UPGRADED ORE RESERVE AND EXTENDED MINE LIFE

·    The Ore Reserve estimate is based on the Mineral Resource estimate prepared by Runge Pincock Minarco reported in the October to December 2013 quarterly report.

·    The Mineral Resources are reported inclusive of Ore Reserves.

·    A site visit has not been conducted by the Competent Person.

·    The Competent Person is satisfied that the 3D topographic data supplied and descriptions of the site environment and expected operating conditions are adequate for the completion of appropriate mine designs and schedules and for the estimation of Ore Reserves

·    Thor Mining PLc (Thor) completed and published a Definitive Feasibility Study (DFS) in June 2012.   A JORC 2004 compliant Ore Reserve was published in May 2012.

·    In July 2014 Thor published an updated ore reserve following the completion of a new mine plan by AVCS.   The 2014 mine planning cycle was underpinned by the inclusion of an XRT ore sorting pre-concentration stage in the processing stream and incorporated revised operating and capital cost estimates and metal prices.

·    This 2017 ore reserve estimate is based on another mine planning cycle incorporating further improvements to the ore sorting model and the most recent operating and capital cost estimates and projected metal prices.

·    Thor are currently reviewing capital cost estimates and all indications point to a likely reduction, however, the impact on project NPV and IRR are not expected to be significant.

·    An NSR based cut-off policy has been adopted taking into consideration:

o  WO₃ price

o  Mo price

o  Processing cost

o  Metallurgical recoveries

o  Transport cost

o  G&A costs

·    Royalty to Northern Territory government and private entities were not included in the calculation of the NSR

·    The Ore Reserve has been estimated from detailed pit designs which were based on a preferred shell chosen from a range of pit optimisation shells.   The pit optimisation incorporated sensitivity analyses on mining cost, processing cost, revenue, slope angle and geo-metallurgical recovery.

·    The Ore Reserve estimate assumes conventional truck and shovel open pit mining practices, X-Ray ore sorting and conventional flotation and gravity processing practices.

·    Pit design slope parameters were sourced from a report by Pells Sullivan Meynik; "Molyhil, Geotechnical Open Pit Slope Design Aug 2012.   Overall slope angles for pit optimisation were adjusted for the likely impact of ramps - these overall angles aligned well with final pit designs.

·    The resource block model provided by Thor has block dimensions of 1.25m in the east-west direction x 2.5m in the north-south direction x 2.5m in elevation.

·    A mineable resource model was prepared from the resource model, the mineable resource model incorporates estimates for mining loss and dilution, geo-metallurgical stage recoveries, costs and revenue.

·    The mining model was regularised to a 5m bench height and a value based ore selectivity analysis assuming a 5m x 5m SMU was carried out to determine ore boundaries.

·    An edge dilution of 0.5m was applied to the ore boundary.

·    The net impact[1] of regularisation, mining dilution and SMU is:

o  102%recovery of mineralised material mass

o  101% mass recovery of WO₃ (98% head grade)

o  99% mass recovery of Mo (97% head grade)

·    The ore reserve includes approximately 4% by mass of inferred and unclassified material as dilution.

·    The proposed pit is developed in three stages.

o  Stage 1 is approximately 70m deep, has pit floor dimensions of 140m x 35m and yields 1.1 Mt of ore.

o  Stage 2 mining width is typically 60m to 100m with a minimum width of 25m.   The final pit is approximately 130m deep, including a 5m deep "goodbye" cut which narrows to between 25m and 35m in width.   A one way 15m wide ramp is used for the final 20m of the pit.

o  Stage 3 mining width is typically 50m to 100m with a minimum width of 25m.   The final pit is approximately 230m deep, including a 5m deep "goodbye" cut which narrows to between 25m and 40m in width.   A one way 15m wide ramp is used for the final 25m of the pit.

·    Ore processing will consist of crushing, X-Ray sorting for pre-concentration, grinding, flotation and gravity separation.   These technologies are industry standards for the type of deposit.

·    Drilling, bulk sampling and metallurgical test work by Thor has been ongoing since 2005.

·    The revised ore sorting model features grade dependent rock mass and metal reject fractions averaging:

o  39.3% rock mass rejection

o  1.0% WO₃ loss

o  6.0% Mo loss

·    Metallurgical recoveries average:

o  84.5% recovery of WO₃ in mill feed ~ 83.7% of ROM feed

o  72.1% recovery of Mo in mill feed ~ 60.2% of ROM feed

·    Copper is a potential penalty element in the Molybdenum concentrate.   Test work indicates the copper grade will not exceed the allowable limit in previous off-take agreements hence no price penalty has been applied.

·    Molybdenum is a potential penalty element in the Scheelite concentrate.   Test work indicates the molybdenum grade is likely to be above the penalty threshold.   Price penalties are applied in; the calculation of NSR, the pit optimisation and the financial model based on estimates from off-take partners.

·    Approval for the Mining Management Plan was granted by the Northern Territory Director of Mining and Petroleum Authorisations and Evaluations in 2008 but was let lapse by Thor.

·    The Mining Management Plan was re-submitted in June 2012. Thor have been requested to conduct additional sampling in respect of waste rock characterisation, and some additional design parameters in respect of the proposed Tailings Storage Facility.  Both works are in progress.

·    Geological data indicates the waste rock is not likely to be acid producing, however further studies are currently in progress on waste rock characterisation or selective placement.

·    Infrastructure for all activities will need to be installed/constructed before the commencement of mining.

·    Site access from the Plenty Highway will require upgrading of an existing road for both transport of construction materials and concentrate shipment.   Agreements are in place with the landholder for use of this road.

·    All available space within the ML's 23825, 24429 & 25721 is used for either site facilities or waste rock disposal due to the increase in pit size compared with the 2014 mine plan.  Approximately 0.7Mbcm of waste is assumed to be disposed beyond the northern extend of ML24429 which is within Thor's exploration lease EL22349.

·    Tailings disposal is based on designs proposed by BTM Solutions in March 2015 in the report titled "Molyhil Tailings Storage Facility Design Review".   The tailings storage facility comprises two contiguous cells approximately 12m high located to the east of the pit primarily within ML24429 but extending to south into ML25721

·    A community assessment of stakeholders was conducted in 2007.   Stakeholders consulted in identifying opportunities and risks were:

o  Central Land Council (CLC)

o  Indigenous Coordination Venture

o  Indigenous Business and Industry Services

o  Alice Springs Town Council

o  Mining, Petroleum and Defence Support Group

o  Desert Knowledge Australia

o  Centre for Appropriate Technology

o  Arltarlpilta Community Government Council

o  Jinka/Jervois station

·    An agreement is in place with the CLC to provide indigenous employment opportunities.

·    Full project valuation has been conducted by Thor.   The Competent Person understands that capital costs have been sourced from suppliers and contractors during the DFS process and since updated by Thor.

·    Operating costs have been based on supplier quotes and extrapolation by Thor.

·    An exchange rate of 0.75 USD/AUD has been used in the pit optimisation and calculation of the NSR.

·    Royalty to Northern Territory government and Central Land Council have been calculated in the financial model.

·    NSR calculation and pit optimisation used:

o  US$300/mtu for WO₃

o  US$7.92/lb for Mo

·    The WO₃ price was determined by discounting the predicted long term price of US$350/mtu by $50 for [2]APT.

·    The Mo price was determined by discounting the predicted long term price of [3]$9.00/lb by 12% refining charge.

·    Neither tungsten nor molybdenum have potential substitutes for their main application and consumption for both is expected to continue to grow.   Molybdenum is often a secondary product from Cu or Cu/Au mines and production can be readily turned on or off as demand and price dictates.

·    Market predictions for tungsten beyond 2014 are for demand to exceed supply and price to increase.

·    Market predictions for molybdenum beyond 2013 are for demand to increase with global GDP and prices increase beyond 2015.

·    Economic inputs such as foreign exchange rates, royalties, costs, discount rate etc are set by Thor and have been tested in the project valuation model.

·    Project assessment by Thor indicates a very attractive positive net present value and IRR.

·    Consultation has occurred with the relevant stakeholders, including aboriginal peoples who claim affinity with the land upon which the plant will be located.

·    Tripartite Deed of Agreement has been executed in 2008 between the NT government, Thor, the Central Land Council and the Arrapere Group.

·    Thor obtained the Aboriginal Areas Protection Authority Certificate in March 2012.

·    The entire Ore Reserve is classified as Probable.

·    Only Indicated Mineral Resources were considered in the calculation of the NSR for the purposes of pit optimisation and reserves estimation.

·    The Ore Reserve estimate does include minor quantities of Inferred Resources and unclassified mineralisation that have resulted from the formation of an SMU and/or inclusion of edge dilution across the Indicated Resource block boundary.   This additional material is ~ 4% of the estimated reserve mass and but makes no contribution to the recovered WO₃ and Mo.

·    No portion of the Probable Ore Reserves have been derived from Measured Resources - there are no Mineral Resources of Measured classification.

·    The Ore Reserves has not been externally audited.