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Substantial Increase in Molyhil Project Reserve

Tuesday, October 30th, 2007

Thor Mining Plc is pleased to announce an updated JORC compliant reserve estimate for its 100%-owned Molyhil Tungsten-Molybdenum Project in the Northern Territory of Australia. The Company also announced the results of the recently commissioned review of the capital cost estimate for the Molyhil Project.
The completion of the updated reserve estimate – which is based on the revised resource estimate announced in August of 3.73 million tonnes at 0.51% combined tungsten (WO3) and molybdenum (MoS2) – represents another important step towards development of the Molyhil Project.
The new Proven and Probable reserve is based on only the Measured and Indicated categories of the revised resource. Approximately 73% of these Measured and Indicated resource tonnages converted to reserve status, which now totals:
Tonnes, Grade WO3, Grade MoS2
Proven 456,000 0.47% 0.30%
Probable 1,690,000 0.49% 0.20 %
Total 2.15 million tonnes 0.49% 0.22%
This represents a tonnage increase of 98%.
Open pit designs have now been completed in two stages. The initial pit has been designed for the first 3.7 years of operation to maximise cash flow with the subsequent pit design continuing for a further 1.9 years at current commodity prices.
The mining reserve contains a total of 4.8 million pounds of molybdenum metal and 700,000 mtu’s of tungsten which will be produced over the expected 5.6 year life of the open pit design.
Perth-based consulting engineering group, GR Engineering Pty Ltd (GRE), has completed a review of the capital cost estimate for the Molyhil Project. This included the previously announced proposed upgrade in the processing capacity of the plant to 400,000 tonnes per annum.
The estimated total capital cost for the Molyhil process plant, including an allowance for contingency, EPCM and owner operator costs is A$63.3 million. This includes a provision of A$13.7 million for owner operator plant and equipment, previously included in operating costs as lease or hire costs. This additional capital reduces forecast processing and mining operating costs from A$94 per tonne to A$78 per tonne, a significant saving over the projected 5.6 year mine life.
The Company expects to announce the updated financial model for the Molyhil Project shortly. The updated model will incorporate new input parameters, including revised operating costs based on the new mine schedule and a processing throughput of 400,000 tonnes per annum.
Commenting on the updated reserve estimate, Thor’s Chief Executive Officer, Mr John A. Young, said: “This is another important milestone for the Molyhil Project, as the new reserve estimate has enabled us to progress our off-take negotiations – which will be our main focus over the next month. Following the signing last week of a landmark Native Title Mining Agreement, our progress towards development continues to gather momentum.”
For further information visit: www.thormining.com

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