Mr. Segun Lawson reports

THOR EXPLORATIONS ANNOUNCES FINANCIAL AND OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDING JUNE 30, 2023

Thor Explorations Ltd. has provided an operational and financial review for its Segilola gold mine, located in Nigeria, and for the company's mineral exploration properties located in Nigeria, Senegal and Burkina Faso, for three (Q2 2023) and six months (H1 2023) to June 30, 2023.

The company's consolidated condensed interim financial statements together with the notes related thereto, as well as the management's discussion and analysis (MD&A) for the three and six months ended June 30, 2023, are available on Thor Explorations' website.

All figures are in United States dollars unless otherwise stated.

Operational highlights for Q2 2023 and H1 2023

Production:

• Gold production for the period totalled 23,078 ounces (oz) (H1 2023: 43,707 oz);
• All main operating units of the process plant continue to perform better than expected, with the plant operating above nameplate capacity:
  • Several improvement projects at the process plant are being undertaken through the remainder of 2023.
• Three loss-time injuries (LTIs) occurred in H1 2023, which triggered an increase in training and workplace inspections to improve working conditions.

Exploration:

• The company has prioritized exploration within a 25-kilometre radius of Segilola with the key objective being to extend the life of mine;
• Four main advanced exploration targets that have been defined are the Kola prospect, Igila and Aye-Ile Western prospects, and Ijarigbe;
• The Kola prospect is located 23 km south of Segilola and is a new high-grade greenfield exploration discovery:
  • Reverse circulation drilling (RC) was carried out at a low-level stream sediment zone and showed initial positive results, which included seven metres grading at 25.98 grams per tonne (g/t) gold in the near-surface weathered horizon and four m at 30.17 g/t gold in the primary horizon;
  • Exploration testing of the general area is continuing and drilling activities will continue through the remainder of the year.
• The Igila prospect is located 15 km west of Segilola:
  • Exploration activities are continuing, and focused on delineating additional strike length and identifying additional lodes.
• The Aye-Ile prospect is located 1.2 km southeast from Igila:
  • Drill testing has focused on the anomalous auger geochemistry located a northeast-dipping vein system that is developed on the same structural orientation as Igila.
• In Senegal, exploration activities at the Douta project have progressed throughout Q2 2023.

Thor lithium -- Newstar Minerals Ltd.:

• Thor, through its fully owned subsidiary, Newstar Minerals, acquired a significant tenure in southwest Nigeria that covers both known lithium-bearing pegmatite deposits, and a large, unexplored, prospective, pegmatite-rich belt;
• An initial drilling program is being undertaken on one of the company's prospects located in the West Oyo project area to confirm and delineate lithium-bearing mineralization, such as spodumene and lepidolite at depth;
• Postperiod, the company announced its initial results, with key highlights of:
  • 11 m at 2.61 per cent lithium oxide (Li2O) from 15 m;
  • Nine m at 2.42 per cent Li2O from 35 m;
  • 11 m at 1.53 per cent Li2O from 14 m, including nine m at 1.70 per cent Li2O from 15 m;
  • Spodumene is confirmed as the main lithium-bearing mineral, with minor lepidolite and shallow mineralization.

Financial highlights of the period and H1 2023:

• Q2 2023 revenue of $41.3-million (Q2 2022: $41.3-million) and H1 2023 of $81.7-million (H1 2022: $66.2-million);
• Q2 2023 operating cost of $942 per ounce sold (Q2 2022: $983 per oz) and an all-in sustaining cost (AISC) of $1,230 per oz sold (Q2 2022: $1,236 per oz);
• Q2 2023 EBITDA (earnings before interest, taxes, depreciation and amortization) of $19-million (Q2 2022: $17.7-million) and H1 2023 of $35.1-million (H1 2022: $31.1-million);
• Q2 2023 net profit of $7.9-million (Q2 2022: $6.7-million) and H1 2023 of $12.2-million (H1 2022: $10.2-million);
• As of June, 2023, the company had cash of $11.1-million (Q1 2023: $4.5-million);
• Q2 2023 net debt of $16.8-million (Q1 2023: $24.9-million).

Environment, social and governance:

• The Segilola HSE (health, safety and environment) team commissioned a team of standby emergency responders in Q2 2023, with 28 personnel specifically trained to respond to emergency-related medical and operational situations at the SROL site;
• The company progressed its livelihood restoration programs for the local communities;
• Vegetable farms were completed in Q1 2023, and produced their first crops and improved tomato species in Q2 2023, with commercial offtakers purchasing the produce;
• Fish farms in the local community neared completion in Q2 2023, with farming to commence in Q3 2023;
• Improved cocoa species seedlings were issued to the local community in Q2 2023, and training provided to the farmers to improve yields and commercial returns;
• In Senegal, community projects undertaken included upgrading a local school's facilities block, clearing land at a local cemetery and providing a generator for the local police station.

Outlook:

• Segilola production for the full year expected to be 85,000 oz with AISC expectations maintained at $1,150 to $1,350 per oz:
  • Q3 2023 production is expected to be below original expectations at the beginning of the financial year. However, Q4 gold production forecast remains in line with original expectations, with potential upside as mining conditions continue to improve with the west wall pushback nearing completion.
• Continue to advance exploration programs across the portfolio, including:
  • Continuation of stepout drilling at Douta gold project in Senegal;
  • Continuation of drilling at Segilola gold regional targets;
  • Continuation of drilling at L06 lithium prospect in Nigeria.
• Completion of the Douta preliminary feasibility study (PFS) in Q4 2023.

Segun Lawson, president and chief executive officer, stated:

"The second quarter of 2023 has seen good developments across Thor's project portfolio. Operations are performing well, with the processing plant still operating above nameplate design. The company posted strong revenues for H1 of $81-million, with an EBITDA of $35.1-million and a net profit of $12-million for the same period.

"The company expects to achieve its total material mined forecast for H2, however grade control drilling for Q3 indicates a lower-than-forecast recovered gold production for the period. While the Q4 gold production forecast remains in line with our original target, with potential upside as mining conditions continue to improve as the west wall pushback nears completion, the company considers it prudent to update guidance for 2023 to 85,000 oz of recovered gold -- the lower end of the previously announced range for the full financial year.

"As we look to extend the life of mine at Segilola, Thor has located several exploration targets within close proximity to the project. These exploration targets are encouraging so far -- have demonstrated positive results from initial exploration drilling activities. We plan to follow up with further drilling activities in Q3 and Q4 2023. At Douta, Thor is making great progress towards completing the PFS, which is scheduled to be completed in Q4 this year.

"With our strategy to identify high-value resource opportunities, Thor acquired a significant tenure in southwest Nigeria, which is known for lithium-bearing pegmatite deposits. An initial drilling program is being undertaken on the West Oyo project area, with the objective to confirm and delineate lithium-bearing mineralization. I am pleased to confirm that, postperiod, the program confirmed spodumene as the main lithium-bearing mineral, together with minor lepidolite. We will continue to explore the area and believe this poses a great opportunity to increase shareholder value.

"We take the working conditions at our operations very seriously and, as such, Thor has increased training and workplace inspections to improve working conditions. The Segilola HSE team has also commissioned a team of standby emergency responders during the quarter, with 28 personnel specifically trained to respond to emergency-related medical and operational situations at the SROL site. The program comprised classroom and practical sessions on how to respond to first aid cases, administering basic life support to unconscious victims, and emergency response planning and activation processes to ensure there are fewer lost-time injuries.

"The company is in a good position to advance its projects in the next quarter, with further developments made at its exploration prospects as well as improvements in processing capabilities, which should result in improved production. I look forward to updating the shareholders on the developments made in the next quarter."

About Thor Explorations Ltd.

Thor Explorations 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-per-cent interest in the Segilola gold project located in Osun state, Nigeria, and has a 70-per-cent economic interest in the Douta gold project located in southeastern Senegal. Thor Explorations trades on the Alternative Investment Market and the TSX Venture Exchange under the symbol THX.

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