Thor Explorations Ltd. (TSX-V: THX) (AIM: THX) is pleased to provide an operational and financial review for its Segilola Gold mine, located in Nigeria, and for the Company’s mineral exploration properties located in Nigeria and Senegal for the three months to March 31, 2023.

The Company’s Unaudited Consolidated Financial Statements together with the notes related thereto, as well as the Management’s Discussion and Analysis for the three months ended March 31, 2023, are available on Thor Explorations’ website at https://thorexpl.com/investors/financials/.

All figures are in US dollars (“US$”) unless otherwise stated.

Operational Highlights

Segilola Production

• Gold production for the Period totaled 20,629 ounces (“oz”)
  • Mill feed grade was 2.95 grammes per tonne (“g/t”) gold with recovery at 94.1%
  • An increase in mining rates and the mining of higher grade ore zones is expected in Q2 2023
• The main operating units of the process plant continue to perform better than expected, with the plant operating above nameplate capacity

Segilola Near-Mine Exploration

• Identification of new high grade quartz vein system within 15 kilometers (“km”) of Segilola, with multiple high grade drillhole intercepts including 1 meter (“m”) at 310 g/t gold which equates to 10 oz of gold per tonne
  • Ongoing drilling will test both the strike length and depth potential of this system with additional drill results expected in Q2 2023

Regional exploration is continuing with ongoing drilling programs, stream sediment sampling programs and soil/auger programs with drilling results also expected in Q2 2023.

Douta

• Mineral Resource Estimate at Douta supported by a total of 64,567 meters of drilling updated to a global resource of approximately 1.78 million oz of gold, an increase of 144% from its maiden resource.
  • Updated Douta Resource encompasses the Makosa, Makosa Tail and the recently discovered Sambara prospects, all of which remain open along strike and down dip
• During the Period, workstreams designed to advance the project to the prefeasibility stage commenced including metallurgical and geotechnical drilling and also infill resource drilling. Drilling results from Douta are also expected in Q2 2023.

Financial Highlights

• 21,553 oz of gold sold with an average gold price of US$1,902 per oz
• Cash operating cost of US$899 per oz sold and all-in sustaining cost (“AISC”) of US$1,346 per oz sold
• Q1 2023 revenue of US$40.3 million (Q1 2022: US$24.9 million)
• Q1 2023 EBITDA of US$16.1 million (Q1 2022: US$13.4 million)
• Q1 2023 net profit of US$4.3 million (Q1 2022: US$3.5 million)
• Cash and cash equivalents of US$4.5 million as at 31 March 2023 (Q1 2022: US$6.3 million)
• Senior debt facility with Africa Finance Corporation amended and restated to facilitate the Company’s growth opportunities
  • Senior debt facility reduced to US$27.9 million as at 31 March 2023
• Repayment of all outstanding EPC invoices
• Net debt of US$25 million as at 31 March 2023

Environment, Social and Governance

• The full operation of 6 MW compressed natural gas generators was achieved in January 2023 so as to reduce GHG generated by diesel
  • In Q1 2023, the Company’s GHG emissions were 5,303 tons. For the equivalent period in 2022, the GHG emissions were 8,392 tons, a reduction of 3,089 tons representing a drop of 36% in GHG emissions and a significant step in the reduction of its carbon footprint
• Vegetable farm construction commenced in the Period, including the erection of a greenhouse. Construction of fish farming ponds and associated processing and administration structures also commenced using two contractors from the host communities

Outlook

• Production guidance of 85,000 to 95,000 oz for 2023 maintained, weighted towards the second half of the year, with an AISC guidance of US$1,150 to US$1,350 per oz
• Advance exploration programs across the portfolio, including near mine and underground projects at Segilola, extension and infill programs at Douta and the assessment of potential targets in Nigeria
• Completion of the Douta preliminary feasibility study in Q4 2023
• Applications for and acquisition of identified prospective exploration properties in Nigeria

Segun Lawson, President & CEO, stated:

“This was envisaged to be a difficult quarter with a lower mined grade, difficult mining conditions in the Segilola Pit west wall and a higher utilization of heavy equipment. The Company’s performance during the period demonstrates the amount of progress we have made at Segilola. The main operating units continue to perform better than expected and operate above capacity, so our production at the mine totaled 20,629 ounces. Our costs were at the higher end of our guidance, however we expect our costs to reduce materially in the second half of the year as we complete our mining in the current difficult areas. We have also had our first significant exploration success outside the Segilola Mine footprint, identifying a new high grade quartz vein system within 15 kilometres of mine and have already begun expanding exploration with multiple drillhole intercepts. We look forward to updating the market with drill results from this program and an additional two ongoing exploration drilling programs in Nigeria.

“We also continue to progress exploration at a fast pace at the Douta Project. Further to the significant growth in the MRE we are excited about the upcoming drilling results from the ongoing exploration program. We also look forward to completing the various PFS work streams in the coming months.

“As always, we have remained committed to our ESG goals, and this Period really reflects our ability to safeguard the environment and the local communities. The full operation of 6MW compressed natural gas generators was achieved in January and will greatly aid in our attempt to reduce GHG emissions. Elsewhere, we have been proudly progressing our livelihood restoration program and we look forward to offering further updates on all things ESG related throughout the year.

“When compared to the same operating period last year, we have significantly improved our numbers across the board, which is a testament to the hard work and efficiencies created in the Company.

“Our production guidance remains between 85,000 and 95,000 oz for 2023, one that is weighted towards the second half of the year, where we foresee less difficult operating conditions and correspondingly, a more efficient six months operationally.”

About Thor Explorations

Thor Explorations Ltd. is a mineral exploration company engaged in the acquisition, exploration, development and production of mineral properties located in Nigeria, Senegal and Burkina Faso. Thor Explorations holds a 100% interest in the Segilola Gold Project located in Osun State, Nigeria and has a 70% economic interest in the Douta Gold Project located in south-eastern Senegal.