Exploration Update

Thor Mining PLC
25 October 2006



                                THOR MINING PLC


Exploration Update - Molyhil upgraded following completion of metallurgical test
                                      work


Dated: 25 October 2006


Thor Mining PLC ('Thor') the specialist metals company currently focussed on
advancing tungsten-molybdenum and uranium projects in the Northern Territory of
Australia, today announced completion of the key metallurgical test work phase
of the definitive feasibility study for its 100%-owned Molyhil
Tungsten-Molybdenum Project ('Molyhil') in the Northern Territory of Australia.
The delivery of final concentrate specifications from this test work program
will enable it to progress negotiations for an off-take agreement and financing
package for Molyhil.


Highlights


•   Metallurgical test work program successfully completed as part of
    definitive feasibility study on the Molyhil Tungsten-Molybdenum Project;

•   Production estimates and concentrate specifications exceed initial scoping
    study, confirming potential production of approximately 100,000mtu of
    tungsten oxide per annum and 1,000,000 lbs of Mo per annum; and

•   Project water supply confirmed.


Thor is well advanced with the definitive feasibility study, which is scheduled
to be completed by mid-November 2006. The Company intends to accelerate
development of Molyhil with a view to commencing production during 2007.


The key metallurgical test work program carried out over the past 6 months has
been supervised by Thor and Proteus Engineering, with the involvement of
metallurgical consultants, Independent Metallurgical Laboratories Pty Ltd, Orway
Mineral Consultants and Nagrom & Co.


The metallurgical recoveries used in the scoping study for WO3 and MoS2 were
based on pilot plant test work conducted by Nagrom in early 2005. The definitive
metallurgical results received this week have improved the scoping study
figures, as reflected in the table below:


Concentrates         Scoping Study                  Definitive Feasibility Study     Concentrate
                     (Jan2006)                      (Oct2006)                        Production @
                     Recovery      Concentrate      Recovery      Concentrate Grade  300,000 tpa
                                   Grade
Tungsten (WO3)            51%           68.6%           67.2%           69.3%           1,511 tonnes
Molybdenum (MoS2)        78.1%          82.5%            77%             85%             905 tonnes



This equates to planned production of approximately 100,000 mtu of tungsten
oxide per annum and 1,000,000 lbs of Mo per annum. Current prices for Tungsten
Oxide concentrates (min 65% WO3) are USD$220 per mtu and the price for
Molybdenum concentrates (min 57% Mo) is USD$26 per lb.

The most significant change arising from the metallurgical test work program is
in the recovery of Tungsten to the gravity circuit. The initial flow sheet used
magnetic separation prior to flotation and gravity recovery, however this
procedure is now completed at the end of the processing circuit on the finer
Tungsten fractions, removing deleterious elements and improving overall
recovery. The concentrate grade specifications are within a marketable range,
and improvements in the molybdenum specifications were made with the removal of
between 2 and 4% copper in concentrates, with copper levels now within
specification.

Recent results from investigative hydrogeological drilling has identified an
adequate supply of excellent quality water for the project, with six out of the
eight locations successful in identifying substantial aquifers.

The Molyhil definitive feasibility study is progressing well with the processing
plant, infrastructure and mine development capital estimates due within a few
weeks

Thor's Chief Executive Officer, Mr John A. Young, said: 'The completion of the
metallurgical test work program is an important step in the progress of our
off-take agreement, with a number of interested parties waiting for these final
concentrate specifications. Marketing and negotiations can now begin with the
aim of securing both a buyer and a finance package that will enable development
of the Molyhil Project to be fast-tracked.'



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, the
Chief Executive Officer of Thor, 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 this RNS announcement 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            Nominated Adviser
                                               Limited

Leesa Peters         020 7429 6600             Conduit PR Limited             Public Relations/UK

         or

Abigail Singleton    020 7429 6606

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