Mr. Segun Lawson reports

THOR EXPLORATIONS ANNOUNCES AUDITED FINANCIAL AND OPERATING RESULTS FOR THE FULL YEAR AND THREE MONTHS ENDING DECEMBER 31, 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 the three months ending Dec. 31, 2023 (Q4 2023), and the audited financial results for the year ending Dec. 31, 2023 (FY 2023).

The company's consolidated audited financial statements, together with the notes related thereto, as well as the management's discussion and analysis (MD&A) for the year ending Dec. 31, 2023, are available on Thor Explorations' website.

All figures are in United States dollars unless otherwise stated.

FY 2023 financial highlights:

• 73,356 ounces (oz) of gold sold with an average realized price of $1,907 per oz;
• Cash operating cost of $1,006 per oz sold and all-in sustaining cost (AISC) of $1,313 per oz sold;
• FY 2023 revenue of $141.2-million (FY 2022: $165.2-million);
• FY 2023 EBITDA (earnings before interest, taxes, depreciation and amortization) of $55.3-million (FY 2022: $84.2-million -- restated);
• FY 2023 net profit of $10.8-million (FY 2022: $37.9-million -- restated);
• Cash and cash equivalents of $7.8-million (FY 2022: $6.7-million);
• Senior debt facility significantly reduced from $54-million to $22.6-million as at Dec. 31, 2023:
  • Payment of $8.2-million toward the outstanding senior debt facility paid in the postperiod.
• Net debt of $15.9-million (FY 2022: $31.6-million).

FY 2023 operational highlights:

• Segilola production:
  • Gold production for the year totalled 84,609 oz:
    • Gold recovered during the year includes approximately 11,210 oz of gold in circuit (GIC).
  • Successfully completed pushback of the Segilola western wall;
  • Successfully upgraded the process plant elution and electrowinning system.
• Segilola near-mine exploration:
  • Expansion of exploration tenure to a total area of 1,542 square kilometres. This tenure comprises 16 granted permits that are 100 per cent owned by Thor, together with nine granted permits held under option agreements with seven third parties;
  • In addition to near-mine exploration, activities on the ground have focused on these main areas: Western prospects (Igila and Aye-Ile) and Central prospects (Kajola).
• Western prospects:
  • The Western prospects are located approximately 15 kilometres directly west from the Segilola gold mine and comprise several exploration permits that are held under exercised option agreements;
  • Initial results from the soil geochemistry program returned values of 6.50 grams per tonne gold (g/t Au) and 10 g/t Au toward the southeast portion of this area. Rock chip sampling returned high-grade values, including 65.1 g/t Au in the central part of the area and several samples in excess of 30 g/t Au located toward the northwest;
  • Based on these results, an initial drill testing program comprising both diamond core and reverse circulation (RC) drilling was completed in 2023.
• Southern prospects:
  • The Southern prospects cover an area that is located to the south of the Segilola gold mine. Regional stream sediment sampling located an area of interest at what is now referred to as the Kajola target, located approximately 20 km from the Segilola mine;
  • Drill testing of this greenfield target intersected several zones of interest, including 11 metres grading 22 g/t Au;
  • Continuing exploration is focused on generating additional targets in the general area.
• Douta:
  • During the year, an updated mineral resource estimate (MRE) was announced. The 2023 MRE encompasses the Makosa, Makosa Tail and Sambara zones, which are collectively named the Douta resource:
    • An initial indicated mineral resource of 20.2 million tonnes (Mt) grading 1.3 g/t Au for 874,900 oz Au;
    • Inferred mineral resource of 24.1 Mt grading 1.2 g/t Au for 909,400 oz Au.
  • The Douta resource is supported by a total of 64,567 metres of drilling;
  • Work streams designed to advance the project to the prefeasibility stage (PFS) have commenced and are expected to be completed by H2 2024. This included a diamond drilling program that was designed to obtain sufficient core samples for comprehensive metallurgical test work and mineralogical studies.
• Lithium exploration:
  • Thor, through its wholly owned subsidiary Newstar Minerals Ltd., secured over 600 square kilometres of granted tenure in Nigeria that form Oyo state, Kwara state and Ekiti state lithium project areas;
  • The Oyo state lithium project comprises approximately 38 square km of exploration tenure that is located toward the westernmost border of Nigeria and within 200 km of the commercial capital of Lagos;
  • In the Oyo prospect, a program of RC drilling targeted an identified pegmatite trend that is developed within northerly trending mafic sequence that is surrounded by granitoid-gneiss terrain;
  • In the Ekiti prospect, nine RC holes were completed;
  • Significant intersections previously reported include 11 metres grading 1.53 per cent lithium oxide (Li2O), nine meters grading 2.42 per cent Li2O and 11 metres grading 2.61 per cent Li2O;
  • Following the drilling campaigns, follow-up soil sampling and mapping continued to generate anomalous targets which have been identified for drilling in Q2 2024.
• Environment, social and governance:
  • Completed significant community and livelihood restoration projects in the three host communities around the Segilola gold mine, including school refurbishment, a 33 kV (kilovolt) transformer installation, and the launch of commercial fish and vegetable farms, directly benefiting over 11,000 residents;
  • Enhanced local work force capacity and diversity, achieving a 98 per cent Nigerian staffing level, a 50-per-cent increase in local hires, and promoting gender diversity by integrating women into traditionally male roles;
  • Environmental standards compliance was maintained across air, dust, noise and water quality, with biodiversity improvements noted in annual surveys;
  • Successfully renewed two community development agreements, facilitating 26 impactful community projects, including educational scholarships and youth training programs;
  • Conducted a biodiversity survey for the Douta exploration licence area, identifying environmental sensitivities, and continued quarterly water quality monitoring to manage elevated chromium and cadmium levels;
  • Supported local community and economic development through initiatives such as a vegetable garden and academic excellence awards at local schools;
  • Baseline data collection is under way for the Douta gold project's economic assessment.
• Post FY 2023 highlights:
  • Segilola gold production of 19,589 oz during Q1 2024;
  • Successfully upgraded and commissioned three additional CIL (carbon-in-leach) tanks in the process plant with draw down of excess gold in circuit successfully commenced in March, 2024;
  • Additional near-Segilola-mine drilling targets delineated, with drilling having commenced in April, 2024;
  • The company acquired additional licences in Senegal, which included the contiguous Douta-West licence, and commenced exploration activities. Initial results have delineated anomalies which will be drilled in Q2 2024 as part of the company's Douta exploration plan;
  • Exploration on the company's lithium licences in Nigeria continued during Q1 2024 and was successful in generating a number of drill targets. The company will commence a 4,000-metre drilling program in May, 2024;
  • Payment of $8.2-million toward outstanding senior debt facility, leaving a balance of $15.2-million to be paid in 2024;
  • Cash balance (unaudited) as at March 31, 2024, of $3.1-million.
• Outlook:
  • Production guidance set at 95,000 oz to 100,000 oz for 2024, with an AISC guidance of $1,100 to $1,200 per oz;
  • Advance exploration programs across the portfolio, including near-mine and underground projects at Segilola, the regional Segilola exploration program, extension and infill programs at Douta, and the assessment of potential regional targets in Nigeria;
  • Continue to advance the Douta gold project toward PFS for publication in H2 2024.

Segun Lawson, president and chief executive officer, stated:

"The end of 2023 marks two calendar years of commercial gold production at our flagship asset, the Segilola gold mine. Thinking back to the original mine plan in the definitive feasibility study, we knew, as a management team, that the second year of production was going to be an operationally challenging year, requiring the push back of the western wall of the pit and mining of waste material in order to access the orebody efficiently in the subsequent years.

"Despite the operational challenges, we are pleased to have produced approximately 85,000 ounces of gold in 2023 versus the original mine plan projection of 72,000 ounces. This was achieved whilst carrying out certain plant upgrades which would also optimize gold production for the remainder of the Segilola mine life. In addition to this, we were able to deliver our operations in a safe and responsible manner, with an improved safety performance in 2023. We continue to prioritize safety and best practice standards, and aim to continuously improve.

"Personally, I am pleased we managed to achieve our operational objectives. We refreshed the leadership at the mine site with the appointment of a new general manager in October, 2023, and executed necessary upgrades to the process plant whilst ending the year having achieved an all-in sustaining cost for the Segilola gold mine of $1,313 per ounce.

"The company is now strongly positioned for repayment of its long-term debt during 2024, and growth, primarily coming from strong cash flow at Segilola, and also through exploration and the development of the Douta gold project in Senegal.

"We are also continuing to prioritize our environmental, social and governance standards, particularly as we are in a country where we must set an example as pioneers in the industry.

"Furthermore, in 2023, we began to capitalize on our first-mover advantage in Nigeria through the acquisition of over 600 square kilometres of lithium-bearing ground. We believe our first-mover advantage allows us to quickly and professionally assess value accretive opportunities for our shareholders. Having successfully carried out early stage exploration on our lithium portfolio, we are able to provide our shareholders with significant value optionality that can be funded by the company's existing cash flow and human resources in Nigeria.

"In 2024, the company's strategy will be focused on growth. The first priority is to extend the Segilola mine life where there is currently an underground resource of over 100,000 ounces that has not been incorporated into the existing mine plan. At the current prevailing high gold prices, we aim to assess our options in reoptimizing the Segilola pit to produce gold from this resource prior to transitioning into an underground mine. We also aim to carry out further exploration at depth aimed at increasing the existing underground resource, which has not been closed out.

"In Senegal, the Douta gold project continues to provide blue sky exploration upside potential. The Douta gold project is undergoing a PFS and, subsequent to the year, we acquired additional contiguous ground with potential to scale the Douta gold project.

"Our strategy in Senegal in 2024 is to focus on increasing the oxide component of the existing Douta resource in parallel with the PFS work streams. We will be carrying out drilling programs across various geochemical targets on both the Douta and Douta-West licences. The aim is to increase the oxide resource, where high recoveries are metallurgically straightforward, to a target of 500,000 ounces.

"We ended 2023 with our Segilola gold mine well positioned to produce approximately 100,000 ounces per year for the next three years. The company will also be deleveraged in 2024 and will continue to strengthen its balance sheet in the historically high-gold-price environment.

"Looking further ahead, our ambition to continue to grow through mine life extension at Segilola and exploration across our entire portfolio remains unchanged, and we will also be well positioned for future opportunities that may accelerate our growth into a more mature gold producer.

"I am proud of what we achieved in 2023, which is all the result of the hard work and commitment of our people. I am equally excited about the opportunities we have in front of us as we continue to build a uniquely positioned African-focused gold producer."

About Thor Explorations Ltd.

Thor 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-per-cent interest in the Segilola gold project located in Osun state of Nigeria. Mining and production commenced at Segilola in 2021. Thor holds a 70-per-cent interest in the Douta gold project located in southeastern Senegal. Thor trades on the TSX Venture Exchange under the symbol THX.

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