1 November 2017

THOR MINING PLC

("THOR" OR THE "COMPANY")

QUARTERLY REPORT JULY TO SEPTEMBER 2017

FINANCE

·    In July 2017, the Company completed a share placement to sophisticated investors to raise £460,000 before expenses, following approval at a general meeting of shareholders.

·    In October 2017, the Company announced a share placement to sophisticated investors to raise £565,000 before expenses, including just over £329,000 subject to approval at a general meeting of shareholders, to be scheduled during the December quarter.

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

"High cost exploration is no longer a key activity for Thor as we move towards accelerated commercialisation of key tungsten and copper projects, as described briefly below."

"At Molyhil, this is likely to include a review of the Open Cut Ore Reserve, and subsequently an upgraded Definitive Feasibility Study as we look for partners and financiers to develop this project."

"At Pilot Mountain the emphasis is likely to be on scoping & pre-feasibility studies, and we are engaging with industry partners to participate in this process."

"At Kapunda we look towards the resource estimate for that portion of the deposit amenable to in-situ recovery techniques, and proof of concept activities which we hope will progressively yield increasing confidence in this exciting project."

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 have been subjected to 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 background on the project is available on the Thor Mining website www.thormining.com/projects.

A drill program was completed successfully during the quarter with assays results announced on 6^th October 2017.

At Good Hope, a 28-metre-wide zone of copper zinc and tungsten mineralisation has been confirmed beneath shallow alluvial cover.

Better than expected assay results for drill hole 17GHRC-02 mean a potential 70 metre strike extension of the Good Hope lode to the west.

Significant Assays:

·   17GHRC01: 26.6m @ 0.21% WO₃, 1.2% Zn, 1.0% Cu from 0.8 metres downhole

·   17GHRC02: 12.2m @ 0.12% WO3 from 57.8m and 3m @ 0.37% WO₃ within 8.4m @ 0.59% Cu from 80.8m

At Desert Scheelite drill hole 17DSDD-02 intersected two mineralised zones; the upper intersection represents a new second lode previously identified by geophysical targeting prior to drilling. The new second lode sits approximately 20 metres to the hanging wall (north) of the existing Desert Scheelite lode and may extend the entire strike length of the Desert Scheelite resource.

The lower 17DSDD02 intersection represents a 60 metre down dip extension to the existing Desert Scheelite lode. This down dip extension could occur along the entire length of the resource.

Significant Assays:

·   17DSDD02: 23.3m @ 0.21% WO₃ from 198m and 15.2m @0.25% WO₃ from 253.3m

MOLYHIL TUNGSTEN PROJECT - NT (100% Thor)

In January 2015, Thor announced an updated feasibility study for its wholly-owned Molyhil tungsten project, demonstrating a project NPV of A$67million (approximately £39million).

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

Subsequent to the end of the quarter (on 30 October 2017) Thor announced substantially improved results from ore sorting compared with prior testwork.

Results from this work have been reviewed internally, and the Board expects that this testwork has the potential to allow a materially increased portion of the Molyhil resource estimate which is economic to recover.

The recent increases in tungsten prices has resulted in the Company being encouraged by potential off-takers and financiers to move toward enhancing feasibility and development.  The Company is considering its options, including the potential for joint venture, offtake, or acquisition agreements, should there be sufficient third-party interest.

KAPUNDA COPPER PROJECT - SA (Thor earning 45%)

On 1^st August 2018 Thor announced an investment 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").

ECR have advised a staged approach in the evaluation, assessment, and permitting of Kapunda, with an initial milestone being a mineral resource estimate on that portion of the deposit amenable to ISR techniques, expected in the December quarter.

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 for approximately A$1,660/oz, and has remained above A$1,500 per ounce since completion of the project sale.

¹Refer ASX and AIM announcement of 29 February 2016

US Lithium Investment

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

During the quarter, Thor representatives visited each of the Arizona project sites as part of the due diligence exercise following the acquisition.

While field sampling results did not raise issues of concern, recent positive developments in respect of the Company's core business activities, have influenced the directors to pause in regard to the opportunity with US Lithium and at this point have chosen to not exercise the option to acquire the remainder of US Lithium.  This decision also avoids the need to issue a significant number of Thor shares at, 0.9pence, which is now a substantial discount to the current share price.

We also understand from US Lithium, that third party interest has been shown in their business, and by standing aside, we will allow this interest to be developed more proactively.

The directors' intention is to maintain Thor's current interest in USL and assess related strategic Lithium opportunities for the company as they arise. 

Other opportunities

The Company has chosen to focus the thrust of its activities and expenditure on work in relation to commercialisation of its principal assets at Pilot Mountain, Molyhil and Kapunda.

Alongside this the Company has also become aware of additional low cost opportunities to provide exposure to the Pilbara region, which has recently seen considerable interest in ground prospective for conglomerate hosted gold; and lithium.

The Company is currently assessing an opportunity in this region and is conducting due diligence activities in this regard. If successful the Company could have exposure to the Pilbara, on a low cost basis, at an extremely important time for the region following the discovery of conglomerate hosted gold and with the need for new Lithium discoveries.

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 £235,789 on or by 3 November 2017 from a placing announced on the ASX on 23 October 2017. In addition, a second tranche of the placement £329,211 is subject to shareholder approval on 29 November 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 October 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.