Exploration Update

Thor Mining PLC
25 September 2007



                                 THOR MINING PLC      

                           MOLYHIL EXPLORATION UPDATE


Dated: 25 September 2007



Thor Mining PLC ('the Company' or 'Thor'), AIM, ASX: 'THR' the specialist metals
company focused on advancing tungsten-molybdenum and uranium projects in the
Northern Territory of Australia, today releases an update on its Molyhil
Molybdenum-Tungsten Project 'Molyhil'.



Development Highlights



•  Optimisation studies based on the JORC compliant resource of 3.7 million 
   tonnes at 0.17% MoS2 and 0.34% WO3 indicate a potential mine life of in
   excess of 5 years at a revised processing rate of 400,000 tpa.

•  As a result of initial optimisation studies Thor has commissioned a review 
   of the CAPEX estimation completed as part of the DFS with instructions to
   make use of second-hand equipment purchased in 2006 and to factor in the 
   revised processing rate of 400,000 tpa.

•  New JORC compliant reserve and results of financial modelling targeted
   for completion by mid October 2007.

•  Off-take agreement with a major metals trader expected to be concluded
   shortly. Thor has short listed potential partners who are now awaiting the 
   final reserve and financial results.

•  Agreement has been reached with the Central Land Council and traditional 
   owners, a final meeting and signing ceremony is planned for October.

•  No objections received during the Public Environment Review period,
   the Mining Management Plan is being prepared and will be submitted in due
   course.

Exploration Highlights

•  Further exploration targets identified from recently completed IP
   geophysical survey.

•  Molyhil deposit itself remains open at depth with potential to increase 
   resources with deeper drilling.

•  New targets have been defined and it is planned that drilling of these
   would commence in 2008.



Development Summary

The Company advises that a new JORC compliant Ore Reserve estimate is currently
being prepared for Molyhil based on an updated block model used in initial pit
optimisation studies being completed by Thor's consultants, Peter O'Brien and
Associates.

The revised block model is based on the updated resource estimate completed last
month of 3.7 million tonnes at 0.51% combined WO3 and MoS2, which represented a
55% tonnage increase from the previously announced resource estimate. The metal
content of global resource totals 8.4 million pounds of molybdenum and 1.3
million mtu's of tungsten trioxide, reflecting the application of more
conservative grade estimation parameters.

Preliminary optimal pit shells suggest that in excess of 2.0 million tonnes is
available to a depth of 155m, i.e. approximately 60% of the revised resource is
expected to be amenable to open pit mining, with the revised block model
indicating a significant reduction to the previous indicative strip ratio.

Preliminary studies indicated an optimised pit of over 2.0 million tonnes. This
is based on current assumptions that included a processing rate of 400,000 tpa
and current molybdenum and tungsten prices discounted by 12% and 20%
respectively. Based on these assumptions Thor believes it can achieve revenue in
the region of $154 per tonne and operating costs of around $80 per tonne. These
are early estimates and subject to change dependant on completion of the mining
reserve and the optimisations currently underway.

A review of estimated capital expenditure for Molyhil is underway incorporating
the second-hand equipment purchased in late 2006. With the additional ore now
available, revised estimates are being prepared based on an increased plant
capacity of 400,000 tonnes per annum.

Once the new JORC compliant Ore Reserve and financial modelling has been
completed, the resource set outside of the optimised open pit will be reviewed
as part of an underground conceptual study.

Thor is continuing negotiations with a number of short listed parties, including
a leading international metals trader, regarding the completion of a suitable
off-take agreement.

Agreement has been reached with the Central Land Council and traditional owners
with a final meeting and signing ceremony planned for October. The signing of
the agreement deeds is the final step in granting of the three mining leases at
Molyhil.

All environmental clearances have been given, with no objections received during
the Public Environment Review period. The Mining Management Plan is being
prepared by K Lindbeck and Associates and will be submitted shortly. This is the
final hurdle to secure mining approvals.

Current prices for molybdenum and tungsten remain high and are predicted to
remain at these levels for several years, with metal inventories at all time
lows and demand continuing to exceed supply.

Exploration Progress

An extensive Induced Polarisation ('IP') Geophysical Survey was recently
completed at Molyhil, comprising six survey lines at spacings of between 100m
and 200m across the strike of the Molyhil pit. This survey has successfully
identified the Molyhil skarn mineralisation, confirming that IP is an effective
exploration tool for targeting similar skarns in and around the Molyhil deposit.

The completion of this IP survey represents the first stage in increasing the
regional exploration effort at Molyhil to target additional deposits.

Chargeable responses have been identified south, along strike beyond current
drilling and 500m to the west of the Molyhil mineralisation. A single traverse
completed 150m north of the existing pit identified a chargeable response 50m
below natural surface where there is no outcropping skarn identified in this
area and is clearly a priority target.

The Molyhil deposit itself remains open at depth with potential to increase
resources with deeper drilling. A plan to drill these deeper targets will be
finalised once results from the underground conceptual study are completed.
Drilling of these and regional targets will commence in 2008.

Commenting on the new developments, Thor Mining's Chief Executive Officer, Mr
John Young said: 'The preliminary pit optimisation result for Molyhil has
confirmed our view that, although grades have been reduced due to the more
conservative view taken with the revised resource calculation in July, the
project remains robust.'

'Our focus now is to vigorously pursue off-take and finance arrangements with
the shortlist of interested parties who are awaiting the remodelled financials.'

JORC Compliance

The information in this report that relates to exploration results, mineral
resources or ore reserves is based on information compiled by John Young, who is
a Member of The Australasian Institute of Mining and Metallurgy. John Young is a
director of Thor Mining PLC.  John Young 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 2004 Edition of the 'Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves'.  John Young consents
to the inclusion in the report of the matters based on his information in the
form and context in which it appears.



Enquiries:


John Young      + 61 (0)419 954 020     Thor Mining PLC              Chief Executive Officer

John Simpson    020 7512 0191           ARM Corporate Finance Ltd    Nominated Adviser

Leesa Peters    020 7429 6600           Conduit PR Limited           Public Relations
    or
Jos Simson      020 7429 6603

Nicholas Read   + 61 (0) 8 9388 1474    Read Corporate               Public Relations/Australia
                                                                                      




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