Wolf Minerals Regulatory News (WLFE)

30 July 2014

Wolf Minerals Limited

Quarterly Activities Report

For the period ended 30 June 2014

Specialty metals development company, Wolf Minerals Limited (ASX: WLF, AIM: WLFE) ("Wolf", "the Company") is pleased to provide the following update on the Hemerdon tungsten and tin project ("Hemerdon" or "the Project") in Devon, UK, for the three month period to 30 June 2014.

Highlights from the June 2014 Quarter include:

Hemerdon

· Successful completion of A$182.7 million Fundraise and Share Purchase Plan to finalise funding of the Project through to positive cash flow.

· Construction progressing well - on track and on budget. Site clearing and haul road completed with structural concrete placement well advanced.

· Development expenditure of A$24.9 million for the quarter.

· Drilling of six diamond drill holes to provide geotechnical information to review pit slopes with intention to steepen slopes and increase ore reserves underway.

Corporate

· Numis Securities appointed as new nominated adviser and broker for its AIM listing.

Commenting on the June quarter performance, Wolf Managing Director, Russell Clark said:

"This has been a transformational quarter for Wolf. The success of the Fundraise, and the resultant flurry of construction activity demonstrate that Hemerdon will be the next large, tungsten mine to come on stream. Our team is growing and we look forward to the next quarter as the processing plant starts to take shape."

Hemerdon Project Construction Update

In May 2014 the Company reported that construction at Hemerdon, in south west England, was underway and provided an update on construction progress.

The project's Engineering-Procurement-Construction ("EPC") contractor, GR Engineering Services Limited (ASX:GNG) ("GRES"), was formally authorised to commence the construction phase of the Project in February 2014. Construction is progressing on schedule and GRES is currently expected to finish the plant and hand it over to Wolf in the third quarter of 2015.

The Company's project management team, led by Project Manager Rupert McCracken and Operations Manager Jeff Harrison, is in place and there are currently more than 120 people working at site.

The initial phase of construction activity at the project involved site preparation works for the new processing facility and the mine waste facility. This has been completed. Construction of the access road into the site is also finished, allowing delivery of equipment, concrete and structural steel. The contractors' offices have been established on the site allowing close supervision and management of activities.

The pre-existing plant infrastructure from the 1940's has been demolished and the haul road from the mining area to the mine waste facility has been completed.

The first concrete pour for the Project's processing plant took place in May 2014, and civil works are well underway. Civil completion in areas across the plant will start in early August 2014 to allow the progressive commencement of structural erection and mechanical installation. Approximately 60% of the plant equipment has been delivered to site, allowing immediate installation as the foundations or supporting steelwork becomes available.

Wolf has implemented a comprehensive environmental monitoring program and an extensive tree-planting program has commenced at the Hemerdon site with over 40,000 trees to be planted before operations start in mid-2015.

Construction of the Project's mine waste facility has commenced. This is one of the key components of the Project, designed to accommodate the waste from both the mine and the processing plant.

Development of the open pit has commenced with the excavating of waste for use in the construction of the mine waste facility. There is no overburden removal required to access the orebody, as it is exposed at surface from previous operations.

Total development expenditure for the June 2014 quarter was A$24.9 million. The majority of the expenditure relates to the construction claims by the EPC contractor, which is predominantly based on milestones for completion of work packages and delivery of equipment to site. As noted above, with concrete works well underway and more equipment arriving on site, the development expenditure for the September 2014 quarter is expected to significantly increase.

Commenting on the progress of construction, Wolf Managing Director, Russell Clark said:

"We are delighted with the level of activity and progress achieved to date at the Hemerdon project site. The Company's project management team and our EPC contractor, GR Engineering, are working extremely well together and construction remains on schedule for the project to be completed on time and on budget in the third quarter of 2015. The next key steps will be completion of the structural concrete at the processing plant and commencement of the erection of structural steel and the buildings, and we look forward to reporting further updates on construction progress in due course."

The company's web site has time lapse photography showing both the processing plant site and mine site which can be seen at:

http://www.wolfminerals.com.au/hemerdon-tungsten-and-tin-project/live-stream :

Completion of A$182.7 million Fundraise and Share Purchase Plan

In May 2014 the Company reported the finalisation of a A$182.7 million (£99.2 million) Fundraise and Share Purchase Plan ("SPP").

The completion of the Fundraise and SPP enables Wolf to complete the construction and fund the Project through to positive cash flows.

In total, 608,938,956 shares were issued under the Fundraise and SPP, which raised total proceeds of A$182.7 million.

Specifically, the funds raised have been used by the Company to:

· Repay the existing US$75 million Bridge Finance Facility provided by Resource Capital Fund V L.P. ("RCF");

and will be used by the Company to:

· Fund the capital expenditure on the Project required to complete construction and make the project production ready;

· Provide funds to service bonding obligations, over-run facilities, debt service reserve account and producer shortfall guarantees; and

· Provide ongoing working capital.

Following the Fundraise, Wolf was able to take advantage of a strengthening Australian dollar to provide a saving of A$5 million in funding the Project when compared to budget. This combined with savings realised in the fundraising has resulted in improved cash balances available to Wolf.

Commenting on the success of the Fundraise and SPP, Wolf Managing Director, Russell Clark said:

"We are very pleased with the investor response and particularly so with the fact that the Company now has the funding needed to construct the project and bring it into production. The Board would like to thank all those shareholders that participated in the Fundraise and SPP and look forward to their continuing support. With the funding now secured we will concentrate our efforts on bringing the project in on time and on budget."

New Nominated Adviser and Broker Appointed

In June 2014 the Company announced the appointment of Numis Securities Limited ("Numis") as its new Nominated Adviser and Broker for its AIM listing, with immediate effect. Numis replaced Wolf's previous AIM Adviser and Broker, Investec.

Numis is one of the UK's leading independent institutional stockbrokers and corporate advisors, and provides a full range of services to client companies, including; research, sales, trading and corporate broking/finance.  

Mining Tenements

As at 30 June 2014, the Company has an interest in the following projects:

All tenements are held by Wolf Minerals (UK) Limited, a wholly owned subsidiary of the Company. No farm-in or farm-out agreements are applicable. No mining or exploration tenements were acquired or disposed of during the quarter.

Planned Upcoming Activities

In the September 2014 quarter, Wolf will continue to progress its operations at Hemerdon, with an ongoing focus on the Project's construction. Details of proposed activities include:

· Completing drilling of diamond drill holes to provide geotechnical information required to review pit slope angles with the intention to steepen slopes and increase ore reserves.

· Implementing the first draw down of senior debt to fund construction activities.

· Completing structural concrete foundations.

· Commencing structural steel erection, and mechanical equipment installation

· Progressing the construction of mine waste facility.

· Continuing recruitment of operations personnel.

Promotion and Marketing

The Company's latest corporate video, produced in July 2014, provides an update on the Hemerdon Project and is available to view on the home page of the Wolf company website, at www.wolfminerals.com.au.

The Company's latest Investor Presentation is available, via the following link:

http://www.wolfminerals.com.au/investor-relations/asx-announcements/presentations

The latest media interview with Wolf Managing Director, Russell Clark, is available via the following link:

http://www.wolfminerals.com.au/investor-relations/video-coverage/proactive-investors

ENDS

Russell Clark

Managing Director

Email: managingdirector@wolfminerals.com.au

Competent Persons Statement

The information in the report to which this statement is attached that relates to Exploration Results and Mineral Resources is based on information compiled by Phil Jankowski, who is a Member of the Australasian Institute of Mining and Metallurgy. Phil Jankowski is a full-time employee of SRK Consulting (Australasia) Pty Ltd ("SRK"), and 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'. Phil Jankowski consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

The Ore Reserve estimate is based on work completed by Mr Quinton de Klerk, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr de Klerk is a full time employee of Cube Consulting and has sufficient experience which is relevant 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'. Mr de Klerk consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

About Wolf Minerals

Wolf Minerals is a dual listed (ASX: WLF, AIM: WLFE) specialty metals company. With global demand for tungsten rising and future global production expected to be constrained, Wolf Minerals is developing the third largest global tungsten resource at its Hemerdon Project, located in the South West of England. The Company has strong cornerstone investors and project finance and environmental permitting in place. Wolf has also secured all major contracts for the project, with GR Engineering appointed the EPC contractor and CA Blackwell being awarded the Mining Services contract. Production is expected to commence in 2015.