1 August 2017

THOR MINING PLC

("THOR" OR THE "COMPANY")

QUARTERLY REPORT APRIL TO JUNE 2017

Commenting, Mr Mick Billing, Executive Chairman of Thor Mining, said:

"A busy and productive period for the Company and its investors, with significant progress on both new and existing projects.  The continued positive results at Pilot Mountain demonstrate the significant and increasing value of this project and we are very keen to commence the next drilling program in the next 2 to 3 weeks.

"We are also highly encouraged by our recent site visit and due diligence exercise, which is ongoing, at the Big Sandy Lithium project in Nevada"

TUNGSTEN PROJECTS

PILOT MOUNTAIN TUNGSTEN PROJECT - NEVADA USA (100% Thor)

Thor's Pilot Mountain Project, acquired in 2014, is located approximately 200 kilometres south of the city of Reno and 20 kilometres 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 of these deposits are in close proximity (~three kilometres) to each other and were the subject of small-scale mining activities at various times during the 20th century.

In December 2014, Thor outlined a proposed exploration and development plan with the objective of upgrading the knowledge and status of the mineralisation of these deposits where historical drilling outlined potentially economic mineralisation.

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

Following the March quarter drilling program the Company announced, on 22 May 2017, a 55% increase in the Pilot Mountain tungsten resource estimate.

Subsequent to this, a follow up drill program is due to commence early in August 2017, comprising:

·     Two diamond drill holes at Desert Scheelite, aimed at extending the 5.7% copper ("Cu") equivalent at depth

·     Up to four RC drill holes at the Good Hope deposit to follow up on historical high grade intersections including 36.5 m @ 0.4% WO₃, 0.25% Cu, and 0.47% zinc ("Zn"). 

A drill program in 2012 at Desert Scheelite facilitated the estimate and publication of a resource estimate for that deposit, shown in Table1.  Importantly, the final hole of the program intersected 17.5 metres @ 1.80% Copper (Cu) plus 2.2% Zinc (Zn) and 32 g/t Silver (Ag), along with 13.5metres of 0.89% tungsten trioxide (WO₃).  At current commodity prices (US$2.8/lb Cu, US$1.27/lb Zn, US$16.70/oz Ag, and US$225/mtu WO₃) this delivers an equivalent copper grade of 5.7%.

Good Hope comprises a small inlier (window) of mineralised skarn exposed within an area overlain by younger volcanic rock. The area has been worked to some extent with small scale exploratory shafts, plus trenches & adits, but little systematic exploration of basement below the volcanic cover is apparent.

Exposed mineralisation in the exploration trenches and the vertical extent of mineralisation in RDH-2 (highlighted in bold Figure 2) indicate Good Hope mineralisation is likely to be steeply dipping and similar to the Desert Scheelite deposit rather than the flat lying mineralisation to the west.

MOLYHIL TUNGSTEN PROJECT - NT (100% Thor)

In January 2015, Thor announced an updated feasibility study for its wholly-owned Molyhil tungsten project, with robust outcomes.

The project development cost for Molyhil is estimated at A$64 million, or US$48 million at a projected exchange rate of A$1:00 = US$0.75.  Of this, approximately US$10 million is for equipment, for which equipment or leasing finance could potentially be secured, thus reducing the project finance requirement to circa US$40 million.

Molyhil has a forecast 12 month construction schedule from development commencement to first production.

The Company continues to refine operating and capital parameters to improve the project viability.

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

In June 2017 the Company was granted an additional exploration licence ("EL") area to secure prospective ground contiguous with the Gap Track prospect to the south of existing tenements).

The new EL area will facilitate exploration access to a further 68 square kilometres of ground highly prospective for further Molyhil style skarn hosted tungsten deposits.  First steps will comprise reprocessing the latest aero-magnetic data to prioritise targets for drill testing.

GOLD PROJECTS

DUNDAS GOLD PROJECT - WA (60% THOR)

The Dundas gold project is located approximately 100 kilometres east-south-east of Norseman in Western Australia.  The tenements are in close proximity to the sealed arterial Eyre Highway, providing all-weather access to the project area.  Within the tenements, access is provided by bulldozed tracks. It is also approximately 250 kilometres south of the major regional mining centre of Kalgoorlie.

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

An air-core drilling program conducted during the quarter encountered no significant mineralisation.

SPRING HILL GOLD PROJECT - NT (ROYALTY ENTITLEMENT)

In February 2017 Thor completed the A$3.5 million sale of its Spring Hill Gold project¹.

The sale transaction carries an ongoing residual royalty 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. 

Gold is currently trading at approximately A$1,590/oz, and has remained above A$1,500 per ounce for more than 12 months.

Subsequent to the end of the quarter the Company was advised of gold production from a small stockpile of ore, totalling 955 ounces of gold.  Of this total, 645 ounces were produced during the June quarter, and Thor has been advised that it is due a royalty payment of A$9,030.

¹Refer ASX and AIM announcement of 29 February 2016

LITHIUM PROJECTS

On 14 June 2017, the Company announced the acquisition of a 25% interest in US Lithium Pty Ltd ("USL"). In addition, Thor holds an option to acquire the remaining 75% of USL, subject to satisfactory completion of project due diligence. 

Should the Company exercise the option, Thor will acquire the remaining 75% of USL through the issue of 52,777,777 ordinary shares of 0.01p each in the capital of Thor ("Ordinary Shares") at a deemed price of 0.90p per Ordinary Share (for a total deemed share consideration value of £475,000).

USL is an Australian private limited company which has a 100% owned subsidiary company, registered in the United States of America ("USA"), that holds 100% of four exploration properties; three in the State of Arizona and one in the State of New Mexico. USL's primary asset is the Big Sandy project, which comprises 112 Federal claims each of approximately 20 acres in size. A 2017 exploration program was concluded with 231 hand dug channel samples, with some promising lithium grades discovered, averaging 786 ppm lithium with a range of 19 ppm to 2,930 ppm lithium.

Subsequent to the end of the period, Thor representatives visited each of the Arizona project sites and collected independent samples, in particular from the Big Sandy project. Assay testing of samples collected is now underway along with mineralogy testwork and Thor has now agreed with the remaining shareholders of USL that the option period will not expire until the receipt and review of these findings.   Discussions were also held with the US Bureau of Land Management ("BLM") which is responsible for title and permitting issues.

Thor and USL have further agreed to apply for additional mineral claims, adjacent and close to the existing Big Sandy claims where both parties agree significant potential exists to expand the potential deposit.

CORPORATE AND FINANCE

During the quarter, a placement to raise UK£460,000 from sophisticated investors was announced.  This was subsequently ratified at a General Meeting of shareholders on 27 July 2017.

Competent Person's Report

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.

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96  Origin Appendix 8  Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Cash inflows expected for the next quarter: The Company expects to receive £460,000 from a placing announced on the ASX on 21 June 2017, and approved by shareholders on 27 July 2017.  The allotment of the placing shares occurred on 28 July 2017.

1.1         Compliance statement

1          This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2          This statement gives a true and fair view of the matters disclosed.

Sign here:           ........ ....................................................                               Date: .......31 July 2017............

(Company secretary)

Print name:        ..Ray Ridge.........................................

Notes

1.         The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2.         If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3.         Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

Enquiries:

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.