Wolf Minerals Regulatory News (WLFE)

Wolf Minerals Limited

(ASX: WLF, AIM: WLFE) ("Wolf" or "the Company")

Quarterly Activities Report

For the period ending 31st March 2013

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 March 2013.

During the quarter, the Company continued to make strong progress on the development of the Hemerdon Project.

The Company is in the final stages of closing the detailed finance documents for the senior loan facilities announced and also, as part of this process, is completing the details of the binding offtake contract, which we expect to complete in the current quarter.

Highlights from the March quarter include:

ü Conditional £75 million EPC Contract for Hemerdon Project awarded

ü Land acquisition process commenced and is ongoing

ü Hemerdon Mining Service Contractors shortlisted 

ü Archaeological work at Hemerdon Project site continues

ü Senior management personnel appointed

Finance and offtake documents being finalised

The Company is in the final stages of completing the detailed finance documents for the senior loan facilities and also, as part of this process, is completing the details of the binding offtake contract, which it expects to complete in the current quarter.

The continuing support of ING, Unicredit and CAT Financial, 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.

Provision of the £75 million (~A$112.5 million*) senior debt facilities is subject to completion of the project finance documentation and conditions precedent. Wolf is in the final stages of completing this process.

The financing structure foresees that a portion of the senior loan facilities will be 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 the prospective 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. Wolf is in the final stages of completing this process.

Conditional £75 million EPC Contract awarded for Hemerdon Project

In March the Company announced that it had awarded a £75 million (~A$112.5 million*) Engineer Procure Construct ("EPC") contract for the Hemerdon tungsten and tin project to GR Engineering Services Limited (ASX: GNG) ("GR Engineering") (see ASX announcement dated 6 March 2013).

The contract is a fixed price, fixed term contract for the design, construction and commissioning of a 3Mtpa tungsten and tin mineral processing plant plus associated infrastructure, and forms the key component of the Hemerdon project.

The formal commencement date for work under the contract will be advised to GR Engineering by Wolf upon satisfaction of the conditions precedent, which form part of the financing arrangements for the project. The Contract term is 24 months from the commencement date.

The EPC contract compares favourably with the Hemerdon Project's Definitive Feasibility Study ("DFS") estimate announced in May 2011 (see ASX announcement dated 16 May 2011), which outlined £77 million (~A$115.5 million) for the contract scope.

The assignment of the EPC Contract is another significant milestone in the development timeline for the Hemerdon Project.

About GR Engineering

GR Engineering Services Limited an engineering, consulting and contracting company specialising in fixed price engineering design and construction services to the resources and mineral processing industry. It was established in Perth, Western Australia, in 2006, and has grown rapidly through the completion of design and construction projects for a diverse range of mining sector clients. GR Engineering has also undertaken feasibility studies for projects in over 20 countries, and directly employs around 255 people in offices in Perth, Kalgoorlie and Brisbane in addition to its direct construction workforce and subcontractors.

Land acquisition process ongoing

During the quarter Wolf commenced the acquisition of properties in and around the Hemerdon Project area. The Company has negotiated 'options to purchase' with many of the property owners, which will allow this process to move forward quickly.

The Company advises that the property acquisition process is ongoing and that it is working with the landowners to conclude the acquisitions.

Hemerdon Mining Contract shortlisted 

Following the award of the project's EPC Contract during the quarter, Wolf also advises that it has shortlisted a number of groups for the Mining Contract for Hemerdon. The award of the Mining Contract will be another major project milestone to be completed.

The Company is currently in the final stages of reviewing the tenders received and hope to be in a position to announce the contract award shortly.

Archaeological work at Hemerdon Project site

Archaeological work at the Hemerdon site continued during the quarter and remains ongoing. Work is being carried out in line with a pre-approved plan agreed with the Devon County Council and English Heritage, the English government's statutory body responsible for the historic environment.

The archaeological work programme has been designed to so that clearance can be given for operational areas ahead of development. No material issues have been uncovered to date and progress is going to schedule.

Senior management personnel appointed

Wolf has continued to add to its senior management team. During the March quarter the Company appointed an Environmental Manager for the Hemerdon Project and it will further strengthen its management team as the project is developed. In the near term, the Company is looking to appoint a Mine Manager for the project. Other management and requisite personnel appointments will be made in due course to meet the development and construction requirements of the project.

Planned upcoming activities

In the June 2013 quarter, Wolf will continue to progress its operations at the Hemerdon project.

Proposed activities are expected to include;

§ Completion of documentation for the £75 million in Senior Debt facilities (~A$112.5 million).

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

§ Ongoing acquisition of requisite properties in and around the Hemerdon project area.

§ Commence detailed design and procurement of the plant and infrastructure.

§ Complete the conditions precedent to enable the drawdown of the RCF Bridge Facility.

The milestones listed above are the key elements enabling access to the project site and the commencement of site works for the processing plant and infrastructure.

For further details, please contact:

About Wolf Minerals

Wolf Minerals 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.