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Thor Update

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Mick Billing, CEO of Thor Mining delivered this presentation at Mining the Territory 2012. For more information on the annual event, please visit www.miningnt.com.au/
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1 Mick Billing - Chairman & Chief Executive Officer Tel: +61 8 7324 1935 Fax: +61 8 8351 5169 Email: [email protected] Address: Level 1, 32 Richmond Road, KESWICK, SA, 5035, AUSTRALIA www.thormining.com Mining The Territory - 18 to 20 September 2012
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Page 1: Thor Update

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Mick Billing - Chairman & Chief Executive OfficerTel: +61 8 7324 1935 Fax: +61 8 8351 5169

Email: [email protected]: Level 1, 32 Richmond Road, KESWICK, SA, 5035, AUSTRALIAwww.thormining.com

Mining The Territory - 18 to 20 September 2012

Page 2: Thor Update

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This document and all other information (whether in writing or otherwise) which may be made available is:1. Supplied solely for the intended recipient and may not be copied, reproduced, further distributed to any other person or published, in whole or in part, for any purpose.2. Provided confidentially and only to assist the recipient to make independent enquiries.

The distribution or transmission of this document in certain jurisdictions may be restricted by law and therefore persons into whose possession this document comes should inform themselves about and observe any such restrictions. Any such distribution or transmission could result in a violation of the law of such jurisdictions. Neither this document nor any copy of it may be taken to be distributed or transmitted into a jurisdiction which by law restricts or prohibits the same or to any national, citizen or resident thereof or any corporation, partnership or other entity created or organised under the laws thereof. The Company has not taken any action to permit the distribution or transmission of this document in any jurisdiction.

This document and all other information (whether in writing or otherwise) which may be made available or part thereof does not:1. Contain all information that investors and their professional advisers would require to make an informed assessment of the following:

a) assets and liabilities, financial position and performance, profits and losses and prospects of the Company; andb) rights and liabilities attaching to the Company's securities.

2. Constitute, or form part of, any offer to sell or issue, or any solicitation of an offer to purchase or subscribe for any securities nor shall this document, or any part of it, or the fact of its distribution or transmission, form the basis of, or be relied on, in connection with any contract.3. Constitute a promise or representation as to the future. Recipients must make their own investigations and inquiries regarding all assumptions, risks, uncertainties and contingencies which may affect the future operations of the Company or the Company's securities.

No representation or warranty, express or implied, is made or given by or on behalf of the Company, its directors and officers or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this document and all other information (whether in writing or otherwise) which may be made available or part thereof or any further information supplied by or on behalf of the Company or in connection with the Company and no responsibility or liability is accepted for any such information or opinions.

All statements in this document (other than statements of historical fact) are forward looking statements that involve risks and uncertainties. The Company can give no assurance that statements will prove accurate and results and future events could differ materially.

The Company, its directors and officers or any other person:1. Do not accept liability for any loss or damage suffered or incurred by any investor or any other person however caused (including negligence) relating in any way to this document, including (without limitation) the information contained in it, any errors or omissions however caused, or the investor or any other person placing any reliance on this document, its accuracy, completeness, currency or reliability.2. Do not accept any responsible to inform the recipient or any other person of any matter arising or coming to its notice which may affect any matter referred to in this document.3. To the maximum extent permitted by law, expressly disclaimed and excluded any liability of the Company, its directors and officers or any other person to the recipient or to any other person arising out of this document.

• The information in this report that relates to exploration results 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 2004 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 information in this report that relates to the Molyhil Mineral Resource is based on information compiled by Mr Craig Allison, who is a Member of The Australasian Institute of Mining and Metallurgy and Mr Trevor Stevenson who is a Fellow and Chartered Professional of the Australasian Institute of Mining and Metallurgy, a member of the Mineral Industries Consultants Association and is a full-time employee of Runge Limited. Mr Stevenson 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 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Stevenson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

• The information in this report that relates to the Molyhil Ore Reserve is based on information compiled and reviewed jointly by Mr Alan Dickson and Dr Andrew Newell. Alan Dickson is a Fellow and Chartered Professional of the Australasian Institute of Mining and Metallurgy, a member of the Mineral Industries Consultants Association and is an associate of Runge. Alan Dickson, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify him as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Andrew Newell is a Chartered Professional Member of the Australasian Institute of Mining and Metallurgy, a member of the Mineral Industries Consultants Association and is an employee of Runge. Andrew Newell, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify him as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.

• The information in this report that relates to the Spring Hill Mineral Resource is based on information compiled by Diederik Speijers who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Speijers is the principal of consulting firm McDonald Speijers. 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 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Diederik Speijers consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Page 3: Thor Update

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CORPORATE

BOARD & MANAGEMENT

Directors• Mick Billing - Chairman & CEO• Trevor Ireland - Director• Greg Durack - Director• Mick Ashton - Director• Dave Thomas - Director

ManagementRichard Bradey - Expl MgrAllan Burchard - CFO & Co Sec

EXCHANGE LISTINGSASX “THR”AIM “THR”

Page 4: Thor Update

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TUNGSTEN + MOLYBDENUM

MOLYHIL PROJECTPOSITIVE DFS COMPLETED JUNE 2012

Page 5: Thor Update

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MINE DEVELOPMENT - MOLYHIL

THE TUNGSTEN MARKET

Projected to grow at 6%pa through to 2016

• Tungsten is extremely hard & very wear resistant

• Principal use * 55% Hard metals (cemented carbides)

* High tech tools, wear parts, drilling & mining tools

* 23% Steels & alloys

* 14% Lighting, electrical & electronics

* Few substitutes

Page 6: Thor Update

MINE DEVELOPMENT - MOLYHIL

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MOLYHIL DFS KEY POINTS• Capex A$70m

• Opex / tonne ore A$89/t

• Opex / mtu WO₃ A$125

• Revenue (per mtu WO₃) US$354

• Mine life 4 years

• Scope for extension

• Payback period 21 months

• EBIT Cash flow A$61 million

(net of funding)

• NPV A$28 million

• IRR 24%

Page 7: Thor Update

REVENUE ASSUMPTIONS - MOLYHIL

• Price WO₃ 354/mtu USD• Price Mo 13.50 USD• AUD : USD 0.90

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WO₃ (tungsten) pricing forecast 2010 2011 2012 2013 2014 2015 2016

WO₃ APT Price US$/mtu 245 430 475 425 360 395 415

Discount for WO₃ treatment US$/mtu 50 50 50 50 50 50 50

Discount for WO3 treatment % 20 11 10 11 14 13 12

Realised Price per mtu WO₃ in concentrate US$/mtu 195 380 425 375 310 345 365

Source: Tungsten: Market Outlook to 2016, Tenth Edition, 2011 Roskill Information Services Ltd

Molybdenum pricing forecast 2012 2013 2014 2015 2016 2016+

Mo Roasted Concentrates Price US$/lb 14.89 16.10 16.18 14.92 15.52 16.47

Discount for Mo treatment % 12% 12% 12% 12% 12% 12%

Realised Price per pound in concentrate US$/lb 13.10 14.17 14.24 13.13 13.66 14.49

Source: Energy and Metals Consensus Forecasts June 2012

Page 8: Thor Update

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MINE DEVELOPMENT - MOLYHIL

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MOLYHIL RESOURCE ESTIMATECategory Tonnes (M) WO3 (%) MoS2(%) Fe(%)

Indicated 3.8 0.29 0.22 18.8

Inferred 0.9 0.25 0.25 15.2

TOTAL 4.7 0.28 0.22 18.1

Bench Top mRL Tonnes WO3 % WO3 Tonnes MoS2% Mo tonnes

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

Very high grade tungsten near surface to deliver early payback of capital

MOLYHIL OPEN CUT ORE RESERVE STATEMENT

Category Tonnes (M) WO3 (%) WO3

TonnesMo(%) Mo

Tonnes

Probable 1.64 0.42 6,900 0.13 2,200

TOTAL 1.64 0.42 6,900 0.13 2,200

Page 9: Thor Update

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MINE DEVELOPMENT - MOLYHIL

Operating Parameters

Annual Product Output

9

Annual throughput of Ore 400,000 tonnes

Tungsten recovery 85%

Molybdenum recovery 77.8%

Product Grade Annual Production

Scheelite Concentrate 72.9% WO₃ 2,000 tpa

Molybdenum Concentrate 51% Mo 1,000 tpa

Page 10: Thor Update

PROJECT TIMETABLE - MOLYHIL

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Q32012

Q42012

Q12013

Q2 2013

Q3 2013

Q42013

Q12014

Public Environment Report **Complete

Agreements with T/Os **Complete

Definitive Feasibility Study **Complete

MMP Approval

Off-take Agreements

Finance Agreements

Detailed Design

Site Civil Works

Construction/Fabrication Works

Mining Commencement

First Concentrate Production

Page 11: Thor Update

EXPLORATION UPSIDE - MOLYHIL

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• Significant potential to increase throughput @ Molyhil & extend life

• More prospects for exploration & evaluation close to Molyhil

• 15 Untested Tungsten prospects nearby

Page 12: Thor Update

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GOLD

SPRING HILL PROJECT

Page 13: Thor Update

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DEPOSIT EVALUATION – SPRING HILL

SPRING HILL – KEY POINTS

• Indicated Resource at shallow depth3.6 Mt @ 2.3g/t = 274,000 ounces gold

• Proximity to most infrastructure

• Brownfields discovery potential of company-making magnitude

• +30% of gold recoverable in gravity circuit. Balance via standard CIL

THOR HOLD RIGHTS TO 80% EQUITY

Page 14: Thor Update

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DEPOSIT EVALUATION - SPRING HILL

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Cut-off grade: 1.0 g/t; Estimate: McDonald Speijers , June 2003 (2011 & 2012drilling results after 2003 not taken into account)

TOTAL RESOURCES: 3.6 million tonnes @ 2.3 g/t goldContaining 274,000 ounces gold

Comprising:

Measured Indicated Inferred TOTAL

Million tonnes

Gradeg/t Au

Million tonnes

Gradeg/t Au

Million tonnes

Gradeg/t Au

Million tonnes

Grade g/t Au

Contained ounces gold

(k oz)

Zone of Oxidation - - 1.32 2.16 - - 1.32 2.16 92

Transition Zone - - 0.50 2.37 - - 0.50 2.37 38

Unweathered Zone - - 1.82 2.47 - - 1.82 2.47 144

TOTAL * - - 3.64 2.34 - - 3.64 2.34 274

* Thor Mining PLC holds equity rights to up to 80% of this resource

Page 15: Thor Update

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DEPOSIT EVALUATION – SPRING HILL

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Spring Hill: Simplified geological plan & gold deposit outline

• Spring Hill gold resource currently contained within four zones of mineralisation.• Known mineralisation to the north, south, and west of existing resource to be drill

tested during the 2012 dry season.• Awaiting regulatory approvals for drilling

Historical Intersections approx 1km north of resource boundary

Page 16: Thor Update

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DEPOSIT EVALUATION – SPRING HILL

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SIGNIFICANT POTENTIAL TO INCREASE THE OPEN PIT RESOURCE BY DRILLING BEYOND 150 METRES DEPTH

SPRING HILL – 2012 ACTIVITY

• Metallurgical testwork

• Exploration drilling

• Near surface

• Deep targets

• Resource Upgrade

• Scoping Studies

Page 17: Thor Update

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DEPOSIT EVALUATION – SPRING HILL

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Spring Hill - Hong Kong Zone• Largest component of Spring Hill resource of 274,000 ozs• Current drill program targeting resource extensions

Page 18: Thor Update

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GOLD EXPLORATION - SPRING HILL

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Gold in the Pine Creek Area

• There are abundant gold deposits throughout the Pine Creek Inlier

• The geology & geological history is identical to the Tanami Inlier (a few hundred km to the SW) which hosts the Callie deposit (production + resources >5 M oz. @ 5-6 g/t Au).

• A Callie style deposit would occur at the Cosmo Howley position (Koolpin Formation) on the figure opposite

• Objective: discover a “Callie” style deposit at depth below the known Spring Hill resource.

• This model drill tested at Spring Hill in 2012

Stratigraphic & structural settings of gold deposits in the Pine Creek (& Tanami) Proterozoic Basins (After: N.T. Geological Survey)

Callie - hypothetically - Callie is located in a setting similar to gold deposits in the Pine Creek Inlier, in the Tanami Complex to the south-west. Callie placed in its stratigraphic and structural setting in the context of Pine Creek gold deposits would be situated in the axial zone within the Koolpin Formation - Thor Mining interpretation.

A COMPANY-MAKING TARGET BENEATH SPRING HILL

Page 19: Thor Update

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GOLD EXPLORATION – SPRING HILL

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PROGRAM 2012

• Review data

• Geophysical survey

• Initial deep drill test

KOOLPIN FORMATION *

* Koolpin Formation – potential host to Callie style mineralisation appears at surface in the north west of the tenement dipping under Spring Hill.

Page 20: Thor Update

2020

THOR MAKING SIGNIFICANT STRIDES TOWARDS PRODUCER STATUS:

• Moving to development at Molyhil Tungsten/Molybdenum Project

• Completing confirmatory drilling & pre-feasibility investigations at Spring Hill Gold Project

POTENTIAL FOR SIGNIFICANT ADDITIONAL GOLD DISCOVERY:

• “Callie” style target at Spring Hill

THOR HOLDS

• 100% of Molyhil

• Rights to 80% interest in the Spring Hill gold deposit

SUMMARY

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