Final Results

Thor Mining PLC 07 August 2006 THOR MINING PLC Preliminary Results for the period ended 30 June 2006 Dated: 7 August 2006 Thor Mining PLC ('Thor' or the 'Company') the specialist metals company currently focussed on advancing molybdenum and tungsten projects in the Northern Territory of Australia announces its preliminary results for the period ended 30 June 2006. Executive Chairman's operating and financial review Thor is a mineral exploration and development company focused on advancing its specialty metals projects. Thor assets include projects situated in the southern section of Australia's Northern Territory. The most developed, the Molyhil Project, contains the Molyhil tungsten-molybdenum deposit. Thor is seeking to acquire uranium exploration projects in the central region of Australia's Northern Territory, the Hale River, the Plenty Highway, the Bundey River, the Harts Range, and the Curtis Pound Projects. Thor's other project, the Hatches Creek Project, is prospective for both tungsten and gold. Thor will then have two groups of projects, tungsten - molybdenum and uranium. Tungsten - molybdenum The Molyhil deposit occurs in two adjacent skarn bodies that contain outcropping molybdenite and scheelite mineralisation. Since mid 2004 it has been the subject of systematic test-work: comprised of geophysical exploration, diamond and RC drilling programmes, surface and underground bulk sampling, metallurgical test-work and geotechnical studies. Subsequent to the 2005/6 bulk sampling programme, Continental Resource Management Pty Ltd estimated resources for the deposit. The updated 2006 Uncut Mineral Resource is presented below: Tonnes WO(3) % MoS(2) % Combined % Measured 370,000 0.52 0.32 0.85 Indicated 1,750,000 0.52 0.26 0.77 Inferred 250,000 0.70 0.20 0.90 TOTAL 2,380,000 0.54 0.26 0.80 Note: Totals may differ from sum of individual items due to rounding. This resource was used as the foundation of the Scoping Study, that was completed during the year. That was completed during the year. Thor has now commissioned a Definitive Feasibility Study which is due for completion in the last quarter of 2006 and proposes to begin exploration for tungsten and gold within its Hatches Creek Project. Uranium Thor will shortly hold a shareholders meeting to consider the acquisition of Hale Energy Limited which owns uranium projects as detailed below. The Hale River Project covers 160 km(2) of Tertiary basin sediments. These sediments are prospective for palaeochannel roll-front type uranium deposits. Previous exploration of the project area, undertaken between 1979 and 1981, delineated a redox front within sands containing anomalous uranium. The Plenty Highway and Bundey River Projects contain about 1,200km(2) of Tertiary sediments, which cover an internally drained area within the Proterozoic Arunta Block. The sediments have the potential to host palaeochannel uranium mineralisation. The Harts Range Project covers 362km(2) of the Proterozoic Harts Range Metamorphic Complex. The tenements were explored for uranium between 1992 and 1995 following the flying of airborne radiometric and magnetic surveys. Numerous occurrences of uranium mineralisation were found, many of which were associated with alteration along structural breaks or contacts. Further north, the Curtis Pound Project, situated over Proterozoic rocks of the Tennant Inlier, contains a number of identified radiometric anomalies. Operating review During the year £760,281 was spent on Molyhil being £647,819 on exploration and £112,462 on the Scoping Study. This compares with the respective budgets of £410,000 and £200,000. The exploration program included sinking three shafts and crosscuts to enable bulk samples to be extracted to evaluate the true head grade and mineralogical characteristics of the Molyhil deposit. The results were utilised to generate a new JORC Code compliant resource and provide the final resource for the Scoping Study. The results of the Scoping Study were released in early 2006. The highlights of the outcomes for the Molyhil Project Scoping Study included: • 300,000 tonne per annum open pit mining operation for the initial 4 years production. • Forecasted cash operating cost of AUS$80 per tonne. • Estimated capital cost of AUS$20M. Based on the above and other outcomes and assumptions the Scoping Study indicates that the Molyhil Project could have a positive pre tax operational cash flow of up to AUS$140m over a 4 year mine life. As a result of the completion of the Scoping Study, the Directors of Thor decided to proceed immediately with the Definitive Feasibility Study. As part of this study, additional drilling will be undertaken. The objectives of this drilling include: • Selected deep drilling to test below the proposed open pit. • Geotechnical holes, for the proposed tailings dam and open pit. • Borefield set up. The Definitive Feasibility Study is being undertaken to complete further studies and drilling and do a sensitivity analysis to verify all of the outcomes and assumptions identified during the Scoping Study. Until the Definitive Feasibility Study has been completed Thor cannot make any representation or warranty (express or implied) as to the accuracy, reliability, reasonableness or completeness of the Scoping Study outcomes and assumptions. In addition to the work at Molyhil, low level airborne photography and magnetic surveys have been flown at Hatches Creek to enable an exploration program for 2006/07 to be finalised. This program will be submitted to the traditional owners for approval and is anticipated to result in an agreement being executed and thereafter the grant of title. At Thring Creek a detailed ground magnetic survey was undertaken. The agreement with the Traditional Owners was executed, and drilling was undertaken. No significant mineralisation was located. Finally, the Board welcomes Mr John Young to the position of Chief Executive Officer. John will be primarily responsible for driving the Company forward and we welcome his involvement. John W Barr Executive Chairman Consolidated Income Statement for the year ended 30 June 2006 Consolidated Company 2006 2005 2006 2005 £'000 £'000 £'000 £'000 Administrative expenses (137) (99) (10) (97) Corporate expenses (568) - (432) - Other expenses (19) - - - Operating loss (724) (99) (442) (97) - - Interest receivable 33 - - - Other income 7 - - - Loss before tax (684) (99) (442) (97) Tax on loss on ordinary activities - - - - Loss for the financial year (684) (99) (442) (97) Loss per share - basic (0.36)p (0.15)p Continuing operations All items relate to continuing operations The comparatives are for the period 3 November 2004 to 30 June 2005. Group Statement of Recognised Income and Expense for the year ended 30 June 2006 Consolidated Company 2006 2005 2006 2005 £'000 £'000 £'000 £'000 Loss for the period (684) (99) (442) (97) Unrealised surplus on foreign exchange 59 23 - - Total recognised gains and losses related to the year (625) (76) (442) (97) Balance Sheets At 30 June 2006 Consolidated Consolidated Company Company 2006 2005 2006 2005 £'000 £'000 £'000 £'000 ASSETS Non-current assets Intangible assets 1,445 685 - - Investments - - 700 700 Loan Sunsphere Pty Ltd - - 1,100 1,368 Plant and equipment 9 - - - Total non-current assets 1,454 685 1,800 2,068 Current assets Cash and cash equivalents 484 1,504 268 179 Trade & other receivables 32 79 12 - Other 19 - 19 - Total current assets 535 1,583 299 179 Total assets 1,989 2,268 2,099 2,247 LIABILITIES Current liabilities Trade and other payables (88) (7) (13) (7) Total liabilities (88) (7) (13) (7) Net assets 1,901 2,261 2,086 2,240 Equity Issued share capital 192 182 192 182 Share premium 1,928 1,750 1,928 1,750 Foreign exchange reserve 59 23 - - Merger reserve 405 405 405 405 Option revaluation reserve 100 - 100 - Retained losses (783) (99) (539) (97) Total equity 1,901 2,261 2,086 2,240 Consolidated Cash Flow Statement for the year ended 30 June 2006 CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2006 2006 2005 £'000 £'000 CASH FLOWS FROM OPERATING ACTIVITIES Net cash from Operating activities (476) (90) Interest received 33 - Sundry income 7 - Net cash (used in) operating activities (436) (90) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment (12) - Payments for Exploration& Development Expenditure (760) (293) Net cash (used in) investing activities (772) (293) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds on share issue 300 1,887 Share issue expenses (112) - Net cash received financing activities 188 1,887 Net increase/(decrease) in cash held (1,020) 1,504 Cash at beginning of financial year 1,504 - Cash at end of financial year 484 1,504 The accompanying notes form part of these financial statements. Reconciliation of operating loss to net cash inflow from operating activities 2006 2005 £'000 £'000 Reconciliation of Cash Flow from Operations with Profit from Ordinary Activities after Income Tax Loss after income tax (684) (99) Non-cash flows in profit Depreciation 3 - Option issue revaluation 100 - Net cash provided by operating activities before changes in assets and (581) (99) liabilities Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries (Increase)/Decrease in trade and other receivables 28 (3) Increase/(Decrease) in trade and other payables 81 (11) Unrealised exchange gain 36 23 Net cash (used in) operating activities (436) (90) Reconciliation of net cash flow to movement in net debt 2006 2005 £'000 £'000 (Decrease)/Increase in cash in the year (1,020) 1,504 Cash at beginning of financial year 1,504 - Cash at end of financial year 484 1,504 Analysis of changes in net debt At 1 July 2005 Cash flows Non-cash changes 30 June 2006 £'000 £'000 £'000 £'000 Cash at bank and in hand 1,504 (1,020) - 484 Notes to the Financial Statements for the period year to 30 June 2006 1. The Directors are not recommending the payment of an ordinary share dividend. 2. Loss per share on the net basis is calculated on a loss on ordinary activities after taxation of £684,000 (2005:£99,000) and on 182,387,329 (2005: 64,360,000) ordinary shares being the weighted average number of shares in issue and ranking for dividend during the period. No diluted loss per share is presented as the effect of exercise of outstanding options is to decrease the loss per share. 3. The financial information set out in this Preliminary announcement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. Results for the period ended 30 June 2006 are abridged from the 2006 Annual Report and Accounts, which received an unqualified auditor's report and will be filed with the Registrar of Companies following the Annual General Meeting on 5 September 2006. 4. The Annual Report will be posted to shareholders week commencing on 7 August 2006. Further copies will be available from the Company's registered office: 3rd Floor, 55 Gower Street, London WC1E 6HQ. 5. The Annual General Meeting of the Company will be held at the Conrad Hotel, Chelsea Harbour, London SW10 0XG England, on Tuesday 5 September 2006 at 9.30 a.m. Enquiries: John W Barr + 61 418 912 885 Thor Mining PLC Executive Chairman John Simpson 020 7512 0191 ARM Corporate Finance Ltd Nominated Adviser Abigail Singleton 020 7429 6606 Conduit PR Public Relations or 07739 461 061 Updates on the Company's activities are regularly posted on Thor's website www.thormining.com, which includes a facility to register to receive these updates by email. This information is provided by RNS The company news service from the London Stock Exchange

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