Quarterly Operating Report

Thor Mining PLC
30 October 2006

                            THOR MINING PLC ('Thor')

                  Quarterly Operating Report to September 2006

Dated: 30 October 2006

Highlights

MOLYHIL TUNGSTEN-MOLYBDENUM PROJECT ('Molyhil')

  • A 2038m Reverse Circulation ('RC') deep drilling program completed;
  • Significant widths of Molyhil black rock magnetite skarn intersected with
    visual tungsten-molybdenum mineralisation identified;
  • Results confirm depth extensions of Molyhil;
  • Geotechnical and hydro geological investigations successfully completed;
  • Metallurgical test work program successfully completed; and
  • Production estimates and concentrate specifications exceed scoping study,
    confirming potential production of approximately 100,000 mtu of tungsten
    oxide per annum and 1,000,000 lbs of Mo per annum.

HALE ENERGY URANIUM PROJECTS ('Hale Energy')

  • Hale Energy portfolio comprises over 3,000 sq km of exploration ground,
    including advanced target areas with previous uranium exploration history in
    close proximity to existing uranium discoveries. All but one of the
    tenements were granted in September 2006; and
  • Commissioned helicopter borne HoisTEM survey over Hale River and Plenty
    Highway projects.

CORPORATE

  • AGM and EGM held in London with all resolutions approved;
  • Shareholder approval received for acquisition of Hale Energy Limited;
  • Capital consolidation and warrant issue completed;
  • ASX IPO raising AUD10M completed; and
  • Exploration Manager appointed.

OVERVIEW

During the quarter, Thor continued to progress its key asset, the 100% owned
Molyhil Tungsten-Molybdenum Project located in Central Australia. This project
is in its final phase of its definitive feasibility study due for completion in
November 2006.

A program of Deep RC at Molyhil was successful in identify extensions to the
Southern and Yacht Club ore zones. The RC program also included geotechnical and
hydro geological studies over areas designated for future mine development
infrastructure.

The metallurgical test work program was successfully completed as part of
definitive feasibility study. This allowed the final concentrate volumes and
specifications to be calculated. The production estimates and concentrate
specifications exceeded 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.

Uranium exploration has begun with initial reconnaissance work at Harts Ranges
completed and the HoisTEM survey at Hale River and Plenty Highway Projects
underway.

Thor completed its ASX IPO raising AUD10 million during the Quarter, including a
capital consolidation and issue of warrants. This enabled the purchase of Hale
Energy limited, now a 100% owned subsidiary of Thor with over 3000 sq kms of
Uranium exploration ground.

The proceeds of this fund raising will underpin the completion of the Molyhil
definitive feasibility study and allow Thor to pursue an aggressive uranium
exploration strategy.

MOLYHIL TUNGSTEN - MOLYBDENUM PROJECT

MOLYHIL EXPLORATION

The program of deep RC drilling at Molyhil was completed. 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 2038m.

Table 1 - Deep RC Drilling at Molyhil

      Hole ID          East(GDA94)       North(GDA94)         RL        Mag_Azi    Dip      Depth
      TMRC024           577187.8           7482937.0          418         252      -60       258
      TMRC025           577177.0           7483038.0          418         252      -60       204
      TMRC026           577198.5           7483003.0          418         252      -60       241
      TMRC027           577217.0           7482977.0          418         252      -60       280
      TMRC028           577048.2           7482998.0          410         252      -60        50
      TMRC029           577062.0           7483143.0          418         252      -60       129
      TMRC030           577135.4           7482836.0          413         252      -60       204
      TMRC031           577204.8           7482916.0          410         252      -60       216
      TMRC032           577157.0           7482840.0          412         252      -60       228
      TMRC051           577157.0           7482810.0          410         252      -60       228
                                                                                Total(m)     2038

The drilling was designed to test for depth extensions of the current Molyhil
resource, which totals 2.38 million tonnes at a combined Tungsten-Molybdenum
uncut grade of 0.80%. Previous magnetic modelling indicates that the Molyhil
resource continues to a depth of at least 450m below surface.

The results have confirmed depth extensions at both the Yacht Club and Southern
ore bodies.

RC hole TMRC24 drilled beneath the Yacht Club ore zone to a depth of 258m,
intersected black rock skarn from 133 to 155m down hole with visual tungsten-
molybdenum mineralisation identified. This intersection appears to be offset to
the east and may represent a new zone of mineralisation not previously
identified sitting above the hanging wall of Yacht Club. In light of the results
from this hole, drill hole TMRC31 was targeted approximately 30m south east and
completed to a depth of 216m. Hornfels skarn and black rock magnetite skarn was
intersected from 153m to 190m with two zones of visual molybdenum mineralisation
identified between 170m and 179m, and 182m to 186m.

TMRC30, drilled to the south and east of the known Southern ore body intersected
two zones of black rock skarn from 135 to 176m and 188 to 192m. TMRC32, drilled
to 228m was collared 30m south east of TMRC30 and intersected hornfels and black
rock magnetite skarn zones with intermittent visual molybdenum. A further
molybdenum rich zone was intersected from 205 to 210.

Full assay results are expected to be received shortly.

Further to the above 10 deep holes explained above, a total of 7 short RC holes
have also been completed for 84m on existing run of mine stockpiles, which are
estimated to contain over 300,000 tonnes of material, not included in the
scoping study.

The sample quality from this work was excellent with consistent sample weights
with little moisture affecting recoveries. The results from this drilling will
allow an update of the existing resources in the fourth quarter of 2006.

DEFINITIVE FEASIBILITY STUDY ('DFS')

Geotechnical - Soil Engineering

Golders and Associates geotechnical consultants were on site during August and
September 2006, completing soil and foundation studies relating to
infrastructure sites, including tailings dam design.

Work completed:

  • 50 test pits at the proposed plant and tailings dam sites;

  • 12 test pits at the airstrip; and

  • 16 test pit at 3 proposed Village sites.

An assessment of available road sheeting material to characterise road sub-grade
conditions was also completed with 20 test pits completed along the roadside out
to the Plenty Highway. Insufficient gravel road materials were found and it is
likely that coarser and gravel type road material will be sourced from existing
waste rock at Molyhil.

All disturbed soils were backfilled and rehabilitated immediately.

The program of geotechnical and hydro geological drilling included the drilling
of two sets of holes, with a total metreage of 275m, as set out in table 2.

The test work and objectives of the drilling are summarised as follows:

Tailings Storage Facility ('TSF')

Drilling was carried out at five locations within and down gradient of the
proposed TSF. A pair of holes was drilled at each location, consisting of a
shallow hole to a nominal depth of 5m and a deeper hole to 35m.

Hydraulic conductivity tests were carried out in the drill holes. Analysis of
the test data is currently being undertaken to provide estimates of the
hydraulic conductivity within the underlying soil geological profile. This data
will be used for modeling potential seepage from the tailings storage facility
and for predicting the likely groundwater response.

Plant Site

Holes were drilled at five locations within the proposed plant site are
to depths of 15m. Cuttings returned during the drilling were inspected to assess
rock type, relative strength and degree of weathering. Rates of progress were
noted for the purpose of identifying any soft area within the profile. The
information obtained from the drill holes will assist in determining the
allowable bearing capacity of the foundation soils and aid in the design of
footings for the plant foundations. The information is currently being assessed
for inclusion in the DFS.

Water Bore Investigation

This program started late September 2006 and was completed subsequent to the end
of the quarter, 14 holes were drilled for a total of 1005m. Six holes were in
Cambrian carbonate rocks 6 to 10 kilometres north east of the mine to locate the
principal process water source. A further eight holes were drilled into
Proterozoic rocks mostly to the south of the mine to locate a proximal potable
water supply.

The yields achieved plus the presence of cavernous ground below standing water
levels suggests that the bores have potential for high yields following bore
construction and pumping.

The work was supervised by KH Morgan and Associates.

Mining and Reserves

Australian Mining Consultants have completed a review of mining costs based on
the preliminary pit optimisation, the current run of optimisation studies are
waiting on indicative concentrate prices from metal marketing consultants.

Studies completed during quarter:

  • Mine Planning involved a review mining methods and mining rates,
    determining mining dilution and ore loss parameters. The preparation
    preliminary mining costs for the chosen mining method;

  • Conduct pit optimisations of the resource model using Whittle Four-X pit
    optimisation software to determine economic pit limits; and

  • Determine the sensitivity of the project outcomes to key parameters.

Create pit designs for appropriately selected pit shells as well as designs for
stockpiles, waste dumps, haul roads etc.

Preliminary Mine Layouts:

  • Schedule pit contents by period;

•     Pit designs suitable for estimation of ore reserves, plans and sections of
the stage and final pit designs; and

•         A full report detailing the methodology, parameters, and outcomes of
the study are due early November for inclusion in the DFS.

Metallurgical Test Work

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 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 USD220mtu and the price for Molybdenum
concentrates (min 57% Mo) is USD26lb.

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.

Other DFS Progress

Environmental and Notice of Intent (NOI)

Keith Lindbeck and Associates ('Lindbeck') have been commissioned to complete
the NOI and the environmental studies. Lindbeck is to utilise Low Ecological
Services if required and Golders and Associates which are doing the geotechnical
including tailings dam design. A visit to Darwin is planned to meet all parties
concerned with the permitting process at NT Mines Department.

Product Marketing

A metal marketing consultant has been asked to provide possible prices for the
sale of concentrate products. There are a number of interested parties that wish
to enter into negotiations to purchase concentrates in conjunction with an
opportunity to provide finance for the project.

Negotiation of Mining Agreement

Formation of development review committee has been commenced for the
negotiations with the Central Land Council with the aim to complete mining
agreement in parallel with the DFS. This is currently planned to be completed
during the December quarter.

Capital Cost Estimation

Proteus and Thor personnel have now 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. Thor recently purchased a crushing circuit for AUD450,000 + GST.

Operating Cost Estimation

Initial operating costs have been compiled for the DFS and are similar to
Meritt's scoping study costs (AUD58 per tonne). However, Meritt's costs did not
include concentrate transport..

URANIUM EXPLORATION

Hale River-Plenty Highway Projects

The first phase of a comprehensive uranium exploration program has begun within
the recently acquired portfolio in the Northern Territory of Australia. Thor's
uranium portfolio comprises five advanced uranium projects covering a total area
of 3,000 sq km.

The first phase of the program comprises a helicopter borne HoistEM(TM) 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 is being flown by GPX Airborne Pty Ltd, a WA-based geophysical
company that specializes in airborne electromagnetic techniques. Based on
previous experience, it is anticipated that the electromagnetic survey will
respond to saline water in buried tertiary palaeo-channels and define basin
shapes prospective for roll-front uranium deposits, thereby defining targets for
follow up drilling.

The survey is being 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 will
be completed on 200m and 400m line spacings respectively.

Harts Range Project

The Harts Range prospects are located approximately 200 kms east north east of
Alice Springs and cover approximately 350 sq kms. Regional exploration for
uranium was conducted over the Harts Range area between 1992 and 1995 including
regional reconnaissance sampling resulting in the discovery of significant
uranium mineralisation.

Thor's exploration program at Harts Range will initially focus on structurally
controlled high-grade mineralisation, and will comprise detailed field mapping,
ground surveys and follow up drilling.

Initial reconnaissance work has been completed over several of the tenements, a
number of previously investigated PNC prospects were identified and 11 rock
samples taken (see table below). Results from this work will be available
shortly. Massive muscovite pegmatite intrusive bodies with potential
disseminated uraninite were noted in ELA24734.

Rock Chip Sampling Harts Range

 Sample ID      East(GDA94)      North(GDA94)        Prospect        Tenement   Description
    HR1           512496            7454754         Eagle Beak       EL24827    Epidote alt
    HR2           512440            7454848         Eagle Beak       EL24827    Epidote alt 10m
    HR3           512544            7454964         Eagle Beak       EL24827    Epidote alt 5m
    HR4           511278            7454386         Eagle Beak       EL24827    Epidote alt
    HR5           511510            7454706         Eagle Beak       EL24827    Epidote alt
    HR6           512496            7454754         Eagle Beak       EL24827    Epidote alt
    HR7           518760            7418900            Ryoma         EL24735    Biotite/Amph- vis
                                                                                Uraninite
    HR8           518760            7418900            Ryoma         EL24735    Biotite/Amph- vis
                                                                                Uraninite
    HR9           518760            7418900            Ryoma         EL24735    Biotite/Amph- vis
                                                                                Uraninite
    HR10          518170            7419160           Casper         EL24735    Quartz Plagioclase
    HR11          518170            7419160           Casper         EL24735    Quartz Plagioclase

Uranium Consultant

Thor has engaged the services of Mr Phillippe Kearns, a 13 year veteran of
Cogema and Afmeco, he has been involved in the exploration for uranium across
four continents since the mid 1970's and was part of the team that discovered
the Cigar Lake Uranium deposit in Saskatchewan, Canada. He will act as
consultant to Thor's exploration team in the Eastern Arunta.

Tenements Granted

During the quarter, nine out of the ten uranium exploration tenements held by
Hale Energy Limited were granted (see table below).

Hale Energy Tenements

Curtis Pound Uranium Project          EL24823           Curtis Pound Project
Hale River Uranium Project            EL24809           Hale River Project
Harts Range Uranium Project           EL24734           Harts Range Project
                                      EL24735           Harts Range Project
                                      EL24736           Harts Range Project
                                      EL24765           Harts Range Project
                                      EL24827           Harts Range Project
                                      ANA 24766         Harts Range Project
Plenty Highway Uranium Project        EL24810           Plenty Highway Project
Bundey River                          ELA25378          Bundey River Project


CORPORATE

Fund Raising and Listing on ASX

Thor received shareholder approval to proceed with the acquisition of the of
uranium projects. 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 proposed dual listing of Thor's
shares on the Australian Stock Exchange.

The consideration for the acquisition of Hale Energy was the issue of 16 million
fully-paid Thor shares and 8.5 million warrants.

Thor closed its AUD10.0 million IPO fully subscribed ahead of the dual listing
of its shares on the ASX on the 25th of September 2006.

The successful completion of the IPO marked an important milestone for Thor.

The funds raised from the IPO will be used to pursue an aggressive development
strategy focused on completion of a DFS for the Molyhil. Thor intends to bring
Molyhil into production during 2007, in parallel with a major exploration effort
on its newly acquired uranium portfolio.

Appointment of Exploration Manager

During October Thor announced that it has 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 with Dominion
Mining Limited. 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.

Initially Mr Till will supervise the start up of our Uranium exploration, with a
helicopter borne HoistEMTM survey on its Hale River and Plenty Highway
tenements. The survey is being flown by GPX Airborne Pty Ltd in late October.

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.


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