Thor Mining PLC has granted an exclusive mandate for financing of its 100%-owned Molyhil Tungsten-Molybdenum Project in the Northern Territory of Australia to Penfold Marketing Pty Ltd, a subsidiary of the specialist Australian-based metals marketing and investment company, Penfold Limited.

The finance mandate enables Penfold to identify and approach parties interested in financing the development and construction of the project as well as secure an off-take agreement for concentrates produced from the current life-of-mine reserve.

The signing of the mandate represents another important step towards development of the Molyhil Project during this year. Thor completed a Definitive Feasibility Study in December which concluded that the Molyhil Project is technically and economically viable with a rapid capital payback and strong financial returns. The study was based on a 300,000tpa mining and processing operation at Molyhil with an initial four-year mine life and an estimated capital cost of Aus$44.5 million.

Penfold Limited is a specialist metals marketing and business investment company based in Australia with offices in Adelaide and Shanghai.

Over the last decade, Penfold has developed many new China business opportunities sourced from its global customer base. Penfold has also established strong relationships with mining and metals operations located throughout Asia, including Japan, South Korea, Malaysia and India.

Under the mandate, Penfold must procure a binding term sheet for project financing for consideration by Thor's Board by 15 March, 2007.

Commenting on the signing of the mandate, Thor CEO, John Young, says: "We look forward to a fruitful association with Penfold in this important financing and development stage of the project. The conclusion of a suitable financing package and concentrate off-take agreement will lay the foundation for commencement of project development during the second quarter of 2007."