Thor Energy Regulatory News (THR)

28 April 2023

Thor Energy Plc

("Thor" or the "Company")

Quarterly Activities and Cash Flow Report

January to March 2023

*REE - Rare Earth Estimate

**ISR - In-Situ Recovery

Nicole Galloway Warland, Managing Director, Thor Energy Plc, commented:

"We are excited with the progress made during the March Quarterly 2023. The beginning of the year was a big step change as we evolved to become Thor Energy Plc. Whilst we will be progressing our gold and copper projects in Australia, our philosophy will be to focus on the 'green energy' economy with our uranium and vanadium projects in both Utah and Colorado in the United States of America.

"We were delighted to receive the vanadium assay results for the selection of physical samples sent for analysis. The assay results at the Wedding Bell and Radium Mountain project confirmed the uranium mineralisation determined by downhole gamma and highlight broader enriched vanadium halos of up to 0.27% vanadium. These vanadium-rich halos are typical of this style of 'Salt Wash' sandstone-hosted uranium mineralisation.

"Drill permitting is underway for our next round of drilling at Wedding Bell, and initial drilling at Vanadium King. A close-spaced airborne radiometric and magnetics survey will occur at all three projects in the United States once we believe the conditions are suitably dry to progress. We anticipate this will happen in the upcoming weeks.

"We were pleased to announce earlier this week the Rare Earth Element discovery at our Alford East project, with a review indicating that eight out of the nine 2021 diamond drill holes have shallow, wide zones of highly enriched REE results within copper-rich oxides zones of IOCG style mineralisation. When compared to peers, these results compare very favourably in terms of depth, thickness, and grade.

"We recently announced our ANT survey at the Alford West project was extremely successful in subsurface mapping. The use of the ExoSphere by Fleet® enabled the survey to be more efficient in exploration, minimising the environmental impact and improving drill targeting. We believe the subsurface ANT results will be integrated with historical drilling data to generate a new drilling program that can target higher-grade oxide copper-gold and REE mineralisation.

"We look forward to updating the market as the subsurface maps are further refined with drill targets."

Photo 1: Mapping at Vanadium King Project, Utah

URANIUM AND VANADIUM PROJECTS (USA)

Wedding Bell and Radium Mountain, Colorado Drilling Program

Thor's initial drilling program, which was completed in November 2022 comprised of 15 shallow rotary air drillholes, confirming uranium mineralisation along strike of historical workings at Rim Rock and Groundhog Prospects, and within the newly tested Section 23 prospect (Figure 2). These priority prospects lie within the Company's 100% owned Wedding Bell and Radium Mountain Projects, located in the historic uranium-vanadium mining district within the Uravan mineral belt, southwest Colorado, USA (Figure 1).

Uranium mineralisation determined by gamma downhole logging (conducted by Jet West), was intersected at all three prospects, confirming the prospectivity of the Projects by increasing and enhancing the uranium lateral continuity across the Projects within the Salt Wash Member of the Morrison Formation (ASX/AIM: 21 December 2022).

"Saltwash type" sandstone-hosted uranium deposits, of the Uravan Mineral Belt (Figure 1) are considered unique amongst the sandstone-hosted type of deposits, as the amount of vanadium generally exceeds uranium. Based on historic production figures, vanadium exceeds uranium at an average ratio of 5:1 in the Wedding Bell/Groundhog Project area[1]. Uranium occurs primarily as uraninite and coffinite with oxidised tyuyamunite and carnotite, while vanadium is mostly found in the mineral montroseite and vanadium-rich alumino-silicates - tyuyamunite and carnotite.

For drillholes 22WBR010 to 22WBR014, where there are zones of visual interest (reduced grey/green sandstone), with anomalous scintillometer values, physical samples were collected for uranium and vanadium, as well as multi-element geochemical analysis. 67 physical samples were collected and sent to either the ALS laboratory or the Hazen laboratory (Table A and Figure 2-4). The ALS laboratory would not receive samples above 0.3 millisieverts, hence the addition of Hazen Laboratory for 22WBR012 samples.

Assay results validate downhole gamma readings for uranium and confirm broader enriched vanadium mineralisation (ASX/AIM: 24 April 2023).

Results include:

1.5m @ 2660ppm (0.27%) V2O5 from 83.8m (22WB012A) - Groundhog

1.5m @ 1776ppm (0.18%) V2O5 from 59.4m (22WB014) - Rim Rock

3.0m @ 1640ppm (0.16%) V2O5 from 83.8m (22WB012) - Groundhog

1.5m @ 1026ppm (0.10%) V2O5 from 83.8m (22WB011) - Section 23

Vanadium layers, such as the one targeted at Rim Rock, are generally relatively low in uranium content (by the standards of historical uranium mining in the Uravan District). They are usually ignored by the miners, with the focus on high-grade uranium zones only (Photo 2). The uranium intersection in 22WBRA014: 0.3m @ 720ppm (0.072%) eU3O8 from 59.7m, correlated to a broader vanadium halo/zone of 1.5m @ 1776 ppm (0.18%) V2O5 from 59.4m.

Despite drillhole 22WBR012 collapsing prior to taking downhole gamma probe readings, assay samples confirmed uranium and vanadium mineralisation that correlates to the redrill of the hole a few meters away, 22WBR012A.

§ 3.0m @ 519ppm U3O8 and 1640ppm V2O5 from 83.8m (22WBR012)

§ 1.5m @ 601ppm U3O8 and 2660ppm V2O5 from 83.8m (22WBR012A)

Next Steps

The following activities are underway for Q2 2023:

1. Detailed interpretation and modelling (combining new data with historic records).

2. Continue to retrieve and review all historic data associated with the projects, including the Vanadium King Project.

3. Fly airborne magnetic and radiometric surveys over all three projects - pending suitable dry ground conditions.

4. Planned drilling, including follow-up at Wedding Bell and Radium Mountain.

5. Commenced approvals for 2023 drilling programs.

Figure 2: Stratigraphic section showing the uranium and vanadium mineralised zone for 22WBR012 and 22WBR012A- Groundhog Prospect

Figure 3: Drillhole Location Map at Wedding Bell and Radium Mountain projects, showing Section 23, Rim Rock and Groundhog prospects.

Photo Plate 2: Rim Rock workings showing uranium and vanadium mineralisation (uraninite) dark grey material, with oxidised tyuyamunite and carnotite (yellowish green material) within reduced grey-green sandstones.

RAGGED RANGE PROJECT (WA)

Although the main path of Tropical Cyclone Ilsa missed the Ragged Range Project, Thor's safety protocol was to evacuate the field crew from the area. With heavy rain, key rivers remained high, restricting access for a few weeks. Thor is liaising closely with landowners to monitor conditions prior to recommencing fieldwork.

During the quarter, detailed geological interpretation of historic geochemical and geophysical data in conjunction with recent drilling generated several gold and nickel targets that needed on-ground assessment.

The Ragged Range Project, located in the prospective Eastern Pilbara Craton, Western Australia (Figure 4) is 100% owned by Thor - E46/1190, E46/1262, E46/1355, E46/1340 and E46/1393 Figure 4.

Since the acquisition, Thor has conducted several programs of stream sediment and soil sampling to delineate drill targets. Thor has also flown an airborne magnetics survey over the tenement area to better define the structural features of the area.

Details of the projects may be found on the Thor website via this link: https://thorenergyplc.com/projects/ragged-range-project/

Figure 4: Ragged Range Project Location map (left) and Tenement Map (right) showing priority targets.

Next Steps

The following activities at Ragged Range are anticipated over the coming weeks:

1. Review historic data in conjunction with the recent Kelly's drilling data.

2. Planning IP survey over Kelly's Copper-gold project to refine future drill targeting.

3. Continue regional exploration, including reconnaissance sampling over ground in the northern portion of tenure for prospective lithium-caesium-tantalum enriched (LCT) pegmatites.

COPPER/REE PROJECTS (SA)

Thor holds direct and indirect interest in over 400,000 tonnes of Inferred copper resources in SA, via its 80% farm-in interest in Alford East copper-gold Project and its 30% equity interest in EnviroCopper Ltd (Kapunda and Alford West) - Figure 5.

Each of these projects are considered by the Thor directors to have significant growth potential, and each are being advanced towards development via low-cost, environmentally friendly In-Situ Recovery (ISR) techniques.

Figure 5: Alford West Project (ECL) Location Map (Left) and Tenement Map (right) with Thor's Alford East Project.

ALFORD EAST COPPER-GOLD PROJECT

Rare Earth Element Drill Results

A review of the Alford East Project geochemical data, in particular, the drilling results from Thor's 2021 maiden drilling program (ASX/AIM: 22 February 2022), highlighted shallow high-grade REE results associated with the oxide copper-gold mineralisation (Figure 5- 9) (ASX/AIM: 26 April 2023).

Significant REE drill intercepts (>500ppm TREO[2]) include:

o 21AED005: 36.7m @ 1568ppm (0.16%) TREO & 1.2% Cu from 6.3m,

including 11.8m @ 2095 ppm (0.21%) TREO and 1.2% Cu from 10m, and

11m @ 2088ppm (0.21%) TREO and 0.8% Cu from 47m,

including 2m @ 5042ppm (0.5%) TREO from 47m

o 21AED002: 11.6m @ 1699ppm (0.17%) TREO and 0.26% Cu from 30.4m

including 6.1m @ 2262ppm (0.22%) TREO from 34.0m

o 21AED001: 16.8m @ 1721ppm (0.17%) TREO and 0.5% Cu from 91.4m

o 21AED006: 29m @ 959ppm (0.1%) TREO from 20m, and

6.1m @ 1171ppm (0.12%) TREO and 0.1% Cu from 81m,

including 1.7m @ 3139ppm (0.31%) TRE0 from 84.3m

o 21AED004: 13.1m @ 1366ppm (0.14%) TREO and 0.5% Cu from 42.8m,

including 1.4m @ 2274ppm (0.23%) TREO from 35m

o 21AED007: 15m @ 961ppm (0.1%) and 0.12% Cu from 13m

including 1.0m @ 2213ppm (0.22%) TREO from 19m 

These wide zones of enriched REE occur in kaolin altered, oxide zones of IOCG-style mineralisation (Figure 6-9).

Three drill hole cross-sections (Figure 3 - 5) illustrate the REE mineralisation with the copper intercepts within the Mineral Resource Estimate (MRE) AE-5 area (Figure 6), where Thor in 2021 drilled 9 HQ diamond drillholes whilst targeting oxide copper mineralisation. The proximity to the key structure on the eastern side of the sections suggests the REE mineralisation is structurally controlled and associated with significant metasomatic alteration and deep weathering or kaolinisation of host rocks.

The kaolin association may represent an ionic style of REE mineralisation, a highly valuable REE deposit class, often characterised by favourable low-cost metallurgical recovery compared with many other types of REE deposits.

This zone of oxide mineralisation lies in the Alford Copper Belt, which in this area, is a structurally controlled, north-south corridor consisting of deeply kaolinised and oxidised troughs within unweathered metamorphic units, on the edge of the Tickera Granite (Figure 1), Gawler Craton, SA. A recently completed Ambient Noise Tomography (ANT) survey over the adjacent Alford West project successfully delineated the boundaries of the structures in that area (ASX/AIM: 17 April 2023) (Figure 5).

Figure 6: Alford East Inferred Minerals Resource Domains (left) and 2021 Drill Collar Map (right)

Figure 7: Cross Section 6256360mN showing REE (TREO) intercepts with copper mineralisation.

Figure 8: Cross Section 6256440mN showing REE (TREO) intercepts with copper mineralisation.

Figure 9: Cross Section 6256600mN showing REE (TREO) intercepts with copper mineralisation.

Next Steps:

Continue to review the geochemical REE data, with selected samples submitted to the Bureau Veritas laboratory for analysis, for a supplementary REE package; along with mineralogy and preliminary metallurgical work to determine the potential ionic nature of the REE.

Hydrogeology water characterisation sampling is continuing on a quarterly basis, to develop baseline data for In-Situ Recovery ("ISR") assessment and development approvals (Photo Plate 3).

Thor have engaged Drasloka® to undertake 6 diagnostic column leach (DLT) tests to determine copper and gold recoveries using a glycine lixiviant. Results from these studies are anticipated in late Q4 2023.

Background

The Alford East Copper-Gold Project is located on EL6529, where Thor is earning up to 80% interest from unlisted Australian explorer Spencer Metals Pty Ltd, covering portions of EL6255 and EL6529 (THR:ASX - 20 November 2020).

The Project covers the northern extension of the Alford Copper Belt, located on the Yorke Peninsula, SA (Figure 5). The Alford Copper Belt is a semi coherent zone of copper-gold oxide mineralisation, within a structurally controlled, north-south corridor consisting of deeply kaolinised and oxidised troughs within metamorphic units on the edge of the Tickera Granite, Gawler Craton, SA.

Utilising historic drill hole information, Thor completed an inferred Mineral Resource Estimate (MRE), (THR:ASX - 26 January 2021), consisting of:

§ 125.6Mt @ 0.14% Cu containing 177,000t of contained copper

§ 71, 500oz of contained gold

https://thorenergyplc.com/investor-updates/maiden-copper-gold-mineral-resource-estimate-alford-east-copper-gold-isr-project/

Photo Plate 3: Ground water testing at Alford East

KAPUNDA and ALFORD WEST COPPER PROJECTS

Thor holds a 30% equity interest in private Australian company, EnviroCopper Limited ("ECL"). In turn, ECL has entered into an agreement to earn, in two stages, up to 75% of the rights over metals which may be recovered via In-Situ Recovery ("ISR") contained in the Kapunda deposit from Australian listed company, Terramin Australia Limited ("Terramin" ASX: "TZN"), and rights to 75% of the Alford West copper project comprising the northern portion of exploration licence EL5984 held by Andromeda Metals Limited (ASX:ADN).

Information about EnviroCopper Limited and its projects can be found on the EnviroCopper website:

www.envirocopper.com.au

KAPUNDA

EnviroCopper Ltd ("EnviroCopper" or "ECL"), has completed the installation of test well arrays and has commenced in-situ recovery trials ("ISR"), including tracer and push-pull test work (Figure 7). These tests are the final hydrometallurgical assessments before ECL commences Site Environmental Lixiviant Trials (SELT).

The purpose of lixiviant trials, or 'push-pull tests', is to assess the solubility of copper mineralisation, and therefore copper recovery, using a specially designed solution called a lixiviant under in-situ conditions. The trial is to be undertaken in two stages. The first stage involves injecting and extracting a tracer solution (Sodium Bromide - NaBr) from the same well to demonstrate hydraulic connectivity between the observation and environmental monitor well network. This is followed by injecting and extracting lixiviant from the same well to test copper solubility from the mineralisation.

Key outcomes anticipated from lixiviant trials:

1. Hydraulic connectivity between wells

2. Copper solubility and recovery

3. Establish lixiviant and time parameters for design of the Site Environmental Lixiviant Trials (SELT).

ALFORD WEST

As part of its South Australian Government Accelerated Discovery Initiative grant, ECL carried out an ANT survey over a portion of the Alford West project using ExoSphere by Fleet® (Figure 2). This technology is a particularly low-impact form of exploration and uses environmental vibrations in the ground, caused by ocean waves, weather or traffic, to analyse the earth's make-up down to 2000m depth in real-time over a 10-day period (Photo Plate 1).

The technology uses compact, battery-powered smart sensors called Geodes collecting raw data. It can pre-process that data and deliver it directly via Fleet's satellite connectivity. This technology means fewer drill holes, much lower environmental impact and less time on the land, which fits with ECL's corporate objectives of minimising the impact of recovering metals necessary to aid the green energy transition.

The survey delineated the deep weathered "trough" like structures in the survey area, that host the oxide copper-gold mineralisation within the Alford Copper Belt (Figure 2- 4). With further processing and modelling, it may be possible to highlight mineralised zones within these structures.

The subsurface ANT results will be integrated with information that has been historically gathered by traditional air core and diamond drilling. This will result in drill targets with potential for higher-grade oxide copper-gold mineralisation.

The speed and minimal impact of this technique compared with traditional drilling mean that exploration impacts for landowners are kept to an absolute minimum. ECL is currently combining the ANT data with other forms of low-impact, remotely sensed data to further improve the definition of these mineralised zones.

The ExoSphere program by Fleet Space Technologies consisted of laying an array of 40 lightweight, battery-powered surface sensors called Geodes over a paddock of 0.45km².

Figure 10: 3D model showing the deeply weathered "trough" structure, host to oxide copper-gold mineralisation in the Alford Copper Belt.

Figure 11: Historic drillhole at Wombat Prospect highlighting the deeply weathered "trough" structure hosting the oxide copper-gold mineralisation with up to 66m @ 1.04% Cu from 135m (WOMDD001).

Source: http://saemc.com.au/archive/2017/17drown.pdf

TUNGSTEN PROJECTS

MOLYHIL TUNGSTEN / MOLYBDENUM PROJECT - NT (100% Thor)

Bonya JV- Jervois Vanadium Projects (40% Thor)

The Bonya copper, tungsten and vanadium deposits are located approximately 30km to the northeast of Molyhil (Figure 13). Thor in a joint venture with Arafura holds a 40% equity interest in the resources. Thor's interest in the Bonya tenement EL29701 (copper and tungsten deposit) is planned to be divested as part of the Farm-in and Funding agreement with Investigator Resources Limited.

Figure 13: Molyhil Project location showing adjacent Bonya tenements.

CORPORATE, FINANCE, AND CASH MOVEMENTS

Following shareholder approval at a General Meeting held on 4 January 2023, all participants in the placement in December 2022 received three options for every four shares subscribed under the placement, with a total of 283,928,593 options being made available. A further 94,642,858 options were issued to the lead broker regarding this placement based on one option for every four shares issued under the placement. All options are ASX-listed (ASX: THROD), which are exercisable at $0.009 (0.9 cents) and expire on 5 January 2025.

At the same General Meeting, shareholders also approved a change of company name to Thor Energy Plc. This change of name was announced to the ASX on 18 January 2023 and became effective on the ASX on 23 January 2023. The name change reflects the Company's exploration focus on its uranium and energy metals projects in Australia and USA.

For the Quarter, the Company had total net cash outflows of $374,000, comprising:

· Net cash outflows from Operating and Investing activities for the quarter of $426,000 which included an inflow of $253,000 for the F22 Research & Development Tax Incentive, and outflows of $262,000 directly related to exploration activities.

· Cash outflows from financing activities for the quarter were $23,000, related to capital raising costs and repayments of lease liabilities.

· Providing an ending cash balance of $2,316,000.

In addition, Thor continues to hold 23,118,920 shares of Power Metal Resources plc (AIM:POW). The current market value of the shares is £215,000 (approximately $405,000) based on the closing price traded on the London Stock Exchange on 27 April 2023.

Cashflows for the quarter include related party payments of $86,000 to Directors, comprising the Managing Director's salary, and Non-Executive Directors' fees. 

The Board of Thor Energy Plc has approved this announcement and authorised its release.

For further information, please contact:

Competent Person's Report

The information in this report that relates to exploration results is based on information compiled by Nicole Galloway Warland, who holds a BSc Applied geology (HONS) and who is a Member of The Australian Institute of Geoscientists. Ms Galloway Warland is an employee of Thor Energy PLC. She has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Nicole Galloway Warland consents to the inclusion in the report of the matters based on her information in the form and context in which it appears.

Updates on the Company's activities are regularly posted on Thor's website https://thorenergyplc.com which includes a facility to register to receive these updates by email, and on the Company's twitter page @thorenergyplc

About Thor Energy Plc

The Company is focused on uranium and energy metals that are crucial in the shift to a 'green' energy economy. Thor has a number of highly prospective projects that give shareholders exposure to uranium, nickel, copper, lithium and gold. Our projects are located in Australia and the USA.

Thor holds 100% interest in three uranium and vanadium projects (Wedding Bell, Radium Mountain and Vanadium King) in the Uravan Belt Colorado and Utah, USA with historical high-grade uranium and vanadium drilling and production results.

Thor owns 100% of the Ragged Range Project, comprising 92 km2 of exploration licences with highly encouraging early-stage gold and nickel results in the Pilbara region of Western Australia.

At Alford East in South Australia, Thor is earning an 80% interest in oxide copper deposits considered amenable to extraction via In Situ Recovery techniques (ISR). In January 2021, Thor announced an Inferred Mineral Resource Estimate¹. Thor also holds a 30% interest in Australian copper development company EnviroCopper Limited, which in turn holds rights to earn up to a 75% interest in the mineral rights and claims over the resource on the portion of the historic Kapunda copper mine and the Alford West copper project, both situated in South Australia, and both considered amenable to recovery by way of ISR.²³

Thor holds 100% of the advanced Molyhil tungsten project, including measured, indicated and inferred resources⁴, in the Northern Territory of Australia, which was awarded Major Project Status by the Northern Territory government in July 2020. Thor executed a $A8m Farm-in and Funding Agreement with Investigator Resources Limited (ASX: IVR) to accelerate exploration at the Molyhil Project on 24 November 2022.6

Adjacent to Molyhil, at Bonya, Thor holds a 40% interest in deposits of tungsten, copper, and vanadium, including Inferred resource estimates for the Bonya copper deposit, and the White Violet and Samarkand tungsten deposits.⁵ Thor's interest in the Bonya tenement EL29701 is planned to be divested as part of the Farm-in and Funding agreement with Investigator Resources Limited.6

Notes

1 https://thorenergyplc.com/investor-updates/maiden-copper-gold-mineral-resource-estimate-alford-east-copper-gold-isr-project/

2 www.thorenergyplc.com/sites/thormining/media/pdf/asx-announcements/20172018/20180222-clarification-kapunda-copper-resource-estimate.pdf

³ www.thorenergyplc.com/sites/thormining/media/aim-report/20190815-initial-copper-resource-estimate---moonta-project---rns---london-stock-exchange.pdf

4 https://thorenergyplc.com/investor-updates/molyhil-project-mineral-resource-estimate-updated/

5 www.thorenergyplc.com/sites/thormining/media/pdf/asx-announcements/20200129-mineral-resource-estimates---bonya-tungsten--copper.pdf

6 https://thorenergyplc.com/wp-content/uploads/2022/11/20221124-8M-Farm-in-Funding-Agreement.pdf

TENEMENT SCHEDULE

At 31 March 2023, the consolidated entity holds an interest in the following Australian tenements:

On 31 March 2023, the consolidated entity holds 100% interest in the uranium and vanadium projects in USA States of Colorado and Utah as follows:

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

2 This statement gives a true and fair view of the matters disclosed.

Date: ..30 April 2023...........................................................

Authorised by: .....the Board....................................................................

(Name of body or officer authorising release - see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.