27/10/2016 Quarterly Activities Report Jul - Sep 2016

QUARTERLY REPORT JULY TO SEPTEMBER 2016

Highlights Outlook for December Quarter 2016

TUNGSTEN & MOLYBDENUM

Molyhil NT

• Shallow drilling adjacent to Molyhil points to potential additional tungsten deposits.

• Follow up drilling in 2017

• Continuing discussions to secure project finance

• Ongoing discussions for balance of concentrate production off-take.

Pilot Mountain, Nevada USA

• Permitting approval for drill program at Garnet prospect and the eastern extension of Desert Scheelite.

• Drilling scheduled for early 2017

New Projects

The Company has during much of 2016 conducted assessments of new project opportunities. The review process has identified several which have potential for near term development with attractive capital and operating cost structures, and these are being investigated and evaluated further.

Figure 1: Thor Mining PLC Project Location Map

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

"The identification of potential new sources of tungsten mineralisation close to Molyhil is an important step forward for this project. While there is much to do before any economic deposits can be confirmed, we are very pleased with this first step.

"The next phase of field activities for Thor is a drilling campaign at the Pilot Mountain tungsten project in Nevada USA, where we have received regulatory approval to drill test for an extension to previous high grade intercepts at the Desert Scheelite deposit, and also at the Garnet prospect which, if historical drilling results can be confirmed, should allow preparation of a resource estimate in due course.

"The company continues to evaluate a number of new project opportunities and we hope to provide a further update to market in this regard at the earliest opportunity."

Page 1 of 5

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 current exchange rates. Of this, approximately US$10 million is for equipment, for which equipment or leasing finance could be secured, thus reducing the project finance requirement to below US$40 million.

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

A full background on the project is available on the Thor Mining website.

Figure 3: Molyhil Project Location map

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 are in close proximity (~three kilometres) of 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 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.

Figure 5: Pilot Mountain Project Location map

During the September quarter the Company secured the necessary permits to drill test both the Garnet prospect and the potential eastern extension of the Desert Scheelite deposit.

Other prospects, Gunmetal and Good Hope and some regional opportunities will be drill tested in subsequent programs.

The drill program is scheduled for January and February 2017.

Historical drilling on the Garnet prospect (75 holes during the 1970's) confirmed extensive mineralisation. However, while detailed records of the drill hole data have been assessed, the raw data are no longer available. It is expected that a limited number of drill holes will validate the historical information to allow a resource estimate to be produced, substantially enhancing the Pilot Mountain resource inventory.

The Thor Mining exploration target¹ (reported 1 December 2014) for the Garnet prospect is based upon historical drilling and described below.

Figure 6: Pilot Mountain project deposits

Widely spaced drilling outlines several areas of apparently coherent, sub horizontal tungsten mineralisation skarn hosted at shallow depth within a sequence of marble and hornfels. The mineralisation is dissected by a rectilinear series of intersecting major subvertical faults with minor vertical displacements. The mineralised horizons total 12 metres in width and occur over a thickness of

30 to 40 metres which is near surface towards the east with the cover increasing up to 40 metres towards the west.

Definition of ore blocks requires significant infill drilling with short vertical holes. Once the historic indications are confirmed, estimation of resources, plus economic modelling can be undertaken.

Across the 700,000 square metre Garnet target area, seven of the historic holes penetrate what is thought to be the full mineralised sequence comprising three mineralised horizons (the middle horizon is sometimes split to provide a fourth). Using these seven holes an average total mineralised thickness of 12 metres at 0.3%WO3was derived.

The Garnet Exploration Target value was derived from the mineralised thickness, the target area, an estimated bulk density of 2.8 and a conservative factor of 0.1 to allow for the improbability of the whole of a target area being mineralised.

The exploration target¹ for Garnet is therefore 2 -3 Million tonnes @ 0.3 - 0.4% WO3.

At the Desert Scheelite deposit, the most easterly hole into mineralisation (DSDD 15) (reported 10 June 2014) intersected exceptionally strong mineralisation with 13.9m averaging 0.89% WO3, and 1.75% Cu at depth ~250m below plains level, indicating potential extension of the deposit beyond previously known limits and possibly a trend of increasing copper content.

¹ Quoted Exploration Targets are conceptual in nature and there has been insufficient exploration to define a Mineral Resource under the JORC Code and it is uncertain if further exploration will result in the determination of a Mineral Resource.