3.7 2.2 6.2

Project Infrastructure 2.7 1.9 0.8

Village & Accommodation 3.2 1.0 2.1 4.3

Other 0.3 0.3

Total Direct 46.9 8.7 11.6 49.8

Project Engineering & Mg’t 13.6 13.6

Pre-production items 3.4 3.4

Contingency 5.9 5.9

Total estimate 69.8 72.7

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Spring Hill Thor is targeting the conversion of this 300,000-400,000oz gold resource to a profitable mining operation within twelve months. It has an indicated resource at shallow depth of 390,000oz of gold (see the upper of the two tables below). It has an agreement with Crocodile Gold for gold extraction at its nearby Union Reefs processing plant. The mine site is close to most infrastructure requirements.

Following the receipt of all assays and quality control data, an independent resource update estimate was commissioned and it was produced in November 2012. The result of the Spring Hill resource estimate update was an Indicated Resource of 450,000 oz. gold within 10.0Mt @ 1.06 grams per tonne (g/t) gold using a 0.5 g/t cut-off grade, to a maximum depth of 150 metres, which is considered the nominal limit for open pit mining (see the lower of the two tables below). The entire resource is classified as Indicated.

Spring Hill resource estimates

Source: Thor Mining

Mine development

In June 2013, Thor Mining announced that it was preparing for mine development, commencing within 12 months of that date, following positive results of a study to extract near surface oxide ore from Spring Hill.

In April 2013, Thor and its co-venturer in Spring Hill (Western Desert Resources (WDR)) had previously announced that it had been developing a proposal to

Category Measured Indicated Inferred Total

Tonnes (Mt)

Grade g/t Au

Tonnes (Mt)

Grade g/t Au

Tonnes (Mt)

Grade g/t Au Tonnes (Mt) Grade g/t Au

Contained Gold (000s

oz)

Zone of Oxidation- -

3.14 1.59- -

3.14 1.59 161

Transition zone- -

0.87 1.78- -

0.87 1.78 50

Unweathered zone- -

2.94 1.89- -

2.94 1.89 179

Total- -

6.95 1.74- -

6.95 1.74 389

24/06/2013 Spring Hill Undiluted Resource Estimate (6.9 million tonnes @ 1.74g/t gold Cut-‐off grade 0.7 g/t)

Category Measured Indicated Inferred Total

Tonnes (Mt)

Grade g/t Au

Tonnes (Mt)

Grade g/t Au

Tonnes (Mt)

Grade g/t Au Tonnes (Mt) Grade g/t Au

Contained Gold (000s

oz)

Zone of Oxidation- -

4.6 1.28- -

4.6 1.28 189

Transition zone- -

1.3 1.41- -

1.3 1.41 59

Unweathered zone- -

4.1 1.54- -

4.1 1.54 203

Total- -

10 1.40- -

10 1.40 451

10/04/2013 Spring Hill Undiluted Resource Estimate (10.0 million tonnes @1.40g/t gold. Cut-‐off grade 0.5 g/t)

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accelerate development at Spring Hill. That involved constraining the initial mine plan to extract only near surface oxide material for processing off-site. It is hoped that this measure will help to secure early environmental and regulatory approval to mine shallow oxidised ore. That would mean that any mining of deeper transition and primary ore will be subject of further subsequent studies and approval applications. Thor intends to continue processing economic studies and permitting for that latter purpose. Further drilling has commenced to delineate additional, low cost near-surface mineralisation.

The two companies have lodged a Notice of Intent (NOI) with the Northern Territory Department of Mines and Energy. The assessment of the NOI will determine the level of environmental and other regulatory compliance required. Thor anticipates that, inter alia, the lack of a processing plant and the expectation that the project will not generate acidic liquor from waste dumps will mean that the project approval will face ‘comparatively fewer environmental hurdles’.

The main highlights of the plan are as follows:

§ 2 year 500,000 tonnes per annum mining operation

§ Oxide ore only processed by Crocodile Gold at Union Reefs

§ Initial gold production of around 20,000oz per annum for 2 years

§ Operating Margin >A$450/oz (pre tax & royalties)

§ Minimal up-front capital; mining only, infrastructure in place

§ Speedy low-cost permitting; near-surface mining only, no process plant

The assumptions behind the plan are summarised in the table below and result from a pit optimisation study by independent consultants AVCS Pty Ltd. The regulatory announcement noted that the capital estimate of ‘less than A$5 million has not been subject to detailed engineering’. The principal capital expenditure requirements are the establishment of a waste dump, some minor pads and road building and upgrading.

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Spring Hill mine development: key operating and financial assumptions (base case)

Source: Pit optimisation study by independent consultants AVCS Pty Ltd

Clearly, subsequent to this report, the gold price has declined to (as of the time of printing) c. US$1250/oz. Offsetting this, the Australian dollar has weakened, with the overall effect that the A$ Gold price could be around A$1350-1360 compared to A$1473 as shown above.

The cost of production, importantly, according to this report, remains below the spot gold price, which could allow value to be created over time. Additionally, recent announcements in terms of additional drilling results could lead to an increased resource.

Base case assumption

Mining

Ore mined (tonnes) 880,000

Ore cut-off grade (grams / tonne) 0.8

Diluted ore grade mined (grams / tonne) 1.56

Waste mined (tonnes) 1,970,000

Stripping ratio 2.2 : 1

Processing

Ore transported to Union Reefs & processed (tonnes) 880,000

Feed grade (grams / tonne) 1.56

Metallurgical recovery 90%

Ounces recovered 41,300

Financial Assumptions / Outcomes

US$ Gold price (per ounce) 1400.00

A$ / US$ exchange rate 0.95

A$ Gold price (per ounce) 1473.00

Mining costs (ore and waste) (A$ per tonne) 4.00

Processing costs (A$ per tonne) 33.00

Total Operating costs (A$ per ounce) 1170.00

Capital Cost Less than A$5 million

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Dundas Dundas is a more speculative project, but with potential for discovery of world-class gold mineralisation in an under-explored and poorly-exposed portion of a re-worked Archaean greenstone belt hosting recent very significant gold discoveries.

We describe Dundas earlier in this note as more of a “frontier” exploration project. Earlier in 2013, Thor announced that follow-up infill surface soil geochemistry indicated encouraging nickel and copper trends. This is a very prospective area for Ni/Co as well as for gold, but the lack of outcrop of older rocks and the thick cover mean that exploration must be methodical and rigorous. Given the specific plans for optimising returns from Spring Hill and Molyhil, we believe that a major exploration programme in the Dundas tenements may have to wait for increased funding but that the ultimate target in Dundas could be larger than in either of the other Thor projects.

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FY13 RESULTS AND FINANCING Loss for the period

The net result of operations for Thor’s financial year to the end of June 2013 was a loss of £1.124 million compared to a loss of £0.959 million the previous year. During the most recent year, the company raised funds totalling a gross £1.4 million.

H1 13 fundraising

In the first half of the financial year to the end of June 2013, Thor raised £1.27 million before costs from the issue of 92 million shares in the United Kingdom at prices of 0.7 pence and 1.25 pence, and 50 million shares in Australia at a price of 1.2 cents (0.8 pence).

Debt facility

During the second half of FY13, the company also borrowed A$1 million from private sources for a 3 year term, to assist in funding exploration and development activities, as well as general working capital requirements. The amount was fully drawn down during the year. Thor’s subsidiary companies, Molyhil Mining Pty Ltd and T M Gold Pty Ltd have each granted a mortgage over certain tenements, generally comprising the respective projects at Molyhil and Spring Hill on which the subsidiaries hold mineral licences or exploration licences. In addition, the company has issued to the lender options in two tranches, exercisable for A$1,000,000, as follows:

§ 84,181,088 options which may be exercised, at the discretion of the option holder, at a price of A$0.007428 (0.7428 cents) at any date not later than 19 March 2016.

§ 62,887,808 options which may be exercised, at the discretion of the option holder, at a price of A$0.005963 (0.5963 cents) at any date not later than 3 June 2016.

FY14: further capital raising and reduction in nominal value of ordinary shares

On 13 August 2013, Thor announced that it had placed 148,888,887 ordinary shares at a price of 0.225p per share to raise £335,000 before expenses in the UK. Subsequently, on 30 August 2013, Thor announced that it had conditionally placed a further 144,900,000 ordinary shares in the UK at a price of 0.25p per share to raise a further £362,250 before expenses. Funds raised through the placings (a combined £697,250) will be used to develop its assets as well as to provide general working capital.

The ordinary shares of the Company have a nominal value of 0.3p per share and, under the UK Companies Act 2006, the Company is unable to issue ordinary shares below their nominal value. Accordingly, the Company convened a general meeting, which took place on 3 September 2013 to reorganise its share capital and, accordingly, reduce the nominal value of its ordinary shares. Each ordinary share of 0.3p was converted into one ordinary share of 0.01p and one deferred share of 0.29p. The deferred shares effectively have no value.

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ESTIMATES Thor ended its financial year to the end of June 2013 with net cash of £188,000. Along with the financing arrangements outlined above, we have assumed that the spending on exploration and development necessitates further financing during our forecast period to the end of Thor’s financial year-end in June 2015.

Assumptions include a net zero from Molyhil as agreements progress

Consequently, we have assumed a level of borrowings which would be necessary to fund the level of spending during the two periods which produce operating losses of around £0.6 to £0.8 million in each financial year with Capex of £1.2m per annum.

Importantly, our estimates effectively exclude any impact from Molyhil with an assumed zero balance from the development demands and the existing off-take agreement as Thor looks to conclude a further agreement for the remaining 25% to 30% of production. At present, we assume that Molyhil has no impact on revenues or costs. We shall update this when further details of any agreements are made public.

Using those assumptions, but without assuming further equity issues, Thor would end FY14 and FY15 with net debt of £1.7 million and £3.6 million respectively. This is represented in our forecasts by small positive cash balances and assumed borrowings to fund the costs outlined above.

New financing opportunities

There is no guarantee that Thor will make the level of investment that we have assumed (it could opt to spend less), nor that it will be able to arrange further debt or equity finance – although both those sources of funds could be viable options. We note above the company’s success in raising funds already in its current financial year.

Value in Spring Hill

In addition, Thor has exciting and highly attractive project assets with clear opportunities for the involvement of third parties in farm-ins or joint ventures. There appears to be significant value in Spring Hill, for instance.

Assuming, say, a resource value of A$20 per resource ounce, this would imply a value of A$6.4 million for Thor’s 80% share of Spring Hill based on 400,000oz (note the resource estimate tables in the previous section).

Thor’s options

In summary, Thor could raise funds from the markets, borrow more, realise value from existing assets or simply opt to spend less. It could follow those options individually or in combination.

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FINANCIAL FORECASTS


Year ended June FY-11 FY-12 FY-13 FY-14 FY-15£m £m £m £m £m

Profit & Loss Act Act Act Est EstRevenue 0.0 0.0 0.0 0.0 0.0Adj EBITDA (2.8) (0.7) (1.1) (0.6) (0.6)Adj EBIT (2.8) (0.7) (1.1) (0.6) (0.6)Reported PBT (2.8) (1.0) (1.1) (0.6) (0.7)PBT before exceptionals and AAG (2.8) (0.7) (1.1) (0.6) (0.7)Fully adj PBT (2.8) (0.7) (1.1) (0.6) (0.7)NOPAT £ (2.8) (1.0) (0.8) (0.4) (0.4)Reported EPS (p) (0.6) (0.1) (0.1) (0.1) (0.1)EPS before exceptionals and AAG (p) (0.6) (0.1) (0.1) (0.0) (0.0)Fully adj EPS (p) (0.6) (0.1) (0.1) (0.1) (0.1)Dividend per share (p) 0.0 0.0 0.0 0.0 0.0Cash flow & Balance sheetOperating cash flow (0.9) (0.7) (0.8) (0.7) (0.6)Free Cash flow £m (1.5) (3.2) (2.4) (2.0) (1.9)FCF per share p (0.3) (0.5) (0.3) (0.2) (0.1)Acquisitions 0.0 0.0 0.0 0.0 0.0Net cash flow 1.4 (1.1) (1.0) (1.3) (1.9)Shares issued 2.9 2.1 1.4 0.7 0.0Overdrafts / borrowings (0.0) (0.0) (0.6) (1.8) (3.7)Net (Debt)/Cash 1.6 0.5 (0.4) (1.7) (3.6)

Metrics FY-11 FY-12 FY-13 FY-14 FY-15Adj EBIT growth -73.8% 51.8% -46.9% 0.0%Adj PBT growth -74.5% 57.2% -42.3% 12.1%Adj EPS growth -82.7% 14.2% -57.8% 6.4%

Valuation FY-11 FY-12 FY-13 FY-14 FY-15EV/Sales n.a. n.a. n.a. n.a. n.a.EV/EBITDA (1.9) (7.3) (4.8) (9.4) (9.4)EV/NOPAT (1.9) (5.3) (6.5) (12.2) (12.2)PER n.a. n.a. n.a. n.a. n.a.Dividend yield 0.0% 0.0% 0.0% 0.0% 0.0%FCF yield -88.8% -129.8% -70.4% -42.8% -38.9%

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THE MANAGEMENT TEAM Michael Robert Billing

Executive Chairman and CEO Mick Billing has over 37 years of mining and agri-business experience and a background in finance, specialising in recent years in assisting in the establishment and management of junior companies to the position where they can be sustainable businesses. His career includes experience in company secretarial, senior commercial, and CFO roles including lengthy periods with Bougainville Copper Ltd and WMC Resources Ltd. He has worked extensively with junior resource companies over the past 15 years. He was appointed to the Board in April 2008. He is also a director of ASX listed companies Southern Gold Limited and Black Fire Minerals Limited.

Allan Burchard

Chief Financial Officer/Company Secretary Mr. Allan Burchard was appointed as Chief Financial Officer and Company Secretary 18 November 2010. He is a chartered accountant with 40 years’ experience, including 20 years as an audit partner in Australia and Kazakhstan with KPMG, an international accounting and advisory firm. He continues to hold Board and advisory positions with a number of Adelaide based private companies and not-for-profit organisations.

Stephen F Ronaldson

Joint Company Secretary (UK) Mr Stephen Ronaldson is the joint company secretary as well as a partner of the Company’s UK solicitors, Ronaldsons Solicitors LLP. Mr Ronaldson has an MA from Oriel College, Oxford and qualified as a Solicitor in 1981. During his career Mr Ronaldson has concentrated on company and Commercial fields of practice undertaking all issues relevant to those types of businesses including capital raisings, financial services and Market Act work, placings and admissions to AIM and Ofex. Mr Ronaldson is currently company secretary for a number of companies including eight AIM list companies.

Richard Bradey

Exploration Manager (appointed May 2011) Mr Richard Bradey is a Geologist with over 20 years exploration and development experience. He holds a Bachelor of Science in Applied Geology and a Masters Degree in Natural Resources. His career includes exploration, resources development and mine geology experience with a number of Australian mining companies.

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RISKS AND UNCERTAINTIES Commodity risk

Commodities are subject to high levels of volatility in price and demand. The price of commodities depends on a wide range of factors, most of which are outside the control of Thor Mining.

Business, exploration and development risks

Mining, processing and transportation costs depend on many factors, including commodity prices, capital and operating costs in relation to any operational site. Availability of skilled workers may be limited.

Exploration and development activity is subject to numerous risks, including failure to achieve estimated mineral resource, recovery and production rates and capital and operating costs.

Success in identifying economically recoverable reserves can never be guaranteed. Thor Mining also cannot guarantee that the companies in which it has invested will be able to obtain the necessary permits and approvals required for development of their projects. Timely approval cannot be guaranteed. Changes in government policy or regulation may affect the business.

Some of the states within the countries in which the Group operates have native title laws which could affect exploration and development activities.

The companies in which the Group has an interest may be required to undertake clean-up programmes on any contamination from their operations or to participate in site rehabilitation programmes which may vary from country to country.

Unforeseen major failure, breakdowns or repairs required to key items of plant and equipment. Unforeseen adverse geological factors or prolonged weather conditions.

Market risk

The ability of the Group (and the companies in which it invests) to continue to secure sufficient and profitable sales contracts to support its business.

General and economic risks

Contractions in the world’s major economies or increases in the rate of inflation.

Weakness in global equity and share markets, in particular, in the United Kingdom, and adverse changes in market sentiment towards the resource industry.

Currency exchange rate fluctuations and, in particular, the relative prices of the Australian Dollar, and the UK Pound.

Exposure to interest rate fluctuations.

Funding risk

The Group or the companies in which it has invested may not be able to raise, either by debt or further equity, sufficient funds to enable completion of planned exploration, investment and/or development projects.

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Disclaimers and Disclosures

Copyright 2013 Progressive Equity Research Limited (“PERL”). All rights reserved. PERL provides professional equity research services, and the companies researched pay a fee in order for this research to be made available. This report has been commissioned by the subject company and prepared and issued by PERL for publication in the United Kingdom only. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable; however, PERL does not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of PERL at the time of publication, and any estimates are those of PERL and not of the companies concerned unless specifically sourced otherwise. PERL is not regulated by the Financial Conduct Authority (FCA).

This document is provided for information purposes only, and is not a solicitation or inducement to buy, sell, subscribe, or underwrite securities or units. Investors should seek advice from an Independent Financial Adviser or regulated stockbroker before making any investment decisions. PERL does not make investment recommendations. Any valuation given in a research note is the theoretical result of a study of a range of possible outcomes, and not a forecast of a likely share price. PERL does not undertake to provide updates to any opinions or views expressed in this document.

This document has not been approved for the purposes of Section 21(2) of the Financial Services & Markets Act 2000 of the United Kingdom. This document is a marketing communication under FCA Rules. It has not been prepared in accordance with the legal requirements designed to promote the independence of investment research. It is not subject to any prohibition on dealing ahead of the dissemination of investment research.

PERL does not hold any positions in the securities mentioned in this report. However, PERL’s directors, officers, employees and contractors may have a position in any or related securities mentioned in this report. PERL or its affiliates may perform services or solicit business from any of the companies mentioned in this report.

The value of securities mentioned in this report can fall as well as rise and may be subject to large and sudden swings. In addition, the level of marketability of the shares mentioned in this report may result in significant trading spreads and sometimes may lead to difficulties in opening and/or closing positions. It may be difficult to obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance.

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