Gold Producer Thor Explorations Unlocks Exploration Potential in Nigeria

• Thor Explorations (THX) is a West Africa-focused gold producer that completed its first year of gold production in Nigeria, producing 98,000 ounces, exceeding guidance.
• The company is actively exploring in Nigeria and sees substantial growth potential there.
• Thor has a second gold project in Senegal, where they announced a maiden resource in 2021. They are updating the resource and working towards a preliminary feasibility study by Q4.
• Thor's recent news release highlights successful exploration efforts, with promising drill core results, particularly in the Western prospects, situated 15 kilometers from the Segilola mine in Nigeria. This comes after a 24-month buildup of exploration efforts outside the mine pit.

About Thor Explorations

Thor Explorations is a West Africa focused gold producer that recently completed its first full year of production at its Segilola open pit mine in Nigeria in 2022, producing 98,000 ounces of gold. The company is focused on expanding production and exploration in Nigeria where significant growth potential exists. Thor also has a second project in Senegal, where the company announced a maiden resource in 2021 and is working towards a preliminary feasibility study in Q4 2022. With production underway and expansive exploration programs, Thor offers attractive upside potential for investors.

Interview with President & CEO, Segun Lawson

Strong 2021 Production Provides Cash Flow for Exploration

In its first full year of production in 2022, Thor Explorations hit the top end of its production guidance at 98,000 ounces of gold from its Segilola mine in Nigeria. This rapidly growing production has enabled strong cash flow generation, providing over $12 million that had previously been restricted due to stringent debt covenants.

After paying down half of its debt in the first year of operation, Thor was able to restructure its debt facility with the Africa Finance Corporation to remove restrictive covenants. This freed up significant capital that is now being allocated towards accelerated exploration programs across multiple high potential targets in Nigeria.

Exploration Targeting Resource Expansion and Life of Mine Extension

Thor's exploration strategy is focused on converting its pipeline of targets into resources and reserves to extend the mine life at Segilola beyond the current 5.5 years. Systematic exploration over the past five years has defined nine drill targets around Segilola that are now being prioritized and tested.

The first target, the Western prospects located 15km from Segilola, has delivered exciting early results including 2m grading 145 g/t Au. Thor now plans to conduct initial drill programs on the remaining eight targets throughout 2023 while continuing resource expansion drilling within the Segilola pit.

With its first mover advantage and large exploration budget funded through cash flow, Thor is rapidly unlocking the potential of Nigeria's vastly underexplored gold belts. The company expects significant resource additions over the coming year to extend Segilola's mine life.

Advancing Development of Satellite Deposit in Senegal

Thor's second West African project is located in Senegal where the company is advancing its Douta Gold Project. An updated mineral resource estimate is expected in the coming weeks which will upgrade a significant portion of the deposit from the inferred to indicated category by incorporating over 40,000m of new drilling.

This will feed into a third resource update in Q4 2023, steadily expanding and de-risking this project as Thor works towards a preliminary feasibility study later this year. The current resource spans 7km in length with thick intercepts up to 25m wide, indicating potential for a multi-million ounce deposit.

Risks & Opportunities

Risks

• Operating in Nigeria brings political/regulatory risks - it is a relatively new mining jurisdiction.
• Single asset concentration risk with one operating mine at Segilola.
• Execution risk in advancing exploration targets into resources/reserves.
• Dilution risk if additional capital needs to be raised to fund growth initiatives.

Opportunities

• First mover advantage in an underexplored mining jurisdiction in Nigeria.
• Significant exploration upside through well-funded programs targeting resource expansion.
• Production growth potential by converting exploration targets into satellite mining operations.
• Additional asset diversification as the Douta project in Senegal is advanced.
• Attractive re-rating potential as Thor evolves into a mid-tier producer through organic growth.
• Gold price upside provides operating leverage with forecast rising production profiles.

Conclusion

With cash flow from its first mine funding aggressive exploration and resource expansion programs across two West African countries, Thor Explorations offers investors an attractive exposure to significant near-term resource and production growth potential. As the company systematically unlocks value across its portfolio, 2023 is poised to be a transformational year for the company.