Thor Mining : 02/08/2017 Copper Investment Kapunda SA

2 August 2017

Company Announcements Office, ASX Securities Limited, 20, Bridge Street, Sydney, N.S.W. 2000 AGREEMENT TO CO-INVEST IN SOUTH AUSTRALIAN COPPER PROJECT EARNING MAJORITY INTEREST NEW COPPER FOCUSED COMPANY

The Board of Thor Mining Plc ("Thor" or the "Company") (AIM, ASX: THR) is pleased to announce it has agreed to acquire an interest in the historically mined Kapunda copper deposit in South Australia ("Kapunda").

Thor will invest in a newly incorporated private Australian company, Environmental Copper Recovery SA Pty Ltd. ("ECR"), initially via convertible loan notes of up to A$1.8 million, which will be used to fund field test work and feasibility activities at Kapunda over the next 3 years. In turn ECR has entered into 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 ("Terramin" ASX: "TZN").

Agreement Details:

• Binding term sheet signed to provide funding through convertible notes in ECR, of up to A$1.8 million, which will be used by ECR to fund field test work and feasibility study activities at Kapunda;

• Conversion of loan notes in ECR is at the sole discretion of Thor, and will result in Thor holding up to a 60% equity interest in ECR, depending on the timing of conversion and value of the convertible loan notes that Thor holds at the time;

• Upon the initial investment in loan notes by Thor, agreed at A$200,000, Thor will be invited to nominate two of the four directors of ECR and shall nominate the chairman;

• ECR to earn an initial 50% of the rights over that portion of the Kapunda deposit minerals which can be extracted via in-situ recovery through the expenditure of A$2.0 million on field test work, metallurgical studies, and other environmental and feasibility processes;

• ECR to hold the right to earn a further 25% of that part of the Kapunda copper deposit which can be extracted via in-situ recovery through the expenditure of a further A$4.0 million. Should ECR decide to earn-in to this additional 25%, the shareholders of ECR will contribute the A$4.0m on a pro-rata basis or their holdings in ECR will be diluted.

Mick Billing, Chairman of Thor Mining plc: "We are delighted to team up with the professional people of Environmental Copper Recovery in, what we expect, is to be the first of several low-cost copper opportunities in Australia.

THOR MINING PLC

Registered Numbers: United Kingdom 05 276 414

Australia 121 117 673

Registered Office: 58 Galway Avenue

MARLESTON, SA, 5035

Australia

Ph: [phone]

Fx: [phone]

Email:[e-mail]

Website: www.thormining.com

@ThorMining

Enquiries: Mick Billing

Executive Chairman Thor Mining PLC

[phone]

Nominated Advisor Colin Aaronson Grant Thornton

[phone]

ASX Listings: Shares: THR

AIM Listings: Shares: THR

Directors: Michael Billing David Thomas Gervaise Heddle Paul Johnson

Alastair Middleton

Key Projects:

• Tungsten

Molyhil NT

Pilot Mountain USA

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"Kapunda is not an exploration project where we hope to find mineralisation. The presence of copper is well documented with significant prior production, and substantial historical drilling. The opportunity at Kapunda is to test, at modest cost, the potential for insitu recovery to extract the copper mineralisation. While the characteristics of the deposit, determined from reviewing historical drilling results, appear suitable for this style of extraction, hydrogeological pump testing is required for validation.

"We look forward to updating the market shortly with a resource estimate and details of first steps in assessing for commercial development."

Kapunda Copper Deposit

On the edge of the town of Kapunda (90 minutes north of Adelaide) is the historic Kapunda Copper mine, the site of the birthplace of the Australian commercial copper mining history. Copper was mined from Kapunda for more than 30 years, until 1877 with tributors subsequently working it through to 1912.

Figure 1. Kapunda Location Map

The Kapunda copper deposit has been comprehensively drill tested over many years (Ref Figures 2 &3), however a JORC compliant resource estimate has not been published. The protocol for estimation, and reporting, of resources with potential for exploitation via insitu-recovery has a number of additional steps compared with conventional mining and processing, and this procedure is currently in progress, with an outcome expected in the coming weeks.

Figure 2: Old Kapunda Mine Area - "Copper Range Limited Progress Report 14 December 2007"

Figure 3: Old Kapunda Mine Area cross section 8300N"Copper Range Limited Progress Report 14 December 2007"

In addition to the substantial body of evidence from copper assays, while gold assays were not routinely conducted, subsequent work has since suggested gold mineralisation in parts of the deposit, although the data supporting this is limited.

About Environmental Copper Recovery SA Pty Ltd ("ECR")

ECR is a newly formed Australian private limited company established by METGH Pty Ltd, a 100% owned subsidiary of Midas Environmental Technologies Pty Ltd (MET), and Mr Tennyson Wickham of corporate advisory group Fortis Ago, for the purpose of acquiring and developing the Kapunda resource (and potentially other projects of interest in the future). MET was founded in by a team of senior mining professionals with over 90 years' experience in mine development and operations to pursue project development opportunities for the recovery of gold and copper. The team's capabilities include an extensive background in South Australian uranium ISR production.

Over a period of 12 months, METGH has undertaken a detailed technical review and due diligence regarding the potential application of ISR at Kapunda as a low impact, environmentally friendly method of metal extraction. The group has also established relationships with several research organisations including the Australian government owned Commonwealth Scientific and Industrial Research Organisation ("CSIRO") who are developing new suites of environmentally benign "lixiviants" to extract and recover metals in low impact ISR operations.

ECR are proposing to test extraction via "in-situ recovery" (ISR) of the copper, and potentially also gold, followed by either SX/EW (solvent extraction / electrowin) or IX/EW (ion exchange / electrowin). If field recovery tests are successful, then a pre-feasibility study to project to assess the economic viability of producing copper (and possibly gold) at low capital and operating cost will be commissioned. Primary ore below the near surface oxide and chalcocite horizons is unlikely to be a mineable proposition until chemical recovery of those minerals becomes feasible and economic.