Feasibility Study

Thor Mining PLC
04 April 2006

                                THOR MINING PLC



                      Feasibility Study on Molyhil Project



Dated: 4 April 2006



Thor Mining PLC ('Thor') the mineral exploration and development company
focussed on advancing tungsten and molybdenum projects in the Northern Territory
of Australia today announces the commencement of a definitive feasibility study
on the Molyhil Tungsten and Molybdenum Project (the 'Molyhil Project') following
the completion of a positive Scoping Study..



Highlights

•         Scoping study on Molyhil Project completed on schedule which confirmed
          an indicative positive pre tax cash inflow of A$140m over initial 
          4 years.;

•         Scoping study was based on an initial 4 year open pit mining operation
          with an estimated A$20 million capital cost.;

•         Definitive feasibility study targeted for completion in the December
          quarter; and

•         New program of in fill and resource extension drilling to commence at
          Molyhil in April/May 2006;



Scoping study results

The scoping study assisted in identifying the priorities for the definitive
feasibility study and the highlights of the outcomes for the Molyhil Project
included the following:

  • 300,000 tonne per annum open pit mining operation for the initial 4 years
    production;
  • forecasted cash operating cost of A $80 per tonne; and
  • estimated capital cost of A $20M.

These outcomes were based on assumptions including:

  • Current concentrate commodity prices which are:

           Tungsten Ore Min 65% WO3 USD: $240 mtu

           Molybdenum roasted concentrates (oxide) MoS2 57% USD: $24 per lb

  • Exchange rate US$ 0.75: A$1.00.

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 A$140m over a 4 year mine life.

Definitive feasibility study

As a result of the completion of the scoping study, the Directors of Thor have
decided to proceed immediately with a definitive feasibility study which is
targeted for completion in the December quarter of 2006.

This study will be completed by Merit Engineers Pty Ltd, utilising the same
principal consultants that have been used for the completed Scoping Study.
Several aspects are already underway.

As part of this study, additional drilling will be undertaken during the second
quarter 2006.  The objectives of this drilling include:

-         selected deep drilling to test below proposed open pit;

-         geotechnical holes, for the proposed tailings dam and open pit;

-         bore-field set up; and

-         Thring Creek anomaly.

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.

Scoping study details

Following completion of the upgraded Molyhil Project JORC resource estimate, as
announced in January 2006, Thor engaged Merit Engineers Pty Ltd to define
capital and operating costs for the Molyhil Project, initially up to scoping
study level.

Thor also engaged Australian Mining Consultants ('AMC') to prepare the open pit
design and mine planning for the proposed project development.

Metallurgical test work is ongoing at Independent Metallurgical Laboratories ('
IML') supervised by Merit, together with Thor's non-executive director, Mr Greg
Durack, who is a metallurgist by profession.

A schedule setting out the terms of reference for both the scoping study and the
definitive Feasibility study on the Molyhil Project is available.

Resources

In January 2006, independent geological consultant, Continental Resource
Management Pty Ltd ('CRM'), completed an updated estimation of the resources at
the Molyhil Project in accordance with 2004 JORC guidelines.

This resource was used as the foundation of the scoping study.



The Molyhil Project deposit remains open at depth and has been interpreted from
geophysical data to extend to 400-500 metres vertical depth or at least 250
metres below the current resource boundary. There is, therefore, considered to
be significant potential to further increase the Molyhil resource with deeper
drilling.

Mining

The nature and the physical characteristics of the Molyhil resource allow mining
by straightforward open pit methods using conventional equipment and mining
techniques. The scoping study recommends that mining contractors be used for
this phase of production.

AMC has completed a proposed mine plan for the project.

Metallurgy

During 2005 a bulk sample of material from Molyhil was shipped to Perth and
processed using a pilot-scale plant at Nagrom. This test work program achieved
excellent recoveries of up to 51% WO3 and 78% MoS2.

A new test work program commenced in early 2006 designed to simplify the
proposed process flow sheet.

Metallurgical test work using material extracted from Molyhil has now been
ongoing for two months. This test work program is expected to be the longest
lead time item in the compilation of the definitive feasibility study.

Infrastructure

There is currently minimal infrastructure at the Molyhil Project site and the
Scoping Study has assumed that the following key infrastructure items will need
to be constructed:

-           Camp and communications;

-           Water supply;

-           Upgrade of a nearby airfield; and

-           Upgrade of access roads.

Principal consultants

The Scoping Study has been completed with the assistance of the following
principal consultants:

-           Merit Engineers Pty Ltd;

-           Continental Resource Management;

-           Australian Mining Consultants; and

-           Independent Metallurgical Laboratories.

CRM consents to the inclusion of the information relating to the mineral
resources in this announcement in the form and context in which it appears.

This press release includes certain statements, estimates and projections with
respect to the anticipated future performance of the Molyhil Project. Those
statements, estimates or projections are based on assumptions about future
events and management actions that may not necessarily take place and are
subject to significant uncertainties, many of which are outside the control of
Thor. Those assumptions may, or may not, prove correct. No representation is
made as to the accuracy of those statements, estimates or projections.

Enquiries:


John W Barr        [phone]      Thor Mining PLC                  Executive Chairman
John Simpson       020 7512 0191        ARM Corporate Finance Ltd        Nominated Adviser
Abigail Singleton  020 7429 6666        Conduit PR                       Public Relations



Updates on the Company's activities are regularly posted on Thor's website
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updates by email.




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