Alford East Agreement

20 November 2020

THOR MINING PLC

Alford East, South Australia

The directors of Thor Mining Plc ("Thor") (AIM, ASX: THR) are pleased to advise that Thor has executed a binding term sheet for Thor to acquire an interest in the oxide mineral rights from Spencer Metals Pty Ltd ("Spencer") over the Alford East copper-gold project,  located on the Yorke Peninsula, South Australia.

Highlights:

§ Thor to acquire up to 80% interest directly in the Alford East Project, covering portions of EL6255 and EL6259);

§ The Alford East Project comprises numerous oxide copper-gold prospects including Alford East, Netherleigh Park and Netherleigh North, each with extensive previous drilling. Copper-oxide intercepts include:

§ 122m @ 0.63% Cu from 95m (ALDDH09) including 14m @ 2.26% Cu from 111m

§ 76m @ 0.95% Cu from 138m (ALDDH01) including 14m @ 2.18% Cu from 146m

§ 14m @ 1.5% Cu from 162m, and 34m @ 0.5% Cu from 190m (MPBD3).

§ The Alford East Project covers the northern extension of Alford Copper Belt, where to the south west EnviroCopper Ltd has reported an Inferred Mineral Resource of 66.1Mt @ 0.17% Cu for three deposits Wombat, Bruce and Larwood (THR:ASX Announcement 15 August 2019);

§ The Alford Copper Belt is a coherent zone of potentially In Situ Recovery (ISR) amenable copper-gold oxide mineralization, within a structurally controlled north-south trending trough of deeply kaolinized and oxidized metamorphic units on the edge of the Tickera Granite;

§ Multiple substantial 'walk up' drill ready targets.

Mick Billing, Executive Chairman of Thor Mining, commented:

"The directors of Thor have taken the view that global copper demand and pricing, with the potential for post COVID19 economic recovery, should improve substantially in both the short and medium term, and have moved to increase the Company's exposure to potential low cost copper production projects."

"The Alford East project, the directors believe, represents a continuation of the favourable geology which hosts the Alford West resources, which Thor has exposure to via our interest in EnviroCopper Ltd (Thor 30% equity)."

"Several prospects at Alford East have substantial drilling history, providing evidence of both extensive mineralisation, and geology of a type, which subject to further work, appears potentially amenable to Insitu Recovery (ISR) techniques."

A map showing the project location and its proximity to the Alford West project subject to the joint venture earnin by EnviroCopper Limited can be accessed from the Thor website via the attached link:

www.thormining.com/sites/thormining/media/Maps/20-005-1a-alfors-east-jv.jpg

Agreement Structure and Commercial Terms

Under the terms of the Agreement, Thor has been granted the right to explore for minerals on the agreed portions of the exploration licences (EL6255 and EL6259), and to conduct feasibility and development activities in respect thereto, and via funding expenditure on these activities, earn an interest of up to 80% over two stages directly in the project;

§ Upfront cash consideration of A$30,000 upon execution of the binding term sheet which has been paid;

§ Stage 1: Thor can earn a 51% interest by funding A$500,000 expenditure over 2 years to 11 November 2022, and for additional consideration of A$250,000 in fully paid Thor shares, issued at the 5 day ASX VWAP (volume weighted average price) on the date immediately prior to allotment, together with two free attaching options per share issued, exercisable at $0.03 within 5 years from the date of issue (Stage 1 expenditure);

§ Stage 2: earn a further 29% interest (80% in total) by funding an additional A$750,000 of expenditure over a subsequent 2 years to 11 November 2024 and for additional consideration of A$250,000 in fully paid Thor shares, issued at the 5 day ASX VWAP on the date immediately prior to allotment and two free attaching options per share issued, exercisable at a$0.03 within 5 years from the date of issue (Stage 2 expenditure).  If Thor does not proceed with the Stage 2 earn-in, then its interest in the project is relinquished;

§ Upon Thor completing the acquisition of an 80% interest in the project, Spencer will hold a free carried 20% interest in the project until decision to mine;

§ The parties have agreed to use reasonable commercial endeavours to negotiate and execute a formal Joint Venture Agreement for the development and operation of a mine and associated facilities within 60 days from the end of Stage 2.

Copper-Gold Prospectivity

The Alford East Earn-in/Joint Venture covers portions of EL6259 and EL6255 and is interpreted as the northern extension of the Alford Copper Belt, comprising Alford East, Netherleigh Park and Netherleigh Park North prospects. The Alford Copper Belt is a coherent zone of copper-gold oxide mineralization; malachite, azurite, native copper and chalcocite within a structurally controlled north-south trending trough of deeply kaolinized and oxidized metamorphic units on the edge of the Tickera Granite. Kaolin and alunite overprints metasediment, granite and calc-silicate altered metasomatites. The timing of the argillic alteration is contentious and may be either a primary hydrothermal alteration assemblage or a product of deep weathering during the Tertiary.

In 1995, M.I.M Exploration discovered the Alford East Prospect when drilling diamond hole MPBD3 that reported significant copper oxide mineralization in four broad zones to the end of hole, including (Open File Report -ENV08660: Annual Technical Report M.I.M. Exploration 1996):

§ 20m @ 0.2% Cu from 64m,

§ 42m @ 0.3% Cu from 116m,

§ 14m @ 1.5% Cu from 162m(MPBD3), and

§ 34m @ 0.5% Cu from 190m(MPBD3).

Further drilling by joint venture partners of Argonaut Resources, Hillgrove Resources and Sandfire Resources from 2001 to 2015, intersected copper oxide mineralization at Alford East and a nearby prospect Netherleigh Park and reported intersections are shown on Table A.

Historic exploration over the Alford Copper Belt has focused on the IOCG sulphide mineralization beneath the interpreted oxide zone, however recent metallurgical testwork by EnviroCopper Ltd over their Alford West project, approximately 10km to the south west has highlighted the amenability of this copper-gold oxide mineralization to In situ Recovery (ISR) processes. Alford West has an ISR amenable Inferred Mineral Resource (MRE) of 66.1Mt @ 0.17% Cu, containing 114,000 tonnes of contained copper, at a cut-off grade of 0.05% Cu, covering Wombat, Bruce and Larwood deposits, (THR:ASX Announcement 15 August 2019).  The amenability of this oxide mineralization within the deep weathered trough presents exciting opportunities for Thor to add further mineralization extensions over the Alford East Project.

Table A: Alford East Drill -Results from Argonaut Resources (ARE: ASX Announcement 9 Nov 2012)

*Downhole Interval

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Enquiries:

Competent Persons Report

The information in this report that relates to exploration results 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.

About Thor Mining PLC

Thor Mining PLC (AIM, ASX: THR) is a resources company quoted on the AIM Market of the London Stock Exchange and on ASX in Australia.

Thor holds 100% of the advanced Molyhil tungsten project in the Northern Territory of Australia, for which an updated feasibility study in August 2018¹ suggested attractive returns.

Adjacent 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 deposits².

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 in South Australia recoverable by way of in situ recovery⁴. EnviroCopper also holds rights to earn a 75% interest in portion of the Alford West copper project also in South Australia, and is also considered amenable to recovery by way of in situ recovery⁵.

Thor holds 100% of the Pilot Mountain tungsten project in Nevada USA which has a JORC 2012 Indicated and Inferred Resources Estimate³ on 2 of the 4 known deposits.

At the 100% owned Ragged Range Project in the Pilbara region of Western Australia, Thor has exciting early stage results for which gold and nickel drilling is planned."

"Thor holds mineral claims in  the US states of Colorado and Utah with historical high grade uranium and vanadium drilling and production results."

Notes

¹ Refer ASX and AIM announcement of 23 August 2018

² Refer ASX and AIM announcement of 26 November 2018, and 29 January 2020

³ Refer AIM announcement of 13 December 2018 and ASX announcement of 14 December 2018

⁴ Refer AIM announcement of 10 February 2016 and ASX announcement of 12 February 2018

⁵ Refer ASX and AIM announcement of 15 August 2019

JORC CODE, 2012 EDITION - TABLE 1

1.1     Section 1 Sampling Techniques and Data

  (Criteria in this section apply to all succeeding sections.)

1.1     Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section may apply to this section)