Thor Announces Remaining In Pit Drill Results At Segilola, Nigeria And Exercise Of Options

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES

Thor Explorations Ltd. (TSX VENTURE: THX) (“Thor” or the “Company”) is pleased to announce a final set of encouraging drill results from its in-pit and extensional diamond core drilling program at its Segilola Gold Project in Nigeria, which is scheduled to pour first gold in Q2 2021. The diamond core drilling program was designed to target and de-risk the lower portions of the in-pit resource by upgrading those portions currently classified as Inferred Resources in the Segilola Definitive Feasibility Study.

Significant intersections include:

• Drillhole SGD211: 32.5m (17m true width) grading at 3.2g/tAu
  including 16m at 2.6g/tAu and 4.3m at 14.5g/tAu
• Drillhole SGD212: 47.5m (20m true width) grading at 2.2g/tAu
  including 18m at 4.0g/tAu and 2.4m at 7.5g/tAu

Table 1: Significant results (0.5g/tAu lower cut off)

Drilling Results

Hole SGD211 confirmed the continuity of mineralisation near the deepest part of the DFS design pit with grades that are consistent with those previously estimated in that portion of the resource. In addition, the hole confirmed both strike and downdip continuity of a higher grade footwall zone that averaged 14.4g/tAu over a true width of 2.8m. This footwall zone was noted in an historic up-dip drill-hole which returned 2.75m (1.5m true width) at 15.4g/tAu (Figure 1).

Figure 1: SGD211 cross section

Figure 2: SGD212 cross section

Hole SGD212 is located 170m south from SGD211 and was also targeted to intersect the mineralisation both near and below the base of the DFS design pit. The main lode package (mineralised lode and internal dilution) was intersected over a true width of 20m at a grade of 2.0g/tAu.

Mineralisation has also been confirmed to a depth of at least 22m below the design pit. The package included two higher grade zones of 6.8m true width grading 4.0g/tAu and the southern continuation of the higher-grade footwall zone which returned 1.1m true grading 7.5g/tAu. This footwall zone was also intersected in an historic up-dip drillhole which returned 2. 5m (1.2m true) at 37g/tAu (Figure 2).

The complete list of drill intersections received to date for the diamond drilling completed in 2020 is tabled in Appendix 1. Fire assays were carried out by MSA Laboratories, Vancouver on half-core samples.

Implications

The Company believes that the completed in-pit drilling programme will result in a larger open pit resource with a higher percentage of Indicated Resources. An updated resource estimate is currently targeted for early February 2021.

The results from these holes also strongly indicate that the current resource may be expanded below the current DFS pit design. In the vicinity of SGD212, mineralisation is confirmed to a depth of at least an additional 22m below the design pit.

There is potential to further increase the resource with future drill-targeting of the hanging-wall and footwall lodes and to explore the underground potential.

Thor management believes that the additional data collected will have a potentially significant positive impact on the project economics.

Segun Lawson, President & CEO, stated: “The continuation of positive drill results not only provides adequate de-risking of a key operational aspect i.e., continuity of mineralisation near the base of the design pit, but, more significantly, shows continuity outside the current reserve limits. We are aiming to update the Segilola resource statement in early Q1 2021, prior to mining. We believe that we have sufficient information through this drilling to materially increase the indicated resource which should, ultimately, have a positive impact on the recoverable ounces. ”

Definitive Feasibility Study Resource

The currently announced Segilola open pit mineral resource comprises 441,000 ounces Au at 4.5g/tAu indicated and 73,000 ounces at 6.8g/tAu inferred. Based on a probable reserve of 405,000 ounces Au at 4.20g/tAu, the current project open pit DFS shows a post-tax NPV5% US$138m, a 50% IRR and a payback in under 1.4 years. These figures are based on the data as 1 December 2018 and a gold price of US$1,300.

With the current reserve, at a US$1,600 gold price, the Segilola Project shows a post-tax NPV5% pf US$238.1m and at a US$1,800 gold price shows a post-tax NPV5% of US$305m.

Following the completion of the updated reserve statement, the Company’s management expect the post-tax NPV to be increased materially.

Qualified Person

The above information has been prepared under the supervision of Alfred Gillman (Fellow AusIMM, CP), who is designated as a “qualified person” under National Instrument 43-101 and has reviewed and approves the content of this news release. He has also reviewed QA/QC, sampling, analytical and test data underlying the information.

Exercise of options

The Company also announces that the Chief Financial Officer of the Company has exercised 210,000 options at $0.20 each. Following the option, exercise the Company now has 621,405,975 Common Shares on issue. The Common Shares issued pursuant to the exercise of options will be subject to a four month and one day holding period expiring on April 11, 2021.

About Thor

Thor Explorations Ltd. is a Canadian mineral exploration company engaged in the acquisition, exploration and development of mineral properties located in Nigeria, Senegal and Burkina Faso. Thor holds a 100% interest in the Segilola Gold Project located in Osun State of Nigeria and a 70% interest in the Douta Gold Project located in south-eastern Senegal. Thor also holds a 49% interest in the Bongui and Legue gold permits located in Houndé greenstone belt, south west Burkina Faso. Thor trades on the TSX Venture Exchange under the symbol “THX”.

THOR EXPLORATIONS LTD.
Segun Lawson
President & CEO

For further information please contact:

Thor Explorations Ltd
Email: moc.lpxeroht@ofni

Fig House Communications (Investor Relations)
Tel: +1 416 822 6483
Email: moc.lpxeroht@snoitaler.rotsevni

Blytheweigh
Megan Ray / Rachael Brooks
Tel: +44 207 138 3203

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release does not constitute an offer to purchase securities. The securities to be offered in the offering have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to, or for the benefit or account of, a U.S. person, except pursuant to an available exemption from such registration requirements.

Cautionary Note Regarding Forward-Looking Statements

Except for the statements of historical fact contained herein, the information presented constitutes “forward looking statements” within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions that could cause the actual results of the Company to differ materially from the forward-looking statements. Such forward-looking statements, including but not limited to, the Company’s ability to fully finance the Project, to bring the Project into operation or to produce gold from the Project, and the use of the proceeds. The words “may”, “could”, “should”, “would”, “suspect”, “outlook”, “believe”, “anticipate”, “estimate”, “expect”, “intend”, “plan”, “target” and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company’s expectations as of the date of this news release and accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date.While the Company may elect to, it does not undertake to update this information at any particular time.

Appendix 1: Segilola Diamond Drilling Results 2020

Drillhole Location Map