30 September 2021

Thor Mining plc

("Thor" or the "Company")

Results for the year ended 30 June 2021

The Directors of Thor Mining PLC (AIM, ASX: THR) are pleased to provide the Company's audited annual financial report for the year ended 30 June 2021.

The Company's annual financial report was will also be released pre-market opening tomorrow on the Australian Stock Exchange ("ASX") as required under the listing rules of the ASX.

The annual report will be published and notified in due course.

For further information on the Company, please visit  www.thormining.com  or contact the following: 

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.

About Thor Mining PLC

Thor Mining PLC (AIM, ASX: THR; OTCQB: THORF) is a diversified resource company quoted on the AIM Market of the London Stock Exchange, ASX in Australia and OTCQB Market in the United States.

The Company is advancing its diversified portfolio of precious, base, energy and strategic metal projects across USA and Australia. Its focus is on progressing its copper, gold, uranium and vanadium projects, while seeking investment/JV opportunities to develop its tungsten assets.

Thor owns 100% of the Ragged Range Project, comprising 92 km² of exploration licences with highly encouraging early stage gold and nickel results in the Pilbara region of Western Australia, for which drilling is planned in the second half of 2021.

At Alford East in South Australia, Thor is earning an 80% interest in copper deposits considered amenable to extraction via In Situ Recovery techniques (ISR). In January 2021, Thor announced an Inferred Mineral Resource Estimate of 177,000 tonnes contained copper & 71,000 oz gold¹.

Thor also holds a 30% interest in Australian copper development company EnviroCopper Limited, which in turn holds rights to earn up to a 75% interest in the mineral rights and claims over the resource on the portion of the historic Kapunda copper mine and the Alford West copper project, both situated in South Australia, and both considered amenable to recovery by way of ISR.²

Thor holds 100% interest in two private companies with mineral claims in the US states of Colorado and Utah with historical high-grade uranium and vanadium, drilling and production results.

Thor holds 100% of the advanced Molyhil tungsten project, including indicated and inferred resources⁴, in the Northern Territory of Australia, which was awarded Major Project Status by the Northern Territory government in July 2020.

Adjacent to Molyhil, at Bonya, Thor holds a 40% interest in deposits of tungsten, copper, and vanadium, including Inferred resource estimates for the Bonya copper deposit, and the White Violet and Samarkand tungsten deposits.⁵

Thor holds 100% of the Pilot Mountain tungsten project in Nevada, USA which is subject to a sale option agreement.⁶

Notes

¹   www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210127-maiden-copper.gold-estimate-alford-east-sa.pdf  

² www.thormining.com/sites/thormining/media/pdf/asx-announcements/20172018/20180222-clarification-kapunda-copper-resource-estimate.pdf  

3  www.thormining.com/sites/thormining/media/aim-report/20190815-initial-copper-resource-estimate---moonta-project---rns---london-stock-exchange.pdf

4  www.thormining.com/sites/thormining/media/pdf/asx-announcements/20191011-molyhil-mineral-resource-estimate-enhanced.pdf  

⁵ www.thormining.com/sites/thormining/media/pdf/asx-announcements/20200129-mineral-resource-estimates---bonya-tungsten--copper.pdf  

⁶   http://www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210901-pilot-mountain-project-us1.8m-sale-option.pdf 

2021 ANNUAL REPORT

REVIEW OF OPERATIONS AND STRATEGIC REPORT

COPPER PROJECTS - SOUTH AUSTRALIA

Thor holds direct and indirect interests in over 400,000 tonnes of Inferred copper resources (Tables A, B, & C) in South Australia, via its 80% farm-in interest in the Alford East copper project and its 30% interest in EnviroCopper Ltd (Alford West and Kapunda Projects).  Each of these projects are considered by Thor directors to have significant growth potential, and each are being advanced towards development via low-cost, environmentally friendly In Situ Recovery (ISR) techniques.

ALFORD EAST COPPER-GOLD PROJECT - SOUTH AUSTRALIA

The Alford East Copper-Gold Project is located on EL6529, where Thor is earning up to an 80% interest from unlisted Australian explorer Spencer Metals Pty Ltd, covering portions of EL6255 and EL6529 (THR:ASX 23 November 2020).

The Project covers the northern extension of the Alford Copper Belt, located on the Yorke Peninsula, SA.  The Alford Copper Belt is a semi coherent zone of copper-gold oxide mineralisation, within a structurally controlled, north-south corridor consisting of deeply kaolinised and oxidised troughs within metamorphic units on the edge of the Tickera Granite, Gawler Craton, SA.

Utilising historic drill hole information, Thor completed an inferred Mineral Resource Estimate (MRE), with summaries in Table A (THR:ASX 27 January 2021), consisting of:

§ 125.6Mt @ 0.14% Cu containing 177,000t of contained copper

§ 71,500oz of contained gold

www.thormining.com/sites/thormining/media/pdf/asx-announcements/20210127-maiden-copper.gold-estimate-alford-east-sa.pdf

Diamond Drilling Program

An initial 1000m diamond drilling program, focusing on the northern portion of the Alford East copper gold deposit around the AE-5 and AE-8 mineralised domains commenced in June 2021, with two drillholes AED001 and AED002 completed during FY20/21 (ASX: THR Announcement 11 June 2021 and 30 June 2021).

Historic aircore drilling often stopped on blade refusal (silcrete horizon), with only a number of deeper diamond holes extending to fresh rock, hence this initial drilling program is designed to test the depth extent of the oxide mineralisation, adjacent to and along strike of these mineralised diamond holes.

A new 3D geological model, comprising trough and ridge style of faulting has developed from 3D modelling of geology. This modelling has identified new weathering boundaries and highlighted key structures controlling and offsetting mineralisation. Planned holes were therefore designed to expand potential weathered zones where the top of fresh rock has yet to be intersected in drilling and validate the controlling mineralised structures. In the future, drilling will also target potential high-grade Cu-Au zones adjacent to these controlling structures.

The two initial drill holes (completed prior to 30 June 2021) validated the new geological model, with copper and gold intercepts including:

§ 21AED001:

108.2m @ 0.17% Cu and 0.1g/t Au from 6.2m, including

25.3m @ 0.11% Cu from 6.2m

32.9m @ 0.4% Cu and 0.31g/t Au from 81.5 m, and

5m @ 0.5% Cu and 1.02g/t Au from 102m

§ 21AED002:

59.9m @ 0.31% Cu from 21.9m

The validation of the geological model is vitally important for future drill targeting and geological resource modelling. The geological model predicts that the control on copper-gold mineralisation is a NE-SW fault that may join AE-5 to AE-8 mineralisation.

Core samples [are currently] at the laboratory with assays pending.

During the drilling program, groundwater analysis and core samples will be collected for hydrometallurgical and groundwater studies.  The hydrometallurgical work will be undertaken by Mining and Process Solutions (MPS) Pty Ltd with water analysis by Groundwater Science Pty Ltd. The key objective of the initial metallurgical work is to develop the best lixiviant formulation for the oxide copper-gold mineralisation of Alford East deposit in the context of an ISR based approach. Understanding the ground water characteristics, especially pH and chemical composition is essential for the lixiviant trials and any potential ISR development.

In conjunction with the technical assessment, Thor will continue ongoing stakeholder and community engagement, and regulatory activities.

Based on the nature of the oxide mineralisation, the deposit is considered amenable to ISR techniques.  For further information on ISR please refer to Thor's website via this link for an informative video: www.youtube.com/watch?v=eG_1ZGD0WIw

ENVIROCOPPER COPPER PROJECTS - SOUTH AUSTRALIA

Thor holds a 30% equity interest in private Australian company, EnviroCopper Limited ("ECL").  In turn, ECL has entered into an agreement to earn, in two stages, up to 75% of the rights over metals which may be recovered via ISR contained in the Kapunda deposit from Australian listed company, Terramin Australia Limited ("Terramin" ASX: "TZN"), and rights to 75% of the Alford West copper project comprising the northern portion of exploration licence EL5984, held by Andromeda Metals Limited (ASX:ADN).

Information about EnviroCopper Limited and its projects can be found on the EnviroCopper website:

www.envirocopper.com.au 

ALFORD WEST

Based on substantial historic drilling, a Mineral Resource Estimate (MRE) was completed in 2019 (ASX: THR 15 August 2019) on several of the deposits at Alford West, totalling 66.1 million tonnes (MT) grading 0.17% copper (Cu), containing 114,000 tonnes of contained copper, using a cut-off grade of 0.05% Cu (Table B).

KAPUNDA

During 2018, the Australian Government Ministry for Science, Jobs and Innovation announced an offer to ECR for research funding of A$2,851,303, over a 30-month period (since extended to 30 June 2021), for the Kapunda In-Situ Copper and Gold Recovery Trial.  Funds from this grant are expected to cover the major portion of costs of the program scheduled for the balance of work in 2021.

The MRE for Kapunda, excluding any potential gold credits, is summarised in Table C.

Testwork to date has demonstrated that both copper and gold are recoverable, using a range of lixiviants, from historical drill samples, and that the ground conditions will allow the flow of fluids necessary for ISR production.

The 2021 field program is dual purpose:

·      Additional drill testing, along with assay of historical samples, aimed at the confirmation and extension of the known gold mineralisation to allow inclusion of gold in the mineral resource estimate.

·      Site Environment Lixiviant Recovery (SELT) trials.  This work (funded by the Australian Government grant) is aimed to be the final technical feasibility demonstration of ISR technology at Kapunda for copper and gold recovery, prior to commencement of commercial feasibility study processes.

MOLYHIL TUNGSTEN PROJECT - NORTHERN TERRITORY 

The 100% owned Molyhil tungsten-molybdenum project is located 220 km north-east of Alice Springs (320km by road) within the prospective polymetallic province of the Proterozoic Eastern Arunta Block in the Northern Territory.

Thor Mining PLC acquired this project in 2004 as an advanced exploration opportunity.  Since then, the project has been taken to the level where it is substantially permitted for development and, by global standards, is recognised as one of the higher grade open-pittable tungsten projects, with low capital and operating costs per unit of tungsten production. The construction period for the Molyhil development is estimated at 12 months from the time finance is secured, and discussions with various parties in order to secure finance for this purpose are proceeding. We have demonstrated the production of tungsten concentrates to a quality acceptable to the market and hold a Memorandum of Understanding in respect of concentrate sales with a major international downstream processor.

The deposit consists of two adjacent outcropping iron-rich skarn bodies, the northern 'Yacht Club' lode and the 'Southern' lode. Both lodes are marginal to a granite intrusion; both lodes contain scheelite (CaWO₄) and molybdenite (MoS₂) mineralisation. Both the outlines of the lodes and the banding within the lodes strike approximately north and dip steeply to the east.

In April 2021, (THOR:ASX 8 April 2021) a revised Mineral Resource Estimate (MRE) was completed comprising Measured, Indicated, and Inferred Mineral Resources, totalling 4.4 million tonnes at 0.27% WO₃ (Tungsten trioxide), 0.10% Mo (Molybdenum), and 0.05% Cu (Copper) using a 0.07% WO₃ cut-off (Table D).  The estimation of WO₃ and Mo using Mixed Support Kriging was undertaken by Golder Associates ("Golder"), with the estimation of Fe and Cu by Ordinary Kriging was undertaken by Resource Evaluation Services ("RES")

In conjunction with the Mineral Resource Estimate, 3D geological modelling identified two prominent structures - Yacht Club fault and South Offset fault.  Based on the geological timing of these faults they may have a significant impact on mineralisation, hence creating targets for potential extensions.  

Modelling of the 3D magnetics and the position of the modelled South Offset Fault strongly implies an offset of the magnetic material (magnetite skarn) host to the tungsten-molybdenum mineralisation, identifying a strong magnetic anomaly, south of the fault.  Although there are a few drillholes to the south of the South Offset Fault, these have not intersected the magnetic body.  Thor Mining was awarded A$110,000 from the Northern Territory Government as part of the Resourcing the Territory, Geophysics and Drilling Collaborations (GDC) program.  These funds will go towards drill testing these recently identified magnetic targets adjacent to the mineralisation at the Molyhil tungsten-molybdenum deposit.

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

BONYA (TUNGSTEN, COPPER, VANADIUM) - NORTHERN TERRITORY

Adjacent to Molyhil, the Bonya tenements, in which Thor holds a 40% interest, host outcropping tungsten/copper resources, a copper resource and a vanadium deposit.

In March 2020 quarter, the Joint Venture reported a maiden resource estimate for the White Violet and Samarkand deposits (Table E and F).

RAGGED RANGE (GOLD & NICKEL) - WESTERN AUSTRALIA

The 100% owned Ragged Range Project, located in the highly prospective Eastern Pilbara Craton, Western Australia was acquired in 2019 (E46/1190, E46/1262, E46/1355, E46/1340), with the recent additional tenure surrounding the gold anomalous and copper-gold zones, E46/1393 (application).

Since acquisition, Thor has conducted several programs of stream and soil geochemical sampling and flown an airborne magnetics survey over the eastern tenement area. Results including over 2.2g/t Au (ASX: THR 1 December 2020) defined a 13km gold corridor.

Further reconnaissance and infill soil sampling will continue along the Sterling Prospect structural corridor, to define drill targets for maiden RC program scheduled for Q1 FY21. Thor Mining was awarded A$160,000 from the Western Australia Government under the EIS Co-funded grants program to drill test gold anomalies at the Sterling Prospect.

Concurrent with the drilling program, regional gold targets including to the northwest and southeast of Sterling prospect, the granitoid contact in the north, plus the copper-gold area in the northeast (Kelly/Ryan Prospects) will be followed up with reconnaissance stream and soil geochemistry programs.  Government and company geophysics are being used in conjunction with the geochemical data, to assist with structural and lithological targeting.

Details of the projects may be found on the Thor website via this link:

www.thormining.com/projects/ragged-range-pilbara-project 

Nickel Gossan

Geological mapping of the nickel gossan which was previously sampled in mid-2020 (THR: ASX 31 July 2020) confirmed that the gossan extends over 1km and sits at the base of the Dalton Suite (ultramafic units), adjacent to the older Felsic Volcanics of the Wyman Formation. This position of the gossan at the base of the ultramafic contact is significant from a geological nickel-sulphide model perspective.

Prior to drill testing beneath the gossan, a ground electromagnetic (EM) survey will be undertaken. Thor is currently finalising this program.

E46/1393- Kelly/Ryan Copper- Gold Prospects

A new tenement application E46/1393 in the northeast covers a recently surrendered mining lease M46/171.  This area covers several historic copper-gold and copper-base metals mines and prospects. The copper mineralisation is associated with the dacite Boolina porphyry, close to the margin of the Corunna batholith, and intrudes the Kelly greenstone belt.

At Kelly's Mine, historic production between 1955-1970, although small, was of very high-grade - 610t of ore averaging 19.47% Cu.¹

Exploration to date has been sporadic, with no systematic approach over the area.  Thor will be targeting areas of mineralisation, zones of alteration, shears/faults and zones of brecciation.

¹https://www.mindat.org/loc-122951.html

URANIUM AND VANADIUM PROJECT - COLORADO AND UTAH, USA

Thor holds a 100% interest in two US companies with mineral claims in Colorado and Utah, USA.  The claims host uranium and vanadium mineralisation in an area known as the Uravan Mineral Belt, which has a history of high-grade uranium and vanadium production. A processing plant which has historically taken third party ore for toll treatment is located near Blanding within economic transport distance (Energy Fuels White Mesa Mill).

The uranium-vanadium deposits within the Uravan Mineral Belt, hosted mainly in the Salt Wash member of the Morrison Formation on the Colorado Plateau are classified by the International Atomic Energy Agency (IAEA) as "Saltwash type" sandstone hosted uranium deposits. They are considered unique amongst the sandstone-hosted type of deposits in that they are predominantly vanadium (V₂O₅) with accessory uranium (U₃O₈). They occur as tabular bodies in reduced sequences of highly oxidised, feldspar-rich sandstones that have substantial fossilised plant material. High-grade uranium and vanadium occur together although vanadium has a much larger halo. Based on production figures the vanadium exceeds uranium in ratios ranging from 3:1 to 10:1 with the ratio increasing southward; averaging 5:1 in the Wedding Bell/Groundhog Project area.

Larger deposits are found in paleochannels (braided streams in the Jurassic period) where accumulations of plant material led to more reduced conditions being retained over time. The Salt Wash member consists of interbedded fluvial sandstone and floodplain-type mudstone.  The Salt Wash member is gently folded into a shallow dome meaning it is often close to surface or exposed. The sandstone beds form cliffs or rims with the mudstone units forming slopes. The upper most sandstone contains the majority of the ore deposits.

High grade assay results from due diligence work completed by Thor (ASX: THR 10 September 2020), returning up to 1.25% U₃O₈ and 3.47% V₂O₅, confirm uranium and vanadium mineralisation within the Salt Wash member of the Morrison Formation, which is consistent and typical of the historical production in the Wedding Bell, Radium Mountain area of the Uravan mineral belt. 

A drilling program, testing the Colorado claims, including Groundhog, Rim Rock and Area 23 prospects, is currently going through the Colorado state permitting process, with environmental surveys, including Raptor surveys completed. In conjunction, a geological evaluation of the Utah claims is underway.

Details of the projects may be found on the Thor website via this link: www.thormining.com/projects/us-uranium-and-vanadium

PILOT MOUNTAIN TUNGSTEN PROJECT - NEVADA, USA

The 100% owned Pilot Mountain Project, acquired late in 2014, is located approximately 200km south of the city of Reno and 20km east of the town of Mina located on US Highway 95.

The Pilot Mountain Project comprises four tungsten deposits: Desert Scheelite, Gunmetal, Garnet and Good Hope.  All are in close proximity (~3km) of each other and have been subjected to small-scale mining activities at various times during the 20th century.

Thor Mining PLC acquired this project as an advanced exploration opportunity.  It has resource estimates for both Desert Scheelite and Garnet and significant mineralisation has been intersected, in 2017, at the Good Hope deposit.  Sufficient metallurgical test work, to Pre-Feasibility Study standard has been conducted to demonstrate that a saleable concentrate can be produced.

After the end of F20/21, in September 2021, Thor entered into an Option Agreement with Power Metal Resources Plc to divest the Pilot Mountain Project for an agreed value of US1.8 million.

A full background on the project and recent sale agreement is available on the Thor Mining website: www.thormining.com/projects

SPRING HILL GOLD PROJECT - NORTHERN TERRITORY

In September 2020, the Company announced the A$1.0million sale of its royalty entitlement from the Spring Hill gold project in the Northern Territory.  The sale agreement provides for receipt of A$400,000 on completion (received), followed by two production milestone payments of A$300,000 each.

Competent Person's Report

The information in this report that relates to Exploration Results and the Estimation and Reporting of Mineral Resource Estimation is based on information compiled by Nicole Galloway Warland, who holds a BSc Applied geology (HONS) and who is a Member of The Australian Institute of Geoscientists. Ms Galloway Warland is an employee of Thor Mining PLC. She has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she 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'. Nicole Galloway Warland consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

JORC (2012) Compliant Mineral Resources and Reserves

Table A: Alford East Mineral Resource Estimate (Reported 22 January 2021)

Notes:

·       Thor is earning up to 80% interest in oxide material from Spencer Metals

·       MRE reported on oxide material only, at a cut-off grade of 0.05% copper which is consistent with the assumed In Situ Recovery technique.

·       Minor rounding errors may occur in compiled totals.

·       The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.

Table B: Alford West Copper Mineral Resource Estimate (Reported 15 August 2019)

Notes:

·       EnviroCopper are earning a 75% interest in this resource, and Thor hold 30% equity in EnviroCopper.

·       Figures are rounded to reflect appropriate levels of confidence.  Apparent differences may occur due to rounding.

·       Cut-off grade used of 0.05% Cu.

·       The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.

Table C: Kapunda Resource Summary 2018 (Reported 12 February 2018)

Notes:

·       EnviroCopper are earning a 75% interest in this resource, and Thor hold 30% equity in EnviroCopper.

·       All figures are rounded to reflect appropriate levels of confidence.  Apparent differences may occur due to rounding.

·       Cut-off of 0.05% Cu.

·       The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.

Table D: Molyhil Mineral Resource Estimate (Reported March 31, 2021)

Notes:

·       Figures are rounded to reflect appropriate level of confidence.  Apparent differences may occur due to rounding.

·       Cut-off of 0.07% WO₃.

·       100% owned by Thor Mining Plc.

·       To satisfy the criteria of reasonable prospects for eventual economic extraction, the Mineral Resources have been reported down to 200 m RL which defines material that could be potentially extracted using open pit mining methods.

Table E: Bonya Tungsten Mineral Resources (announced 29 January 2020)

Notes:

·       0.05% WO3 cut-off grade.

·       Totals may differ from the addition of columns due to rounding.

·       Thor Mining PLC holds 40% equity interest in this project.

·       The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.

Table F: Bonya Copper Mineral Resources (announced 26 November 2018)

Notes:

·       0.2% Cu cut-off grade.

·       Totals may differ from the addition of columns due to rounding.

·       Thor Mining PLC holds 40% equity interest in this project

·       The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.

Table G: Pilot Mountain Resource Summary 2018 (Reported 13 December 2018)

Notes:

·       Thor Mining PLC holds 100% equity interest in this resource.

·       All figures are rounded to reflect appropriate levels of confidence.  Apparent differences may occur due to rounding.

·       Cut-off grade 1,500ppm WO₃.

·       Garnet deposit resource reported 22 May 2017.  The Company is not aware of any information or data which would materially affect this previously announced resource estimate, and all assumptions and technical parameters relevant to the estimate remain unchanged.

Principal risks and uncertainties

The management of the business and the execution of the Group's strategy are subject to a number of risks. The key business risks affecting the Group are set out below.

Risks are formally reviewed by the Board, and appropriate processes are put in place to monitor and mitigate them. If more than one event occurs, it is possible that the overall effect of such events would compound the possible adverse effects on the Group.

Exploration risks

The exploration and mining business is controlled by a number of global factors, principally supply and demand which in turn is a key driver of global mineral prices; these factors are beyond the control of the Group. Exploration is a high-risk business and there can be no guarantee that any mineralisation discovered will result in proven and probable reserves or go on to be an operating mine. At every stage of the exploration process the projects are rigorously reviewed to determine if the results justify the next stage of exploration expenditure ensuring that funds are only applied to high priority targets.

The principal assets of the Group comprising the mineral exploration licences are subject to certain financial and legal commitments. If these commitments are not fulfilled the licences could be revoked. They are also subject to legislation defined by the Government; if this legislation is changed it could adversely affect the value of the Group's assets.

Dependence on key personnel

The Group and Company is dependent upon its executive management team and various technical consultants. Whilst it has entered into contractual agreements with the aim of securing the services of these personnel, the retention of their services cannot be guaranteed. The development and success of the Group depends on its ability to recruit and retain high quality and experienced staff. The loss of the service of key personnel or the inability to attract additional qualified personnel as the Group grows could have an adverse effect on future business and financial conditions.

Uninsured risk

The Group, as a participant in exploration and development programmes, may become subject to liability for hazards that cannot be insured against or third party claims that exceed the insurance cover. The Group may also be disrupted by a variety of risks and hazards that are beyond control, including geological, geotechnical and seismic factors, environmental hazards, industrial accidents, occupational and health hazards and weather conditions or other acts of God.

Funding risk

The only sources of funding currently available to the Group are through the issue of additional equity capital in the parent company or through bringing in partners to fund exploration and development costs. The Company's ability to raise further funds will depend on the success of the Group's exploration activities and its investment strategy. The Company may not be successful in procuring funds on terms which are attractive and, if such funding is unavailable, the Group may be required to reduce the scope of its exploration activities or relinquish some of the exploration licences held for which it may incur fines or penalties.

Financial risks

The Group's operations expose it to a variety of financial risks that can include market risk (including foreign currency, price and interest rate risk), credit risk, and liquidity risk. The Group has a risk management programme in place that seeks to limit the adverse effects on the financial performance of the Group by monitoring levels of debt finance and the related finance costs. The Group does not use derivative financial instruments to manage interest rate costs and, as such, no hedge accounting is applied.

COVID-19

The outbreak of the recent global COVID-19 virus has resulted in business disruption and stock market volatility. The extent of the effect of the virus, including its long-term impact, remains uncertain. The Group has implemented extensive business continuity procedures and contingency arrangements to ensure that they are able to continue to operate.

Section 172(1) Statement - Promotion of the Company for the benefit of the members as a whole

The Directors believe they have acted in the way most likely to promote the success of the Company for the benefit of its members as a whole, as required by s172 of the Companies Act 2006.

The requirements of s172 are for the Directors to:

·      Consider the likely consequences of any decision in the long term

·      Act fairly between the members of the Company

·      Maintain a reputation for high standards of business conduct

·      Consider the interests of the Company's employees

·      Foster the Company's relationships with suppliers, customers and others

·      Consider the impact of the Company's operations on the community and the environment

The Company continues to progress with its portfolio of exploration projects and investments, which are inherently speculative in nature and, without regular income, is dependent upon fund-raising for its continued operation. The pre-revenue nature of the business is important to the understanding of the Company by its members, employees and suppliers, and the Directors are as transparent about the cash position and funding requirements as is allowed under AIM Rules for Companies.

An example of how the Company implemented S172 can be demonstrated from the impact of COVID19 on Thor's operations which have continued to cause some disruption mainly in respect of the following:

•          Ensuring the health and safety of our staff and contractors;

•          Logistical issues surrounding supporting field operations; and

•          Volatility of capital markets and Thor's ability to secure equity capital.

These issues have all been directly addressed.  In terms of health of our staff we have standard practices in place to minimise the risk of COVID19 contraction or spread: working from home where appropriate, the use of face masks in public in compliance with local requirements and ensuring the availability of sanitiser and social distance in the office environment.  Travel to major population centres is minimised where possible and the company retains a strict policy of staff staying at home if they feel unwell.

As a mining exploration Company with projects in Australia and United States of America, the Board takes seriously its ethical responsibilities to the communities and environment in which it works.  Wherever possible, local communities are engaged in the geological operations & support functions required for field operations. The regions in which the Company operates have native title laws.  The Company is respectful of native title rights and engages proactively with local communities.  In addition, we are careful to manage the environmental obligations of our work, and in particular undertake site rehabilitation programmes, and prepare mine management plans, in accordance with local laws and regulations. Our goal is to meet or exceed standards, in order to ensure we maintain our social licence to operate from the communities with which we interact.

We abide by the local, including relevant UK and Australian laws on anti-corruption & bribery.

The interests of our employees are a primary consideration for the Board. Personal development opportunities are supported and health and safety are central to planning for field expeditions.

Other information

Other information that is usually found in the Strategic report has been included in the Directors report.

Directors' Report

The Directors are pleased to present this year's annual report together with the consolidated financial statements for the year ended 30 June 2021.

Review of Operations

The net result of operations for the year was a loss of £2,104,000 (2020 loss: £922,000).

A detailed review of the Group's activities is set out in the Review of Operations & Strategic Report.

Directors and Officers

The names and details of the Directors and officers of the company during or since the end of the financial year are:

Mark Potter-  Non-Executive Director and Chairman (appointed Chairman 13 September 2021)

Mr Potter is currently a Director and Chief Investment Officer of Metal Tiger Plc, an AIM and ASX listed investor in natural resources companies.  Mark is also the Non-Executive Chairman of Artemis Resources Limited, an ASX listed gold and copper explorer.

Mark was formerly a Director and Chief Investment Officer of Anglo Pacific Group, a London listed natural resources royalty company. Mark was also formally a Non-Executive Director of Trident Royalties Plc and resigned on 18 June 2021.

Prior to Anglo Pacific, Mark was a founding member and Investment Principal for Audley Capital Advisors LLP, a London based activist hedge fund, where he was responsible for managing all natural resources investments. Prior to Audley Capital, Mark worked in corporate finance for Salomon Smith Barney (Citigroup) and Dawnay Day, a private equity and corporate finance advisory firm. Mark graduated with a MA degree from Trinity College, University of Cambridge.

Nicole Galloway Warland - Managing Director (appointed 21^st April 2021)

Ms Galloway Warland, who graduated from the University of Technology, Sydney with a BSc (Hons) Applied Geology, has had a career spanning more than 25 years in the mining and exploration industry, working across a broad range of jurisdictions and geological provinces in Australia, Eastern Europe and South America.

Nicole's experience spans from grass roots exploration to project evaluation to open cut & underground mining with a commodity focus of gold, copper, nickel, uranium & lithium.

Mark McGeough BSc dual honours Geol/Geog, FAusIMM - Non-Executive Director (appointed 4^th August 2020)

Mr McGeough is an experienced geologist who has spent nearly 40 years in Australia exploring for gold, IOCG copper-gold, silver-lead-zinc and uranium. He was involved in the discovery of the White Dam gold deposit in South Australia and the Theseus uranium deposit in WA.

Mark's career includes a variety of small, mid-size and large mining companies including Chinova Resources, Toro Energy, Xstrata Copper, Mount Isa Mines and AGIP Australia. For Chinova Resources, Mark combined the role of General Manager Exploration with technical director roles for subsidiary companies. From 2005 to 2008 Mark was also the Manager of the SA Geological Survey, promoting the PACE program.

Michael Robert Billing CPA, B Bus MAICD - Former Executive Chairman and CEO (Retired as CEO 21 April 2021 and retired as Chairman 3 September 2021)

Mr Billing has over 40 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. 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 20 years and was a director of ASX listed company Southern Gold Limited (retired 30 November 2018).

Richard Bradey BSc (App Geol), MSc (Nat Res Man), MAusIMM - Former Executive Director (Retired 29^th October 2020)

Mr Bradey a Geologist with over 25 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 based mining companies.

Ray Ridge - BA(Acc), CA, GIA(cert)

Chief Financial Officer / Joint Company Secretary

Mr Ridge is a chartered accountant with over 25 years accounting and commercial management experience.  Previous roles include Senior Audit Manager with Arthur Andersen, Financial Controller and then Divisional CFO with Elders Ltd, and General Manager Commercial & Operations at engineering and construction company Parsons Brinckerhoff.  Mr Ridge is company secretary for two other ASX listed companies.

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, Druces 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 raises, mergers and acquisitions, Financial Services and Markets Act work, placings  and admissions to AIM, AQUIS and other regulated markets. Mr Ronaldson is currently company secretary for a number of quoted companies including AIM listed companies.

Executive Director Service contracts

All Directors are appointed under the terms of a Directors letter of appointment.  Applicable from October 2020, each appointment provides for annual fees of Australian dollars $50,000 for services as Directors inclusive of the 9.50% as a company contribution to Australian statutory superannuation scheme (10% from 1 July 2021).  Prior to October 2020, annual Directors' fees were $40,000 inclusive of the 9.5% to Australian statutory superannuation scheme. The agreement allows that any services supplied by the Directors to the Company and any of its subsidiaries in excess of two days in any calendar month, may be invoiced to the Company at market rate, currently at A$1,000 per day for each Director other than Mr Michael Billing who was paid A$1,200 per day.

Principal activities and review of the business

The principal activities of the Group are the exploration for and potential development of gold, copper, tungsten and other mineral deposits.

At the Company's 100% owned Ragged Range Project in the Pilbara region of Western Australia, Thor successfully completed early stage exploration activities, including soil and rock chip sampling, stream sediment sampling, as well as airborne magnetic surveys, which identified very promising gold and nickel exploration targets that will be drill tested in Q4 2021.

At Alford East Copper-Gold Project in South Australia, Thor is earning an 80% interest in copper gold oxide mineralisation considered amenable to extraction via In Situ Recovery techniques (ISR). In January 2021, Thor announced an Inferred Mineral Resource Estimate of 177,000 tonnes contained copper & 71,000 oz gold. In conjunction with resource diamond drilling Thor is carrying out hydrogeological and hydrometallurgical assessment of the project for ISR copper and gold development.

Thor holds 30% of EnviroCopper Limited (EnviroCopper).  EnviroCopper, through its 100% owned subsidiary, Environmental Copper Recovery SA Pty Ltd (ECR), holds 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 (ASX: TZN).  Another 100% owned subsidiary of EnviroCopper, Environmental Metals Recovery Pty Ltd (EMR) has a right to earn up to a 75% interest in the Moonta Copper Project, which comprises the northern section of exploration licence EL5984 held by Andromeda Metals Limited (ASX: ADN).

Thor holds 100% of the advanced Molyhil Tungsten-Molybdenum Project in the Northern Territory of Australia, together with a 40% interest in deposits of tungsten, copper, and vanadium, in two tenements adjacent to Molyhil.

Thor holds mineral claims in the US states of Colorado and Utah within the Uranvan Mineral Belt, with historical high-grade uranium and vanadium production results. Subject to permitting Thor proposed drilling testing the Colorado prospects - Rim Rock, Groundhog and Area 23. 

Thor also holds 100% of the Pilot Mountain tungsten project in Nevada USA which has a JORC 2012 Indicated and Inferred Resources Estimate on two of the four known deposits.  Subsequent to 30 June 2021, Thor entered into a binding term sheet to divest the Pilot Mountain tungsten project, subject to a due diligence period (refer Note 21 of the Annual Financial Report).

A detailed review of the Group's activities is set out in the Review of Operations & Strategic Report.

Covid-19

The impact of COVID19 on Thor's operations has continued to cause some modest business disruption mainly in respect of the following:

•          Ensuring the health and safety of our staff and contractors;

•          Logistical issues surrounding supporting field operations; and

•          Volatility of capital markets and Thor's ability to secure equity capital.

These issues have all been directly addressed.  In terms of health of our staff we have standard practices in place to minimise the risk of COVID19 contraction or spread: working from home where appropriate, the use of face masks in public in compliance with local requirements and ensuring the availability of sanitiser and social distance in the office environment.  Travel to major population centres is minimised where possible and the company retains a strict policy of staff staying at home if they feel unwell.

In respect of logistical issues, there has been some unavoidable disruption but the Company has been able to source local resources for exploration activities to avoid the need for international travel and working remotely using digital technology to support in field operations.

Business Review and future developments

A review of the current and future development of the Group's business is provided in the Review of Operations & Strategic Report.

Results and dividends

The Group incurred a loss after taxation of £2,104,000 (2020 loss: £922,000). No dividends have been paid or are proposed.

Key Performance Indicators

Given the nature of the business and that the Group is on an exploration and development phase of operations, the Directors are of the opinion that analysis using KPIs is not appropriate for an understanding of the development, performance or position of our businesses at this time.

At this stage, management believe that the management of cash is the main performance indicator which is monitored closely.

Events occurring after the reporting period

At the date these financial statements were approved, the Directors were not aware of any other significant post balance sheet events other than those set out in note 21 to the financial statements.

Substantial Shareholdings

At 10 September 2021, the following had notified the Company of disclosable interests in 3% or more of the nominal value of the Company's shares:

For the above table, the number of shares held and the percentage of total issued capital (and voting rights) are as at the date of the last notification received by the Company.  Substantial shareholders are required to notify the Company based on the percentage of voting rights held, where there is a movement through a 1% band. Therefore, the number of shares last notified may have changed from that shown, without the need for a substantial shareholder to notify the Company, where their percentage of voting rights remains within the 1% band last notified.  However, as a former Director, Mr Billing's number of shares held was maintained up to date for any change up to the date of retirement on 3 September 2021, and therefore the number of shares held and the corresponding percentage of issued capital and voting rights, is accurate for Mr Billing as at 3 September 2021.

Directors & Officers Shareholdings

The Directors and Officers who served during the period and their interests in the share capital of the Company at 30 June 2021 or their date of resignation if prior to 30 June 2021, were follows:

Directors' Remuneration

The remuneration arrangements in place for directors and other key management personnel of Thor Mining PLC, are outlined below.

The Company remunerates the Directors at a level commensurate with the size of the Company and the experience of its Directors. The Board has reviewed the Directors' remuneration and believes it upholds the objectives of the Company with regard to this issue. Details of the Director emoluments and payments made for professional services rendered are set out in Note 4 to the financial statements.

The Australian based directors are paid on a nominal fee basis of A$50,000 per annum applicable from October 2020 (A$40,000 prior to that date), and UK based directors are paid the GBP equivalent of A$50,000 at an agreed average foreign exchange rate (applicable from October 2020), with the exception of Mr Bradey (retired 29^th October) and Ms Nicole Galloway Warland who receive a salary in their respective executive roles, no further fees were payable to Mr Bradey or Ms Galloway Warland as Executive Directors.

Directors and Officers

Summary of amounts paid to Key Management Personnel

The following table discloses the compensation of the Directors and the key management personnel of the Group during the year.

¹ As at 30 June 2021 amounts of £94,328, £6786, £6786 and £7,203, remained unpaid to Messrs Billing, Potter, McGeough and Ridge respectively.

² Retired 29 October 2020.

³ Appointed as Exploration Manager on 1 October 2020 and appointed Managing Director 21 April 2021.  Remuneration in the above table for Ms Galloway Warland includes the period as Exploration Manager and Managing Director, as both are considered KMP roles.

⁴ Messrs Billing and McGeough elected to receive 50% of their gross directors' fees for the 6 months to 31 December 2020 by Thor shares in lieu of cash payment. Mr Potter elected to receive 100% of his directors' fees for the 6 months to 31 December 2020 by Thor shares in lieu of cash payment.  Following shareholder approval on 25 November 2020, 661,765 ordinary shares were issued on 27 November 2020, to each of Messrs Billing and McGeough in lieu of $11,250 in directors fees owing to each and 1,323,529 ordinary shares were issued to Potter in lieu of $22,500 in directors fees owing.

⁵ Following shareholder approval, 8,000,000 unlisted Options were granted to each of Messrs Potter, Billing and Bradey on 8 July 2020 (exercise price $0.0095, expiring 8 July 2023).  These options were valued at £0.00172 per option using the Black-Scholes method.  Unlisted options were granted under the Company's Employee Share Option Plan on 29 September 2020 to Ms Galloway Warland (4,000,000 options) and Mr Ridge (2,500,000 options).  These options were valued at £0.00509 per option using the Black-Scholes method. 

¹ As at 30 June 2020 amounts of £101,692, £5,329 and £13,406, remained unpaid to Messrs Billing, Potter and Ridge respectively.

² Retired 29 November 2019.

³ Mr Bradey receives a salary as an executive of the Company and does not receive any additional fees as a Director.

⁴ Appointed 27 August 2019

⁵ Messrs Billing and Potter elected to receive 50% of their directors' fees for the 6 months to 30 June 2020 by Thor shares in lieu of cash payment.  Following shareholder approval on 7 July 2020, 1,587,302 ordinary shares were issued on 8 July 2020, to each of Messrs Billing and Potter in lieu of $10,000 in directors fees owing to each.

Directors Meetings

The Directors hold meetings on a regular basis and on an as required basis to deal with items of business from time to time. Meetings held and attended by each Director during the year of review were:

Corporate Governance

The Board have chosen to apply the ASX Corporate Governance Principles and Recommendations (ASX Corporate Governance Council, 4^th Edition) as the Company's chosen corporate governance code for the purposes of AIM Rule 26.  Consistent with ASX listing rule 4.10.3 and AIM rule 26, this document details the extent to which the Company has followed the recommendations set by the ASX Corporate Governance Council during the reporting period.  A separate disclosure is made where the Company has not followed a specific recommendation, together with the reasons and any alternative governance practice, as applicable.  This information is reviewed annually.

The Company does not have a formal nomination committee, however it does formally consider board succession issues and whether the board has the appropriate balance of skills, knowledge, experience, and diversity.  This evaluation is undertaken collectively by the Board, as part of the annual review of its own performance.

Whilst a separate Remuneration Committee has not been formed, the Company undertakes alternative procedures to ensure a transparent process for setting remuneration for Directors and Senior staff, that is appropriate in the context of the current size and nature of the Company's operations.  The full Board fulfils the functions of a Remuneration Committee, and considers and agrees remuneration and conditions as follows:

·      All Director Remuneration is set against the market rate for Independent Directors for ASX listed companies of a similar size and nature.

·      The financial package for the Managing Director is established by reference to packages prevailing in the employment market for executives of equivalent status both in terms of level of responsibility of the position and their achievement of recognised job qualifications and skills.

The Company does not have a separate Audit Committee, however the Company undertakes alternative procedures to verify and safeguard the integrity of the Company's corporate reporting, that are appropriate in the context of the current size and nature of the Company's operations, including:

·      the full Board, in conjunction with the Australian Company Secretary, fulfils the functions of an Audit Committee and is responsible for ensuring that the financial performance of the Group is properly monitored and reported. 

·      in this regard, the Board is guided by a formal Audit Committee Charter which is available on the Company's website at http://www.thormining.com/aboutus#governance.  The Charter includes consideration of the appointment and removal of external auditors, and partner rotation.

Further information on the Company's corporate governance policies is available on the Company's website www.thormining.com.

Environmental Responsibility

The Company is aware of the potential impact that its subsidiary companies may have on the environment. The Company ensures that it and its subsidiaries at a minimum comply with the local regulatory requirements with regard to the environment.

Employment Policies

The Group will be committed to promoting policies which ensure that high calibre employees are attracted, retained and motivated, to ensure the ongoing success for the business. Employees and those who seek to work within the Group are treated equally regardless of gender, age, marital status, creed, colour, race or ethnic origin.

Health and Safety

The Group's aim will be to achieve and maintain a high standard of workplace safety. In order to achieve this objective, the Group will provide training and support to employees and set demanding standards for workplace safety.

Payment to Suppliers

The Group's policy is to agree terms and conditions with suppliers in advance; payment is then made in accordance with the agreement provided the supplier has met the terms and conditions. Under normal operating conditions, suppliers are paid within 60 days of receipt of invoice.

Political Contributions and Charitable Donations

During the period the Group did not make any political contributions or charitable donations.

Annual General Meeting ("AGM")

This report and financial statements will be presented to shareholders for their approval at the AGM. The Notice of the AGM will be distributed to shareholders together with the Annual Report.

Auditors

A resolution to reappoint PKF Littlejohn LLP will be considered at the Company's next Annual General Meeting expected to be held late November 2021.

Statement of disclosure of information to auditors

As at the date of this report the serving Directors confirm that:

·    So far as each Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

·    they have taken all the steps that they ought to have taken as Directors in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Going Concern

The Directors note the losses that the Group has made for the Year Ended 30 June 2021.  The Directors have prepared cash flow forecasts for the period ending 30 September 2022 which take account of the current cost and operational structure of the Group.

The cost structure of the Group comprises a high proportion of discretionary spend and therefore in the event that cash flows become constrained, some costs can be reduced to enable the Group to operate with a lower level of available funding. As a junior exploration company, the Directors are aware that the Company must go to the marketplace to raise cash to meet its exploration and development plans, and/or consider liquidation of its investments and/or assets as is deemed appropriate.

These forecasts demonstrate that the Group has sufficient cash funds available to allow it to continue in business for a period of at least twelve months from the date of approval of these financial statements on the basis of continued ability to raise capital in the marketplace.  Accordingly, the financial statements have been prepared on a going concern basis. Further consideration of the Group's Going Concern status is detailed in Note 1 to the financial statements.

Statement of Directors' Responsibilities

The Directors are responsible for preparing the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the group and parent company financial statements in accordance with applicable law and international accounting standards in conformity with the requirements of the Companies Act 2006 and as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the group and of the profit or loss of the company and the group for that year. In preparing those financial statements, the Directors are required to:

·    select suitable accounting policies and then apply them consistently;

·    make judgments and estimates that are reasonable and prudent;

·    state whether applicable international accounting standards in conformity with the requirements of the Companies Act 2006 have been followed subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business.

The Directors confirm that they have complied with the above requirements in preparing the financial statements.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006.  They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Electronic communication

The maintenance and integrity of the Company's website is the responsibility of the Directors:  the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

The Company's website is maintained in accordance with AIM Rule 26.

Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.

This report was approved by the Board on 30 September 2021.

Mark Potter                                                                  Ray Ridge

Non-Executive Chairman                                             Chief Financial Officer