Interim Results

Thor Mining PLC 14 March 2007 THOR MINING PLC Interim report for the six months to 31 December 2006 Dated: 14 March 2007 Thor Mining PLC ('Thor' or the 'Company') the specialist metals company currently focussed on advancing tungsten-molybdenum and uranium projects in the Northern Territory of Australia, today announced its interim results for the period ended 31 December 2006. CEO Report The CEO presents his review for the period, together with the consolidated financial report for the six months ended 31 December 2006. Operating Review During the first half of the 2007 financial year, Thor has continued to progress its key asset, the 100% owned Molyhil Tungsten-Molybdenum project ('Molyhil') located in central Australia. The definitive feasibility study ('DFS') was completed as scheduled and confirmed that the project is technically and economically viable. The company completed the purchase of Hale Energy Limited, with over 3,000 sq km of Uranium exploration ground. This highly prospective group of Uranium exploration tenements is also located in central Australia. A vigorous and well funded exploration program began in October 2006, and is ongoing. Thor closed its Australian A$10.0 million initial public offering ('IPO') fully subscribed ahead of the dual listing of its shares on the Australian Stock Exchange ('ASX') in September 2006. MOLYHIL TUNGSTEN - MOLYBDENUM PROJECT Exploration A program of Deep Reverse Circulation was successful in identifying extensions to the Yacht Club and Southern ore zones. The program also included geotechnical and hydrogeological studies over areas designated for future mine development infrastructure. Three extra holes were completed beneath the Yacht Club and Southern ore bodies as a result of encouraging geology. A total of 10 holes were completed for 2,038m. The results have confirmed depth extensions at both the Yacht Club and Southern orebodies. Significant RC Results ( > 0.10%) Hole ID Depth From Depth To Width MoS2 WO3 TMRC24 130 131 1 < 0.10 0.33% 133 135 2 < 0.10 0.16% 139 147 8 0.16% 0.45% 149 155 6 0.63% 0.10% TMRC30 135 141 6 0.13% 0.37% 149 154 5 0.60% 0.22% 155 174 19 0.64% 0.11% inc 156 161 5 0.74% 0.30% 175 177 2 < 0.10% 0.19% 187 194 7 0.18% 0.12% Significant RC Results ( > 0.10%) (continued) Hole ID Depth From Depth To Width MoS2 WO3 TMRC31 154 156 2 0.09% 0.63% 158 159 1 0.10% 0.11% 170 189 19 0.33% 0.16% inc 173 180 7 0.57% 0.38% TMRC32 145 150 *5 0.38% 1.25% 150 151 1 0.16% < 0.10% 153 159 6 0.13% 0.16% 161 163 2 < 0.10% 0.42% 164 172 8 0.54% 0.34% 176 180 4 0.50% < 0.10% 185 186 1 < 0.10% 0.21% 187 188 1 0.10% < 0.10% 192 193 1 < 0.10% 0.19% 193 194 1 0.14% < 0.10% 208 211 3 0.61% 0.16% TMRC51 145 148 3 0.12% 0.37% 153 155 2 0.16% 0.42% 159 169 10 0.23% 0.88% inc 163 168 5 0.43% 1.61% 171 173 2 0.08% 0.23% 179 180 1 0.95% 1.30% *5m composite value Thor has started its 2007 exploration program at Molyhil. A 3,084m program of reverse circulation drilling has been designed to infill and extend beyond the proposed pit design outlined in the recently completed DFS. The objective of the program is to increase the reserve and resources and ultimately extend the proposed life of mine at Molyhil. Drilling is designed to infill up dip zones of Hanging Wall mineralization discovered in last year's program, as well as drill extensions to several of the deeper zones below the Southern ore body. Thor's development of Molyhil is being conducted in parallel with its Northern Territory uranium exploration programs due to begin in late March 2007 DFS. The metallurgical testwork program was successfully completed as part of the DFS. This allowed the final concentrate volumes and specifications to be calculated. The production estimates and concentrate specifications exceeded the initial scoping study, confirming potential production of approximately 100,000 mtu of tungsten oxide per annum and 1,000,000 lbs of Mo per annum. The DFS confirmed that the project is technically and economically viable, with strong financial returns and a rapid capital payback. Significantly, the DFS indicates that a capital payback period of less than 7 months can be achieved with the stage 1 pit, with the operation generating a positive pre-royalty cash flow EBIT of A$117 million over its initial 4-year life, using a base case sale price of US$20/lb of molybdenum and US$204/mtu for tungsten. At these base case prices the project has a net present value ('NPV') of A$88 million and an internal rate of return ('IRR') of 111%, using a discount rate of 8%. OTHER Product Marketing Penfold Marketing Pty Ltd ('Penfold') (www.penfoldlimited.com) have been exclusively mandated until 15 March 2007 to promote and market Molyhil to secure funding and in due course be appointed as the company's worldwide agent to secure an offtake agreement by the 15th of March 2007. Penfold are a specialist metals marketing and business investment company based in Australia with offices in Adelaide and Shanghai. Over the last decade Penfold has developed many new China business opportunities sourced from its global customer base. Penfold also has established relationships with mining and metals operations located elsewhere in Asia, including Japan, South Korea, Malaysia and India. The company has included a list of interested parties as part of the mandate and will contact them in due course. Environmental and Notice of Intent ('NOI') Keith Lindbeck and Associates have been commissioned to complete the NOI and the environmental studies. A draft version of the NOI was submitted to the NT Mines Department for review. Negotiation of Mining Agreement Formation of a development review committee has commenced for the negotiations with the Central Land Council with the aim to complete a mining agreement in parallel with the NOI. Initial meetings with the traditional owners are planned, with the aim to complete the agreement by the end of March 2007. Capital Cost Estimation Thor has sourced second-hand crushing and process equipment to accelerate the timetable and reduce capital costs. They have also identified all long lead items and have completed all equipment lists. This work is on-going. URANIUM EXPLORATION Uranium exploration has begun with reconnaissance work at Harts Range and the completeion of a major HoistEM survey at Hale River and Plenty Highway Projects. Harts Range The Harts Range uranium prospect located approximately 200km east-northeast of Alice Springs in the Arunta Province of the Northern Territory. The project includes six tenements EL24827, EL24734, EL24735, EL24736, EL24765 and A24766. Reconnaissance sampling of the Harts Range tenement area was completed during October, with several areas traversed. The main objective of the sampling program was to identify known prospects and determine optimal access routes and logistics for follow-up exploration in 2007. Eleven rock chips were taken on two out of the six granted tenements. Analysis was completed for 39 elements, with the following results returned: SAMPLE Ba Ce Cs Ga Nb Pb Rb Th U Y Zn Zr ID HR001 627 55.7 0.46 36.4 5.2 67 92.7 28.4 7.61 103.5 35 82 HR002 101.5 35 0.13 50.8 3.2 120 12.5 9.04 6.71 115 0.52% 71 HR003 122.5 71.2 0.11 36.1 0.4 92 9.1 35.5 7.19 57.9 45 59 HR004 137 114 0.19 45.2 16.7 20 19.2 8.49 6.65 95.7 13 189 HR005 86 103.5 0.03 52.3 9.5 39 3.1 19.55 6.36 60.5 19 274 HR006 22.3 19.7 0.07 27.2 4.2 50 2 3.55 16.45 21.7 99 86 HR007 862 173.5 3.84 15.4 10.8 1.62% 100.5 684 31.60% > 10000 48 923 HR008 1395 90.3 5.23 21.3 14.5 50 197.5 5.52 227 36 90 457 HR009 1225 89.3 5.41 22.6 13.6 33 153 5.5 120.5 38.3 91 369 HR010 185.5 69.8 1.16 13.1 3.5 60 81.9 50.3 210 117.5 12 10 HR011 240 12.5 1.43 17.3 647 294 84 50.1 0.61% 245 9 29 All units are in ppm unless otherwise stated > 10,000 ppm - beyond detection limits Six samples HR1-6 were taken in the Eagle Beak area on EL24827. Strong epidote alteration was noted related to shearing of altered felsic rocks, although no significant uranium values were returned. Samples HR1-3 were elevated in strontium and sample HR2 returned a value in excess of 0.52% Zn. Five samples were taken at the Ryoma and Casper prospects on EL24735, with results confirming the prospectivity of this area returning elevated uranium values ranging from 121ppm to 227ppm U. Results were also elevated in rare earth elements ('REE') such as Yttrium and Zirconium. Sample HR8 also returned up to 1.62% Pb. The results included a single sample result of 31.6% U. This hand-picked sample contained a significant portion of visible uraninite, and is not representative of the complete zone of shearing noted in mafic amphibolites. Results were also elevated in REE, which is often associated with late-stage intrusives. Significantly, a number of large pegmatite bodies are located within the Harts Range project. The result of 0.61% U from the Casper Prospect confirms this, with the sample also anomalous in Nb and Cs. Work to date specifically in the region of the Ryoma and Casper Prospects indicates that sporadic high uranium grades occur along NW trending structural corridors, suggesting a vein-type model for mineralisation such as that at Schwartzwalder in Colorado (USA). Mineralisation here occurs in numerous lenses associated with a major shear fault network and along contacts between mica schist and gneissic rocks. They occur generally in clusters and are of smaller tonnage but high in grade. In light of these encouraging initial results, a second exploration program further ground surveys were taken at Harts Range and Bundey River. A scintillometer orientation survey was started late November 2006. Scintillometer readings were taken at various locations including several prospects with historic uranium exploration results. In total, fourteen samples were collected. Harts Range - EL24736 At the Haddock Creek and Daicos prospects, a number of sub-parallel pegmatites were surveyed, with a maximum count of 19,000 cps. Four samples were taken within EL24736, with one 1.5kg sample returning a very high uranium result of 8.87% U with associated REE, tantalum, niobium, and yttrium. Samples HR12, HR14 and HR15 were also anomalous, with results ranging from 146ppm to 0.27% uranium. Further Haddock-style anomalies have been identified at points along a stratigraphic arc extending north. Approximately 12 km of prospective strike length has been identified representing potential host extensions or repetitions of epidosite-pegmatoid layers. SAMPLE EAST NORTH PROSPECT CPS COMMENTS Th(ppm) U(ppm) ID (GDA94) (GDA94) HR 12 513123 7445215 Haddock 1200-1800 Pegmatite. 25.4 158.5 Creek Highly Anomalous point source. HR 13 516902 7439841 Daicos 6000-7000 Qtz Pegmatite. 0.71% 8.87% Anomalous zone 18m by 20-50cm wide at contact. HR 14 516902 7439841 Daicos 6000-7000 Qtz Pegmatite. Fault zone.? 99.5 925 Anomalous parallel zone to the south. HR 15 516842 7439565 Daicos 1500 Large Pegmatite above 245 0.27% HR13-14 Max 19,000cps. All units are in ppm unless otherwise stated Harts Range - EL24765 Five samples (HR16-HR20) were taken from the Garnet Prospect, located on adjacent tenement EL24765, with background readings at this locality ranging from 450-6600cps. Samples from this area were taken here in a medium-to-fine grained altered pegmatite, rich in garnet. The results were very encouraging with two samples returning elevated uranium values of 0.17% and 0.26%. PNC mapped this area in 1993 and determined that the strongest radioactivity occurs where the pegmatite has been more extensively altered to garnet. Historic PNC assays at this prospect ranged between 18-2,900ppm U, 100-4,000ppm Y and 100-2,600ppm Nb. Garnet contaminated pegmatite returned the highest assays while garnet-quartz-biotite alteration returned lower grades. SAMPLE EAST NORTH PROSPECT CPS COMMENTS Th(ppm) U(ppm) ID (GDA94) (GDA94) HR 16 514061 7429930 Garnet 450-6600 Altered Pegmatite Rich in garnet, 197 0.17% with skarn rafts in pegmatite. HR 17 514061 7429930 Garnet 450-6600 Altered Pegmatite Rich in garnet, 244 0.26% with skarn rafts in pegmatite. HR 18 514061 7429930 Garnet 450-6600 Altered Pegmatite Rich in garnet, 18.6 141 with skarn rafts in pegmatite. HR 19 514807 7429132 Ant 260 Anomalous zone associated with 20.5 34.4 silica-epidote veining. Past digging in Creek Bed. HR 20 513300 7429415 Near 2400 Single Anomaly, in thin (60-80cm) 7.48 87.8 Goanna Peg dyke, cross cutting bedded mafic metasediments (bio-qtz-fdsp). All units are in ppm unless otherwise stated Harts Range - EL24734 The Harts Range project area lies on the eastern margin of the Entia Dome. The Entia Gneiss (Harts Range Group) forms the core of the Entia Dome, which is located on the western part of the exploration license area. Regional exploration resulted in the identification of a single pegmatite some 6.3km in length and 50m wide at Mt Mary. Two rock chips taken from 'hot spots' in this area returned elevated uranium values ranging from 107 to 246ppm. A second pegmatite, which also has extensive strike (2km) and width (63m), has been identified to the north-east, but has not been sampled as yet. Further work is recommended in this area, given that these larger scale intrusives are generally similar to the pegmatites mined at the Rossing Mine in Namibia. This type of deposit generally has lower grades (0.05% U) and high tonnages. Detailed mapping and radiometric surveys of these structures and pegmatites is essential in order to develop an exploration model which will lead to an economic uranium discovery in the Harts Range. Mt Mary has had little historic exploration and will be a priority target in the Company's next field program. Ongoing exploration will also cover the SNAF and Kelly Prospects, located to the north and south of Mt Mary. Historic rock chip sampling by PNC at these prospects returned very high-grade uranium assays ranging from 550-1,580 ppm U. The mineralisation at these prospects is believed to be an intrusive-style, similar to the uranium deposits occurring in the Olary Province in South Australia, which are associated with mesoproterozoic intrusives. One of these, Radium Hill, has a number of uranium-rare earth bodies occurring in narrow, steeply-dipping pegmatitic veins in shear zones within quartzo-feldspathic gneiss. SAMPLE EAST NORTH PROSPECT CPS COMMENTS Th(ppm) U(ppm) ID (GDA94) (GDA94) HR 23 532703 7452531 Mt Mary 700-1500 Large Pegmatite 197 47.9 contact zone with biotite-gneissic rock. HR 24 532488 7452386 Mt Mary 450-2500 Signs of migmatite, 10.75 246 and partly melted bio-gneissic zenoliths. HR 25 532194 7452330 Mt Mary 450-2500 Similar 13.25 107.5 All units are in ppm unless otherwise stated Bundey River - EL25378 Three radiometric anomalies have been identified in the eastern part of the Bundey River Project area from airborne radiometric survey compiled by the Northern Territory Geological Survey onto a 1:250,000 map. Two samples were taken from this area with disappointing uranium results. While no calcrete samples were able to be taken, a consistently high scintillometer count was taken over the main drainage channel. Sampling returned an anomalous thorium value in exposed lateritic remnants, confirming the potential for tertiary basin and drainage hosted uranium. This area requires investigation by a small drilling rig mounted on a four wheel drive vehicle. SAMPLE EAST NORTH PROSPECT CPS COMMENTS Th(ppm) U(ppm) ID (GDA94) (GDA94) HR 21 514060 7490850 Bundey River 350-900 Lateritised acid 34.1 21.5 volcanic? High background (350-900cps). HR 22 514060 7490850 Bundey River 350-900 Couldn't find source 565 9.32 of anomaly (more active than HR 21) All units are in ppm unless otherwise stated Hale River-Plenty Highway Projects The first phase of a comprehensive uranium exploration program has been completed. The first phase of the program comprised a helicopter borne HoistE survey covering the Company's Hale River and Plenty Highway tenements, which cover some 1,200 sq-km of tertiary basin sediments and palaeo-drainage channels prospective for sandstone and roll-front style uranium deposits. The survey was conducted over the northern section of the garden sub-basin (Hale River) and the Waite Basin (Plenty Highway). These basins are believed to hold the highest promise for a new uranium discovery. The airborne surveys were completed on 200m and 400m line spacings respectively. The preliminary interpretation of plenty highway has been received from modelling of the data. A total of 126 traverses were completed for 1,800 line kilometers. A HoistEM survey maps the palaeo-topography of the crystalline basement due to significant electrical contrast between overlying unconsolidated sediments and the basement rocks. This interpretation has identified three major palaeo-channels running in an east-west direction. Several areas have been highlighted which are believed to contain significant carbonaceous matter, the essential ingredient for the formation of Roll Front uranium deposits. CORPORATE Capital Raising and Listing on ASX During the half year, Thor received shareholder approval to proceed with the acquisition of Hale Energy. Shareholder approval was also received for a 1-for-3 capital consolidation and an issue to existing shareholders of one warrant for every two post-consolidation shares held ahead of the dual listing of Thor's shares on the ASX via a A$10m IPO, which closed fully subscribed. The shares listed on the ASX on 27 September 2007. The consideration for the acquisition of Hale Energy was the issue of 16 million fully-paid shares and 8.5 million warrants. The funds raised from the IPO are being used to pursue an aggressive development strategy focused on the recent completion of the DFS for the Molyhil Project. Appointment of Exploration Manager Thor appointed Mr Stuart Till as Exploration Manager. Mr Till is a West Australian geologist with 20 years exploration and development experience in a variety of geological terrains and commodities and for the last 10 years has held a senior role. He brings to Thor a pragmatic hands-on approach to modern exploration with a broad knowledge base including database and computing skills, field logistics, equipment maintenance in remote terrains, tenement management and a thorough understanding of drilling equipment. Stuart's input will allow Thor to manage a cost effective, efficient exploration department. Yours faithfully THOR MINING PLC John A Young Chief Executive Officer Independent Review Report to Thor Mining PLC Introduction We have been instructed by the Company to review the financial information set out on pages 9 to 12 and we have read the other information contained in the half-yearly report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. This report is made solely to the Company in accordance with guidance contained in Bulletin 1999/4 'Review of Half-yearly financial information' issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our work, for this report, or for the conclusions we have formed. Directors' responsibilities The half-yearly report, including the financial information contained therein, is the responsibility of, and has been approved by the Directors. The Directors are responsible for preparing the half-yearly report in accordance with the rules of the London Stock Exchange for companies trading securities on AIM which require that the half-yearly report be presented and prepared in a form consistent with that which will be adopted in the Company's annual accounts having regard to the accounting standards applicable to such annual accounts. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board for use in the United Kingdom by auditors of fully listed companies. A review consists principally of making enquiries of the Directors and applying analytical procedures to the financial information and underlying financial data and based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with United Kingdom Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 31st December 2006. CHAPMAN DAVIS LLP Chartered Accountants 2 Chapel Court London SE1 1HH Consolidated Income Statement For the 6 months ended 31 December 2006 Notes £'000 £'000 £'000 Six months ended 31 Six months ended Year ended December 2006 31 December 2005 (Unaudited) (Unaudited) 30 June 2006 (Audited) Administrative expenses (130) (105) (137) Corporate expenses (671) (198) (568) Other expenses - - (19) OPERATING LOSS (801) (303) (724) Interest receivable 19 20 33 Other income - - 7 LOSS BEFORE TAXATION (782) (283) (684) Taxation 3 - - - LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (782) (283) (684) Loss per share: Basic 5 (0.80)p (0.47)p (1.13)p Consolidated Statement of Total Recognised Gains and Losses For the 6 months ended 31 December 2006 Notes £'000 £'000 £'000 Six months ended 31 Six months ended 31 Year ending December 2006 December 2005 30 June 2006 (Unaudited) (Unaudited) (Audited) Loss for the period (782) (283) (684) Unrealised surplus on foreign exchange 37 46 59 Total recognised gains and losses related to the period (736) (246) (625) Consolidated Balance Sheet At 31 December 2006 Notes £'000 £'000 £'000 31 December 2006 31 December 2005 30 June 2006 (Unaudited) (Unaudited) (Audited) NON-CURRENT ASSETS Intangible assets - deferred exploration costs 3,582 1,281 1,445 Mine development costs 231 - - Property and equipment 24 10 9 TOTAL NON-CURRENT ASSETS 3,837 1,291 1,454 CURRENT ASSETS Cash and cash equivalents 2,603 751 484 Trade and other receivables 94 46 32 Other 14 10 19 TOTAL CURRENT ASSETS 2,711 807 535 TOTAL ASSETS 6,548 2,098 1,989 CURRENT LIABILITIES Trade and other payables (60) (83) (88) TOTAL CURRENT LIABILITIES (60) (83) (88) NET ASSETS 6,488 2,015 1,901 EQUITY Issued share capital 390 182 192 Share premium 5,410 1,750 1,928 Merger reserve 1,634 405 405 Foreign exchange reserve 106 60 59 Option revaluation reserve 513 - 100 Retained losses (1,565) (382) (783) TOTAL EQUITY 6 6,488 2,015 1,901 Consolidated Cash Flow Statement For the 6 months ended 31 December 2006 £'000 £'000 £'000 Six months ended Six months ended Year ended 31 December 2006 31 December 2005 (Unaudited) (Unaudited) 30 June 2006 (Audited) CASH FLOWS FROM OPERATING ACTIVITIES Net cash from operating activities (449) (215) (476) Interest received 19 20 33 Sundry income - - 7 Net cash used in operating activities (430) (195) (436) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of plant and equipment (19) (10) (12) Payments for exploration expenditure (833) (548) (760) Payments for mine development expenditure (231) - - Net cash used in investing activities (1,083) (558) (772) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds on share issue 3,991 - 300 Share issue expenses (359) - (112) Net cash from financing activities 3,632 - 188 INCREASE/(DECREASE) IN CASH IN THE PERIOD 2,119 (753) (1,020) Cash at beginning of period 484 1,504 1,504 Cash at end of period 2,603 751 484 Notes to the Half-yearly Report For the 6 months ending 31 December 2006 1. BASIS OF PREPERATION (a) Presentation of Half-yearly results This half-yearly report was approved by the Directors on 1 March 2007. The half-yearly results have not been audited, but were the subject of an independent review carried out by the Company's auditors, Chapman Davis LLP. Their review confirmed that the figures were prepared using applicable accounting policies and practices consistent with those adopted in the 2006 annual report. The financial information contained in this half-yearly report does not constitute statutory accounts as defined by Section 240 of the Companies Act 1985. (b) Statement of Compliance This half-yearly report has been prepared in accordance with International Financial Reporting Standards, including IAS 34 'Half-yearly Financial Statements', and complies with the listing requirements for companies trading securities on the Alternative Investment Market. The half-yearly report has been prepared under the historical cost convention. 2. ACCOUNTING POLICIES (a) Basis of consolidation The consolidated financial statements comprise the financial statements of Thor Mining PLC and its controlled entities. The financial statements of controlled entities are included in the consolidated financial statements from the date control commences until the date control ceases. The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All intercompany balances and transactions have been eliminated in full. (b) Exploration and development expenditure Exploration, evaluation and development expenditure incurred as accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable reserves. Accumulated costs in relation to an abandoned area are written off in full against the profit in the year in which the decision to abandon the area is made. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. Restoration, rehabilitation and environmental costs necessitated by exploration and evaluation activities are expensed as incurred and treated as exploration and evaluation expenditure. (c) Deferred taxation Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are recognised for all taxable temporary differences: (i) Except where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and at the time of transaction, affects neither the accounting profit nor taxable profit or loss; and (ii) In respect of taxable temporary differences associated with investments in subsidiaries, except where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except: (i) When the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or (ii) When the deductible temporary difference is associated with investments in subsidiaries, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilised. The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority. (d) Foreign currencies Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account. On consolidation of a foreign operation, assets and liabilities are translated at the balance sheet rates, income and expenses are translated at rates ruling at the transaction date. Exchange differences on consolidation are taken to the foreign exchange reserve account. (e) Share based payments For equity settled share based payments the transactions are measured at the fair value of the equity instruments granted at the date of grant. No further re-measurement is conducted for subsequent movements in the fair value. 3. TAXATION No taxation has been provided due to losses in the period. 4. DIVIDENDS The Directors do not recommend the payment of a dividend. 5. LOSS PER SHARE Six months ending Six months ending Year ending 30 June 2006 (Audited) 31 December 2006 31 December 2005 (Unaudited) (Unaudited) £'000 £'000 £'000 Basic loss per share for the period Loss (782) (283) (684) Weighted average number of shares 97,250,362 60,558,333 60,795,776 Loss per share - pence (0.80) (0.47) (1.13) Prior period comparatives have been restated to reflect the impact of the current period 1:3 share consolidation. No diluted loss per share is presented as the effect of exercise of outstanding options is to decrease the loss per share. 6. RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS Share Share Profit Other Total capital premium & loss reserves account account £'000 £'000 £'000 £'000 £'000 At 1 July 2006 192 1,928 (783) 564 1,901 Share issue 198 3,482 - 1,229 4,909 Unrealised foreign exchange - - - 47 47 gain Option revaluation reserve - - - 413 413 Loss for the period - - (782) - (782) At 31 December 2006 390 5,410 (1,565) 2,253 6,488 On 27 September 2006, Thor Mining PLC closed it's A$10,000,000 (50,000,000 shares) initial public offering fully subscribed, ahead of its dual listing on the Australian Stock Exchange. On this date, Thor Mining PLC also issued 16,000,000 shares to acquire 100% of the voting shares in Hale Energy Limited as detailed in note 7. Prior to issuing these new shares there was a 1:3 consolidation of the existing shares on issue. The movements in issued share capital during the period were as follows: 31 December 2006 30 June 2006 £'000 £'000 Issued and paid-up share capital Ordinary shares 390 192 Number £'000 Movements in shares on issue Balance as at 1 July 2006 191,675,000 192 1 for 3 share consolidation (127,783,334) - Share issue 66,000,000 198 Balance as at 31 December 2006 129,891,666 390 7. BUSINESS COMBINATION On 27 September 2006, Thor Mining PLC acquired 100% of the voting shares of Hale Energy Limited, a non-listed company incorporated in Australia. Hale Energy Limited operates in mineral exploration and owns over 3,000 sq km of uranium exploration ground, located in central Australia. The total cost of the combination was £1,277,120 and comprised of an issue of equity instruments. The group issued 16,000,000 ordinary shares with a fair value of £0.0798 each, based on the quoted price of the shares of Thor Mining PLC at the date of the exchange, and 8,500,000 warrants, exercisable at 8 pence on or before 15 June 2009. The fair value of the identifiable assets and liabilities of Hale Energy Limited as at the date of acquisition are: Recognised on Carrying value acquisition £'000 £'000 Deferred exploration costs 1,339 238 Trade and other payables (62) (62) Fair value of identifiable net assets 1,277 176 Cost of acquisition: Shares issued, at fair value 1,277 Cash in/(out)flow on acquisition: Net cash acquired with the subsidiary - Cash Paid - Net cash in/(out)flow - From the date of acquisition, Hale Energy Limited has contributed losses of £11,000 to the net loss of the group. Thor Mining PLC Company Information Directors John W Barr (Executive Chairman) John A Young (Chief Executive Officer) P Mark Smyth (Non-executive Director) Gregory M Durack (Non-executive Director) Secretary Stephen F Ronaldson (United Kingdom) Damian P Delaney (Australia) Registered office 3rd Floor 55 Gower Street London WC1E 6HQ Australian office c/o Sunsphere Pty Ltd Level 1 282 Rokeby Road Subiaco Western Australia 6008 Telephone: + 618 9327 0900 Fax: + 618 9327 0901 Shareholder Enquires Damian P Delaney dpd@thormining.com Shareholders are encouraged to register on the Company's website to receive updates by email. Web site: www.thormining.com Nominated Adviser and ARM Corporate Finance Limited Broker London Telephone: + 44 (0) 20 7512 0191 Fax: + 44 (0) 20 7512 0747 Auditors Chapman Davis LLP London Solicitors Ronaldsons London Hardy Bowen Australia Registrar Computershare Investor Services plc PO Box 82 The Pavilions Bridgwater Road Bristol BS99 7NH Telephone: + 44 (0) 870 702 0002 Fax: + 44 (0) 870 703 6116 Registered number 05276414 Enquiries: John Young + 61 (0)419 954 020 Thor Mining PLC Chief Executive Officer John Simpson 020 7512 0191 ARM Corporate Finance Nominated Adviser Limited Leesa Peters 020 7429 6600 Conduit PR Limited Public Relations/UK or 020 7429 6603 Jos Simson Nicolas Read + 61 (0) 8 9388 1474 Jan Hope & Partners Public Relations/ Australia 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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