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Thor Explorations announces Segilola exploration update

Thor Explorations Ltd. is pleased to announce the initial drilling results from a reconnaissance drilling program that is currently underway at the Company’s Western Prospects that are located approximately 15km to the west of the Company’s wholly owned Segilola Gold Mine in Nigeria.

Thor, is a West African focussed minerals exploration, development and mining company. In Nigeria, the Company recently brought the Segilola Gold Mine into operation, producing 98,008 ounces of gold in 2022, its first calendar year of operation and is actively progressing gold exploration and assessing other high-value mineral resource opportunities in the country. The Company is also advancing the Douta Gold Project in Senegal which currently comprises an Inferred Resource of 730,000 ounces of gold, grading at 1.53 grammes / ton (g/t).

“I am thrilled to announce these drilling results that include an intersection grading 227g/tAu over a length of 2m. Within this intersection is a 1m length that carries ten ounces per ton. As you would expect, visible gold is prevalent throughout the core from this and the other significant intervals. These results are the culmination of systematic and persistent exploration work leading to the discovery of this high-grade mineralisation. Importantly, it demonstrates the significant exploration potential outside of the immediate Segilola mine precinct. Our strategy is to develop the Western Prospects together with other such opportunities located within a 25km radius of Segilola, to provide a pipeline of high-grade material that will extend the current 4 years of production at Segilola,” Segun Lawson, President & CEO.

The Western JV Prospects (the “Western Prospects”) are located about 15km directly west from the Segilola Gold Mine and cover mostly amphibolitic rocks that contrast with the more gneissic terrain that is developed at Segilola itself. The Western Prospects comprise several exploration permits that are held under exercised option agreements. The area is easily accessed through a series of sealed roads and gravel tracks.

To date, exploration has comprised grid-based soil geochemical sampling using a hand-held auger drill and rock chip sampling of exposures located mostly inside shallow, abandoned, artisanal diggings. In the central parts of the Western Prospects, the sampling has defined an area measuring approximately 3km along strike and 1km wide that is oriented in a north-westerly direction.

Initial results from the soil geochemistry program returned values of 6.50 g/tAu and 10g/tAu towards the south east portion of this area. Close-spaced soil sampling is continuing. These values are typically located towards the base of a 1-2m thickness transported laterite profile. Rock chip sampling returned some high-grade values including 65.1g/tAu in the central part of the area and several sampling in excess of 30g/tAu located towards the north west. Based on these results an initial drill testing program comprising both diamond core and reverse circulation (“RC”) drilling was initiated in January 2023.

The mineralised zones are confirmed prior to analysis by counts of visible gold in the core. Quarter core drill samples were analysed at the accredited Segilola Mine Laboratory using the 50g charge fire assay with atomic absorption (AA) finish. Repeat assays showed little variation from the original assays. Coarse rejects from the mine laboratory are also panned for further confirmation. Corresponding half core samples have been sent to MSA Laboratories for Metallic Screen Fire Assay and multi-element ICP analysis.

Drilling Results

The results from four drillholes have been received. These holes targeted the depth extensions of a mineralised quartz vein that had been exposed at surface and produced rock chip results of over 30g/tAu. Mineralisation is developed within a narrow, sub-vertical quartz vein that occupies a highly deformed zone that is characterised by weakly disseminated pyrite and intense silica-carbonate-sericite alteration.

Consistent high-grade intersections have been obtained to a vertical distance of 75m from surface. In hole SGD236, a parallel mineralised zone has been intersected about 10m to the east of the main vein. This suggests that additional mineral potential in the footwall and hangingwall rocks to the main vein. Ongoing drilling will test both the strike length and depth potential of this system.

Western Prospects – Joint Venture Arrangement

The Western Prospects are held under a joint venture agreement (“Thor-Esteedan JV”) between Thor’s wholly owned subsidiary Segilola Gold Limited (“SGL”) and a local mineral exploration company, Esteedan Limited (“Esteedan”) which was entered into in August 2021.

Thor currently has a 51% interest in the Thor-Esteedan JV. Under the terms of the Thor-Esteedan JV, Thor will increase its interest to 70% following a Decision to Mine Notice being by written by SGL to Esteedan at any time (the “Decision to Mine”).

After the Decision to Mine notice has been issued, both parties of the Thor-Esteedan JV enter into a contribute or dilute period where Esteedan can choose voluntarily not to contribute to any Additional Equity requirement and its shareholding shall dilute pro-rata to its equity contribution requirement above the Additional Equity, subject to Esteedan always retaining a minimum 15% shareholding in the Joint Venture.

Once mining operations commence, all profits will be shared on an open book basis until SGL recovers the equivalent of 1.1x its exploration and development expenditure on the Project at a ratio of: SGL: 1-A, Esteedan: A, where A = Esteedan’ shareholding multiply by 0.4.

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