Wolf Minerals Regulatory News (WLFE)

Wolf Minerals Limited

Quarterly Activities Report

For the period ending 30th June 2013

Specialty metals 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 30th June 2013.

The June 2013 quarter was a period of significant progress for Wolf Minerals, during which the Company achieved a number of major milestones in the development of the Hemerdon Project.

Highlights from the June quarter include:

ü £85 million Mining Services Contract awarded for Hemerdon Project, subsequent to quarter end.

ü ~A$213 million debt funding package for Hemerdon Project finalised.

ü First drawdown of US$82 million funding package from RCF completed.

ü £75 million EPC Contract for Hemerdon project commenced.

ü Binding Tungsten Off-take agreements completed.

ü Board changes announced.

ü Land acquisition process at Hemerdon site ongoing.

ü Tungsten price at long-term highs - APT ~$400/mtu.

NOTES:

§ All currency conversions based on prevailing exchange rates on 9 July 2013.

§ A Metric Tonne Unit (mtu) is equal to ten kilograms and is a standard weight measure of the tungsten industry.

~A$213 million debt funding package finalised

In May the Company finalised documentation for a funding package for the Hemerdon project totalling ~A$213 million (See ASX announcement, 10 May 2013).

The package comprises:

§ £75 million (~A$123 million) senior debt facilities from UniCredit Bank AG London Branch, ING Bank N.V. and Caterpillar Financial SARL, and

§ US$82 million (~A$90 million) funding from Resource Capital Fund V L.P. ("RCF"), as announced in December 2012

The finalisation of this funding package provided funds for Wolf to commence the Engineering, design and procurement elements of the EPC contract and purchase properties required for the Hemerdon project development. It will also provide additional working capital for Wolf during the construction phase.

The RCF funding will be drawn first, and Wolf announced on 12 June that it had received the first drawdown of funds from RCF (see further details in this Quarterly Activity Report).

£75 million senior debt facilities finalised

Documentation was signed with UniCredit Bank AG, ING Bank N.V. and Caterpillar Financial SARL for £75 million in senior debt finance facilities, incorporating a £70 million term loan facility and a £5 million Bond facility.

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 tungsten off-take partners; Wolfram Bergbau und Hütten AG and Global Tungsten & Powders Corp.

Together, these guarantees will cover approximately 50% of the senior loan facility. The senior debt facility has a term of 7.5 years and repayments are to be made quarterly, commencing approximately six months after first production. The provision of these senior debt facilities is subject to completion of conditions precedent customary for a financing of this nature including repayment of the RCF Bridge Finance Facility prior to first drawdown of the loan.

US$82 million RCF Funding Package

In December 2012, Wolf announced it has secured an US$82 million funding package from RCF (see ASX announcement, 7 December 2012).

The RCF funding package comprises:

§ A US$75 million (~A$82 million) 12 month secured Bridge Finance Facility; and

§ US$7M (~A$8 million) consideration for the purchase of a 2% Royalty by RCF on gross revenues from all metals and minerals produced from the Hemerdon project.

The Bridge Facility has a maturity date of 12 months from the date of satisfaction 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 over the Company's Hemerdon project and the Company is prevented from drawing down any further debt until it is repaid (in accordance with its terms).

First drawdown of US$82 million funding package from RCF

In June the Company announced that it had completed the first drawdown of funds from the US$82 million funding package provided by RCF (See ASX announcement, 12 June 2013).

Wolf advised that it had received the first drawdown of US$10 million from the Bridge Finance Facility, plus the US$7 million consideration for the 2% Royalty. The funds will be utilised to commence the EPC Contract, continue the purchase of properties (required under the terms of the Hemerdon project's planning permission) at the Hemerdon site and to support the owner's development costs and provide general working capital.

£75 million EPC Contract at Hemerdon commenced

The first drawdown of the RCF funding package facilitated the formal commencement of development at the Hemerdon project and allowed the project's £75 million EPC contract to commence.

The EPC 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 Contract, as previously announced (See ASX announcement, 6 March 2013), was awarded to GR Engineering Services Limited (ASX: GNG) ("GR Engineering") and is for a term of 24 months from the commencement date.

The EPC Contract also compares very well with the project's DFS estimate, which outlined £77 million (~A$126 million) for the contract scope.

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.

Binding Tungsten Off-take agreements completed

In addition to the finalisation of documentation on Hemerdon project funding, in May, Wolf also reported that it had executed binding tungsten off-take agreements with Wolfram Bergbau und Hütten AG, Austria, and Global Tungsten & Powders Corp., Pennsylvania, USA (See ASX announcement, 10 May 2013).

Wolf was delighted to complete binding agreements with its off-take partners, which represented another major milestone in the project's pathway to production.

Under the off-take agreements the Company will supply 80% of the Hemerdon project's expected average, annual tungsten concentrate output (as outlined in the project's DFS) for a minimum period of five years, extendable under mutual consent.

Wolf will supply wolframite concentrates grading 65% tungsten trioxide. Pricing for concentrates will be calculated based on the European Ammonium Para-Tungstate (APT) price, published by Metal Bulletin. A discount on commercial terms will be applied to the prevailing European APT price, to take into account treatment charges and administration.

The Hemerdon mine is expected to produce an average of 345,000 metric tonne units (mtu's) of tungsten trioxide in concentrates per annum and approximately 450 tonnes of tin in concentrates per annum.

£85 million Mining Services Contract awarded for Hemerdon Project

Subsequent to the quarter (see ASX announcement, 2 July 2013), Wolf announced that it had achieved another major milestone with the award of an £85 million (A$139 million) Mining Services contract for the Hemerdon tungsten and tin project.

The Contract is made up of two parts:

§ Phase 1; Mining pre-strip and Mine development, and

§ Phase 2; Mine production.

The Contract term for Phase 1 is 11 months from the commencement date. Phase 2 has a five year term from completion of Phase 1. Wolf will advise of the contract's formal commencement date, which is currently expected to be March 2014 (dependent on progress of the project schedule).

Wolf tendered the Contract in the UK and internationally and received 11 quality bids, which were evaluated on the basis of quality and price. The contract was awarded to CA Blackwell (Contracts) Limited ("Blackwell") on this basis. Blackwell's contract pricing confirms the strength of the project's base case financial model and compares very well with Wolf's Definitive Feasibility Study (DFS) estimate of £85.5 million (A$140 million), announced in May 2011.

About CA Blackwell (Contracts) Limited

CA Blackwell (Contracts) is part of the Blackwell group, which was established in 1956. It specialises in plant and engineering, civil engineering, earthworks, remediation, renewable energy and water and coastal, and employs around 450 people throughout the UK. Blackwell undertakes multi-disciplined construction projects and encompasses the entire project delivery chain from concept development, through design, procurement, construction, commissioning and maintenance.

Property acquisitions at Hemerdon Project site

Under the terms of the Company's planning permission for the Hemerdon project, it is required to purchase a number of properties in and around the Hemerdon site necessary to develop the project. To date, Wolf has purchased a number of requisite properties and negotiated 'options to purchase' with the majority of remaining landowners. Wolf remains confident of completing the outstanding purchases in the near future.

Having receiving first funds from the RCF bridge facility Wolf exercised all of the 'options to purchase' previously negotiated with the landowners on the site and will finalise purchase agreements with the remainder.

Tungsten price at Long term highs

The tungsten price is currently at long-term highs. Its standard unit of measurement, Ammonium Para-Tungstate (APT), is trading close to US$400 per mtu for the first time since August 2012 and has risen nearly $100 per mtu since December 2012.

The strong tungsten price is another major positive factor for Wolf as it moves in to the development phase of the Hemerdon Project, and a continuing, strong APT price will make the project's base-case financial model even more robust.

The Directors believe that the outlook for tungsten is positive. Tungsten is classified as one of 14 critical minerals by the EU and is an essential component in the production of hardened metals. Global tungsten demand is forecast to grow at 6-7% per annum, from 81,084t tungsten trioxide (W03) in 2010 to 111,602t WO3 in 2015, (Roskill report April 11) and the Directors expect that many new sources of supply will be constrained due to the difficult global financial conditions. As a result Wolf expects to benefit from a potential supply shortfall as it brings Hemerdon into production in 2015.

Changes to Wolf board of directors

During the quarter, the Company announced a number of changes to its board.

Mr Michael Wolley was appointed to the board as a non-executive director (see ASX announcement, 11 June 2013). Mr Wolley is TTI (NZ) Limited's ("TTI") board nominee. TTI is one of Wolf's major shareholders and acquired a 19.9% interest in the Company via a placement of 39,410,000 shares at 27c per share last December (See ASX announcement, 21 December 2012), and as part of its strategic investment was entitled to nominate a Director to join the Wolf board.

At the same time, Mr Jonathan Downes, a founder of the Company, stepped down from the board to focus on his other commitments.

Mr Wolley is a highly experienced mining executive who has First Class Honours in Chemical and Materials Engineering from the University of Auckland, and is the former chief operating officer of rare earths developer Lynas Corporation. He has also held senior executive roles with Mobil Australia and BlueScope Steel China. Mr Wolley is vice-president, minerals for TTI's parent company, Todd Corporation, which is a major, private New Zealand-based company with a diverse range of business interests.

Also during the quarter, another of Wolf's founding board members, Mr Adrian Byass, stepped down from the board (See ASX announcement 27 June 2013), to concentrate on his other business activities. The Board would like to extend its gratitude to Mr Downes and Mr Byass for the guidance and insight they provided over the past six and a half years.

Planned upcoming activities

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

§ Continuation of Archaeological work at the Hemerdon site. Outcomes of this program of work will be released in due course, as they become available.

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

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

§ Continuation of appointment process for requisite senior management and other personnel

ENDS

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.