ASX Code: "THR"

23 January 2012

Company Announcements Office, ASX Securities Limited, 20, Bridge Street, Sydney, N.S.W. 2000 SIGNIFICANT IMPROVEMENT IN PROJECTED TUNGSTEN RECOVERY AT MOLYHIL (NT) PROJECT

A substantial 12% improvement in projected metallurgical recovery of tungsten for the Molyhil tungsten and molybdenum project ("Molyhil") in the Northern Territory, has been announced by Directors of Thor Mining PLC ("Thor" or the "Company") (AIM, ASX: THR, THRO).

Highlights

• Tungsten recovery now estimated at 75% compared with previous estimate of

67%

• Improvement derived from adding a flotation step to the tungsten recovery process after gravity separation

• Projected revenues at Molyhil improved by a further A$7.0 million p.a. over the life of the mine.

• Cost per metric tonne unit ("mtu") of tungsten produced reduced to US$109 after molybdenum bi-product credit

• Economics of the Molyhil project significantly enhanced.

Next steps at Molyhil

• Capital and operating cost changes to reflect the process change, to be confirmed

• Confirmatory test-work scheduled

• Revised resource estimate from 2011 drilling due later this month

• Updated ore reserve & mining plan calculation, reflecting revised resource and improved metallurgical recovery, due February 2012

• Updated feasibility study due February 2012

Figure 1: Thor Mining PLC project locations

THOR MINING PLC

Registered Numbers:

United Kingdom 05 276 414

Australia 121 117 673

Registered Office: Level 1

32 Richmond Road

KESWICK, SA, 5035

Australia

Ph: +61 8 7324 1935

Fx: +61 8 8351 5169

Email:

corporate@thormining.com

Website:

www.thormining.com

Enquiries: Mick Billing

Executive Chairman

Thor Mining PLC

+61 8 7324 1935

John Simpson Nominated Advisor Daniel Stewart & Co

+44 (0) 207 776 6550

ASX Listings: Shares: THR Options: THRO

AIM Listings: Shares: THR

Directors: Michael Billing Michael Ashton Gregory Durack Trevor Ireland

Key Projects:

• Molyhil (NT)

Tungsten, Molybdenum

• Dundas (WA)

Gold

• Spring Hill (NT)

Gold

Page | 1

ASX Code: "THR"

23 January 2012
Analyses by Molyhil project consultants, Nagrom & Co, PAH Australia, and Proteus EPCM Engineers, have concluded that the tungsten recovery at Molyhil should increase to 75% from 67% previously, by subjecting tailings from the tungsten gravity extraction process, to flotation. This tailings material will contain 27% of the total tungsten (WO