Thor Mining : Pilot Mountain Resource Estimate Enchanced

ASX Code: "THR"

13 December 2018

THOR MINING PLC

Company Announcements Office ASX Securities Limited,

Registered Numbers:

United Kingdom 05276 414

20, Bridge Street, Sydney, N.S.W. 2000

Australia 121 117 673

DESERT SCHEELITE RESOURCE ESTIMATE ENHANCED

Registered Office:

58 Galway Avenue MARLESTON, SA, 5035 Australia

PILOT MOUNTAIN PROJECT - NEVADA USA

Ph: [phone]

Fx: [phone]

The Board of Thor Mining Plc ("Thor" or the "Company") (AIM, ASX: THR), is pleased to announce an upgraded and increased mineral resource estimate containing tungsten, copper and now zinc, for the Desert Scheelite deposit at Pilot Mountain in Nevada USA.

Highlights:

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Website:www.thormining.com

• • The Desert Scheelite mineral resource estimate now comprises 10.7 million tonnes at 0.26% WO₃, 19.38 gram/tonne Silver (Ag), 0.15% copper (Cu), & 0.38% zinc (Zn) (above cut-off grade of 0.15% WO3) (Refer to Table A below);

  Twitter@ThorMining

• • The upgraded mineral resource estimate represents a 6.5% increase in the scheelite inventory for Desert Scheelite, now containing 27,700 tonnes of WO₃ (tungsten trioxide) 85% of which is in the Indicated Resources category;

  Enquiries: Mick Billing Executive Chairman Thor Mining PLC [phone]

• • For the first time, the estimate includes zinc in the resource inventory, contributing an additional potential by-product stream to the project;

• • The planned flotation recovery process, currently being trialled, is likely to recover zinc sulphides into concentrate with minimal additional cost;

  Nominated Advisor Colin Aaronson Grant Thornton [phone]

• • The resource inventory still has considerable growth potential via the Gun Metal and Good Hope deposits, as well as further potential upside at both Desert Scheelite and Garnet;

Mick Billing, Executive Chairman, commented:

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"This addition to the resource estimate at Pilot Mountain further enhances the potential of this exciting project."

Directors: Michael Billing David Thomas Alastair Middleton Richard Bradey

"Pilot Mountain hosts a large and, in the directors' view, valuable tungsten resource in the USA, where there has been no primary production of tungsten for some years, despite being classified as a critical mineral by the US Department of the Interior."

Key Projects:

• • Tungsten Molyhil NT

  "I look forward to outlining the next steps for this key Company project in the coming weeks. This update will complement comprehensive updates across all areas of our operations in what is a highly proactive period for Thor."

  Pilot Mountain USA

• • Copper

  Kapunda SA

"In this regard I also expect to provide updates to the market in respect of Molyhil commercialisation, the Bonya project review exercise (including vanadium) and the latest developments in respect of the Company's Kapunda copper project interest."

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Table A: Pilot Mountain Resource Summary 2018 (JORC 2012) - 100% owned by Thor Mining Plc

Resource

WO3

Ag

MT

Grade Contained % metal (t)g/t

Grade Containedmetal (t)

Cu	Zn
Grade Contained	Grade Contained
% metal (t)	% metal (t)

Indicated

Garnet

Inferred

1.83

- 0.36

6,590

Sub Total

1.83

0.36

6,590

Desert ScheeliteIndicated 9.01

• 0.26 23,400

  • 20.73 187

    • 0.15 13,200

      0.41 37,100

      Inferred 1.69

• 0.25 4,300

• 12.24 21

• 0.16 2,800

0.19 3,200

Sub Total

10.70

0.26

27,700

19.38

207

0.15

16,000

0.38

40,300

Indicated 9.01

• 0.26 23,400

  Summary

  Inferred 3.53

• 0.31 10,890

Pilot Mountain Total

12.53

0.27

34,290

Note:

• • 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.

Zinc Exploration Target

Zinc and copper are also present at the other three Pilot Mountain deposits; Garnet, Good Hope and Gun Metal however zinc data are not included in the historic database and the 2017 drilling zinc data alone are insufficient to estimate an inferred zinc resource.

On the basis of the 2017 drill data, an exploration target* for the Garnet deposit is estimated as; 1-4 - 1.8 Mt at 0.5 to 1.0% Zinc

(7,000 - 18,000 tonnes contained Zn metal)

Further opportunities for the growth of the Garnet resource are being evaluated for follow up drilling.

*Exploration Targets are conceptual in nature and there is insufficient data to define a Mineral Resource under the JORC Code. It is uncertain if further exploration will result in the determination of a Mineral Resource.

Summary of Resource Estimate and Reporting Criteria

The work is an update of the resource completed by Golder Associates in 2012. The 2018 resource update was undertaken by Resource Evaluation Services (RES).

Drilling of the Desert Scheelite deposit has been conducted in campaigns since 1972, with the most recent drilling completed in 2017. The update to the resource includes four new diamond drill holes completed by Thor and seven additional drill holes added to the database from historical sources.

The drill hole database used for the Desert Scheelite resource estimation was provided to RES as the MS Access database ds_drillhole_database.mdb. The referential integrity of the supplied databasewas confirmed, and the database validated against the 2012 resource database. Adjustments to the database were made by RES correcting the imperial to metric conversion and standardising the database to millimetre precision.

The Vulcan ISIS database ds112018.geo.isis was created by RES for the update. The resource model update is based on 99 drill holes for a total of 18645 m, spaning 750 m east to west and 300 m in a north to south.

Most of the modelling data from the Golder 2012 model was available to RES including the topographic and mineralisation models.

The mineralisation wireframe models were adjusted to account for the additional drilling. The mineralised skarns were separated into several domains representing structural and geological differences. The Desert Scheelite deposit has been modelled as several sub-vertical lenses. The Desert Scheelite deposit trends dominantly east-west and dips variably 70-80º.

The mineralised skarns have been modelled using a 0.1% WO3 cut-off and geological logs when available. The quartz monzonite, tertiary volcanics, metaclastites, hornfels and Top of Fresh Rock have been interpreted using the logged stratigraphy codes. The mineralised zones were used to define spatial regions for statistical and geostatistical analysis.

For statistical data analysis, exploration data was composited to 1.52 m (5 ft) downhole lengths.

Imprecise imperial to metric conversion factors resulted in a significant proportion of short composites. To mitigate this issue length weighted raw samples were used in the final analysis and estimation.

Analysis was based on four assay variables: WO3, Ag, Cu and Zn. The composites were flagged to the geological interpretations and statistical analysis performed by domain.

Downhole and directional grade variography was completed for all domains to provide parameters for the Ordinary Kriging method used for resource estimation. The spherical scheme model was used to obtain all variogram parameters from the experimental variograms. The modelled variograms have directions consistent with the orientations of the lodes and exhibit a low angle plunge in the main skarn.

Four estimation passes using increasing search distances were employed to interpolate all the blocks within the skarn and waste domains. The fourth pass was used to establish inferred resource down dip of the deposit by increasing the search ellipse size in the down dip direction.

Density values were applied to model based on the Golder 2012 work.

For further information, please contact:

THOR MINING PLC

Mick Billing Executive Chairman [phone]

Competent Person's Report

The information in this report that relates to the Desert Scheelite and Garnet JORC Resource Estimates is based on information compiled by Mr. Stephen Godfrey, who is a Member of the Australian Institute of Geoscientists and Australasian Institute of Mining & Metallurgy and who has had sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activities which are being undertaken 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' . Mr. Godfrey is an employee of Resource Evaluation Services and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to exploration results and exploration targets is based on information compiled by Richard Bradey, who holds a BSc in applied geology and an MSc in natural resource management and who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Bradey is an employee of Thor Mining PLC. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he 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'. Richard Bradey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Updates on the Company's activities are regularly posted on Thor's websitewww.thormining.com,which includes a facility to register to receive these updates by email, and on the Company's twitter page @ThorMining.

About Pilot Mountain

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 comprises four tungsten deposits: Desert Scheelite, Gunmetal, Garnet and Good Hope. All are in close proximity (~three kilometres) to each other and have been subjected to small-scale mining activities at various times during the 20th century. Union Carbide acquired the project in 1978, for US$7.0 million (estimated at US$26million - US$40million in 2017 dollars), and conducted detailed exploration and feasibility activities until, following a global downturn in the tungsten industry in the 1980s, they suspended further work.

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.

Thor also holds 100% of the Pilot Mountain tungsten project in Nevada USA which has a JORC 2012 Indicated and Inferred Resources Estimate² on 2 of the 4 known deposits. The US Department of the Interior has confirmed that tungsten, the primary resource mineral at Pilot Mountain, has been included in the final list of Critical Minerals 2018.

Thor is also acquiring up to a 60% interest Australian copper development company Environmental Copper Recovery SA Pty Ltd, which in turn holds rights to earn up to a 75% interest in the mineral rights and claims over the resource³ on the portion of the historic Kapunda copper mine in South Australia recoverable by way of in situ recovery.

Thor has a material interest in Hawkstone Mining Limited, an Australian ASX listed company with a 100% Interest in a Lithium project in Arizona, USA.

Finally, Thor also holds a production royalty entitlement from the Spring Hill Gold project⁴ of:

• • A$6 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for up to A$1,500 per ounce; and

• • A$14 per ounce of gold produced from the Spring Hill tenements where the gold produced is sold for amounts over A$1,500 per ounce.

Notes

• • ¹ Refer ASX and AIM announcement of 23 August 2018

• • ² Refer AIM announcement of 22 May 2017 and ASX announcement of 23 May 2017

• • ³ Refer AIM announcement of 10 February 2016 and ASX announcement of 12 February 2018

• • ⁴ Refer AIM announcement of 26 February 2016 and ASX announcement of 29 February 2017

Compliance with the JORC Code Assessment Criteria

The JORC Code (2012) describes a number of criteria, which must be addressed in the documentation of Mineral Resource estimates, prior to public release of the information. These criteria provide a means of assessing whether or not the data inventory used in the estimate is adequate for that purpose. The resource estimate stated in this document was based on the criteria set out in Table 1 of that Code. These criteria have been discussed in the main body of the document and are summarised below. Only sections relevant to the reported resource have been addressed. The JORC Code Assessment Criteria in the following table are italicised.

Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

JORC Code explanation

• • Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Commentary

The recent drilling used reverse circulation and diamond drilling to obtain samples. From the RC drilling 2 kg subsamples were taken using rotary splitter for logging and laboratory analysis. Chip tray samples were collected logged and photographed. Drill core was sampled on geological intervals.