Wolf Minerals Regulatory News (WLFE)

Quarterly Activities Report

For the period ending 31st December 2012

Specialty metal exploration and development company, Wolf Minerals Limited (ASX: WLF, AIM: WLFE) ("Wolf") is pleased to provide the following update on the Hemerdon tungsten and tin project in Devon, UK, for the three month period to 31st December 2012.

During the quarter, the Company achieved a number of major milestones in relation to the required funding for the Hemerdon project.

Highlights from the December quarter include:

ü A total funding package of A$212 million (£141)* was secured, which comprised;

o A$20.3 million placement completed

o US$82 million funding package secured

o Credit approval received for £75 million senior debt funding

ü Opening of Wolf UK office

ü Senior management appointments

*Exchange rates GBP 1/AUD 1.505, AUD 1/USD 1.04

A$20.3 million placement completed as part of funding package for Hemerdon tungsten and tin project

In December the Company announced that it had completed a placement to raise A$20.3 million as part of the funding package required to bring the Hemerdon project into production (see announcement of 21 December 2012).

Under the placement, Wolf received subscriptions for 75,378,519 shares at A$0.27 (c.17p) per share. This price represented a premium of 12% over Wolf's 30 day VWAP.

The placement was a key milestone for Wolf, as it provides the funding for the Company to commence construction at the Hemerdon project. The funds raised will be utilised to provide working capital to commence the Hemerdon project, repay an existing A$6 million loan facility provided by Resource Capital Fund V L.P. (RCF) and purchase properties around the Hemerdon site.

The placement also facilitates the introduction of a new strategic investor, TTI (NZ) Limited, to assist in the development of the Hemerdon project. TTI (NZ) Limited subscribed for 39,410,000 shares, for a 19.9% interest in Wolf.

TTI (NZ) Limited is a wholly owned subsidiary of the Todd Corporation Limited, a major private New Zealand based company with a diversified portfolio of business interests. As part of its investment, TTI (NZ) Limited will be entitled to nominate a Director to join the Wolf board.

RCF and Traxys, two of the Company's major shareholders, also demonstrated their continued support by subscribing for 27,450,000 ordinary shares and 6,666,667 ordinary shares respectively in the placement. The remainder of the placement shares was placed with existing sophisticated investor shareholders.

The completion of the placement also satisfies a key condition of the Bridge Finance Facility and Royalty Agreement provided by RCF (see announcement of 7 December 2012).

About TTI (NZ) Limited and the Todd Corporation

TTI (NZ) Limited is a wholly owned subsidiary of the Todd Corporation, a 100% private, family owned company which is one of New Zealand's largest and most successful companies. It has a history that spans more than 125 years, and has interests in oil and gas exploration and production, electricity generation, energy retailing, property development, healthcare, telecommunications and wine.

US$82 million funding package secured for development of Hemerdon project 

RCF Funding Package

Also in December, Wolf entered into a binding agreement with Resource Capital Fund V L.P. ("RCF") for RCF to provide a funding package of US$82 million (A$79M) to be utilised to further develop the Hemerdon project (see announcement of 7 December 2012).

The funding package comprised:

§ A 12 month secured Bridge Finance Facility of US$75M (A$72M) from RCF, to provide further funding for development activities and the commencement of construction at Hemerdon.

§ US$7M (A$7M) consideration for the purchase of a 2% Royalty by RCF on gross revenues from all metals and minerals produced from the project.

The funding package will allow Wolf to continue the development of the Hemerdon project and commence its construction.

The Bridge Facility has a maturity date of 12 months from the date of satisfaction (or waiver by RCF) of conditions precedent for the initial draw down. Bridge Facility monies are payable in full on the maturity date. The Bridge Finance Facility is secured on the Company's Hemerdon project and prevents the Company from drawing down any further debt until it is repaid in accordance with its terms.

The amount available for drawdown under the Bridge Facility will initially be limited to US$40 million (A$38M) until such time as Wolf has received all material permits, licences and approvals necessary to commence construction and operation of the Hemerdon project. The further US$35 million (A$34M) of the Bridge Facility is available upon obtaining the required permits.

The initial US$40 million of the Bridge Facility will be utilised by Wolf for the purchase of properties (required to be purchased under the terms of the Hemerdon project's planning permission), design engineering, procurement, owner's development costs and general working capital.

See announcement of 7 December 2012 for details of the fees associated with the Bridge Facility.

Credit approval received for £75 million in project finance for Hemerdon

In November (see announcement of 19 November 2012), Wolf announce it had received an updated and increased credit approval from UniCredit Bank AG (UniCredit Corporate & Investment Banking), ING Bank N.V. and Caterpillar Financial SARL for £75 million (A$113 million) in senior debt finance facilities, to fund the commercial development of the Hemerdon project.

The Company was delighted to receive the revised credit approval for the senior debt component of the project's funding requirements. The continuing support of its three globally recognised leaders in mining project finance is a significant milestone for Wolf and a strong endorsement of the Company's confidence in the technical and financial strength of the Hemerdon project.

The financing structure includes a portion of the senior debt facilities being supported by a guarantee provided by the German government's Untied Loan Guarantee Scheme (Ungebundener Finanzkredit "UFK") and a loan guarantee under similar terms by Wolf's intended tungsten offtakers, Wolfram Bergbau und Hütten AG and Global Tungsten & Powders Corp.

Together, these guarantees will cover 50% of the senior loan facility and are subject to final approval of the guarantors, due diligence and documentation.

The funding will support the planned construction of the project, based on the Definitive Feasibility Study completed in May 2011. The provision of these senior debt facilities is now subject to completion of project finance documentation and conditions precedent customary for a financing of this nature.

Wolf UK office established

Also during the quarter, Wolf opened its UK headquarters, at the Tamar Science Park in Plymouth. Wolf has established its office in the Drake building, within Phase 4 of the Park.

The establishment of its UK office is another significant milestone for the Company in its plans to bring the Hemerdon project in to production. Tamar Science Park offers an excellent base for Wolf and is located in close proximity to the project site.

Tamar Science Park is a joint venture between Plymouth University and Plymouth City Council. It currently houses around 80 businesses, which employ a total of more than 650 staff and have a combined turnover in excess of £95 million.

Senior management personnel appointed

The Company has also commenced recruiting key senior management personnel as it continues to progress its development plans at Hemerdon. Wolf has made further senior management appointments based in the Plymouth office including a HR Manager, a Commercial Manager, and an EPC Contract Manager. Further appointments have been made to the Perth based Project Team including roles in project execution, scheduling and costs, and document control.

The Company will continue to add to its senior management team over the coming months, and will be looking to appoint an Environmental Manager and Mine Manager in the Plymouth office.

Project milestones achieved to date

Having updated the planning permission for the project in January 2011 and completed the Definitive Feasibility Study in May 2011, Wolf has worked hard to secure funds to develop the project and ensure that it is construction-ready upon funding.

To this end Wolf has tendered and negotiated the EPC contract for the detailed design and construction of the processing plant and infrastructure. This contract is due to be awarded in the near future. In addition Wolf has tendered and negotiated the mining contract for the Project, with a short list achieved. Work continues to finalise this contract.

Wolf is pleased to have attracted strong offtake partners to support the project. The commercial terms for the offtake agreements, with Wolfram Bergbau und Hütten AG and Global Tungsten & Powders Corp, have been agreed and signed as a Heads of Terms agreement. The details of the agreement were released to the market on 12th April 2012. This agreement is due to be finalised in the near future as it is linked to the closure of the banking documents.

Recently Wolf has achieved a number of significant milestones as part of its development of the Hemerdon project into a world class tungsten and tin mining operation. These include;

Key environmental approvals received

In September 2012 (see announcement of 17 September 2012) the Company received a number of key environmental approvals, with the granting of seven water permits for the operation of the Hemerdon mine from the Environment Agency (EA). The water licenses cover the entire operation of the Hemerdon mine, including the abstract of the required volume of water for the processing plant and the discharge of water from pit dewatering activities. Details of the specific water licenses are provided in the Company's announcement of 17 September.

Construction of Hemerdon Link Road completed and road opened

In July 2012, Wolf completed the first major component of infrastructure work at the project, with the completion of construction of the Hemerdon Project Link Road (see announcement of 31 July 2012). Construction of the Link Road began in January 2012 and formally marked the commencement of construction at the project. The road was officially opened on 27 July. The Link Road is a 600 metre long public access road, constructed as part of Wolf's planning permission for the development of the Hemerdon project. It will remove a long-term constriction in the local traffic network, and create a piece of road infrastructure to support safe and efficient transportation in the area.

Planned upcoming activities

In the March 2013 quarter, Wolf will continue to ramp up its operations at the Hemerdon project. Details of proposed activities will include;

§ Completion of documentation for the debt facilities.

§ Completion of documentation for project's tungsten offtake agreements.

§ Appointment of an EPC contractor for the project.

§ Commence acquisition of requisite properties in and around the project area. Wolf has negotiated options to purchase with many of the property owners, which will allow this process to move forward quickly.

§ Commence detailed design and procurement of the plant and infrastructure. Access to the project site and the commencement of site works for the processing plant and infrastructure is expected to commence on completion of this work.

For further details, please contact:

About Wolf Minerals

Wolf Mineral is an ASX listed and AIM listed specialty metals company focused on developing the world class Hemerdon tungsten and tin project, in Devon, in the south-west of the UK. The Company holds an option over 100% of the Hemerdon project, which the Directors consider to be one of the largest undeveloped tungsten and tin resources in the western world. It is ranked as the fourth largest tungsten deposit in the world in terms of contained tungsten metal, by The British Geological Survey. The Company aims to develop the project into a large scale, open pit mining operation, which will position it as a world class tungsten and tin producer. Wolf released a positive Definitive Feasibility Study for the Hemerdon project in 2011, and it has updated planning permission for mining until 2021.